Tata Tea
Encyclopedia
Tata Tea Limited, also known as Tata-Tetley, is the world's second largest manufacturer and distributor of tea
. Owned by India
's Tata Group
, the Tata Tea Limited markets tea under the major brands Tata Tea, Tetley
, Good Earth Teas
and JEMČA. While Tata Tea is the largest tea brand in India, Tetley
is the largest tea company in the United Kingdom
and Canada
and the second largest in the United States
by volume and JEMČA is Czech Republic
's leading tea company.
Via subsidiary companies, Tata Tea manufactures 70 million kilograms of tea in India, controls 54 tea estates, ten tea blending and packaging factories and employs around 59,000 people. The company owns 51 tea estates in India and Sri Lanka
, especially in Assam
, West Bengal
in eastern India and Kerala
in the south. The company is the largest manufacturer of Assam tea
and Darjeeling tea
and the second-largest manufacturer of Ceylon tea.
Set up in 1964 as a joint venture
with UK
based James Finlay and Company to develop value-added tea, the Tata Tea Group has now product and brand presence in 50 countries. It is one of India's first multinational
companies. The operations of Tata Tea and its subsidiaries focus on branded product offerings in tea, but with a significant presence in plantation activity in India and Sri Lanka.
The consolidated worldwide branded tea business of the Tata Tea Group contributes to around 86 per cent of its consolidated turnover with the remaining 14 per cent coming from bulk tea, coffee
and investment income. The company is headquartered in Bangalore
. With an area of approx 159 km² under tea cultivation, Tata Tea produces around 30 million kg of black tea
annually. Instant tea is used for light density 100% teas, iced tea mixes and in the preparation of ready-to-drink (RTD) beverages.
Tata Tea owns five brands in India: Tata Tea, Tetley, Kanan Devan, Chakra Gold, and Gemini. The company has a 100% export-oriented unit (KOSHER and HACCP certified) manufacturing instant tea in Munnar
, Kerala
, which is the largest such facility outside the United States
. Tata Tea has subsidiaries in Australia
, Great Britain
, United States
, Czech Republic
and India
.
, but also from other countries entering the business.
In 1983, Tata Tea bought the stake belonging to the James Finlay
group to form the individual entity Tata Tea. In the same year, the company decided to move from the commodities business to consumer branding. The first brand Tata Tea was introduced. This was followed by other brands like Kannan Devan, Agni, Gemini and Chakra Gold. In spite of being the largest market in the world, the concept of branded tea took time to be accepted.
In 1987, Tata Tea set up a fully owned subsidiary, Tata Tea Inc., in the USA.
, based on sourcing of instant tea products out of Munnar
and Kerala
. In 1993, they entered into a joint venture with Allied Lyons PLC in the UK to form Estate Tata Tetley.
In the mid-1990s, Tata Tea attempted to buy Tetley and the Lankan JVC acquired 51% shareholding in Watawala Plantations Ltd.
In 1997 the company was embroiled in a major scandal known as the "Tata Tapes controversy
" which related to funds the company provided to the outlawed United Liberation Front of Asom
(ULFA), an armed-struggle group operating in Assam
.
By 1999, Tata Tea’s brands had a combined market share of 25% in India. The company had 74 tea gardens and was producing 62 million kilograms of tea a year, two-thirds of it packaged and branded. Towards the end of the year, the tea business was hit by a drought in much of India. In addition, Russia
, once the largest buyer of Indian tea, temporarily withdrew from the market.
's Brooke Bond
-Lipton
and had an annual turnover of £300 million. It was the market leader in Britain and Canada
and a popular brand in the United States, Australia
and the Middle East
.
Established in 1837, Tetley was the first British
tea company to introduce the tea bag to the UK in 1953. The tea bag was followed by the first round tea bag in 1989 and the 'no drip, no mess' drawstring
bag in 1997. Tetley now contributes for around two thirds of the total turnover of Tata Tea.
From 2005, Tata Tea began a restructuring exercise to divest direct ownership of plantations in India, a process facilitated by subsidised loans from the World Bank's International Finance Corporation
.
In 2007, Tata Tea launched the campaign Jaago Re! to awaken youth to social issues. The campaign was extended into 2008. In 2009, their campaign revolve around the issue of corruption with a new adline 'Ab Se Khilana Bandh, Pilana Shuru'.
The international trade union
IUF criticized the company in 2009 for not allowing statutory maternity leave to pregnant tea pluckers
, and for locking out
1,000 workers on the Nowera Nuddy Tea Estate in West Bengal
for so long that the local government began distributing food coupons for emergency rations to workers and their families. In May 2010, a crop sprayer died of suspected poisoning on a Tata estate in Assam
, leading to protests at which two more workers were shot dead by riot police.
on a voter registration drive
, with the campaign name "Jaago re!!" (Wake up!) Following this, the company moved the campaign on to opposing corruption
. The Jaago Re website encourages discussion on this and other social issues.
Tea
Tea is an aromatic beverage prepared by adding cured leaves of the Camellia sinensis plant to hot water. The term also refers to the plant itself. After water, tea is the most widely consumed beverage in the world...
. Owned by India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
's Tata Group
Tata Group
Tata Group is an Indian multinational conglomerate company headquartered in Mumbai, Maharashtra, India. Tata Group is one of the largest companies in India by market capitalization and revenue. It has interests in communications and information technology, engineering, materials, services, energy,...
, the Tata Tea Limited markets tea under the major brands Tata Tea, Tetley
Tetley
Tetley, a wholly owned subsidiary of Tata Global Beverages , is the world's second largest manufacturer and distributor of tea. Owned by India's Tata Group, Tetley's manufacturing and distribution business is spread across 40 countries and sells over 60 branded tea bags...
, Good Earth Teas
Good Earth Teas
Good Earth Teas is a tea distributor based in Santa Cruz, California. Founded in 1972 under their parent company Fmali Herb Company, it was originally one of the first American herbal tea companies during the early 1970s...
and JEMČA. While Tata Tea is the largest tea brand in India, Tetley
Tetley
Tetley, a wholly owned subsidiary of Tata Global Beverages , is the world's second largest manufacturer and distributor of tea. Owned by India's Tata Group, Tetley's manufacturing and distribution business is spread across 40 countries and sells over 60 branded tea bags...
is the largest tea company in the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
and Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
and the second largest in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
by volume and JEMČA is Czech Republic
Czech Republic
The Czech Republic is a landlocked country in Central Europe. The country is bordered by Poland to the northeast, Slovakia to the east, Austria to the south, and Germany to the west and northwest....
's leading tea company.
Overview
The company was rechristened as Tata Global Beverages to include the range of health and nutritional beverages it wants to enter into.Via subsidiary companies, Tata Tea manufactures 70 million kilograms of tea in India, controls 54 tea estates, ten tea blending and packaging factories and employs around 59,000 people. The company owns 51 tea estates in India and Sri Lanka
Sri Lanka
Sri Lanka, officially the Democratic Socialist Republic of Sri Lanka is a country off the southern coast of the Indian subcontinent. Known until 1972 as Ceylon , Sri Lanka is an island surrounded by the Indian Ocean, the Gulf of Mannar and the Palk Strait, and lies in the vicinity of India and the...
, especially in Assam
Assam
Assam , also, rarely, Assam Valley and formerly the Assam Province , is a northeastern state of India and is one of the most culturally and geographically distinct regions of the country...
, West Bengal
West Bengal
West Bengal is a state in the eastern region of India and is the nation's fourth-most populous. It is also the seventh-most populous sub-national entity in the world, with over 91 million inhabitants. A major agricultural producer, West Bengal is the sixth-largest contributor to India's GDP...
in eastern India and Kerala
Kerala
or Keralam is an Indian state located on the Malabar coast of south-west India. It was created on 1 November 1956 by the States Reorganisation Act by combining various Malayalam speaking regions....
in the south. The company is the largest manufacturer of Assam tea
Assam tea
Assam is a black tea named after the region of its production, Assam, in India. Assam tea is manufactured specifically from the plant Camellia sinensis var. assamica . This tea, most of which is grown at or near sea level, is known for its body, briskness, malty flavor, and strong, bright color...
and Darjeeling tea
Darjeeling tea
Darjeeling tea is a black tea from the Darjeeling region in West Bengal, India. When properly brewed, it yields a thin-bodied, light-colored infusion with a floral aroma...
and the second-largest manufacturer of Ceylon tea.
Set up in 1964 as a joint venture
Joint venture
A joint venture is a business agreement in which parties agree to develop, for a finite time, a new entity and new assets by contributing equity. They exercise control over the enterprise and consequently share revenues, expenses and assets...
with UK
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
based James Finlay and Company to develop value-added tea, the Tata Tea Group has now product and brand presence in 50 countries. It is one of India's first multinational
Multinational corporation
A multi national corporation or enterprise , is a corporation or an enterprise that manages production or delivers services in more than one country. It can also be referred to as an international corporation...
companies. The operations of Tata Tea and its subsidiaries focus on branded product offerings in tea, but with a significant presence in plantation activity in India and Sri Lanka.
The consolidated worldwide branded tea business of the Tata Tea Group contributes to around 86 per cent of its consolidated turnover with the remaining 14 per cent coming from bulk tea, coffee
Coffee
Coffee is a brewed beverage with a dark,init brooo acidic flavor prepared from the roasted seeds of the coffee plant, colloquially called coffee beans. The beans are found in coffee cherries, which grow on trees cultivated in over 70 countries, primarily in equatorial Latin America, Southeast Asia,...
and investment income. The company is headquartered in Bangalore
Bangalore
Bengaluru , formerly called Bengaluru is the capital of the Indian state of Karnataka. Bangalore is nicknamed the Garden City and was once called a pensioner's paradise. Located on the Deccan Plateau in the south-eastern part of Karnataka, Bangalore is India's third most populous city and...
. With an area of approx 159 km² under tea cultivation, Tata Tea produces around 30 million kg of black tea
Black tea
Black tea is a variety of tea that is more oxidized than the oolong, green, and white varieties.All four varieties are made from leaves of the shrub Camellia sinensis. Black tea is generally stronger in flavor and contains more caffeine than the less oxidized teas. Two principal varieties of the...
annually. Instant tea is used for light density 100% teas, iced tea mixes and in the preparation of ready-to-drink (RTD) beverages.
Tata Tea owns five brands in India: Tata Tea, Tetley, Kanan Devan, Chakra Gold, and Gemini. The company has a 100% export-oriented unit (KOSHER and HACCP certified) manufacturing instant tea in Munnar
Munnar
Munnar is one of the most popular hill station in Kerala and in southern India. Munnar is located on the Western Ghats, situated in the Idukki district....
, Kerala
Kerala
or Keralam is an Indian state located on the Malabar coast of south-west India. It was created on 1 November 1956 by the States Reorganisation Act by combining various Malayalam speaking regions....
, which is the largest such facility outside the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
. Tata Tea has subsidiaries in Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
, Great Britain
Great Britain
Great Britain or Britain is an island situated to the northwest of Continental Europe. It is the ninth largest island in the world, and the largest European island, as well as the largest of the British Isles...
, United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
, Czech Republic
Czech Republic
The Czech Republic is a landlocked country in Central Europe. The country is bordered by Poland to the northeast, Slovakia to the east, Austria to the south, and Germany to the west and northwest....
and India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
.
1980s
In the early 1980s, the tea industry in India was experiencing rising input and labor costs and dwindling margins as well as high taxes. India was facing competition on the world market not just from ChinaChina
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...
, but also from other countries entering the business.
In 1983, Tata Tea bought the stake belonging to the James Finlay
James Finlay
James F. Finlay was a Scottish rugby union player.He was capped four times for between 1871–75, including the first ever international. He also played for Edinburgh Academicals....
group to form the individual entity Tata Tea. In the same year, the company decided to move from the commodities business to consumer branding. The first brand Tata Tea was introduced. This was followed by other brands like Kannan Devan, Agni, Gemini and Chakra Gold. In spite of being the largest market in the world, the concept of branded tea took time to be accepted.
In 1987, Tata Tea set up a fully owned subsidiary, Tata Tea Inc., in the USA.
1990s
In the 1990s, Tata Tea decided to take its brands into the global markets. It formed an export joint venture with Britain's Tetley Tea in 1992. Other new enterprises included a majority interest in Consolidated Coffee Ltd. (Tata Coffee Ltd.) and a joint venture to manage agricultural estates in Sri Lanka. Tata Tea Inc. in the United States processed and marketed instant tea from its facility in FloridaFlorida
Florida is a state in the southeastern United States, located on the nation's Atlantic and Gulf coasts. It is bordered to the west by the Gulf of Mexico, to the north by Alabama and Georgia and to the east by the Atlantic Ocean. With a population of 18,801,310 as measured by the 2010 census, it...
, based on sourcing of instant tea products out of Munnar
Munnar
Munnar is one of the most popular hill station in Kerala and in southern India. Munnar is located on the Western Ghats, situated in the Idukki district....
and Kerala
Kerala
or Keralam is an Indian state located on the Malabar coast of south-west India. It was created on 1 November 1956 by the States Reorganisation Act by combining various Malayalam speaking regions....
. In 1993, they entered into a joint venture with Allied Lyons PLC in the UK to form Estate Tata Tetley.
In the mid-1990s, Tata Tea attempted to buy Tetley and the Lankan JVC acquired 51% shareholding in Watawala Plantations Ltd.
In 1997 the company was embroiled in a major scandal known as the "Tata Tapes controversy
Tata Tapes controversy
The "Tata Tapes" controversy was a political scandal in India that was the culmination of a series of allegations of anti-national conduct levied by the then Chief Minister of Assam, Prafulla Kumar Mahanta, against the Tatas - their company Tata Tea in particular...
" which related to funds the company provided to the outlawed United Liberation Front of Asom
United Liberation Front of Asom
The United Liberation Front of Asom is a separatist group from Assam, among many other such groups in North-East India. It seeks to establish a sovereign Assam via an armed struggle in the Assam Conflict...
(ULFA), an armed-struggle group operating in Assam
Assam
Assam , also, rarely, Assam Valley and formerly the Assam Province , is a northeastern state of India and is one of the most culturally and geographically distinct regions of the country...
.
By 1999, Tata Tea’s brands had a combined market share of 25% in India. The company had 74 tea gardens and was producing 62 million kilograms of tea a year, two-thirds of it packaged and branded. Towards the end of the year, the tea business was hit by a drought in much of India. In addition, Russia
Russia
Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...
, once the largest buyer of Indian tea, temporarily withdrew from the market.
2000s
An important step for Tata Tea was the acquisition of the Tetley Group (based in the United Kingdom) in 2000. It was a £271 million ($432 million) leveraged buyout. Tata Tea reportedly outbid the American conglomerate Sara Lee in what was described as the largest takeover of a foreign company by an Indian one to date. At the time, Tetley was the world's second largest tea company after UnileverUnilever
Unilever is a British-Dutch multinational corporation that owns many of the world's consumer product brands in foods, beverages, cleaning agents and personal care products....
's Brooke Bond
Brooke Bond
Brooke Bond is a brand-name of tea owned by Unilever, formerly an independent manufacturer in the United Kingdom, known for its PG Tips brand and its Brooke Bond tea cards.- History :...
-Lipton
Lipton
Lipton is a brand of tea currently owned by Unilever.-History of Lipton Tea:Lipton was created at the end of the 19th century by a grocer, Sir Thomas Lipton, in Glasgow, Scotland. In 1893, he established the Thomas J. Lipton Co., a tea packing company with its headquarters and factory in Hobo ken,...
and had an annual turnover of £300 million. It was the market leader in Britain and Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
and a popular brand in the United States, Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
and the Middle East
Middle East
The Middle East is a region that encompasses Western Asia and Northern Africa. It is often used as a synonym for Near East, in opposition to Far East...
.
Established in 1837, Tetley was the first British
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
tea company to introduce the tea bag to the UK in 1953. The tea bag was followed by the first round tea bag in 1989 and the 'no drip, no mess' drawstring
Drawstring
A drawstring is a string, cord, or rope used to "draw" or tie closed an opening in fabric or other material...
bag in 1997. Tetley now contributes for around two thirds of the total turnover of Tata Tea.
From 2005, Tata Tea began a restructuring exercise to divest direct ownership of plantations in India, a process facilitated by subsidised loans from the World Bank's International Finance Corporation
International Finance Corporation
The International Finance Corporation promotes sustainable private sector investment in developing countries.IFC is a member of the World Bank Group and is headquartered in Washington, D.C., United States....
.
In 2007, Tata Tea launched the campaign Jaago Re! to awaken youth to social issues. The campaign was extended into 2008. In 2009, their campaign revolve around the issue of corruption with a new adline 'Ab Se Khilana Bandh, Pilana Shuru'.
The international trade union
Trade union
A trade union, trades union or labor union is an organization of workers that have banded together to achieve common goals such as better working conditions. The trade union, through its leadership, bargains with the employer on behalf of union members and negotiates labour contracts with...
IUF criticized the company in 2009 for not allowing statutory maternity leave to pregnant tea pluckers
Farmworker
A farmworker is a person hired to work in the agricultural industry. This includes work on farms of all sizes, from small, family-run businesses to large industrial agriculture operations...
, and for locking out
Lockout (industry)
A lockout is a work stoppage in which an employer prevents employees from working. This is different from a strike, in which employees refuse to work.- Causes :...
1,000 workers on the Nowera Nuddy Tea Estate in West Bengal
West Bengal
West Bengal is a state in the eastern region of India and is the nation's fourth-most populous. It is also the seventh-most populous sub-national entity in the world, with over 91 million inhabitants. A major agricultural producer, West Bengal is the sixth-largest contributor to India's GDP...
for so long that the local government began distributing food coupons for emergency rations to workers and their families. In May 2010, a crop sprayer died of suspected poisoning on a Tata estate in Assam
Assam
Assam , also, rarely, Assam Valley and formerly the Assam Province , is a northeastern state of India and is one of the most culturally and geographically distinct regions of the country...
, leading to protests at which two more workers were shot dead by riot police.
Marketing strategy
In spite of a global presence, the brands are distributed differently depending on the location. As Tata tea is far better known in India and a powerful brand there, it is pushed on this market and countries with a large Indian population. Therefore, Tetley is the company's global face and the largest markets focus on the Tetley brand. Where both brands co-exist in one market, Tetley is positioned as the premium brand.Jaago re!!
Tata Tea worked with JanaagrahaJanaagraha
Janaagraha is a not-for-profit organization that aims to strengthen democracy in India by working for citizen participation in urban local government...
on a voter registration drive
Voter registration drive
A voter registration drive is an effort, often undertaken by a political campaign, political party, or other outside groups , that seeks to register to vote those who are eligible but not registered...
, with the campaign name "Jaago re!!" (Wake up!) Following this, the company moved the campaign on to opposing corruption
Political corruption
Political corruption is the use of legislated powers by government officials for illegitimate private gain. Misuse of government power for other purposes, such as repression of political opponents and general police brutality, is not considered political corruption. Neither are illegal acts by...
. The Jaago Re website encourages discussion on this and other social issues.