Dabur India reported that it entered the Rs 5,600-crore premium tea market with the recent launch of Dabur Vedic Tea. Dabur Vedic Tea is a premium category of black tea under the health supplements segment. Dabur seeks to get aggressive in the competitive packaged tea market.

The company entered the Rs 19,500-crore tea market back in 2020 with the launch of Dabur Vedic Suraksha tea, taking on leading brands like Brooke Bond Red Label Natural Care, Tata Tea Gold, and Taj Mahal from the stables of Hindustan Unilever and Tata Tea. According to Nielsen MAT data, the packaged tea market is growing at a compound annual growth rate (CAGR) of 8 per cent.

Its Chief Executive Officer Mohit Malhotra said that innovation is critical to Dabur’s sustained success and it would continue to launch new products to strengthen its portfolio.

He further said that the company is introducing a range of new products to enhance the addressable market. Dabur India has not only increased research and development (R&D) expenditure but is also ensuring that innovations are targeted and quick to market.

As per the reports, Dabur Vedic Tea is available in three stock-keeping units- 100 gms for Rs 60, 250 gms for Rs 150, and 500 gms for Rs 295. The company is positioning the product at the premium end of the market, growing around 15%.

Dabur is also planning to enter the loose tea market. Malhotra added that the Real Drinks brand, launched last year, hit the Rs 100 crore mark in its first year and is on track to break the Rs 200 crore mark this year.