SOUTH AFRICA – Tata Consumer Products Overseas Holding Ltd, a step-down wholly owned subsidiary of Tata Consumer Products UK Group has acquired an additional 23.3% stake in South Africa-based Joekels Tea Packers for ₹43.65 crore (US$5.28m).
The acquisition cost for Tata Consumer Products UK Group Limited will be with the adjustment amount that will be payable later on the conditions mentioned as per the transaction agreements.
Joekels Tea Packers is a subsidiary of Tata Consumer Products, packing 95% of South Africa’s Private Label teas, including Tetley and the leading kids’ tea brand Tea4Kidz, as a healthy alternative to sugary drinks.
According to Tata Consumer Products, over 25 years since the founding of the company by Joe Swart and Jonathan Kelsey, Joekels offers seven renowned brands, has won a host of awards, and Laager Rooibos is now the second largest Rooibos (red tea/redbush tea) brand in the world.
Under Joekels, Tetley also has made inroads in South Africa, with Tetley Green tea becoming the leading Green tea in the local market just six months into its launch in 2017. The company has five factories in the country, according to its website.
As a result of the acquisition, the “holding of TCP Overseas in Joekels will increase from 51.7 percent to 75 percent” of the equity share capital. The remaining 25 percent stake is held by the joint venture partners, the regulatory filing added.
The acquisition comes at a time when the South African tea market is projected to grow by 11.8% (CAGR 2022-2026), by Research and Markets.
The consumption and preparation of tea in the country, in non-traditional ways, is becoming increasingly popular amongst consumers looking to spice up their tea experiences.
Consumers are increasingly inventing novel ways of combining tea with other beverages and foods, to create new experiences and flavors, and even enhance the inherent benefits provided by tea.
In addition, a variety of new and innovative ways of consuming tea are emerging, as part of attempts to capture the attention, and imagination, of consumers.
In particular, tea cocktails are becoming increasingly popular even in the global arena, providing a range of tea-based non-alcoholic beverages, such as the 100×100 Arabica Tea and Tea shop in Spain, offering mojito Green Team, spritz red fruit, and gin and Tea, amongst other interesting combinations.