Tata Consumer Products Limited (TCPL) on Thursday said its step-down subsidiaries in the US are divesting their entire stakes in Empirical Group LLC and Southern Tea LLC to their joint venture partner Harris Tea Company. The move will help TCPL focus on its core branded business in overseas markets.
Empirical sells white label tea and coffee in the foodservice channel as well as to contract customers. Southern Tea works as a supplier to Harris Tea and TCPL that sells tea brands such as Tetley and Good Earth brands. Tata Consumer Products is the second-largest branded tea company in the world.
Following the transaction, Southern Tea will continue to manufacture for Tetley and Good Earth tea brands.
“This move is in line with TCPL’s focus on its core branded businesses in international markets. It will help further simplify and streamline the company’s operations to enhance business effectiveness and profitability,” Tata Consumer said in a statement Thursday.
Tata Consumer Products Limited sells a range of foods and beverages in India as well as markets overseas such as the UK and US. It sells packaged tea, coffee, water, salt, pulses, spices, ready-to-cook offerings, breakfast cereals, snacks etc under brands such as Tata Tea, Tetley, Eight O’Clock Coffee, Tata Salt, Tata Sampann and Soulfull.
“This divestment is another step towards consolidating and strengthening our presence in international markets and will enhance our focus on the branded tea and coffee businesses in the US market,” said Sunil D’Souza, MD & CEO, Tata Consumer Products.
