InvestorQ : Why is Tata Consumer Products hiving off some of its US businesses?
Mahima Roy made post

Why is Tata Consumer Products hiving off some of its US businesses?

2 years ago

Tata Consumer Products, formerly Tata Global Beverages, has announced that its step-down subsidiaries in the US would be divesting their complete stakes in Empirical Group LLC and Southern Tea LLC to Harris Tea Company, their joint venture partner. This divestment will allow Tata Consumer Products to purely focus on its core branded business in the global markets. Empirical sells white label tea and coffee to contract customers.

Tata Consumer Products is the second-largest branded tea company in the world and they are looking to establish their brand and footprint in the global tea business. However, Southern Tea will continue to manufacture on behalf of Tetley and Good Earth tea brands. For Tata Consumer it was becoming a risk of confusing signals as it was involved with multiple brands. Now there will be much greater brand focus in the global markets.

Tata Consumer Products Limited sells a wide range of food products and beverages in India as well as in overseas markets predominantly in the UK and the US. Some of its marquee products include packaged tea, coffee, water, salt, pulses, spices, ready-to-cook offerings, breakfast cereals, snacks etc. The divestment will be a move to enhance their focus on the branded tea and coffee businesses in the US market, where it does see huge potential.