Lipton Tea Brand Breakup; Unilever Brand Divestiture

by

by

Comments (3)

Comment Feed

Team leader..Brand developer

Good idea for increase to sale tea....i want to join Lipton Pakistan

Waqas butt 27 days ago

Black tea

Dan

I've seen this comment, or something like it, a lot: "Still, sales of traditional black tea, the largest segment of the category, have been in decline in developed markets for several years due to changing consumer preferences, according to the company."

I think it deserves further scrutiny. All the evidence shows that GOOD QUALITY black tea is selling very well indeed, but consumers are drifting away from the market as a whole. Perhaps a closer look is needed at product quality itself? Have brands over-reached themselves in their quest for cost savings at the expense of product quality and consumer experience? Evidence over 20+ years suggests "yes"! There is considerable growth in black tea - but at the good/premium end of the market. Ask Taylors of Harrogate as an example.....

Jem McDowall 54 days ago

Traditional

That's accurate and a helpful observation Jem. Sales volume of black tea overall is growing globally with China contributing to an already bountiful supply from India, Sri Lanka and Kenya. On reflection it is more accurate to say that in developed markets including the US and UK a combination of affluence, a preference for better tasting tea and the availability and popularity of botanicals (fruit, spice, functional blends) have eroded market share long-held by commodity tea makers. Lipton, PG Tips, Red Rose, Salada are all examples of traditional (commodity) brands where margins are tightening and discounting is ever-present in supermarkets and hypermarkets. Good quality black tea is selling very well, but volumes have not unseated commodity offerings on store shelves. That time is coming as grocers like Walmart (which recently Rainforest Certified its own tea line) recognize that selling 3-cent and 5-cent teabags makes no sense. I think it is correct to say that commodity brands, in general, have over-reached themselves in their quest for cost savings at the expense of product quality and consumer experience.

Dan Bolton 38 days ago

The free STiR newsletter is sent twice each month with news updates, important information and upcoming events.