Kolkata, Dec 1 (IANS) Due to the rising prices of commodities, India’s tea consumption registered a marginal 0.70 percent growth in 2009-10, a sharp drop from the 3-3.5 percent rise in the previous years, an official said here Wednesday.
‘We have seen a steep rise in commodity cost during the last two years. This, combined with inflationary pressure on sugar and milk, has actually resulted in a drop in consumption per household for the category as a whole,’ Tata Global Beverages Vice President Susanth Dash told reporters.
He said tea production this year will slump to 957 million kg from 979 million kg last year.
When asked whether the low production will affect his company, Dash answered in the negative.
The official was here for the relaunch of its flagship brand Tata Tea Premium that first hit the market in 1985. Key elements of the relaunch includes a new younger brand logo and pack face designed to create a stronger identity for the brand.
The company has also come out with a new TV commercial devised for the brand that will be aired from Thursday.
Following the relaunch, the company expects to record a eight-nine percent volume growth in the next 12 months. Its present growth rate is two-three percent.
Tata Global Beverages, formerly known as Tata Tea, is the world’s second largest tea company with a turnover of $1.5 billion and a presence in over 40 countries.
