This story was originally published by PTI News, and republished by The Probe as part of the Shakti Collective
Multiple social media users recently claimed that Starbucks, the international coffeehouse chain, was about to exit the Indian market. However, the PTI
Fact Check Desk, in its investigation, found the claim to be fake.
The claim originated from reports suggesting that the company was planning to exit the Indian market amid high operating costs and low profitability in the country. Starbucks entered India in 2012 through a partnership with Tata Consumer Products.
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Claim
A Facebook page shared on December 19 a post claiming that Starbucks was about to exit the Indian market. The caption of the post read: “Starbucks to Exit India”.
Here is the link and archive link to the post. Below is a screenshot of the same.
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An X (formerly Twitter) user had also shared a post on December 19, along with the screenshot of an article published by ‘The Philox’.
The caption of the post as well as the headline of the purported article read, “Starbucks to exit India due to high costs, bad taste, and mounting losses”.
Here is the link and archive link to the post, and below is a screenshot of the same:
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Investigation
The Desk conducted a customised keyword search on Google and found the article published in The Philox. After a thorough read, the news piece did not consist of quotes or official statements neither from Starbucks nor from TATA Consumer Products.
Here is the link and below is the screenshot of the same.
/theprobe/media/media_files/2024/12/21/QHD9MWaiqz8XiLzXaXDt.png)
Taking cue from this, the Desk conducted a customised keyword search on Google and came across a report by Hindustan Times, which quoted Tata Consumer Products refuting the claim.
The headline read: “Starbucks is not exiting India: Tata Consumer denies ‘baseless’ report of coffee chain quitting country”.
Here is the link to the report and below is a screenshot of the same:
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“Starbucks is fully committed to the Indian market. Any statements suggesting otherwise are false. TATA Starbucks currently operates more than 470 stores in 76 cities across India, which continues to be a key growth market for Starbucks globally,” said Starbucks as quoted by Hindstan Times in the report.
The report further quoted TCPL denying the possibility of exiting India in a letter titled “Clarification on News Article Titled - Starbucks to Exit India Due to High Costs, Bad Taste, and Mounting Losses.”
In the next part of the investigation, we went through National Stock Exchange’s (NSE) website and found the press statement released on December 19, 2024.
Here is the link to NSE’s website.
The statement read: ‘The Company would like to state that the information in the said article is baseless’.
Here is the link and below is the screenshot.
/theprobe/media/media_files/2024/12/21/w1w1eyGLR42OGkqKJbQS.png)
Subsequently, the Desk concluded that Starbucks was not quitting the Indian market.
CLAIM
Starbucks to quit Indian market.
FACT
Both Tata Consumer Products and Starbucks refuted the claim as ‘baseless’.
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