Mumbai / Kolkata: Procurement constraints and the price of Post Pandemic Spiral Tea has become a crisis that turns into an opportunity for packaged tea players.
When commodity prices simmer after locking, reaching a loose tea market and data shows that consumers are converted into packaging tea.
Great players with diverse portfolios are in a better position to absorb some of these external shocks to better manage product pricing.
Industrial sources said total total transfer (MAT) from the RS 20,000-Crore Tea market which was packaged in growth of around 19% in August 2021, more than the August 2020 mat.
Pre-Pandemi, growth of around 7% (2019 vs 2018).
Mat volume consumption at home, according to the Panal household panel, has grown by around 6% in August 2021 more than 2020 by opposing 2.3% pre-covid (2019 vs 2018), these sources said.
This has changed the dynamics of the market too.
Both Hindustan Unilever (Hul) and Tata consumer products (TCP) gain market share in value and volume, according to the data provided by industry sources.
However, Hul has obtained a leadership position in volume (22% on the August 2021 mat) and has strengthened its value leadership (25% on the August 2021 mat) too.
In line with TCP shares in volume of 21% and 22% in value for a certain period.
Hul VP (Tea & Food) Shiva Krishnamurthy said: “The packaged tea category has grown faster during a pandemic.
Our growth has been significantly in front of the market.
We have become a market leader in value for 3-4 years, and on volume, us Getting a newer leadership position.
The good thing is that postpartum, we have consolidated and strengthens our leadership and we have expanded the gap versus our closest competitor.
“TCP, which was formed in February 2020, began its transformation journey, including reshuffle and expansion of sales and distribution .
“Given this and deviations caused by a pandemic, the right way to understand our performance on the market is to compare market share value of February 2020 (Pre Pandemi & TCP formation) until August 2021.
We have developed our value market share by 270 basis points according to Nielsen And this has come behind building a brand as well as the fastest distribution growth, “TCP said.
On the other hand, witnessing a decrease in sales of around 30% compared to pre-covid levels, large loose tea retailers in India will be online, revealing more touch points owned or franchising, taking social media marketing and reaching customers through tele-calling, Facebook, WhatsApp and Instagram and offer tea with promotions and discounts.
Souvari Modan, Head of the Dhrubo Tea Operations, one of the best-selling tea counters in this country, believes that improving the quality and efficiency of business can only bring back around 10% of lost offline customers, who believe in trust factors.
“The remaining 15-20% will never come and stick to the easy online mode of the tea sent at home.
The lack of safe covid transportation is the main reason for this.
All distribution channels and labor situations for offline tea business have become Haywire , “said the modest.
According to the Major GOODRICKE plantation, which sells 14 million kg of tea every year loosely and packaged formats, uplift quality and exclusivity can control the reduction in demand for loose tea.
“The buyer will drink tea because they feel hygienic and have the lifeline The tea industry is packaged and even loose tea retailers have jumped on these health joints.
But the packaged tea rates are still low in India Vis-A-Vis in various other countries, “said Goodricke MD & CEO Atul Asthana.
In a loose tea market, the price of Assam and good quality CTC dooars has risen 10-15% over the past 18 months, while Darjeeling orthodox does not shine at all with only around 2-5% jumping at the level, the word industry said.
The price of loose tea, which has risen during a pandemic, has now dropped drastically.
“When things are open and normalize, supernormal growth can be tapered.
This category is expected to return to a normative volume growth of 3-4% every year.
This opportunity lies in an increase in value for the same volume,” Krishnamurthy said.
Once the loose tea player returns to the market, will consumers return to not packed tea? “Usually when consumers increase from loose to tea packaging, the stickiness is quite high,” Krishnamurthy said.