Page 56 - Retail World Tob - May 2020

HOT BEVERAGES FROM PAGE 53 of its products claimed to be now bio-based – and a focus on assisting tea plantation farmers to change their farming practices for the better. Looking ahead, Mr Trovato believes there is huge opportunity in all sections of the tea category. “There’s a fantastic opportunity for black tea, which will remain core,” he said. “It’ll be about innovating and emphasising authenticity and provenance, which is increasingly important to consumers when it comes to purchasing decisions.” As to flavoured and infused tea, Dilmah is highlighting the exceptional performance of its Natural Infusions range, which received the Product of the Year Award late last year in the tea category. The range, built around Sri Lanka’s traditional natural medicine, spices and herbs, includes caffeine-free combinations such as cinnamon, moringa, turmeric and pepper, containing “powerful antioxidants” and “anti-inflammatory benefits”. “Flavoured and infused tea will continue to exist and thrive, but black tea will remain a staple,” Mr Trovato said. Herbal and fruit teas on trend Eatrite Australasia Managing Director Ken Henderson says the changes black tea is facing are especially evident in Unilever’s intent to sell its tea operations, while herbal and fruit teas are trending. “It’s clear from various tea reviews by the major supermarkets that there’s a move to herbal and fruit tea mixtures,” he said. “However, black teas are very popular and still make up the majority of national tea sales. “We’ve found our Nature’s Cuppa organic tea sales are on the increase. However, we’re coming from a sale base that’s considerably smaller than that of the major tea companies. “It appears the consumer is moving to higher quality organic tea. Nature’s Cuppa sales are moving in the right direction.” Mr Henderson adds that many companies are introducing new formats and reformulating existing products to improve appeal. Referring to the coronavirus crisis, he says the company has not yet encountered difficulty in acquiring stock, even though sales have increased dramatically in recent weeks. “One aspect of our sales, particularly with our organic coffee, is that consumers seem to be stockpiling coffee more than tea,” he said, adding that the “great-tasting” Nature’s Cuppa range of premium, Arabica freeze-dried instant-coffee granules is “selling very well, and we’re looking at options going forward with this product”. Nestlé: iconic brands feel the love Nestlé Head of Marketing Beverages Olga Starush tells Retail World the food and beverage company is attracting continual growth in the coffee market overall. “With both out-of-home and in-home coffee consumption on the rise, Nestlé’s coffee business is experiencing strong growth momentum because Australians continue to love the iconic coffee brands in our portfolio: Nescafé, Nespresso and, most recently, Starbucks,” she said. Every year, she adds, Nestlé wonders whether coffee has reached its full potential, only to realise there’s still plenty of room for growth. “This is due to increased penetration from younger drinkers and shoppers, but also immigrants who come in from countries where coffee is less popular but who soon take to the coffee culture here,” Ms Starush said. “But the primary driver is premiumisation, which can be clearly 54 RETAIL WORLD MAY, 2020