About Tata Global Beverages

Tata Global Beverages focusses on branded natural beverages tea,

coffee and water. With a long history and experience in the beverages
market, and a heritage of innovation and development, the Company
has evolved from a predominantly domestic Indian tea farming entity
to a marketing and brand-focussed global organisation.
Tata Global Beverages is the 2nd largest player in branded tea in the
world. Our ambition is to expand our global footprint by entering new
markets and fresh channels with our brands. We have a strong portfolio
of brands, including Tata Tea, Tetley, Jemca, Vitax, Eight OClock
Coffee, Himalayan, Grand Coffee and Joekels. Around 300 million
servings of our products are consumed every day, bringing many
magical beverage moments to consumers across the world.
Over 60% of our consolidated revenue originates from markets outside
India and more than 90% of our turnover is from branded products. The
business has diversified and expanded significantly over the last
decade, with the Company now employing 3,000 plus people, and
having a significant brand presence in 40 countries worldwide.
Tata Global Beverages has grown through innovation, strategic
alliances and acquisitions, and organic growth.
Sustainability is at the heart of our plans for long-term success. We are
an active member of Ethical Tea Partnership (ETP). The ETP is
working with Rainforest Alliance to help estates achieve Rainforest
Alliance certification, and this will facilitate the launch of Tetley
products carrying the Rainforest Alliance Certified seal. In India,
Tata Global Beverages is one of the founding members of Trustea a
multi-stakeholder initiative led by the Tea Board of India to sustainably
transform the tea industry in India.
Vision
To be the most admired natural beverages company in the world by
making a big and lasting difference in tea, coffee and water.

Mission
We will focus on creating magical beverage moments for consumers,
and an eternity of sustainable goodness for our communities.
About Starbucks
Starbuck Corporation is an American coffee company and coffeehouse
chain. Starbucks was founded in Seattle, Washington in 1971. As of
November 2016, it operates 23,768 locations worldwide.
Starbucks is considered the main representative of "second wave
coffee", initially distinguishing itself from other coffee-serving venues
in the US by taste, quality, and customer experience while popularizing
darkly roasted coffee.
Starbucks first became profitable in Seattle in the early 1980s. Despite
an initial economic downturn with its expansion into the Midwest
and British Columbia in the late 1980s, the company experienced
revitalized prosperity with its entry into California in the early
1990s.The first Starbucks location outside North America opened
in Tokyo in 1996; overseas properties now constitute almost one-third
of its stores. The company opened an average of two new locations
daily between 1987 and 2007.
On December 1, 2016, Howard Schultz announced he would resign
as CEO effective in April 2017 and will be replaced by Kevin Johnson.
Johnson assumed the role of CEO on April 3, 2017.
Vision
To establish Starbucks as the premier purveyor of the finest coffee in
the world while maintaining our uncompromising principles while we
grow.
Mission
To inspire and nurture the human spirit one person, one cup and one
neighbourhood at a time
Type of Strategic Alliance --- Joint Venture

Starbucks Coffee Company and Tata Global Beverages Limited on 30th

January, 2012 announced a joint venture between the iconic
international coffee brand and the 2nd largest branded tea company in
the world. The 50/50 joint venture, named TATA Starbucks Limited,
will own and operate Starbucks cafs which will be branded as
Starbucks Coffee A Tata Alliance.
The retail stores were developed in cities across the country, beginning
with stores in Delhi and Mumbai in calendar 2012.
In a separate sourcing and roasting agreement between Starbucks
Coffee Company and Tata Coffee Limited, Tata Coffee Limited will
roast coffee to supply Tata Starbucks Limited, and to export to
Starbucks Coffee Company. This agreement paved the way for
consumers in India to enjoy the premium Starbucks Experience, while
further discovering the unique taste of high-quality Indian Arabica
coffee worldwide. TATA Starbucks Limited brought together two
companies with a rich heritage in and passion for coffee, tea and
innovative beverages. Together, the JV enabled an expanded range of
beverage offerings for Indian consumers. As an example, the
companies agreed to jointly leverage assets and innovation to offer a
premium tea product branded, Tata Tazo.
The joint venture with Starbucks is in line with Tata Global
Beverages strategy of growing through inorganic growth focusing on
strategic alliances in addition to organic growth, stated Mr. R K
Krishna Kumar, 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.
Were very pleased to have found the best partner for Starbucks in
Tata a company that shares so many of the same values for
conducting business in a way that earns the trust and respect of our
customers and partners (employees), said John Culver, president,
Starbucks China and Asia Pacific. We look forward to bringing the
Starbucks Experience to customers in India by offering high quality
Arabica coffee, handcrafted beverages, locally relevant food, and
legendary service.
The TATA Starbucks Limited joint venture operates cafs under the
Quick Service Restaurant category. This partnership enables the
introduction of the unique Starbucks Experience to Indian consumers.
Through a separate coffee sourcing and roasting agreement, Starbucks
and Tata Coffee Limited has worked toward developing and improving
the profile of Indian-grown Arabica coffees around the world by
elevating the stature of Indian coffee through joint marketing efforts,
as well as improving the quality of coffee through sustainable practices
and advanced agronomy solutions.

Why this Alliance Worked?

1. Tata as a cultural fit for Starbucks will help in building core

competencies of each other.

Starbucks and Tata share common values of responsible business ethics

and a commitment to community. Tata Coffee Limited has been
working to improve the lives of coffee growing communities in the
State of Karnataka. Through an initial financial commitment, Starbucks
is working with Tata to support 'Swastha', a school for children with
special needs (in partnership with the Coorg Foundation) and aim to
increase its capacity and outreach into the rural communities in the
coffee growing region of Karnataka. Tata Coffee Limited and
Starbucks are also working together on initiatives including the
promotion of responsible agronomy practices and the provision of
training for local farmers, technicians and agronomists to improve their
coffee-growing and milling skills, along with exploring community
projects which could positively impact the communities in the coffee
growing regions where Tata is active.
 2. Joint investment in the Tata STRIVE skills development program

Tata STRIVE, an initiative which empowers Indias youth with skills

for employment, entrepreneurship and community enterprise. Since
launching in 2014, Tata STRIVE has supported approximately 43,000
youth to-date. The joint partnership combines Tata STRIVEs expertise
in providing job skills training and Starbucks expertise in retail
operations, which is expected to impact 3,000 disadvantaged youth in
India.

3. High Brand Visibility (International popularity of the Starbucks

brand.)

4. Access to TATA's premium Robusta and Arabica coffees

(Sourcing Agreement).

5. Strong Brand Image of Tata.

6. High Scope for Cross Selling and Up-selling.

7. Low Investment for both the organization in terms of Market

development and Product Development
Objective of Tata Coffee behind this Alliance:

The agreement will allow Tata coffee to provide roast coffee bean
to Starbucks in India.

Get opportunity to jointly invest in additional facility for export

to other markets.

Starbucks will help by providing new technologies for the

promotion of responsible agronomy practices.

A long term relationship will be formed with this Memorandum

of Understanding with Starbucks.

After this deal, Tata Coffee is poised to become Asias biggest

publicly traded coffee grower.

Objective of Starbucks Corporation:

To tap huge emerging market of India.

Help increase its profitability due to its declining market and

over dependence on US market.

To have access to the high quality Arabica coffee.

Key Aspect:

1. Starbucks Soars to New Heights

Starbucks also announced it will soon take flight on Vistara, Indias

fastest growing full service airline, later this year. Starbucks fresh
brewed coffee service will be exclusively available on all Vistara
flights.
 2. A New Tea Experience

Building on the sustained success of the tea category in Starbucks U.S.

retail stores, Starbucks will extend its Teavana specialty tea brand to
India this December with unique bold and customized flavor
combinations. Like its industry-leading green coffee sourcing
practices, Starbucks and Tata are committed to promoting sustainable
tea practices and are collaborating on the development of a signature
Indian tea blend that will be available across all Starbucks stores in
India.

3. Expansion of Himalayan Water Program

Starbucks also plans to expand the availability of Himalayan Mineral

Water, bottled by Tata Global Beverages, beyond Starbucks stores in
India to Singapore later this year, as the companies explore
opportunities to introduce the bottled water brand to stores across
Starbucks China and Asia Pacific region. Himalayan Mineral Water is
bottled at the source from a pure and pristine underground moving
stream aquifer at the foothills of the Shivalik range in the Himalayas.
This aquifer is one of the largest and purest sources in the world,
providing a perennial source of natural mineral water.