North America is evolving a retail model that will supercharge the $90 billion global tea market.
Investments in tea retail quicken the pace of innovation with convenience foremost. Sales of bagged, bottled and single-serve broken leaf blends are quickly overtaking conventional.
High expectations for taste, convenience and no-mess preparation make specialty tea fundamentally different than most consumer packaged goods. Innovation is paramount.
Value-addition is invigorating a static supply chain that will cleft with mechanization at origin. High-margin artisan tea harvested by hand will make up 20% of volume and virtually all profits.
Value-addition capabilities are aggregating in Dubai, Germany, China and Sri Lanka.
“Specialty tea is in a constant innovation cycle that is attracting a lot of money, with acquisitions leading to expansion of existing lines and bold, new experiments in formulation, ingredients, packaging and retail outlets. The retail segment has attracted $1 billion investment in the past 18 months, clear evidence that investors see huge demand and huge growth opportunity.” Manjiv Jayakumar, President QTrade Tea & Herbs.
Tea Industry has seen a lot of changes in the past few years.
India, lost its first position as tea producer to China for the first time, in the last 110 years. www.unitedworld.edu.in
India is fourth biggest exporter of tea on the planet after China, Sri Lanka and Kenya. Upper east India (like Assam) and north Bengal (like Darjeeling District) are the primary tea developing areas of the nation. Darjeeling tea can't be developed or fabricated anyplace else on the planet. India is one of the biggest tea expending nations as three-fourth of the nation's aggregate generation is devoured locally.
Tea Industry has seen a lot of changes in the past few years.
India, lost its first position as tea producer to China for the first time, in the last 110 years. www.unitedworld.edu.in
India is fourth biggest exporter of tea on the planet after China, Sri Lanka and Kenya. Upper east India (like Assam) and north Bengal (like Darjeeling District) are the primary tea developing areas of the nation. Darjeeling tea can't be developed or fabricated anyplace else on the planet. India is one of the biggest tea expending nations as three-fourth of the nation's aggregate generation is devoured locally.
Describes the process of making tea, the history of tea, the health benefits in a cup of tea, different types of tea and different ways of drinking tea in different cultures. It is an informal presentation I gave to my local rotary club
“SWIFT” is a soft drinks manufacturer company that heading into its fourth year of operation and produces mango juice, apple juice, blackberry juice, date juice etc. All of the items mentioned successfully running and continued to future profitability. To give them customer a new juice taste depending on marketing research information of the customer, we are going to launch a new favorite soft drink named “SWIFT Sugarcane Juice”.
All about managing a Public relation crisis of Chaayos, which is a new start-up of a tea franchise. They came up with a campaign "Mental about chai" and it went wrong. This presentation talks about the present problem scenario, how to deal with it and what can be the future plan.
Lipton Green Tea(SWOT Analysis,STP Process, and 4Ps)Sejal Gaikwad
This ppt is regarding Strategic Management of Lipton Green Tea.
Wherein its discusses the SWOT Analysis,STP Process, and 4Ps.
Also starting with Unilever's History And Lipton Background Providing a Base to the Presentation.
I hope you guys find this presentation Helpful.
Best wishes,
Sejal Gaikwad :D
Global State of the Industry: A Review of the Top Tea Trends and Markets Arou...Euromonitor International
This morning, Euromonitor International’s Senior Beverages Analyst Howard Telford presented to World Tea Expo in Long Beach, California on a ‘Global State of the Industry: A Review of the Top Tea Trends and Markets Around the World’. The presentation focused on the largest and fastest growing tea markets on a global basis and offered insights into the top trends that are driving sales from Istanbul to Brazil using Euromonitor’s latest Passport beverages data. The presentation discussed the latest drivers for consumer demand across the globe and what it means for producers and distributors in the upcoming year.
Headquartered in Kolkata, Tega was promoted in 1976 by the Mohanka family in a technical & financial collaboration with Skega AB, Sweden; In 1998, Mohanka family acquired 100% equity stake in the Company.
Market Research Reports, Inc. has announced the addition of “Global Tea Market 2016 - 2020” research report to their offering. See more at - http://mrr.cm/J5C
Describes the process of making tea, the history of tea, the health benefits in a cup of tea, different types of tea and different ways of drinking tea in different cultures. It is an informal presentation I gave to my local rotary club
“SWIFT” is a soft drinks manufacturer company that heading into its fourth year of operation and produces mango juice, apple juice, blackberry juice, date juice etc. All of the items mentioned successfully running and continued to future profitability. To give them customer a new juice taste depending on marketing research information of the customer, we are going to launch a new favorite soft drink named “SWIFT Sugarcane Juice”.
All about managing a Public relation crisis of Chaayos, which is a new start-up of a tea franchise. They came up with a campaign "Mental about chai" and it went wrong. This presentation talks about the present problem scenario, how to deal with it and what can be the future plan.
Lipton Green Tea(SWOT Analysis,STP Process, and 4Ps)Sejal Gaikwad
This ppt is regarding Strategic Management of Lipton Green Tea.
Wherein its discusses the SWOT Analysis,STP Process, and 4Ps.
Also starting with Unilever's History And Lipton Background Providing a Base to the Presentation.
I hope you guys find this presentation Helpful.
Best wishes,
Sejal Gaikwad :D
Global State of the Industry: A Review of the Top Tea Trends and Markets Arou...Euromonitor International
This morning, Euromonitor International’s Senior Beverages Analyst Howard Telford presented to World Tea Expo in Long Beach, California on a ‘Global State of the Industry: A Review of the Top Tea Trends and Markets Around the World’. The presentation focused on the largest and fastest growing tea markets on a global basis and offered insights into the top trends that are driving sales from Istanbul to Brazil using Euromonitor’s latest Passport beverages data. The presentation discussed the latest drivers for consumer demand across the globe and what it means for producers and distributors in the upcoming year.
Headquartered in Kolkata, Tega was promoted in 1976 by the Mohanka family in a technical & financial collaboration with Skega AB, Sweden; In 1998, Mohanka family acquired 100% equity stake in the Company.
Market Research Reports, Inc. has announced the addition of “Global Tea Market 2016 - 2020” research report to their offering. See more at - http://mrr.cm/J5C
Tea is the most versatile, fastest growing beverage category in the world... So why are projections of fast growth by large retail chains not being met?
What if the foot traffic that underpins the billions invested in retail beverage real estate quits walking past your store? The trend first became evident over the holiday season during the recession in North America. It has accelerated despite the recovery.
New truths:
-- Convenience is now essential for beverage retail success on-trade and off.
-- Creating a retail destination is now more important than location alone.
-- Distribution today is less about logistics and more about value.
“The jury is still out on the right tea bar or tea room concept,” explains Jurgen Link, a pioneer who founded Special Teas, Inc. in 1996. His company was later acquired by Teavana.
“The whole bar/tearoom channel is still in flux because no one has yet discovered a concept that is truly scalable — nobody, anywhere. That does not mean it is not possible,” he said, adding that “Once the concept is discovered there will be another big surge in growth.”
Dan Bolton edits STiR coffee and tea, the weekly World Tea News and is the founder of Tea Journey, a digital consumer magazine for tea lovers. Dan has worked as an editor, publisher and newspaper reporter the past 40 years. He is the former editor and publisher of Tea Magazine and former editor-in-chief of Specialty Coffee Retailer in San Francisco. He is also a leading retail beverage and content marketing consultant who speaks frequently at conferences around the globe.
A PPT describing how to launch a product, the surveys we conducted were authentic ( interviewing our fellow students).
It was for the final semester project
This deck outlines a campaign created for the brand Teavana (tea).
It gives a short description of the intended audience and then illustrates specific print and television campaigns.
Full creative brief is located at the end of the deck.
www.linkedin.com/in/anyacgonzales/
Tea Tipping Point: India International Tea Association - Goa 2012Tea Journey Magazine
Tipping Point
Convinced of tea’s health benefits and willing to experiment with different varieties in seeking superior taste, tea drinkers are visiting an expanding number of retail locations serving and selling packaged specialty tea. Rising affluence and the desire for convenience drive sales of hot and iced teas and have prompted Starbucks, DavidsTea, Argo Tea, Teavana and Unilever to open hundreds of new outlets. Middle class residents in urban India are showing a similar desire for tea at branded shops such as Golden Tips, airport shops like Chamraj (UNITEA) and Manjushree Tea and revitalized tearooms such as Cha Bar at OXFORD book store, Dolly’s Tea shop, Camellia bars, Tea Junctions Kolkata, and independent ventures like Chado Tea India in Mumbai.
Premium Switch
In the past year sales overall continued to climb due to the move to premium rather than greater volumes of tea. A tea cup of fresh leaf is six grams and a tea bag is closer to 4 grams. There is even less tea in a K-Cup but the difference in price is 3x to 6x. Last year Canadians drank about the same volume of tea and the same number of cups per capita but sales of specialty tea exceeded conventional (total volume is still greater for conventional). This is happening in the U.S. Sales in grocery are slipping as traditional brands lose ground. The industry is currently $8.7 billion but will quickly grow to $15 billion in three years (and some say sooner) despite the economic doldrums.
Tea in licensed and non-licensed K-Cups and Nespresso style capsules will account for 10% of all bagged and loose leaf sales in the U.S. in 2015, up from 6.5% in 2013 and growing at a faster pace than coffee. Tea retailers, grocers, wholesalers and distributors need to understand the competitive advantages of offering tea in this format and the limitations it imposes. By Single Serve: Tea in an Instant Speaker: Dan Bolton, managing editor STiR Tea & Coffee International; president, Mystic Media; Editor Tea Biz Blog; contributor World Tea News
This is our advertising campaign for Tazo Tea. As a group of five people we created an ad campaign by developing the tagline "We've got your blend". As well as creating a situation analysis, competitor analysis, and developing a target market.
This really showed the effectiveness of great in-store programs. In addition to industry awards, we found ourselves at the Oscar's, Emmy's, Olympic's......and this was a start-up with zero product less than 24 months earlier.
Do you know someone who drinks coffee? Of course you do.
Coffee is the second most consumed beverage on the planet after water. It’s the second most traded commodity after oil. People drink coffee all day, every day in almost every country around the world.
But here’s a really powerful question. When was the last time you were paid every time someone enjoyed a cup of coffee?
Welcome to Organo Gold. And welcome to a global groundbreaking movement that starts with Organo Gold coffee. From the ground to the cup. We’re a company that is working to improve people’s health, wealth and bring more balance into their lives thanks to the overwhelming power of Ganoderma – an ancient Chinese herb that has been used for more than 4,000 years to enhance wellness.
By infusing gourmet coffee and an ever expanding product line with the power of the Ganoderma Lucidum herb, Organo Gold has scientifically developed a healthy alternative to regular coffee that not only tastes great, but makes people feel great. And that’s where you fit in.
Organo Gold is on a mission, spreading the knowledge of Ganoderma to the four corners of the world and partnering with thousands and thousands of people along the way. Using the cost effective network distribution system to deliver these Ganoderma products, more of every dollar is shared with our growing Organo Gold family world-wide.
Think about your future. Where will you and your family be in 5 years from right now? You may know where you want to be, but do you know how you are going to get there? Do you have a plan? Now more than ever it’s up to you to define your future. That’s where Organo Gold comes into the picture.
Organo Gold is a global family that is growing and thriving every day. A family that is caring and compassionate and believes that the knowledge of Ganoderma should be in the hands of people world-wide. It’s a family that cares about you.
Do you or someone you know loves coffee and or tea? Do you want to know how to get paid to enjoy a cup of coffee, chocolate or tea? Well, you can to the right place. Contact me to find out more
www.epleitez.organogold.com
INSTRUCTIONS Read the case study below which is The case study .pdffitnessepitome245
INSTRUCTIONS: Read the case study below which is The case study focused
on the emergence and growth of the market for canned iced-tea while laying
much attention on the Western markets and answer the questions that follow.
Look Out Lipton, Here Comes Oolong!
Heating up an old product
Chinese Emperor Shen Nung was boiling water under a Camellia Sinensis tree in 2,737 BC.
When
some leaves fell into the pot, he found the resulting infusion pleasant. So, the legend has it, tea
was born. From this accident flowed the Opium Wars, the annexation of Hong Kong and rituals
that
have made tea far more than just a drink in the great tea-drinking nations of China, Japan and
Britain.
Thomas J. Lipton Company has been in the tea business ever since Cutty Sark and other tea
clippers
raced Cape Horn and The Cape of Good Hope to be the first to the European and American
coffee
houses with their crop from the Orient. By the 1990s the excitement had left the declining tea
market. To enliven the old-fashioned product market leader, Unilever resorted to selling Lipton,
along with its other leading brands, Brook Bond, PG Tips, Red Label and Taaza, using frantic
sales
promotions and comical characters. Then, the boring business heated up by cooling down.
Chalk up the change to those fickle consumers. Forget soft drinks. They were the rage of the
1980s,
as the cola companies added 'diet everything' to their lines and experimented with all sorts of
flavours. Forget sports drinks. They became the glamour drinks of the late 1980s and early 1990s
as the soft-drink market levelled and the cola companies searched for growth opportunities.
Forget
those flavoured sparkling waters, like Oasis and Perrier. They had a wild ride in the early 1990s
and
became a health sensation. Forget coffee. After being battered by soft drinks, the venerable
standby has risen as people have begun to turn away from alcoholic drinks and entrepreneurs
have
rediscovered the coffee house. However, today's hot drink is iced tea. Yes, iced tea. In fact, it's
iced
tea in a bottle or can, already prepared and ready to drink. No fuss, no boiling and no tea bags.
Iced tea is not new. We can trace iced tea invention to the 1904 World's Fair in St Louis. Richard
Blechynden, a promoter of Indian and Ceylon tea, found it impossible to peddle his hot tea in the
stifling Missouri heat. In desperation he dumped some ice cubes into his tea and discovered that
the spectators were willing to gulp anything cold. Iced tea in a can isn't new either. That's been
around since the early 1970s, but it had never been more than a blip on the beverage market's
radar screen.
Adding flavour
Flavour is what's new. In the USA, Snapple started the trend by building a regional cult
following
based on bottled iced teas that featured zany flavours like cranberry, peach and raspberry.
Snapple's flavoured, hot-filled tea (the manufacturer bottles the tea while it is still warm from
brewing) offered consumers a better-tasting tea. Befo.
Similar to Innovation in Tea: 5th Global Dubai Tea Forum by Dan Bolton (20)
Hamdard Laboratories (India), is a Unani pharmaceutical company in India (following the independence of India from Britain, "Hamdard" Unani branches were established in Bangladesh (erstwhile East Pakistan) and Pakistan). It was established in 1906 by Hakeem Hafiz Abdul Majeed in Delhi, and became
a waqf (non-profitable trust) in 1948. It is associated with Hamdard Foundation, a charitable educational trust.
Hamdard' is a compound word derived from Persian, which combines the words 'hum' (used in the sense of 'companion') and 'dard' (meaning 'pain'). 'Hamdard' thus means 'a companion in pain' and 'sympathizer in suffering'.
The goals of Hamdard were lofty; easing the suffering of the sick with healing herbs. With a simple tenet that no one has ever become poor by giving, Hakeem Abdul Majeed let the whole world find compassion in him.
They had always maintained that working in old, traditional ways would not be entirely fruitful. A broader outlook was essential for a continued and meaningful existence. their effective team at Hamdard helped the system gain its pride of place and thus they made an entry into an expansive world of discovery and research.
Hamdard Laboratories was founded in 1906 in Delhi by Hakeem Hafiz Abdul Majeed and Ansarullah Tabani, a Unani practitioner. The name Hamdard means "companion in suffering" in Urdu language.(itself borrowed from Persian) Hakim Hafiz Abdul Majeed was born in Pilibhit City UP, India in 1883 to Sheikh Rahim Bakhsh. He is said to have learnt the complete Quran Sharif by heart. He also studied the origin of Urdu and Persian languages. Subsequently, he acquired the highest degree in the unani system of medicine.
Hakim Hafiz Abdul Majeed got in touch with Hakim Zamal Khan, who had a keen interest in herbs and was famous for identifying medicinal plants. Having consulted with his wife, Abdul Majeed set up a herbal shop at Hauz Qazi in Delhi in 1906 and started to produce herbal medicine there. In 1920 the small herbal shop turned into a full-fledged production house.
Hamdard Foundation was created in 1964 to disburse the profits of the company to promote the interests of the society. All the profits of the company go to the foundation.
After Abdul Majeed's death, his son Hakeem Abdul Hameed took over the administration of Hamdard Laboratories at the age of fourteen.
Even with humble beginnings, the goals of Hamdard were lofty; easing the suffering of the sick with healing herbs. With a simple tenet that no one has ever become poor by giving, Hakeem Abdul Majeed let the whole world find compassion in him. Unfortunately, he passed away quite early but his wife, Rabia Begum, with the support of her son, Hakeem Abdul Hameed, not only kept the institution in existence but also expanded it. As he grew up, Hakeem Abdul Hameed took on all responsibilities. After helping with his younger brother's upbringing and education, he included him in running the institution. Both brothers Hakeem Abdul Hameed and Hakim Mohammed
Hotel management involves overseeing all aspects of a hotel's operations to ensure smooth functioning and exceptional guest experiences. This multifaceted role includes tasks such as managing staff, handling reservations, maintaining facilities, overseeing finances, and implementing marketing strategies to attract guests. Effective hotel management requires strong leadership, communication, organizational, and problem-solving skills to navigate the complexities of the hospitality industry and ensure guest satisfaction while maximizing profitability.
Vietnam Mushroom Market Growth, Demand and Challenges of the Key Industry Pla...IMARC Group
The Vietnam mushroom market size is projected to exhibit a growth rate (CAGR) of 6.52% during 2024-2032.
More Info:- https://www.imarcgroup.com/vietnam-mushroom-market
Innovation in Tea: 5th Global Dubai Tea Forum by Dan Bolton
1. Innovation in Tea
Rising Consumer Expectations Challenge North
American and British Tea Brands to Innovate
Dan Bolton
STiR Tea & Coffee
Industry International
2. Tea Lollypops (US) “On a health lick.”
Bottled Bubble Tea (UK)
AriZona Tea Flavored Water (US)
Tea for Kids (US)
Tea Innovations
3. Note: Download 24 examples of tea innovation at www.dmcc.ae
Blending Innovations
Black & Green (UK) Cocoa Cabernet (US)
Tattle Tea Chai (US) QTrade Tea & Herbs (US) Kilogram Tea (Intelligentsia US)
Watermelon Mint (US)
4. Note: Download 24 examples of tea innovation at www.dmcc.ae
Packaging Innovations
Practical Packaging Educational Message
Clever Concepts
Clean Design
5. Note: Download 24 examples of tea innovation at www.dmcc.ae
Marketing Innovations
Limited Yellow (US)
Lipton’s 1st Global Campaign
Small holder advocacy (Africa)
Folk art favorite (US)
TV Tie-ins (US-UK)
Marketing to kids (US)
6. Note: Download 24 examples of tea innovation at www.dmcc.ae
Tea Drink Innovations
Coconut Mango Sakura (US)
Slushies (US)Granita (US) Spiked tea 4% ABV (UK)
Milk Tea (Taiwan) Green Tea Red Bean Frappe
7. Note: Download 24 examples of tea innovation at www.dmcc.ae
Functional Tea Innovations
Lose Weight
Stop Smoking
Keep Calm
Boost Energy (75 mg/8 oz. caffeine) Build Immunity
Aid Digestion
10. Take Aways
Note: Download 24 examples of tea innovation at www.dmcc.ae
$1 Billion Bet on Tea Retail
Creative concepts are ready for rapid expansion
Innovative tea drinks and food raise average ticket
Convenience is Key to Growth
Ready-to-drink accounts for 75% of U.S. tea segment
Single-serve tea in capsules and pods is in its infancy
Disloyalty Drives Tea Innovation
Declining brand loyalty encourages experimentation
Recession bolsters private label manufacturing
11. Multiple
Ingredients
C. Sinensis
Herbals
Nutraceuticals
Fruit Blends
Juice Fusions
Flavored Teas
Multiple
Formats
Loose Leaf Artisan
Pyramid Sachets
Single Serve
Food Service
Iced Tea
Ready-to-Drink
Innovation
Where is innovation occurring?
Multiple
Channels
Retail | Big Box
Supermarket
Specialty Beverage
Food Service
Convenience Stores
Amazon.com
Note: Download 24 examples of tea innovation at www.dmcc.ae
12. When sales of the world’s most
valuable tea brand stalled…
stagnation was attributed to a
lack of innovation. Lipton lost
the top spot in U.S. convenience
outlets to AriZona Tea.
In Canada specialty sliced into
Lipton’s traditional tea sales.
New management made R&D a
hot bed of activity, in 2013
Unilever acquired Australia’s T2
retail chain and teamed with
Disney Pictures to launch its first
global marketing campaign.
Lesson Learned
“We will continue to accelerate
our innovations, backed with
competitive support, to build
long term growth and value.”
– Unilever CEO Paul Polman
Lipton/Unilever
13. “In a world filled with high-
stress wild-in-the-street
types like Animal, you have
to take time to enjoy life and
'Be More Tea. '" – Kermit
Be More Tea™
Lipton is second only to Coke as the
world’s most widely consumed prepared
beverage. Global sales: $2.7 billion (2012)
Lipton/Unilever
43 million Oscar
night viewers;
5.5 million YouTube
downloads.
The global revamp
will cost Unilever
$40 million, double
last year’s ad spend.
The goal is to make “Lipton into the
global iconic brand it deserves to be.”
Wisdom of Kermit (Banjo Serenade) Wisdom of Kermit (Rainbow)
14. Take Away 1
Big Bet on Tea Retail
• Ready for rapid expansion
• 3,500 > 5,000 tea shops
• Tea increases avg. sale
• After hours food & drink
“We are going to elevate the tea experience
in the same way we did for coffee,” Starbucks
CEO Howard Schultz told investors, “We are
going to reinvent and create an opportunity
for a new source of revenue and profit.”
Bloomberg BusinessWeek , March 20, 2014
16. Teavana Fine Tea + Tea Bar
Founded:1997|366Stores|U.S.,CanadaandMexico
This is a bold and inviting modern vision of tea retail.
Success rests on three consumer desires:
• A desire for a “third place” away from home
and office that evokes conversation and calm
— a respite amid urban congestion.
• A desire to learn more about tea, its history
and health benefits.
• A desire to sample and explore tea beverages in
a setting that encourages experiment,
customization and service.
Starbucks CEO
Howard Shultz
promised “to bring
breakthrough
innovation to the
tea category in the
U.S. and Canada.”
17. Teavana Fine Tea + Tea Bar
150 Teas | Tisanes
Teavana operates 366 stores with plans to open 1,000
more in the U.S. and overseas within five years. Adding 5
stores a week is easy. Starbucks has 20,000 locations in 64
countries and opens 1,500 coffee shops a year.
18. DAVIDsTEA
150 Teas | Tisanes
• Tea-to-go hot or cold
• Clever, colorful packaging
• Teaware designed in-house
• A new tea every month
• Limited Edition Collections
Updated Seasonally
“The cup has the infuser
inside with a top on it.
That’s why it’s the perfect
tea mug. We were so
excited.” – Oprah Winfrey
19. DAVIDsTEA
Founded: 2008 | 107 Stores in the U.S. and Canada
“When it comes to blending we like to think outside the cup.
Tea can be so much more than the leaves of a tea plant – for
us, it’s any plant, herb or spice that can be infused in water.
It’s all about discovery. We respect tradition but we like to
have fun with it too,” – Co-Founder David Segal.
20. Love at First Sip: Cha2O
A California nightclub marketed to kids aged
12-16 and open from 10 a.m. to 1 a.m.
Boba Tea: To subdue those
soft-balls cravings.
Bakery: For your sweet-craving
taste buds.
Restaurant: Appease your
grumbling tummy.
Lounge: Relax, ease frustrated
muscles.
Drinks come in two sizes:
Standard $3.15/16oz
Greedy $5.99/32oz
22. Trendy Tea Food
Breakfast
Rice
Porridge,
Scallions,
Toasted
Garlic Nori,
Cilantro
Sriracha,
Tamari
$12
Paleolithic
Wild
Salmon,
Smoked
Duck,
Squash,
Kale Salad,
Steamed
Beets
$20
Lunch
French ham and spinach over
roasted tomato on store-baked
four-cheese flatbread - $8.95
Samovar Tea Lounge, San Francisco. Teavana Fine Tea + Tea Bar, New York City. Teavana photos by Linnea Covington.
24. Take Away 2
Note: Download 24 additional slides with innovation examples at www.dmcc.ae
Convenience is Key to Growth
Ready-to-drink accounts for 75% of U.S. tea segment
Single-serve tea is in its infancy
“Cold tea brings a huge amount of dynamism to this
market, and opens up a new consumption occasion,
and access to a much younger consumer.”
– Winfried Hopf, Unilever Executive Vice
President Beverages – Chairman T2
25. Convenience
America is a land where convenience counts.
Making tea is messy, requires some precision and
takes time to steep. This is why RTD teas make up
nearly 75% of the entire U.S. tea market.
• RTDteasalesgrewto$5.1billionin2013,upfrom$4.8billionin2012.
Convenienceoutletssold1.2billionRTDteaunitsearning$1.23billion.
• Consumptionhasrisento5gallonsperyearforeveryoneover18.
• Premiumbottledbrewedteasandspecialtyshowedthegreatestgrowth.
Unsweetenedicedteain2012grewmorethan16%indollarsales.
Sources: CSP 2013 Beverage Report SymphonyIRI Group
Soft Drinks in the US, Euromonitor International, July 2013
AC Nielsen, 2012. Adult population: 240 million (2012)
Thanks Colleen Norwine, BW Coopers.
26. Ready to Drink Tea
“Other companies now recognize the opportunity and
are hopping on the iced tea bandwagon. That’s fine.
We’ll be where we’ve always been -- out front, leading
the way.”
Barry Cooper, founder of
Cooper Tea Co., is a pioneer in
the expansion of premium RTD
tea in convenience stores.
Cooper’s bottled teas and
concentrates are unique in the
market for their extensive
certifications. He explains the
8.6% increase in unit sales in c-
stores in 2012 is two-pronged:
1) a reflection of consumer
demand for convenience
2) the increasing focus on
health and wellness.
“The non-GMO movement is
likely to have an increasing
impact on the RTD market,”
according to Cooper.
27. Head to Head
Nestlé Nespresso - $4.4 billion
Dominates Europe ($300 million| 3% U.S .)
Keurig Green Mountain - $4.4 billion
Dominates North America (0% Europe)
• All major brands in the segment: Top five earned $100 million*
Lipton | Celestial$32 | KGM$29 | Bigelow$12 | Snapple$11 Million
• U.S. household penetration 15%
Canadian household penetration 20%
European household penetration 20%
• Coffee preparation at home (past day)
29% drank single serve | 53% drip brew
National Coffee Association 2014 National Coffee Drinking Trends Study; NCA Market Research Series; Euromonitor International.
*IRI Total U.S. Multi-Outlet w/C-Store (Supermarkets, Drugstores, Mass Market Retailers, Gas, Select Club – 52 Wks. End Jan. 26, 2014.
Single Serve
Harney & Sons
31. Innovation is valued in every category
But North America has recently launched
some unusually clever and creative retail
and packaged beverage concepts.
The result is that tea availability per capita in the
U.S. has climbed to 9.3 gallons (2011) which is
the highest level since 1918 when consumption
peaked at 11.3 gallons. — USDA ERS
North America is the 4th largest tea importer.
Why? Disloyalty.
32. Take Away 3
Disloyalty Drives Tea Innovation
Declining brand loyalty encourages experimentation
Recession bolsters private label manufacturing
Consumer expectations for conventional tea
brands are raising the stakes for North American
retailers. Customers who purchase tea are more
likely (55%) to stay with a familiar brand than most
categories but almost half think nothing of
changing brands for something new.
– Hartman | FMI Research
33. Brand Loyalty Declines
Brand loyalty declined in 2013 for
the third straight year in a broad
market survey of 350 brands in 28
product categories. Private labels
are thriving: 88% of those surveyed
say private label brands are just as good as
national brands. Consumers are much more
frugal. Only 27% say they will revert to national
brands when the economy gets better. – Deloitte
American Pantry Study. In January 2013 Deloitte surveyed 4,047 respondents in 28 product categories and more than 350 brands. P at
Conroy, vice chairman and U.S. Consumer Products Leader said that “one of the most notable year-over-year trends in the study is how
embedded frugality has become due to the recession. Prudent consumers and improving perceptions about store brands are squeezing
national brands’ position. The gap between the few ‘must have’ brands on shoppers’ lists and others on the shelf may be widening.”
34. Constant Innovation Cycle
“Specialty tea is in a constant
innovation cycle that is
attracting a lot of money, with
acquisitions leading to expansion
of existing lines and bold, new
experiments in formulation,
ingredients, packaging and retail
outlets. The retail segment has
attracted $1 billion investment
in the past 18 months, clear
evidence that investors see huge
demand and huge growth
opportunity.”
ManjivJayakumar,PresidentQTradeTea&Herbs
“Innovation is the key to opportunities in tea.”
35. How Big is the Opportunity?
• One trillion cups consumed each year.
• Euromonitor International estimates
the global tea market at $87.5 billion.
• Bottle tea and coffee is expected to
generate $125 billion by 2017.
• U.S. Tea Market: $10 billion
• Canadian Tea Market: $4 billion
• U.K. Tea Market: $1.3 billion
Euromonitor. Global Tea Market. MarketsandMarkets, revenue from tea and coffee has grown10.9% since 2011 when RTD sales were estimated at $69 billion globally.
36. Tea Drinkers
With more than 290 billion liters sold in retail and foodservice, tea is the world’s most
consumed beverage, outpacing bottled water, carbonates, beer and coffee. Euromonitor (2012)
U.S. Tea
Pop. 313.9 million
Per capita: .5 lb.
79 Billion servings
44% Drink tea daily
65% Use tea bags
14% Loose leaf
84% Black
15% Green
6-10% Herbals*
15%Hot|85%Iced
25% Drink RTD
Pods: 15% homes
Canada Tea
Pop. 34.88 million
Per capita: 1.1 lb.
9.7 Billion servings
54% Drink tea daily
96% Use tea bags
≤20% Loose leaf
57% Black
25% Green
18% Herbals*
97%Hot|3%Iced
11% Drink RTD
Pods: 20% homes
U.K. Tea
Pop. 63.23 million
Per capita: 4.3 lb.
60.2Billionservings
87% Drink tea daily
96% Use tea bags
4% Loose leaf
98% Black
2% Green
≤5% Herbals*
99%Hot|1%Iced
≤5% Drink RTD
Pods: ≤5% homes
Mintel International. Euromonitor International. Tea Associations Canada, Tea Association of the USA, British Tea Council. Calorie Lab Daily Mail So How Do You like your cup of tea?
38. Coffee Shop Opportunity
Tea Drink (16-oz) Tea Price Cup Lid Ingredients Cost Profit Margin
Iced Tea (loose-leaf) .09 2.25 .09 .03 $.12 (Sweetener/Ice) .33 $1.92 85%
Tea Latte (w/skim) .09 3.25-4.25 .09 .03 .024 x 13 oz = $.31 .52 $2.73 84%
Tea Latte (w/whole) .09 3.25-4.25 .09 .03 .027 x 13 oz = $.35 .55 $2.70 83%
Chai (brewed w/h&h) .20-.30 3.95-4.25 .09 .03 .031 x 7 oz = $.22 .64 $3.31 84%
Chai (mix w/water) 1.15 3.95-4.25 .09 .03 Water 1.15 $2.80 71%
Tea Drink (12-oz) Tea Price Cup Lid Ingredients Cost Profit Margin
Bulk Tea + t-sac .09 1.90-2.75 .07 .03 Water .19 $1.71 90%
Teabag .13 1.50 .07 .03 Water .23 $1.27 85%
Pyramid Sachet .43-.48 1.90-2.75 .07 .03 Water .53 $1.37 72%
Daily consumption is high at 61% with 79% of adults drinking coffee in one form or another.
NCA’s drinking trends survey shows a pronounced shift to gourmet/specialty with 34%
partaking daily. The Canadian Coffee Association shows 65% drank coffee the past day and
37% drink tea daily. There is no comparable report on past day tea drinkers in the U.S. but
158 million Americans (51%) reported drinking tea in the past year.
National Coffee Association Drinking Trends Survey, January 2013. Canadian Coffee Association national survey of past day coffee drinkers (2013) Specialty Coffee Retailer April 2011 Steeping in Profits.
“Going from bagged to loose-leaf teas doubled our sales,“ says JP’s Coffee in Holland, MI.
39. Tea is Undervalued
Despite accounting for 29% of global
beverage volume tea commands only 13%
of value.
“That is the point that makes us at Unilever
so excited, because there is a real
opportunity to uptrade this category. Tea is
the hottest beverage in the beverage
landscape."
- Winfried Hopf, Unilever Executive Vice
President of Beverages - Chairman T2
40. Dan Bolton
STiR Tea & Coffee
www.stir-tea-coffee.com
dan@stir-tea-coffee.com
Tea Biz Blog
Better Business Insight
www.tea-biz.com
dan@tea-biz.com
Mystic Media
1108-21 Roslyn Road
Winnipeg, MB R3L 2S8
CANADA
204 788-1359 (office)
204 230-7125 (mobile)
Skype: dwjbolton
Editor's Notes
Starbucks $60 billion annual. The latest proof: a new partnership with Oprah Winfrey to launch Teavana Oprah Chai Tea. While Winfrey is well known for her annual list of favorite things, where Starbucks-owned Teavana appeared this year, she’s never before put her name on a product she doesn’t own. – Bloomberg BusinessWeek. http://www.businessweek.com/articles/2014-03-20/oprahs-new-favorite-thing-starbuckss-howard-schultz?campaign_id=DN032014