Teepack (www.teepack.com) is a specialized manufacturer of tea bag machines for the world’s bestknown brands of tea and herbs and fruit teas, such as Lipton, Pickwick, Twinings and Lyons/Tetley.
Teepack is a sister company of Teekanne, the leading tea, herb and fruit tea packing company in Germany, which owns the Teefix, Pompadour and Teekanne brands. The Teekanne Group has production and sales subsidiaries in several countries. There are about 1,200 employees in the group with a turnover of €269 million (2017). In Teepack there are 200 employees, who generate a turnover of €24 million (2017). Teepack is the only manufacturer of tea bag machines that also has an ownership relation to a major tea bag brand manufacturer (Teekanne).
The invention of the automatic tea bag-packaging machine by Teepack in 1949 revolutionized

the tea market with the double-chamber tea bag. It meant that production volumes could be increased dramatically. Today, the latest generation of these machines is capable of production speeds of almost 420 tea bags per minute, i.e. some 4.5 billion a year.
The tea bag produced by Teepack machines has the highest sales of any double-chamber tea bag in the world. Important benefits are that it has considerably larger space between the two bag chambers and offers maximum tea bag stability and durability without adding glue or heat-sealing.
The popularity of this practical tea bag has continued to grow. For example, in Germany, 80 per cent of tea sales are in double-chamber tea bags; in the UK, the figure is about 90 per cent and in Europe, if you omit the UK, the figure is close to 90 per cent.
Even in the former UK colony, Australia, the double-chamber tea bag has almost convinced consumers. ‘Down under’, sales of UK tea bags and the double-chamber tea bag are more or less equal. The tea bag machine market is expected to grow at a CAGR of 5 per cent until 2025.
In the tea bag packaging industry, the demand for varieties of black, herbal, green and fruit infusions is getting stronger and the competition is quite fierce as well. The packaging not only preserves and protects the product within the tea bag but also communicates the brand’s values and contributes to the sales process.
Sustainability and the tendency to

minimize the use of packaging materials is a major concern in the tea bag packaging industry.
New formats of tea bags are also coming up. The ‘pyramid tea bag’ format is the latest development when it comes to convenient tea making, especially in connection with speciality tea. For example, in Australia the pyramid tea bag is moving into the mainstream with the larger brands, including Lipton and Twinings. Fuso International, a leading Japanese tea bag machine manufacturer is a specialist in pyramid tea bag manufacturing, which is predominantly used in Asia-Pacific region.
Since 1950, Teepack GmbH has been the number one producer of double-chamber tea bag-packaging machines in the world and has sold more than 2,200 of its ‘Constanta’ machine. Thanks to Teepack’s packaging machines, Lipton is the leader of the international tea market. Already by 1957, Teepack had sold more than 100 tea bag-packaging machines to the US market.
Technical innovation resulted in Teepack engineers developing a new, even more efficient machine – the ‘Perfecta’. Since 1990, more than 300 Perfecta machines have been sold worldwide.
In 2017, Teepack had a market share of about 65 per cent of the global double-chamber tea bag machine market. Their product range includes more than 200 machines.

Questions
Please visit www.teepack.com before you answer the following questions:
1. How would you forecast worldwide demand for tea bag machines?
2. How can Teepack and Teekanne use their relationship to each other with regard to collecting relevant market research data for both companies?
3. Argue the case for the market analysis method you would choose if you had to evaluate the competitiveness of Teepack Spezialmaschinen on the global tea bag-packaging machine market.
4. In order to achieve better customer feedback, the top management of Teepack is interested in learning how to measure customer satisfaction.
Propose a questionnaire design that contains some of the themes it would be relevant to include in the questionnaire.

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