Tea sales rose 30% in December, compared with November, as a direct result of the winter weather and the penetration of new products into the market. Wissotzky Tea Company, the market leader, has increased its market share by 7.8%, compared with December 2003, thanks to its new Galilee fragrances brand. Launched a month ago, the brand was won an 11.6% share of the herbal tea market.
Nielson reports that Wissotzky now controls 80.4% of Israel's tea market. despite the entry of four new market players in the past years, in addition to Unilever's Lipton Tea. Ceremony Tea iced tea has also recently come on the market.
Israel tea market was divided as follows in December: Wissotzky - 80%; Lipton Tea - 11.6%, Arava - 4.5%, Pompador - 2.1%, and other brands - 1.4%. Turnover is estimated at NIS 300 million a year, and the market is growing by 4% a year.
In recent years, with competition, rising, Wissotzky has adopted a marketing concept focusing on brand recognition, in order to attract young customers. It has also greatly expanded its range of products, with an emphasis on functional and health tea products. Wissotzky has repositioned its brand on a foundation of balance and the good life, under the slogan, "Wissotzky - living right". The measure is backed by a NIS 3 million television ad campaign by Adler Chomsky Warshevski Advertising - Grey.
Wissotzky's business in Israel is estimated at NIS 230 million. To this should be added its activity in the US, estimated at $2.5 million.
Published by Globes [online], Israel business news - www.globes.co.il - on January 25, 2005