FMCG major Tata Consumer Products Ltd (TCPL) is banking on premiumisation to accelerate growth in its packaged tea business, a senior company official said on Tuesday.
Tea continues to dominate TCPL’s beverage portfolio, though its coffee segment—still a small part of the business—is expanding at a rapid pace. Puneet Das, President – Packaged Beverages (India and South Asia), said premiumisation is central to unlocking value in the tea category.
“Tea comprises a major chunk of our packaged beverage business, and we see premiumisation as the way to drive growth,” Das noted.
TCPL, formerly Tata Tea, offers both orthodox and CTC teas under a mix of premium and economy brands. The company’s distribution is heavily skewed towards general trade, which contributes about 80% of sales, while e-commerce is emerging as a complementary growth channel.
Das added that West Bengal remains one of the strongest markets for loose tea, across both premium and CTC varieties.
With consumers showing greater willingness to spend on higher-quality beverages, TCPL is positioning itself to capture the shift through a sharper focus on premium tea offerings, even as it nurtures its growing coffee portfolio.