The new 50:50 joint venture between Starbucks Coffee Company and Tata Global Beverages will be branded as: â€œStarbucks Coffee ‘A Tata Alliance’,â€ and to start with will have retail stores in New Delhi and Mumbai.
Moving beyond coffee, the companies have also agreed to jointly leverage assets and innovation to offer a premium tea product branded, Tata Tazo.
The venture, named as Tata Starbucks Ltd, will also work towards developing and improving the profile of Indian-grown Arabica coffees around the world through joint marketing efforts.
The alliance hopes to leverage the global in-home expertise of Tata Global Beverages and the global out-of-home expertise of Starbucks. According to R K Krishnakumar, Vice Chairman, Tata Global Beverages, the alliance is line with the company’s strategy of growing through inorganic growth. â€œStarbucks brings unique retail expertise as well as a shared sense of business values. We are excited about the opportunities the alliance presents to innovate in the retail space and bring new beverage experiences to more consumers in India,â€ he said.
Added John Culver, president, Starbucks China and Asia Pacific, â€œWe look forward to bringing the Starbucks Experience to customers in India by offering high quality Arabica coffee, handcrafted beverages, locally relevant food, and legendary service.â€
In a separate sourcing and roasting agreement between the two parents companies, Tata Coffee will roast coffee to supply Tata Starbucks, and to export to Starbucks Coffee Company.