Smarter Category Strategy at Sainsbury’s: Boosting Margins and Cutting Costs in Tea

How Garry helped cut costs and boost margins in the tea aisle

Garry led the Hot Beverages category at Sainsbury’s, transforming the tea aisle by cutting costs, simplifying the product range, and driving profit growth through data-driven category management.

Shelf display of various flavored tea boxes with blue price tags in a grocery store.

Lead: Garry Winstanley

The Challenge.

With discounters gaining ground and customers demanding better value, the tea category faced rising costs, too many similar products, and shrinking margins. A full rethink was needed to stay competitive.

What Garry Did

He conducted a comprehensive value chain review—from sourcing to shelf—using data and proven retail tools to guide decisions. Key actions included range simplification, supplier collaboration, and targeted cost control measures.

Cost analysis:

Garry led a full cost breakdown to find where money was being lost across sourcing, packaging, logistics, and stores.
Supplier reset:

He worked with suppliers to renegotiate deals, co-create promotions, and plan better for mutual success.
SKU reduction:

The range was simplified to reduce duplication and support small store formats, making choices easier for shoppers.

Smarter forecasting:

Working with logistics and supply chain teams, Garry improved demand planning and reduced waste.
Data-led decisions:

He used real shopper data to shape pricing, promotions, and in-store layout.
Sustainability:

He aligned with Sainsbury’s ethical sourcing goals, helping the category become fully Fairtrade accredited.