the ready-to-drink iced tea explosion.
Tea market from courtesy to good
Rehearsal inhibits stimulation.
Of course, the phenomenal growth of this category does not lack media coverage, nor does it lack the theory of trying to explain it, E. G. g.
Conscious consumer, taste, hot
Packaging and better realbrewedproduct.
Although it is difficult in time to separate the well-known carriages from horses, one can find some truth in all of them.
So why another story about this topic? Ready-to-drink (RTD)
In fact, iced tea has brought great benefits.
The success encouraged further investment in resources and innovation and continued to attract newcomers.
In fact, I interviewed more than one person during the process of assembling the pops article, and he thought the current iced tea market was similar to the bottled water boom a few years ago.
This series of activities shows that the classification is still immature and has not yet \"discovered its boundaries\", which indicates a concept of developmental psychology.
On the contrary, with the expansion of the iced tea market, what we see is that the traditional line of separating iced tea from other beverage categories is blurred.
For example, can anyone imagine that a few years ago the Quaker Oats would have a taste of iced tea because of its Gatorade, iced tea cooler? Gatorade-
It may be flavored tea, but not tea.
Seasoned and happy.
When it comes to boundaries, if Iced tea is called iced tea, how much tea must there be in iced tea?
All these experiments mean that the story needs to be revised frequently for trade reporters.
According to recent statistics, there are 75 to 80% people in the United States. S.
Families drink iced tea, ranking third after soft drinks and beer. Ready-to-
Overall, iced tea is faster than any other tea.
Sales rose 50% to $0. 6 billion in 1992.
Several observers said the company has surpassed $1 a billion this year, although the data varies greatly from source to source.
Retail sales in the beverage industry are estimated at $47 billion.
Despite every dollar spent on RTD iced tea, the United StatesS.
Consumers spent $50 on soft drinks, and the latter category grew at an annual rate of only 2-3%.
Business weekly reported on April that the sales of A & W\'s \"flagship root beer, which is equivalent to 42% of the company\'s \'ssales\' rolls, fell 5% in 1992 according to Nielsen MarketingResearch. \" The soft-
The beverage industry is actively exploring other ways of growth and profitability.
Also in Business Week, Lou lowenkron, ceo of A & W, noted that \"RTD iced tea and sports drinks are the two most promising areas in the beverage industry. \" (
Since then, there has been a cool phenomenon of Gatorade iced tea. )
In any case, the biggest participants in soft drinks take RTDiced tea very seriously and join hands with the household name in the tea. Coca-
Coca-Cola paired with Nestea, Pepsi paired with Lipton, and A & W signed with Tetley.
Other entries include celestial seasoning lines, collaboration with Perrier Group, Tejava for crystal fountains (pronounced Tea-Java)
Currently only available in California, Arizona tea in Brooklyn, stea of Hansen and white stone-
To give a few examples, it is very active.
How did we get here?
According to Joseph Sinny, executive director of the US Tea BoardS. A.
, Ready to drink iced tea category has won the unprecedented favor of consumers for several reasons.
\"In general, tea is considered a healthy product.
Therefore, improving consumers\' intelligence and understanding of personal health control will help the development of tea . \"
Iced tea provides a convenient, healthy soda and beer.
Natural products with fewer calories and feweraddives are popular.
Bottled tea is perfect for this description.
\"Obviously, consumers are buying more and more iced tea nowadays, because the quality of iced tea is getting better and better.
\"One of Lipton\'s innovations is called hot packs,\" Simrany said . \".
Tea can be packed while hot, so no preservatives are needed.
The idea of \"this\" really brewed \"RTD ice town teaseems has become popular, although there is still some controversy and ambiguity about its true meaning.
Must brew \"really brewed\" iced tea with real tea wine before hotpacking?
Or, does this also mean that at some stage tea is brewed with real tea, but then converted into concentrate or essence. The actual product is made from the mixture of water before the packaging is heated before disinfection?
Leading brand name (
Now, in addition to many other entries, at least a \"real brewed\" claim has been filed against some of their RTD iced teas.
While this is the quality that consumers seem to appreciate, it does not seem to provide a definitive distinction between leaders.
Because the connection between tea and health has resonated with some consumers, we should not be too surprised to find that the company has messed up the connection between quality iced tea and water quality.
Perrier/Celestial seasons, Crystal Geyser, and White Rock all highlight the source of spring water in their RTD iced tea, a unique element of their product identity.
When I asked Simrany about the marketing efforts of this category, the higher stakes pushed up the promotional funds, and he happily replied, \"there is a lot of marketing money in the pipeline at the moment, the tea industry in this country is unprecedented.
\"How do we explain this incident?
Snapple is a key factor.
RTD iced tea is seen as a \"also run\" part of the tea industry.
They put chic into marketing activities.
What Snapple has done is to introduce the concept of good --
Taste tea in a convenient form.
They also did a great job in distribution.
Especially in Africa.
Traditional audiences in universities and high schools --schoollevel.
\"These promotional fees will be Pepsi/Lipton TeaPartnership\'s Bo Jackson and Swedish model Vendela with A & W/Tetley\'s no-
Nonsense, piler and Snapp folk messages about gay populism.
Snapple says they reply every time they receive a letter, more than 300 per day.
The person who wrote these letters is the one you saw in the advertising campaign you created in New York.
Based on Kirchenbaum and bonds of ad company.
Greater marketing and distribution has brought new consumers into segments.
\"That\'s it,\" Simranyobserves observed, \"the potential universe of tea consumption is growing exponentially.
It is soaring.
However, the executive director of the Tea Board warned, \"it is too early to judge whether they will bring real competition to soda . \"
According to The Wall Street Journal, it shows 40-
The annual growth rate is 50%.
Most of them are new.
How much of this can persist is still a problem.
\"Made of the best things on Earth\" Snapple boom is the biggest story of all known --
Drink iced tea.
It is by far the best sellerto-
Drink iced tea in the United States. S.
Distribution was realized in all 50 states by the end of 92.
Consumers in the Pacific Northwest and California are particularly enthusiastic, and Snapple has also won most of these markets.
In fact, after entering the California market in 1991, the company\'s sales rose 900% in the second year.
In the history of liquid tea sales in the United StatesS.
With annual sales of over $2 million, Snapple leads 33.
Market share of 8%, followed by Nestea, 19.
Lipton on the 8 th and 17 th
According to Nielsen. The Chicago-
According to the Advertising Age, Snapple captured a 13-year-old Lipton. 2%share.
A year ago, Snapple, based in Valley Creek, Long Island, New York, went public.
According to its 1992 annual report to shareholders, \"Snapple\'s expansion to the new market
With the further penetration of the existing market.
One way to gain a bigger share in the existing market is to take advantage of consumers\' acceptance of Snapple products --
Built mainly through single bottle sales in convenience stores, sandwich shops and delicatessens as a springboard to develop additional supermarket distribution and shelf space, resulting in increased multi-bottle sales.
\"I spoke to Leonard Marsh, snapplespresident & ceo and one of the company\'s founders, who described the company\'s target audience:\" Most drinks were consumed by people between the ages of 18 and 35, but if you walk into any of the convenience stores, you\'ll see children no more than 10 years old and older drinking Snapple tea.
How does he explain their success?
\"We had a real cup of boiled tea and went on to season it with the best flavors in the world.
We did something we never did before. -
Put good tea with good taste-
95% of our tea comes from India and a small portion comes from SriLanka \"and of course when everyone else is in a can or carton they put it in a large mouth glass bottle.
Legendary Snapple is a small company that prepares big companiesto-
Change from canned to beverage market
Everyone acknowledges the impact of this move and is confirmed every time another RTD comes out.
In 9 of the 10 cases, this product will also appear in glass bottles, and many people will have a familiar wide mouth.
But now Snapple doesn\'t just use wide glass packaging.
In order to increase the sales of multiple units and make their drinks more widely available, they have diversified sales.
Marsh said, \"We have been in the can for two years, at 6-
Bags, but mostly for public schools, beaches and parks, remaking machines, are basically places where glass is not allowed.
But beyond that, we do not intend to further promote our products in cans.
\"Looking at snapple\'s success from another perspective, I talked to Bill MacMelville in New York --
Tea importer and mixing expert based in tea
Drink iced tea, especially the Snapple collection.
\"The best thing that happened in the tea industry was not the cans launched a few years ago, but bottled and seasoned iced tea.
They really took off.
Lipton and Nesta are out there, but what really wakes up the market and forces others to keep up is Snapple.
Tea is a pleasant drink.
This product has a lot of shelf space, which is the exposure of tea that has never been seen in this country.
\"Their success is not only because of clarity
In his view, there are mouth bottles and flavors in addition to their national radio and television commercials.
\"Snapple has a variety of ads, there are ready-made ads
According to MacMelville, beathumor responded to some of the letters they received in these advertisements, which provided a hook.
Advertisements are often silly. looking things.
In an advertisement, for example, they invited an art critic to interpret or analyze a picture on one of their beveragelabels.
\"Mcmelville himself appeared in one of the Snapplescenarios, which was inspired by a letter asking about Snapple ice
Snappleproceded, with MacMelville as the designated expert, established a tea tasting to solve the problem on the camera.
Mcmelville believes Snapple has attracted young people, teenagers and young people between the ages of 18 and 30.
There is also a more traditional market for iced tea.
\"They are hurting the soda market because they are not carbonated.
It is not filled for this reason.
\"In front of any of my competitors near Los Angeles, some SNAPPLE iced tea with slow Snapple tea may disappear from the supermarket case, but marsh admits, tea in the Snapple product line is not all as fast as he thought.
\"Neither diet nor diet is very good, and it is not very successful without sugar,\" Marsh admits . \".
\"Where is SNAPPLE now?
Snapple will launch another takeaway
Home glass containers for many Snapple drinks, more than 32-oz.
Bottle it now.
\"Some new tea products will also be launched,\" Marsh said . \"
Everything from potato chips to ice cream has its own name, he said.
His answer was: \"We want the name to represent a good drink.
\"Other possible expansion channels include the institutional food service market and vending machines.
Now that SNAPPLE has demarcated shelf space in all 50 EU states, what is the plan to further expand distribution?
Marsh: \"We did a very good job in Canada and we are very strong in the Caribbean.
We are now in the UK and Norway and will be in Ireland soon.
No problem in Mexico. I blamemyself.
Now that we have more people, we should do better.
We are talking to people from other European markets, Central and South America and the Far East. \" Glad I asked.
The last point of Snapple geography.
The Long Island company plans to relocate in the next few months, although it will not go far.
They have purchased a building in East Meadow, also in Long Island, and will start at the end of this year or January of 94 at the latest from their current location in the Valley Stream.
January of 1992 Lipton of the this not no sippin of tea of Thomas in J.
Lipton and Pepsiannounced announced that they will invest resources in the marketing of RTD iced tea to form a Pepsi/Lipton Partnership.
According to their promotional literature, the resulting \"Lipton Original\" is a new product line and the first such product line in the rtd category.
No preservatives, no artificial ingredients.
According to Peter Goggi of Lipton, Lipton is the only one
Drink iced tea brewed from real tea.
Lipton Original RTD iced tea 16 ounces.
7 different kinds of glass bottles: sweet without lemon and lemon, sweet with lemon and lemon
Taste, sweet berry taste, lemon taste.
Lipton is brisk and new 12 ounces.
There are three kinds of canned iced tea products, namely three kinds of canned iced tea and Lipton fountain.
Nestle Beverage Company nestea \"tasting slump\" in 1991\"
, Manufacturer Nestle iced tea, TheCoca-
The Coca-Cola Company established the Coca-Cola Company.
Cola/Nestle Beverage Co. , Ltd. to marketready-to-
Drink iced coffee, chocolate and tea drinks worldwide.
The first product launched by the new company in the United StatesS. was ready-to-
Drink iced tea for 11 minutes. 5 oz. cans and 16 oz. and 32 oz. glass bottles.
This year, ready-to-
Drink Nestea has four flavors to choose from: natural raspberry, peach, tropical and apple spice.
AndreaCooke, public relations manager, Nestle beverages
\"All of our efforts have been put into our new iced tea products, including powder and ready-made --todrink.
We are also working on a new instantherb tea.
The best of \"Tetley\'s\"
On March 1992, Tetley entered into a license agreement with a & W.
The arrangement gives exclusive USA to A & WS.
All ready manufacturing and distribution rights
On February 1993, the beverage industry reported drinking iced tea products with the tetley trademark.
According to Tetley\'s label, they offer eight flavors in the 16-ounce RTD icedtea collection.
Bottle: classic Sweet natural lemon, diet natural lemon, raspberry blizzard, diet raspberry, orange Glacier, Apple freezeand peach cooler.
The 12 oz also offers natural lemons, natural lemons for weight loss, and raspberry zardare. cans.
16 ounces in the northeast. and 64 oz.
Classic sweet lemon and natural lemon are also introduced.
Tetley is reportedly investing $35 million to sell its new round tea bag, and A & W hopes that, with the help of pearls, A large part of this visibility will be transferred to the RTDiced tea line.
During the launch of the round tea bag, each box of round tea bags has a coupon for theRTD line.
Industry watchers point out that distribution will be the biggest challenge for A & W/Tetley.
A & W was happily taken away by coca. Cola-and Pepsi-
Because its production line is not directly competitive, the affiliate bottling and distribution network.
A & W won\'t be so lucky for its RTD iced tea.
They challenged Pepsi\' slipton and Coca
Nestea iced tea from cola.
Red roses and red roses under the Sarada brand and Sarada, Kang en-
Ecticutbase Redcoalso also offers RTD iced tea in certain markets across the country.
The tea here, especially Salada Tea, is concentrated in the northeast along the eastern coast.
They think red roses are a national product and in any case they have found some interest in Seattle.
Sscherner, Redco\'s national food company, explained: \"At this point in time ,\"
Service sales and marketing management, \"the biggest share of our iced tea business so far is the package --in-a-
Box agency food service items used by Burger King.
I would say that the demand for this tea has always been good and stable.
\"We just launched a 24-ounce product.
\"Add Tintin tea to a plastic bottle containing peaches, raspberries, lemons and sugar,\" Scherner said . \".
\"This is not a brewed product, justan instant with flavors.
We look forward to the 24 ounces.
The bottle competes with the price of 16 ounces.
Products on shelves.
So far, our initial sales have been very successful.
\"At present, Salada Lin is only available within 12 ounces. cans.
\"Next year,\" scherner told me, \"We will focus on Salada.
We have been looking for hot packaging and the possibility of real brewing.
\"Pierre and Celestial Seasonings announced its joint thermal resistance Ice Town teaventure, which was in the past June.
Depending on the name and appearance of the sky, these iced teas are also different because they are made from the water source of the perrier family spa in Northern California and New Hampshire.
There are four variations of herbs, Cranberry Bay, Lemon Ginger, diet and non
Diet Raspberry Zinger.
Lemon iced tea with diet and non
The diet includes a black tea bag with lemon flavor, herbs and high fructose corn syrup.
Packed in 16 ounces.
Glass bottles for sale in singles or fourpacks.
Advertising support for Celestial RTD line includes a combination of television, radio and outdoor billboards, as well as special event marketing and product sampling in the target market.
Distributed in Florida and 14 other target statesS.
The Perrier Group is dealing with the market. TEJAVA (Pronunciation of teaJAVA\")Napa Valley-
The Crystal Fountain, based on the west coast of the United States, launched Tejava in 1993 summers.
The color of Japanese women\'s tea --
Pickup and PR lens for decoration L. A.
When I thought of me crossing the city with masstransport, I thought of the regional bus and the famous billboard on the west side.
Tejava advanced Java tea is a beautifully packaged, ready-madeto-
Drink iced tea brought from Japan by the crystal fountain.
Does not contain added spices, sweeteners or preservatives.
\"We are creating a new niche in this exciting category,\" said CrystalGeyser Water Co . \".
Peter Gordon, chairman
This niche may be a category itself. -
How about professional preparation-to-drink iced tea? Crystal-
Geysercurrently is currently brewing this product in Japan, which must be a proposal worth mentioning, but according to marketing manager Sean Kirkpatrick, it will soon begin in Becker, California
Tejava was originally used as on-
Laura Watson of Balzac communications explained.
Crystal Fountain retail in California in a very limited way at the end of 1991 and has since expanded its distribution statuswide.
The company profile of its target audience describes the typical tejavasumer as a person between the ages of 18 and 49 who often go out to eat, healthy-
Conscious, frequent business trips, responsible for society and the environment.
There is speculation that CrystalGeyser will expand the distribution of Tejava beyond California in 1994.
There is no plan for seasoning tea here.
Where are we going from here?
In Joe Simrany\'s words, \"Tea is really in its infancy in this country.
With the expansion of the market, more consumers will choose hot tea.
In the end, in five to seven years, we will see a full increase in tea.
\"So, let\'s say that we all agree on the forecast for sustained growth, and what else can be said about trends that are not ready --to-Ice Tea?
I suggest we look for interesting developments in several areas.
Yes, we should expect further blurring of the traditional category as food and beverage companies introduce new RTD iced tea entries to try to identify with existing names, E. G. g.
Manufacturers of bottled water and coffee.
Let\'s turn to packaging.
After all, it\'s wide-
The mouth of the ball.
Most category leaders are talking about new-sized product launches, especially for larger-sized products.
Others are pursuing plastic and paper packaging to save on shipping costs and win market share based on price.
Predicting that tastes will continue to spread is as risky as predicting \"sustained growth.
\"However, the pace should slow down gradually.
Raspberries and peaches have become standard and new entries will be difficult to compete without them.
The not-sweet RTD tea is not the most successful, but we can see that this tea has won the favor of the upscale crowd, or at least CrystalGeyser hopes so.
With all these activities, if the product line is to be resilient, enough investment in marketing and promotion will become more important than ever.