The FINANCIAL -- Tata Global Beverages and Starbucks Coffee Company, announced a joint venture between the iconic international coffee brand and the second-largest branded tea company in the world,according to Tata. The 50/50 joint venture, named Tata Starbucks , will own and operate Starbucks cafés which will be branded as Starbucks Coffee “A Tata Alliance”.

The retail stores will be developed in cities across the country, beginning with stores in Delhi and Mumbai in calendar 2012.

In a separate sourcing and roasting agreement between Starbucks Coffee Company and Tata Coffee, Tata Coffee will roast coffee to supply Tata Starbucks , and to export to Starbucks Coffee Company. This agreement paves the way for consumers in India to enjoy the premium Starbucks Experience, while further discovering the unique taste of high-quality Indian arabica coffee worldwide. Tata Starbucks brings together two companies with a rich heritage in, and passion for, coffee, tea and innovative beverages. Together, the JV will enable an expanded range of beverage offerings for Indian consumers. As an example, the companies have agreed to jointly leverage assets and innovation to offer a premium tea product branded, Tata Tazo.

The Tata Starbucks joint venture will operate cafés under the Quick Service Restaurant category. This partnership will enable the introduction of the unique Starbucks Experience to Indian consumers. Through a separate coffee sourcing and roasting agreement, Starbucks and Tata Coffee will work towards developing and improving the profile of Indian-grown arabica coffees around the world by elevating the stature of Indian coffee through joint marketing efforts, as well as improving the quality of coffee through sustainable practices and advanced agronomy solutions.

Starbucks and Tata share common values of responsible business ethics and a commitment to community. Tata Coffee has been working to improve the lives of coffee growing communities in the state of Karnataka. Through an initial financial commitment, Starbucks will work with Tata to support 'Swastha', a school for children with special needs and aim to increase its capacity and outreach into the rural communities in the coffee growing region of Karnataka.

Tata Coffee and Starbucks also plan to work together on initiatives including the promotion of responsible agronomy practices and the provision of training for local farmers, technicians and agronomists to improve their coffee-growing and milling skills, along with exploring community projects which could positively impact the communities in the coffee growing regions where Tata is active.

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