Indian Coffee for Starbucks

You could soon be sipping a cup of hot brew of Indian Coffee, at Starbucks. Thanks to an agreement between Starbucks and Tata Coffee, India will supply coffee to the World, again.

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The Starbucks deal with Tata Coffee "is yet another significant milestone to show how Indian coffee is gaining acceptance in the international market," Tata Coffee Ltd. managing director Hamid Ashraff said in a statement.

Tata Coffee is Asia's largest coffee plantation company, producing 10 million kilograms of coffee each year from plantations spread across the hilly districts of Coorg, Chickmagalur and Hassan in India's Karnataka state.

Despite its seemingly ubiquitous presence, Starbucks only buys about two per cent of the world's coffee. But the company is a far bigger buyer of high-quality coffee, and that is harder to come by.

To satisfy its brisk growth rate, the company is willing to pay a premium price. In some cases, it has even begun working with coffee growers to help them meet its standards.

Starbucks currently has about 8,500 stores around the globe, including about 6,100 in the United States. The company is planning to more than triple the number of its worldwide outlets to 30,000, with half of those in the United States, company officials said this month.

Starbucks also plans to set up outlets in India. The company has decided against expanding rapidly into many new countries and is trying to focus on a few where it sees a lot of potential, including India, it said.