Talwar: Going places

Calcutta, Oct. 10: Tata Tea is planning to launch its brands in the US and Canada.

“Interest in Indian tea is rising in markets such as the US and Canada. We are, therefore, exploring options of taking the Tata Tea brand to these markets,” said Sangeeta Talwar, executive director — marketing, Tata Tea.

High-quality Indian tea has always been popular in the European markets, but most of it is exported in bulk and very few brands are sold there.

India exported around nine million kg to the US and Canada last year at an average price per kg of Rs 160 and Rs 125, respectively.

In overseas markets, most of Tata Tea’s products are known by location-specific brand names such as Tetley and Good Earth.

Tata Tea is also in talks to set up a joint venture with a Russian firm for Tata Coffee. Depending on how the arrangement works, the company could also plan a Tata Tea brand for Russia.

In 2006, the CIS and Russia were the principal buyers of Indian tea.

Value additions

Tata Tea is also planning a youthful image for its brands with special emphasis on the wellness quotient.

Tata Tea will bet big on tea bags as the younger generation prefers the drink in this mode, Talwar said.

The beverage major will also consider introducing iced tea, concentrates, bottled ready-to-drink tea, tea cans, and vending machines.

“However, we will not enter any area without being absolutely sure. Cans and vending machines have not had a good run in the past. We will be cautious,” Talwar said.

City suburbs and the rural population contribute 40 per cent to the company’s turnover.

Sachets will be another area of focus.

“Tea is the common man’s drink in India. For large sections of the population, the cost of a cup with milk and sugar is an overriding factor. We will continue to cater to the masses by providing a cup of tea for Rs 5 and Rs 2 through our sachets,” said Talwar.