Speaking at the announcement of the Tata Tea results, Ken Pringle, executive vice-president and chief operating officer, Tetley, said as part of its growth strategy, the company would be looking at entering more markets internationally.
He added that the company would also focus on the ready-to-drink category where, at present, it has only a negligible presence.
Increasing the global distribution network is key to the company. The new markets the company targets includes Germany, Egypt and Iran, he said.
The acquisition of the Good Earth tea brand in the US earlier this month would be a platform for growing the speciality teas business as well as the health and wellness tea market. Good Earth, growing at 25 per cent, is one of the fastest growing brands there.
Tetley had also showcased Cosmic, a vending machine, at a trade show in London. The response to the product has prompted the company to develop it further. "We will be beginning the market trials for soon," said Pringle.
"In India, the Tata Tea brand has seen a 10 per cent growth in volumes and 15 per cent growth in value," said Percy Siganporia, managing director, Tata Tea.
This he attributed to two factors: the increase in the market for Tata Tea Gold as a result of increased consumer promotions and regional brand Kanan Devan doing well in Kerala.
The economy brand Tata Tea Agni too has shown grown in the leaf tea market which comprises 61 per cent of the total tea market in the country.
Commenting on the two recent take overs by Indian companies in the tea market, he said it could be attributed to the ease of being able to do so. The fear that the plantation business is declining has also prompted to focus on brands and to look at other alternatives.
Brewing Success
- Looking to expand its global distribution network
- Plans to foray into Germany, Iran and Egypt
- Will focus more on the ready-to-drink segment, where its presence is negligible
