PG Tips and Yorkshire tea – who so scare in UK Supermarkets

In recent years, UK shoppers have noticed significant changes in the tea offerings at major supermarket chains Tesco and Asda, particularly regarding popular brands PG Tips and Yorkshire Tea, of which they’re hard to find. This shift has left many consumers wondering about the reasons behind these alterations in stock.

PG Tips: A Disappearing Act

PG Tips, once a staple in British households, has been facing challenges in maintaining its shelf presence at major retailers:

• Tesco removed PG Tips’ green, fruit, and herbal tea ranges earlier this year.
• Asda followed suit, delisting these varieties last month.
• Shoppers have reported difficulty finding PG Tips products in both Tesco and Asda stores.

The reasons for this change appear to be multifaceted:

1. New Blend Reception: PG Tips recently introduced a new blend and square teabags, which have received overwhelmingly negative reviews from consumers. This poor reception may have influenced retailers’ decisions to reduce stock.
2. Sales Performance: PG Tips has experienced a significant decline in sales, losing £15.1m with volumes crashing by 37.8%. This poor performance likely impacted its shelf space allocation.
3. Brand Strategy: Lipton Teas & Infusions, PG Tips’ owner, made strategic decisions to reset the business, including pulling back on discounting and reducing SKU count. This approach may have affected relationships with retailers.
4. Unilever Price War: In 2016 there was a brief dispute between Tesco and Unilever. Unilever attempted to raise prices by about 10% due to the falling value of the pound after the Brexit vote, something which retailers, in particular Tesco didn’t take too kindly too, having for a time removed all Unilever products from their stores.

Yorkshire Tea: A Different Story

While PG Tips has faced challenges, Yorkshire Tea has seen growth:

• Yorkshire Tea has sold an additional 1.4 million kilos and gained £27.9m in sales4.
• The brand’s ongoing marketing campaigns and innovations have attracted new shoppers4.

Despite this success, some shoppers have reported difficulty finding Yorkshire Tea in certain Tesco and Asda locations. This could be due to:

1. High Demand: The brand’s popularity might lead to temporary stock shortages.
2. Local Variations: Stock availability can vary by store location and regional preferences.

Supermarket Own-Brand Focus

Both Tesco and Asda appear to be prioritizing their own-brand tea offerings:

• Asda’s ‘Everyday’ teabags recently won a blind taste test conducted by Which?, outperforming many well-known brands9.
• Supermarket own-brands often offer competitive pricing, with Asda’s tea costing less than 2p per cup9.

This focus on own-brand products could be influencing shelf space allocation for national brands like PG Tips and Yorkshire Tea.

Conclusion

The changing landscape of tea availability in Tesco and Asda reflects broader shifts in consumer preferences, brand performance, and retailer strategies. While PG Tips faces challenges due to recent changes and declining sales, Yorkshire Tea’s absence in some stores may be more related to its popularity and potential supply issues. As supermarkets continue to promote their own-brand alternatives, shoppers may need to adapt to a changing selection of tea options in the future.