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Tata Tea phase out four brands in revamp

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Tata Tea phase out four brands in revamp

Tata Tea has phased out support for four brands--Brahmaputra, Lucky Cup, Leo and Chola - as part of its brand rationalisation. P Siganporia, deputy-managing director, said that these brands had shrunk in terms of potential for growth as well as profitability.

While Leo catered to the economy segment of Maharashtra, Karnataka and Andhra Pradesh, Brahmaputra, a strong 100 per cent Assam tea, was marketed in Gujarat and Madhya Pradesh, while Chola was sold in Tamil Nadu.

The focus of the company will shift towards some existing brands, namely, Tata Tea, Kanan Devan and Agni. Kanan Devan also happened to be Tata Tea's first brand to be packed in polypacks followed by Tata Tea Premium.

Tata Tea enjoys a market share of 8 per cent, Agni of 4 per cent, Kanan Devan of 4 per cent and other brands from its stable 4-5 per cent. In the branded packet tea market, Tata Tea has a market share of 17-18 per cent.

The company is planning to launch a premium brand in the leaf category, which would be pitted directly against Taj Mahal from the Hindustan Lever Ltd (HLL) stable. Tata Tea is also toying with the idea of launching Tetley brands in India. Tata Tea already has a joint venture with Tetley, Tata Tetley, in south India, which is an export oriented unit.


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