Tata Tea plans Russia JV for global spread

Tata Tea is planning to set up a joint venture company in Russia to tap opportunities in the tea and coffee space.

Speaking on the sidelines of the company’s annual general meeting, R K Krishna Kumar, vice chairman, Tata Tea said, the company is talking to a few companies and hopes to set up the joint venture by the end of the current fiscal.

The move was part of Tata Tea’s plans to expand the global footprint. Krishna Kumar said, and it would like to have a global footprint from Japan to the US.

At present, Tata Tea has a global market share of 4% and ranks the second while its competitor has 15%. Tata Tea is endeavouring to narrow the gap. Krishna Kumar said, the company would narrow down the gap in market value by having innovative products. In this context he mentioned, the joint venture in China created for polyphenol extracts.

Read more in The Business Standard article.

Tata Tea to buy 11 pc in Mount Everest

Tata Tea Ltd will buy 11 per cent of an Indian mineral water maker, a television channel said on Thursday, almost a week after the company agreed to sell a 30 percent stake in a US vitamin water maker for $1.2 billion.

CNBC TV18 said the founders of Mount Everest Mineral Water Ltd., which makes Himalayan brand of bottled water, would make a preferential allotment to Tata Tea.

Tata Tea will also make an open offer for more shares in Mount Everest to take its holding to 42 per cent, the TV channel said, adding Tata Tea's board was expected to approve the deal at a board meeting on Friday.

Read more in The Economic Times article.

Tata Tea to sell 30% Glaceau stake for $1.2bn

Soft drink giant Coca-Cola today announced it will acquire US energy drink maker Glaceau, in which the Tata Group has a 30% stake, for $4.1 billion.

Tata Tea had acquired 30% stake in Glaceau last year for $677 million, and has decided to sell its stake for $1.2 billion. Tata Tea stock zoomed 4% today to Rs 914.

Tata Tea, in a release issued to the BSE today, said the company through its indirect UK subsidiary Tata Tea (GB) Investments had acquired 25% of the shareholding of Energy Brands Inc, USA ("EBI") and Tate Sons through its subsidiary Tata Ltd (UK) had acquired 5% of the shareholding of EBI. The aggregate consideration for the purchase of this 30% holding was $677 million based on an enterprise valuation of $2.2 billion for EBI.

Coca-Cola Company will acquire Energy Brands Inc, also known as Glacéau, and its full range of enhanced water brands including vitaminwater. The acquisition provides The Coca-Cola Company with a strong platform to grow its active lifestyle beverages.

Read more in The Business Standard article.