Unilever brews deal with organic tea maker Pukka Herbs

08 Sep 2017 --- Unilever has snapped up organic herb tea business, Pukka Herbs Ltd, in a deal which comes amid a rising demand for upmarket organic brews. Already owning tea brands PG Tips and Lipton, Unilever’s latest acquisition will bolster its presence in the sector and addresses a gap in its portfolio, according to Refreshment Category President, Kevin Havelock.

“Pukka has strong values and a clear purpose that aligns fully with our own sustainable growth model. There’s a clear strategic, philosophical and cultural fit for us,” he says. 

Pukka Herbs Ltd was founded in 2001 by Tim Westwell and Sebastian Pole. With 100 percent certified, organic and ethically sourced ingredients, Pukka’s health and wellness philosophy center around benefiting people, plants and planet. 

“Both of us believe in business being a force for good in society. Tim and Sebastian have cultivated Pukka into a successful business without compromising their ingredients or their ideals.”

“The acquisition strengthens our tea business, addressing a gap in our portfolio. Pukka is a premium player in the natural, organic, health and wellness segment which is fast-growing, attractive and scalable. We look forward to bringing Pukka to even more consumers,” he adds.

Terms of the deal were not disclosed.

This represents a clear synergy with Unilever’s own sustainable living plan, according to the Dutch-British consumer goods giant. 

As a pioneering British brand, Pukka has a turnover of over £30m (US$39.2 million) and growth of around 30 percent. It is also growing rapidly across Europe and the US. 

The herbal, fruit and green tea market is currently worth €1.6 billion (US$1.9 billion) which trends suggest will become even more prominent around the world in the future.

“From day one, our mission was to connect more people with the incredible power of plants and herbs. Sixteen years later, with 1.5 billion Pukka teas enjoyed, we’ve made huge progress – and it’s just the beginning,” says Tim Westwell, Pukka co-founder and CEO.

Sebastian Pole, Pukka co-founder and Master Herbsmith adds how choosing Unilever came down to two fundamentals: scale and sustainability. 

“It is a leader in social and environmental change and it wholeheartedly embraces Pukka’s beliefs. So, there’s a meeting of values. Pukka will remain 100 percent organic and a champion for fair trading through pioneering schemes like Fair for Life, and continue to donate 1 percent of its sales to global environmental charities. With Unilever, we have new levels of reach and opportunity.”