The buoyant organic tea and coffee market has the makings of becoming mainstream as bigger players are tempted in says Sheila Eggleston
There's enormous potential in organic tea and coffee with affluent, discerning and health conscious consumers quite happy to pay a premium. Spotting the opportunity, the major players are muscling in on an arena previously dominated by niche operators.
Nestlé has launched Nestlé Organic, while Kraft Foods launched Kenco Purely Organic last month. It claims organic coffee has grown 540% by volume and predicts this growth will continue to a value of £54m in the next four years.
"It is 35 to 55 year olds who are driving the growth of organic who buy on emotional values'," says trading controller Doug McGowan.
KF's organic coffee is the same price as its other premium lines £3.34 for 100g.
But how do others see these companies making inroads into their domain? "Mainstream tea and coffee brands joining the organic market has benefited us by increasing the sector," says Clipper Teas director Michael Brehme. "We believe brand loyalty of consumers is just one of the reasons why we continue to outsell our rivals, despite the fact they are better known."
The company claims 50% share of the organic tea market and 98% of the organic instant coffee market [AC Nielsen December 1999]. Out of 44 products, 23 are organic.
Latest lines include a single estate organic green tea, organic coffee granules and a roast and ground arabica coffee from Papua New Guinea. Catering for the demand for single serve packs, it has also launched the latter in individual dinner party' servings at under £1.
Rombouts, too, has added an organic blend to its individual filter coffee range. Packs of 10 containing a blend from Brazil, Costa Rica, Guatemala, Mexico and Peru retail at £2.29.
Colombian coffee has been favoured by two companies. The Food Brands Group has extended its repertoire to include Percol Sanctuary Organic. This freeze dried instant coffee also follows Fairtrade principles, paying farmers a premium and a contribution towards sacred land reclamation. FBG has also revamped the packaging of its Espresso and Americano lines.
Meanwhile Nairobi Tea & Coffee has launched a 227g pack of single estate Colombian organic coffee.
"The organic sector in multiples and co-ops showed an increase of 41% during the last six months of 1999 [AC Nielsen]," says Jacksons of Piccadilly brand manager Debbie Drake. "With the organic market valued at an estimated £552m last year, it's become a significant market serious suppliers can no longer ignore."
Jacksons' three mood' teas have a strong shelf appeal to fit on both standard and organic fixtures. Energising blends organic breakfast tea with South African rooibos, Soothing is organic green tea and camomile flowers, and Refreshing is organic tea and peppermint leaves. "To offer a strong product line, the me too' trap had to be avoided. Offering a Jacksons of Piccadilly organic Earl Grey would be nothing new," says Drake.
According to Premier Brands' Hot Beverage Report 2000, Ridgways Fairtrade Organic leads in organic teabag sales with a 79.7% share [Information Resources]. But Twinings' entry into the market is seen as the most successful gaining a 12.4% share.
Until recently Twinings had only an organic everyday tea brand. Now it has organic versions of Earl Grey, English breakfast, camomile and peppermint tea.
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