INDIA – Tata Coffee, a subsidiary of the Tata Group, has reported a 44.71 percent decline in quarter-3 consolidated net profit to Rs 38.40 crore (US$4.7m) compared to Rs69.46 crore (US$8.5m) for the same period last year.
Reporting on the three months ended 31 December 2022, Tata Coffee’s sales for the quarter grew 19% to reach Rs754.76 crore ($92.5m) compared to Rs 633.52 crore in the corresponding period last year, driven by the strong performance of the company’s Eight O’ Clock Coffee brand.
The operating performance of the business was impacted during the quarter under review by higher input and other costs, which are expected to ease over the coming quarters.
However, revenue from its Vietnamese coffee business continues to deliver robust sales with improved profitability driven by higher sales of premium including The Sonnets — its single origin, specialty coffee range.
Chacko P Thomas, Managing Director, Tata Coffee said: “The performance of our instant coffee business continues to be robust. Tata Coffee’s Vietnam operations continue to be strong with a healthy order pipeline.”
“There is, however, continuing inflationary pressure on costs and impact on instant coffee sales in some geographies. Our subsidiary, Eight O’ Clock Coffee, has registered higher revenues, though the profitability for the quarter has been impacted due to higher costs.”
The Bangalore-based company is Asia’s largest integrated coffee company and India’s second-largest exporter of instant coffee.
The Indian company produces coffee such as Eight O’Clock Coffee, Tata Coffee Grand, and Sonnets by Tata Coffee, tea, pepper, and related products.
Meanwhile, the impending merger between Tata Coffee (TCL) and Tata Consumer Products (TCPL) is still presenting an exciting arbitrage opportunity for traders after shareholders of Tata Consumer Products and Tata Coffee approved the reorganization of the businesses.
The shake-up, first announced in March 2022 and still pending, will see Tata Coffee Limited’s coffee plantation business demerged into a new entity, TCPL Beverages & Foods Limited. Meanwhile, the remainder of Tata Coffee’s branded coffee business will be merged with Tata Consumer Products.
Starbucks, DoorDash expand delivery partnership nationwide in the US
Elsewhere, an American multinational chain of coffeehouses, Starbucks Corp, has expanded its US partnership with DoorDash Inc on account that its customers will still be willing to pay more to have their high-end drinks delivered even as the pandemic starts to fade.
The coffee chain’s US delivery had grown 20% year-over-year as people were spending about twice as much money on delivery orders versus in-store orders, Chief Marketing Officer Brady Brewer said at the company’s Investor Day in September.
The coffee chain tested DoorDash in Atlanta, Houston, and Sacramento, California, before adding Seattle; Portland, Oregon; and New York City last year.
With the extended partnership, coffee drinkers in Northern California, Texas, Georgia, Florida, and some other markets can now get their Pistachio Cream Cold Brew delivered via DoorDash. Starbucks will expand its DoorDash areas in the coming weeks and is expected to be in all 50 states by March, the company said.
Starbucks delivery has been available in the United States of America nationwide via Uber Eats since 2020.