Comments
Srilanka’s Basilur was the chosen tea brand to be served at the VVIP enclosure at Wankhede stadium during the IPL matches recently. International tea brands may not be making money, but that is not stopping them from appointing more distributors to make inroads in India.
From Sri Lankan brands such as Basilur and Dilmah to UK’s Twinings, the international premium tea segment may be miniscule, but is slowly gaining acceptance with Indian consumers.
“The free trade agreement between India and Sri Lanka has helped more tea brands from the island country enter India. We are not chasing business and are not in a hurry to get profitable as we expect discerning consumers to find us,” says Raghav Gupta, Director SVA India, the distributor of Sri Lankan brands such as Basilur, Tipson and Wazar.
Even in Sri Lanka, Basilur is a premium tea brand available mostly at duty-free shops.
However, another Sri Lankan brand Dilmah is ready to try its luck once again in the Indian market having changed distributors several times. It is now present through institutional channels rather than on retail shelves.
“When we originally launched Dilmah tea in India, Indian consumers were not exposed to quality Ceylon tea or to international tea brands. As a tea growing country, India also had to be protected from imports,” says Merrill J. Fernando, Founder and Chairman, Dilmah.
In fact, Dilmah had originally entered India by appointing Dabur as distributor. “Dabur was an excellent distributor for Dilmah, however, given the high cost of Dilmah Single Origin Pure Ceylon tea, they were unable to generate sales while securing distribution. We are now concentrating on top-end institutional trade now, where tea quality is respected and much in demand,” added Fernando.
Recently, Dilmah has set up its first t-Bar in India at Radisson Blu in Hyderabad. It intends having more such bars by the year-end.
Meanwhile UK’s Twinings Tea is getting a new lease of life in India, with the help of its new distribution partner - Suntory Narang. Reaching out to 100 top hotels and quick service restaurants with the help of its partner, the brand expects to reach out to a new segment with its premium teas.
“Suntory Narang will help in reaching out to 50 cities from the 8 top cities in the past,” said Ian Gowlett, MD, Twinings India.
purvita@thehindu.co.in
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.