Your Fave Java Chip Frappuccino Is Going Nowhere! Tata Consumer Denies Report Of Starbucks Exiting India

If the news going around about Starbucks bidding farewell to India broke your heart, then we have some good news for you all! Tata Consumer Products has released a statement calling all such reports ‘baseless’. This comes after a Rajasthan-based media organisation released a report suggesting that Starbucks could be leaving India soon because of rising losses.

Tata Consumer Deny Starbucks Exiting India Report

According to Hindustan Times, in letters to three major Indian stock exchanges, Tata Consumer Products denied a report suggesting that Starbucks could exit India soon. The letters were addressed to the National Stock Exchange of India, Bombay Stock Exchange, and Calcutta Stock Exchange. The letter was titled “Clarification on News Article Titled – Starbucks to Exit India Due to High Costs, Bad Taste, and Mounting Losses.”

Tata Consumer Products stated in the letter that “the information in the said article is completely false and baseless.” They further added that “Tata’s relationship with Starbucks stands strong with shared values and commitment to India.”

Back in 2012, Starbucks entered India with a partnership with Tata Consumer Products. Reportedly, the American coffee chain saw sales rise by 12% to ₹1,218 crore in the last financial year in India. However, its net loss widened to ₹80 crore from ₹25 crore with only a marginal revenue rise.

Also Read: Regular Coffee Consumption Can Add Almost Two Years Of Healthy Living To Your Life, Reveals New Study

What The News Report Said

A report by Rajasthan-based The Philox suggested that Starbucks could soon be leaving India because of rising losses and high operating costs. They released an article with the headline “Starbucks to Exit India Due to High Costs, Bad Taste, and Mounting Losses.” It was published days after Tata Consumer CEO Sunil D’Souza said that the company would delay its plans to open new Starbucks stores.

In the article published by Philox, they said that despite Starbucks’s ambitious plans, they “struggled to turn significant profits in the Indian market.” They further stated that its beverages are perceived as “overpriced and shallow” in the country. Despite all these claims, they had no statement or quote by any Starbucks officials in the article.

Also Read: Redditor Claims To Have Met Kartik Aaryan At Starbucks In Mumbai Airport; Shares His Fan Moment

Which is your favourite Starbucks drink? Let us know in the comments.

Cover Image Courtesy: Canva (representative image)