Tata Tea Ltd will soon mark up the prices of its packaged tea brands, given the sharp increase in tea prices at home and abroad, according to Sangeeta Talwar, executive director for marketing.
Talwar also indicated a shift that would broaden Tata Tea?s product portfolio and position it strongly in the Rs 50,000-crore market for out-of-home food and beverages.
?We have taken some initiatives which signal maybe a different future for this organization,? Talwar said.
He said it would not be possible to quantify the price increases, since it blends different varieties for its brands. However, this would be the first time that the company will mark up prices across its portfolio.
?You will see in the next few weeks all tea prices will go up,? Talwar said. ?If commodity prices really firm up by Rs 7 -10 a kg, then we have to pass it on.?
Tata Tea has seven brands that it sells in over 150 pack sizes. Talwar said Tata Tea reported a 20% volume share of the branded tea market in the period March 2007 to February 2008, annualized, against rival Hindustan Unilever?s 19.1%. The branded market accounts for around half the 800 million kg of tea consumed in India.
In value terms, Tata Tea, with a market share of 20.2%, is behind Unilever?s 22.8%.
Talwar said Tata Tea has taken three key initiatives that it expects to pay back in terms of higher market share.
