INDIA – Tata Consumer Products, the world’s second-largest manufacturer and distributor of tea and a major producer of coffee, has strengthened its strategy to grow its share in the green tea market, with the launch of a new tulsi-flavored green tea under the Tetley brand.
India is a largely tea-consuming country. However, green tea constitutes a very small segment, with only about 2% household penetration in metros and tier-1 cities.
This is why Tata Consumer believes it is a rapidly growing market and is putting a lot of focus on it, with its green tea category already having flavors like lemon and honey, ginger, mint, and mango.
Puneet Das, President, of packaged beverages, India & South Asia, TCPL said that the brand’s strategy is to differentiate and build relevance for the green tea category and grow the overall pie.
He added that “It’s not so much about market share. It is about expanding the pie of green tea.” Citing Nielsen data, Das said that the green tea market is pegged at about Rs 4,000 crore, however, 75 percent of the market is dominated by tea bags.
He highlighted that the company has three key players, Lipton, Tetley, and Organic, and as the category is small, there is a big headroom for growth.
As per the release, the product will be available across e-commerce channels and modern trade outlets pan India.
“But we also need to cater to general trade if we want to become a mass brand. So, we have launched the new Tetley green tea variant in top outlets in metros. And as months go by, we’ll keep expanding and adding more and more outlets,” Das said.
“Our idea is to be present wherever the green tea segment is so that consumers don’t have to choose between channels.”
Concerning super green teas also under the Tetley brand, Das noted that the tea brands have been growing faster than the category in the last year and gaining share.
Highlighting the reasons, he said since the pandemic, the relevance of health and wellness in food choices has increased, and the company too had launched a few brands in its existing tea portfolio.
The Super Green Teas are supported by European Food Standards Agency (EFSA) approved health claims, relating to supporting your immune system and helping reduce tiredness and fatigue.
The company says its Tetley green tea has 100% natural ingredients and is a great-tasting product considering that it has five times more antioxidants than fruits and vegetables.
During the September quarter, Tata Consumer’s India beverages revenue declined by 7%, while volumes were down 1% due to price corrections and category slowdown.
Although the overall beverages market witnessed some softness in the category till the September quarter due to inflationary pressures, especially in rural areas, Das said October saw increased stocking by retailers due to the festive period. Buoyancy was seen in the first 18 days of November.
“There are early glimpses of the category trying to come back, but we need a few more months to define the trend,” he commented.
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