A COMPLETE LANDSCAPE OF THE OUT OF HOME MARKET CONTENTS

3 INTRODUCTION 4 WHAT’S THE FUTURE FOR FOODSERVICE? 6 A GREAT BRITISH BREW 8 BEAN VS BAG 10 THE TEA DRINKER OF TODAY 12 EXPLORING NEW TASTES IN TEA 14 EXPLORING CHANNEL OPPORTUNI- 16 THE WORKPLACE TEA BREAK 17 REVITALISING HYDRATION FOR CARE 18 CAFÉ CULTURE 19 ENJOY A LEISURELY BREW 20 OUR BOOMING BREAKFAST CULTURE 22 PREMIUMISATION OF TEA 24 FUTURE TRENDS 26 INSIGHT PARTNERS & ABOUT TETLEY

THE TEAREPORT 2018 INTRODUCTION

his year, Tetley celebrated still going out, with the majority of us eating a milestone 180 years of and drinking out more than we did pre the delivering quality and expertise Brexit vote. Customers still expect the same T level of service and are keen to explore new to the tea sector. As the nation’s tastes and flavours, but experience is king favourite tea brand and the no.1 and keeping customers interested in your wholesale tea supplier2, we have been offering is paramount to driving success. committed to being at the forefront Good food and drink is no longer enough in this hugely competitive marketplace. of the continual evolution of the tea category since our inception in 1837, In this, our second Tea Report, we explore supporting operators in serving the the changing landscape of the foodservice sector, challenging perceptions around the perfect cuppa time after time, with quality of tea served out of home, identifying the aim to drive profit and deliver ways in which operators can attract custom exceptional customer experiences. with a stand-out tea offering, and diving deep into the key channels for the hot beverage The hospitality sector is facing an category. We welcome you to join us on unprecedented period of uncertainty and this journey, which we hope will unlock challenge following the referendum vote the true potential of tea in your outlet. in June 2016. Everything from rising costs to attracting talent to the industry from across Europe will need to be considered and potentially addressed. There’s no GRAEME KARAVIS denying, there are sure to be interesting Managing Director times ahead for those of us operating UK&IRE at Tata within the foodservice industry. Global Beverages Amongst all of this, consumer behavioural habits remain largely unchanged. Britain is

3 WHAT’S THE FUTURE FOR FOODSERVICE?

o just how are business COST OF GOODS, BUSINESS leaders reacting to the UK’s RATES AND EXCHANGE RATES Smomentous exit decision? And APPEAR TO BE HAVING THE just what effect has the result had LARGEST EFFECT, CREATING on consumer habits out of home? DIFFICULT TRADING CONDITIONS AND CURTAILING PROFITS. WHEN Over a year on from the EU referendum, ASKED WHICH ISSUES ARE MOST the wider economic impact is still unclear, as exports and manufacturing are showing AFFECTING THEIR BUSINESSES, positive signs of expansion, while real RESPONSES INCLUDED: wages have seen a fall behind inflation. 1 ATTITUDES Within the foodservice industry, there is an interesting dichotomy between what 81% 78% 73% is happening in industry and what is INCREASE IN COST BUSINESS FALL OF POUND happening in the attitudes of consumers. OF INGREDIENTS RATES STERLING The implications of Brexit on foodservice businesses appear to have had a real time,

negative effect on trading, with 71% of Better still operators already noting the impact. But it’s not all ACROSS THE SECTOR, LIKE 76% FOR LIKE SALES GROWTH of business leaders IS ESSENTIALLY FLAT… bad cite performance as in line with, or 1 Like for like news above, expectations BUSINESS LEADER sales growth CONFIDENCE REMAINS HIGH over THE past 12 months: 1 50% of drink-led venues are feeling positive 1.2% about the market1

THE TEAREPORT 2018 WITH CONGESTED HIGH STREETS PACKED WITH COMPETING CHAINS AND THE RISE OF THIRD-PARTY OPERATORS CHANGING THE WAY WE RECEIVE FOOD AND DRINK... Consumers are engaging with brands in a different way, demanding new technologies and innovations in the out of home market. Cutting through the noise and delivering a superior experience is therefore ATTITUDES more important than ever. There remains a disconnect between operator attitudes and consumer behaviour. 4in5 of business leaders are operators state high quality customer experience as ‘very concerned about consumer confidence important’ in the success of their 1 57% over the next six months business over the next 12 months 1 BUT YOUNGER CONSUMERS ARE EATING OUT AT LEAST ONCE A WEEK 55% of consumers are excited to see how technological advances will proportion of age groups change the eating and drinking eating out ONCE A WEEK out market in the future 1

1 18-24 25-34 35-44 45-54 55+ BUT THERE’S STILL ROOM FOR GOOD-OLD-FASHIONED 61% 66% 52% 38% 34% PERSONAL SERVICE…

of consumers are worried of GB consumers predict no change that technological advances in the industry will limit or increases to their monthly 1 1 81% eating & drinking out spend 47% face-to-face interactions

5 A GREAT BRITISH BREW

he value of tea in the UK foodservice market increased by an impressive T13.6% between 2015 and 2017. 13.6% Despite this, the category remains exceedingly competitive, and a deep understanding is vital tea value under tough overall trading conditions. As shop culture continues to embed itself within growth consumers behaviour, operators are looking for out of home new ways to add value to their tea offering. vs. 20151 REAT BRITISH LOVE A A G FFAI TEA, R... 11.6m 2015 14% said the tea CHOOSE they drink out of home is BLACK TEA 12.4m significantly better than 1 2016 what they make at home 1 75%OUT OF HOME

consumers are 13.1m 31.4m 2017 cups of tea consumed out drinking 1 of home on the average more tea 1 1 CONSUMERS DRINKING TEA OUT OF HOME weekday in the UK 1in5than they did a year ago

THE TEAREPORT 2018 THE BATTLE OF THE BRANDS… Black tea brand awareness remains high out of home, but the challenge for brands is to convert awareness into brand loyalty and brand desire.

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conversion rate between 65% 47% 68% 70% 52% 45% 51% 34% aware to consider

conversion rate between 61% 71% 59% 60% 44% 36% 38% 43% aware to drinking

7 afé culture is no longer simply restricted to coffee shops; we’re Cbecoming a nation of food and drink connoisseurs both in-home and out, increasingly seeking new and exciting hot beverage trends to try. From nitro coffee to turmeric-infused tea, the battle between the coffee 3.8bn bean and the tea-leaf is heating up. OOH COFFEE OCCASIONS 4 1 Coffee to go (-10% VS. 2016) Coffee purchase occasions continue to decline out of home, while tea sales remain stable across the board. Coffee continues to dominate purchase decisions in the morning and remains a key competitor for tea, as over half of tea drinkers also drink coffee.

Coffee is chosen for energy but is declining across all other needs and showing reduced consumption within the workplace.4 Budget conscious consumers are opting to brew coffee at home, to take to work in a travel mug.

22 OF COFFEE EMS IT ALSO ER DRINKERS H 4 T O DRINK TEA

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THE TEAREPORT 2018 1

2017

£2.10 1 2016 AVERAGE COFFEE£2.04 cost per cup 2015 2017 £1.98 £1.77 2016

1 AVERAGE Tea cost£1.73 per cup 2015 £1.69 Reading the tea leaves

Insight shows 40% of all tea is drunk in the morning,3 making this day part key for operators looking to increase hot beverage sales. When compared to coffee cost per cup, purchase price is significantly lower. To increase tray spend, tea should be included in meal deals.

Tea is chosen habitually and to quench thirst, but is also seeing growth as consumers choose it for energy or simply because it’s their favourite drink. They are more likely to consume food with tea then any other hot beverage.4

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9 THE TEA DRINKER OF TODAY…

ith more than 51 million tea drinkers in the UK, 165 million Wcups of tea drunk every day, and almost 2000 cups consumed every second,23 we can safely say that tea is a drink that can be enjoyed by all. However, when it comes to drinking tea out of home, consumers are less inclined to partake in this daily ritual. 34% of consumers who drink tea in home don’t consume it out of home,1 creating an opportunity for the foodservice sector to convert these valuable customers.

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Increasing penetration of tea out of home can only be achieved by understanding and analysing the identity of perspective customers, and meeting their needs and wants.

THE TEAREPORT 2018 SO JUST WHAT DID THE AVERAGE A NEW WAVE OF TEA DRINKER TEA DRINKER LOOK LIKE IN 2017? So, how can we attract new audiences to the tea 1 category? The majority of 16-24 25-34 35-44 45-54 55+ non-tea drinkers are aged 35 or under and are looking for a 11.5% 18.4% 16.3% 16.9% 36.9% premium drink offering. Trying new products, especially from a drinks perspective, is 1 something that appeals and drives purchase decisions. Consumers also need to be satisfied that the tea they 56% 44% purchase out of home will live up to their expectations, so FEMALE MALE the quality of serve is key. 1 Although overall sales

value is highest in London, 59% of 18-34 year olds consumption is weighted premiumise their drinks choices towards the North of England27 HIGHEST CONSUMPTION LOWEST CONSUMPTION

average household income of a uk tea drinker vs £45K uk average £36K 1 Black tea is a clear favourite when it comes to tea choice. But just how frequently are consumers drinking this type of tea? 1 7.1 million Weekday Weekend uk consumers like to try 2 Cups 1 Cup a day OOH a day OOH new or different HOT BEVERAGES out of home 1

11 EXPLORING NEW TASTES IN TEA

ea in the out of home environment out of home. Offering a range of fruit and is still dominated by black tea herbal is an easy way to attract a consumption, particularly in the cost younger audience to the tea category and Tsector. Volume growth remains relatively drive rate of purchase. By showcasing the flat YOY, with just 15% of consumers different benefits of the blends available, expecting to drink more black tea than operators can drive consumers to try different they did a year ago.1 Meanwhile fruit, types of tea across different day parts too. OW herbal and green teas have observed NG P ER significant growth in popularity. DI of consumers who have seen4 N With the health and well-being trend being PE particularly prominent amongst millennials, new types of tea, S consumers have become increasingly have tried a new brand selective about their dietary choices, often 1 opting for healthier hot and cold beverages 49% OOH in the past 12 months What are our favourite non-black blends out of home?

1 Green speciality HErBAL FRUIT tea 18% black tea17% tea 15% tea 14% tea 3%

Matcha and are two blends that consumers are willing to pay a little more for, and are drinking with more frequency thaN they were 12 months ago.

THE TEAREPORT 2018 uplifting & refreshing fruit blends appeal to consumers looking to lower their W DING PO ER Intake PEN S What are consumers prepared to pay for tea out of home?

Matcha £2.82 1 Speciality tea £2.24 Green tea £2.08 £2.06 Fruit tea £2.05 Decaf tea £2.03 Black tea £1.80

29% OF CONSUMERS Herbal TEAS EXPECT TO DRINK GREW 18.1% non - MORE 9.6% Yoy OF TEA SERVED 1 GREEN TEA 1 than they did a year ago 1 2016 vs 2017 OOH isblack

13 EXPLORING CHANNEL OPPORTUNI-TEAS

he foodservice landscape remains hugely fragmented, comprising more BLACK TEA Tof an estimated 362,679 outlets across varying channels.1 is consumed in the

With 1/3 of total food and drink occasions taken out of home,25 brands and operators are having to adapt their offering to meet care1 a myriad of consumer need states, which channel than any other can differ significantly depending upon which channel they function within. GREEN TEA is the 2nd most popular blend in the CHANNEL NEED STATES 1 When it comes to tea, reasons for consumption can be attributed to many workplace different factors. In a hospital or care environment, tea plays a key part within more fruit & herbal teas hydration best practice, whilst delivering familiar comfort. In the workplace, a cup of are consumed in tea can act as a breakout from an employee’s daily routine. One thing’s for sure…wherever it’s being drunk, enjoying a cup of tea is hotels1 a staple part of most people’s day. VS any other channel

with consumers WELL KNOWN BRANDS looking for teas PERFORM WELL IN THE CAFé SECTOR they enjoy at home 1

THE TEAREPORT 2018 tea value growth 2015

WORKPLACE vs2017 16% 1

CAFÉ 15.4%

HOTELS HEALTH 10.6% 11.7%

Read on to explore the attitudes towards, and opportunities for, tea across the channels that matter the most to you.…

15 THE WORKPLACE TEA BREAK

WHETHER GRABBING A BREW IN- BETWEEN MEETINGS OR CATCHING UP WITH COLLEAGUES IN THE CANTEEN OVER A CUPPA, TAKING TIME OUT FOR A PROPER TEA BREAK Top 3 CAN INCREASE PRODUCTIVITY AND HAVE A BENEFICIAL EFFECT FOR factors for choosing BUSINESSES AND EMPLOYEES ALIKE. tea in the workplace 44% 30% 28%1 44% in to break up to quench out of OF WORKERS ARE 1 5 the day thirst habit say they take fewer too busy PARTNERING ON A DRINK OFFER TO

for a break before tea breaks MAXIMISE THE ‘BREAK OCCASION’

lunchtime than they did a year ago IS ONE WAY IN WHICH TEA CAN BE PROMOTED IN THE WORKPLACE A QUARTER OF BRITISH WORKERS BELIEVE“ THEY AREN’T ALLOWED TEA BREAKS 5 From the Expert It has always been about the Great British Within the workplace, 47% of us drink tea Cuppa, which still accounts for the volume tea outperforms of sale, but in order to engage customers, coffee, with the tea every time 1 outlets need that wow factor. Tea deals break presenting a we are in the workplace are a great way to push up average spend. fantastic opportunity If we can sell one of our hot beverages for operators to and a homemade cake that is a great communicate 37% profit margin for us, as they are two categories that give us the best margin. the significant of the millennial benefits associated workforce consumes a Steve Fox, Purchasing Director, with a brew. repertoire of teas at work6 Bartlett Mitchell “

THE TEAREPORT 2018 REVITALISING HYDRATION FOR CARE

Healthcare has the second largest sector value share (22.2%). With growth steady WITH 37% OF OVER 65’S DEHYDRATED at 4.1% YoY,1 there is opportunity to ON ADMISSION INTO CARE expand into new tea segments. Offering ENVIRONMENTS, IT’S CRUCIAL choice to residents and visitors can create

THAT CARE HOMES ENCOURAGE a great impression and have a positive

7 GOOD HYDRATION PRACTICES. impact on good hydration practices. Top 3 occasions for “ drinking tea in care 1 From the Expert All my cooking thought goes into how to hydrate the residents. Their socialising tends to be around tea and we get 36% 15% 15% through over 1000 tea bags per week, TO PASS TIME FOR a quiet drink TO RELAX for our 70 residents plus staff & visitors at just one site. We’re increasingly seeing more of a demand for fruit teas AN ESTIMATED from the residents, which have the added benefit of being caffeine free. 71,000 EXTRA Martin McKee, Head Chef, The Hawthorns CARE HOME SPACES Aldridge, Avery Health Group “ are required by 2025 8 On average residents DRINK 2-3 CHAMPION Hydration cups per day WITH OUR GO-TO GUIDE

THE CARE HOME INDUSTRY PROVIDES VISIT THE TETLEY TEA A HUGE OPPORTUNITY FOR TEA. ACADEMY TO DOWNLOAD YOUR FREE COPY

17 CAFÉ CULTURE

average willingness to spend £1.86 on a cup of tea in a café 1 OUR LOVE FOR CAFÉ CULTURE CONTINUES TO GROW, SO MUCH SO 1 THAT COFFEE SHOPS ARE PREDICTED TEA IN GROWTH TO OUTNUMBER PUBS BY 2030.9 IN FIVE YEARS, THE MARKET ROSE BY 37%, CHAI +93.8% INCREASING BY AN IMPRESSIVE £1 BILLION TO £3.4 BILLION IN SALES IN 2016.10 Just as the coffee market has burgeoned, +20.3% so has the market for tea, with a 7.4%1 increase in value growth within this sector. No longer satisfied with a simple ‘builder’s +28.4% brew’, consumers are looking for an experience and more choice on the menu. FRUIT +20.3%

10

PEPPERMINT +14.6% 65% “ of brits have visited a coffee shop From the Expert in the past three months While English Breakfast is always a customer

1 favourite, we’ve also seen a demand for REASONS TO DRINK TEA in cafÉs more choice and have expanded our range to include Fruit & Herbal and Earl Grey blends. In the summertime we also add 35% 34% 34% 34% cold brew teas to our beverage menu. To socialise To relax TO Quench Thirst To have a break David Koller, Café des Arts “

THE TEAREPORT 2018 ENJOY A LEISURELY BREW….

DESPITE UNCERTAINTIES WITHIN THE ECONOMIC CLIMATE, AN ADDITIONAL 11,400 HOTEL ROOMS OPENED UP IN 2017, UP 2.4% YOY.11 WITH EACH GUEST SPENDING AN AVERAGE OF £339 ON FOOD AND DRINK THROUGHOUT THEIR 52% STAY,12 HOTELIERS SHOULD OF guests stated EXPECT TO ENJOY INCREASINGLY ‘How TEA IS served’

DIVERSE REVENUE STREAMS. as extremely The hotel sector presents the largest 1

channel growth from a paid for tea important perspective, up 10.2% YOY. “ From the Experts Top 3 reasons for With tea, people are asking for a wider drinking tea in a hotel selection and are more specific with their 1 teas than they once would have been. It is not just a cup of tea anymore. We also 33% 32% 30% use tea when preparing non-alcoholic TO TO START THE as it’s their drinks to create more depth because RELAX DAY RIGHT preferred drink there is such a wide variety of flavours. Tom Jolly, Beverage Manager, Gleneagles Hotel

HOTEL GUESTS ARE In room it is very functional at the WILLING TO SPEND moment. The teabag on a string is just MORE ON A CUP a dunk and go, so you aren’t going to get a huge amount of theatre. There OF TEA, HIGHER needs to be additional quality cues THAN ANY OTHER that you can build into the product. 1 CHANNEL AT £2.33 UK Hotel Operator, Senior Insight Manager “

19 OUR BOOMING BREAKFAST CULTURE

reakfast isn’t just the most important meal of the day for consumers Bbut for foodservice operators too, Food and drink with £76million spent on eating out at breakfast on a daily basis.13 From cereal cafés to the boom in baked eggs, there occasions 2017 vs 2015 has been an explosion of interest in the breakfast and brunch market. UP 4.6% in 2017, Purchasing breakfast out of home is becoming increasingly popular, with the number of breakfast servings growing Breakfast by 17.5%14 and ahead of all other is driving OOH total meal occasions. Notable contributors food and drink growth to this growth, operators have targeted busy workers on the go by with supplementing their breakfast offerings with promotions on hot beverages. 80 million occasions annually 25 LUNCH 25 evening meals 25 ACCOUNTS FOR & snack 208 million occasions occasions, up 2.2% are in decline 31% Increase in spend at breakfast out of home 14

THE TEAREPORT 2018 Of consumers eat breakfast out of 26% 43% 51% home twice a month16 OF adults say they of beverages consumed eat breakfast at 15 at breakfast their desk in hotels are tea 16

KEY TIME 1 FOR DRINKING

TEA OOH 9AM-12PM

CONSUMERS ARE MORE LIKELY TO DRINK TEA WITH BREAKFAST THAN ANY OTHER HOT BEVERAGE.17 Whatever your sector, ensure you’re offering your customers something worth waking up for, by serving up quick and easy breakfast dishes and indulgent brunch options with serious profit opportunities. GRAB AND GO The With increasingly fast-paced lifestyles Social Occasion and less defined day parts, fewer Breakfast has become just as much consumers are eating their first meal a social event as lunch and dinner. of the day at home, presenting a Brunch is now a huge dining out significant profit opportunity for occasion, particularly for under 35’s, caterers. Convenient, on the go to indulge and celebrate - and has breakfast options are attractive and therefore created an opportunity for more accessible so consumers can pick operators to upsell their most indulgent them up and continue with their day. Instagrammable dishes and drinks.

21 PREMIUMISATION OF TEA

onsumers, particularly the younger HOWEVER, generation, are becoming more A KEY BARRIER TO Cadventurous in their flavour preferences and willing to spend more on drinks that they PURCHASE THAT THE perceive to be premium and healthy. With MARKET CONTINUES TO this in mind, operators have an opportunity ADDRESS, IS CONSUMERS’ to attract a new cohort of shoppers and PERCEPTION OF QUALITY. create added value opportunities.

WHO’S LOOKING FOR A PREMIUM THE THEATRE OF TEA HOT BEVERAGE OFFER? Within tea service, experience is king and a key to success for operators. To keep 1 consumers interested and to create brand 18-34 35-54 55+ loyalty, good quality food and drink is no longer enough. Tea faces stiff competition 59% 52% 39% from an increasingly diverse range of alternative hot and cold drinks. It’s often perceived as the poorer counterpart to coffee, struggling to deliver the same experience.6 of consumers ARE WILLING IF THE ATMOSPHERE AND AMBIENCE TO PAY MORE FOR 1 IS RIGHT, CONSUMERS ARE 65% A PREMIUM drink More likely to TEA DRINKERS ARE ALSO WILLING rate a brand TO TRADE UP AND PAY MORE X3 as better FOR A MORE SUPERIOR DRINK… value for of tea drinkers are likely 1 to pay extra for 34% more premium brands1 money

THE TEAREPORT 2018 “We have done some work on innovation around our hot drinks offer. One of the more popular ones is the jasmine , it’s very visually appealing and has that sense of ‘Instagramability’ that people are increasingly looking for in their dining habits.” Stuart Wright, Head of Insight for Wagamama

No longer restricted to high- end hotels, loose leaf tea sales continue to soar, with consumers enjoying the ceremony and ritual of pouring a personalised blend from tea pots. 29% DRINK MORE LOOSE LEAF TEA 1

Rise of Loose Leaf of Loose Rise OOH than this time last year

PREMIUMISING THROUGH HEALTH From turmeric to added protein, we have seen a new wave of consumers actively seeking out functional teas and other hot beverages. To meet their increasingly busy lifestyles, operators should be looking to expand their beverage menus with natural energy boosts that consumers can grab on the go. To take advantage of these opportunities, brands must continue to innovate their product ranges, meeting the needs of the market from a health and wellbeing perspective.

45% of tea drinkers are DRINKING MORE MATCHA THAN THIS TIME LAST YEAR 1

23 FUTURE TRENDS

SO WHAT’S NEXT FOR THE ICONIC 2. FLAVOURS RISING BRITISH CUPPA? FROM NEW Natural and ethical claims on global new FORMATS, TO NEW TECHNOLOGIES, food and drink product launches are on OUR INDUSTRY EXPERTS REVIEW the rise. We are seeing consumer demand THE CURRENT TRENDS IN TEA for natural and earthy flavours such as matcha, ginger, turmeric and cumin SERVICE AND PREDICT THE WAY increase across markets.24 Demand for FORWARD FOR THE FUTURE these products is twofold as consumers OF THE TEA CATEGORY. seek out bold and adventurous flavours, while pursuing alternative health benefits 1. TEA WITH PURPOSE associated with the ingredients.

Looking forward, consumers will be more 21 t 200 t 201 concerned about ingredients and products sep 6- sep 6- that provide nutritional, physical or emotional Natural benefits and meet their requirements for 17% 29% self-care.18 The Functional Beverages Market Product Claims a 7 a Ie no additives/preservatives, ug 2 0 0 ug 2 017 is expected to grow at CAGR 5.5% by organic, gmo-free 2022,19 as consumers increasingly look for beverages to provide functions including energy and relaxation. Over a third of iGens say they would pay more for tea 20 or coffee with added health benefits.28 UK US MATCHA matcha HEALTH IS THE FASTEST TURMERIC TEA TOP tea 24 TEA TRENDING camomile tea GROWING CONSUMER NEED MATCHA POWDER FLAVOUR turmeric tea Camomile TEA ginger ale +5% +9% SEARCHES green tea shot VS 2016 VS 2014

“We are seeing a new passion for as people discover their wonderfully complex flavours and aromas. Newer origins such as , Meghalaya (in Northeast ) and Hawaii are attracting attention” Jane Pettigrew, UK Tea Academy, Course Director

THE TEAREPORT 2018 3. NEW SENSATIONS 4. PROCESS 5. AFTERNOON , Matcha, Cold BECOMES PRIMARY TEA REIMAGINED Brew and Nitro Tea are Consumers are looking for an This quintessential tradition creating new sensorial experience that reflects their continues to evolve with experiences in the tea desire to premiumise their operators offering eccentric category out of home. beverage choice. Experience twists to the classic high The Global kombucha market has become a bankable tea menu. In the future, is expected to experience commodity for brands and tea sommeliers will play a significant growth throughout cafés alike. Two-thirds of huge part in the ceremony, the forecast period from British consumers tell us that with consumers hungry 2018 to 2021. they strongly or moderately for the theatre that comes feel the need to satisfy their with this British tea ritual. “There’s a huge opportunity desire for new experiences.26 to convert in-home tea drinkers to purchase a brew out of home. Creating the “In the future I expect art of the perfect serve to see new innovations and adding theatre to in technology, and have their tea offering is vital. something specifically There’s a plethora of new designed to brew the tea that and exciting blends and could sit alongside the coffee infusions of tea out there…” machines. Tea offers need to be deconstructed and then Steve Slark, Chairman, Beverage put back together in a simpler Standards Association formula for consumers to find it interesting. ” Steve Fox, Purchasing Director, Bartlett Mitchell

25 INSIGHT PARTNERS & ABOUT TETLEY

ABOUT TETLEY SHARING OUR KNOWLEDGE - TEA MASTERS Tetley has over 180 years of expertise and is In 2016, Tetley launched the UK’s first ever free enjoyed in over 70 countries, with more than 45 online training course to support operators in million cups of Tetley consumed every day. With an improving consumers’ experience of tea service. unsurpassed knowledge of the tea industry, Tetley Tetley’s Master Blender Sebastian Michaelis is proud to be the nation’s most trusted tea brand. takes users on a journey from crop to cup, and addresses the barriers in tea service out of home. RESPONSIBILITY TETLEY HYDRATION HANDBOOK With global presence comes global responsibility, and Tetley has led the market in producing a The Hydration Handbook covers an array of ‘greener’ cup of tea for foodservice operators. aspects that all contribute to tackling dehydration In addition to its membership of the Ethical Tea within the elderly community. From helping Partnership, Tetley is committed to sourcing all carers spot the signs of insufficient hydration to its tea from Rainforest Alliance certified farms. exciting activity ideas, the handbook encompasses Tetley’s advanced knowledge of the channel, as Tetley is dedicated to providing education to help well as offering inspirational recipe ideas. highlight the significance of tea in care surroundings and the importance of tea in maintaining sufficient TETLEY BREAKFAST GUIDE nutrition and hydration in patients, staff and visitors. The Breakfast Guide offers insight into the OUR OUT OF HOME WEBSITE brunch market and advice from industry experts in creating innovative and on-trend The dedicated Tetley out of home website dishes that are worth waking up for. (tetleyteaacademy.co.uk) offers expert advice on products and provides invaluable VISIT TETLEYTEAACADEMY.CO.UK education to help blend the best brews. As well TO DOWNLOAD YOUR COPIES OF as information on the Tetley product range, THE HYDRATION HANDBOOK AND POS materials including display equipment, THE TETLEY BREAKFAST GUIDE stands and mugs are also available.

LOVE TEA? Join the Twitter conversation @TetleyTeaOOH

THE TEAREPORT 2018 CGA IS THE DATA AND RESEARCH From its offices in Manchester, United CONSULTANCY OF CHOICE FOR Kingdom, and Chicago, United States, CGA THE OUT OF HOME FOOD AND experts work with many of the world’s biggest consumer brands, including DRINKS MARKET, SPECIALISING drinks manufacturers, consumer brand IN MARKET MEASUREMENT, owners, food suppliers and wholesalers CONSUMER RESEARCH AND as well as pub, bar and restaurant LOCATION PLANNING. retailers and government entities. Founded in 1992, CGA’s mission is to use What sets CGA apart is its unique ability its phenomenal data and expert insight to access the three key types of data of the leisure industry to give these (supply, demand and consumer) and brands the competitive edge, and get then triangulate this data to provide the them where they want to be, faster. most complete and accurate picture of anyone in the out of home sector. TO LEARN MORE, VISIT:WWW.CGA.CO.UK.

SOURCES 1 CGA Tetley Research Project 2017 | 2 Salesout Consolidated Tea Category Report MAT 8th Oct 2017 | 3 MCA Allegra OOH Tea Data June 2016 | 4 Kantar Worldpanel Usage | OOH Paper Diary | 12 m/e May 2017 | Occasions (millions) | Total Hot Drinks| Total Obtained OOH excl. Friend/Relative Home | 5 Tetley Tea Break Mission Report | 6 Mintel 37% of brits aged 25-34 drink 5-6 different tea types august 18th 2017 | 7 A M El-Sharkawy,O Sahota, R J Maughan and D N Lobo 2014 | 8 Is late-life dependency increasing or not? A comparison of the Cognitive Function and Ageing Studies (CFAS) 15th August 2017 | 9 Project Café 2017 UK, Allegra World Coffee Portal | 10 Mintel’s Coffee Shops 2016 report | 11 UK Hotels Forecast 2017 | 12 Barclays Tourism Report 2017 | 13 Beacon 2015 survey | 14 NPD Crest 2016 | 15 Shake up your wake up | 16 M&C Allegra Food To Go Report 2015 | 17 MCA Insight – Tea Consumption In the UK Eating Out of Home Market, for Tetley, May 2016 | 18 Mintel Food and Drink trends for 2018 | 19 Kantar Worldpanel - Trends in Beverages | 20 Mintel Global New Products Database (GNPD) | 21 Google Hot Beverage Trends report 2017 | 22 Kantar Worldpanel OOH, 52we 26 March 2017 (44we Growth YoY) | 23 UK Tea & Infusions Association | 24 Kantar Worldpanel: Online consumption diary (in home and carried out) 52 w/eMarch 2017 | 25 Kantar Worldpanel Usage | Main Panel | 52 w/e 18 June 2017 vs. 2016 vs. 2015 | Occasions (%) | Total Food & Drink | 26 Tetley The Future of Tea Report | 27 Salesout Wholesale Beverages report 26-Nov-17 | 28 Mintel Global Food and Drink trends 2017

27 Visit tetleyteaacademy.co.uk to find out more and discover our product range and marketing support, including free POS and serveware. Join the conversation @TetleyTeaOOH