The Hindu Business Line : Tata Tea to bring in new formats for Tetley

Drawing from its global expertise, Tata Tea is studying the tea bag market with intentions of bringing in new formats for Tetley in the country. Speaking to Business Line, Ms Sangeeta Talwar, Executive Director- Marketing, Tata Tea, said, "There is R&D and innovations in tea bags which can be applied in India.''

There are a host of innovative technologies such as semi-transparent, eco-friendly and pyramid shaped tea bags, which could have chance of being tried in the Indian market.

With intentions of adding `mystique' to the segment, Tata Tea is also considering bringing in infusions through its Tetley brand thereby creating value-added tea bag variants in the segment.

Pegging growth rates between 15 and 20 per cent in the tea bag segment, which currently comprises less than one per cent of the branded tea market, Tata Tea is tapping into the opportunities in this segment.

Adds Ms Talwar, "As we are always challenged to get a leadership position, Tata Tea is looking at opportunities in the tea bag segment. Tetley is the new face of Tata Tea and we would be bringing in the global strengths of Tetley into the Indian market. There could be infusions where floral aromas would be added to the tea bags.''

Tetley tea bags currently commands a 30 per cent value share in the segment while the leader with a 50 per cent share continues to be HLL's Taj Mahal brand. Taking the example of the UK market, which converted itself from a loose tea market two decades ago to a 95 per cent tea bag market, the tea company expects the same trend to get replicated in the Indian market over time.

Iced tea brand

Besides, there is also a possibility of bringing in an iced tea brand from the Tetley stable. Adds Ms Talwar, "We are considering bringing in ice tea in India but for that we would have to manufacture it locally since the import duties would be high.''

Betting on emerging consumer trends based on indulgence and wellness, Tata Tea has recently introduced a range of green teas under the Tetley brand. Besides, it has also moved up the value chain with its flagship brand of Tata Gold by launching a series of single origin leaf teas.

Taking up its prices by nearly 2 per cent due to the increase in input costs, Tata Tea expects to clock growth rates between 7 and 8 per cent next year, which is higher than the current 2-3 per cent growth rates witnessed by the tea industry.

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