Tea, coffee, ...squashes! See what Tata Global Beverages is up to
Innovation is brewing at Tata Global Beverages Ltd (TGBL), formerly Tata Tea Ltd, with evolving consumer preferences. The Tata Group company, which has been facing headwinds with higher tea commodity cost in North-East India, is depending on new launches and innovations to gain market share.
Innovation is brewing at Tata Global Beverages Ltd (TGBL), formerly Tata Tea Ltd, with evolving consumer preferences. The Tata Group company, which has been facing headwinds with higher tea commodity cost in North-East India, is depending on new launches and innovations to gain market share.
In India, the company has recently launched two new tea brands - Chakra Gold Activ+ and the Kanan Devan Duet - under the Tata Tea umbrella brand in southern region, whereas in the UK, it has launched products outside tea category.
Recently, it entered the squash category through the Tetley brand and has also launched Tetley Cold Infusions to cater to an evolving market which is seeing “a secular decline” in black tea category for a number of years.
During an analyst call with the TGBL management, Adil Ahmad, global chief marketing officer, said the whole portfolio in the UK, therefore, is changing more towards the non-black category.
Ajoy Misra, managing director and chief executive officer, said that for the first time Tetley has entered squashes, which is a large category in the UK and “nearly as big as tea as a category”.
Tata Global has reported a 6.55% decrease in its consolidated net profit at Rs 133.6 in the first quarter of the current fiscal due to an exceptional item of Rs 18.18 crore. Consolidated total income, on the other hand, grew 6.53% to Rs 1831.11 crore.
L Krishnakumar, executive director and group CFO, said that the exceptional items in the quarter were related to “redundancy and restructuring done in the international business”. In the previous year, there was a gain on disposals.
Misra said that company has “seen an improvement in operating performance” in June quarter across its businesses in India and abroad, supported by revenue growths across branded businesses.
Watch this Zee business video here:
TGBL has reported a consolidated growth of 7% in its branded business in the quarter ended June 2018, whereas its non-branded business has faced headwinds, he added. The non-branded business includes Tata Coffee Ltd and other B2B businesses.
The quarter had seen the branded business in India growing at 6% led by a volume growth of 8%. Tetley green tea, the green tea brand has “gained 5.7% volume and 5.9% value in market share”.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Power of Compounding: How many years will it take to reach Rs 3 crore corpus if your monthly SIP is Rs 4,000, Rs 5,000, or Rs 6,000
Power of Compounding: Salary Rs 25,000 per month; is it possible to create over Rs 2.60 crore corpus; understand it through calculations
Reduce Home Loan EMI vs Reduce Tenure: Rs 75 lakh, 25-year loan; which option can save Rs 25 lakh and 64 months and how? Know here
Top 7 Large and Mid Cap Mutual Funds with Best SIP Returns in 5 Years: No. 1 fund has turned Rs 15,000 monthly SIP investment into Rs 20,54,384; know about others
10:48 AM IST