Starbucks has announced a venture partnership with Indian Tata Global Beverages to open their first store in India by August. The world’s second-fastest-growing major economy, after China seems to need premium-segment coffee chains.

Photo: John Culver, president, Starbucks China and Asia Pacific and Mr. R K Krishnakumar,
Vice Chairman, Tata Global Beverages

The outlets will be opened in Mumbai and New Delhi and have 50 locations within the first 12 months. The 50/50 joint venture, named TATA Starbucks Limited will be supplied with coffee roasted by Tata Coffee Limited. The coffee will also be exported to Starbucks Coffee Company worldwide for consumers to taste the high-quality Indian arabica. A premium tea product branded Tata Tazo will also be on offer at Indian Starbucks.

“The joint venture with Starbucks is in line with Tata Global Beverages’ strategy of growing through strategic alliances in addition to organic and inorganic growth,” stated Mr. R K Krishnakumar, Vice Chairman, Tata Global Beverages. “It opens up exciting business opportunities and new formats for Tata Global Beverages. Starbucks 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, leveraging the global in-home expertise of Tata Global Beverages and the global out-of-home expertise of Starbucks.”

The joint venture will operate cafés under the Quick Service Restaurant category. The companies have signed a separate agreement on coffee sourcing and roasting, which will help improving the profile of Indian-grown arabica coffees around the world. Starbucks, one of the most meaningful brands in UK, will also facilitate improving the quality of coffee in India through sustainable practices and advanced agronomy solutions.

Tata Coffee Limited has already been working to improve the lives of coffee growing communities in the State of Karnataka. Starbucks will work with Tata to support ‘Swastha,’ a school for children with special needs (in partnership with the Coorg Foundation).

Tata Coffee Limited and Starbucks also plan to work provide local farmers, technicians and agronomists with trainings for to improve their coffee-growing and milling skills.