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Mumbai-based Amar Tea, which makes the Society brand, has a market share of 40 per cent, and is ahead of FMCG stalwarts such as HUL and Tata Global Beverages in Maharashtra.
Tea cafesThe family-run company, which is more than 100 years old, is now setting up cafes under ‘Tea Terminal’ as it believes it has a hold on the tea market in the State.
Another regional brand, Wagh Bakri, a market leader in Gujarat, with a 45 per cent share, claims its distribution is more robust than HUL in the State.
It is also building its tea brand on the back of its 15 cafes, something which the national brands have been unable to do.
“We have been market leaders in Gujarat for more than a decade, and my job is to make sure we can sustain these shares. Today our teas have better quality and price points compared to HUL, which still has weak distribution in Gujarat,” says Parag Desai, Executive Director, Wagh Bakri Group.
The ₹1,100-crore tea company has pitted each of its brands against HUL’s products.
For instance, in the premium segment, it has its own Good Morning competing against HUL’s Yellow Label and Taj Mahal, while in the popular segment, it has Mili teas pitted against HUL’s Red Label.
“We have made sure that we have brands to compete in every tea segment against HUL and Tata Global Beverages. With our reach across 45,000 outlets, we are by far the market leader in the State,” said Desai.
The 25-year-old Society Tea brand, from the ₹500 crore Amar Tea, is also betting big on its extensive reach in the general trade to beat the national leaders.
Karan Shah, Director, Society Tea said: “We are now looking at our Society brand of teas like a start-up and will be giving the MNCs a run for their money with our one-minute teas and other FMCG products. Today our shares of Society tea is ahead of HUL’s Red Label and Tata Global’s brand’s in the general trade in Maharashtra.”
According to Jagdeep Kapoor, Managing Director, Samsika Marketing Consultants: “Regional brands are in a position to grow vertically as they understand the taste of the region better than the national brands. In the F&B space, it is regional products such as tea, spices and to some extent even cigarettes that tend to dominate with their brands more than the national players.”
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