Companies

Unilever to retain tea businesses in India, Indonesia

Our Bureau Mumbai | Updated on July 23, 2020 Published on July 23, 2020

Anglo-Dutch company Unilever on Thursday said that it will retain the tea businesses in India and Indonesia, almost six months after it announced a strategic review of its global tea business. Its tea business in other markets will be a separate entity, it said.

“In January, we announced a strategic review of the global tea business, which includes leading brands such as Lipton, Brooke Bond and PG Tips. This review has assessed a full range of options. We will retain the tea businesses in India and Indonesia, and the partnership interests in the ready-to-drink tea joint ventures,” Unilever said on Thursday when it announced its first half results for 2020. The tea business that will be separated generated overall revenues of €2 billion in 2019.

In India, HUL does not give out revenues earned from the tea business but industry estimates peg it at about 10 per cent of the total revenues. In the financial year 2020, HUL’s food and refreshment segment — under which tea is included — accounted for around 19 per cent of the company’s total revenues.

“Riding on the ‘In-home, wellness and immunity’ trends, Foods, Tea and Coffee delivered strong performance with double digit growths. Red Label extended its long-running ‘Taste of Togetherness’ campaign through a simple yet contemporary message of ‘We can be socially connected even while we are physically distant’,” HUL said in its June quarter result statement. Foods and refreshment revenue jumped 51.69 per cent year-on-year during the June quarter.

Ever since the pandemic broke out, the foods segment has been the main driver of growth for FMCG companies in India. Other popular tea brands in India include those from Tata Consumer Products and Wagh Bakri.

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Published on July 23, 2020
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