Tata Consumer Products Ltd said it has decided to divest its MAP Out of Home coffee business in Australia to Buccheri Group Pty Ltd to focus on more profitable lines of businesses.
It will not affect its branded tea business in Australia.
The company, which supplies both coffee beans as well as machines to coffee outlets, was acquired by Tata Global Beverages in 2014.
After the acquisition, the company diversified into all hot beverages, including Tetley teas, Teapigs Super Premium teas and so on.
“This move is consistent with our focus on consolidating our businesses and enhancing profitability and business effectiveness. This will also help bring greater focus to our core branded tea and coffee businesses in International markets,” the company said in its announcement of the deal.
The financial details of the deal were not disclosed, but the company said the move is in line with its “strategy and business objectives”.
“In line with our strategy of driving structural simplification and focusing on core businesses where we see profitable growth, we have exited the out of home coffee business in Australia,” said Managing Director & Chief Executive Officer Sunil D’Souza.
“While it was a small part of our overall business, the divestment will help us further consolidate our International footprint and better focus on our core brands.”
The coffee business has been purchased by o Buccheri Group Pty, a boutique coffee manufacturer established in Australia in 2007, and led by Santo Buccheri and his family.
Tata Consumer Products Limited is a F&B focused consumer products company.
The Company’s portfolio of products includes tea, coffee, water, salt, pulses, spices, and ready-to-cook offerings, and claims to be the 2nd largest branded tea company in the world.
Its key beverage brands include Tata Tea, Tetley, Eight O’Clock Coffee, Tata Coffee Grand and Himalayan Natural Mineral Water.
Food brands such as Tata Salt and Tata Sampann are also part of the company’s portfolio.
The company, whose products are consumed by nearly every household in India, has an annual turnover of around Rs. 10,000 cr and employs 2,200 people in its branded business workforce.