Tata to open coffee shops

The much anticipated decision of Tata venturing into beverage retail outlets has finally been implemented. Tata Coffee Ltd., owned 51% by Tata Tea would be opening 100 coffee outlets over next 5 years around the country.

Currently, Tata Coffee has one outlet in Kochi under brand name Mr. Bean Junction. Initially the outlets would be opened in southern metro cities, where there is greater demand for such outlets.

The coffee retail segment has been witnessing great expansion over the years. With Barista and Café Coffee Day having a nationwide presence, and international chains Cost Coffee already present and Starbucks preparing the blueprint for entry, the sector will experience tough competition.

Tata Tea with its wide portfolio and tea and coffee products, along with other beverages and mineral water, could offer a complete drinks package. It could also leverage on its buyouts of Eight o’ Clock Coffee, Tetley, Mount Everest Water and other proposed global acquisitions.