No break for Britons as tea price set to soar

Published on Monday 18 May 2009 20:09

A WEAK pound, bad harvests and increased demand from India and China have all been blamed for a rise in the price of tea that will hit consumers next month.

Unilever, owner of PG Tips have announced price rises of up to 15 per cent on its loose tea and tea bags.

Other big-name brands are expected to follow suit, with some analysts predicting rises of around 3 to 3.40 for a box of 160 tea bags.

However the UK Tea Council, which represents both traders and producers, claims tea is currently underpriced and that a rise in prices is long overdue.

Bill Goinan, executive chairman of the council, said the increase was reasonable and would ultimately benefit producers in some of the poorest regions of the world.

He added: "For the last ten years tea prices have not risen one iota.

"In 1999 80 tea bags sold for 1.89 and in February of this year we had our first substantial price increase in ten years taking the price to 1.97."

He said he did not believe increased prices would deter consumers from enjoying tea. "If you look at the price of tea it is extremely good value for money. It is tuppence a bag for a wonderful, natural, healthy drink."

Two years ago the international price of tea dropped to a 30-year low as demand was weak in the face of increased competition from coffee and other drinks.

Manufacturer Unilever said rising costs were responsible for the increase in prices to the consumer. The company has announced rises in the prices of a range of its products which include a 21 per cent rise for Ragu pasta sauces, a 27 per cent rise in Colman's sauces and a 31 per cent price hike for Cif cleaner.