labels: foods / beverages, hindustan lever, advertising/branding
Hindustan Lever launches spiced teanews
Our Corporate Bureau
02 September 2005

Mumbai: Hindustan Lever, the largest FMCG company in India has launched Brooke Bond Red Label Natural Care Tea, a spiced-up tea variant priced at Rs53 for a 250-gram pack. The regular Brooke Bond Red Label sells at Rs47 for a 250-gram pack.

According to Vineet Taneja, vice president, tea, Hindustan Lever, Natural Care tea, which is flavored with spices, is expected to increase the sales of its Brooke Bond range by 10 per cent.

Analysts say the company is trying to increase its market share in the estimated Rs6,400-crore Indian tea market. HLL is the biggest producer of packaged tea followed by Tata Tea. In the past two years the company has been battling regional packaged brands priced 10 to 20 per cent lower below its own brands. Loose tea comprises a 45-per cent market and is a formidable challenge to the Indian packaged teasegment, because of its lower prices.

The company expects flavoured tea to help it fight regional tea brands as well as other flavoured brands.

Hindustan Lever''s beverage sales account for about 11 per cent of its total turnover. Beverage sales grew 16 per cent in the quarter ended June 30 to Rs312 crore ($71 million). HLL''s Brooke Bond tea and Bru coffee are its largest selling brands among beverages.

HLL''s profit before interest and tax from the beverages business rose 6.3 per cent to Rs 53.94 crore.

In 2004-05 Hindustan Lever''s packaged tea brands Lipton and Brooke Bond Red Label had a sales revenue of about Rs 1,000 crore. Brooke Bond Red Label alone accounts for about 30 percent of total sales, Taneja said.

 

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Hindustan Lever launches spiced tea