In Tea, Three Centuries of Tradition Matter

Mark Nicholls, Tea Ambassador, Twinings, discusses and answers the following questions:

- Twinings is a small component of one of ABF’s five divisions: Grocery, which comprises the group’s consumer-facing businesses selling its premium teas and malted beverages in more than 100 countries.
Ovaltine is the big hitter in the Asias, not premium teas.
Clearly a gap then, for ABF ..

- Developing markets appear to be more tea-affectionate than developed countries such as the United States, the EU and Japan, which are predominantly coffee consumers
Comment

- On a production basis, tea seems to be growing faster than coffee, according to the International Tea Committee
Explain

- In Malaysia, the 2 biggest tea companies are BOH (36% of market share) and Lipton (22%), both local, and both catering to the masses.
Where does Twinings sit on the price-quality Malaysia?

- Twinings 2 most popular brands are English Breakfast tea and Earl Grey tea ( Black Tea).
BOH and Lipton biggest markets are actually their black teas, which are Twinings most profitable teas too.
Is Twining competing with their black teas too even if the market is monopolistic as it is?

- Twinings also offer green, herbal and fruit teas
There have been talks and research that suggest these types of tea are gaining traction among Malaysian consumers.

- Twinings market share currently in the Malaysian tea industry?

- Most of Twinings teas are manufactured in the UK, with some in China and Poland.
Are you looking to build a manufacturing plant in Malaysia?

- Malaysia is in the top-third of tea consumers worldwide, ranking 49th out of 141 countries surveyed.
Tastes seem to be 'going premium' -- is there a way to quantify it?

- Is the growth sufficiently strong from the Twinings viewpoint

- You own Nambarrie, an Irish tea company based in Belfast and in trade for over 140 years.
Five years ago Twinings announced their decision to close the Nambarrie plant, with global competition being blamed ..
A mass market where price and provenance matter for far less, clearly?

- Having consolidated UK manufacturing operations and moved some production to China and Poland in late 2011, how have you maintained the quality and supply?

- What of issues like skilled labour and management staff?

- And away from Australian markets like Australia where u had a good 2012 - what of new markets like Asia?
What of the marketing strategy here?

- Not only is Twinings the holder of a royal warrant, it has since 1964 been in the ownership of the FTSE 100 firm Associated British Foods
As a royal warrant holder what has this meant in terms of how business is conducted?

- And as a member of a PLC what does ownership since 1964 mean in terms of how business is controlled from above

- It is said that Twinings holds the world's oldest continually-used company logo, and is London's longest-standing rate-payer, having occupied the same premises on the Strand since 1706
What does all this mean, from a marketing standpoint?
How do you use this history - tradition - to your advantage, if at all?