‘Of the tea people. By the tea people. For the tea people.’
That’s how the ‘About us’ page on Society Tea’s official website greets us. Karan Shah – whose family started wholesale and exports of tea in 1915 at Mumbai’s Masjid Bunder, set up Hasmukhrai & Co. in 1933 and whose father Atul H Shah founded the Society Tea brand for the company in 1990 – has his task cut out along with his kin in the business.
Their task is to stay true to the obsession for quality and consumer feedback that helped founder Amarshi Bhurabhai Shah establish the business, leverage the legacy, and on the other hand innovate like Atul did and expand the portfolio in line with consumer preferences. All that sounds easier said than done. But Karan and co. seem to be on track on the quality, diversification and expansion fronts.
Karan Shah, Director, Society Tea, explains the beliefs that have endured since the inception of the business.
He says, “Tea is very important to us and we don’t take anything that we do lightly. Every little thing that we have done, every little shop that we have set up or every plant that we have put up, and every product that comes up, Society Tea does it very carefully and seriously.”
Society Tea claims to have over 40 pc market share in Maharashtra,its state of origin. Besides a thriving exports business, it has also strived to establish a national presence foraying into other states. It is also customising its efforts in cities within Maharashtra and elsewhere.
Noting that one needs to pick one’s battles, Karan names Tamil Nadu, Karnataka, Gujarat and Madhya Pradesh among focus markets for expansion for Society Tea.
In the US, Society Tea products are available via Amazon US across the East and West coasts. In India, it is available via e-commerce and quick commerce platforms. Karan sees digital, which has been seeing healthy year on year growth, as ‘a huge driver’ for the company over the next five to 10 years.
Customising for Every Market
“Communication is very important to us. For us, before entering any market, it's important that we understand it and know our consumer beforehand. Every part of the country is different, every city is different in every way and there’s a different kind of pride that comes with it,” notes Karan.
He cites the case of the Kolhapur market which is quite different and takes pride in its unique identity.
“There's a different kind of pride there in being Maratha. It's just a different market. And you would think off the top of your head that it's a tier 2 market. I don't know what a tier 2 means now – the lines are very blurred,” he notes.
“We spent two weeks in the city to get the taste of what the city resonates with,” adds Karan.
While the core brand’s blend remains untouched, different blends are curated as per each region’s palate.
“We don't change Society's blend. And that's why we have other brands available. We don’t take our blends lightly. A tea which is popular in one part (of India) might necessarily not be popular in another. It’s all about the region’s palate. We understand the people and the market and we understand what they like to drink. To cater to the different tastes, we have a second arsenal of brands for which we have tailor-made each brand. All our blends are completely unique and tailored to the region based on what will be appreciated,” he explains.
No Compromise, High Consciousness
The founding fathers’ focus on quality is another cornerstone that remains uncompromised. Karan underlines that today, when addition of colour in tea has become permissible, and brands do engage in the practice, Society Tea does not – because it takes health very seriously, as do consumers.
He notes, “Every little thing that goes into making our product is made by us in our factory. We are one of the few companies that do both milk and tea. We are very stringent with our quality.”
Karan reminds us that India is coming into its own in terms of making sure that the consumer is protected. The consumer is also coming into his or her own, with greater awareness and consciousness, he adds: “I think it’s coming full circle. I think because of the lockdown, people have started taking a lot more time reading, understanding what they're putting in their body.”
Beyond Tea
Iced tea, one-minute tea, instant coffee and shakes are logical extensions of the portfolio that have been launched. From desi ghee to haldi doodh in dairy to pickles and chutneys, the company’s offerings have expanded well beyond the core as well.
Karan believes there is a market for each of these products, as long as there is quality and differentiation. Some of the recipes in the food offerings have been handed down within the family over generations. He is happy with the journey thus far but it’s far from over as far as the product range goes.
“Yes, we are planning on exploring other categories. Health is something we're looking at very seriously. We want to make something that we can truly stand by. Ready-to-drink bottled iced teas are a couple of months away,” he adds.
The brand has also established quick service restaurants (QSR), opening its first in Mumbai in 2019. The next two years posed the Covid challenge to all formats of eateries, but several of them are back on track now.
“Our QSR format is now live and it’s a very big project for us. We have around 50 QSR format stores and plan on adding 100 more in and around the city of Mumbai in the next six months,” he affirms.
From a revenue standpoint, Shah reveals that while tea contributes the maximum, it is followed by the premixes, green tea and then by pickles and chutneys. Skimmed milk powder follows thereafter.
‘A Tea Society Called India’
Society Tea has launched some memorable campaigns in the past, including ‘The Tea Society Called India’ that celebrated India’s love for the beverage.
Being a legacy player since 1933, Society has been through the transition from offline to digital. The brand is present across ATL and BTL, and strongly across digital channels and e-commerce platforms.
“We have been savvy in terms of understanding trends and seeing where India is going. We know the customer. We are the customer. We are seeing a very healthy engagement but we scale with the right engagement and catering to the right audience,” explains Karan.
It has embraced digital channels in step with consumers, and aligned with its online sales and geographic expansion. It is also not losing out on the opportunities for moment marketing, whether aligned with the monsoons or the Chandrayaan 3 mission.
It boasts close to 200,000 followers on Facebook, while on Instagram, it claims to have grown organically from five and a half thousand followers in January 2020 to 38,000 followers in June 2023.
“Our customers are at multiple places and we have to reach out to them at different touchpoints. We know the touchpoints they will be available at. We take a digital-first approach today,” he says.
On changes in the marketing approach, if any, Karan underlines that with the journey of the product and brand being consistent, nothing has fundamentally changed.
“What changes is that now we are utilising the tools we have available to us to talk to a consumer like we have never talked before. Targeting is just a different ball game altogether. We understand them very well ourselves. Now, because we have these things that are available, we utilise it. We're making products for tomorrow's customer. Our focus is tomorrow's customer while not losing focus on today's customer as well,” he adds.
Present across local kirana stores to the high-end departmental stores, Society Tea is as FMCG as it gets on distribution. Besides online marketplaces, the company sells through its own D2C platform.
“While brick and mortar has been there since the 1960s or the 1970s, with digital penetration, we are seeing double digit online growth year on year. We are present on Amazon, Flipkart and on every quick commerce player including Swiggy Instamart, BlinkIt and BigBasket. Through our website, we cater to around 35,000 pincodes in the country today,” he reiterates.
On its website, there are 44 stores listed in the US alone, where consumers can pick up Society Tea. This augments the online channel. But the immediate focus is on untapped India.
“We are investing in India. There's a lot that we're doing to invest in tomorrow's customer very seriously. We're looking at making sure that we take a good, affordable, quality conscious product deep into India. We're taking the product into tier 2 and tier 3 now, focusing on making sure that we can bring to India what we did to Maharashtra,” surmises Shah.
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