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tea REFRESHINGLY GOOD FOR BUSINESS THE TEA REPORT CONTENTS Page 2 United by our love of tea Page 3 An exciting profit opportunity Page 4 Tea is the top choice Page 5 A golden opportunity - if you get it right Page 6 The problem areas Page 7 Serving the perfect cup of tea Page 8 The right product at the right time Page 9 The reassurance of the right brand Page 13 Health and vitality Page 16 Doing our best for the planet Page 17 Summary Page 22 A brief guide to the world of tea Page 23 THE TEA REPORT UNITED BY OUR LOVE FOR TEA From the mountains of Afghanistan to the river basins of Zambia, tea is the beverage of choice for millions of people every day. But tea is more than just a beverage. It has become inextricably entwined with lifestyle around the world. In Austria, tea drinkers add a dash of their favourite spirit. In Nepal, it is always served with sugar, and in Tibet, it is mixed with salt and butter made from rancid yak’s milk to form a drink called ‘tsamba’. WHY WE DRINK IT There are a number of reasons why people drink tea. In many cultures there is a ceremonial aspect to preparing, serving and drinking tea and it is often a basis for a social occasion. Other reasons include: • Refreshment • Comfort & warmth • It positively contributes to our emotional well-being but can also help form a natural break in the day THE GREAT BRITISH TRADITION Tea first went on sale in England in 1658 and its popularity grew as it became more universally available. At the beginning, it was a luxury reserved only for the very wealthy, but by the 19th Century, it was enjoyed by people across the whole spectrum of society. Now it is the nation’s favourite drink.1 TRUST THE EXPERTS Unilever is the world’s biggest tea company, employing more than 40 specialist buyers, together representing more than 100 years of accumulated knowledge of tea. Our buyers purchase 300,000 tonnes of tea a year – that is around 12% of all the black tea produced globally. We have our own tea estates and factories in East Africa, and at our plantation in Kericho, Kenya, we have established the industry benchmark for best practice in tea cultivation, with the welfare of our people being a paramount concern. REFRESHINGLY GOOD FOR BUSINESS For foodservice and hospitality operators, the right tea offering can bring in new customers, generate extra sales and promote a quality message. This report is designed to demonstrate how you can use tea to help you compete in today’s tough economic climate. If you want to know about tea, we are the people to ask. Our best-selling Lipton Yellow Label is sold in 150 countries and is the world’s second biggest non-alcoholic beverage brand, after Coca Cola. 2 In the UK, Lipton is joined by PG tips, the nation’s favourite tea.3 Of the 150 million-plus cups we consume every day, some 35 million are made with PG tips tea.4 1 National Drink Survey, September 2008 2 TO Basis, net proceeds of sales IFRS equivalent – average 2007 3 Latest IRI Data to 16 May, 09 Based on Normal Tea Bags 4 Latest IRI Data to 16 May, 09 Based on Normal Tea Bags Page 5 THE TEA REPORT AN EXCITING PROFIT OPPORTUNITY The global economic turmoil has created a new kind of consumer – time poor and cash poor. A MORE DEMANDING CONSUMER People have less money in their pockets and they are more reluctant to spend it. In January 2009, Real Business magazine wrote, ‘To save pennies, more and more of us are spurning restaurants in favour of takeaways.’ 5 When people eat out today, their expectations are higher than they were 12 months ago. They want to be rewarded with a quality product that represents great value for money. Not only that, but if they are going to return, the whole experience must make them feel good. There has to be an emotional benefit. In order to achieve the kind of experience consumers are looking for, caterers must pay attention to the big issues – health, ethics and sustainable sourcing to name but a few. These concerns are no longer confined to a few evangelical entrepreneurs; they are the standard requirements for every foodservice operator. TOP CONSIDERATIONS WHEN DECIDING WHAT TO BUY/EAT OUTSIDE THE HOME: 47% Price / value for money 43% What I like / the family likes Eating food that is healthy 40% Food Hygiene / Risk of food poisioning 36% 17% A treat* 16% Convenience / speed Locally grown food Animal Welfare 14% 10% Base: All (3219) * Only asked in relation to outside the home Proportion of respondents mentioning each item (prompted) (%) Source: FSA Public Attitudes to Food Jan 09 5 Real Page 4 Business article January 2009 (email) THE TEA REPORT TEA IS THE TOP CHOICE At the 2009 International Tea Convention in India, speakers and delegates agreed that the economic downturn had not had a negative impact on the global tea trade. At the Convention, Unilever’s Pradeep Jeyathilak explained that tea sales in the UK had increased because of three factors: its retail price relative to other drinks; its high level of in-home consumption, and the emotional benefit for the consumer. THE NUMBER ONE CHOICE Over the last decade tea has remained the UK’s number one beverage choice. SHARE OF THROAT TOTAL 30.6% 13.1% Tea (incl. F&H) 33% 17.1% 6.2% Soft Drinks (inc mixer) Coffee Alcohol (inc w.mixer) Other beverage Weighted Drink Volume (%) October 2007 - September 2008 Source: National Drinks Survey October 2007 to September 2008 – consumption by volume OUT OF HOME POPULARITY Tea however, is not as popular out of home. SHARE OF THROAT OUT OF HOME COMPARISON 36.5% 16.8% Coffee 18.7% 18% In Home Out of Home Tea (inc F&H) Weighted Drink Volume (%) October 2007 - September 2008 Source: National Drinks Survey October 2007 to September 2008 – consumption by volume WHY? In a research study commissioned by Unilever,6 evidence shows that this discrepancy is due to a number of factors, all of them based on foodservice operators’ perceived inability to serve a good cup of tea. • Seven out of 10 tea-drinkers were found to be dissatisfied with the tea they bought from foodservice outlets and thought they could make it better at home. • 62% said they would choose something other than tea, even though this was their first choice, because they were so distrustful of the quality of the tea in a catering establishment. • 44% of tea-drinkers said they would be willing to pay as much for tea as they did for coffee if it were better quality – and this rose to 54% for those who drank tea out of home at least once a week. 6 TNS Omnibus July 2007 Page 5 THE TEA REPORT A GOLDEN OPPORTUNITY FOR THOSE WHO GET IT RIGHT People are prepared to pay as much for tea as they do for coffee, if it is treated with the same degree of reverence by the operator. This represents the typical pricing structure in a café outlet: Cost per cup (excluding milk & sugar) We really liked the concept of an all-in-one tea solution and decided to sell PG2GO on all our UK vessels. In the first year 2006, we saw 20% growth in sales. ‘We increased the price from £1.20 to £1.65, as we were selling a premium brand and meeting consumer demand for a quality cup of tea out-of-home. ‘Our customers instantly identify the PG tips brand and are prepared to pay a higher price for it. They recognise the brand from their cupboards at home and know that it delivers great taste and quality every time. David Williams, food services manager, Stena Line – one of the world’s largest ferry operators Page 6 Price per cup Profit Coffee £0.08 £1.65 £1.57 Tea £0.02 £1.15 £1.13 There is the opportunity for operators to charge 50p more per cup of tea, if they follow our simple recommendations in this report. Cost per cup (excluding milk & sugar) Price per cup Profit Coffee £0.08 £1.65 £1.57 Tea £0.02 £1.65 £1.63 £9,125 profit per year from just 50 cups of tea a day! Number of servings Profit K 20 cups a day £3,650 30 cups a day £5,475 50 cups a day £9,125 100 cups a day £18,250 150 cups a day £27,375 (per day) (per year) THE TEA REPORT THE OUT OF HOME PROBLEM AREAS Research has shown that tea remains the number one beverage choice, so why are 33% of tea drinkers not choosing tea out of home? 7 People would choose tea if they could be sure of the quality, but it is a very personal thing. They want their tea the way they make it at home. This represents a profitable opportunity for the foodservice operators who decide to invest time and effort in getting their tea right. The issues come down to three areas: 7 Problem Area 1 Service, presentation and taste of the tea Problem Area 2 The right product at the right time Problem Area 3 Branding. The reassurance of a familiar, quality brand Omnibus July 2007 Page 7 THE TEA REPORT Problem Area 1 SERVING THE PERFECT CUP OF TEA Unilever commissioned a survey to see why consumers were not enjoying tea out of home. THE PROBLEMS When it comes to serving tea, there are 6 problem areas: 8 1. The mess created by used tea bags 2. How the tea is presented 3. How long it is left to brew – everyone has their own idea about this 4. The fact that it’s not made the same way as at home 5. Lack of consistency – every outlet serves it differently 6. The quality of the milk THE SOLUTION Unilever foods recommends the following seven steps to serve the perfect cup of tea. SEVEN STEPS TO THE PERFECT CUP OF TEA 1. Choose a quality brand and let people know what they are drinking - use tagged teabags, feature it on the menu or promote it with table cards. 2. Offer a choice of teas, clearly described and attractively merchandised. 3. Make sure the water you use is hot, just off the boil. 4. Let your customers control the strength of the brew, either by asking them how they would like it served, or by presenting them with the tea bag and hot water. 5. Provide fresh semi-skimmed milk. 6. Serve it in a vessel that’s appropriate to the occasion and the establishment – china or porcelain for five star dining, mugs for informal bars and cafés, PG2GO or triple-walled paper cups for takeaway. 7. Always give the consumer somewhere to put their used tea bag. Following our model isn’t difficult, but it could mean the difference between refreshed, happy customers or people who leave your establishment with no intention of coming back. 8 Fathom Page 8 European tea research April 2008 THE TEA REPORT Problem Area 2 THE RIGHT PRODUCT AT THE RIGHT TIME; ANTICIPATING YOUR CUSTOMERS’ NEEDS Tea is refreshing, but that’s not the only reason why we drink it. Consumers drink tea for comfort, warmth, to be sociable and it helps create a break in the day. REASONS WHY PEOPLE DRINK TEA AND COFFEE 86% Total 78% 70% Refreshments A break in the day 68% Comfort and warmth To be sociable Source: Omnibus survey July 2007 TEA HAS A DIFFERENT ROLE AT DIFFERENT TIMES OF THE DAY DRINKS CONSUMPTION BY DAY PART 42.2 31.2 Tea (incl. F&H) 26.2 Coffee 23.9 22 11.5 4.9 4.4 Before breakfast 16.2 8.7 2.4 At breakfast Morning 1.4 2 2 0.7 0.5 Midday Weighted Drink Volume (%) Afternoon Source: National Drinks Survey September 2007 Evening meal Evening Before bed HOW TO BUILD TURNOVER AND PROFIT Meal-deals are great ways to increase spend per head - try linking with daytime snacks or lunchtime specials. TOP TIP Page 9 THE TEA REPORT Problem Area 2 TEA SERVED BY TYPE OF OUTLET • The volume of hot beverages consumed each year easily outstrips that of soft drinks and alcohol, and tea is the UK’s number one beverage choice. • More tea is consumed in the workplace than anywhere else, but that doesn’t mean that the opportunities are limited. • With travel and leisure accounting for 14% of total tea sales, it is clear why it is so important to make sure that tea is served in a format that suits people on the move. CONSUMPTION OF TEA BY CHANNEL 5% 34% Commercial Pubs FSR incl Café 38% 14% 7% Travel & Leisure Workplace Education 2% Based on the number of servings Source: NPD Crest YE June 08 CLEAN AND SIMPLE SOLUTION PG2GO takes the hassle out of takeaway tea. Each cup contains a PG tips pyramid tagged tea bag, which is pre-threaded through the special patented lid. Add hot water, milk and sugar, leave the tea to brew until it has reached the required strength, then pull the thread tight and lock the tea bag into the lid. Easy! UNTAPED SALES OPPORTUNITY The 2008 Publican Food Report stated that 94% of pubs sell tea and coffee and yet pubs only account for 2% of the total tea served out of home. TOP TIP Page 10 THE TEA REPORT Problem Area 2 FUN AND VARIETY People are used to selecting from a range of coffees and they expect something approaching the same kind of choice when it comes to tea. It is important to give customers the opportunity to trade up to speciality blends when they’re out of home, as this will mirror what is happening in the home. Looking at what people buy in the supermarket, it is clear that tastes in tea are changing and it is important for foodservice operators to keep pace. TOP 10 SELLING RETAIL TEA VARIANTS 1. Normal Blended 6. Fruit & Herbal Rooibos 2. Speciality Earl Grey 7. Fruit & Herbal Camomile 3. Speciality English Breakfast 8. Green Tea 4. Fruit & Herbal Peppermint 9. Fruit & Herbal Lemon 5. Speciality Assam 10. Fruit & Herbal Lemon & Ginger Dedicated tea bars like the Tea Palace or TeaSmith in London, are springing up in cities around the UK for hard-core tea-lovers. They’re funky, modern places, which appeal to the next generation of tea-drinkers. New tea-drinking experiences are being explored, both in terms of theatre and variety. SATISFYING YOUR CUSTOMERS We recommend putting a range of teas on the menu and giving them as much profile as you do coffee. TOP TIP TNS data shows that consumers are purchasing more adventurous flavours in home. There are now over 13.5 million households in the UK purchasing outside of the “Normal” tea categories. 9 HOUSEHOLD PENETRATION OF TEA MEASURE 90% 84% 26% Total Tea (inc Fruit & Herb) Normal Fruit & Herb 13% 14% Green Speciality Percentage of UK households purchasing tea Source: TNS Data April 2009 9 Lastest TNS Data to 19 April 09 Page 11 THE TEA REPORT PG TIPS AND LIPTON Cup Mug Disposable Tea Pot Large pot/urn Leaf machine Granule machine On the go takeaway Conference rooms Executive dining Page 12 Se ns or y Li pt on Sp ec ia lit y Li pt on PG 2G O Gr an ul es Ve nd in g Le af Ve nd in g En ve lo pe Ta g & St rin g pi nt 4 Cu p Tw o O ne Cu p A tea for every occasion. Whether it’s tea for two or tea for two thousand, a quick drink on the go or to sit down and relax, Unilever has the right type of tea for every occasion. Every sector has different tea requirements, and Unilever can provide the solutions you need, from on-the-go takeaway options and vending machines, to executive dining and afternoon tea. THE TEA REPORT Problem Area 3 THE REASSURANCE OF THE RIGHT BRAND ENHANCING YOUR REPUTATION AND BUILDING LOYALTY When asked 10 nearly two-thirds of consumers believed it was important for catering establishments to offer quality brands of both tea and coffee. 73% said they would be willing to pay a small premium for quality brands. 59% said they would have a positive impression of the place if branded tea and coffee were offered. 73% agreed that, ‘if a catering outlet uses and serves good quality brands it reassures me about the quality of their food’. 71% said they were more likely to return to a food outlet if it used good quality branded products. THE NO 1 BRANDS IN THE MARKET PG tips and Lipton have become renowned, iconic brands thanks to the quality, care and innovation that go into producing these flavourful teas. Serving the right cup of tea is essential for our business, as our customers wouldn’t expect anything less from a traditional, British take-away café. ‘In 2007, we switched to PG tips tea as we wanted our customers to enjoy a cup of tea that was similar to what they would make at home and PG tips was the brand. Since switching, we are selling far more cups of tea and our sales have quadrupled. Simon Mendelson, owner, Broom Lane Butty Bar They are strong, reliable brands, offering a reassurance of the kind of quality consumers will go out of their way to find, even in the gloomiest economic times. 10 TNS UK Omnibus March 2008 Page 13 THE TEA REPORT PG TIPS In the early 1930s, Brooke Bond introduced a blend of tea into the UK, which was to have lasting success. PG tips was first introduced through a campaign aimed at doctors and nurses, as there was much talk about its qualities as an aid to digestion. A name was invented for this medicinal product, ‘Pre-Gest-Tea’. Packets bore the letters ‘PG’ and the tea became known to the trade as ‘PG tips’. Since the 1930s, PG tips has been a household name in Britain. It has been responsible for several industry ‘firsts’ and one of the most memorable TV campaigns of all time, featuring the PG tips chimps. With the inauguration of independent television in the UK in September 1955, Brooke Bond, true to its tradition, became one of the first companies to successfully exploit the opportunities offered by the new medium. The first Brooke Bond ‘Chimpanzees’ TV commercial appeared at Christmas 1956. Chimps had a long-standing association with tea because of the ever-popular Chimpanzees Tea Party at the London Zoo. Soon the Brooke Bond chimps were in demand for public appearances and they began to make merchandising tours around the country, drawing huge crowds as they ‘helped’ to open supermarkets and new stores. These chimp ads ran on UK television until 2001. 1930s PG tips introduced 1950s Chimp advertising campaign 1960s Launch of PG tips in tea bags 1990s First with the pyramid tea bag 2000s Leading the way with Rainforest Alliance accreditation Innovative ideas have flourished in foodservice, too, where convenience is a must. PG2GO, launched in 2003, was a great example of this, providing an instant solution to the age-old problem of what to do with the used tea bag. Page 14 THE TEA REPORT LIPTON HOW THE WORLD’S NUMBER ONE TEA BRAND STARTED… Lipton was created at the end of the 19th century by Sir Thomas Lipton. Over the last 100 years, thanks to the quality of its tea and expertise of its world’s best tea specialists, professionals in tea growing and blending, Lipton has become today’s number one tea in the world. THE VISIONARY SIR THOMAS LIPTON Sir Thomas Lipton, born in Glasgow, Scotland in 1850, created such a marketing empire that within a few years his name became inextricably linked with quality tea. He set up his first shop at 101 Stobcross St, Glasgow UK, serving teas available in three grades: 1st, 2nd and 3rd Quality. 1st Quality was to later become Lipton Yellow Label. In 1890 he set sail for Ceylon in search of the world’s finest tea. There he turned the growing of tea into a subtle and notable art, blending teas to create unique and refreshing flavours that brought him fame and fortune. Under the slogan “direct from the tea garden to the tea pot”, he made tea a popular and approachable drink for everyone – high quality but reasonably priced. To this day, we are pursuing Sir Thomas’ aim to make Lipton teas available to consumers around the world. The Lipton teas are his heritage and they are more popular than ever. Sir Thomas Lipton was the first true modern advertiser, ahead of his time. Thanks to him, Lipton is now World Leader and present in more than 120 countries. Our Lipton range now includes black teas, flavoured and speciality teas, fruit and herbal infusions, and our gourmet selection of teas and infusions. Page 15 THE TEA REPORT TEA IS THE HEALTHY CHOICE Globally, tea is second only to water in terms of the volume we consume each year – and according to health experts, this is just as it should be.11 In 2006, the American Journal of Clinical Nutrition published guidelines for daily beverage consumption, recommending up to: • 13 servings of water • 8 servings of unsweetened tea • 4 servings of coffee • 4 servings of non-calorifically-sweetened beverages • 2 servings of low fat milk • 1 serving of fruit juice or alcohol • 1 serving of calorifically-sweetened beverages At a time when 62% of consumers say they are more health conscious when eating out of home12 and 65% of tea drinkers agree with the statement ‘tea is healthy’13, its positive benefits make tea the ideal choice. HEALTH AND VITALITY GOOD FOR HYDRATION Scientists place leaf tea second only to water as the ideal beverage for hydration purposes.14 Drinking up to six cups of tea can contribute to our daily requirement for 1.5 to 2 litres of water per day. LOW IN CAFFEINE Tea beverages contain half the level of caffeine compared with an average cup of brewed coffee. ANTIOXIDANTS Tea naturally contains anti-oxidants known as flavonoids. Flavonoids are also found in many fruit and vegetables. NO CALORIES Leaf tea contains no calories and fits in well into a calorie-controlled diet. Even with semi-skimmed milk, one cup typically contains just 14 calories.15 FLUORIDE Tea is a great source of fluoride, which has been associated with better dental health. 11 American Journal of Clinical Nutrition, March 2006 UK Omnibus March 2008 survey 2007 14 American Journal of Clinical Nutrition, March 2006 15 Using 30mls of semi-skimmed milk. 12 TNS 13 Omnibus Page 16 THE TEA REPORT DOING OUR BEST FOR THE PLANET Celebrating 25 years of ethical, sustainable tea Page 17 THE TEA REPORT CELEBRATING 25 YEARS OF ETHICAL, SUSTAINABLE TEA Unilever has a long history of developing sustainable agriculture and our approach to tea cultivation, production and supply is often said to set the benchmark for best practice in the industry. Since acquiring our own tea estate in Kericho, Kenya, in 1984, we have worked hard to improve the standard of living of workers and ensure that farming practices are in harmony with the environment. This is an extraordinary commitment by Unilever, which will make a huge difference to a very large number of people in Africa and elsewhere. Jonathon Porritt, founder director Forum for the Future In 2002, we launched our own sustainable agriculture guidelines. These have been communicated to most of our tea suppliers globally and around two-thirds of our tea now comes from producers who comply with these standards or are part of our sustainability programme. In 2007, we went even further, inviting the Rainforest Alliance™ – better known for its work with coffee – to collaborate with us in certifying tea that is grown with consideration for fair treatment of employees, good working conditions, water conservation, wildlife protection, soil management and conservation. Our aim is to have all Lipton Yellow Label and PG tips tea bags in Western Europe come from certified sources by 2010 and the task completed worldwide by 2015. Page 18 THE TEA REPORT KERICHO, KENYA Page 19 THE TEA REPORT DEFINING CORPORATE SOCIAL RESPONSIBILITY (CSR) We believe CSR means conducting your business in a way that’s sensitive to the world around you. Despite the worsening outlook, shoppers are still placing an emphasis on environmental concerns … Two out of three people think it is important to buy from environmentally responsible companies, with about one in seven saying that they had even decided to take their custom elsewhere if they felt a company’s environmental reputation was not up to scratch. Carbon Trust March 2009 Supporting animal welfare, for example, by using free range eggs for Hellmann’s Real Mayonnaise Making sure products are ethically sourced, not taking advantage of cheap labour and poor working conditions in third world countries Giving customers healthy choices Making sustainability one of our purchasing criteria Using less fuel and water, reducing the amount of waste and recycling wherever possible Reducing our carbon footprint Playing a part in the local community and supporting charitable causes WHY IS CSR IMPORTANT? Consumers want to buy from businesses that are doing the right thing and investors want to own shares in ethical companies. Major hospitality operators have appointed dedicated CSR directors – it’s that important. We are enabling all our foodservice customers to do something positive for the planet – and for their business – by serving tea which carries Rainforest Alliance™ accreditation. Page 20 THE TEA REPORT WHAT DOES RAINFOREST ALLIANCE™ ACCREDITATION MEAN? It means things are produced in a way that protects the environment, wildlife, workers and local communities. DO CONSUMERS KNOW ABOUT IT AND RECOGNISE THE LOGO? The Rainforest Alliance™ operates in more than 60 countries around the world. Besides Lipton and PG tips, it is used by some of the best-known consumer names including: American Airlines, Asda, Ben & Jerry’s, B&Q, Easy Jet, Holiday Inns, McDonalds, Morrisons, Pret a Manger, Sainsbury’s, Tesco, Victoria’s Secret, Waitrose and Wal-Mart. The logo is clearly visible to the Eden Project’s million-plus visitors a year, and the last Harry Potter book was printed on Rainforest Alliance™ certified paper. HOW DOES IT COMPARE WITH FAIRTRADE? Fairtrade is good, but only covers commerce: helping disadvantaged farmers and workers in developing countries get a better deal. The Ethical Tea Partnership is just about welfare: monitoring living and working conditions on tea estates, to make sure tea has been produced in a socially responsible way. Increasingly, companies like Unilever see Rainforest Alliance™ as the leading certification because: • It covers every aspect of corporate social responsibility • It appears regularly in the media • It is growing rapidly and currently has 35,000 members and supporters 16 • It links your brand with some of the most-respected business operators THE BOTTOM LINE By serving Lipton or PG tips tea you will have the right to display the Rainforest Alliance™ logo. TOP TIP • Existing customers will keep coming to you, and you will attract new customers who care about the planet • People accept that a ‘good’ cup of tea may cost a little more, so you can charge a modest premium • It’s a reason for corporate clients to choose you, because you share their values Your staff will be happy, feeling that they’re helping to make a difference Since switching to PG tips in Easter 2008, our tea sales have increased despite us not increasing the cost per cup. We can only conclude that it’s because we are now selling a well-known, Rainforest Alliance™ Certified brand that our customers love. ‘It is incredible how simply switching to an ethical brand has positively impacted our business. To be able to fulfil our National Trust values of preservation and conservation, alongside generating extra revenue, is a truly fantastic achievement. Lynn Murphy, catering manager, Courtyard Restaurant, Crathes Castle We can help you tell your customers and staff by providing briefing notes for your team and point of sale material featuring PG tips’ Monkey. 16 www.rainforestalliance.org Page 21 THE TEA REPORT IN SUMMARY WE’RE MAKING A POSITIVE DIFFERENCE Times are tough and it pays to have the experts on your side. Unilever has a rich tea heritage, and when it comes to Britain’s favourite hot beverage, you really should be talking to us. PG tips is the UK’s number one brand of tea. 17 Lipton Yellow Label is the world’s second biggest non-alcoholic beverage brand. 18 We have first-hand experience of what is happening around the globe and we have unparalleled insight into the consumer trends in each country. UK CONSUMER INSIGHT • Today’s consumers are time poor and cash poor • Their expectations are higher and they are looking for emotional benefits from their purchases • They seek out companies that promote a responsible approach to business practices • They are concerned about health issues TEA SERVED OUT OF HOME • • • • Consumers aren’t happy with the quality of the tea they purchase out of home They would pay more for a better beverage, served the way they like it They would like to drink tea out of home and recognise its health benefits There is an easy profit opportunity for foodservice operators who are prepared to invest time and effort into improving their tea offering • It’s about serving a familiar, quality brand, in the right format to suit the need and the occasion TEA SERVED OUT OF HOME We have responded to these challenges and opportunities by developing a range of quality teas for foodservice operators, under two much-loved brands – but that’s only one aspect of what we do. We are constantly developing new and innovative ways with tea, from full catering concepts to innovative packaging and lively promotional materials. We share with our hospitality industry customers our insight into consumer trends, so you can turn these to your advantage. And by joining with the Rainforest Alliance™, we enable you to promote your CSR credentials to your increasingly socially aware and enlightened audience. Unilever Foodservice is working hard on your behalf to help make a positive difference to your business. 17 Latest 18 TO Page 22 IRI Data to 16 May 09. Based on sales of National Tea Bags Basis, net proceeds of sales IFRS equivalent - average 2007 THE TEA REPORT A BRIEF GUIDE TO THE WORLD OF TEA TEA PRODUCTION The starting point is a small, white-flowered evergreen bush from which the top two leaves and bud make the best quality tea. The plant is indigenous to rainforests of Assam, Northern Burma and South West China, and is now cultivated in over 30 countries around the world. A tea bush may happily produce good tea for 60 - 80 years, but after 50 years its yield will reduce. The oldest surviving bush is in China. It is believed to be 800 years old. The process of converting young fresh leaves into tea, by drying or fermenting them, was developed in ancient times by the Chinese and, despite mechanisation, remains largely unchanged. STYLES OF TEA All tea comes from the same bush, Camellia sinensis, but differences in oxidation produce the three main kinds of tea – black, green and oolong. • For green tea, the oxidisation process is stopped, allowing the tea to remain green in colour • Oolong tea is fermented for a very short period, creating the distinctive coppery red colour and delicate flavour • White tea is the least processed of all teas • Yellow tea is similar to white and green teas, but very rare • Fruit teas are black or green teas flavoured with a natural essence of fruit. • Herbal tea is not really tea, as it is made from plants, using not just leaves, but also flowers, roots, bark and seeds NATIONAL POINTS OF DIFFERENCE • Japan produces green tea with a very distinctive flavour that is totally different from the Chinese pan-fried variety • Kenyan tea has a bright strong taste and a golden red colour. The rounded tea flavour makes it ideal for tea bags • Sri Lanka produces fine flavoured black tea from the slopes of the central mountains • China’s Lapsang Souchong is a black tea with a curry aroma and smoky taste • Indian Assam tea is full-bodied black tea with a rich flavour, widely used in everyday blends, while Darjeeling is known as the Champagne of black teas • Indonesia produces light coloured, delicate-flavoured black tea and jasmine tea Page 23 If you would like further copies of this report, or would like more information about PG tips and Lipton teas, contact: Charmian Day Tea Marketing Manager Unilever Foodsolutions Unilever UK Ltd Freepost ADM3940 LONDON SW1A 1YR Care line: 0800 7833728 charmian.day@unilever.com www.unileverfoodsolutions.co.uk