Premium foods in Poland to join The Tata Tea Group of Companies

Strategic expansion of Tetley business in Poland to support organic growth through a diversified business model

The TATA Tea Group of Companies, which includes Tata Tea and the UK-based Tetley Group, has agreed terms to bring Premium Foods, a leading distribution business in Poland’s growing tea market, into the group.

Premium Foods has a long-standing relationship with the TATA Tea Group as exclusive distributor for the Tetley and Vitax tea brands in Poland, and is the country’s second largest tea distributor. This expansion will help Tetley to build on its strong position in the Polish tea market, where it currently holds an 8.9 % value share.

The agreement incorporates the distribution channels and other assets associated with the Premium Foods business, and all employees will be transferred to Tetley Polska.

The group’s strategic expansion into distribution will support its ambitions to grow organically in a well established and strong market, alongside the existing manufacturing arrangements for its brands and other Premium Food customers.

This announcement equally marks a further step in the aims of the wider Tetley group to double the size of its worldwide business over the next five years. Poland presents an attractive growth opportunity for Tetley, with the ninth largest packaged tea market in the world (value), and is particularly buoyant in the high value speciality tea sector.

Now the fourth highest of the top ten global tea markets in spend per capita, the country’s tea sector is currently growing at a rate of 13% (value) year on year , and Poland represents the Tetley Group's largest single Fruit & Herbal market. Speciality teas and the tea sector in general are forecast to continue growing by 5% and 6% CAGR respectively.

Simon Carpmael, Director of Northern Europe for Tetley, said: “Speciality teas continue to drive growth in the market and this is one of the key areas where we expect to capitalise on opportunities for expansion. This strategic expansion is therefore a logical step in the evolution of our business model, and presents a huge opportunity for Tetley to accelerate growth in the buoyant Polish tea market.”

Notes to editors

The Tetley Group has been trading in Poland as Tetley Polska zoo. since 1994.

Together with TATA Tea, Tetley is the second largest tea company in the world, selling in over 40 countries.

Tetley has a rich heritage in tea going back to 1837 when the business was established in the UK, and a track record in innovation. It was Tetley that introduced the tea bag to the UK in 1953 and then revolutionized the market by launching the first round teabag in 1989

For further information, please contact:

FD
Victoria Wallin
00 44 (0)207 269 9360
00 44 (0)7973 823 119
Victoria.Walin@FD.com

Esyllt Dafydd
00 44 (0)20 7269 7174
00 44 (0)7979 856 056
Esyllt.Dafydd@FD.com