The company is piloting the new product segment it recently entered to diversify its Indian portfolio, to target youth.
Tata Global Beverages (TGBL) is set to enter the RTD (Ready to Drink) market by introducing a green tea-based drink, led by Tata tea in india and Tetley in Canada, reports said. The company is piloting the new product segment it recently entered to diversify its Indian portfolio, to target youth. The drink will be available in the orange and mango flavours. The company has claimed that this is a first of its kind combination in the Indian iced tea market, with an offering that is innovative with herbal extract, low in sugar and relevant.
Globally, particularly in Europe and North America, traditional black tea consumption has been on a decline. The fruit and herbal infusion segment is on a growth trajectory. In the company's annual report for 2016-17, the RTD tea market in India is pegged at Rs 140 crore, with a nine to 10 per cent annual growth rate. "We haven't been really playing in the iced tea segment in the recent past but have been studying the scope," said Ajoy K Mishra, managing director and chief executive. He says black tea was about 85 per cent of Britain's beverage market only seven or eight years earlier but has shrunk to 68-69 per cent. In Canada, black tea consumption accounts for half the market. "In USA, by tea, people understand iced tea and RTDs. The fruit and herbal beverage segment, however, is growing faster," he said.
In India, on the other hand, black tea accounts for 90 per cent of the market and is a growing category. "However, even in India, the growth of green tea outpaces the growth rate of black tea," said Mishra.
The company has come up with six new launches in India in the past 15 months, which is more than that in past 5-6 years.