Tea Market is Expected to Grow 20-23% Annually by 2020: Subrata Mukherjee, Business Head, Typhoo India
With the world going the organic way, Typhoo has launched organic herbal tea offering an essential dose of wellness. We speak to Subrata Mukherjee, Business Head, Typhoo India, on the new range and future plans.
“TRAVEL CAN take a lot out of you. And perhaps, there is nothing more reviving than a flavorful cup of tea warming the day’s tiredness away with every sip. Some of the best luxury hotels in the country have chosen Typhoo tea to be that elixir of choice for their valued customers,” explains Subrata Mukherjee, Business Head, Typhoo India.
Typhoo has indulged tea enthusiasts and refined tea drinking experience the world over since its inception in the UK in 1903. With a portfolio of 11 brands and over 200 varieties, Typhoo is being enjoyed in more than 50 countries including USA, Canada, Europe, Australia, Japan & China. Defining the changing tastes and preferences of the urban Indian consumers, Typhoo has over a 100-year heritage bringing a rejuvenating experience to India with a variety of high-quality speciality teas. Excerpts:
The tea industry is witnessing a lot of innovation. How do you cater to this segment?
With the number of tea drinkers increasing every day in India and worldwide, people between the age group of 18-30 love to experiment. Apart from the regular Chai that we are used to drinking, there are so many variants available in the market. At Typhoo, it’s our endeavour to be relevant to today’s consumer and offer them the best tea drinking experience. Hence, Typhoo has over 30 varieties of teas and infusions to offer- from black and flavoured teas, green teas, organic herbal infusions to fruit infusions. With the world going the organic way, Typhoo has launched an organic herbal tea range offering an essential daily dose of wellness. It’s available in 5 variants currently.
Tell us about the Indian tea market and what is Typhoo’s market share?
The Indian tea market is approx. 1275 mil kg out of which exports are approx. 200 mil kg. The balance is all consumed domestically which is a huge share of the volume. Tea consumption occupies more than 79 percent share in the non-alcoholic beverage market, which is estimated at a value more than $30 Billion (Rs 195,000 crore). The market for ‘chai’ by the year 2020 is expected to grow annually by 20-23 percent and is estimated to be three times the present size in 2018. The market share of exotic/premium teas is negligible at this point but gradually as tastes and preferences are evolving the boutique brands are mushrooming, educating the consumer about various blends, and this number would grow and would have a decent weight in next 3-5 years’ time. Typhoo’s target markets are top metros, and select Tier I cities with a focus on MTs and select SMTs. This year we look at increasing our presence in top SMTs stores.
What is your product specialization?
Typhoo’s refreshing, rejuvenating experience is available in over 30 quality luxurious teas and 100 percent caffeine free fruit and organic herbal infusions. Interesting variants like Green Tea Masala Chai, Green Tea Traditional Tulsi and extensive black tea collection, to name a few. Typhoo has also launched the first globally certified environmentally sustainable teas (Rainforest Alliance) to be marketed across India and has fast evolved as an important brand in India since its foray 2008. On an average, the year-on-year growth has been close to 35-40 percent.
Tell us about the revenue strategy for the year?
Our key focus category would be in line with the industry growth and we’ll focus on driving our revenue volumes from our varied Green tea range followed by our newly launched Organic Herbal Infusions. We’ll be seen taking some changes in our overall strategy this year to drive brand pull.
You cater to the hospitality sector also. Tell us which brands you cater to.
Some of the best luxury hotels that savour Typhoo blends are Leela Palace, Delhi; The Park Hotels; Radisson, Hyatt, Le Meridian to name a few. Typhoo is also served on Jet Airways and Air India.
Are you planning to invest in a tea café?
We plan to create experiential cafes in times to come but not in the next two to three years.
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