Prices of Pukka tea are rising twice as fast as those of the wider herbal and fruit tea category, according to The Grocer analysis of Assosia data.
Pukka’s teas rose 6.3% on average in the month to 4 December, with four in 10 products seeing an increase. This compared with a 3.1% increase for the category.
Some 15 products saw a 25% increase, from £4 to £5 in Waitrose, including 20-bag packs of Pukka Caffeine-Free Turmeric Active, Pukka Chamomile Vanilla Manuka Honey and Pukka Elderberry & Echinacea.
The latest increases in shelf-edge prices mean Pukka teas are now 51.9% more expensive on average than a year ago.
This was above the average inflation of the fruit and herbal tea category, which was 20.1% in the past year. Inflation for the whole tea category, meanwhile, ran at 14.5%.
A spokeswoman for Pukka said tea had “been undervalued for years”, pointing to the fact the category accounted for “just 3% of the global non-alcoholic beverage market by value”, despite making up 25% of total volumes.
“This remains a time of considerable inflation,” the spokeswoman said. “Our pricing reflects our commitment to create value for all, recognising the true costs of production and at the same time driving up value for consumers with the best blends produced in a more sustainable way.”
The rise in shelf-edge prices is also partly explained by a decrease in non-loyalty, single product promotions, which were down from 29 on 4 December 2022 to 18 on 4 December 2023.
Some 12 Pukka lines increased by 81.5% in the past year from £2.75 to £4.99 in Morrisons, including 20-bag packs of Pukka Chamomile Vanilla & Manuka Honey and Pukka Cleanse Fennel & Peppermint.
These products were on single product promotion last year, but were not this year.
The rises come as news of mass redundancies at Pukka by owner Lipton Tea & Infusions came to light. The brand is to be fully integrated into the tea operations of Lipton Tea and Infusions, with as few as 30 of its 120 staff being retained.
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