Tata coffee begins supply of homegrown blend to starbucks.

Tata coffee has come up with a micro-lot model to improve the quality of the beans that matches global standards.  Company has started supplying homegrown coffee to the starbucks reserve in seattle on a pilot basis.

Why is this important?

Earlier, Indian coffee were not able to match with standards of latin Americans because of elevation, soil conditions, and climate conditions. It has already exported two micro-lot of domestic coffee produce called the Indian Estates Blend. Company provides bean to 100 outlets of starbucks. There is huge size of opportunity for the company. Company has 50-50 Joint venture with Starbucks since 2012.

Stock to be impacted?

This is positive for the company (CMP 118, M. Cap 2210 Crores, P/BV 60).

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