Tata Global Beverages eyes acquisitions in the US and Russia
Tata Global Beverages, the world's second-largest tea company, is looking to buy tea companies and brands in Russia and the US in order to strengthen its presence in two of the world's largest tea markets. After selling its stake in Glacéau, maker of VitaminWater, Tata has deep pockets worth approximately $200 million, according to company's vice-chairman. The goal is to become a global leader in branded healthy beverages through innovation, strategic acquisitions and organic growth. Russian and US markets are particularly appealing because of their size and growth potential. In 2010, the Russian market was worth $3.7 billion, whereas the US market recorded sales of $6.5 billion in 2011 and growth of 22% in the last 5 years. However, experts caution that Tata may lack the expertise and insight to take on rivals like Unilever, Danone and Nestlé.