Voluntary Report - public distribution

**Date:** 10/17/2006

**GAIN Report Number:** FR6060

FR6060

**France**

**Product Brief**

**Tea**

**2006**

**Approved by:**

![](media/image1.wmf)Elizabeth B. Berry

U.S. Embassy

**Prepared by:**

Nina Peacock

**Report Highlights:**

Tea is making inroads in the traditional coffee market in France. Black
tea remains the strongest market sector, however, other varieties of
tea, including green, flavored green and herbal teas, displayed notable
growth.

Large supermarket chains continue to dominate distribution of tea in
France. Traditional tea brands are facing developing competition from
ambitious private label and store brands.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Paris \[FR1\]

\[FR\]

Table of Contents

[**Executive Summary 3**](#executive-summary)

[Consumer Trends 3](#consumer-trends)

[Competition 4](#competition)

[Distribution Channels 5](#distribution-channels)

[Exporter Advice 5](#exporter-advice)

[Tariff 5](#tariff)

[HS Code 5](#hs-code)

[09021000 5](#__RefHeading___Toc147204880)

[09022000 5](#__RefHeading___Toc147204881)

[09023000 5](#__RefHeading___Toc147204882)

[09024000 5](#__RefHeading___Toc147204883)

[Importer List 6](#importer-list)

# Executive Summary

Tea is beginning to make inroads in the traditional coffee market in
France. In calendar year (CY) 2005, French consumers purchased 3,132
tons of tea, an increase of 0.8% by volume and 2.5% in value from CY
2004. Black tea remains the strongest market sector, however, other
varieties of tea, including green, flavored green and herbal teas,
displayed notable growth. Supermarkets and hypermarkets remain the main
distribution channels with 87% of volume sales in CY 2004. Traditional
tea brands face developing competition from ambitious private and store
brands. Producers distinguish themselves in this market through unique
flavorings and innovative packaging.

![](media/image2.wmf)

\*Covering the 12-month period from February 5, 2005 to February 5, 2006
against the previous year

Source: ACNielsen, Lineaires, May 2006

# 

# 

# Consumer Trends

New hot-beverage machines, such as the highly successful and popular
Senseo hot-beverage maker, have benefited tea sales as French consumers
warm to the message that tea is a healthy and gourmet drink. Green tea
is valued for its antioxidant and other health benefits and showed the
highest growth in sales. Flavored green tea sales in supermarkets and
hypermarkets grew 18.7% in volume between February 2005/2006 and 14% in
value from the year before and made up about 4% of tea sales in 2005.
Flavored green tea's rise in sales also reflects the demand for a fusion
of international flavors and fruity green tea mixes. The best-selling
flavors are berry blends and mint green tea.

Consumers also tend to favor functional herbal teas, or "infusions,"
that claim to improve relaxation, digestion, circulation, menopause
symptoms, and weight-loss. Herbal tea sales increased 6% in volume and
7% in value in CY 2005 from CY 2004. The herbal tea market totaled
\$147.4 million and 2.7 metric tons by the third quarter in 2005.
Factoring out the -13.7% decline in (mainly Ricola's) soluble herbal tea
sales, herbal tea sales have increased 2% in value during this period.
Herbal tea consumption is significantly higher in the eastern and
northeastern regions of France, where consumers prefer fruitier herbal
teas and chamomile to the traditional linden and verbena varieties.

Mariage Frères, a French teahouse, reports that tea consumed in
teahouses tends to attract intellectuals, journalists, businessmen, and
upper class women, while its tea retail counters draw a wider
cross-section of society.

# Competition

France imported about \$190,000 or 11 metric tons of U.S. tea in CY
2005, making the U.S.'s share of French tea imports 0.06% by quantity
and 0.17% by value. France's main tea imports come from China, the
United Kingdom, Belgium, Germany, Sri Lanka, and India.

![](media/image3.wmf){width="3.75in" height="2.158267716535433in"}

[Black Tea]{.underline}: The black tea market sector (80% volume and
value as of February 2006) in France is increasingly competitive.
Twinings' sales increased 3.9% in volume from CY 2004 to CY 2005, while
other traditional black tea brands, like Lipton Yellow and Tetley had
6.9% and 5.3% decreases respectively over the same period. Private
labels, or store brands sales increased 4.9% from CY 2004 to CY 2005.

[Herbal Tea]{.underline}: In the herbal tea market, Lipton held a
dominant share (63%) as of June 2006, thanks to its 2005 launch of
"Pyramides," a new line of pyramid-shaped tea bags with flavors of the
world. Lipton and other herbal tea brands can expect greater competition
from private labels as these brands are becoming more adventurous in
developing specialized products, like functional and medicinal herbal
teas.

[Niche Market Opportunities]{.underline}

[Flavors]{.underline}: Flavored green tea creations and product
developments were key to tea's success in CY 2004 and CY 2005.
Creativity in flavors was also important to the herbal tea market as
evidenced by Lipton's Pyramides brand. La Tisanière, which had 18-19% of
the market share by value and quantity in June 2005/2006, dropped its
organics line in early 2006 and substituted flowery fusions, such as
linden/rose/jasmine/violet and gourmet flavors, such as orange
gingerbread and caramelized pear.

[Packaging]{.underline}: In CY 2005, teas packaged in coffeemaker-ready
wafers received strong consumer support and their sales have been
steadily increasing. Tetley reports that tea packaged in wafers
comprised about 1.6% of the market and 34% of sales as of June 2006. In
response to this consumer demand, Tetley, Twinings, and fair trade's
Malango have also launched black, green, and herbal teas in coffee-maker
ready wafers.

# Distribution Channels

Supermarkets and hypermarkets are the main distribution channels,
accounting for 87% of volume sales in 2004. The exclusive availability
of coffee-maker ready wafers in supermarkets and hypermarkets could
partially explain their dominant position. Hard discounters represented
12% of volume sales and food service outlets made up a smaller share in
2004.

# Exporter Advice

[Labeling]{.underline}: It is generally understood that products labeled
as "thé" contain black or green tea leaves, while herbal teas are
labeled as "infusions" or "tisanes."

# Tariff

+-----------+-------------------------------------+--------------------+
| # HS Code | **Description for Teas, flavored or | **Contractual      |
|           | unflavored**                        | Provisions**       |
+-----------+-------------------------------------+--------------------+
| []{#      | Green tea (unfermented) in an       | 3.2%               |
| __RefHead | immediate container, inner or       |                    |
| ing___Toc | interior package, first wrapper, or |                    |
| 147204880 | primary container that does not     |                    |
| .anchor   | exceed 3 kg                         |                    |
| }09021000 |                                     |                    |
+-----------+-------------------------------------+--------------------+
| []{#      | Green tea (unfermented) presented   | Exempt             |
| __RefHead | otherwise                           |                    |
| ing___Toc |                                     |                    |
| 147204881 |                                     |                    |
| .anchor   |                                     |                    |
| }09022000 |                                     |                    |
+-----------+-------------------------------------+--------------------+
| []{#      | Black tea (fermented and partially  | Exempt             |
| __RefHead | fermented) in an immediate          |                    |
| ing___Toc | container, inner or interior        |                    |
| 147204882 | package, first wrapper, or primary  |                    |
| .anchor   | container that does not exceed 3 kg |                    |
| }09023000 |                                     |                    |
+-----------+-------------------------------------+--------------------+
| []{#      | Black tea (fermented or partially   | Exempt             |
| __RefHead | fermented) presented otherwise      |                    |
| ing___Toc |                                     |                    |
| 147204883 |                                     |                    |
| .anchor   |                                     |                    |
| }09024000 |                                     |                    |
+-----------+-------------------------------------+--------------------+

For the tariff on herbal teas, please send a Binding Tariff Information
request (see
<http://ec.europa.eu/taxation_customs/common/databases/ebti/index_en.htm>)
to:

Direction Générale des Douanes Bureau E4

8 rue de la Tour des Dames

75436 Paris Cedex 09

Tel: (33) 820.02.44.44

For the latest tariff information please see the French custom's
"Prodouane" portal at:
[http://www.douane.gouv.fr](http://www.douane.gouv.fr/)

For EU-approved pesticides, see:
<http://www.fas.usda.gov/gainfiles/200502/146118686.pdf>

For regulations on organics, see:
<http://www.amb-usa.fr/fas/hotTopics/index.htm>

For additional herbal tea distribution and regulatory information,
please see FAS GAIN report on Food Supplements at:
<http://www.fas.usda.gov/gainfiles/200510/146131357.doc>

For regulations regarding authorized tea ingredients, please contact the
Directorate General for Competition, Consumption, and Anti-fraud
(DGCCRF):

59 boulevard Vincent Auriol

75013 Paris

Tel: (33) 1.44.97.31.17

# Importer List

+---------------------+------------------------------------------------+
| Folliet (Cafés)     | Tea individually packaged for single-use sale  |
|                     |                                                |
| Chambery            |                                                |
|                     |                                                |
| \(33\)              |                                                |
| 4.79.62.24.37       |                                                |
+---------------------+------------------------------------------------+
| LHG                 | Camomille, hibiscus-based herbal teas, mate    |
|                     |                                                |
| Marseille           |                                                |
|                     |                                                |
| \(33\)              |                                                |
| 4.91.36.40.20       |                                                |
+---------------------+------------------------------------------------+
| Mariage Frères      | Tea leaves, diced tea leaves, machine-dried    |
| International       | tea, tea in powder form, Indian tea, Ceylon,   |
|                     | Indonesian tea, Vietnamese tea, Chinese tea,   |
| Paris               | Japanese tea, East African tea, black tea,     |
|                     | green tea, dissolvable instant tea, tea        |
| \(33\)              | extracts, tea individually packaged for        |
| 1.43.46.60.00       | single-use sale                                |
+---------------------+------------------------------------------------+
| Dammann Frères R&P  | Tea individually packaged for single-use sale  |
|                     |                                                |
| Orgeval             |                                                |
|                     |                                                |
| \(33\)              |                                                |
| 1.39.75.64.25       |                                                |
+---------------------+------------------------------------------------+