Tata to jostle against HUL in green tea market

Tata Global Beverages Ltd (TGBL) is planning to jostle against Hindustan Unilever’s in green tea segment, reports Hindu Business Line.

The company recently launched green tea under its Tata Tea brand with smaller packs to compete Lipton brand by HUL.

 While Tata Tea has priced a pack of 5 tea bags at Rs 20, Lipton’s pack of 10 tea bags is priced at Rs 55.

TGBL also has green tea in the premium segment under Tetley brand. The brand is also planning to enter into e-commerce platform to promote its product.

“The idea was to offer green tea at a better price point to consumers in smaller towns. Till now green tea was perceived as a premium product with a few players such as Twinnings, Typhoo and Tetley in fray” said, Ajoy Misra, Managing Director, TGBL.

The company feels that there is lot of growth in the tea segment and is growing at a very fast pace. “We are planning to expand this portfolio and launch more flavours in the coming months. We expect about 10 per cent of the total sales in the tea segment to come from green tea in the next few years and establish a leadership position in the market not only in India but also globally”, he added.

 At present, green tea contributes to 3-4 per cent of the overall sales for Tata, while tea contributes to about 70 per cent and coffee about 20 per cent. About 10 per cent sales come from water.