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| Regional tea on a roll |
| Ishita Ayan Dutt / New Delhi Jun 01, 2009, 00:38 IST |
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Be it politics or any other issue, the trump card seems to be “local”, always. Take regional packet tea brands, which have held on to their turf despite the onslaught from big brothers like Tata Tea and Hindustan Unilever.
Numbers validate the clout of regional brands. They have a 40 per cent share in the packet tea market, which accounts for half of the 962 million kg tea produced in the country.
What makes the brands tick is their response time and exhaustive distribution network , says Parag Desai, director, Wagh Bakri Tea group, the largest selling privately-held packet tea company with a turnover of Rs 400 crore. The company’s sales are primarily from three states — Gujarat, Rajasthan, Madhya Pradesh — though it made inroads in Maharashtra last year.
“We understand the taste and preferences of our customers because we do the tasting and blending ourselves,” says Desai. The company conducts at least two consumer surveys every year to adapt to changing taste buds.
The regional brands are essentially distribution-led companies, with an emphasis on being on the shelf of each and every shop.
Girnar, which has been in the market since 1978 and focuses on Maharashtra and Gujarat, follows a slightly different strategy. Apart from occupying shelves in the kirana stores, the company has 42 specialised Girnar shops.
Viduit Shah, director, Girnar Food and Beverages, says the specialised shops are essentially “kirana” stores that sell only Girnar tea and are equipped with vending machines. But a few new-format stores have also been launched in malls to attract new-age consumers.
Girnar, which is the umbrella brand for its three variants across price points, has a turnover of Rs 150 crore.
Double Diamond from the Duncan Goenka stable is a strong player in the northern region that accounts for 60 per cent of its Rs 150 crore turnover.
The brand is now eyeing a national presence. G P Goenka, chairman, Duncan Goenka group says, “We have a good brand equity now and there is no reason why we should not go national.”
But Goenka feels more should be done on the distribution side for Double Diamond. “We need to strengthen the servicing. We are making inroads into Orissa and are doing quite well in Andhra Pradesh and Madhya Pradesh also.”
That’s what Girnar and Wagh Bakri are planning as well. Having made their presence felt in their respective markets, they are now eyeing a slice of the national pie. Some are looking further. Wagh Bakri tea, for example, is also sold in North America, UK, and Australia.
That the regional brands are strong is best manifested by the fact that bigger players, which want to acquire them, have been told several times that they are not for sale.
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