Rural consumption and progress have been below stress till final 12 months as a result of inflationary pressures. December 2022 onwards quantity progress has been comparatively optimistic however with a single-digit progress, says Puneet Das.
| Photo Credit: Partha Pratim Sharma
Branded tea sector, that witnessed headwinds as a result of inflationary pressures and subsequent decline in rural consumption till December final 12 months, is now slowly enhancing, nevertheless, the phase remains to be not out of woods, mentioned Puneet Das, President-Packaged Beverages (India and South Asia), Tata Consumer Products.
Rural consumption and progress have been below stress till final 12 months as a result of inflationary pressures. December 2022 onwards quantity progress has been comparatively optimistic however with a single-digit progress, he noticed.
“Tea, truly until final December, went by means of a bit of a headwind as a result of larger inflation and rural consumption was additionally impacted. From December, sequential progress began coming again slowly to the tea portfolio. We are seeing headwinds easing and rural consumption slowly coming again, nonetheless the phase is not out of the woods yet,’‘ Mr. Das told The Hindu.
According to him, Tata Consumer Products in the first quarter of FY24 reported a 3% growth in tea sales volume and 2% growth in revenue. As commodity inflation started coming down, food inflation started climbing up and vegetables prices too started rising and therefore the sector is yet to come out of the woods, although the current single digit growth is likely to continue.
Mr. Das said as part of the recovery, the company has been witnessing growth in its premium segment and its price sensitive brand, Agni, that operated at economy popular level was also growing.
“Our focus on premiumisation in tea helped us grow the category while the bottom of the pyramid will always remain an opportunity for us. Branded tea is a fragmented category, but 10 times bigger than branded coffee,’‘ he added.
He also said the company’s road chai was main on ecommerce channels within the nation, though the majority of gross sales was nonetheless coming by means of normal commerce.
“We nonetheless have headroom for progress within the tea phase. NutriKorner is showcasing all the vary of our teas. Other e-com channels are serving to us cross sale and upsale and in addition know consumers’ behaviour,’‘ Mr. Das additional added.
