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Tag: T2

  • End of an Era: T2 Tea Shutters Last Singapore Stores, Signaling Market Withdrawal

    End of an Era: T2 Tea Shutters Last Singapore Stores, Signaling Market Withdrawal

    T2 Tea has announced that it will be shutting down its remaining three stores in Singapore, bringing an end to a nine-year presence in the market. The closures, which will occur between March 20 and 25, involve outlets located in VivoCity, 313@Somerset, and Suntec City. The company has been offering substantial discounts of up to 70% off as part of its closing sales, details of which have been widely shared across various social media platforms.

    Established in 1996, T2 Tea, originally based out of Melbourne, was purchased by Unilever in 2013 for a reported sum of approximately $60 million. In 2022, the company underwent another shift in ownership when Unilever sold its tea division to the private equity firm, CVC Capital Partners. The division was subsequently renamed as Lipton Teas and Infusions.

    T2 faced significant changes in 2023, shortly after the deal with CVC Capital Partners. The company decided to close its operations in the UK and the US to concentrate its efforts on markets in Australia, New Zealand, and Singapore. The move was a response to the “unprecedented changes” that had been experienced in the previous years.

    T2 Tea had a substantial footprint in Asia, with retail partnerships in the Philippines and a flagship e-commerce platform in Mainland China. Leaf Beverages, its official retailer in the Philippines, operates from kiosks and shopping centers. Meanwhile, the company primarily used the Tmall Global Flagship platform to distribute its products in China.

    Multiple local news reports have covered the story of the brand’s departure from the region. A spokesperson for the business informed a popular news outlet that the stores will be closing “indefinitely”. However, the spokesperson also noted that the brand would be open to assessing potential opportunities to make a comeback in the Singaporean market in the future. T2 Tea has been contacted for additional comments regarding the closure.

    Questions & Answers

    Why is T2 Tea closing its outlets in Singapore?
    The decision to close the outlets comes as part of a strategic shift for the company, although specific reasons behind their exit from the Singaporean market have not been disclosed.

    What were the major changes that T2 Tea experienced?
    In 2023, T2 Tea decided to close its operations in the UK and the US to concentrate on markets in Australia, New Zealand, and Singapore. This move was in response to “unprecedented changes” the company had been facing.

    Could T2 Tea re-enter the Singaporean market in the future?
    While the stores are closing “indefinitely”, a spokesperson for the business has noted that the company would be open to evaluating potential opportunities to return to Singapore in the future.

  • Unilever sells 34 tea brands

    Unilever sells 34 tea brands

    Unilever has sold its global tea business – including T2 – to private equity company CVC Capital Partners, for €4.5 billion ($A7 billion)

    The business, called Ekaterra, owns 34 brands including Lipton, PG tips, Pukka, T2 and Tazo and turned over €2 billion ($A3.1 billion) last year. The company has 11 production factories on four continents and tea estates in three countries.

    “The evolution of our portfolio into higher-growth spaces is an important part of our growth strategy for Unilever,” said CEO Alan Jope of the reason for the divestment. “Our decision to sell Ekaterra demonstrates further progress in delivering against our plans.

    “We are proud of the place that our tea business has in our company’s history. We look forward to seeing Ekaterra, with its strong brands and global footprint, prosper under CVC’s ownership.”

    The sale is scheduled to be settled during the second half of next year and is subject to receipt of regulatory approvals. The deal excludes Unilever’s tea business in India, Nepal, and Indonesia, as well as its joint venture with Pepsi Lipton covering ready-to-drink teas, and any associated distribution business.

    Pev Hooper, a managing partner at CVC Capital Partners described Ekaterra as “a great business, built on strong foundations of leading brands and a purpose-driven approach to its products, people and communities”.

    “Ekaterra is well-positioned in an attractive market to accelerate its future growth, and to lead the category’s sustainable development. We look forward to working with the team to realise Ekaterra’s full potential,” said Hooper.

    Inside FMCG understands rival private-equity firms Advent and Carlyle unsuccessfully bid for the business.

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  • T2 opens Alibaba Tmall store

    T2 opens Alibaba Tmall store

    Australian tea retailer T2 Tea has opened an online storefront on Alibaba’s Tmall Global marketplace to cash in on Chinese demand for Australian products.

    Tmall Global enables international brands to sell to Chinese consumers online, simplifying the export and retail process.

    A curated range of products will be available to Chinese shoppers at t2tea.tmall.hk including homegrown tea blends such as T2 Tea’s Bondi tea, which includes lemon myrtle and native berries.

    “It’s T2’s curiosity for taking the ancient tradition of tea culture in China and giving it a modern twist that we think is both intriguing and exciting for the Chinese consumer,” said Nicole Sparshott, T2 Global CEO.

    First launched in Melbourne 20 years ago, T2 now has 100 stores across five markets. It entered the Asia market in January 2017 and now has four stores in Singapore.

    “For a company that came from humble beginnings in Melbourne, launching on Tmall Global marks a key milestone in our mission to build a generation of tea lovers on every continent,” Sparshott said.

    According to Alibaba, more than 14,500 international brands from 63 countries and regions sell on Tmall Global. For more than 80 per cent of those brands, their Tmall Global virtual store was their first foray into the China market.

    The number of imported product categories on Tmall Global climbed nearly 50 per cent to 3,700 this year.

    “The opening of T2 Tea’s Tmall Global store reflects the growing diversity in demand for premium Australian products,” said Maggie Zhou. “We’re excited to be working with such an iconic Australian brand to help them expand on the success they’ve already seen in Australia.”

    So far there are 1,300 Australian and 400 New Zealand brands on Tmall and Tmall Global. The Chinese demand for Australian products was demonstrated during the company’s 11.11 sale last month.

    Australia recorded its best performance to date ranking as the third highest selling country (outside of China) behind the United States and Japan. Last year, Australia ranked fourth, and fifth in 2015.

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  • T2 Singapore launches with kaya toast brew

    T2 Singapore launches with kaya toast brew

    For its first outlet in Asia, Australian tea chain T2 Singapore has launched with a new brew that pays homage to local breakfast staple kaya toast.

    Its Singapore Breakfast tea is a blend of pu’er (Chinese fermented tea), green tea, coconut flakes and roasted rice. It is among more than 150 types of teas at the new store, in the 313@Somerset mall.

    T2 CEO Nicky Sparshott says Singapore was picked for the company’s Asian debut because of its “strong tea-drinking culture with multicultural influences, from black tea dating back to the colonial period to Asian tea beverages such as teh tarik – Malay for pulled tea – and green tea”.

    Covering 550 sqft (51 sqm), the store offers myriad teas, from black, green and white to rooibos, and herbal and fruit-based tisanes.

    Bestsellers for the company include French Earl Grey, which has bergamot-infused black tea perfumed with rose and sunflower petals and hibiscus; Green Rose, green tea paired with mango, papaya and rose petals; and Fruitalicious tisane, a blend of cranberries, blueberries, dragon fruit and goji berries.

    t2-tea-c

    Singapore has been among T2’s top five markets in online sales over the past two years, and Sparshott hopes the country’s reputation as a tourism hub can expose the tea company to visitors in Asia.

    “Infinite possibilities”

    “Tea has moved from being a beverage for old people to having infinite possibilities … there is an appetite for new invention in teas,” she says.

    Like its more than 75 outlets in Australia, New Zealand, the UK and the US, the T2 shop in Singapore has black floor-to-ceiling shelves lined with brightly coloured tea boxes, tea pots, cups and accessories. Taking centre stage is an island brew bar with tea-making apparatus, where six types of hot and iced tea beverages are brewed daily for customers to sample.

    Sparshott says customers can also attend regular tea masterclasses and tea-blending sessions through the tea community group T2 Society, which is free to join.

    She says T2 intends to open another three or four outlets in Singapore in the coming year.

    Started in Melbourne in 1996, T2 was acquired by Unilever in 2013, which owns such tea brands as Lipton.

    Other tea boutiques in Singapore include the TWG Tea chain and The 1872 Clipper Tea Company, which opened a tea retail shop-cum-bar in Ion Orchard last April.

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