Tata Starbucks to use only fully compostable/recyclable items from next World Environment Day: CEO

Tata Starbucks, the equal joint venture between the Tatas and global coffee chain Starbucks, is all set to fully transition itself to use only compostable and recyclable packaging solutions across its stores in the country from next June.

The company Thursday said it hopes to achieve the objective by the next World Environment Day, June 5.

The company since its entry in October 2012 operates 138 stores across Mumbai, Delhi-NCR, Hyderabad, Chennai, Bengaluru, Chandigarh, Pune and Kolkata.

"By the World Environment Day, we will lead the industry in using 100 percent sustainable, compostable, recyclable packaging materials," the newly appointed Tata Starbucks chief executive Navin Gurnaney told PTI.

He was quick to add since day one of its operations here, the coffee chain has been using only those glasses, bags and napkins made from recyclable fibre.

Gurnaney, who took over as the chief executive last month, said the move would prevent 23 million cups, 17 million straws, 27 million lids and 4 million cutlery sets from ending up at landfills in a year.

The premium coffee chain aims to close the financial year at 144 stores. In 2015 it had opened 10 new stores, in 2016 it added 16 more, the next year addded another 25 and in 2018 it opened 30 more stores, he said.

Stating that they will be "thoughtfully aggressive" in its store roll-out he said "we are constantly evaluating opportunities within the metros where we have already established markets but also new cities."

He said India is one of the top five markets for Starbucks globally and the fastest growing market among the emerging economies. "We are very bullish here," and are on track to achieve our target to breakeven by FY20.

The company reportedly had posted a net loss of Rs 30.5 crore in FY18.

According to a Kotak Securities report, revenue grew by 28 percent in FY18 to Rs 342 crore compared to 14 percent in FY17, thanks to higher number of stores and higher sales per store. The same store sales growth was estimated to be 18 -20 percent.

Tata Global Beverages in its annual report for FY18 said Tata Starbucks improved sales by 28 percent with robust in-store performance and new stores added during the year. It had posted Rs 272 crore in sales in FY17.

Food contributes 23-25 percent of total sales at its stores on average

Source:-https://retail.economictimes.indiatimes.com/news/food-entertainment/food-services/tata-starbucks-to-use-only-fully-compostable/recyclable-items-from-next-world-environment-day-ceo/68098805