Two decades after it acquired the food services business in the US, Tata Consumer Products has decided to exit the venture. Tata Consumer inherited the business through the acquisition of Tetley Tea in 2000.

The food services business includes a tea factory in Georgia and a distribution unit engaged in the sale of tea and coffee products to supermarkets, ‘dollar’ and military stores in the US. Tata Consumer will be selling its share in the business to long-time partner Harris Tea.

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The Indian company is exiting the US food services business as this no longer fits its current strategy of focusing on branded portfolios in the international market. The tea factory is housed under Southern Tea and the distribution business is under Empirical.

“Other than the strategic advantage to Tata Consumer from exiting the food services business, there are no other benefits to the company’s promoter from the said transaction,” it said in a regulatory filing.

Once the transaction is completed, Southern Tea will continue to manufacture for Tetley and Good Earth brands, Tata Consumer said. The Indian company had acquired the Good Earth tea brand in October 2005.

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