Tata Tea announces foray into non-carbonated drinks market

Tata Tea, India’s largest tea company by volumes, has announced its foray into the Rs 10,000 crore branded cold drinks market with the launch of T!ON — a tea and fruit-based cold beverage targeted at the youth.

T!ON is available in three flavours – Mango Rush, Peach Punch and Apple Buzz — in a 400 millilitre pet bottle priced at Rs 22. It has three key ingredients — tea, fruits and ginseng, a stress reliever.

“This is a unique product that can compete with every cold beverage available in the market, as it provides energy, refreshment and health,” Sangeeta Talwar, executive director, Tata Tea, told Business Standard.

The branded cold drinks market is broadly divided into carbonated and non-carbonated drinks. The carbonated drinks market is worth Rs 6,000 crore and has been growing 10-12 per cent per annum. It is largely dominated by the colas. T!ON would cater to the non-carbonated market, which is growing 35-40 per cent annually.

Players in the non-carbonated drinks market include Hindustan Unilever, Dabur, Godrej, Parle, Rasna International, Nestle, PepsiCo and Coca-Cola, to name a few. In recent years, most companies have extended their portfolios to cater to the health and wellness market.

Sanjay Seth, vice-president (food and agriculture), Technopak, said, “The health and wellness market is a nascent market, with all fast moving consumer goods companies positioning themselves to cater to this growing market. The market has enough room for all players to grow.”

Speaking on expansion plans for T!ON, Talwar said, “We will test-market the brand in Chennai for the next one year before rolling it out nationally. The cautiousness is on account of this being a new market that we intend to create.” T!ON is currently being co-manufactured with ATC Beverages, an erstwhile bottler of Coca-Cola in India.