OREANDA-NEWS. August 11, 2011. Tata Global Beverages announced its results for the quarter ended June 30, 2011, this afternoon.

The company continues its volume leadership in India. The revamped marketing mix for the portfolio of India-based brands, led by the Tata Tea Premium and Tata Tea Gold campaigns, has driven double-digit top-line growth. Segment-specific campaigns in the UK for Redbush help consolidate market leadership in the Redbush category, while the Tetley Tea Folk campaign improves brand health measures for Tetley in the UK. Canada leads speciality tea innovation and category development and continues to hold black tea and speciality overall market shares.

During the quarter, an overseas subsidiary increased its stake in The Rising Beverage Company, the owner of ActivateTM, a performance beverage in the USA. The subsidiary has an option to further increase its stake in this company.

The company’s consolidated total operating income for the quarter was Rs1,467 crore, reflecting a growth of 6 per cent as compared to the corresponding period of the previous year. The group consolidated net profit for the quarter at Rs161 crore is significantly higher than the corresponding period of the prior year mainly due to the impact of exceptional items and lower interest costs which is partially offsetting the impact of commodity cost increases and expenditure on growth initiatives.

In the stand-alone Tata Global Beverages results for the quarter, the total operating income at Rs519 crore, an increase of 14 per cent, is driven by higher volumes and improved realisation in branded tea operations. Profit after tax at Rs164 crore is significantly higher than the corresponding period of the prior year mainly due to the impact of exceptional income, lower interest costs and improved operating performance despite the increase in commodity costs.

Percy Siganporia, MD, Tata Global Beverages, commented, “The business put in a strong performance this quarter despite rising commodity costs, intense competitive activity and a challenging trading environment. We will continue to invest behind our brands while we focus on category development. Strong organic growth together with strategic alliances will help us achieve our vision of being a leader in ‘good for you’ beverages.”