Tata Consumer Products 2020 Annual Report Takeaways!

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Tata Consumer Products Q1FY21 Report Card

Fun Facts

Tata Global Beverages was renamed as Tata Consumer Products, following the merger of the Consumer Products business of Tata Chemicals with itself.

171.5 Mn Kg Branded Sales Volume – Tea

1,185.2 Mn Kg Branded Sales Volume – Salt

About Tata Consumer

Home to iconic brands, such as Tata Tea, Tetley, Eight O’ Clock, Himalayan, Tata Salt, and Tata Sampann, their portfolio of products represents its interests spanning food and beverage.

With a combined reach of 200 million households in India, they have an unparalleled ability to leverage the Tata brand in consumer products. Their deep understanding of consumers, iconic category-leading brands, and vastness of reach are key drivers of the value proposition. Their JV Tata Starbucks owns and operates cafés in India. They also have a JV with PepsiCo in India, NourishCo*, which markets non-carbonated ready-to-drink beverages that focus on health and enhanced wellness.

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With a diverse workforce spread across the world, we have grown through innovation, organic expansion, multiple strategic alliances, and bold acquisitions.

They are in the process of acquiring the 50% stake of PepsiCo in NourishCo Beverages, which is in line with their ambition to create a larger portfolio in the food and beverage industry in India. On the completion of this acquisition, NourishCo Beverages will become a fully‑owned subsidiary of Tata Consumer Products Limited.

Tata Starbucks, a 50:50 JV between Tata Consumer and Starbucks has been performing well, with 39 new stores opened during the year. There is now a total of 185 stores across 11 cities in India. The growth in Tata Starbucks was however impacted a bit in Q4, due to the onset of COVID-19, which led to the closure of all stores for more than two weeks in the month of March.

Products

Tea – No. 2 branded tea company in the world, with a portfolio of global leading brands and trusted regional ‘hero’ brands

Black tea | Specialty tea | Cold infusions | Iced tea | Ready-to-drink tea

Coffee – Category-defining brands that are consistently ranked ahead on quality 

Whole bean | Ground | Gourmet coffee | K-Cup brews  Instant coffee | Coffee capsules

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Foods – Household in-the-kitchen brands enjoyed all over India 

Salt | Dals and pulses | Besan Ready-to-cook mix | Spices | Poha  | Nutritional solutions

Liquid Beverages – Water, instant energy and RTD wellness brands

Natural mineral water | Nutrient water | Ready-to-serve drink

Out of Home – Social hubs with food and beverages at the core

Coffeehouse chain | Concept tea cafes

Geographies they are present in

Market Leaderships

Performance Highlights

Evolving Trends

Some Thought Processes

Indian Consumption Story

India’s food and beverage consumption in 2019 was estimated at ~Rs. 30 Lakh Crores. The ‘in-the-kitchen’ segment, comprising staples, spices, and condiments, dairy, and others, accounts for ~70% of the food and beverage basket, or ~Rs. 21 Lakh Crores. However, the share of organized players in this segment is less than 10% and remains largely untapped. The other segments, ‘on-the-table’ (comprising spreads, sauces, and others) and ‘on-the-go’ (comprising snacks, ready-to-eat options, and others) have traditionally seen a larger play by organized players, but their offerings are skewed towards indulgent snacking products. The industry is also witnessing a shift in consumer preferences, with demand for healthier, better quality, and more affordable food and drink options growing across all three segments.

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Evolving Consumer Behaviour

The rising affluence of Indian households will lead to premiumization and higher demand for products that are healthy, provide well-being, and are convenient to use. 1 in 2 households in 2030 will belong to the high and upper-middle-income segments (compared with 1 in 4 households today).

India’s young consumer – India will witness the rise of the Gen-Z consumer – tech-savvy, aspirational, and desirous of engaging with brands across multiple channels.





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