Russia: Premium segment is growing on the tea market

Russian tea market has remained stable in terms of volume during several last years, 160—170 ths. t per year.

Its volume in monetary terms has been valued at US$ 1 bln. during the last three years. Among the basic market trends its participants and experts mention premium segment growth, as well as increased demand for packeted tea. Premium segment share is over 46%, according to «Nielsen Russia» and tea in packets is consumed by 70,3% of population (data of TNS GallupMedia).

(Novosti torgovli, 2007, issue 9)

Russia: Tea and coffee output went up in the 1st quarter of 2007

Domestic enterprises produced 16,2 ths. t of natural coffee in the 1st quarter of 2007, which is 5,3% more than for the similar period last year according to the data of Rosstat. Packaged tea production went up by 6,8% to 67,5 ths. t during six months.

(Food industry, 2007, issue 9)

Russia: Coffee market is growing by 25% per year in value terms

Coffee market is growing much faster in value terms than in natural terms: by 20—25% per year versus 8%, according to the company «Proryv».

Consumers are reorienting at more expensive and qualitative types of products, i.e. natural and sublimated coffee. Natural ground coffee segment is increasing most actively, i.e. its growth made up 18% in 2006 and sales exceeded sales in granulated coffee segment for the first time, according to estimates of the company «Express-Obzor». As a whole, coffee is getting a more and more popular drink in Russia; tea demand is going down, especially on the part of young population. Sales of coffee amounted to 130 ths. tons in value terms, i.e. US$ 2,5 bln. in 2006, which exceeded tea sales by US$ 200 m.

(Shokoladka.ru, 09.10.07)

Russia: Tea market is consolidated

Russian tea market is distinguished by a high degree of consolidation: seven leaders, i.e. «Avalon», «Akbar», «Akhmad», «Grand», «Dilmah», «Orimi Trade» and Unilever (enumerated in alphabetic order), controlled over 80% in natural terms in 2006, according to «Nielsen Russia».

A general trend of increase in demand for more expensive and qualitative products is typical of tea market. Scented teas remain the most popular, i.e. over 30% of sales fell to them last year. This segment along with the green teas segment shows the highest growth rates on the market.

(Shokoladka.ru, 09.10.07)

Russia: Cold tea sales are growing at a rapid pace

Consumer preferences on the market of soft drinks are slowly shifting to cold tea and mineral water, according to estimates of experts.

Cold tea sales are growing faster as compared with aerated drinks. At the same time shortfall for cold tea production is observed in Russia and launching new lines by active players can deeply affect the market, experts believe. Growth of the soft drinks market is forecast on the level of 6,9% up to 9,365 bln. l in natural terms in 2007.

(RBK Daily, 04.10.07)

Russia: Coffee mixes segment is growing

Survey of the company «Proriv» has shown that coffee mixes segment (coffee-mixes) was growing most rapidly in the second half year of 2006 and in the first half year of 2007.

Their share on the coffee market increased by 14% in physical and by 12% in money terms. At the same time the segment of ground coffee and coffee in the bean went up by 3.2% in physical and by 5.3% in money terms. The main reason of coffee-mixes popularity is time saving and convenient cooking.

(Yarmarka, 28.09.07)

Russia: «Rollton» has expanded the assortment of the tea Rolben

The company «Rollton» has expanded the line of tea under the trade mark Rolben. Novelties: black aromatized packaged tea (with the aroma of mint, peach, strawberries and lemon) and green tea (in packets and poured).

(AdMe.ru, 14.08.07)

Russia: The volume of the tea market has exceeded US$ 1 mlrd. in 2006

In 2006 the volume of the Russian tea market in kind exceeded 169 thousand tons, in monetary terms  US$ 1 mlrd, as it is communicated by the Russian tea and coffee association «Roschaykofe».

According to the data presented by the company «Nielsen Russia», the growth of sales in comparison with 2005 was equal to 2% in volume and 14% in cost.

(Vedomosti, 13.08.07)

Russia: «Rollton» has expanded the assortment of the tea Rolben

The company «Rollton» has expanded the line of tea under the trade mark Rolben. Novelties: black aromatized packaged tea (with the aroma of mint, peach, strawberries and lemon) and green tea (in packets and poured).

(AdMe.ru, 14.08.07)

Russia: The volume of the tea market has exceeded US$ 1 mlrd. in 2006

In 2006 the volume of the Russian tea market in kind exceeded 169 thousand tons, in monetary terms — US$ 1 mlrd, as it is communicated by the Russian tea and coffee association «Roschaykofe».

According to the data presented by the company «Nielsen Russia», the growth of sales in comparison with 2005 was equal to 2% in volume and 14% in cost.

(Vedomosti, 13.08.07)

Russia: Coffee market is nearly saturated

Coffee consumption in Russia has been increasing at a rapid pace for the past 15 years, i.e. coffee market went up by 176 percent from 1996 to 2005, according to experts’ data.

Nowadays the market is nearly saturated owing to the increasing share of domestic production. 64.7 percent of market fell to coffee produced in Russia in 2006, as compared with 58.2 percent a year before.

The coffee market volume exceeded 130ths. tons in 2006, according to the estimation of company Grand. 60-65ths. tons out of them fell to instant coffee, another 40ths. tons to coffee mixtures «3 in 1».

Experts forecast consolidation of the coffee market in Russia in the next three-five years. Small players will leave the market and the remaining big companies will start launching new production.

(Kompaniya, June 2007, issue 20)

Russia: General Director of FNC on the domestic coffee market

The General Director of the National Federation of Coffee Producers of Columbia (Federacion Nacional de Cafeteros de Colombia or FNC) Gabriel Silva estimated the Russian coffee market as the most dynamically developing in the world.

This makes it high-priority for the Federation. The Import of coffee from Columbia to Russia increased in recent years twofold — up to 3.4 million bags in 2006. 70 thousand of them were supplied by FNC. By 2010 the Federation intends to increase the volume of coffee export to the Russian market up to 100 thousand bags.

Russia: Tea and coffee yield grew in six years

Natural packed tea yield in Russia grew 16.7 times from 6.9ths to 115.7ths times within the period from 2000 to 2006, according to the Ministry of Agriculture.

Yield increased by 6.4 percent as compared with 2005. The yield of natural coffee increased 8.1 times from 4.2 thousand to 34.3 thousand tons for the last six years. The yield growth made up 56.3 percent, as compared with 2005.

(Pishevaya Promishlennost, May 2007, issue 4)

Russia: Cold tea market is 19 million dollars

According to the data of "Business analyst", the cold tea segment remains to be one of the most fast-growing in the market of soft drinks.

The total volume of cold teas consumption in Russia reached in 2006 18-19 million dollars, which is higher by 55% as against 2005.

High competition level is showed by the market now. 96.2% of the cold tea market in value terms fell in 2006 on three main brands.

(Business, 26.02.07)

Russia: Coffee market volume exceeded 115 thousandt in 2006

According to estimates of experts, in 2006 the Russian coffee market volume exceeded 115 thousandt in 2006.

85% of the total volume fell on instant coffee, 15% thereof fell on coffee beans.

(Yarmarka, 13.02.07)

Russia: Tea demand increased by 1.5% in 2006

According to estimates of Discovery Research Group, the Russian tea market volume is 160-220 thousand t, in 2005 it was 170 thousand t. This figure is estimated in value terms as 1-1.2 billion USD.

The tea demand in Russia increased in 2006 1.5% in comparison with 2005. The market volume in money terms increased by 15.7%. The low rate of growth of the market, 90% of sales whereof falls on black tea, is associated by experts with the balance in tea and coffee consumption in Russia.

The tea import grew by 8.6% during the last five years. Supplies from India decrease and the same from Sri Lanka, China, Vietnam increases.

(CoffeeTea, 16.02.07)

Russia: Coffee output increased by 47%, the same of tea — by 12%

According to state statistics, 23.6 thousand tons of natural coffee and 86 thousand tons of packed tea were produced in Russia in January-September, 2006.

Coffee production increased by 46.9%, the same of tea — by 11.8% in comparison with nine months of 2005.

Russia: Tea sales pattern by points of sale

According to ACNielsen research company, tea sales pattern by points of sale looked within the period from December, 2005 to May, 2006 as follows: point of sale /portion / change in comparison with similar previous period.

Supermarkets and minimarkets / 32.3% / + 4.8%
Grocery stores / 31.1% / — 3.9%
Stalls and pavilions / 2.4% / + 0.1%
Open markets / 34.2% / — 1%

Russia: 99% of sales of milled coffee fall on briquettes

According to ACNielsen, in January-July, 2006 the share of ground and grain coffee at the Russian market increased in monetary terms by 0.6% only as compared with similar period of 2005 and remained unchanged in physical terms.

The most popular packaging at the ground and grain coffee segment are briquettes, the sales share whereof was about 99% of the market.

Russia: Joining WTO didn’t affect the tea market

It is forecasted by experts that Russia's joining the World Trade Organization (WTO) and subsequent decrease of import duties for tea products will not affect substantially the Russian tea market.

Currently Russia depends practically completely from foreign supplies of tea. Thus, on the one hand, sharp reduction and abolition of import duties will permit Russian companies to reduce the products cost price. On the other hand, introduction of preferential duties will facilitate entrance to the market of new foreign players, which may result in strengthening of competition. The duty for leaf tea (equal now to 5%) will be abolished within one year after Russia's joining WTO, the same for packed tea will be decreased from 20% down to 12.5% within three–four years after joining WTO.

Russia/CIS: Tea import will grow up to 342.4 million kg by 2016

According to the UN Food and Agricultural Organization (FAO), the share of Russia in the world tea consumption, which reached 3361.6 million kg in 2005, is 5%.

The yearly level of tea consumption in Russia is estimated as 1.26 kg per capita. According to a forecast made by experts of the organization, the growth of the black tea world production volume will be reduced in the next decade down to 1.8% per annum (in 2005 it was 3%), and consumption thereof will grow, but slower than in the previous decade.

The largest growth of tea consumption is expected in CIS countries. The supplies of tea to the countries of former Soviet Union ill grow by 3% per annum and will reach 342.4 million kg by 2016.

Russia: The duties on the tea from Shri-Lanka will be decreased

During the negotiations about the admission of the Russia into WTO, the government of the Russian Federation and the authorities of Shri-Lanka came to the agreement on the gradual decrease of the duties on tea.

In accordance with the reached agreements, the duty on the leaf tea (now — 5 %) will be annulated within one year after the admission of the Russia into WTO, and as to the duty on the packed tea — within three–four years it will be decreased from 20 % down to 12,5 %.

Russia: On the market of coffee will be kept the established tendencies

By the opinion of experts, within the next years the Russian market of coffee will develop within the bounds of already established tendencies. The growth of consumers demand for this product is forecasted at the level of 3-5 % every year.

More quickly than at the average rate on the market there will increase the sales of natural coffee . The structure of consumption of the soluble coffee will continue displacing towards the more dear crystalline coffee.

In accordance with the data presented by the company “Business Analytics”, in 2005 on the market there was observed the tendency of development of the soluble coffee production in its complete cycle — from the transformation of raw stuffs up to the package of finished product.

In the segment of coffee mixtures the main growth of this segment was assured by the mixtures of the type “3 in 1” (coffee + sugar + cream) – on the share of this product category fell more than 70 % of the total sales volume in this segment.

Russia: Punch Coffee comes to Russian market

Laguena Emporium introduces a new product of premium category to the Russian market — Punch Special Reserve Coffee, which is intended for both HoReСa segment, and for those who value exquisite coffee.

The rare sort of coffee used in the production grows in Papua New Guinea. Its large and very dense beans contain saturated aroma oils which give rich, full and complex taste to the drink. The grown in shadow coffee beans are picked up manually and packed into a special wooden container from African mahogany.

The brand name originates not only from the strong taste (in English “punch” means “hit”), but also from a popular marionette Punch, whose name has become a synonym of fin and happiness. The picture of the doll with her big nose decorates the coffee packing and hints at the irresistible aroma of Punch No. 1.

Punch Coffee is exported all over the world, having customers in the most famous houses of London, Paris, Belgium, Kuala Lumpur, Mauritius and Maldives.

Russia: Sri Lanka proposed to reduce the duties on tea

Sri Lanka proposed to Russia to reduce the duties on the import of tea from 20% down to 12–13% within four years.

Russia is the most important buyer of Ceylon tea. It ensures 19% of sales of Sri Lanka’s tea market. In 2005 Sri Lanka delivered in Russia 32,600 thousand tons of tea by wholesale and 17,200 tons in packing.

Russia: Tea will be promoted among the young people

The Russian association of manufacturers of tea and coffee “Roschaykofe” and the Chinese manufacturers of tea are meaning to effectuate certain number of joint actions which must increase the consumption of tea among the young people. Today one of the problems of this branch consists in that “tea is losing its young consumer”. Meanwhile, the Chinese manufacturers of tea are planning to increase considerably the deliveries of green tea in Russia.

Today Russia imports 40% of tea from Sri Lanka, 20% — from India, 12% — from Indonesia and 9% — from China. The yearly consumption of tea in Russia is equal to 170 thousand tons, per capita — 1 kg a year. By the consumption of tea Russia occupies the third place in the world, after China and India. The volume of Russian tea market is evaluated as being equal to US$ 1 billion.

China/India/Russia: The consumption of coffee is growing

According to the information given by the Indian company Tata Coffee Ltd., the export of coffee is growing quickly thanks to the augmentation of consumption of this product in China, India and Russia. Many Chinese consumers little by little are passing from tea to coffee. The consumption of coffee in India has increased from 60 thousand up to 70 thousand tons. On the Russian market the consumption of coffee is growing by 15% a year.

Russia: About the reduction of customs duties for foods raw materials

The interdepartmental commission for protective measures in foreign trade approved the proposal concerning the introduction of the zero rate of customs duty for the import of certain kinds of foods raw materials on a constant basis.

The question is of oil-and-fat products, green coffee, cacao beans and ground-nuts. In addition to that, the commission supported the proposal of the Russian association of confectionery enterprises “Askond” concerning the abolition of customs duties on the import of nut raw materials (almonds, keshiu, hazel-nuts, sesame). The proposal concerning the augmentation of rates of import customs duties for processed nuts will be considered. There has been approved also the reduction of the customs duty on the export of sunflower grains by 5%.

Russia: Import duties for pre-packed tea can be reduced

In the nearest future Russia can reduce the import duties for pre-packed tea from today’s 20% down to 10%. As it was said by the General director of the association “Roschaikofe” Mr. Chanturia, such convention had been reached during the negotiations about the admission of Russia in the World trade organization (WTO). But the reducing of the import duties for pre-packed tea can take place only after the admission of Russia in WTO.

According to the experts’ opinion, such measure can create favorable conditions for the absorption of Russian operators of tea market by occidental companies, as well as lead to the increasing of competition, and oblige the national and foreign companies, which have tea fabrics on the territory of Russia, to transfer their production capacities in the countries with more favorable investments climate. Being so, the experts do not forecast the repartition of the market, because it is the most probable that its leaders will succeed in keeping their positions.

Russia: Import of tea and coffee in 2005 increased

In accordance with the dates presented by the Federal service of custom statistics (FSTS) in 2005 the Russian import of coffee from the far foreign countries grew by 35,4% if compared with 2004.

The import of tea from the countries of CIS in 2005 increased by 35,7% if compared with the preceding year.

Russia: Consumption of tea is equal to 170 thousand tons a year.

In accordance with the dates presented by the specialists, for today the consumption of tea in Russia is equal to nearly 170 thousand tons a year. As it was said by Ramaz Chanturia — General director of the Russian Association of tea-and-coffee manufacturers — the 40% of consumed tea are formed by the Ceylon one, 25% — by the Indian one, the further 35% — by the China, Indonesia, Kenya and Vietnam tea. In the structure of tea consumption there prevails the black tea (92%). The part of green tea is equal to nearly 8% of consumption, but its part is always increasing.

As it is noted by the experts, in spite of the several control of quality, nearly 2 thousand tons of tea on the Russian market are counterfeit.

Russia: The volume of tea market reached 170 thousand tons

According to the data of the Russian tea and coffee association “Roschaykofe”, in 2005 the volume of Russian tea market reached 170 thousand tons or US$1 billion in monetary terms.

Conforming to the investigation effectuated by the company “May”, the share of traditional black tea decreased, if compared with 2004, by 2,2% — down to 82,9%. The sales of the aromatized black and green tea increased by 1,1% — up to 8,8% and 7,2% respectively. The widest popularity between the Russians, if speaking about the aromatized teas, is enjoyed by the tea with bergamot: it occupies 60% of this segment. The demand for fruits-herbs mixtures increased in 2005, according to the data of the company “Orimi Trade”, by 20%. Their share was 1,1% of the tea market.

Russia: Tea from Sri Lanka occupies 42% of market

In accordance with the data of the association “Roschaikofe”, the leaders between the tea suppliers to the Russian market are: Sri Lanka — 42.8% of market, India — 25.6%, Indonesia — 10%. Less than 10% of market are occupied by: China — 6.8%, Kenia — 5.7% and Vietnam — 3.5%. For the other countries remains 5.6%.

Russia: Duties on the import of Indian tea will be reduced

Having signed with India bilateral protocol about entering into WTO, Russia accepted that it must be forbidden to the Russian tea fabrics to use the denomination of Indian tea protected because of origin.

Furthermore, Russia will have to reduce the duties on the import of prepackaged tea almost two times, compared with the existing ones, having made them reach the level of other countries of CIS.

Russia and India are planning, within five years, to increase the trade turnover up to US$10 billion by the year 2010 (beginning from the today’s US$2 billion). Within the bounds of program of development of the mutual trade between the countries there will be created the working group to elaborate the proposals for the elimination of the existing barriers in the trade-and-economic relations and to prepare the conclusion of full-scale economic agreement.

Russia: General director of Nestle about the company’s strategy

According to Bernard Menier, General director of the Russian representation of Nestle, his company considers the Russian market as very promising.

In particular, Menier notes the great difference of prices between the products of premium class and economy class, considering it as a specific features of the Russian market. In Russia the Nestle are planning to stake on the traditional orientation of their food business. In particular, in the segment of chocolate the company is planning to make accent on the premium products. According to Menier, the Nestle will develop the sales of premium chocolate in boxes. On the Russian market of coffee this company occupies 40% and intends in the perspective to conquer a share more than 50%.

The principal priority of the Nestle on the Russian market remains the interior growth, and in the same time Menier did not exclude the purchase of Russian business. It is also planned to reduce considerably the number of company’s distributors.