NEW ENGINES OF GROWTH

52%

Revenue growth in FY 21-22

Accelerating growth in the RTD beverages segment with NourishCo

Since acquiring complete ownership of NourishCo in May 2020, we seamlessly integrated the business while achieving high engagement level within the team.

One of our key goals following the acquisition, was to expand distribution coverage to leverage the strength of our existing portfolio and maximise the potential of our innovations. Over the past year, we expanded distribution by 80% and capacity by over 50% through an asset-light model, while doubling down on innovation.

In RTD Beverages, our strategy is to rapidly increase addressable market through distribution and co-packer expansion, expand portfolio through innovations while building brands and retaining cost competitiveness. To achieve this, we:

  • Forayed into 7 new states following successful pilots
  • Launched a host of cost-saving initiatives
  • Revamped Tata Fruski with the introduction of new flavours with an ethnic twist
  • Introduced Tata Gluco Plus Jelly, a product at the cusp of snacking and beverages, to strengthen our functional beverage offerings.
  • Focused on building a strong pipeline of new innovations

83%

Revenue growth for NourishCo in FY 21-22

10%

Innovation to sales contribution

For bottled water, our strategy was to expand distribution and strengthen the product portfolio across segments and price points. Some of the key initiatives undertaken in the Water business were:

  • Rechristened Tata Water Plus, our mass packaged drinking water brand to Tata Copper Water to enliven the value proposition of added copper. Several other SKUs were launched to maximise the potential of the brand
  • Our premium brand in the segment, Himalayan is the #1 natural mineral water brand in the country and has turned profitable during the year for the first time since inception. Direct distribution for the brand led to better control over the channel and profits

Unlocking new markets with Tata Soulfull

The pandemic has triggered a demand for wellnessled products. Today, there’s a greater tendency among Indian consumers to choose brands that offer healthier, more nutritious, and sustainable alternatives. This shift in consumer attitude has birthed new categories and expanded the market. With Tata Soulfull, we are strengthening our ‘better-for-you’ product portfolio and addressing new consumer needs with a portfolio of millet-based products for kids and adults. Millets are ancient grains that have been in use in traditional Indian kitchens for a long time and India is one of the largest producers of millets. Compared with other grains, millets require significantly less water and minimal fertilisers and pesticides to grow; thereby benefitting both the famer and the planet.

Being gluten-free and nutrition-dense — as well as rich in iron, protein, dietary fibre and calcium — these grains are making a comeback in modern Indian kitchens, as consumers seek out healthy food options. With rich expertise in ancient millets like ragi, Tata Soulfull has an innovative portfolio of products such as breakfast cereals, healthy snacks, muesli, and plantbased protein drinks.

Tata Soulfull’s distribution footprint has expanded 10X of what it used to be when it was first launched and the products are now available across 3 lakh outlets in India. Additionally, the direct-toconsumer channel scaled up by 12X during the year.

ENTERING THE READY-TO-EAT SEGMENT
BRINGING QUICK AND WHOLESOME MEALS ON-THE-GO WITH TATA Q

During the year, Tata Consumer acquired Tata Smartfoodz, owner of the brand ‘Tata Q’, which has enabled us to expand our product portfolio and enter the RTE segment. In India, the category grew significantly during the pandemic and is further expected to benefit from rapid urbanisation, high disposable income and consumers seeking convenience, variety and hygiene. The category is already large and growing strongly in the international markets where Tata Consumer Products already has a presence.

We will leverage our existing domestic and international distribution and focus on operational excellence to maximise value in the segment. The technology will also help us create a strong pipeline of value-added products in other parts of the Foods business.

Tata SmartFoodz commenced operations in 2019 and within a short time has established itself as the #2 player in the Ready-to-eat (RTE) market in India. It has a state-of-the-art manufacturing facility in Sri City, Andhra Pradesh. The Tata Q brand offers a range of innovative and differentiated products.

Key differentiators

Each delicious TATA Q meal is prepared using high quality ingredients and sealed with care using state-of-the-art sterilisation technology. The innovative technology allows TataQ to keep the food delicious for 12 months from the date of packaging – with no refrigeration. Some of the new launches during the year include: Hot & Spicy Noodles, Pepper Masala Noodles, Classic Chicken Seekh Kebab, Spicy Jalapeno Chicken Sausages, Cheesy Pasta with Corn and Gujarati Daliya Khichdi.

#2 BRAND

In the RTE market in India

230 MILLION

Impressions of Tata Q delivered across social media, OTT and YouTube

TASTE THE GOODNESS
WITH GOOD EARTH

With life returning to normal, the focus on physical and mental well-being remains top priority for the UK consumer, with their food and drink choices playing a big part in healthier lifestyles.

Good Earth, Good Energy is a new natural energy drink in ‘good for you’ beverages, which is grabbing the attention of young, health-conscious and planet savvy drinkers.

With vegan friendly, all-natural and organic ingredients Good Energy is a very different tasting energy drink to the norm. It’s light and refreshing and for a natural boost of feel-good energy, has 80mg of natural caffeine, equivalent to a cup of coffee, sourced from Guayusa, a celebrated Ecuadorian leaf blended 15mg of added vitamin C.

All in all, it appeals to the health-aware who wants a more natural pick up, with no artificial ingredients and lower sugar levels, 4.4g per 100ml and less than 50 calories a can.

The recent ‘Free the Good Energy’ campaign aimed to leverage great taste and on-the-go consumption by driving distribution in key areas of London with an overarching experiential plan to accelerate product trial and awareness during the summer.

TATA STARBUCKS

Tata Starbucks added 50 new stores to its portfolio this financial year, which is among the highest ever since its launch in India. The brand entered seven new cities of Jaipur, Siliguri, Trivandrum, Guwahati, Nashik, Bhubaneshwar and Goa and witnessed an outstanding response in each of the cities.

My Starbucks Rewards (MSR), the loyalty programme member base witnessed a growth of 21% last year and boasts of a loyalty base of close to 1.1 million customers.

Tata Starbucks focused on innovation, digital and deep customer connections to navigate this pandemic and make the Starbucks experience as engaging and personalised as ever.

PRODUCT INNOVATION

Launch of Bake In

For the first time in India, Tata Starbucks introduced the concept of ‘bake-in-store format’ with a delicious menu of freshly baked items. Launched exclusively at the iconic Red Chillies store in Khar, Mumbai, the brand is offering handcrafted savoury and sweet food items in store.

The specially curated #FreshlyBakedAtStarbucks menu features delicious offerings like the Cocoa Hazelnut Croissant, Chocolate Twist, Onion & Cheese Twist, Butter Croissant, which can be enjoyed with a berry preserve and Strawberry Lattice.

Limited Time Offerings

We launched innovative limited time offerings inspired by local flavours like Thandai Spice Latte and Thandai Spice Frappuccino®, White Mocha Coconut Barfi Latte, White Mocha Coconut Barfi Frappuccino®, Mango on the Beach Frappuccino® among others.

Exclusive blends

Starbucks launched 3 limited edition coffee blends as follows:

  • The Starbucks Anniversary Blend to celebrate the brand's 50th anniversary
  • The iconic Diwali Blend that pays tribute to the rich coffee-growing heritage of the country
  • The fan favourite, Starbucks Christmas Blend marking the festive season and spirit of warmth and celebration

BRAND INITIATIVES

Reusable Cup Day

Celebrating 50 years of coffee and connections globally, the brand gifted customers a limited-edition reusable cup on purchase of any handcrafted beverage. Coinciding with Gandhi Jayanti, this initiative was aligned with the brand’s sustainability agenda, by encouraging customers to shift away from single-use cups and promoting reusability.

Partner-forward initiatives

As part of our commitment to partner care we introduced a number of initiatives to support our partners . We launched the Covid-19 assistance programme to offer medical and monetary help during the pandemic. YourDost was another initiative aimed at providing access to counselling sessions with mental health experts. We introduced the Menstrual Hygiene Programme to make menstrual health products more accessible for our partners. We also launched the Higher Education programme for our partners and supported our communities by collaborating with nonprofit organisations, Educate Girls and VIDYA India, to improve girls’ education in rural areas.

Celebrating 50 years of Starbucks

The brand celebrated the Starbucks Coffee festival with special offers across retail coffees, followed by celebrations involving recognition of strides in sustainability and focus on communities as well the connect shared between customers and baristas.

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