Tata Consumer Products Ltd (TCPL) has cut prices across many of its tea brands after reduction in bulk tea prices. FMCG major Tata Consumer Products Ltd (TCPL) was planning premiumisation of its portfolio to drive growth in its packaged tea business a company official said on Tuesday. TCPL formerly Tata Tea sells orthodox and CTC tea under different premium and economy brands. TCPLs President On Price Cuts On Brands Puneet Das TCPLs president of packaged beverages India and South Asia said the company wants premiumisation of its portfolio to unlock value and drive growth. He said tea comprises a major chunk of the companys packaged beverage business with coffee accounting for a small percentage. Das said the coffee business though small is growing fast. He said the company is offering its packaged beverage products for sale in both general trade and e-commerce routes. Das said 80 per cent of sales come from the general trade route. He said West Bengal is a large market for loose tea both premium and CTC varieties. Tata Tea Past Performance Last year bulk tea prices rose sharply due to lower production putting pressure on the margins of packaged tea companies. The company managed to pass on part of the higher cost to consumers but also absorbed a significant portion which weighed on profitability. “Margins were affected but they have started recovering and are expected to return to normal levels by Q3” Das said. He was speaking on the sidelines of the launch of Tata Tea Gold’s limited-edition festive pack ahead of Durga Puja. The special packs created in collaboration with local Bengali artists are aimed at deepening consumer connect in a market where Tata Tea Gold is a leading brand. (With Inputs From PTI)