PG Tips and Lipton

PG Tips and Lipton: Big Brands For Sale As Tea Consumption Dips?

PG Tips and Lipton: There’s a possibility that Unilever could offload the ‘PG Tips’ and ‘Lipton’ tea brands as a consequence of declining sales, according to the BBC.

Unilever is said to be reviewing its tea business amid a slowdown in sales of traditional black teas against a rise in the popularity of herbal varieties, as CEO Alan Jope seeks to refocus the business and concentrate on fewer brands.

PG Tips and LiptonPG TIps and LiptonThe announcement about PG Tips and Lipton came as Unilever announced its slowest quarterly growth in a decade: sales in the final quarter of 2019 were up just 1.5%, although an improved performance is expected in 2020.

Unilever said it would ‘look at “all options” for PG Tips and Lipton, including a partial or full sale

According to research firm Kantar, the British tea industry is worth £667m a year, but over the last two years, demand for traditional black tea has fallen by 2.7%. In contrast, demand has risen for other types of tea, with herbal teas now worth £52m and cold infusions valued at £11.2m.

PG Tips and Lipton: PG Tips was launched in the UK in 1930 by Manchester-based firm Brooke Bond. Its original name was Pre-Gestee, implying that it had digestive properties. Grocers and salesmen shortened it to PG. The “Tips” was added in the 1950s

PG Tips spawned the longest-running ad campaign on British TV, running for almost 50 years. It featured chimps dressed as humans and voiced by actors. Within two years of the first TV appearance of the chimps in 1956, PG Tips was the UK’s top-selling tea. You can see all those famous ads HERE on YouTube

Brooke Bond was acquired by Unilever in 1984, but PG Tips continued to sell well. Last year, PG Tips was overtaken as the UK’s top tea brand by Twinings, which was then in turn leapfrogged by Yorkshire Tea. It’s almost unthinkable that the future of PG Tips and Lipton now appears to be in doubt…

More tea news on Planet Vending HERE

 

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The Editor

Planet Vending’s Editor is Ian Reynolds-Young and it’s Ian’s unique writing talent that has made PV what it is today – the best read (red) vending blog in the world, and vending’s best read (reed). Ian ‘tripped and fell into vending’, in the capacity of PR executive, before launching a specialist agency, ‘reynoldscopy’, dedicated to the UK Vending business. The company continues to represent the interests of many of the sector’s leading brands.

‘It’s all about telling stories’, he says. ‘We want to make every visit to PV a rewarding experience. By celebrating the achievements of the UK’s operating companies, we’re on a mission to debunk the idea that vending is retailing’s poor relation.’

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