Tata Sons and Starbucks have finalised several new joint initiatives to expand their collaboration at a global level, apart from building the iconic American coffee chain’s brand and business here. India is one of the coffee chain’s fastest-growing markets and has seen a good pace of progress with 83 stores in six cities.
Tata Sons Chairman Cyrus Mistry met Starbucks Chairman and Chief Executive Howard Schultz last week in Seattle and finalised these initiatives, which will be rolled out by the year-end.
We take a look at 10 initiatives Tata and Starbucks will take:
Coorg coffee in US: Starbucks for the first time will sell single-origin, premium coffee from India in the United States sourced from Tata Nullore Estates. Starbucks Reserve Tata Nullore Estates will be the first coffee from India to be roasted at the Starbucks Reserve roastery and tasting room and will be available only at Seattle later this year. Starbucks has also announced plans to increase its coffee-roasting capacity for supplying to its stores in the country and, over time, select markets around the globe.
Kenyan & Sumatran coffee in India: Tata Coffee, which has a roasting and packaging plant in Coorg, Karnataka since 2013, at present roasts Starbucks India Estates Blend and Espresso Roast coffee. It will soon expand to include both Kenyan and Sumatran coffees for Starbucks stores throughout the country, the companies said.
Starbucks coffee on Vistara: Starbucks also announced that it will offer its coffee on Vistara, the joint venture airline of the Tatas and Singapore Airlines, later this year.
Teavana special tea in India: The coffee chain will extend sale of its Teavana specialty tea in India by December. Teavana is owned by Starbucks and is available within stores in the US as well as in standalone Teavana boutiques. In India, a selection of Teavana SKUs will be offered within the stores.
Develop signature tea blends: The collaboration is also on for development of signature Indian tea blends that will be available across all Starbucks stores in the country.
Himalayan to be available in China, Asia Pacific: The American coffee chain looks to expand availability of mineral water Himalayan, bottled by Tata Global Beverages, to Singapore later this year. Plans are also afoot to introduce the bottled water brand in Starbucks stores in China and the Asia-Pacific region.
Skill youth: Further, the two companies have agreed to come together and skill youth over the next five years through Tata Strive, which has till date trained some 43,000 people. The joint partnership is expected to benefit 3,000 more disadvantaged youth in the country.
Coffee Masters at stores: A certified Coffee Master herself, Tata Starbucks’ Manmeet Vohra told Financial Express that the company put in place several initiatives to enhance the consumer experience, one of which is having Coffee Masters across stores. The coffee masters approach customers and share coffee tasting knowledge with them.
Mobile payment & loyalty app: Starbucks is set to launch a mobile payment and loyalty app in India. It will elevate the experience of My Starbucks Rewards members. It should be out later this year.
Starbucks reward program: India is the only market to launch the My Starbucks reward program within two years of the brand being in the market. There are about 1.5 lakh members and the transactions range between 20-24% generally. It hit an all time high during Christmas last year due to a promotional campaign.
The two groups have been running Tata Starbucks coffee chain in the country since October 2012 as part of a joint venture.