The world's biggest own-label tea company wants to stir up excitement in the UK market following the acquisition of a small Dorset company.
The US-based Harris Tea Company acquired Wimborne-based own-label tea business Keith Spicer on 31 December for an undisclosed sum and revealed its plans for the UK market in an exclusive interview with The Grocer this week.
Spicer, which recorded £20m sales last year, is currently the UK's third-largest tea packing company for the own-label industry, but expected its business and share of own-label market to grow by maximising Harris' "global sourcing strength," which includes Calcutta-based Jay Tea the largest own-label tea supplier in India.
British retail customers and consumers would soon see the benefits of the acquisition, said Gilbert Zaris, vice chairman of Harris Freeman, the holding company for Harris Tea.
"This acquisition marks our first entry to the UK the biggest black tea-drinking country in Europe," said Zaris. "There is a lack of innovation in own-label tea in the UK and we will look to develop this area in terms of flavours and packaging concepts. The expertise we have built in the US will be of great benefit to Keith Spicer. Retailers will be encouraged by this move as it brings a new dimension and a statement of intent to the UK own-label tea industry."
As well as cost efficiencies in the supply chain, Spicer and its 160 employees would benefit from Harris' "genuine desire" to invest in the Dorset plant, said Zaris.
In addition to own-label tea, Spicer owns Dorset Tea and St James's Teas brands. Under Harris' ownership, Spicer will expand Dorset Tea's limited distribution in the county across more retail outlets and foodservice while upmarket St James's Teas will be targeted to the Far East market.
Harris' entry to the UK comes after a strong year of sales for own-label tea, which rose 5.8% in value to £105.7m [Nielsen] driven by commodity hikes. Volumes dipped by 0.8%.
The US-based Harris Tea Company acquired Wimborne-based own-label tea business Keith Spicer on 31 December for an undisclosed sum and revealed its plans for the UK market in an exclusive interview with The Grocer this week.
Spicer, which recorded £20m sales last year, is currently the UK's third-largest tea packing company for the own-label industry, but expected its business and share of own-label market to grow by maximising Harris' "global sourcing strength," which includes Calcutta-based Jay Tea the largest own-label tea supplier in India.
British retail customers and consumers would soon see the benefits of the acquisition, said Gilbert Zaris, vice chairman of Harris Freeman, the holding company for Harris Tea.
"This acquisition marks our first entry to the UK the biggest black tea-drinking country in Europe," said Zaris. "There is a lack of innovation in own-label tea in the UK and we will look to develop this area in terms of flavours and packaging concepts. The expertise we have built in the US will be of great benefit to Keith Spicer. Retailers will be encouraged by this move as it brings a new dimension and a statement of intent to the UK own-label tea industry."
As well as cost efficiencies in the supply chain, Spicer and its 160 employees would benefit from Harris' "genuine desire" to invest in the Dorset plant, said Zaris.
In addition to own-label tea, Spicer owns Dorset Tea and St James's Teas brands. Under Harris' ownership, Spicer will expand Dorset Tea's limited distribution in the county across more retail outlets and foodservice while upmarket St James's Teas will be targeted to the Far East market.
Harris' entry to the UK comes after a strong year of sales for own-label tea, which rose 5.8% in value to £105.7m [Nielsen] driven by commodity hikes. Volumes dipped by 0.8%.
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