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Tea ad spending soars amid flourishing business
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Tea time: An official writes down information on a special bag containing a tea sample inside a tea archive room belonging to state-owned tea and coffee distributor, PT Kharisma Pemasaran Bersama Nusantara. (JP/R. Berto Wedhatama)
T
he flourishing tea industry in Indonesia, the world’s seventh-largest tea producer in the past decade, has resulted in the rise of advertisement spending on tea products by eightfold from 2007 to 2016.
Data from market research firm Nielsen showed ad spending for tea products on television and in printed media soared to Rp 2.6 trillion (US$201.1 million) last year, compared to from Rp 311.6 billion a decade ago.
From last year’s figure, ad spending for ready-to-drink (RTD) or bottled tea contributed the most with 77 percent while the remaining 23 percent was contributed by non-ready-to-drink (non RTD) or tea bags products.
“Development in the processed tea industry is bombastic and it still has vast room to grow, provided low tea consumption in Indonesia at about 390 grams per person per year,” National Tea Board chairman Rachmat Badruddin told The Jakarta Post on Saturday.
“Firms are competing to come up with their own RTD tea drinks because tea carried a healthy drink image and Indonesians are used to non-carbonated drinks like this.”
(Read also: Booming tea imports expose irony for Indonesia)
For the 2007-2016 period, the number of RTD tea brands advertised increased from 12 to 20, while the number of producing firms rose from seven to 16.
Teh Pucuk Harum (PT Mayora Indah) was the top ad spender last year, followed by Teh Gelas (Orang Tua Group) and FresTea (Coca Cola Group) in 2016.
Over the past years, new brands like Teh Sisri, Teh Javana and Ichi Ocha have been introduced to compete with the 46-year-old legendary Teh Botol Sosro. (hwa)
