Unilever considers selling tea brands as UK market set to decline to 7.8bn litres in 2019, says GlobalData


Following on from the recent news (30 January 2020) of Unilever looking to sell its PG Tips and Lipton brands, Arian Bassari, consumer analyst at GlobalData, a leading data analytics company, offers his view on these developments: “Unilever selling its PG Tips brand would not be a surprise given that UK hot tea sales are on a downward trend, seeing negative growth between 2016 and 2019. This will result in a lower volume consumption of 7.8 billion liters – despite the UK’s historic (and sometimes obsessive) tea-drinking habits.

“Younger consumers, who find themselves constantly on-the-go and time-scarce are choosing coffee as a much needed energy boost to fuel their hectic lifestyles. While tea will remain much loved in the country, coffee just hits a spot for younger consumers that a cuppa doesn’t.

“The UK coffee scene offers a number of caffeinated creations, with clear opportunities for Unilever to cash in on, ranging from nitro-infused brews and cold brews, to decorative lattes and seasonal drinks. Brits are adopting a fast-paced lifestyle, often paired with habitual coffee-drinking.”