American coffee giant to open 50 stores this year; first ones in Delhi and Mumbai
Starbucks — the iconic American coffee house brand that helped make the beverage ‘cool' worldwide, spurring imitators but also critics — will soon set up shops across India in association with the Tata Group. The joint venture will set up around 50 stores during this calendar year with the first one likely to open in the second half of the year.
Tata Starbucks Ltd., an equal joint venture, will own and operate Starbucks cafes which will be branded Starbucks Coffee ‘A Tata Alliance.' The first retail stores will come up in Delhi and Mumbai.
In a separate sourcing and roasting agreement between the two companies, Tata Coffee (a subsidiary of Tata Global Beverages) will roast coffee to supply Tata Starbucks and to export to Starbucks Coffee Company.
The Tata Starbucks joint venture will operate cafes under the Quick Service Restaurant category. The joint venture will enable an expanded range of beverage offerings for Indian consumers, starting with a premium tea product, branded Tata Tazo.
With more than 17,000 stores globally, Starbucks is a premier roaster and retailer of speciality coffee around the world.
CCD not shaken
Bangalore correspondent reports:
Coffee retail leader Starbucks' anticipated arrival would not result in any changes in strategies or pricing at India's leading coffee chain Café Coffee Day (CCD).
Strategies
“Our strategies will be guided by consumers and not by competition. Even in case of pricing we will be guided by consumers,” K. Ramakrishnan, President (Marketing) of CCD, told The Hindu. “CCD has set the benchmark for the industry so far, and we hope we will continue with it in future also,” he added.
The company's strategy, he said, remained committed to growing to 2,000 cafes by the end of 2014. Of the roughly 2,000 coffee café outlets across the country at present, CCD's share is a little over 1,200.
Welcoming competition in the industry, Mr. Ramakrishnan said: “The arrival of competition (Starbucks) is an opportunity for the industry to grow. Industry and the market will be built on more activity and more international players, which is good.”
According to an industry source, the news of Starbucks coming to India was not something new, since it was making the rounds ever since Starbucks started discussions with Tata Global Beverages, the parent company of Tata Coffee, nearly a year ago. Current players would have moderated their strategies keeping in mind the anticipated arrival of the leading coffee chain.
Keywords: Tata Starbucks, FDI, CCD, coffe shops, Starbucks
Bring on some White Chocolate Frappuccino Grandes and Eggnogs! Can't wait to see the store in Bangalore.
Everybody makes coffee@home. But they are not a starbucks or CCD. The brands are attracting the customer. Packaging the product that the customer likes. Giving a product a taste that is going to be acceptable and consumed by the masses. More effective would be local players to compete with the brands and grow outward. challenge them on the local turf. And then global. This will ensure the jobs for Indians in every street corner globally.
Starbucks' coffee quality is bad. The flavor has deteriorated over the
years. Their revenues are sagging and the company is no longer what it
used to be in late 90s. Even in the US, they are losing loyal customers
to other competitors like Peets Coffee.
Starbucks may not make an impact in India where Cafe Coffee Day is way
ahead in terms of quality and coverage.
Indians in the US are very health conscious and are not lining up to eat fried onions or potatoes. While Starbucks is a brand, the coffee brewed depends on those behind the counter. My view on this is that if there are going to be 2000 cafes by the end of 2014, that would mean more jobs and opportunities for the ever growing population of India. I do not see any harm in this. We have to let go of the "fact" that everything American is bad while anything Indian is beyond reproach.
Let us now jettison our Indian Chai and embrace the American dark coffee
in the name of "Progress".
'The Indians in USA are mad after starbucks coffee and fried onions or potatoes.sold there.They take their old parents from India for that coffee all week ends.Many parents have felt that the quantity given is too much.Either Starbucks in India should reduce the quantum or the buyers would order one by two coffee.. Some of the Indians would have this attraction to come back to India.
Is this what INDIA wants? Is this progress? ABSOLUTELY NOT. It is beweldering that business houses like TATA too are going into projects like small cars Nano - while Indi would rather have better, multiple and efficient Public Transportations and infractures of ROADS. Again, why not invest in having have better Agricultural, and food products clear and clean (not with American GM seeds and Chemicals) - Invest in them NOT STARBUCKS. IT IS APPALING WHAT THIS GANG OF MANMOHAN AND CO IN DELHI IS DOING TO THIS COUNTRY .
Starbucks coffee is crap. European continental coffee is best e.g Nero
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