1. Tata Global Beverages
Challawar Mayur
11109
TAPMI
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2. About Tata Global Beverages
• Global non-alcoholic beverages company from the house of Tata’s
• Founded in 1964 as a joint venture with UK based Finlay group as
Tata Tea
• Head quartered in Kolkata and has offices across the world
• Subsidiaries include Tata Coffee, Tetley and Good Earth Tea
• Offerings include tea, coffee, dairy products and mineral water
• Has global presence across 40 countries in Asia, Europe, Americas
and Australia
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3. Vision and Mission
• Vision
Tata Global Beverages is today an integrated beverage business
that has set out on a journey to become the global leader in branded
‘good for you’ beverages
• Mission
We believe passionately in making the world a better place through
life-enhancing sustainable hydration - and it’s our mission to make
this a reality
• Apart from the vision and mission of the company, Tata Global
Beverages follows code of conduct, vision and mission of Tata
Group
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4. Past Scenario’s & strategies
• Started as a joint venture with Finlay group as Tata Finlay in
1964, Tata was exporting ‘tea leaves’ from its tea plantations in
India to Finlay for processing
• Tata took over the venture after gaining expertise in tea processing
and rebranded itself as ‘Tata Tea’
• From then on Tata acquired many other beverages companies
across the globe for global expansion
• To name a major acquisitions - Tetley in 2000, JEMCA in 2006
• Thus going global was one of the chief objectives of Tata Tea
• Went ahead with expansion/growth strategy, to capture the tea
market
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5. How acquiring helped Tata – What was the strategy behind
acquisition?
• Tata Tea’s major weakness – ‘Not a global player and was limited
only to few countries’ was converted into strength by acquiring
‘Tetley’ which had market/presence in 40 countries
• The portfolio of products increased after acquisition
• Tata Tea sold ‘Tetley’ as a premium/high value tea in Indian market
apart from its domestic Indian brands , thus Tata Tea created a
sense of differentiation, in terms of providing premium tea to
middle and high class customer base
• This differentiation made it unique from its major competitor –
Hindustan Unilever Ltd
• Though the acquisition was considered as highly overvalued in
2000, 10 years down the line ,Tata global beverages(Tata Tea +
Tetley+ subsidiaries) is the second largest tea manufacturer and
distributor in the world, making it one of the most profitable
companies under Tata group
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6. Tata Global Beverages – Current scenario till 2012
SWOT of Tata Global Beverages
Strengths
-Presence across more than 40+ countries
-Has differentiated products in tea, coffee and mineral water
areas, thus catering to different segments
-Has large base of tea and coffee plantations in India, which are the
largest in the world
-Part of the Tata group, a $83 billion Indian multinational, which is
famous for risk taking and acquisitions
Weakness
-Mostly confined to selling tea and coffee brands
Opportunities
-Immense opportunity to enter into a new area like selling ready made
beverages through retail chains , similar to the way of Café Coffee
Day(CCD)
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7. Tata Global Beverages – Current scenario till 2012
Threats
-Tough competition from Hindustan Unilever in the current business
-Also high competition from local tea selling vendors
What did Tata Global Beverages do in 2012?
-Announced/Formed a joint venture(50:50) with Starbucks on 30th
January 2012 to sell ready made tea and coffee through Starbucks
Café to be opened across 10-12 locations in 2012-13.The café
name was branded as ‘Tata Starbucks’. Thus Tata Global
Beverages went for diversification and differentiated from its main
rival HUL
Main competitors in this area
-Café Coffee day, an already established player and leader in the café
industry
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8. SWOT for Tata Global Beverages + Starbucks
joint venture
Strengths
-Starbucks, a leader in café industry across the world
-Chance for Starbucks to enter into Indian market
-Opportunity for Tata to differentiate and diversify by utilizing the
Starbucks technology in this new area
Weakness
Starbucks being famous for Italian coffee varieties, might have to study
Indian market thoroughly
Opportunities
-Chance to tap high potential Indian market/growing middle class
-Win-Win situation for Tata Global Beverages as well as Starbucks
Threats
-Presence of already established players and presence of many small
and large cafes in Indian cities and towns
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9. Industry analysis – Entry of Tata global beverages-
Starbucks into the café/beverages segment
Suppliers Bargaining power:
is less as each vendor(CCD or
Barista or cafes) get tea
powder/coffee in abundance.
Each entity owns tea and
coffee farms ,hence supplier
power is less
Threat of new entrants:
Threat of new entrants is Industry rivalry: Buyer Bargaining
not very high as it is still Industry currently power: very high as
the field to be explored in dominated by Café buyer has many
India, however owning tea Coffee choice/portfolio of
and coffee farms, initial Day(CCD),Barista products/may
investment for processing and other local vendors selling more
tea and coffee processing cafes, competition or less similar
is very high is intense products at an
affordable cost
Threat of substitutes:
Many substitutes, intense
competition from other
beverages like cola, lime
products(Coca cola,
Sprite etc)
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10. Thanks
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