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| Tata Tea turns a new leaf |
| BS Reporter / Mumbai May 07, 2010, 00:57 IST |
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The world’s second largest tea company, Tata Tea, today re-named itself as Tata Global Beverages Ltd and, in the process, took the first step to become a well-rounded beverage firm.
The move came a year after the company announced a strategic reorganisation of its beverage business.
“It demonstrates our intent to build a new and strong global brand,” Tata Tea Vice-Chairman R Krishna Kumar said after the announcement.
Tata Tea, which began as a joint venture with UK-based James Finlay & Company in 1964, has over the past few years set its sight across the world. The Rs 4,874-crore company was keen to shed the image of being just a tea-coffee company. To this end, it acquired a number of companies and brands starting with the acquisition of UK’s Tetley in 2000, which was then the largest cross-border takeover of a firm at Rs 1,900 crore. The acquisition straightaway gave Tata Tea a presence in the key markets of Europe.
The company then focused its attention on other areas and markets and acquired a number of companies and brands. It bought Mount Everest Mineral Water Ltd, which owns the Himalayan brand of packaged water, in 2007, a 30 per cent stake in vitamin-water-maker Glaceau, which it sold to Coca-Cola in 2007, besides allied acquisitions such as Jemca in the Czech Republic, Grand in Russia, trademarks Flosana and Vitax in Poland.
BETWEEN THE CUP AND THE LIP
1964: Set up as a JV with UK’s James Finlay & Co
1982: Tata-Finlay Ltd becomes Tata Tea
2000: Acquires UK’s Tetley group
2005: Acquires Good Earth Corp in US
2006: Tata Coffee acquires Eight O’Clock Coffee in US
2006: Acquires 30 per cent stake in Glaceau
2007: Sells stake in Glaceau to Coca-Cola
2007: Acquires Mount Everest Mineral Water
2008/2009: Consolidates presence in East Europe |
At the moment, 70 per cent of Tata Tea’s revenue comes from the international markets.
The company is also looking to strengthen its non-tea-coffee operations, which it describes as ‘good for you’ beverages. It recently signed a memorandum of understanding with PepsiCo India.
The pact will allow it to specifically push non-carbonated beverage drinks on the health and wellness platform.
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