The FINANCIAL — Tata Global Beverages reported steady growth in revenues and significant increase in group net profit, according to Tata Sons.
For the quarter, income from operations at Rs1,933 crore, increased by 4 percent year-on-year, reflecting good performance in some key markets, coupled with favourable foreign exchange impact. After considering exceptional items, group consolidated net profit is 51 percent higher than in the same period in the previous year, reflecting the favourable impact of exceptional items, according to Tata Sons.
During the quarter, Tata Global Beverages invested significantly in its brands in various geographies around the globe. In the US, the iconic Eight O’Clock Coffee brand was relaunched with new blends, a sleek, new, red pack design and a highly visible advertisement campaign. In India, the company’s flagship brand, Tata Tea, launched its new 'Jaago Re' campaign, titled the 'Power of 49' and urging women to exercise their power of vote in the run-up to elections. In Russia, Grand Coffee was relaunched with a new brand positioning and improved blends. In the United Kingdom, an innovative 360-degree marketing campaign, titled 'Find Sydney', was successfully launched, inviting consumers to participate in a contest built around one of the iconic Tetley Tea folk.
The company’s brands of water — Himalayan water, Tata Water Plus and Tata Gluco Plus — continued to make good progress during the quarter. Tata Gluco Plus also launched a new grape flavour, which has met with very good market response. Tata Starbucks — a joint venture between Tata Global Beverages and Starbucks — now has 27 Starbucks stores across the cities of Mumbai, Delhi and Pune. The stores continue to witness excellent consumer response.
The company also implemented, during the past few months, a series of new investments and restructuring initiatives designed to drive future growth and performance, and also to focus on core operations.
“We continue to record steady growth in a challenging global operating environment," said
Harish Bhat, managing director and CEO of Tata Global Beverages. "Notwithstanding differing economic conditions in various countries, our focus continues to be consistent investment in our brands of tea, coffee and water, to create millions of moments of beverage magic for our consumers. The significant brand re-launches and marketing campaigns of the quarter, ranging from Eight O’Clock Coffee in the US, to Tetley in the United Kingdom and Tata Tea in India are strong testimony to this commitment. In addition, the slew of restructuring moves and new business investments we have announced and implemented will help create a more efficient, growth-driven and future-focused organisation,” Bhat added.
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