Tata Consumer Denies Report on Starbucks Exiting India, Calls It ‘Baseless’

Tata Consumer Products has strongly refuted a recent media report suggesting that Starbucks is planning to exit India due to mounting losses and high operating costs. The company described the claims as “baseless” in letters sent to major Indian stock exchanges on December 19.

The report, published by a Rajasthan-based media outlet, The Philox, claimed that the popular American coffee chain might soon leave India due to rising expenses and a lack of demand among price-conscious Indian consumers. The article speculated that Indian customers prefer cheaper, local alternatives to Starbucks, citing a perceived mismatch between the chain’s offerings and local tastes.

Tata Consumer Products, which entered into a partnership with Starbucks in 2012 to bring the brand to India, denied these assertions, calling them completely unfounded. The company emphasized that no official statements were made by Tata or Starbucks officials regarding such a move. They clarified that the report had not quoted any official sources and was purely speculative.

Despite the challenges faced by Starbucks in India, including rising losses, the joint venture between Tata Consumer Products and Starbucks has continued to operate. The company’s annual report revealed a widening loss of ₹81 crore for fiscal year 2024, although revenue from operations grew by 12%.

In response to the report, Tata Consumer Products reaffirmed its commitment to the Indian market. “Reports of Starbucks looking to exit India are completely false and baseless,” the company stated in its clarification. Tata also highlighted the strong partnership between the two companies, built on shared values and a mutual commitment to the Indian market.

However, Tata Consumer’s CEO Sunil D’Souza confirmed in an interview with Reuters that the company would delay the opening of new Starbucks stores in India due to a decrease in foot traffic at some of its cafes.