Tata Tea buys 33 pc equity in SA firm 'Joekels'

Mumbai, Oct 5: Tata Tea's subsidiary, The Tetley Group has signed a definitive agreement to acquire a 33 per cent stake in South African tea company, Joekels Tea Packers.

Announcing this in a notice to BSE, the company said the Tetley Group has funded the acquisition. Joekels is the third largest player in the South African tea market with a 5 per cent value share of the market, and turnover of US million. The company is owned and run by Jonathan Kelsey and Joe Swart, who founded it in 1994.

Joekels will have a licence to sell tetley branded products in South Africa, Namibia, Botswana, Lesotho and Swaziland. They will produce these at their factory in Pinetown, Kwazulu Natal province.

The South African company manufactures and sells a strong portfolio of brands spanning the economy and mainstream tea sectors.

Its main brands are two mainstream ranges, Phendula Tips and Rooibos Laager, the economy Tea Time range, Tea4kidz, which comprises special blends for children, and a recent launch, San Aqua, which is a Rooibos ice tea.

In a statement, Mr Ken Pringle, Executive Vice Chairman and Chief Executive Officer of the Tetley Group, and Director of Tata Tea said,''This acquisition establishes a presence for Tetley in South Africa and some of its neighbouring countries. Joekels is a successful well run company and we anticipate that with their entrepreneurial spirit and this new investment from Tetley, Mr Jonathan and Mr Joe will be able to accelerate Joekels growth.''

UNI