GETTING THE TEA MIX RIGHT FOR SALES

As a nation, we’re passionate about our tea; we lean on it in tough times; it’s a great social glue and is the perfect beverage for me-time and refreshment.

Tea is undoubtedly a rich and varied category, but how can retailers make the most of it, and how should cost of living be accounted for?

Delivering Value

As the cost-of-living crisis bites, the a ordability of tea is a strong attraction. With the average cost of a branded cuppa still under 4p, it is the most a ordable hot beverage available.

Tea lovers like their brands, so o ering assurance of taste by stocking the big sellers of the well-known brands, selecting the right price marked packs, and making sure promotional prices are passed to customers can benefit loyalty and repeat visits.

Tetley is the dominant brand in Scotland, with over 43% volume share (Total Scotland 22.4.23).

Having known brand o erings across tea can give shoppers confidence to try more indulgent and higher value teas, too.

Careful curation of choice

Everyday black tea, together with decaf, remain the backbone of the category, so should be prominent in your o ering. Tetley has the top two selling SKUs in both the everyday and decaf sectors in Scotland, in both PMP and non-PMP, so it is sensible to have them in the mix. Making the tea selection easy to find with blocking everyday black teas first, then a decent decaf makes sense. Decaf is often overlooked by retailers, but decaf drinkers drink it for a reason, and won’t buy an alternative if one is not available; so no decaf, no sale. It is also the biggest area of disappointment in terms of taste, so don’t compromise on your o ering.

Enhancing the Sale Shoppers may initially manage household income by temporarily dropping out of added value segments like green, speciality and fruit & herbal teas, and flat growth earlier in the year suggests this is the case.

However, perhaps due to a seasonal change, or realisation that the cost-of-living crisis is here for the foreseeable future, last quarter and four weeks sales in impulse shows growth in green, fruit and herbals and speciality teas.

Green teas are a good first step into this area, and Tetley is the top-selling green SKU in total Scotland. Both Tetley Green Pure 20s and Tetley Green Lemon 20s are available in both PMP and non-PMP.

Although we have had a reprieve from the risk of pandemic illness, interest in healthy living continues to drive sales in certain categories. For Tetley, the big sellers in impulse are Tetley Super Boost –Blueberry & Raspberry, and Tetley Super Immune – Lemon & Ginger.

Benefiting from a top staple As a staple buy, tea sales will remain steady, but outside the everyday essential purchase, showcasing teas from the comforting to the indulgent can only support sales and the future of the category.