Strengthen and accelerate core business

We remain committed to strengthening and accelerating our core business through strategic efforts in key identified areas. Our focus has been on strengthening our brands, expanding our market presence, and delivering innovative products.

Sales and distribution expansion

Strengthening and expanding our Sales and Distribution (S&D) network is critical to realising our ambition of being a leading FMCG Company. We have rapidly scaled up our network during the year, and are now focusing on enhancing semi-urban and rural distribution. In addition, we have focused on building capability for our sales teams to ensure market agility and increased effectiveness.

We have supported and strengthened our core business, while also nurturing new product launches and reducing their time to market. We continue to focus on enhancing our e-commerce and modern trade presence and have recorded significant gains in alternate channels.

DIRECT DISTRIBUTION FOOTPRINT INCREASE

During the year, we increased the direct distribution by 15%. This has allowed us to take our portfolio to a larger outlet universe with more impact. Tata Consumer currently has a direct reach of 1.5 million outlets across India, a 2x+ increase from two years ago.

Strong Impetus on reach

PREMIUM GROCERY OUTLET PROGRAMME

Samruddhi, our 100% digital Trade Loyalty programme, has completed 2 successful years. The programme has driven resource optimisation coupled with digitalisation, direct-to-outlet communication, and payouts.

Tailor-made consumer promotions, promoter activation, festival communication, NPD promotion, and Share of Shelf / Planogramming are some of the key interventions that led to a 58% growth in the outlets that were part of the programme.

The impact of Samruddhi on the Stand-Alone Modern Trade (SAMT) channel has been outstanding, with the contribution of SAMT to overall General Trade sales doubling to 10%.

Increasing presence in South India

We are expanding our presence in South India across tea, coffee, salt and spices with the launch of South-specific products to cater to regional consumers.

In tea, our Chakra Gold and Kanan Devan brands continued to make strong inroads into the South market backed by strong brand campaigns. Tata Coffee Grand was restaged with a new pack design.

In both Tea and Coffee, we continued to gain ground in the South. We have identified the rural market as an area of opportunity and are focussing on building distribution in rural and semiurban markets now.

In Salt, we launched Shuddh a brand specifically targeted to the South market. In the spices category, a range of customised spices was launched under Tata Sampann.

DATA-DRIVEN EXECUTION PLANS

Data insights are key to making and executing shopper marketing plans. These plans are continually updated in line with market trends and opportunities to sharpen execution.

HIGH-QUALITY SELL-OUT SUPPORT – 360 DEGREES MARKET SUPPORT

As part of our ongoing efforts, we have pursued innovative sell-out solutions to drive growth. All Samruddhi SAMT stores have execution plans which are digitally tracked, to drive higher shelf throw and improve Share of Shelf through 3rd party merchandisers.

BUILDING AN AGILE RURAL AND WHOLESALE NETWORK

During the year, we focused on identifying SKUs relevant to the rural network and key feeder markets to drive reach. With key market mapping and geo-tagging, the plan is to automate the rural network and augment feet-on-the-ground accordingly. With a 2.5X increase in wholesale direct reach achieved during the year, the intent was to engage effectively with the wholesale network and make it an extended arm of the sales system. To enable this, Lakshya our wholesale loyalty programme, was launched along with key focus SKUs defined for each geography.

2.5X

Increase in Wholesale direct reach achieved during the year

Lakshya

Launched as a wholesale loyalty programme, to engage effectively with the wholesale network

Consumers engage with Tata Consumer products in various categories- from Tea, Coffee, Salt, and vital staples to convenient meals - across millions of outlets in General Trade, Modern Trade , e-commerce and institutions.

OMNI-CHANNEL APPROACH

Consumers engage with Tata Consumer products in various categories- from Tea, Coffee, Salt, and vital staples to convenient meals - across millions of outlets in General Trade, Modern Trade, e-commerce and institutions. Our assortments are tailored to meet changing consumer needs and shopping behaviours in each retail channel, helping us establish leadership positions in many categories. We have also devised a robust omnichannel process to give consumers a unified experience, especially on product pricing.

E-COMMERCE

E-commerce has continued to grow at a rapid pace in FY 22-23, up 32% year-over-year. Several new initiatives were carried out during the year, including a dedicated customer marketing vertical, the use of data and analytics to generate insights and improve efficiency, and redesigning of the team structure to include a key account team for driving sales.

E-commerce | Key Highlights

Tata Consumer continues to be the market leader in Packaged Tea category for 23 consecutive months

Strengthened market leadership position in Pulses and Salt categories at key accounts

Tata Sampann Dry Fruits achieved double-digit market share in one of the largest key accounts

Doubled revenue in Coffee category with high double-digit shares in one of the largest key accounts

E-commerce performance

e-Commerce contribution to India Sales(%)

NPD contribution to e-Commerce sales(%)

32%

Growth in e-Commerce sales in FY 22-23

MODERN TRADE

During the year, Modern Trade channel grew 21% and increased its share in India Sales to 14%. The channel continued to play a vital role in the innovation agenda, with 69 new SKUs on shelf during the year.

MT performance

MT contribution to India sales(%)

NURTURING NEW PRODUCTS

We have crafted an agile, scalable, and sustainable model to support core business and foster New Product Development (NPDs). The market opportunity is assessed at a category level to ensure successful launches, with necessary stock and point-of-sale materials (POSM) arranged for each NPD.

Subsequently, plans are implemented state-wise over 60 days – starting with ‘Innovation Week’. Additionally, a robust framework for feedback has been established to course correct and drive efficiency.

We are ready to launch 200 new products yearly with a micro-market-based execution and 360-degree market support to ensure a successful launch. Moreover, e-commerce and Modern Trade are key channels for testing and piloting new launches, allowing us to refine the product before rolling it out across General Trade.


Investing in our brands

DIFFERENTIATED BRAND CAMPAIGNS

To celebrate the 75th year of India’s Independence, Tata Tea Premium - Desh Ki Chai launched a limited edition ‘Desh Ka Garv’ tea-set collection, special tin packs and a film commemorating India’s proud moments post-Independence.

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To combat the issue of brand lookalikes in Uttar Pradesh, Tata Salt launched a campaign featuring Ravi Kishan, a well-known celebrity. The aim was to educate consumers that “not every orange pack is Tata Salt” and that a low-quality salt can impact your health.

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Tata Tea Premium celebrated Republic Day with its ‘Desh ki Jhanki’ campaign, showcasing unique virtual jhanki or parade. In line with the brand’s hyper-local approach, the campaign allowed users to enjoy an immersive experience through a 360-degree viewing of 3D parades at IndiaKiChai.com.

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Tata Tea Gemini, the no.1 brand in Telangana, launched the Never Settle Campaign - an antiadulteration initiative to create awareness about the scourge of adulterated tea rampant in Telangana region.

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Building on the ‘Dil Ki Suno’ campaign, Tata Tea Gold collaborated with celebrated mountaineer and Padma Shri awardee Premlata Agarwal, discussing women’s stories of dilemmas and how they overcome them to follow their heart’s calling.

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Rajasthan

Tata Tea Lal Ghoda and Kala Ghoda
were restaged with new packaging
and proposition to celebrate the
essence of Rajasthani hospitality

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Maharashtra

To celebrate ‘Sarvgunni’- spirit of Marathi Women-Tata Tea Premium hosted a unique all-women Shobhayatra (Bike Rally) in Pune and Aurangabad on Gudi Padwa.

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Tamil Nadu

Tata Tea Chakra Gold
celebrated Deepavali in Tamil
Nadu by launching a limitededition
festive pack, paying
an ode to the festival of lights

Andhra Pradesh

For Navaratri, Tata Tea Chakra Gold in partnership with Lepakshi Handicrafts, celebrated Kondapalli - an art form with a rich tradition, and launched festive packs

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West Bengal

Bringing alive the joy of Durga Puja, Tata Tea
Gold launched uniquely designed packs and a
Tea Table book depicting 5 famous art forms
of West Bengal – Shola, Dokra, Terracotta,
Kalighat and Krishnanagar Clay Dolls. Also,
inspired by the state’s rich ‘Shilpokala’, a
special series of 15 festive edition packs was
crafted specially by the artisans of Bengal

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Bihar and Jharkhand

Tata Tea Leaf celebrated the festival of Chhath with the launch of four special packs backed by a 360 degree campaign in Bihar and Jharkhand

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Punjab

Tata Tea Premium’s Lohri campaign ‘Vaddi Khushiyaan De’ Tappe gave consumers distinctive experiences using AI-driven hyper-personalised Tappas sung by Shehnaz Gill

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PROMOTING WELLNESS

Tata Salt Immuno launched a campaign to create awareness about the benefits of zinc fortification including better immunity.

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Tata Copper+ launched a campaign to highlight the unique proposition of goodness of water stored in copper vessels, and available in packaged drinking format as Tata Copper+.

ENHANCING BRAND EQUITY IN INTERNATIONAL MARKETS

To strengthen our position in one of our key international markets - the UK, we are pursuing a three-brand strategy.

Teapigs launched its first-ever TV ad ‘Live large, Brew big’ in the UK, which saw great traction and positive reviews amongst the target audience.

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Good Earth UK initiated a collaborative marketing scheme with Nakd, pairing its teas with Nakd’s snack bars.

Tetley was back on television screens with ‘For The Love Of Tea’ TVC, amplified across all social platforms.

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Tetley Super Teas continued to strengthen its presence in Canada with direct-to-home tea sampling and social media campaigns.

Driving premiumisation

TEA AND COFFEE

Tata Tea Gold Care, a variant launched less than two years back, now contributes to ~5% of the Gold franchise turnover. Our premium brands, including Tata Tea Gold Care, Chakra Gold Care, Tata Tea Premium TeaVeda, Tetley Black, Tata Tea Gold and Chakra Gold have grown faster than the rest of our portfolio during the year.

Launched Tata Tea Gold Saffron a premium tea with the opulent taste of saffron.

Taking ahead the hyperlocal approach of Tata Tea Premium, the brand launched unique street-tea variants from various parts of the country as part of Tata Tea Premium Street Chai collection.

Launched Tata Coffee Gold – 100% freeze-dried coffee offering an elevated coffee experience.

Tata Coffee Grand Premium, a 100% coffee blend with flavour-locked decoction crystals, was launched to cater to consumer tastes and preferences in the non-south region. The new launch was supported by a captivating film using ASMR (Autonomous Sensory Meridian Response), that showcases the sensory journey of Tata Coffee Grand Premium from bean to the cup.

Launched Tetley Gold Brew, a premium blend in the UK market.

Launched Tetley Live Teas in Canada, a line of herbal teas designed to encourage consumers to be more mindful and present, to bring more joy to one’s life. The launch was supported by an integrated communications campaign called “Live in the Moment” with the aim of focusing on mental wellness.

Focus on Non-Black Tea
in the UK

We continue to focus on non-black teas, considering the potential for high-end premium teas in Fruit and Herbal in the UK and teas with functional benefits. In a strategic move, Tetley Super Teas have been given a makeover. Several new SKUs have been created to meet popular functional demands, including sleep aids, enhanced digestion, improved well-being, and energy boosters. The focus remains on core ‘café range’ of products led by the universally acclaimed Peppermint.

Good Earth’s unique blends have been especially well-received among the younger generation. Winning Best Taste awards and great online reviews, its top-selling products - Ginger Turmeric and Lemon; Green Tea and Moroccan Mint; and Hibiscus Rose and Sweet Berries - are all non-black teas.

BOLSTERING OUR SALT PORTFOLIO THROUGH MULTI-BRAND PLAY

To strengthen our portfolio approach within the salt segment, we launched a premium solar salt and several value-added salts fortified with essential micro-nutrients to offer consumers a bouquet of offerings to choose from, keeping in mind the growing importance of health and wellness. The key launches during the year included:

Through its assurance of purity and steadfast mission to deliver superior quality products to more than 180+ million households across India, Tata Salt truly stands tall on its brand promise of ‘Desh ki Sehat, Desh ka Namak’.

Shuddh by Tata Salt to unlock gains in the midtier solar salt segment in Southern India.

Tata Salt Immuno with its category-first unique proposition of added Zinc.

Tata Salt Vitamin Shakti fortified with Vitamin D and Calcium

Tata Salt Pink Salt to accelerate upgradation from base iodised salt.

Premium and popular variants of rock salt with natural minerals.

Tata Salt Iron Health - Salt with Iodine plus Iron to address widely prevalent iron deficiency.

Creating purpose-driven brands

These initiatives demonstrate our attempt at creating brands that make a positive impact on society.

Tata Tea released a film with actor Pankaj Tripathi to spread awareness about climate change and encourage people to take small steps to combat it.

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Tata Salt launched the ‘Har Sawaal Uthega’ campaign with the theme ‘Desh Ki Sehat, Desh Ka Namak’, aimed at amplifying the voices of India’s youth.

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Tata Tea Agni’s Masterbrand consolidation was completed with a TVC with the tagline ‘Josh Jagaye Har Roz’ featuring real-life stories of women’s hockey team members to showcase their inspiring journeys.

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Tetley Green Tea Immune promoted the goodness of Vitamin C and antioxidants through its #everyBODYcan campaign.

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Tata Tea JaagoRe organised the ‘Champions of Tomorrow All India Finals - Season 2’ to provide a platform for promising athletes to excel.

In the US market, Eight O’Clock Coffee partnered with the International Women’s Coffee Alliance under the ‘Barista Blends Rooted in Responsibility’ campaign to empower women in the coffee industry.

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Starbucks and Sabyasachi contributed to the NGO Educate Girls through their merchandise partnership and positively impacted the lives of 3,000 girls.