Tata Starbucks, the equal joint venture between Starbucks Coffee Company and Tata Consumer Products, has launched eastern India's first coffee reserve in Kolkata as part of its strategy to expand business in the region. The Mumbai-based company is also planning to partner with farmers for the cultivation of arabica coffee in Bengal.
Reserve stores in India
The company currently operates four reserve stores in India — two in Delhi and one in Mumbai — according to Adrit Mishra, chief operating officer of Tata Starbucks. "At our reserves consumers can try out with different types of beans procured globally. We chose a mall in Beckbagan area to set up our first reserve in eastern India. We have selected Kolkata because the consumption of coffee is on the rise here," he said.
Expansion strategy
The company's expansion strategy is centred on increasing coffee consumption in households where tea continues to dominate the hot beverage market. "This city (Kolkata) is known for its iconic Coffee House that dates back to the British era. Even though coffee accounts for about 25% of hot beverage consumption, the number of coffee connoisseurs is growing here. Given this, we are exploring this market for upward business trajectory. We are expanding our product portfolio for local consumers here. We have 13 stores including the reserve in Kolkata and we are also trying to open a story in the airport. We are also exploring business avenues along highways for increasing the number of outlets," Mishra said.
Partnership with farmers
On the proposed partnership with farmers, Mishra said, "This is a national initiative under which about one million arabica seedlings will be distributed to around 10,000 farmers in the country and this includes Bengal where coffee cultivation has started."
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