Cool or brisk, RTDs are making a splash in the tea industry.
Whether it's Nestea Cool, Lipton Brisk or Tetley Splash, Ready To Drink Teas are stacking momentum in the race for cold drink sales. To be specific, cold fill process (as opposed to hot fill) is the fastest growing category in RTD RTD returned to duty (US DoD)
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RTD Real-Time Data teas. In 1992, this writer reported the RTD tea niche was a $600 million category. Today, it's close to $2 billion, and despite a dip in sales in 1994, still averages an annual growth rate of approximately 60%. Those figures represent the U.S. Just think of the potential exploring worldwide markets!
The hot story in the industry, according to according to
1. As stated or indicated by; on the authority of: according to historians.
2. In keeping with: according to instructions.
3. John Sicher, Publisher/Editor, Beverage Digest, is the cold fill process.
Sicher reports, "Cold fill is sold like soft drinks and are therefore displayed in the soft drink sections in all distribution channels." The following figures were reported by Sicher and are based on data from August 1995- August 1996:
The two categories indicating the most potential are the two cold filled teas, Lipton Brisk and Nestea Cool. While distribution plays a key part in this success, the cold fill process enables the teas to be packaged in cans and sold in multiple units. Coca-Cola Co. distributes Nestea Cool in partnership with Nestle Beverage Co., while Pepsico, in partnership with Unilever's Thomas J. Lipton Co., is the distributor of Lipton Brisk. Snapple, which was a industry leader early on, is in third place, but maintains a strong position in convenience stores The following is a list of convenience stores organized by geographical location. Stores are grouped by the lowest heading that contains all locales in which the brands have significant presence. and gas stations. In addition to Snapple, other premium tea leaders are Arizona, Mistic and Celestial Seasonings Celestial Seasonings is a tea company based in Boulder, Colorado, United States that specializes in herbal tea but also sells green and black tea (as well as white and oolong blends). They account for over $100,000,000 in Herbal Tea Blends Sales in the United States annually. (iced herb teas). As of this report, Snapple, Arizona, Mistic and Celestial Seasonings produce single serving units in glass bottles using the traditional hot fill method.
Leading the "packs" is Lipton Brisk, a product from the Pepsi-Lipton Tea Partnership. According to Gary Yoshioka, marketing manager for Lipton Brisk, the brand is double the size of Nestea Cool. Riding on the tea's 100 year brand accomplishments, Brisk achieved recognition the moment it filled the Lipton can. With the Pepsi partnership, the team has been able to design products and create taste preferences for their target market, adults 18-34. Their focus, reported Yoshioka, is on communicating that Brisk is a "refreshment experience." Sources at Pepsi position Lipton Brisk as an alternative to soft drinks; not everyone wants the same taste, so Lipton Brisk offers refreshing taste without the carbonation. To communicate their message, the Partnership has launched television commercials and will add more promotional programs in 1997. Currently, there are six Brisk flavors available: Natural Lemon, Diet Decaf with Lemon, Raspberry raspberry, name for several thorny shrubs of the genus Rubus of the family Rosaceae (rose family) and for their fruit (see bramble).
Any of many species of fruit-bearing bushes of the genus Rubus in the rose family. Black, Tangerine tangerine: see orange.
Small, thin-skinned variety of the mandarin orange species (Citrus reticulata deliciosa) of the rue family (citrus family). Twist, Caribbean Cooler (peach and guava guava (gwä`və), small evergreen tree or shrub of the genus Psidium of the family Myrtaceae (myrtle family), native to tropical America and grown elsewhere for its ornamental flowers and edible fruit. flavor), and Pineapple pineapple, common name for one member of and for the Bromeliaceae, a family of chiefly epiphytic herbs and small shrubs native to the American tropics and subtropics. Coconut. Like soft drinks, Brisk comes in the same sizes: 12 pack, 24 pack, 6 pack and 2 liter liter, abbr. l, unit of volume in the metric system, defined since 1964 as equal to 0.001 cubic meters, or 1 cubic decimeter. A cube that has each of its edges equal to 10 centimeters has a volume of 1 liter. The liter is equal to 1.057 liquid quarts, 0. take home bottles. Consumers find Brisk in the same outlets as Lipton Brew and Fountain Beverages throughout the U.S. and Canada.
Brand Market Share Percent Change (Aug. 1995-96) Lipton Brisk 28.6 + 28% Lipton Brew 13.1 - 16.9% Nestea Cool 14.6 + 99.7% Nestea Hot Fill 6.1 - 29.5% Snapple 19.8 - 7.2% Arizona Tea 9.4 - 12.1%
According to Scott Jacobson Scott Jacobson (b. 1977) is an American comedy writer and winner of four Emmys for contributions to The Daily Show With Jon Stewart. He has also written for The 78th Academy Awards, Robert Smigel's "TV Funhouse" cartoons, and the Adult Swim show "Squidbillies. , spokesman for The Coca-Cola Co. in Atlanta, Georgia, Cool from Nestea tripled in volume in 1995 and was among Coca-Cola USA's fastest-growing brands. In June, 1996, The Coca-Cola Co. announced an improved Cool from Nestea product formula, new plastic 1-liter and 20-ounce packages, a new positioning, and an advertising campaign featuring the tag line tag line also tag·line
1. An ending line, as in a play or joke, that makes a point.
2. An often repeated phrase associated with an individual, organization, or commercial product; a slogan.
Noun 1. "made different, made cold, to cool you to the core." Currently, Cool is secure in its number two spot. Television spots, radio spots and regional print advertising support the brand. Jacobson further explained that teas aren't brewed with the cold fill process, thereby creating less of a traditional "tea taste," which appeals to the younger generation generally preferring soft drinks over tea drinks. Distinguishing between the two process, Jacobson added "hot fill has more brewed tea, which is more expensive to produce."
In March, 1996, Tetley launched their cold filled product called "Splash." Two primary markets are Ohio and Texas, with the northeast providing developmental markets. Splash is distributed through independent bottlers and will have a national rollout although no date was scheduled as of this report. When asked about the increase in cold filled sales versus hot filled, Linda Taylor, vice president/marketing RTD Beverages for Tetley responded, "The real driver for cold fill is their packaging and distribution. While hot fill has been primarily sold in single serving units, cold fill is packaged in 12 or 24 paks and in vending machines vending machine, coin-operated, automatic device for selling goods. Many vending machines are capable of making change, and some of the more sophisticated ones accept paper money or credit cards. ." Taylor said the market for cold filled is not necessarily tea drinkers, but people who are looking for Looking for
In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with. a refreshing beverage, an alternative to soda. Splash's target market is 18-35 as well as those who are 45ish.
Modern technology may be the reason for RTD tea's current popularity, but according to Robbin McCool of Cookbook (programming) cookbook - (From amateur electronics and radio) A book of small code segments that the reader can use to do various magic things in programs.
One current example is the "PostScript Language Tutorial and Cookbook" by Adobe Systems, Inc (Addison-Wesley, ISBN Brands, Inc., "ready-to-drink" tea has been used at home for generations in the form of the old Teabrew, a concentrate grandmother used to make up so she wouldn't have to steep tea for every meal. Today, Cookbook Brands, Inc., manufacturers a tea concentrate, which is sold to companies to make RTD teas. According to company history, liquid tea has been around 50-75 years. Restaurant personnel brewed the tea concentrate in advance, to be added to water during busy times of the day. Several small regional beverage manufacturers began mixing instant tea to mimic the new liquid concentrate trend. By the mid-1970's liquid tea was being sold by distributors to the foodservice sector and that is when the liquid tea industry officially began. Since then, and more specifically 1976, tea concentrates have undergone many remarkable changes and applications.
McCool is enthusiastic about the cold fill process, which utilizes both a tea concentrate or powder. "Procter & Gamble has educated the public that a concentrate is more economical than a powder," said McCool. "Using powder to make tea calls for preservatives preservatives,
n.pl food additives that hinder spoilage by reducing the growth of microorganisms. Include nitrates and nitrites, benzoates and sulfites, and many others. ; using lemon flavor helps to offset any preservative preservative
Any of numerous chemical additives used to prevent or slow food spoilage caused by chemical changes (e.g., oxidation, mold growth) and maintain a fresh appearance and consistency. Antimycotics (e.g. taste," he continued. "A concentrate is much more economical for everyone because it is sold by the gallon while tea powder is sold by the pound. Furthermore, a liquid is based on flavor, not solids," McCool continued. The industry taste standard seems to be lemon flavored and sweet. While Cookbook Brands has a number of private label customers, they have a retail tea concentrate marketed under the name "Ready Bru," sold in supermarkets. Inquiries from specialty tea companies indicate RTD teas are going more upscale, observes McCool.
He foresees more private label RTD's from specialty companies who are expanding their bulk and packaged business into the liquid category. As if he is reading the tea leaves, McCool's forecast is to look for gourmet teas with names like Darjeeling and Blackberry blackberry, name for several species of thorny plants of the genus Rubus of the family Rosaceae (rose family). See bramble.
blackberry Sage to be appearing in RTD's on supermarket shelves. Fortunately, there is market demand for quality products with versatile applications. With several national brands entering this market, the industry is becoming rapidly educated. Chain managers and foodservice distributors A foodservice distributor is a company that provides food and non-food products to restaurants, cafeterias, industrial caterers, and hospitals and nursing homes.
A foodservice distributor functions as an intermediary between food manufacturers and the foodservice operator are demanding specific applications of custom packaging and concentration levels, noted McCool. Certainly, if a company that manufacturers a key ingredient for a growing product category is producing its own retail brand, perhaps there is plenty of stacking room for RTD's on shelves, in fountains and vending machines all over the world.
Suzanne Brown is a coffee and tea marketing consultant based in Atlanta, Georgia at SJB SJB San Juan Basin
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