Friday 31 January 2014

Tata Global Beverages plans acquisition to strengthen its coffee business

In a bid to strengthen its coffee business, Tata Global Beverages is looking to expand the coffee business either through acquisitions or by extending the existing brands both in India and overseas markets.

In India, the company has got a few coffee brands such as Coorg, Tata Coffee and Mr Bean. However, while these brands have a dominant position in the southern market, they have been unable to take on Nescafe and Hindustan Unilever’s Bru at the national level. Similarly, in the US, which is dominantly a coffee drinking nation, the company is witnessing a major challenge from local coffee players.

Meanwhile, the company has been pushing the coffee business through its joint venture with Starbucks in India.

The company reported 23.56% rise in its net profit at Rs 87.95 crore for the quarter as compared to Rs 71.18 crore for the same quarter in the previous year. Total income of the company increased 12.52% at Rs 768.90 crore for quarter under review, as compared to Rs 683.36 crore for the quarter ended December 31, 2012.

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