As reported by Yahoo Finance, Tata Consumer is set to sell Map Coffee to Australia based Buccheri Group. Earth Rules, functioning under Tata as its parent organization, will get a total consideration of AUD 1.25 million (Rs 6.74 crore) in tranches by 28 February 2021, as per terms of the asset sale and purchase agreement dated 5 December 2020. The sale is expected to conclude by 7 December 2021.The transaction is a slump sale of assets by an overseas step-down subsidiary, where the business assets of such subsidiary is being sold along with the contracts, assets and brands for a consolidated consideration to be received in cash.
Buccheri Group is involved in coffee manufacturing. Based in Melbourne, Australia and founded in 2006, the brand is recognised as ‘Antico slow roasted coffee’. According to the website, it introduces itself as ‘We are passionate coffee roasters who believe in supplying a genuine ‘home-style’ coffee product – one that is noticeably different – an exclusive product.’
Map Coffee entered the Tata Consumer Products family in 2014. Map Coffee was founded back in 2002 and supplied Australian cafés, restaurants and bars with a range of Italian and locally roasted coffee. It then further branched into servicing the coffee needs of business offices across Australia, and, in 2009, moved into capsule machines and capsules outside the Grocery channel, followed by entry into the Grocery channel in 2014.
Tata Consumer Products is a food and beverages (F&B) focused consumer products company. The company offers a range of products including tea, coffee, water, salt, pulses, spices, and ready-to-cook offerings. Shares of Tata Consumer Products rose 2.47% to Rs 563.80 on Friday. The stock has surged 163.45% from its 52-week low of Rs 214 hit on 24 March 2020.