A Sip of Health

Pegged at approximately Rs 150 crore, the green tea market in India is growing strongly and steadily with demand coming in also from Tier II and Tier III cities and manufacturers increasingly focusing on launching new variants

20150315eh87Cheap, affordable and addictive – have been terms synonymous with tea from the time it ceased to be an elite drink of the royals to become an affordable drink of the common man. Green tea is one of the fastest growing segments of the global tea industry. It is prepared from the leaves of camellia sinensis that have undergone minimal oxidation during processes. The concept of green tea originated from China and later spread all over the world. Some of the popular Japanese green teas are sencha, gyokuro, kabusecha, matcha, tencha, genmaicha and hojicha.

The journey of tea in India has indeed been fascinating and interesting. With rising health awareness, Indians who are majorly black tea drinkers, are now showing interest in green tea variants. Green tea is becoming an acquired cultural habit that is being driven by urban India’s urge to stay fit. Though presently green tea penetration in India is less than five per cent, however its demand is not just limited to metros and Tier I cities, but has also come to include Tier II and Tier III cities which have started consuming this drink on a regular basis. As a result of this growing penetration, the green tea market in India which is presently pegged at approximately Rs 150 crore has been growing upwards 50 per cent year-on-year.

With urban Indian consumers buying green tea for its many health-promoting benefits, manufacturers are increasingly focusing on making premium variants available in all retail channels, especially in modern grocery retail outlets. For instance, consumers are spoilt for choice with tea products of companies such as Organic India, GAIA Herbs, Twinings, Typhoo, as well as big FMCG giants like Hindustan Unilever, Tata Global Beverages, who are either launching new variants or re-launching their green tea product range. Moreover, GAIA Herbs has also introduced green tea variants, namely cardamom, and honey and lime, to cater to an increasing number of health-conscious consumers in urban cities. International manufacturers are also expanding their presence in institutional channels, including hotels, to generate awareness of their premium brands.

Tetley, sold across 40 countries and a part of Tata Global Beverages, has six flavours in its green tea portfolio including ginger, mint, lemon, honey and lemon, citrus and spice, and aloe vera. The company enjoys a market share of 35-40 per cent. Though in the total tea revenues of Tata Global Beverages, green tea currently has a very small share vis-a-vis black tea, the company expects the green tea segment to contribute significantly in the coming years. And with the increasing emphasis on health and wellness, the potential for categories within tea is immense.

For Twinings, India is one of the top five growth markets. The company, that has about 35 per cent market share in the premium and super premium teabag category in the country, is looking at increasing its business in India five-fold in the next five years. India is the third largest tea sourcing country for Twinings after China and Kenya. The company is a big buyer of Darjeeling and Assam teas and is increasingly buying tea from the Nilgiris. Twinings is part of Associated British Foods. Their range of green teas in the India market include green tea, green tea and lemon, green tea and mint, Earl Grey green tea, jasmine green tea and lemon and honey tea.

Also to stay ahead of the race, Wagh Bakri Tea Group has been offering one of the largest green tea ranges in India consisting of green tea, organic tea bags and regular green tea. The company also has different flavours across its green tea range like green tea mint and green tea tulsi and is currently working on expanding its green tea range under its wellness category. Apart from major Indian cities, Wagh Bakri Tea Group is also aggressively marketing its green tea products in Tier II and Tier III cities. Though at present, the company’s green tea revenue compared to normal CTC is negligible but in one to two years the green tea category is expected to comprise of 10 per cent of the company’s overall sales.

Global trend

20150315eh88According to the World Health Organisation (WHO), the overweight population is expected to reach 1.5 billion by 2015 and growing healthcare costs in the US alone is expected to cross US$ 117 billion; all this is creating major opportunities for the growth in sale of weight management products such as green tea. Rising consumer awareness about the benefit of green tea in curing various diseases further triggers the global market of green tea.

Asia Pacific contributes the largest market of green tea in the world. Apart from India, countries like Hong Kong, Taiwan, Japan and China are growing markets of green tea in this region. Rising population and healthcare awareness is further expected to boost the green tea market in Asia Pacific. Europe is the fastest growing market for the green tea industry.

Major companies operating in the global green tea market are AMORE Pacific Corp, Arizona Beverage Company, Associated British Foods LLC, Cape Natural Tea Products, Celestial Seasonings, Finlays Beverages, Frontier Natural Products Co-Op, Hambleden Herbs, Hankook Tea, Honest Tea, ITO EN, Kirin Beverage Corp, Metropolitan Tea Company, Northern Tea Merchants, Numi Organic Tea, Oishi Group Plc, Oregon Chai, PG Tips, Pukka Herbs, Qi Teas, The Kent Tea & Trading Company, The Republic Of Tea, The Stash Tea Company, Uncle Lee’s Tea and Yogi Tea.

Retrieved from – http://www.financialexpress.com/article/fhw/cover-story-fhw/a-sip-of-health/50721/

Aid plea for Hathikuli farm

Amalgamated Plantations Private Ltd (APPL), the second largest tea producer in the country, is moving the Centre to help it sustain its organic initiative at Hathikuli — the largest integrated organic farm in the country.

The tea company, which has 25 gardens in Assam and Bengal, is making this move to take advantage of the Rs 100 crore budget provision made this year to promote organic farming in the Northeast.

A senior company official said as a first move, it is looking to the government to allocate funds from the current year’s budget for organic production and will send a detailed proposal.

“This will encourage sustaining the organic movement in the Northeast,” he said.

The cumulative loss of going organic at Hathikuli has been Rs 16 crore, which is mainly due to loss of production, he added.

The process of organic transformation was undertaken in 2007 and it was achieved in 2011. “The acreage converted to organic farming is the largest contiguous conversion that has taken place anywhere in the country,” the official said.

The 687-hectare Hathikuli tea garden, situated on the periphery of Kaziranga National Park, is certified organic according to the Indian, US, European Union and Japanese organic agricultural standards.

Hathikuli is known for its CTC, orthodox, green teas and black pepper with a total annual production of 600 metric tonnes.

The teas are being exported to Germany, the US, the UK and West Asian countries.

Hathikuli Tea Garden

Hathikuli Tea Garden

The demand for organic food and beverages in the country is huge and estimated at $129.3 million and is expected to grow at a compound annual growth rate of 15 per cent.

“We are in the process of educating ourselves and developing organic packages and practices, which will help create a knowledge base for farmers across the world and specifically Assam,” the official said.

The company’s net profit during 2013-14 reflected a growth of 56 per cent compared to 2012-13. The company held its annual general meeting last month with Ranjit Barthakur as its chairman.

The company has recorded an increase of nine per cent in its own crop harvest as compared to the Assam Valley increase of six per cent.

The company has focused on increasing its volume on operations through sustained development of its tea areas and purchase of bought leaf for conversion. It has also focused on orthodox manufacturing, which has added considerable value to the operations.

The focus on quality has also improved its earnings.

APPL has deployed a fairly large number of mechanical harvesters across 17 estates, as these machines will help in harvesting the crops in time. “This would also help in availability of mandays to do cultivation, as many estates are facing a shortage of workers,” the official said.

Retrieved from – http://www.telegraphindia.com/1140818/jsp/northeast/story_18729198.jsp#.U_GQbMWSz-s

Green tea biz poised for strong growth

Kamal Baheti, chief financial officer,  McLeod Russel is confident of the company’s entry into the green tea business and says he sees a tremendous potential in the same. “Given its health connotations, we expect this growth to increase in urban areas.” says Baheti.

McLeod Russel recently made a Rs 5 crore worth acquisition of a green tea-processing factory in Vietnam , thereby entering the green-tea business.

“Green tea market in India has a market share of only 1 percent but it is growing by 25-30 percent every year. It is basically because the base is small. But this is a market, initially it is the urban market where it is growing but we believe with the health benefits attached to green tea, this is a segment which will grow more. There is hardly any production which happens in India. We have brought this factory in Vietnam, we will also see which are the markets other than India, Middle East, Pakistan etc growing in green tea. So, it is not only India but we are looking at international markets to really export the green tea.” says Baheti.

 

Before this Tata Global Beverages (Tata) with Tetley and Hindustan Unilever (HUL) with Lipton were dominating the green tea business. On expectations from the black tea segment, Baheti says a 5-10 percent price hike is likely as the tea season begins.
Retrieved from: http://www.moneycontrol.com/news/business/green-tea-biz-poised-for-strong-growth-mcleod-russel_1053016.html?utm_source=ref_article

Green tea demand growing by 17% in domestic market

Demand for green tea is growing at a rate of 17 per cent per annum against only 3 per cent for black tea in the domestic market, a Tea Board official said.

Assam produced 2 million kg of green tea of the estimated production of 11 million kg in the country during 2013, Tea Board Executive Director (Incharge) Dipankar Mukherjee said while inaugurating a workshop on Green Tea in Golaghat.

India is the largest producer and consumer of black tea in the world while China is the largest producer and consumer of green tea in the world.

“The demand for green tea is rapidly increasing in India whereas in China, the demand for black tea is on the rise,” he said emphasizing the need for scientific and sustained production of green tea.

 Retrieved from – http://www.thehindubusinessline.com/markets/commodities/green-tea-demand-growing-by-17-in-domestic-market/article5713938.ece