Tea plantation firms brew own brands to capture retail segment

Tea plantation companies are focussing on packet teas to mitigate risks in the plantation business as well as to tap new revenue streams.

This year marked the entry of the world’s largest tea producer, 

McLeod Russel, into the packet tea business while the country’s second largest tea manufacturer, Amalgamated Plantations, also decided on a retail venture. The Camellia-owned Goodricke group strengthened its retail portfolio after acquiring several brands from Godfrey Phillips.

The tea business has been subject to severe stress since 2014. With a wage revision being implemented across estates, the cost of production has increased by 35-40 per cent