Tata Global Beverages Ltd has said it will have to devise the "right strategy" for the company's branded coffee business in the United States.
The branded coffee market in the US has witnessed consolidation over the past few years and recrafting the Eight O'Clock coffee business in this new environment is critical to its growth and success, TGBL Chairman N Chandrasekaran said.
"The company has to craft the right strategy for its branded coffee business in USA, which recorded lower levels of performance compared to the previous year," Chandrasekaran said in the company's latest annual report.
"The year also marked the first full year of transition in USA, for Eight O'Clock coffee pods, from a royalty agreement with Keurig to TGB controlling the majority of the sales channel. We believe this will help our long-term growth," MD & CEO Ajoy Misra said in the report.
Chandrasekaran said the company, which sells branded tea, coffee and water products, including Tata Tea, Tetley, Tata Coffee Grand and Himalayan, sees huge opportunity in India for accelerated growth of consumer-packaged goods.
"Overall, a core challenge ahead of the company lies in leveraging its strong assets, including its brands, its deep category expertise and sales networks, to move up to a far higher trajectory of growth," he said.
Misra said TGBL is already piloting new categories in India such as Tata Cha, Tata Fruski and Tata Tea Quick Chai, a 3-in-1 tea mix.