Russia Tea Market

Topics: Tea, Green tea, Russia Pages: 7 (2156 words) Published: December 25, 2011
Russia tea market
Most of Northern European Russia and Siberia has a subarctic climate, with extremely severe winters in the inner regions of Northeast Siberia (mostly the Sakha Republic, where the Northern Pole of Cold is located with the record low temperature of −71.2 °C/−96.2 °F), and more moderate elsewhere. The strip of land along the shore of the Arctic Ocean, as well as the Russian Arctic islands, have a polar climate. Throughout much of the territory there are only two distinct seasons—winter and summer; spring and autumn are usually brief periods of change between extremely low temperatures and extremely high. The coldest month is January (February on the coastline), the warmest usually is July. Great ranges of temperature are typical. In winter, temperatures get colder both from south to north and from west to east. Summers can be quite hot, even in Siberia.The continental interiors are the driest areas.

The tea market continues to develop
The annual volume of the Russian tea market in 2002 has grown. It has demonstrated persistent increase in terms of volume by 3% and in terms of value by 7%. The source of the growth is the increase of the population income and number of the tea factories in Russia, improvements in the production and logistics functions, development of the retail chains. The tea production in Russia grows

For the last several years there has been a stable growth of the bulk tea import to Russia. After the tariff rates for the import of the bulk and packed tea had been differentiated it became more profitable to carry out the secondary processing and packing of the bulk tea on the territory of the Russian Federation. This led to the dramatic change in the import structure - the share of the bulk tea import increased from 30% in 1998 to 68% in 2002. The state investment policy triggered the intensive development of the tea production capacities in Russia and facilitated the present situation when all the major tea market operators have their own packaging factories in Russia. Orimi Trade started to operate its tea factory located in Leningrad Oblast in the year 2000. Accordingly to the opinion of the industry experts the tea factory "Nevskiye Porogi" is one of the most up-to-date tea packaging factories in Europe.

The tea from Ceylon instead of Indian tea
India has for long time played the leading role in the structure of the tea import to Russia. After the cancellation of the state benefits in the form of the tax concessions for the goods imported from India the share of the Indian tea in the overall import volume decreased. In the new market reality Indian tea lost the competition to the tea from Ceylon which proved to have better price/quality ratio and took second place in terms of volume on the Russian market. In the year 2000 the market share of Indian tea amounted to 71% but it has been decreasing ever since. In 2001 India still remained the major supplier of tea to Russia with the share of 50% in the overall import mix. 2002 totals show that Ceylon tea has 39% share of all tea import while Indian tea has only 33 %. The Russians prefer to drink tea

The average annual per capita tea consumption in Russia is 1 kg. Around 95% of the Russians drink tea. The tea is drunk mainly hot that is why it is a seasonal product with the consumption rate peaks in winter months. The average hot beverages per capita consumption mix in Russia is the following: the average Russian drinks 3 cups of hot beverages daily, half of the population drink daily two cups of tea and one cup of coffee. Brand loyalty

When buying tea the Russian consumer first of all pays attention to the brand name. 86% of those who buy tea limit their choice to 3 brands. Around 70% of tea buyers demonstrate the persistent loyalty to the brand. During the last half a year around 21% of them has refused from the previously bought brand. The most commonly...
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