Tata’s Grand New Business Venture

Tata Global Beverages are trying to expand their beverages selection by attempting to enter the instant coffee market. On Monday, Tata unveiled their new product, Tata Coffee Grand, which they hope will provide a stiff competition against the giants of coffee, Nestle’s Nescafe and Hindustan Unilever’s Bru. 

Tata has historically been the leaders in the Indian tea market and this marks a new venture for Tata Global Beverages in the ever growing coffee segment of the country. The market is poised to reach the ₹1,800 crore mark with the growth of 20% in the coming years. Although Tata had entered this market with its Tata Kaapi, Tata Cafe and Mysore Gold, it did not gain any traction. Tata has had an alliance with Starbucks since 2012, but the introduction of Tata Coffee Grand marks as a significant step in the production and distribution of coffee under their own brand. Under the name Tata Coffee Ltd., it owns around 19 coffee estates in Southern India which will provide to be of greater use for this new venture.

Speaking during the launch of the product, Sushant Das, regional president – India, said “The coffee category in India is poised to grow in the coming years and Tata Global Beverages is well positioned to enter this category. Tata Coffee Grand gives consumers the convenience of instant coffee along with excellent taste and flavour.” Tata Coffee Grand hopes to provide a different experience for its consumers based on its premium blends and a significantly more rich and aromatic coffee.

The pricing for the coffee will be lower in the Southern states due to the high demand and competition. Almost 80% of coffee consumption comes from the southern states. The 110g bottle of Tata Coffee Grand will cost Rs. 110 in the southern states and Rs. 130 in the northern states.