Vending International
Picking tea - what's in the cup?
Published:  20 January, 2008

Tea is tea! Its health benefits are well known and accepted, but there seems to be a hurdle in the way of making it a must buy from a vending machine. No matter how clever you make the vending experience, getting your cuppa from the machine is not the same as making it in the pot. So, just what do customers look for in their cup of hot cha? Furthermore, what new ideas can vending operators adopt to make their offerings more appealing and add that extra factor at tea time? Iestyn Armstrong-Smith asks is it a matter of good branding?

One of the key things for any business these days is branding and how the buying public reacts to brands. It is true that a percentage of the public buys on price and nothing will change their minds. When it comes to buying from a vending machine though, there is little room for manoeuvre. If they are in the buying mood, they will buy regardless of what faces them. This does not mean that they enjoy their experience; in fact many are simply resigned to it because there are no other options other than to abstain from vended tea. Then there are those who would class themselves as being more enlightened and warm to the ideals of buying quality, ethical products. Such consumers look for brands that they appreciate because they promote excellence. Some go even further and understand what those brands are built on.

But what about tea? It is very strange that as a nation we would rather buy an awful cup of coffee before we would buy tea from a vending machine. Why is that? The suggestion is that coffee is so well marketed that we subliminally tune into latte and ‘cinos regardless of the taste. Tea advertising though seemingly does not translate into the vending world. We have a picture of a hot brown liquid in a plastic or cardboard cup entrenched in our minds and that's about the size of it. Doesn't quite work does it? However, we have to begin changing the minds of consumers.

Branding importance

There is a huge opportunity here to build a strong brand for the vending company based on the branding of the products vended. This makes use of brand perception and this is relative to what the public is already attuned to via marketing messages / advertising.

Most evenings - or so it seems - Chimp and Al or Stephen Fry attempt to woo us with the charms of tea. So thanks to Twinings and PG Tips we are very receptive to tea in ‘normal' scenarios involving a bit of DIY tea making. Brands are therefore very powerful vehicles in such situations.

Like most products these days, the brand is the ultimate icon for the company. Products come and go, but good brands remain. This is the key thing that links the buying public to the seller; they come to expect a level of excellence from such and such a brand. Indeed, people will make purchases based on brands and so why not vended tea? The leaders in the tea market certainly have strong brands on which they have spent much time, effort and money to develop.

Brands have certain facets that the company promotes. In the tea market, companies are very much in tune with environmental and social responsibility, together with dietary and health benefits. This offers the purchaser the reassurance that they are not exploiting the tea growers when they buy their favourite brand(s). This helps reinforce that not only are consumers purchasing quality products, they also feel that they are doing something good - and rightly so. The question is: Can we utilise this in the vending environment?

So what are the main companies doing?

Digging around various websites and trolling through literature from a selection of top tea brands turns up some very interesting information. Foodsolutions Europe, for example, has recently launched its Lipton Kericho Estate tea. This is Unilever's first tea estate to be certified by the Rainforest Alliance.

This is the first step in a process that will see all Lipton Yellow Label and PG Tips tea bags in western Europe fully certified by 2010, and all Lipton tea bags globally by 2015.

"The launch of this tea celebrates the Rainforest Alliance's recent certification of the Unilever-owned Kericho estate in Kenya," says Michiel Leijnse, Global Brand Development Manager for Lipton. "The estate met all the tough standards required for certification, including good conditions for employees, environmentally-friendly agricultural processes, and wildlife protection."

According to the company, the launch was also driven by a strong business rationale. Many Foodsolutions customers in Europe have been clamouring for a sustainable tea as corporate responsibility becomes increasingly important to their business.

Of course, it's increasingly important for consumers too. As Michiel explains: "The next step is to extend the certification process to Lipton Yellow Label and PG Tips. That will be a bigger challenge, as these are blended teas sourced from various third party-owned estates -all needing to be certified.

"But with the launch of Lipton Kericho Estate tea, we've made our commitment very clear."

Susan Gregory, Business Development Director, Foodsolutions Tea Europe, strongly agrees that the launch represents a milestone for Unilever: "This is a significant step forward in the tea industry, and we're delighted to be at the forefront. Although there is still a long way to go before all our tea is certified, the launch of Lipton Kericho Estate tea is a momentous start."

Twinings takes a healthy and socially aware approach

Twinings is committed to the ethical sourcing of tea and is a member of the Ethical Tea Partnership. This organisation monitors conditions of tea production around the world to ensure that tea estates comply with the relevant laws and union agreements of their country in the areas of employment (including minimum age and wage levels); education; maternity; health and safety; housing and basic rights. The Ethical Tea Partnership strives to work in close partnership with tea producers and other stake holders to encourage open dialogue to ensure appropriate living and working conditions of tea estate workers and seek improvements where needed.

Twinings produces a range of organic teas and infusions. According to the company, these products come with all the flavour and purity you'd expect from Twinings plus the peace of mind that goes with reduced use of chemical and pesticide growing methods.

The organic method combines a sound understanding of modern soil science with traditional methods of growing and pest control. Many people maintain that they taste better too.

Twinings sources organic teas from a handful of carefully-selected tea estates around the world. Each estate is an integral part of its unique local environment, the Korakundah Tea Estate in the Nilgiri Hills of southern India is typical of the partnership between organic tea-growers and nature.

Ty.phoo stamps its mark

In the predominantly educated market of vending machine users and with quality increasingly important to consumers, is it enough to simply offer a simple, unbranded cup of tea in vending machines? Offering a renowned brand can offer huge profit potential and with over 100 years experience in the development and supply of tea, Typhoo is one of the nation's top tea brands, an established household name and the perfect choice for vending machines.

Sue Jones-Smithson, customer marketing manager, Typhoo, says: "A famous brand like Typhoo is a reassurance of quality for consumers. There is traditionally strong brand loyalty in the tea market, often spanning generations as consumers choose the same brand they grew up with, and according to Mintel 36% of retail customers always buy the same tea brand. By offering the same great tasting cuppa that consumers are used to at home with Typhoo in a vending machine, outlets can add value to the menu and increase profit potential.

"Research shows one in ten consumers do not trust vending machines for items prepared by the machine such as hot drinks and 13% think the quality is poor. The reinforcement of a trusted brand like Typhoo can help change attitudes."

Jones-Smithson adds: "The key driver for vending machines is convenience - over half of all consumers who bought tea from a machine did so because it provided a quick and easy way to get their drink. But 40% only use vending machines when there is nowhere else to go and this is the sort of attitude that needs to be changed if vending machines are to be used to their full potential for hot drinks."

In addition to a reassurance of quality, the Typhoo brand offers confidence in its commitment to environmental and social ethical sourcing - a key driver for vending customers. Mintel research shows there is growing demand for ethical products in the vending sector - especially among hot drinks - and this has led to more products seeking accreditation.

Jones-Smithson adds: "Typhoo was instrumental in the formation of the Ethical Trading Initiative (ETI), and is a core member of ETI which is an organisation where business, unions and charity organisations work together on ethical trading in supply chains. We also monitor our suppliers against the ETI Base Code."

The way forward for tea vending; who has the answer?

Can piggy backing on good brands help improve opportunities for vending tea? The argument at the moment rests in the ‘Yes' camp. We see this in other forms of retail, so why not in this situation. We however are only observers, you are at the sharp end of dealing with the consumer. Therefore tell us about your experiences of making tea the number one beverage for 2008.






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