Market Trend

After the point of inflexion in October 99, the tea market has been on an upswing. The month of February has been relatively better with a 3.7% monthly growth. This becomes significant especially when in Feb 99 the market was declining at –2.9%.

The trendline predicts the buoyancy in the market. It is interesting to note that the trendline for the corresponding period in the last fiscal had a negative slope.

Return of Main Packs

The decline in the main pack volumes was one major characteristics of last year’s recession in the tea market. However, over the last 5 months the main pack segment has shown steady growth rate. Currently(Feb 2K) the segment is growing @ 2% as against a decline of –4% in Feb 99.

Urban Market Goes Back to Packet Tea

With a decline rate of –11% in Feb 99, the urban market, in recent months, has shown considerable improvements. Since October 99, the segment is on a steady growth path.

Major Players Consolidate their Position

Most of the major players have consolidated their position, by arresting the decline rates :   

Among the national players,

• Tata & Eveready have been on a phenomenal growth path for last two quarters.

• Levers has been successfully arresting its volume decline.

• Duncans shows a rather checkered growth curve.

  Among the regional players, Gujrat Tea  & Hasmukhrai  have shown fairly good performance in the last two quarters.

 Goodricke, GPI & Dhunseri have failed to cash on the buoyancy in the packet tea market.

Local Players Going Strong

The bazaar brands are going strong with a 28% market share & 16% growth rate.

A-1 is going against the trend by registering huge decline (YTD Feb decline : -34%). Shakti & Agni are growing phenomenally.

Retail Penetration & Duncans

•  We have increased our reach in the urban market : from a 16.% in April 99, it’s up 18.2 in Feb 2K.

• In rural markets, however, there has been a marginal dip of 0.6%.

Top 23 Metros & Duncans

•   Duncans has a 3.4% market share in the metros.

•    Among the four base metros, the company’s position is strongest in Mumbai, with a 5% market share(!). But Delhi & Calcutta—far older markets of Duncans—have 1.5% & 2.0% market share.

And did you know that a regional brand like Gemini is almost twice as big as a national player GPI !!  

Click here ORG Report for the month of February 2000.