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WITDA: Tea losing ground to coffee
BS Reporter / Ahmedabad May 25, 2008, 3:37 IST

Coffee bar chains such as Cafe Coffee Day and Barista are sending shivers down the spine of tea traders and manufacturers of western India.

The growing popularity of coffee bars among the urban youth may dent the growth of tea consumption in the country, fear tea industry players.

In order to tackle the growing popularity of Café Coffee Day and Barista chains, Western India Tea Dealers Association (WITDA) has demanded the launch of tea parlours in the country with financial assistance from the Tea Board of India.

"Many coffee bars have mushroomed in the last five years and tea is losing ground. Though consumption of tea may not be going down, the growth of consumption may come to a halt," said Paras Desai, honorary secretary, WITDA.

Speaking at the annual general meeting of the association, Desai, who is also the director of Wagh Bakri Tea Group, expressed his concern to Tea Board of India chairman Basudeb Banerjee and urged the board to take necessary steps.

Citing the example of Gujarat, Desai said the state consumes around 65-75 million kgs of tea annually, out of which 2 to 5 per cent are diverted to coffee each year.

An increased number of people, especially youngsters, prefer to visit coffee parlours and restaurants that mainly sell coffee. "Coffee is gaining ground as a result," he added.

As part of its strategy to combat the competition from coffee bars, the association suggested that Tea Board and industry players should step up their efforts to launch more tea parlours.

There are around 5 to 6 tea parlours, including one each at Mumbai and Ahmedabad. "With financial assistance from the board, more such parlours should be launched to increase the market share of tea," Desai said.

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