Unilever is launching PG Tips tea capsules compatible with Nespresso machines.
Rolling out from Monday (2 November), they will initially be available online only, through Amazon and Ocado, but Unilever is considering in-store distribution if the launch proves a success. The four-strong line-up comprises Caramel & Vanilla Black Tea; Green Tea; Peppermint; and Raspberry & Apple in 10-capsule packs (rsp: £2.79) and a 24-capsule gift-pack (rsp: £9.99).
The business is looking to add value to the tea category and tap the boom in the hot beverage capsule market, which grew 36% year on year to £105m in 2014 [Kantar Worldpanel]. Unilever, which has seen sales of PG Tips fall 6% to £136.7m in the past year [Nielsen 52 w/e 12 September 2015], said there was a huge opportunity in tea pods.
“Capsules is the fastest-growing part of the hot beverage market, driven by coffee, and we are sure we can make it work in tea,” said Paul Williams, marketing manager for tea at Unilever.
The company already sells capsules in the US under its biggest global tea brand, Lipton, and recently rolled Lipton capsules out in France, where it said they had got off to a strong start.
We are not trying to persuade people to drink less coffee but to use their machine for the tea occasion they already have, and to trade their tea bag for a capsule
“It is a key focus for the business,” added Williams. “Consumers tell us they love their machines and wish they could use them more, but don’t necessarily want to drink coffee all day. We are not trying to persuade people to drink less coffee but to use their machine for the tea occasion they already have, and to trade their tea bag for a capsule.”
Williams said he thought tea pods had failed to take off in a big way in the UK as previous launches had focused on black tea.
“We have chosen to avoid this as consumers tell us that when they make black tea they like it in a particular way, and that it is very personal, and that it felt counterintuitive to put black tea through a pod machine that delivered it in one defined way.”
“Instead, “We have focused on teas where there are still some barriers and mystery around them - people can overbrew green teas or underbrew fruit.”
A machine could deliver green tea in 40 seconds and at the perfect temperature to be drunk, claimed Williams.
The launch is focused online, with below the line marketing activity including a giveaway of three sample PG Tips pods when shoppers order Nespresso-compatible capsules through Ocado. The brand is also considering mobile-integrated geo-targeted marketing next year to tap consumers who have just visited a Nespresso Boutique.
“We are not necessarily taking this widescale yet but are going where we know people buy pods which is online, rather than a widescale bricks and mortar launch - although this is in our plans,” said Williams.
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