Tea in Venezuela

PROSPECTS

Venezuelan consumers’ interest in tea diminishes

For many years, the expansion and development of tea has been jeopardised by low disposable incomes, a weak tea consumption culture and strong competition from coffee. Since 2015, tea has posted double-digit sales declines caused by different variables.

Slimming tea is less important in a country largely deprived of food

Overall food scarcity, in particular in terms of staple foods, reached seriously low levels in 2016, which continued into 2017 when several NGOs called it a famine. According to the Survey of Life Conditions (ENCOVI in Spanish), 73% of people surveyed stated that they experienced an unplanned loss of 8.

Tea’s high unit prices deter demand

In spite of companies such as Alfonzo Rivas & Cía promoting new ways of drinking tea, demand remains low in the country. When prepared as a cold drink, tea faces strong competition from tea concentrates, which are sold at much lower prices.

COMPETITIVE LANDSCAPE

McCormick continues to lead the category in 2017

Alfonzo Rivas & Cía led the category in 2017, after an unstable presence during 2016. This company has the exclusive rights for the manufacturing and distribution of the international brand McCormick, which has a long tradition and a well-established reputation not only in tea but also in table sauces and herbs and spices.

Herbalife withdraws its slimming tea from the Venezuelan market

Slimming teas emerged over the review period with the Herbalife brand and gained increasing consumer-awareness as an aid to losing weight. However, towards the end of the review period Herbalife was withdrawn.

Packaged tea continues to dominate the category

The presence of unpackaged tea is minimal in Venezuela, and is mainly available at tea specialist shops, which sell it for foodservice consumption. Given the low per capita consumption, and a customer base largely made up of mid- and high-income consumers, the informal market for unpackaged tea is not regarded as having room for expansion.

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