Come late October, Mumbai will have India’s very first Starbucks Coffee!
But here’s the catch…
Tata Starbucks
Starbucks in India will be known as Tata Starbucks. A 50-50 joint venture between the two massive companies. Now hold on a second, a JV between Tata and Starbucks? No of course not. Its a joint venture between Tata Global Beverages and Starbucks. Tata is not not only in the beverages market, but also in the coffee market with Tata Coffee Ltd – India’s largest producer and exporter of coffee. What isn’t Tata in? Steel, cars, power, internet, insurance, coffee…What else is left for them to stick their Tata label on?
The economic slump in Europe and the US has pushed Starbucks to try and tap into India’s emerging market. Partnering with Tata on their expansion is an interesting concept. Will we see more Tata – ‘Foreign company’ joint ventures in the future? Other foreign food/beverage companies such as Dunkin’ Donuts and Krispy Kreme have also got plans in the coming years in the Indian market.
Tata Starbucks will have a lot of competition in India’s coffee market with companies such as Costa Coffee, Barista and the current market leader Cafe Coffee Day. Will Indians go for Tata Starbucks instead of their trusted Cafe Coffee Day? Foreign brands tend to do quite well amongst Indian consumers so Cafe Coffee day might have some strong competition coming their way. But, a question still remains, will indian consumers associate Tata Starbucks with Tata or with Starbucks?
Articles:
http://www.bbc.co.uk/news/world-asia-india-19754584
http://www.business-standard.com/india/news/tatas-to-get-brand-royaltyjvstarbucks/463513/