Barrys Tea Global

Business Strategy
AN INVESTIGATION INTO GLOBAL BUSINESS STRATEGY
AND ONLINE PRESENCE FOR BARRYS TEA IN CANADA
AND AUSTRALIA

Agenda
Meet the Team
Barrys Today
Market Overview Canada
Market Overview Australia
Major Retailers
Competitors
Proposed Strategy
Online Presence
Recommendations
Summary

The Team

Craig Knott
Technical
Support at
Voxpro

Alec
OConnell
Application
Support
Analyst at
Musgrave

amonn
Caoimh
Technical
Contract
Manager at GE

John ONeill
Contracts
Manager at
Norland

Josh Deats
Territory
Manager at
Vmware

Barrys Tea Current overview

40 % of Irish market
Value of Irish Market 78 Million
Over 100 Years of R and D
Increased Competition
Plateau

Market Overview - Canada

The population of Canada is
35,540,000 people.
(86.2%) of people in Canada
lived in Ontario, Quebec, British
Columbia, and Alberta.
Canada has a growing
disposable income and growing
salary.

Market Overview - Canada

Market Overview Size of

Canadian Tea Market
Canadian tea market is worth
approx 302.8 million.
Specialty teas accounted for
90 million
Regular tea bags (73 %
tonnage)
Canadian tea consumption is
expected to Grow by 40% by
2020

Market Overview Australia

Total population of Australia 23
Million
Australia is showing a decline in
disposable income
Australia has a lower growth of
urbanization
17,000 KM from Ireland
East Coast of Australia maintains
most of the population
Dropping disposable income since
2008

Market Overview Size of

Australian Tea Market
Australian tea market is
valued at or 320 million

Tea Trends in Australia

Market is dominated by
black and green tea
Estimated growth of tea
market at 5%
Similar Trends to Canada
as per tea type

Black Tea

English Breakfast

Green Tea

Earl Grey

Chai Tea

Fruit Infusion

Camomile

Lemon

Market Overview - Major

Players
Canada

AUSTRALIA

Massive Market Reach

Largest retailers in Australia

Over 1000 stores in Canada

Innovative and flexible

Barrys has existing presence

in over 600 stores

Online

50/50 split between with

Amazon in sales

Market Overview
Canada/Australia/Online
Competitors
AUSTRALIA COMPETITORS

CANADIAN COMPETITORS

ONLINE COMPETITORS

Canada/Australia Comparison

Canada Proposed Market

40% projected growth by 2020
in consumption
Market projected growth 35%
higher than Australia
Canada ranked as 7th easiest
place for doing business globally
Ontario has highest population,
urban density and constitutes
over 40% of the population

Canada Proposed Market

High exposure and
advantages to border proximity
(USA) 200KM
Distance from Ireland
Toronto population is over
2.53 million, half the
population of Ireland in one
City!

Canada The Clear Choice

Proposed Strategy for Entry

1. Focus on Canada due to explosive growth forecast and economic stability.
2. Targeting major retailers through the use of professional sales developer with experience in market
entry
3. Direct shipment Port Hope
4. Hiring Canadian business development manager with distinct KPIs and reporting structure to gain
business insight and allow for customer response.
5. Establish base office in Toronto
6. Integrate all above points with an expanded online strategy that is traceable through a CRM system
7. Specific focus on Ontario due to high population, demographics and urbanization, particular entry
points such as Toronto,
8. Using Black Tea and emerging blends for introduction to market
9. Possible need for re-brand due to competitors using similar packaging (Red Rose)

Proposed Strategy - Ontario

Proposed Strategy - Ontario

Proposed Strategy - Branding

Quality
Diaspora is an element however
the risk of isolation from a broader
market is real
72 box in Canada is the standard
Blending to suit the Canadian taste
may need to be addressed

Proposed Strategy - Logistics

Direct distribution through

Loblaw's into Toronto
Delivery to Toronto Port
for ease of distribution
Massive advantage to
distribute to the US with
border proximity or
consolidate logistics effort
Response time to
customer needs

Resource Implications
Managerial buy in and willingness to change
Available personnel and new personnel that fit and align with the culture and
strategy
Time
Raw costs
Adaptability
Change in company culture
Appetite for risk
Control

The People Candidate for

Growth
Professional sales and
marketing person with
experience in FMCG and
market entry Tea familiar
Be held accountable with KPI
and performance structure.
If you think hiring a
professional is expensive, try
and hire an amateur

Advantages of Approach
1. Maintaining control of brand and having
access to direct market data
2. Access to consumers in a dense urban
market with high pending capacity
3. Broader reach that extends further than
the diaspora
4. Increased pressure on competition
5. Success that can be brought home
6. Lower Risk
7. Cost effective exit strategy
8. Less up front investment than subsidiary

Online Market Overview To hit 26 Billion for sales in

Canada
2018!
Most online nation on the
planet
Over 90% are online
51% of Canadian internet
users made online purchases
in 2010
Over 45 hours per month
online
Average online spend over
910 for those who shop.

Online Presence - Now

Online Presence - Now

Already improved since first visit! Proving
effectiveness and flexibility with
campaigning.
Need to add list of domains for SEO
Promote in Canada and create Canadian
LinkedIn page
Recognise threat www.barrystea.com
Compliment the shelves, keep engaging
and leverage momentum
Success factors
Correlation between fans and Adwords
campaign

Summary
A focused coherent and consolidated approach with buy-in
from the top and a willingness to change and adapt
Realise the necessary investment in resources from a time,
revenue, risk, people and process perspective needs to be
realised.
Canada is a prime, open and workable
Our research suggests entrance through Major Retailers as
an exporter and the use of ground leverage would assist in
launching a successful campaign

Thank You - Questions