From Tetley to Yorkshire Tea, tea prices are getting steeper

Whether you prefer a mug of PG Tips, Tetley, or Yorkshire Tea, an afternoon cup of tea has become a staple for today’s remote workers during rest breaks. But in bad news for at-home workers, the humble brew is about to become much pricier.

Extreme weather conditions for tea growers in India and Kenya is pushing up costs in the UK. Last week, government figures put the food inflation rate at 1.5%. Yet, analysis shows that a box of own-brand or branded teabags has risen at nearly 5x this amount.

Food price rises have sent the cost of an average supermarket basket through the roof, and tea bags are no different. Below, we look at just how much a cuppa could set employees back, and how employers can help them to manage costs without a pay rise.

Cost of a box of tea surges

One of the biggest food and drink trends for 2024 is more about saving than sustenance. Consumers are increasingly prioritising value for money over modish ingredients, as the cost of living crisis drives up supermarket receipts.

While food inflation has been slowing, tea is one item where the price tag keeps changing. Extreme rainfall in Kenya, and a catastrophic heatwave in India, have caused major disruption to global tea supply chains; brewing trouble for sellers based in the UK.

Earlier this year, market leaders Yorkshire Tea and Tetley told the BBC they were struggling with tighter tea supplies caused by shipping disruptions.

The Guardian’s analysis of price changes shows that, on average, a box of 80 teabags costs £2.65, up from around £2.48. That’s a rise of 7%.

Separately, research from The Grocer found that the price of branded and own-label “everyday” tea bags in supermarkets has gone up by as much as 30%.

Even Lidl, the brand famous for its affordability, has reportedly increased its own-brand Knightsbridge Red Label tea box by 14p. Meanwhile, Tesco has hiked its tea bags by 10p.

Coffee and biscuits also rising

Another price hike that will impact many workers’ morning routines is coffee. Producers have faced similarly intense pressure on supply chains due to poor harvest conditions in Brazil, Vietnam and Colombia. As a result, experts say prices have reached a 15-year high.

Many savvy workers brew their own coffee at-home, rather than paying an average of £5.50 per cup to drink in-store. But the change means that even with this cost-saving step, employees will still end up paying 15% more this year for a 1kg bag of beans than in 2023.

And UK producers haven’t escaped the weather chaos either. A soggy winter at the end of last year has meant that crop yields are down.

As a result, the cost of bread and the cost of a packet of biscuits have both increased, making the morning toast and afternoon snacks more expensive for workers.

Make an office a home

The increasing cost of the average employee’s kitchen cupboard is an opportunity for employers seeking to incentivise a return to office this year. With office attendance dwindling, a fully-stocked office pantry can go a long way to boosting payslips and morale.

Some businesses go far enough to offer a full breakfast spread, with cereal boxes and bowls of fruit laid out for in-office workers to pick from.

But even a simple investment, such as a shared kettle and tea bags, can ensure workers feel that a visit to the workplace has been worth the money spent on a commute. And a biscuit tin is the icing on the cake for staff suffering from an afternoon crash.

Office snacks are everyone’s cup of tea, after all. And as they are able to write off these expenditures as a business expense, companies will feel the pinch less than their workforce.

Learn about 50 employee benefits and perks which you can offer your staff that are cheaper than a pay rise this year.