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


Growth in revenue*


Teapigs growth in revenue^


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


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


Growth in coffee revenue*


Growth in tea revenue*


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


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


Growth in revenue*


Specialty tea growth in revenue*


Market Share^

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