Multinationals losing out in the tea category in India ?

 In the packet tea business there have been shifts in the taste and preferences of customers .

Much has been decided by first movers like Vikram Tea , Society and Wagh Bakri . 

The early movers like Brooke Bond , Lipton , Goodricke could easily be falling behind due to lack of creativity at their end on blend formulations . 

The above companies have been focused on margins , incurring large spends on advertising , have been tight on trade margins and have been surviving with psychographic play on customers . 

Gujarat based players have created an ownership of taste , used blends with Upper Assam Teas and have stayed close to retailers to build a close contact with trade , depending less on distributors and superstockists . Their customer contact and feedback has been exemplary and on many occasions have visited customers at their residence to understand their preferences . 

While most businesses have to fund on their own , the Gujarat players have focused on spending their budgets on good teas , keeping the MRP competitive and squeezing trade margins . 

In the Darjeeling category while Green Label has been generic , the twins Makaibari and Lopchu have controlled and owned the taste and often sacrificed garden areas to let natural vegetation grow . These floral attributes have added to the uniqueness of their tea tastes and fetched them handsome margins . 

The Multinationals over time have developed professional distribution networks ,but over time would fade out due to relatively poor product and advertising to cover for it or free gifts /promotions .



Comments

Post a Comment

Popular posts from this blog

THREE TEAS TO HELP EASE YOU INTO COLD WEATHER

GUNPOWDER Gunpowder  green tea could be one of the most underrated teas on our site. Named for its gunpowder-like smell and appearance, this  green tea  has a slightly smoky flavor. You can enjoy this tea as is, or you can try it with mint in our  Moroccan Mint  blend. Inspired by a traditional Moroccan tea service, this tea’s blend of mint flavors will perk you up on the gloomiest of fall days. No matter how you enjoy your Gunpowder, you’ll be delightfully surprised by how this green tea veers from traditional green tea. WHITE WINTER CHAI So the name includes the word “Winter,” but that doesn’t mean it can’t be an amazing Fall tea, too!  Tali’s Masala Chai  and  Pumpkin Spice Chai  are obvious tea choices for the season, but for a mellower and cozier take on chai,  White Winter Chai  is an awesome choice. White Winter Chai features many of the same spices found in a classic chai drink, but with a white tea base. The white tea isn’t too overpowering, giving the spices room to s
Read more

Ready to Drink (RTD) Tea And Coffee Market Analysis

Industry Insights The global ready to drink (RTD) tea and coffee market size was USD 71.43 billion in 2015 and the is expected to increase exponentially on account of health benefits provided by these drinks. These drinks are being touted as a healthy replacement for carbonated drinks which are associated with numerous health hazards including obesity and hypertension. Improving health awareness coupled with rising disposable income is expected to boost demand for these products. The demand for these drinks is high among the millennials who are on the lookout for instant energy drinks. Manufacturers have now started formulating RTD drinks with nutraceutical ingredients to enhance the nutritive value provided by these drinks. The rising demand for on the go drinks is expected to boost the demand for these products. The major factor affecting the industry is the prices of tea and coffee. The untimely rains and rise in agricultural input costs have resulted in an incre
Read more

Grades of Tea

Image
http://www.chaiology.in/grades-of-tea/ In the tea industry, tea leaf grading is the process of evaluating products based on the quality and condition of the tea leaves themselves. The highest grades are referred to as “orange pekoe”, and the lowest as “fannings” or “dust”. Pekoe tea grades are classified into various qualities, each determined by how many of the adjacent young leaves (two, one, or none) were picked along with the leaf buds. Top-quality pekoe grades consist of only the leaf buds, which are picked using the balls of the fingertips. Fingernails and mechanical tools are not used to avoid bruising. When crushed to make bagged teas, the tea is referred to as “broken”, as in “broken orange pekoe” (BOP). These lower grades include fannings and dust, which are tiny remnants created in the sorting and crushing processes. Orange pekoe is referred to as “OP”. The grading scheme also contains categories higher than OP, which are determined primarily by leaf wh
Read more