Starbucks launches Teavana to capture India's tea market
CEO Sumitro Ghosh said the company wanted to 'do for tea in India what we have done for coffee all over the world'.
Tata Starbucks Private Limited, the Indian arm of the United States-based beverage giant, has launched its brand Teavana in India, making it the latest entry in the country’s tea-drinking market, The Hindu reported on Wednesday. The launch comes a year after Starbucks CEO Howard Schultz announced plans to introduce the tea brand in the country.
The company said that it would serve 18 varieties of tea across its 88 outlets in the country. Tata Starbucks Chief Executive Officer Sumitro Ghosh said the company wanted to “do for tea in India what we have done for coffee all over the world”. “We want to double our tea sales at the Starbucks outlets through Teavana,” Ghosh said told The Times of India.
The company will also explore the possibility of opening standalone tea outlets in the country, the CEO said. Starbucks initially acquired Teavana for $620 million (approximately Rs 4,229.33 crore) in 2012.
However, analysts said that it would be tough for the company to convince consumers to pay between Rs 150 to Rs 300 for a cup of tea, The Economic Times reported. Marketing consultant Harish Bijoor said it would also be tough for Tata Starbucks to ask people to experiment with their palate. “Purist tea consumption is all about brewing tea and India is a boiled tea consuming market,” he said.