Tata Tea is quenching its thirst for global size through acquiring companies around the globe. It is the UK-based company on its radar. A boutique family owned boutique company called Clipper Tea with a rich portfolio of organic tea, coffee, malt and chocolate drinks.
While the company is holding the cards close to its chest, sources say that talks have been on for sometime now and are close to finalisation. The deal size is estimated to be around $30-40 million and could be done through Tata Tea arm in UK, Tetley. Tata Tea''s thrust for beverage companies in not new. In fact Clipper is just one of the several companies it is looking at acquiring and sources say Unilever is also in the race to bag Clipper. But sources say what bother financial investors about Clipper Tea is that it is a fair trade company, which means Clipper products are priced in a way to receive a minimum price. That covers the cost of sustainable production and an extra premium that is invested in social or economic development projects. Price competition then has a direct impact on sales.
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