Starbucks unveils Teavana in India; keeps pricing competitive
Latest News - Tata Starbucks, the joint venture between Tata Global Beverages and Seattle-based Starbucks Coffee Company in India, has launched the chain of tea bars Teavana today. This, a year after Starbucks' chairman & CEO Howard Schultz had indicated the same. The move is expected to spice up the nearly Rs 2,000-crore coffee retail market in India, which includes the likes of Cafe Coffee Day, Barista, Costa Coffee and Di Bella Coffee among others. While tea among other assortments has been a part of the menu of most cafe retail chains in the country, branding it separately like the way Starbucks has done with Teavana, is a trend that could pick up in the future, market experts said. In a conversation with Business Standard, Sumitro Ghosh, chief executive officer, Tata Starbucks, said that he expected to double tea sales within Starbucks stores through Teavana. While the tea bars will be housed within all 88 Starbucks stores in the country to begin with, Ghosh said his firm was evaluating launching standalone Teavana outlets in the future.
Industry sources said that standalone Teavana stores could be launched in about six to eight months once the format has been sufficiently tested within Starbucks outlets. Globally, Teavana available across the US, Canada, Mexico, Indonesia, China, Japan and the Middle East has a combination of standalone outlets and in-store presence within Starbucks cafes. Price of the Teavana range of hot, cold and infused teas is competitive, starting from Rs 130 per unit (or per cup) and extending to about Rs 315 per unit. Coffees at Starbucks start from Rs 125 extending upto around Rs 300 per unit. Some 18 different tea offerings have been introduced under Teavana, with a special India blend, developed jointly by Tata Global Beverages and Starbucks. This is priced at Rs 295 for a pot, implying that the per unit cost works out to about Rs 148, sector experts said. A pot, for the record, can serve two people. Starbucks will also sell the Teavana India blend separately within its stores in a bid to push consumer sales of its products. While Starbucks does not retail its products outside its stores in India, globally its tea and coffee products are available in grocery channels .
Article by – Business Standard