Tata Consumer Products UK Group has announced the acquisition of a 23.3% stake in South African tea company, Joekels Tea Packers, for $5.28m. The acquisition, made through Tata Consumer Products’ step-down subsidiary, Tata Consumer Products Overseas Holding Ltd, will increase the company’s holding in Joekels from 51.7% to 75% of the equity share capital. The remaining 25% stake is held by the joint venture partners.
Joekels Tea Packers is a subsidiary of Tata Consumer Products and is the largest packer of Private Label teas in South Africa, including the Tetley and Tea4Kidz brands. Over the past 25 years, the company has established seven renowned brands and has won a number of awards. Its Laager Rooibos brand has become the second largest Rooibos (red tea/redbush tea) brand in the world. Tetley has also made significant inroads in the South African market, with its Tetley Green tea becoming the leading Green tea in the local market just six months after its launch in 2017. Joekels operates five factories in South Africa.
The acquisition comes at a time when the South African tea market is projected to grow by 11.8% (CAGR 2022-2026), according to Research and Markets. Consumers in the country are increasingly experimenting with non-traditional ways of consuming tea, including the creation of novel combinations with other beverages and foods, as well as the emergence of new and innovative methods of consuming tea, such as tea cocktails. Tea cocktails are becoming increasingly popular globally, with establishments like the 100×100 Arabica Tea and Tea shop in Spain offering a range of tea-based non-alcoholic beverages, including mojito Green Team, spritz red fruit, and gin and Tea.