Following Portuguese princess Catherine’s introduction of tea to UK, it eventually became the nation’s favorite and the national beverage. But coffee industry has done well to catch on the go / out of home market by initiating various kinds of coffee shops at almost every corner in the country. As I wrote to FoodBev Media in 2016, tea industry is always behind coffee industry when it comes to innovation and distribution strategy. Anyway, coffee shops can’t survive with out tea. As World Coffee Portal had reported based on their annual analysis of the UK’s opportune yet challenging out-of-home tea segment, estimates 3.6 million hot tea beverages are served across the UK’s specialized coffee shops every week, comprising 4.4% of the average UK coffee shop sales mix.

Allegra reveals tea segment revenues of £302m in 2018, an annual increase of 11.1%, and predicts UK out-of-home tea sales will reach £329m for the year 2019, representing annual growth of 8.9%.

Allegra Founder and CEO Jeffrey Young said:
“Tea is yet another category of the UK hospitality that is seeing a shift toward premiumisation. Premium teas provide further opportunities for foodservice operators to increase average spend and increase the breadth of their customer base. However, they to need to communicate value-add by inspiring and educating customers on the true benefits of premium tea.”

Premium teas could reverse poor value perceptions

While UK industry leaders are hopeful in their outlook for out-of-home tea sales, 37% of tea drinkers surveyed perceive out-of-home tea as poor value-for-money. So Cafe owner’s need to think twice whether they still rely on baristas to make a good cup of tea. Tea master is the ideal person to do that.

Introduction of premium loose-leaf teas can be an effective strategy to generate value-driven narratives around provenance, preparation and appreciation. This approach could also catalyse interest from the 31% of UK consumers surveyed who preference loose-leaf tea over regular tea bags.  

Further demonstrating the growing importance of loose-leaf tea, major UK coffee chains including Coffee No 1, Benugo, and Boston Tea Party have responded to the market trend towards tea premiumization with a range of loose-leaf offerings.

Among UK tea drinkers surveyed 21% purchased one of either a green, herbal or fruit tea variety on their last café visit.

Consumers taking more tea at independent cafés

Among tea drinkers surveyed, 42% are more likely to favour tea purchased at independent coffee shops versus branded chains (22%), with a quarter making their last out-of-home tea bought at an independent.

Reading the tea leaves

Sixty-one percent of UK industry leaders surveyed explain the short-term sales prospects for out-of-home tea as positive, a 6% decline on the last year. With over 80% of UK consumers anticipating no change in the frequency of their out-of-home tea consumption over the next 12 months, operators must focus on innovation to challenge tea menu indifference. Sixty-one percent of consumers surveyed indicate better quality beverages would encourage them to drink more tea out-of-home, while an increased menu range would compel 40% to do so.

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References

1.Original Post: https://www.worldcoffeeportal.com/getdoc/141122f1-8e22-49f4-95da-f677905f1790/Premium-and-loose-leaf-driving-tea-sales-in-UK-cof