Reducing reliance on black tea – tips from Tetley

Brett Grimshaw (pictured), business sector controller at Tata Global Beverages, highlights the growth opportunities presented by different styles and formats of tea.

What proportion of your business goes through the cash & carry/delivered wholesale trade?

Our wholesale business is significant to us and has held its own given the challenges the tea sector has faced in recent years, such as the decline in the overall tea category from black tea sales. We continue to hold our number one position in impulse with over a third of the overall volume share.

Are you making any investments that will benefit the trade over the coming months?

We work collaboratively with each of our customers, offering bespoke support including marketing tools and collateral to help cash & carries and delivered wholesalers maximise their tea sales – this ranges from category management advice and insight to PoS.

We recently reviewed our promotional strategy and have introduced additional promoted price-marked packs in order to help wholesalers and retailers deliver value to the end user.

We are also focusing heavily on NPD to try to curb the decline in the tea category by reducing the reliance on black tea and introducing new flavours. While everyday black tea still accounts for 60% of all consumer spend out of home, new sectors of green tea and fruit & herbal infusions are growing at a combined rate of 6.6% (Nielsen).

tetley-depot-7-fro-webWhat are the key merchandising principles C&C depot managers should follow when managing a tea fixture?

•    Ensure shelf space is allocated based upon market share and display a range of sizes and formats specially for caterers, such as our resealable packs which feature premium quality packaging.
•    Incorporate regional brand strengths into your range and block best-selling brands together for easy navigation – check that you are meeting demand for different flavours and formats.
•    Manage the tail of your range proactively.
•    Give customers a premium option and encourage them to spend more! Following feedback from operators for a quality product that not only tastes great but also looks good in their establishments, we created our envelope range of the top 10 best-selling flavours.
•    Help customers to shop in your depot by clearly signposting your catering section and using PoS to maximise sales.
•    Try not to trade customers down on an essential like tea.
•    The growth of green and fruit & herbal will continue into 2017, so ensure that different blends form part of your range.

How can delivered wholesalers improve their sales of tea?

Tea is one of life’s ‘essential’ products so try to add value at every opportunity.

Are there any cash & carries/delivered wholesalers you wish to highlight as being particularly progressive?

We work with numerous customers who are really progressive in their attitudes to launching NPD. To name a few, Dhamecha, Parfetts and United Wholesale Scotland have been involved in recent sampling events for our new Super Black range. We find these work really well – for example, breakfast-themed samplings in depot are a really easy way to create excitement around the tea offering and drive engagement.

Can you share any news relating to product launches in 2017?

We have some exciting developments in the pipeline, which will take advantage of the increasing demand for healthy products. We will also be focusing on the growing trend towards personalisation and new flavours among the younger generation.

Tel: Tata Global Beverages (0800) 387227

Published Date: December 26, 2016
Category: Meet the Manufacturer