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article imageStarbucks start-up falters in India

By Tim Sandle     Jun 22, 2015 in Business
Mumbai - Tata Starbucks, a subsidiary of the U.S. coffee company, has not had the best of starts. Several products have been taken off the menu due to the product not meeting the specifications required by Indian authorities.
Tata Starbucks has, according to the Faculty for Food Safety and Quality of India, suspended the use of certain ingredients based on advice from the Indian food regulator Food Safety and Standards Authority of India (FSSAI). No details of the actual ingredients that fell under question have been provided.
Tata Starbucks is a collaborative effort between the Indian based company Tata Global Beverages Ltd and the Starbucks Coffee Company. The outlets are branded Starbucks "A Tata Alliance." As well as traditional Starbucks coffee and pastries, the stores offer food orientated towards the Indian customer base. This includes Tandoori Paneer Roll, Elaichi Mawa Croissant and Murg Tikka Panini.
Tata Starbucks has been told by the FSSAI that it must use food ingredients approved by the Indian government. This is to avoid food stuffs that do not meet specific tests required by the FSSAI. Without the ingredients being given, it is difficult to interpret what the FSSAI is implying.
The coffee company has responded to the issue with a statement, quoted by The Hindu newspaper. Here the company pledges to get back to business: “These actions ensure that we are able to continue delivering the unique Starbucks Experience to our customers without disruption.”
Tata Starbucks said it infers that the ingredients under question have met the safety standard in most other countries. The CEO Avani Davda is quoted as saying: “It is important for me to emphasize that all of the imported globally standardized ingredients we serve in India, including those we are suspending, are safe and meet the safety standards in over 65 countries where Starbucks operates." The head executive added: "All of these imported ingredients received the then applicable product testing and safety authorizations when they were imported into India.”
Tata Starbucks currently operates 72 outlets across India. The highest numbers are found in Mumbai, to meet the requirements of India’s growing middle class. There are around 1000 employees.
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