Tata Tea is brewing a new growth strategy for the Tetley brand it acquired last year. The company has decided to launch flavoured tea, iced tea and state-origin tea under the Tetley brandname and is also exploring the feasibility of setting up a chain of ‘tea parlours’ in the top cities of the country. Conventional black tea, sold under the Tetley brandname, will also roll out across the country through vending machines this year. One machine has already been installed at the Churchgate station in Mumbai.

P C Siganporia, deputy managing director of Tata Tea, said: "We will come out with lemon, peach and earl grey flavours along with state origins such as the Sri Lankan variety. In the long run, we also plan to roll out about 150-odd tea offerings from the Tetley stable. "These products will be in tune with demand from Indian consumer, who had hardly experimented value-added tea."

On the launch of iced tea, Siganporia said: "We are interested in having presence in iced tea business. We will launch few other varieties soon. However, that will not be in this summer as the groundwork would have to begin two months before the season." He said the company was also exploring the possibility of setting up a chain of tea parlours in important cities.

"We have a plan. But that will be rolled out in the medium term. We cannot reveal more about our strategies right now because this is an extremely competitive market," he added. FMCG major Hindustan Lever and many small private players are also evincing interest in the segment. Meanwhile, Tata Tea has already installed a tea vending machine in Mumbai and gauging consumers’ response. If all goes well, more such units will be seen opened.

Siganporia said while tea was a normal drink in India, there was a huge potential in it to enter the premium segment. He added that as Tetley was already being positioned as a brand for the women, additional business launches through the Tetley brand will, therefore, have to be in tune with its image. One such launch will be the launch of state-origin tea.

The company has a 49 per cent share in Watawalal plantations in Sri Lanka, under a holding company. Siganporia said the company would target state-origin varieties in the premium segment. Currently, in this segment, Tata tea is having presence through ‘Tata tea temptation’ and ‘Tetley’ brands. Its popular brands include: Tata Tea Premium, Kanan Devan, Gemini and Agni.