TATA TEA

1) It is specialty teas, which make up 15 per cent of this 70 per cent pie, that the company has
sets its eye on.
2) Specialty teas include green and herbal teas.
3) Tata Global Beverages, according to people who know of the company's plans, is looking at
increasing its contribution from specialty teas to 30 per cent over the next few years. This
comes as preference for green tea grows in India and across the world. According to
experts, green tea constitutes 5 per cent (or Rs 550 crore) of the overall 800 million-kg tea
market in India that is worth Rs 11,000 crore. It is estimated that green tea will touch 20 per
cent in the next few years.
4) Tata Global Beverages already has a portfolio of six variants under the Tetley brand name
within its green tea portfolio in India, commanding a market share of 27 per cent. The
company proposes to take this number up in the coming days by introducing new flavours to
spice up its offering.
5) Similarly, in markets such as the UK and Canada, the company has been aggressively
pushing its green tea range. It has market leadership in green teas in Canada and is number
two after Twinings in the same category in the UK.
6) Tata currently has around 22 per cent market share in the packet tea market, which
constitutes 50 per cent of the overall 1,200-million-kg Indian tea market. The second largest
tea company in the world derives nearly 70 per cent of its revenues from tea and has a
nation-wide presence.
7) Industry insiders estimate that the share of regional brands has increased from about 29-30
per cent in the mid-2000s to over 40 per cent now.
8) As Arvind H Shah, president of the Gujarat Tea Traders Association, explained, "The taste
and flavour of tea depends on water and milk, which have regional variations. Local players
can easily create blends that cater to local tastes.".
9) Tata Global Beverages has recently re-launched its Kanan Devan brand (which sources tea
leaves from the Kanan Devan hills in Munnar), and aims to raise its market share in the
state. HUL has RedLabel and Taaza which are aimed at mass segments.
10) Loose tea 80% in rural & packaged tea 80% in urban
11) With near-complete market penetration, black tea is saturating. The total branded tea
market is about Rs 9,500 crore, growing at about 5 per cent. But the branded green tea
market, in contrast, is at about Rs 150 crore, growing faster at 21 per cent.
12) Our key activities are centered on making consumers aware of the category, clearly
communicating the benefits and driving trials through sampling," says Krishnan Sundaram,
category head, tea, HUL.
13) Green tea consumers are experimenting so they require the entire range to choose.
14) For green tea focus on tea bags and institutional buyers like airlines and raliways.
15) TATA can focus on its own institutional buyers TAJ group, TajSATS, etc.
16)