TATA Consumer Products Limited - Integrated Annual Report 2020-21

International business performance

Consolidating international presence

We are strengthening our international presence in our key focus markets — UK, USA and Canada. Apart from rejuvenating the black tea category, we continue to strengthen our presence in green, specialty and fruit & herbal teas. We have also introduced RTD offerings like Kombucha and strengthened our coffee range with new blends and formats like K-cups (pods).

Additionally, we exited our non-core businesses in USA and Australia during the year to enable greater focus on our core branded businesses. During the year, international markets saw an increased in-home consumption of tea and coffee, benefitting the category

Progress in FY 20-21

UK business had a good year, with 2% revenue growth (constant currency) and a much faster EBIT growth, driven by strong overheads management and lower trade promotion coupled with stable commodity costs
While OOH and wholesale channels came under pressure due to COVID, the impact was mitigated by driving distribution gains in the discounter channel and increased activation in the online channe
Tetley grew share in the growing segments of Decaf, F&H and Green tea
Tetley enveloped OOH range was relaunched with new product and 100% recyclable packaging. It comes with a new recyclable envelope, alongside the already compostable teabag, the first of the top 3 brands to do this in the sector
Good Earth reported good first year with a digitalfirst model and strongly resonated with the younger generations and saw good traction in the e-commerce channel. Today, 46% of people under 35 recognise the brand, reflecting on 61.6% of sales being Incremental and 27% of shoppers being completely new to the category
Good Earth also launched kombucha bottles brewed from the finest black teas and inspired by live cultures
teapigs maintained #1 super premium brand position in the UK

2%

Growth in revenue*

18%

Teapigs growth in revenue^

20%

Value market share(in every day black)**

Figures of FY 20-21 | *Constant includes teapigs business | ^ Constant currency growth
**Source: Nielsen Value share, Moving Annual Total (MAT) basis – March 2021

USA

Progress in FY 20-21

E-commerce channel saw excellent growth growing triple digit during the year
Coffee had a strong year with a volume growth of 7% driven by K cup growth outpacing Coffee bags
Growth in tea was driven by innovation, new customer acquisition & e-commerce
Tetley posted the highest year-on-year growth led by a significant uptick in Tetley Flavors of Britain revenue from key customers
Innovations like Good Earth Sensorial Blend and Premium Tetley Flavors of Britain were recently launched on e-commerce with strong trial and conversions
Innovation momentum also continued in coffee with good performance of 32 count K Cups and Barista Blends
Divested stake in non-core food service businesses-Empirical Group LLC and Southern Tea LLC to the JV partner Harris Tea Company LLC, USA

9%

Growth in coffee revenue*

16%

Growth in tea revenue*

4.6%

Coffee bags market share^

Figures of FY 20-21 | * Constant Currency, excluding Food service (Empirical) | ^Source: *Nielsen –Value share, Moving Annual Total (MAT) basis–March 2021

CANADA

Progress in FY 20-21

Robust revenue growth driven by capitalising on increased in-home consumption of tea
Tetley continues to be the #1 brand in the market with both regular and specialty teas outpacing the category during the year
Tetley introduced two more Super Teas in Canada – Tetley Immune + herbal tea and Tetley Sunshine herbal tea to strengthen our credentials in the health and wellness space
Tetley Specialty Tea was the volume leader in Specialty Tea in Canada driven by the success of Tetley Super Teas
Continued consumer marketing investment in digital advertising and sampling generated both awareness and trial which drove brand success

15%

Growth in revenue*

35%

Specialty tea growth in revenue*

29.3%

Market Share^

Figures of FY 20-21 | * Constant Currency | ^ Source: *Nielsen –Value share, Moving Annual Total (MAT) basis–Mar’21