(Image source: Wikimedia Commons)

BY KEVIN DUBOUIS

ANCHOR LAUREN GORES

Starbucks announced plans to bring its coffee shops to India through an $80 million joint venture with Tata Global Beverages. The company expects to open 50 outlets by year’s end. Bloomberg has comments from Starbucks’ China and Asia Pacific president John Culver.

“What they provide to us is the opportunity to build up this business in the right way. They have local knowledge, they have local infrastructure, we have a grand iconic brand.”

The Seattle Times reports Starbucks has been eyeing the Indian market for several years but the economic situation there had delayed any business agreements.

“The chain first planned to launch in India in 2007, when it still bragged it would reach 40,000 stores worldwide. The recession and Starbucks' overexpansion ended that talk. An overhauled Starbucks, at 17,250 stores worldwide, also plans less robust growth.”

India’s Daily News and Analysis says Starbucks and Tata eventually agreed on a 50:50 partnership.

“For Starbucks, Tata’s retail stores will help it sell its packaged coffees and other products. There will also be a co-branded premium tea that the two companies will work together on. Under a separate agreement between Starbucks Coffee Company and TataCoffee Ltd, the latter will roast coffee at its upcoming facility in South India for the whole of Starbucks India operations and to export to the Starbucks globally.”

The Indian business newspaper The Economic Times has comments from Tata Global Beverages’ Vice-chairman who sees the partnership with Starbucks as a development ...

“…‘that fits into the specific architecture of Tata Global Beverages which is to go into more valuated, superior category of the market place...’”

The New York Times reports India’s finance minister -- Pranab Mukherjee -- said coffee is becoming more popular in India, where tea had been the traditional drink of choice.

“ ... ‘India presents opportunity at this moment that cannot be ignored,’ Mr. Mukherjee said … India, long a country of tea drinkers, has experienced an explosion in cafes and restaurants over the last decade because of its growing middle class and a large youth population.”

And The Financial Times reports on Starbucks’ challenges.

“Starbucks will face competition from a handful of incumbent coffee chains… Starbucks is seeking to reduce the dominance of the US in its operations. More than 12,000 of its 17,000-plus stores are in its home market. The Americas region – including a few hundred stores in Canada and Latin America – accounts for three-quarters of its revenue.”