News

Starbucks slowly drips into India

September 10, 2012

Starbucks is slowly but surely taking on India after eyeing the market for years, according to the business.inquirer. The primarily tea-drinking nation has recently been more interested in coffee, a trend that has sparked Starbucks to invest $78 million there. The company initially planned to open 100 units in 2007, but ended up delaying those plans.

"Coffee has changed from being a traditional beverage, consumed mainly in south India, to a mainstream beverage with a national presence," Starbucks' China and Asia-Pacific president John Culver, said in the story. "Given the size of the Indian economy, the growth of cafe culture and the rising spending power, India will be a very large market over the long term.

The nation's annual per capita coffee consumption of 82 grams (three ounces) is below that of 6.79 kilograms (15 pounds) in Germany and 5.87 kg in Brazil, according to data from the International Coffee Organization, but younger Indians are embracing it along with other Western behaviors.

Starbucks in India will serve the chain's traditional offerings but will also sell "locally relevant flavors."

Read more about growth.