The tea and coffee group, which operates more than 300 Starbucks stores in India, says increased out-of-home coffee consumption across the country is driving sales for its Starbucks joint venture
Tata Consumer Products has credited strong Tata Starbucks sales as driving its third quarter revenues.
The Indian coffee and tea group said revenue growth for Tata Starbucks reached 42% in the three months ended 31 December 2022, led by increased out-of-home coffee consumption across the country and its expanded Starbucks presence.
Tata Starbucks opened 11 new stores in the quarter to reach 311 across India, including its first Starbucks Reserve store in the country in Mumbai, which was converted from an existing store.
Tata Consumer Products, which reported 8% group revenue growth in the period to reach Rs 3,475 Crs ($423.5m), also highlighted strong packaged coffee sales, with revenue growth in the channel reaching 34% year-to-date.
The company credited growth to new product launches in India, including Tata Coffee café specials, which it said was helping to ‘upgrade the at-home coffee consumption experience’, and the performance of Eight O’ Clock packaged coffee internationally.
“We continued to maintain momentum on innovation with a number of new launches across our Beverages and Foods categories. Tata Starbucks has delivered yet another strong quarter with the addition of 47 stores across 12 cities so far this fiscal year,” said Sunil D’Souza, Managing Director & CEO, Tata Consumer Products.
Formed in 2012, Tata Starbucks is a joint venture between US coffee chain Starbucks and India's Tata Consumer Products. A major reorganisation was announced in March 2022, merging Tata Coffee’s branded coffee business with Tata Consumer Products to improve operational efficiencies and create ‘focused business verticals’. The reorganisation is still pending.
In January 2023, Tata Coffee, a unit of Tata Consumer Products, also highlighted its Eight O' Clock Coffee brand and instant coffee businesses as strong performers, despite a 45% fall in profits.
