Tata Consumer Products says normalised store operations in India have enabled the Seattle-based coffee chain to achieve strong revenue growth and increase its store count
A Starbucks store in Mumbai, India | Photo credit: via Shutterstock
Tata Starbucks has achieved surging quarterly revenues in India as trading regains momentum following the pandemic.
The joint venture between Indian conglomerate Tata and the Seattle-based coffee chain posted 238% revenue growth for the quarter ended 30 June 2022. Tata Starbucks, which is part of the Tata Consumer Products (TCP) group of food and beverage brands, said the growth was led by normalised store operations and fewer Covid-19 trading restrictions.
Starbucks opened seven new stores during the period and entered four new cities in India –Jalandhar, Anand, Nagpur, and Calicu – and now operates 274 stores across 30 cities.
Meanwhile, TCP also reported strong growth for its packaged coffee and tea brands, with the former category achieving 73% year-on-year revenue growth and a 43% increase in volumes.
Tata Consumer Products said total group revenues grew 11% to reach RS 33.3bn ($418.5m).
“We delivered double digit revenue growth and improved profitability for the company
despite a challenging macro environment and inflation impact in some of our
categories,” said Sunil D’Souza, Managing Director & CEO of Tata Consumer Products.
“Our transformation agenda continues to be on track. We have increased our reach
substantially across channels while strengthening our sales and distribution
infrastructure and our digital capabilities. We will continue to stay focused on driving
growth and balancing margins in our quest to becoming a leading FMCG company,” D’Souza added.
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.