Tata Coffee highlights strong revenue growth for its Eight O'Clock Coffee brand as the Indian coffe and tea group posts positive first quarter revenues
The strong revenues of Eight O'Clock Coffee were highlighted as a standout performer for Tata | Photo credit: Tata Consumer Products
Instant coffee remains a strong contributor Tata Coffee’s revenues, which increased 24% during the company’s first quarter.
The Bangalore-based company, which operates retail packaged coffee brands Eight O'Clock Coffee, Tata Coffee Grand and Sonnets by Tata Coffee, reported revenues of Rs 6.7bn ($83.6m) for the quarter ended 30 June 2022, compared to Rs 5.4bn ($67.5m) for the same period in 2021.
Tata Coffee specifically highlighted the strong revenues of Eight O'Clock Coffee, which grew 15% to reach Rs 3.7bn ($46.5m), and its wider instant coffee businesses in both India and Vietnam as standout performers.
Tata Coffee currently operates two coffee plants in India, in Telangana and Tamil Nadu, as well as a third facility in Vietnam. It also manages 19 coffee plantations across 8,000 hectares in India.
"The performance of our instant coffee business continues to be robust. Tata Coffee's Vietnam operations continue to be robust with a healthy order pipeline. There is however continuing inflationary pressure on costs. Our subsidiary, Eight O'Clock Coffee has recorded improved performance during the quarter owing to higher sales and favourable product mix," said Chacko Thomas, CEO, Tata Coffee.
Founded in 1922, Tata Coffee is a subsidiary of Tata Consumer Products. It is Asia's largest integrated coffee company and India’s second largest exporter of instant coffee. The company also produces tea and pepper.
In March 2022 Tata Consumer Products announced a significant reorganisation of its coffee businesses in India and the UK. Tata Coffee’s coffee plantation business subsequently demerged into a new entity, TCPL Beverages & Foods Limited, while the remainder of its branded coffee business merged with Tata Consumer Products.
Tata Consumer Products licences Starbucks stores in India through its Tata Starbucks subsidiary, where it currently operates 270 outlets.