Comments
Society Tea expects to almost double the share of value-added and specialty teas to its total sales in the next one-to-two years backed by the launch of more products in the category and an expanding footprint into newer geographies.
According to Karan Shah, Director, Society Tea, the share of value-added and specialty tea, which is close to 10-12 per cent at present, is expected to increase to close to 20-22 per cent in the next two years.
“Consumer trend points towards an increasing health consciousness and the buying pattern indicates an increased demand for value added products,” Shah told BusinessLine .
Two products
The company recently introduced two products — Society Cleanse Green Tea and Society Skimmed Milk Powder. While the Cleanse brand is aimed at accelerating metabolism and building immunity the skimmed milk powder is 99 per cent fat-free, rich in proteins and minerals, having a low-calorie count. So both the products have a clear focus on the health and wellness segment.
Society Tea has also entered into a new category aimed at reviving the art of chutneys and pickles.
“We have planned a couple of launches in the value added segment with a clear focus on health and nutrition. We have also seen an excellent demand for our dairy products and we are looking to ramp up the category,” he said.
Also read: Planters voice concern over lower budgetary allocation to Commodity Boards
Shah said the company is also exploring the possibility of rolling out neutraceuticals, snacks and other products, which would suit its present distribution network.
The company has presence in over 45,000 outlets in Maharashtra.
Expanding footprint
While Society Tea will strengthen its presence in some of its existing markets; it will also look at entering into newer markets in 2021-22.
Society Tea holds close to 40 per cent market share in the packaged tea category in Mumbai and has a sizeable presence in other States such as Goa, Andhra Pradesh, Madhya Pradesh, Karnataka, Punjab, Rajasthan and Delhi.
“We will look at Maharashtra even more seriously and strengthen our presence. We also have plans for expanding our presence in other markets during FY-22,” he said.
The company also expects a good traction from online sales. It has been witnessing a good demand from smaller towns and cities and registering higher sales both on e-commerce portal and its own website.
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.