In addition, the company has entered the branded cold drinks market with the launch of T!ON.
Tata Tea has made the acquisition along with the European Bank for Reconstruction and Development (EBRD). The latter is buying 17.8%.
Tata Tea and EBRD will hold a 51% stake in the Russian company, while the remaining 49% will stay with the original founders. The company said that it wants to strengthen its presence in the Russian beverages market. The financial details of the transaction are undisclosed.
In a further development of the company’s strategy to seek opportunities to expand its beverage portfolio beyond tea and coffee, the launch of T!ON signals the company’s entry into a market that’s double the size of the branded tea market in which it currently operates.
Tata Tea executive director, Sangeeta Talwar, said: “This is a defining moment for Tata Tea, as it symbolises the transformative change taking place in the company. It has been positioned to appeal to youthfulness in its active refreshment platform and its brand architecture.”
T!ON will be available in three flavours: Mango Rush, Peach Punch and Apple Buzz. The 400ml PET bottle is priced at Rs22. The company is positioning this drink as a health and wellness drink, with ingredients such as tea, fruit and ginseng.
Source: VCCircle/mydigitalfc.com/The Economic Times
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