RTD tea Archives - Tea & Coffee Trade Journal https://www.teaandcoffee.net/topic/rtd-tea/ Tue, 28 Nov 2023 15:55:05 +0000 en-GB hourly 1 Ferrarelle installs aseptic line for its RTD functional teas https://www.teaandcoffee.net/news/33295/ferrarelle-installs-aseptic-line-for-its-rtd-functional-teas/ https://www.teaandcoffee.net/news/33295/ferrarelle-installs-aseptic-line-for-its-rtd-functional-teas/#respond Mon, 27 Nov 2023 14:29:08 +0000 https://www.teaandcoffee.net/?post_type=news&p=33295 Ferrarelle Società Benefit has partnered with Sidel to install its first ever aseptic line to produce its product range of Vitasnella ‘Le Linfe’ RTD functional teas.

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Ferrarelle Società Benefit has partnered with Sidel to install its first ever aseptic line at the Boario plant to produce its product range of Vitasnella ‘Le Linfe’ ready-to-drink (RTD) functional teas. With natural ingredients and a mix of flavours, the products have been designed with consumers well-being in mind.

Ferrarelle Società Benefit, one of the largest mineral water producers in Italy well-known for its unique naturally sparkling water properties, bottles “Boario”, “Vitasnella” and “Fonte Essenziale” mineral waters at its Boario plant. Vitasnella ‘Le Linfe’ combines the lightness of Acqua Vitasnella with the benefits of the natural ingredients, sugar-free and calorie-free.

Sidel supported Ferrarelle Società Benefit in installing its aseptic technology for its functional teas to ensure a high-end taste experience, product integrity and a long shelf-life, utilising its Predis™ dry preform decontamination solution – a safe, hygienic, cost-effective way of packaging a variety of sensitive beverages.

By installing Sidel’s Aseptic Combi Predis to produce Vitasnella ‘Le Linfe’ product range, the line is capable of handling two different formats, 0.5 litres and 1.25 litres, and achieves 18,000 bottles per hour.

“‘Le Linfe’ functional waters and tea ranges are extremely important for us and we wanted to avoid any potential risks,” said Nicola Tignonsini, operations director at Ferrarelle.

“As our only line producing sensitive beverages, it was crucial that we had an aseptic system that could ensure the highest level of product safety and integrity,” said Marcelo Astrini, plant director at Boario.

Find out more about Sidel’s Aseptic Combi Predis and how you can access this kind of support for your business on the Sidel website.

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Despite softer sales and growing competition, RTD tea remains dominant in the US https://www.teaandcoffee.net/blog/33189/despite-softer-sales-and-growing-competition-rtd-tea-remains-dominant-in-the-us/ https://www.teaandcoffee.net/blog/33189/despite-softer-sales-and-growing-competition-rtd-tea-remains-dominant-in-the-us/#respond Thu, 09 Nov 2023 17:11:07 +0000 https://www.teaandcoffee.net/?post_type=blog&p=33189 The refreshment beverage category is fiercely competitive, and although sales have been tepid, the ready-to-drink tea category remains well-positioned from a health and wellness perspective.

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The North American Tea Conference (NATC) took place last month (6-8 October) and ready-to-drink (RTD) was a primary topic of conversation — aside of course, from the continuing global challenge of the over-production and under-consumption of tea and skyrocketing CPG (consumer packaged goods) prices. It’s no surprise that RTD was a key topic of conversation as the tea category in the United States is still dominated by two formats: tea bags and RTD tea.

Jordan Moore, director, emerging beverages at market research firm, NIQ Consumer & Category Outlook, noted that, although inflation may be decelerating, prices are still trending higher. In fact, CPG inflation has been well above the general inflation average in the US. “Consumers are feeling the pinch, with buying power significantly eroded,” she said, adding that consumers are spending 33% more at the grocery in the past 3+ years.

Any growth is largely inflationary as dollar growth is slowing, and shipments are down, but costs are higher. Tea volumes have been affected by the double-digit price increases. “RTD tea is still outperforming packaged tea, both black and green, with green experiencing the largest drop,” said Moore.

Gary Hemphill, managing director of research at the Beverage Marketing Group, echoed Moore’s comments, explaining that after the pandemic, consumer confidence dropped sharply. “US beverage market growth has been soft in 2022 and 2023 after a pandemic-induced performance rebound in 2021. Revenues have generally outpaced volume growth — a trend that has accelerated since 2021 due mostly to high inflation.”

Refreshment beverages have outperformed the overall beverage market, but volume performance has been soft the last two years, with most refreshment beverage categories experiencing slower growth in 2023. Hemphill said that the total tea category has been soft in recent years as the overall category has experienced modest declines. RTD tea returned to volume losses in 2022 and 2023, after pandemic recovery-based growth in 2021, but he shared, “the category remains well-positioned from a health and wellness perspective.”

It’s not ‘new’ news to say that health and wellness are key market drivers. Hence, beverage categories with health wellness attributes are outperforming those without. “People want healthier refreshment; caloric intake from refreshment beverages has been steadily declining over the last decade,” Hemphill commented, noting that “the diet segment of RTD tea is one of the best developed in all liquid refreshment beverage categories because it also includes unsweetened product.”

As consumers migrate to healthier options, they want more variety, and RTD tea offers that. The bulk of the RTD tea category is comprised of mainstream brands – PepsiCo/Lipton, Arizona and Coca-Cola are the leaders in the RTD tea category with the three combined accounting for more than half of the RTD category – however, both premium and specialty tea have made slight share gains in recent years, as more innovation is coming at the high end of the market.

“Innovations have played a key role in RTD tea, although much of the recent innovation has been in tea-adjacent categories,” Hemphill explained. “Much of the growth of RTD tea has been hived off into separate categories such as kombucha and mate/guayusa, but there are also other attempts at innovation such as cold brew and even herbal tea-based wellness soda.”

He noted that increasingly, there is an overlapping of alcohol and no-alcohol categories. “RTD tea is no exception, providing the foundation for alternative adult beverages such as hard teas and cannabis-infused tea drinks.”

Hemphill stressed that competition in refreshment beverages is fierce with innovation coming from within categories along with new categories emerging.

Beverage-wise, consumers have more than ever to choose from, so for RTD tea to successfully compete, brands must remain innovative and continue to meet consumers’ changing demands and needs.

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Innovation, flavours & healthy options fuel RTD tea sales https://www.teaandcoffee.net/feature/33090/innovation-flavours-healthy-options-fuel-rtd-tea-sales/ https://www.teaandcoffee.net/feature/33090/innovation-flavours-healthy-options-fuel-rtd-tea-sales/#respond Thu, 26 Oct 2023 10:27:56 +0000 https://www.teaandcoffee.net/?post_type=feature&p=33090 Convenience may be a catalyst for RTD tea sales, but the category in North America is also benefitting from continued innovation, expanding flavours and, of course, meeting consumer wellness demands for healthier options. By Shambhu Nath Jha

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Convenience may be a catalyst for RTD tea sales, but the category in North America is also benefitting from continued innovation, expanding flavours and, of course, meeting consumer wellness demands for healthier options. By Shambhu Nath Jha

In 2023, the global market for ready-to-drink tea is assessed to hold a valuation of USD $34 billion, with a projected growth trajectory at a compounded annual growth rate (CAGR) of eight percent from 2023 to 2033. Rising consumer preference for convenient and on-the-go beverage options align with the hassle-free nature of ready-to-drink teas. As per global market research firm, FactMR, the market is segmented by product type (herbal, black tea, green tea, others), by sales channel (direct sales, indirect sales), and by region (North America, Europe, Latin America, South Asia and Oceania, Middle East, and Africa).

RTD tea sales in North America

In North America, the ready-to-drink tea market holds a significant portion of the total market share, amounting to 32.2 percent, and is projected to experience a CAGR of 5.6 percent. In North America, convenience and health-consciousness drive the demand, with consumers valuing portable, on-the-go options and seeking beverages with perceived wellness attributes.

Moreover, increasing awareness of health benefits associated with tea consumption, such as antioxidants and potential stress reduction, has driven health-conscious consumers towards these products. Besides this, innovations in flavours and packaging formats further attract a broader consumer base.

Ultimately, the trend towards natural and organic ingredients in beverages has led to the development of healthier ready-to-drink (RTD) tea options, appealing to a segment seeking more wholesome choices. The RTD market in North America has experienced substantial growth and continues to evolve due to other factors such as:

  • Shift away from sugary beverages: Concerns about sugar consumption and its impact on health have led many consumers in North America to opt for RTD beverages as an alternative to sugary sodas and juices. Moreover, the rising rates of obesity in North America have drawn significant attention from healthcare professionals, policymakers, and the general public. Sugary beverages, including sodas and fruit juices, have been identified as a major contributor to excess sugar and calorie intake, making them a target for reduction.
  • Diverse flavour profiles: North America October 2023 is a melting pot of cultures and ethnicities, and as such, it boasts a highly diverse population with varying taste preferences. People from different backgrounds have grown up with distinct flavour profiles and culinary traditions. RTD brands recognise this diversity and seek to tap into the various regional and cultural tastes prevalent in the market.
  • Premiumisation is on the rise: The concept of premiumisation in the North American RTD beverage market refers to the growing trend where consumers are willing to pay a higher price for RTD options that are perceived as higher in quality, and uniqueness, and often associated with artisanal, small-batch, or organic production.

While TAZO is known for its hot tea offerings, it has also ventured into the RTD market. Image credit: Unilever

Forecast trends for North America

The evolving landscape of the RTD tea market in North America reflects consumer preferences for health, sustainability, personalisation, and diverse flavour experiences. It is important for businesses in this industry to stay attuned to these trends and adapt their strategies accordingly.

Consumers in North America are expected to seek out RTD teas that offer functional benefits, such as probiotics, adaptogens and added vitamins or minerals, to support overall health and wellness. Functional ingredients like probiotics for gut health, adaptogens for stress relief, and added vitamins or minerals for overall wellness are expected to be sought after.

Moreover, as the beverage landscape evolves, RTD teas may overlap with other categories like functional beverages, herbal tonics and wellness drinks. This trend suggests that consumers may have access to a wider range of beverage options with diverse health benefits. The boundary between traditional RTD teas and other beverage categories (functional drinks, herbal tonics, and wellness beverages) is expected to blur, leading to a greater variety of hybrid products.

RTD teas with specific health-enhancing properties, such as those promoting gut health, reducing stress or boosting immunity, are anticipated to gain popularity among consumers looking for functional and health- conscious beverage choices. Moreover, caffeine- free and low-caffeine options address the increasing demand for beverages that provide an energy boost without the stimulating effects of caffeine. RTD teas with low or no caffeine content cater to consumers seeking alternative options to high-caffeine beverages.

RTD tea companies are anticipated to introduce a wider range of unique and exotic flavours, as well as explore innovative brewing techniques and herbal infusions to cater to diverse consumer preferences. It lends into consumers’ desire for diverse and exciting taste experiences. Advancements in brewing techniques, including cold brew, nitro-infusion, and tea concentrates, are reshaping the RTD tea market by offering consumers a wider spectrum of taste experiences and product choices. These innovations cater to the evolving preferences of consumers who are seeking unique, high- quality, and customisable RTD tea options, contributing to the continued growth and diversification of the RTD tea industry.

The RTD tea market in North America, although growing, faces several challenges that industry players need to address to maintain and expand their market share. Some of the key challenges include:

  • While RTD teas are often marketed as healthier alternatives to sugary soft drinks, they still face scrutiny over their sugar content, artificial additives and preservatives. Consumers are increasingly health-conscious, and brands must respond by offering low-sugar, natural ingredient options and transparent labelling.
  • Environmental concerns, such as plastic waste and the carbon footprint of packaging and transportation, are critical challenges. RTD tea brands are under pressure to adopt sustainable packaging practices, reduce plastic usage, and implement eco-friendly distribution methods.
  • Many consumers are not fully aware of the benefits of RTD teas, including the potential health benefits associated with certain types of teas (eg, green tea) and functional ingredients (eg, antioxidants). Brands must invest in consumer education to highlight the value and nutritional advantages of their products

Starbucks’ Teavana Craft Iced Tea line focuses on high- quality, handcrafted tea beverages. Image credit: Starbucks

An intensely competitive market

The RTD tea market in North America is characterised by intense competition among a diverse range of players. Established beverage giants, as well as smaller regional companies, vie for market share in this segment. Key companies in the market are Danone, Harney & Sons Fine Teas, Nestlé SA, Snapple Beverage Corp, Starbucks Corporation, Beam Suntory, Inc, Tata Consumer Products Ltd, The Coca-Cola Company, The Republic of Tea, and Unilever Plc.

  • Key players often focus on product innovation and diversification, introducing new flavours, formulations, and packaging to cater to evolving consumer preferences. Moreover, new flavours and formulations cater to diverse consumer tastes, ensuring that the product portfolio remains fresh and appealing. Innovative packaging not only enhances product shelf appeal but also improves convenience, such as resealable bottles or eco-friendly packaging options.
  • Competitors in the market focus on marketing strategies that include social media engagement, celebrity endorsements, and health-focused campaigns to differentiate brands and attract a wider audience. Given the growing consumer interest in health and wellness, many RTD tea brands emphasise the health benefits of their products through advertising campaigns. This includes highlighting ingredients like antioxidants, vitamins, and natural ingredients that promote well-being.
  • Distribution networks also play a pivotal role, with companies leveraging both traditional retail channels and e-commerce platforms to ensure widespread availability. The rise of e-commerce has revolutionised the way consumers purchase beverages. Many RTD tea brands establish an online presence through their websites or partner with online retailers to provide easy access to their products. This is especially important for reaching consumers who prefer shopping online or those in areas with limited physical retail access.

Some examples of the leading brands in the North American market:

  • Pure Leaf, owned by PepsiCo: offers a wide range of RTD tea products. It continuously introduces new flavours and blends, such as its Pure Leaf Herbal Iced Tea Collection, featuring unique herbal infusions like hibiscus, chamomile and peppermint.
  • Teavana Craft Iced Tea (Starbucks): Starbucks’ Teavana Craft Iced Tea line focuses on high-quality, handcrafted tea beverages. It has introduced unique and innovative flavours, including Teavana Craft Iced Tea Pineapple Berry Blue Herbal Tea.
  • Tradewinds (NestléWaters): Tradewinds, a brand under Nestlé Waters, specialises in specialty RTD teas. It has introduced unique flavour combinations like Tradewinds Slow Brewed Iced Tea with Honey and Ginseng.
  • TAZO (Unilever): While TAZO is known for its hot tea offerings, it has also ventured into the RTD market. Its bottled TAZO Tea Latte range offers consumers a unique and convenient way to enjoy specialty tea beverages.

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Dunkin’ introduces its Spiked Iced Teas and Coffee to the RTD alcoholic beverage sector https://www.teaandcoffee.net/news/32634/dunkin-expands-its-rtd-alcoholic-offerings-with-spiked-iced-teas-and-coffee/ https://www.teaandcoffee.net/news/32634/dunkin-expands-its-rtd-alcoholic-offerings-with-spiked-iced-teas-and-coffee/#respond Tue, 15 Aug 2023 12:03:48 +0000 https://www.teaandcoffee.net/?post_type=news&p=32634 Dunkin’ have announced its new Dunkin’ Spiked Iced Teas and Coffees in the US, marking its continued expansion into the ready-to-drink alcoholic beverage market.

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Dunkin’ have announced its new Dunkin’ Spiked Iced Teas and Coffees in the US, marking its continued expansion into the ready-to-drink alcoholic beverage market. Starting in late August, Dunkin’ Spiked will be available in grocery and package stores across 12 states.

“We knew we had the opportunity to create something special when we saw the positive response to our previous seasonal collaborations for Dunkin’-inspired beers. The growing appetite for adult beverages inspired us to put a twist on our customers’ favourite Dunkin’ Iced Coffee, Iced Tea and Refresher flavours,” said Brian Gilbert, vice president of retail business development at Dunkin’. “Dunkin’ Spiked […] comes in eight distinct flavours, available in grocery and package stores later this month. This new line of ready-to-drink adult beverages elevates Dunkin’s offerings, and we know our 21+ fans will love every sip.”

Dunkin’ Spiked Iced Coffee has an ABV of 6%, drawing inspiration from the brand’s coffee flavours. Dunkin’ Spiked Iced Tea, the brand’s first venture into the hard tea category, has an ABV of 5% and offers four signature flavours.

The four Dunkin’ Spiked Iced Coffees varieties include:

  • Dunkin’ Spiked Original Iced Coffee
  • Dunkin’ Spiked Caramel Iced Coffee
  • Dunkin’ Spiked Mocha Iced Coffee
  • Dunkin’ Spiked Vanilla Iced Coffee

These can be purchased as:

  • A 12-can mix pack (three 12 oz. cans of each flavour)
  • Four-pack of 12 oz. Original Spiked Iced Coffee cans
  • Single 19.2 oz. Original Spiked Iced Coffee cans

The four Dunkin’ Spiked Iced Teas varieties include:

  • Dunkin’ Spiked Slightly Sweet Iced Tea
  • Dunkin’ Spiked Half & Half Iced Tea
  • Dunkin’ Spiked Strawberry Dragonfruit Iced Tea Refresher
  • Dunkin’ Spiked Mango Pineapple Iced Tea Refresher

These can be purchased as:

  • A 12-can mix pack (three 12 oz. cans of each flavour)
  • Six-pack of 12 oz. Slightly Sweet Spiked Iced Tea cans
  • Single 19.2 oz. Slightly Sweet Spiked Iced Tea cans

Consumers can find the Dunkin’ Spiked Iced Teas in grocery and package stores starting late August, while the Dunkin’ Spiked Iced Coffees will debut in early September. These beverages will be available in retailers across Connecticut, Delaware, Florida, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Texas and Vermont. To locate nearby stores, consumers can use the product finder on dunkinspiked.com. Notably, the Dunkin’ Spiked line of products will not be available at Dunkin’ restaurant locations.

To stay updated on the latest happenings at Dunkin’ Spiked, visit DunkinSpiked.com or subscribe to the Dunkin’ newsroom to receive notifications at news.dunkindonuts.com.

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REAL launches canned sparkling teas with first flush Darjeeling https://www.teaandcoffee.net/news/32290/real-launches-canned-sparkling-teas-with-first-flush-darjeeling/ https://www.teaandcoffee.net/news/32290/real-launches-canned-sparkling-teas-with-first-flush-darjeeling/#respond Thu, 29 Jun 2023 11:10:00 +0000 https://www.teaandcoffee.net/?post_type=news&p=32290 The REAL Drinks Co. has unveiled its RTD canned versions of Royal Flush and Dry Dragon sparkling teas.

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The REAL Drinks Co. has unveiled its RTD canned versions of Royal Flush and Dry Dragon sparkling teas. Founded in 2017, REAL Drinks now produces its beverages in the heart of Buckinghamshire, in the UK’s first sustainable, state of the art Fermentery in the grounds of the Waddesdon Estate.

The naturally fermented sparkling teas are non-alcoholic alternatives to Champagne and Sparkling Wine, according to the company, offering flavours that can be paired with seasonal foods such as barbequed chargrilled vegetables and seasonal desserts for alfresco occasions.

REAL utilises winemaking techniques to some of the world’s finest loose-leaf teas. Made using First Flush Darjeeling, known as the ‘Queen of Teas’, Royal Flush has notes of blackcurrant, rhubarb, peach, and a touch of spice.

Dry Dragon is crafted with pan-fired Dragonwell green tea, offering notes of honeydew melon and lemon, concluding with a nutty finish. Dry Dragon pairs with seasonal summer salads and shellfish platters.

“We’re not just launching ready-to-drink beverages, we’re rewriting the alcohol-free rulebook,” explains David Begg, founder of The REAL Drinks Co., “our Sparkling Teas deliver superior flavour, without the alcohol, for any occasion.”

REAL Royal Flush and Dry Dragon cans are now available to purchase at an RRP of GBP £35 per case of 12.

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Remedy Kombucha debuts in UK Sainsbury’s supermarkets https://www.teaandcoffee.net/news/32187/remedy-makes-its-debut-in-uk-sainsburys-supermarkets-with-a-brand-new-flavour/ https://www.teaandcoffee.net/news/32187/remedy-makes-its-debut-in-uk-sainsburys-supermarkets-with-a-brand-new-flavour/#respond Mon, 12 Jun 2023 08:00:15 +0000 https://www.teaandcoffee.net/?post_type=news&p=32187 Remedy launches into Sainsbury's across the UK this June, introducing its new flavour, Orange Squeeze.

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Remedy Kombucha is making its debut in Sainsbury’s supermarkets across the UK this June, launching with a new flavour, Orange Squeeze, as well as its popular Wild Berry.

The new flavour has been created to deliver bold citrus notes and, like the rest of their range, it is light, fizzy and refreshing. Remedy Kombucha Orange Squeeze is a healthier alternative to traditional sugary or artificially sweetened orange soft drinks. Remedy’s kombucha contains live cultures and organic acids to support gut health, and it is also free from sugar and contains only natural ingredients.

Remedy Orange Squeeze is made using Remedy’s 30-day, small-batch brewing process, which creates strong live cultures and complex flavour notes, says the company. This long-age ferment also removes all sugar, creating a shelf-stable, 100% plant-powered kombucha.

Launched in Australia in 2012 by husband-and-wife, Sarah and Emmet Condon, Remedy Kombucha has grown rapidly to become the UK’s most popular kombucha brand, sold in UK retailers such as Tesco, Ocado, Morrisons, Holland & Barrett, Starbucks, M&S, WHSmith, Amazon – and now Sainsbury’s.

Anna Dominey, UK general manager of Remedy Drinks, commented, “We’re delighted to be launching in Sainsbury’s with Orange Squeeze, our exciting new flavour. In partnering with Sainsbury’s, we’re looking forward to continuing to expand Remedy’s audience and surprising customers with just how delicious our sugar-free, all-natural kombucha is!”

Launching into Sainsbury’s with multipacks of 4 x 330ml cans (RRP: £5.50), Remedy Kombucha Orange Squeeze will also roll out within Holland & Barrett from July, in individual 250ml cans (from £1.99). The new flavour is also available now online at Remedydrinks.co.uk. Sainsbury’s will also stock multipacks of 4 x 330ml cans of Remedy Wild Berry Kombucha.

To find out more about Remedy Kombucha, visit Remedydrinks.co.uk.

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Kombucha eyes growth in new markets https://www.teaandcoffee.net/feature/32192/kombucha-eyes-growth-in-new-markets/ https://www.teaandcoffee.net/feature/32192/kombucha-eyes-growth-in-new-markets/#respond Tue, 09 May 2023 16:08:55 +0000 https://www.teaandcoffee.net/?post_type=feature&p=32192 Touted as the ultimate functional beverage, kombucha is a well known, strong performer in the US market with a rabid fan base, while in the UK and Europe, kombucha is still working to establish itself, but its popularity is growing. By Kathryn Brand

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Touted as the ultimate functional beverage, kombucha is a well known, strong performer in the US market with a rabid fan base, while in the UK and Europe, kombucha is still working to establish itself, but its popularity is growing. By Kathryn Brand

Depending who and where you ask, kombucha ranges from a niche beverage that people have heard of but do not know what it is, to a beverage and lifestyle staple. However, there is no argument that, globally, it is a growing category, situated in the ready-to-drink (RTD) tea market, which is also growing. This growth is driven by four macro trends, according to London-based Momo Kombucha’s co-founder, Josh Puddle, which are “gut health, low sugar, alcohol alternatives and vegetarianism/veganism.”

Consisting of fermented tea, using a live culture of bacteria, known as a SCOBY (symbiotic culture of bacteria and yeast), fruit flavours are often then added to create a naturally low-sugar, lightly sparkling probiotic drink, sometimes with a naturally occurring ABV of around 0.5 per cent, however many manufacturers remove this alcohol content to bypass possible restrictions.

Thought to originate in China, one of the largest markets for kombucha is currently the United States. A 2015 Mintel report found that nearly one quarter of US consumers were drinking kombucha, half of which were aged 25-34. However, the market has grown significantly since then so the figures are now likely higher — and it is still growing. Future Market Insights Kombucha Market Outlook report forecasts kombucha to globally experience a CAGR of 17.4 percent from 2022 to 2033, or a rise from USD $3.4 billion to $17.1 billion.

The US is one of the most developed kombucha markets, and therefore is experiencing innovation in the category, such as Caffe Luxxe’s coffee kombucha, brewed from the company’s own coffee as a base rather than tea, to “provide the energising effects of coffee in combination with the probiotic benefit of kombucha,” said Gary Chau, co-founder of south California-based Caffe Luxxe. Kombucha is highly popular among Californians, which Chau credits to the regional trend of lifestyle wellness and holistic health.

California was also the host state of Kombucha Kon, which saw its third annual installment in April. This conference and expo is targeted specifically at the kombucha industry, offering networking across the kombucha supply chain. “Medium-large and better-distributed US brands were represented, including Brew Dr., Bambucha, Flying Embers and Local Roots,” commented Jason Walker, marketing director of Firsd Tea North America, who attended the conference.

Where the US market is reaching maturity, in Europe, in particular the UK, whilst showing strength, the category is still establishing itself and growing its popularity base, with companies mostly trying to make themselves known and educate consumers on what kombucha is and the health benefits it offers, since this is what draws most consumers to the products, and then draws them back. One company already has an advantage in this respect; Yorkshire Tea, a household name in the UK for everyday black tea, is launching a line of kombucha in collaboration with kombucha brand, HOLOS Kombucha, brewed from its own tea. It is still in its trial phase and not yet available to consumers, however, attendees  at the London Coffee Festival, which took place in April, were able to sample the new line. Several other kombucha companies also exhibited at the annual event.

Millennials drive category growth

Kombucha is heralded as the ultimate functional beverage, serving as a probiotic, which contains live microorganisms intended to contribute to healthy levels of good bacteria in the gut, supporting digestion and boosting immunity. Kombucha companies are tapping into the wellness trend that strengthened during the Covid-19 pandemic, and offering a healthy, alcohol-free beverage that also tastes good.

Momo’s Puddle said that the main consumer demographic of its kombucha are millennials, primarily 25 to 45 year olds, which concurs with Fact.MR’s report detailing millennial’s rising adoption of bottled tea. However Caffe Luxxe’s Chau shared that its kombucha is sold generally to those “interested in an overall health and wellness lifestyle.”

That statement is supported by Anna Dominey, UK general manager at Remedy Drinks, an Australia-based kombucha company that dominates in its origin country as well as in the UK market, who says that it appeals to “those who are rejecting processed foods and drinks in favour of more natural alternatives and by those who are looking to cut down on alcohol or drink more mindfully.”

It is evident that the main driver of the kombucha category is its health benefits as well as the offering of an alcohol alternative. “Around 20 per cent of Remedy is consumed in the evening, suggesting consumers are enjoying it as a tasty and satisfying alternative to alcohol,” commented Dominey, further indicating the growing partnership between the low and no alcohol trend, and the functional/wellness beverage trend.

Beverage companies are tapping into this demand, according to Puddle, “more brands are creating products specifically for this segment, eg, kombucha in champagne-style and beer-style bottles.” An example of this is Mighty Brew, which, alongside its core range which retails at a price point of approximately £5.66 (USD $7.08) for 750ml, it offers a more premium ‘Heritage’ format at approximately £11.00 ($13.76) for 750ml which is housed in a champagne-style bottle, complete with cork and cage. Mighty Brew’s Heritage range is marketing itself as an alternative to alcoholic bubbly beverages at celebratory occasions.

Tapping into current trends

This functional/wellness and low and no category overlaps significantly with those incentivised by sustainability claims, therefore, most kombucha brands cite accolades accordingly, such as Momo achieving certified organic and B Corp status. Further, Remedy endeavours to source high quality, all natural ingredients; “This was the way Sarah and Emmet [Remedy’s founders] did it when they started on the kitchen counter, and they still take an active role in sourcing the best ingredients from trusted suppliers,” revealed Dominey. “We know where every single ingredient in our drinks comes from, right down to even our live culture,” she continued. Similarly, Caffe Luxxe builds sustainable relationships with its coffee farmer partners to provide consistent and fair prices.

Looking ahead, Future Market Insights (FMI) Kombucha Market Outlook report finds that it is “unlikely that consumer demand for fermented goods may decline anytime soon,” with the millennial generation’s focus on healthy eating fuelling the demand. However, to increase its consumer base, the kombucha market needs to actively promote its health benefits to attract the older consumer, as well as work on becoming more cost-effective, as it currently sits in the more premium category in most markets. FMI’s report also details that the category can take advantage of novel flavours to attract consumers and tap into the increasingly adventurous flavour palates of the consumer.

  • Kathryn Brand is an associate editor on T&CTJ, while still writing for several of Bell’s other magazines. She joined Bell Publishing as an editorial assistant at the beginning of 2022 after graduating from the University of East Anglia with a degree in English Literature and Creative Writing. She may be reached at: kathryn@bellpublishing.com.

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YACHAK Energy Tea unveils new product packaging and graphics redesign https://www.teaandcoffee.net/news/27971/yachak-energy-tea-unveils-new-product-packaging-and-graphics-redesign/ https://www.teaandcoffee.net/news/27971/yachak-energy-tea-unveils-new-product-packaging-and-graphics-redesign/#respond Wed, 20 Oct 2021 08:21:07 +0000 https://www.teaandcoffee.net/?post_type=news&p=27971 US brand YACHAK Energy Tea has announced the roll out of a new product packaging design that appeals to the brand's younger, health-conscious consumers.

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US brand YACHAK Energy Tea has announced the roll out of a new product packaging design that appeals to the brand’s younger, health-conscious consumers. Each can features a clean, bright design and its own unique associated animal – each species is local to the Amazon Rainforest in South America where YACHAK takes its inspiration from, and plants trees as part of the brand’s reforestation efforts.

YACHAK now offers refreshed packaging across its five ready-to-drink, canned teas, but the flavour profiles of all five varieties remain the same:

  • Berry Blue: An invigorating blend of blueberry and yerba mate.
  • Berry Red: A refreshing boost of yerba mate, raspberry, and cranberry.
  • Blackberry: A bold and effective blast of berry and yerba mate.
  • Passionfruit: Tropical taste of passionfruit and yerba mate.
  • Ultimate Mint: Crisp spearmint taste with a yerba mate twist.

Each unique flavour is made with USDA Organic ingredients including Yerba Mate, a species of the holly plant that grows in the central and southern regions of South America and provides a natural source of caffeine.

“We’re excited to unveil this new, modern packaging design for YACHAK. By evolving our packaging to focus on emphasising consumer interests, we’re letting our organic ingredients speak for themselves,” said Aziel Rivers, senior director of Marketing at PepsiCo. “This redesign was created first and foremost with our consumers in mind, bringing them an energy boost throughout the day while also being mindful of where their products come from.”

‘Yachak’ is the name the indigenous Kichwa people of Sarayaku in the Ecuadorian Amazon give to their Shamans. The brand is committed to providing a natural and organic source of energy that helps protect the trees, communities, and species of the Amazon rainforest. Through its partnership with non-profit organisation One Tree Planted, YACHAK is working to restore nearly 300 acres of green space by planting 280,668 tree seedlings and will plant over 500,000 trees by 2024. These combined efforts have made long-term harvesting possible and have provided 72 farmers with sustainable income and employment. A portion of each purchase of YACHAK goes towards supporting One Tree Planted.

The YACHAK brand’s five ready-to-drink, canned teas are available at select retailers nationwide and on e-commerce. The plant-based energy teas are USDA organic, non-GMO and made using Fair Trade Certified sugar.  Each 16oz can contains 165 mg of organic caffeine and retails for $2.59$2.79.

For more information, visit: www.YACHAK.com.

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John M Ferolito introduces Saint James Tea https://www.teaandcoffee.net/news/27877/john-m-ferolito-introduces-saint-james-tea/ https://www.teaandcoffee.net/news/27877/john-m-ferolito-introduces-saint-james-tea/#respond Thu, 07 Oct 2021 08:31:21 +0000 https://www.teaandcoffee.net/?post_type=news&p=27877 The eco-friendly, organic line of teas developed by an entrepreneurial team will be available online and at select retailers across Florida this fall.

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As the co-founder of AriZona Iced Tea, John M Ferolito is no stranger to success in the beverage industry. Now, Ferolito has partnered with an entrepreneurial team including global culture icon Jon Buscemi, Bond Audio & D’Angelico Guitars CEO Brenden Cohen, and beverage industry veteran Roy Warren Jr — to introduce Saint James Tea: an organic and sustainably-packaged line of ready-to-drink teas.

Named in honour of Father James Haggerty – an inspirational figure in Ferolito’s early career – Saint James Tea is designed to stand out from the crowd as a healthy beverage option that boasts minimal environmental impact. Saint James Tea puts the planet first by using Tetra Paks created with low carbon materials and made of 70% paper from responsibly managed forests. The packaging also eliminates exposure to air and light, which gives the preservative-free tea a shelf life of up to 24 months, while keeping the product fresh for as long as possible. A key component of the company is to encourage consumers to give back. Through its #WhoIsYourSaintJames initiative, individuals will be empowered to recognize those who are helping better their communities.

“In his lifetime, Father Haggerty worked to improve the lives of those in his community, myself included,” explains Ferolito. “We sought to create something that honours his legacy, so we developed Saint James Tea to offer a healthy, great-tasting product that is beneficial for people and the planet.”

A pioneer in the beverage space, Ferolito’s entrepreneurial ventures began with a  Brooklyn-based discount beer and soda delivery company launched in the 1970s. With the 1992 introduction of AriZona Iced Tea, the business transformed into one of the most successful iced tea brands in the country. Now, Ferolito, alongside a stellar executive team, is poised to disrupt the industry yet again with Saint James Tea.

As the brand’s creative director, Jon Buscemi — known worldwide for his fashion, retail and spirit brands including Truff truffle infused hot sauce, Wolves Whiskey and LUSSO CLOUD shoes — brings his innovative mindset and design knowledge to the product.

“I’ve been wanting to get involved in the ready-to-drink beverage space for several years, and with Saint James Tea I’ve finally found the right fit. From a trend standpoint, what Saint James is doing within the health and wellness space is exploding. It’s the perfect time to introduce an innovative brand like this to the market,” says Buscemi. “As a nation, we love these drinks, but they are always full of sugar. I’m involved because I love the way it tastes without any regrets.

“It’s exciting to join forces with John Ferolito, a true force in the industry and partner with Brenden Cohen and Roy Warren.”

Buscemi tapped PLAYLAB, INC for the launch of Saint James Tea. Founded in 2009 and led by Archie Lee Coates IV and Jeff Franklin, the multi-disciplinary LA based creative studio has cemented its reputation through its work with headlining brands including Adidas, John Elliott and Louis Vuitton, amongst others. The collaboration between Buscemi and PLAYLAB, INC. resulted in Saint James Tea’s Brand and Art Direction, which will begin rolling out later this year.

Saint James Tea will initially be available for purchase online and at select retailers across Florida.

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Sparkling tea: promising a future of unsweetened, healthy fizz https://www.teaandcoffee.net/feature/25835/sparkling-tea-promising-a-future-of-unsweetened-healthy-fizz/ https://www.teaandcoffee.net/feature/25835/sparkling-tea-promising-a-future-of-unsweetened-healthy-fizz/#respond Mon, 17 Feb 2020 17:13:12 +0000 https://www.teaandcoffee.net/?post_type=feature&p=25835 Sparkling tea is a small sub-segment of the ready-to-drink tea category, but as it taps into new healthy lifestyle trends, offers flavourful blends, appeals to younger consumers, and as innovative new players continue to enter the marketplace, sparkling teas are grabbing more shelf space.

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Sparkling tea is a small sub-segment of the ready-to-drink tea category, but as it taps into new healthy lifestyle trends, offers flavourful blends, appeals to younger consumers, and as innovative new players continue to enter the marketplace, sparkling teas are grabbing more shelf space. By Nandini Roy Choudhury

From traditional drinks to on-the-go business, from brewing the perfect cuppa tea to rapid explosion of ready-to-drink (RTD) cold brew coffee, and from spirits and beer to zero-alcohol, zero-calorie beverages – the beverage industry no longer looks like its former self. Today, non-alcoholic beverage companies in particular are operating on a whole new level, and the industry is undergoing massive shifts.

Although the industry has reached a point of saturation, opportunities still abound for manufacturers that blend beverage products with bold innovations. With consumers moving towards nourishment and nutrient density and the anti-sugar movement continues to impact purchasing decisions, a step-change in innovation is needed if companies are to prosper.

As the war of innovation supremacy intensifies and consumer’s thirst for healthy and eco-friendly options increases, the concept of consuming tea as liquid is being challenged and the humble brew could see monumental changes in coming years. While tea is moving away from its liquid format to tea tablets, sprays and strips, sparkling tea is making waves in the industry, aligning with the better-for-you trend.

Carbonated soft drinks (CSD) have reigned supreme in the refreshment beverage market for a long time. With the appearance of automatic vending machines and the plethora of choices available to consumers, CSD became a mainstay in American culture and gradually in other parts of the world. However, sales are increasingly stagnating, as a growing number of consumers are turning to natural products to improve their health over ‘fake-tasting’ beverages. Today, sparkling tea and RTD teas with natural sweeteners are picking up the slack for traditional carbonated drinks.

Over the years, the tea industry has proven a vast catalogue for use, variations and nuances, and sparkling tea is no exception. In the marketplace that now stocks green tea and herbal tea with significant health claims, sparkling tea appears to have a head start on the future. It is riding a new crest of the wave, with consumers, in large numbers, abandoning CSD in an accelerating trend and manufacturers filling the void in demand for ‘fizz.’

Realising that merely aligning with the ‘no-sugar’ movement won’t suffice for maintaining a distinctive brand persona, manufacturers are working on novel ingredients that promote health or offer condition-specific claims.

Tapping into New Healthy Trends

Amidst the explosion of disruptive technologies in the global marketplace and worsening environmental conditions, the concept of conscious consumerism is increasingly growing in its relevance. Subsequently, growing importance of making informed consumer decisions has led to a proclivity for organic and plant-based foods and low/non-alcoholic beverages. A blend of different teas from organic tea gardens rather than grapes is currently attracting a large number of health-conscious tea aficionados. Moreover, organic, non-alcoholic sparkling tea is making waves in pairing with a breadth of dishes, from seafood to sweet desserts, against sparkling wine.

Despite subtle shifts and evolutions, alcohol remains a permissible indulgence and continues to feature in social occasions. With quality reaching an all-time high, the revival of cocktail culture, especially among millennials, is carving a new application space for sparkling tea. Key manufacturers such as Copenhagen Sparkling Tea are adding sparkling tea to gin into the bargain. Such innovations and formulations are giving the otherwise matured beverage market the buoyancy necessary to stay afloat and flourish.

Appealing to Consumers Long Term

Is the future of sparkling tea in the hands of value-driven millennial consumers? There is no doubt that consumer demands have always affected what the beverage market offers. Today, millennials’ proficiency with social media and the emergence of the Gen Z demographic as the main consumers of tomorrow’s products are prompting a strong need for manufacturers to become early adopters of trends and to stay relevant in the long term.

Riding on natural, low-to-no alcohol, no-sugar, and alternatives to soft drinks quotient, sparkling tea is bubbling as the right product for millennials and Gen Z consumers. However, winning these consumers as long-term customers requires more than offering value-added products; manufacturers will need to look at the bigger picture.

Personalised products and customised experiences are turning up as top preferences for modern-day consumers, in addition to putting more weight on value affirmation, authenticity, and connectedness. Therefore, manufacturers of sparkling tea will need to play with everything from naturalness and functional indulgence to sustainable packaging formats and distribution trends.

Winning Shelf Space and Mapping the Road Ahead

The sparkling tea category is still a very small subset of the shelf-stable tea segment. However, spadework by tea innovators is setting the stage for emergence of sparkling tea brands. Spritz Sparkling Tea, with its launch in December 2019, brought two new flavours: a green tea infused with tastes of pomegranate, peach and lemon, and a hibiscus tea with flavours of guava, mango and dragon fruit.

As sparkling tea is beginning to win more shelf space from bottled water and CSDs, brands such as Sound Tea, Minna Sparkling Tea, Sun-Rype, Sparkling ICE, and the aforementioned Copenhagen Sparkling Tea and Spritz Sparkling Tea, are striving to become million-dollar brands in this fast-growing segment.

  • Nandini Roy Choudhury is a senior research consultant working with Future Market Insights (FMI), a global market research and consulting firm. She has been serving clients across food & beverages, pharma and chemical domains. Currently leading FMI’s Food & Beverages division, Nandini handles research projects in food ingredients, food innovation and beverages.

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Teavana expands RTD sparkling teas nationwide https://www.teaandcoffee.net/news/22512/teavana-expands-rtd-sparkling-teas-nationwide/ https://www.teaandcoffee.net/news/22512/teavana-expands-rtd-sparkling-teas-nationwide/#respond Thu, 16 May 2019 08:23:57 +0000 https://www.teaandcoffee.net/?post_type=news&p=22512 Teavana is expanding sales of its premium, ready-to-drink (RTD) Teavana Sparkling Craft Iced Teas and the addition of its newest refreshing flavor.

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Teavana is expanding sales of its premium, ready-to-drink (RTD) Teavana Sparkling Craft Iced Teas and the addition of its newest refreshing flavor, Sparkling Blood Orange Mango White Tea.

First launched regionally in the Northeast and Midwest of the US last year, consumers can now find Teavana Sparkling Craft Iced Teas available in three flavors nationwide:

  • Sparkling Blood Orange Mango White Tea: A blend of fine white tea, orange peel and the flavor of champagne mango – with an added touch of cane sugar for the perfect sweetness.
  • Sparkling Blackberry Lime Green Tea: A blend of green tea, lime peel and berry flavor with real cane sugar.
  • Unsweetened Sparkling Peach Nectarine Green Tea: White peach and nectarine plus hints of lemongrass and hibiscus, with no added sugar.

Sparkling Blood Orange Mango White Tea is the newest addition to Teavana’s Ready-To-Drink Craft Iced Tea lineup, with nine vibrant flavors ranging from sweetened to unsweetened, and brewed from some of the finest Teavana tea and botanicals, free of artificial flavors.

The teas are available where groceries are sold for the RRP of $2.39 per 14.5 fl oz bottle.

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