Unilever Uk Foods
Famous as a nation of tea drinkers, the Brits have not been short of brands, or own-label products, to choose from.
In a sea of competitors, PG Tips has managed to stay one of the main tea brands and has arguably been the best-known brand in the UK for many years.
The old favourite, a blend of Indian and African teas, has in the past year managed to marginally increase its market value share by 0.2% to 23.7%, despite a 2.5% drop in sales [ACNielsen 52 w/e June 11, 2005].
The figures may not sound that impressive, but if you compare them with the total tea market, which fell 3.4% as it continued to suffer at the hands of soft drinks, PG Tips has proved a stable brand in a declining market.
However, PG Tips was dealt a blow at the end of last year as it was overtaken by arch rival Tetley as the second-biggest selling hot beverage brand [The Grocer Top Products Survey, December 11, 2004].
Valued at £126m [ACNielsen MAT June 11, 2005], the tea brand has a loyal following among the public.
Slightly more than 34% of ACNielsen’s consumer panel have tried the product, with a massive 64% of those returning for a second purchase.
PG Tips has the strongest appeal to family households with two to four members, while it is less popular in single households. Interestingly, the very largest households, with five or more members, also don’t seem as keen on the brand, suggesting that they opt for other, possibly cheaper, options.
Sales of PG Tips are in general much stronger in the south and in Wales, while the tea is less popular in the north east.
To celebrate its 75th birthday, Unilever UK Foods put £5m behind the brand at the beginning of the year and also introduced the brand’s first limited edition product - PG Tips Special Blend Limited Edition Tea, a blend of Kenyan and Ceylon teas.
Furthermore, to take advantage of the growing decaffeinated tea market, PG Tips launched PG DCaf just over a year ago.