Tata Tea packet tea prices are set to increase following the firming up of auction prices of bulk tea. | |
| Sangeeta Talwar, executive director-marketing, Tata Tea said, over the next few weeks prices of all brands will go up due to the upward movement of auction prices. |
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| However, the extent of increase cannot be determined at this point in time. "There is no straight relationship between auction prices and packet tea prices as different teas are blended in packet tea," explained Talwar. |
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| The forecast for the new season is that prices are likely to be higher by Rs 7-10 per kg year-on-year as it would begin on a clean slate. |
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| An industry representative said, there was no tea in the market and some of the auction sales had been dropped. |
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| Talwar said, if prices increased to the extent predicted then it would have to be passed on to the consumer. Tata Tea enjoys around 22.1 per cent of the total market in volume terms. Talwar said, in volume terms Tata Tea was the market leader in January. |
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| Of a total consumption of 800 million kg (approximately), the branded tea market accounts for half of it.Tata Tea has seven brands and 250 packs. The company's portfolio of brands could see some churn. |
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| Talwar said, Nilgiris and Ceylon, single origin orthodox teas under the Tata Tea Gold brandname would be withdrawn from the market. However, Darjeeling would remain and was likely to be relaunched. |
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| The single origin orthodox teas were launched by the company last year. More launches were expected. |
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| Talwar said, the company could launch products in the beverages category. While there no plans for launching iced tea, but there could be entrants in tea-based drinks. |
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