Starbucks to enter India via tie up with Tata Coffee
13 Jan 2011
Starbucks Corp, the iconic US coffee chain, has signed a non-binding memorandum of understanding (MoU) with Tata Coffee Ltd, India's largest coffee producer and exporter for sourcing and roasting high-quality green coffee beans and to explore the possibility of opening retail stores in India.
The Seattle-based company will tie up with Tata Coffee, one of the region's leading providers of premium arabica coffee beans, for sourcing and roasting high-quality green coffee beans in Tata Coffee's Coorg facility in the state of Karnataka.
Tata Coffee and Starbucks will also jointly explore the development of Starbucks retail stores in retail outlets and hotels.
As part of the pact, both companies will collaborate to promote responsible agronomy practices, including training for local farmers, technicians and agronomists to improve their coffee-growing and milling skills.
Tata Coffee, with its large arabica coffee production base spread over different growing districts of South India, has supplied premium coffee beans to Starbucks in the past and is now seeking to build a long-term relationship.
Both companies will explore procuring green coffee from Tata Coffee estates roasting in Tata Coffee's existing roasting facilities. At a later phase, both Tata Coffee and Starbucks will consider jointly investing in additional facilities and roasting green coffee for export to other markets.
