The ongoing decline in black tea sales hit UK revenues and profits at Tetley Tea owner Tata Global Beverages.
Newly filed accounts for Tata Global Beverages GB show a 3.2% decline in sales in the year to 31 March 2018 back to £140m.
Sales in the UK market dropped by 5%, which the rest of the world sales were down rose 1.8% to to £39m.
UK market share also slipped from 17.6% to 17.2% last year.
Mounting costs, largely related to the weak pound, meant operating profits fell 38% to £3.8m and pre-tax profits dropped 39.6% to £4.5m.
The accounts stated that performance was hampered by “the decline in everyday” black tea and a “highly competitive” UK market.
However, it insisted it continues to invest behind its brands, focussing on product innovations and growing segments such as speciality tea.
A Tetley spokeswoman stated: “Like many suppliers, rising commodity costs have been a significant factor and changing tastes in tea have meant we have seen a decline in overall tea consumption, but we are addressing this by focussing on innovations relevant to changing consumer habits.
Earlier this summer, the brand launched cold water-brewed Tetley Cold Infusions aimed at attracting new shoppers into the category, notably millennials that eschew traditional tea.
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