Abstract
Western Europe, Lipton's biggest market, shows a poor growth outlook in the tea market. The brand and other tea brands of Unilever are also present in other markets where the sales outlook is better, but are almost absent in Latin America with a unique presence in Chile. Nevertheless, this market is expected to grow tremendously for the coming years, especially in Brazil. Unilever has already tried to enter this country about ten years ago with its Lipton brand and totally divested in 2003 because it did not adapt its strategy enough to the particular consumption habits and the Brazilian culture.
Today, the tea and other hot drinks markets are extremely fragmented in Brazil. Furthermore, the market is becoming more mature regarding tea consumption, the Brazilian population is considerable and the sales outlook of tea is set to be greater than ever in the coming years. Therefore, it seems there is a real potential to enter and grab the opportunities in the Brazilian tea market.
However, there are also a number of constraints that Unilever would need to define and decide, as a company, in order to conquer the market. Overcoming these obstacles is a must to succeed in Brazil.
