Tata Global Beverages, the world’s leading branded tea maker, has acquired a minority stake in the US-based beverage and bottled water firm – Activate. Signalling its re-entry into the vitamin water space, Tata Global Beverages along with beverage investor James Berkeley, key strategic beverage distributors and existing investors, including The Tornante Company and the Eisner family, will invest $20 million in Activate, which will use the funds to expand into new geographical markets
The acquisition is in line with the company’s plan to become a leader in the health and wellness beverages space as tea consumption is declining globally, with newer categories, such as energy drinks and enhanced water, emerging as future growth drivers. According to industry reports, the traditional tea market, which has been witnessing a stagnant growth over the last few years, has not been performing wonders for the company. “The traditional tea business has been witnessing stagnant growth for the company over the last three years. Further, the commodity nature of the tea business is also impacting the financials of the company,” an analyst from a foreign brokerage house was quoted as saying.
“This investment is the latest piece in our strategic journey to reach consumers in different ways and to help deliver sustainable hydration across the world. We have ambitious growth plans and a vision to become the leader in the ‘good for you’ beverage segment,” says Peter Unsworth, Group CEO, Tata Global Beverages.
Posted on: 3.11.2010
Source: www.economictimes.com
