OREANDA-NEWS. May 25, 2011. Tata Global Beverages Ltd. announced its results for the year ended March 31, 2011 this afternoon.

Even as investment behind new product propositions in the ‘good for you’ beverage space occurred, in India the company maintained its volume leadership. A major highlight was the restage of Tata Tea Premium with a fresh proposition. The ‘Jaago Re’ campaign with jaagore.com evolves to become an online conversation and activity hub for driving social issues. In the UK the iconic Tetley 'Tea Folk' returned to champion the brand after a decade's absence, attracting significant interest from consumers and the media. In Canada we continue to be the market leaders by volume and value. Brand affinity was enhanced through the repositioning of the Tetley Herbal range which emphasised a colour and tea for every mood.

The Company’s Consolidated total operating income for the year was Rs. 6005 crores. At constant exchange rates, there would have been a growth of 6% as compared to the previous year. The Company has increased investment behind new product and existing brands. This increased investment, the impact of higher commodity costs with lower interest earning resulted in lower Profit before and after Tax compared to the previous year.

In the stand alone Tata Global Beverages Ltd results for the year, the total operating income at Rs 1811 crores, an increase of 6% is driven by higher volumes and improved realisation in branded tea operations. Hardening commodity cost, lower dividend income from subsidiary companies was partially offset by lower interest cost. With investment in ‘good for you’ beverages, Profit before exceptional items at Rs 207 crores is lower compared to the previous year. The Profit before Tax at Rs 230 crores and the Profit after Tax at Rs 181 crores are lower compared to the previous year mainly due to the effect of exceptional items.

Percy Siganporia, MD, Tata Global Beverages Limited commented “The business put in a good performance, despite intense cost pressure from commodities and a challenging trading environment. Where possible we took price increases to sustain margins, continuing to invest behind our brands and so protect share and the long term health of our brands. The investment we made in our brands and new products allowed us to remain relevant and engaging to consumers, particularly through exciting advertising campaigns and new variants. Our alliances with Pepsi-Co and Rising Beverages have generated further momentum behind our vision to be a leader in good-for-beverages.”