A fresh cuppa: Tata-Starbucks set to brew Teavana in India
After introducing its iconic coffee, the world’s largest café chain Starbucks now wants to introduce speciality tea brand Teavana in India this year.business Updated: Jan 14, 2016 23:44 IST
After introducing its iconic coffee, the world’s largest café chain, Starbucks, now wants to introduce its speciality tea brand Teavana in India this year. US-based Starbucks had in 2012 acquired Teavana Holdings Inc to expand beyond its coffee roots.
Starbucks, which operates 23,000 stores in over 70 countries, entered India in 2012 through a joint venture with Tata Global Beverages. However, the country is already among the company’s fastest-growing markets.
“Tea is over a $100-billion category globally, larger than coffee. We hope to bring Teavana-branded beverages to our stores here in India in 2016 and at some point in Asia, we will begin to open Teavana stores,” said Howard Schultz, chairman and CEO of Starbucks. “You look at the number of people rising to the middle class with disposable income, you look at the opportunities here which are quite significant. Starbucks will have a major business in India, much larger than it is today in terms of the number of stores, which will rival many of the large markets we have around the world.”
Schultz feels over time Tata Starbucks should have a “significant” business in other channels of distribution like consumer-packaged goods and will also bring all of its resources and learning around the digital and mobile ecosystem that it has built in America. “Some of that will arrive this summer in our stores in India and that will be a game-changer.”
Those embracing e-commerce and mobile has bought in a “seismic shift” in consumer behaviour across the world, leading to downturn in traffic to high streets and malls, Schultz said.
Schultz’s visit comes at a time when the company is undergoing a leadership change. Avani Davda, CEO of Tata Starbucks, resigned last month and was replaced by Sumi Ghosh, an eight-year Starbucks veteran.
First Published: Jan 14, 2016 23:44 IST