Strategy of the Mighty Leaf Tea Company

1293 WordsFeb 20, 20116 Pages
Mighty Leaf Tea Company The Mighty Leaf Tea company was founded in 2000 by Jill Portman and Gary Shinner. The couple was inspired to enter the tea industry while shopping for engagement rings in 1990. The company is known for pioneering the whole leaf tea pouch, filled with whole tea leaves, herbs, and fruits. “The company 's goal is to bridge the gap between quality and experience of the whole leaf product with the convenience of a bag,” states co-founder Jill Portman (Wollman). Mighty Leaf Tea initially bloomed in the high-class market, becoming popular in high-end hotels, restaurants, and specialty food shops. In 2007, the company was faced with the decision of going mass market by selling its premium whole-leaf teas in supermarkets.…show more content…
Both groups were willing to spend more money for a premium and hip new tea. After establishing itself as a high quality tea brand, Mighty Leaf wished to expand its business to mainstream customers by making their product available in supermarkets. The decision was made to go mainstream in 2007, when the company hired Rich Clark as their first national sales director. In February of 2008, Mighty Leaf won its first supermarket account. By October of the same year, it had its product available in many Safeway, Kroger, Publix, and Stop & Shop stores. Company sales had gone up 25 percent, and by 2008, they were expected to hit $20 million. Co-founder Gary Shinner expects supermarket sales to account for at least 40 percent of company revenue within a few years (Park 4). Going mainstream was a major move by the Mighty Leaf Tea company. Entering supermarkets was a shift away from the exclusive and affluent market they originally attracted. However, it was in the company’s best interest to increase revenue and gain more market share. They were successfully able to do this by making their unique product available to more customers. Mighty Leaf Tea is a company that is moving forward and looking to expand their market share. Currently, their products are available in many grocery stores nation-wide. However, they need to establish a strategy to pursue in the future. One strategy would be to rebrand their product. The case notes that customers may not be

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