How Operators Can Leverage Away-From-Home Tea Sales

Away-from-home tea consumption has grown by at least 10 percent annually over the last decade, according to "Tea Fact Sheet,” Tea Association of the USA.  This presents a huge opportunity to leverage growth in the vending and foodservice channels.  But, not all tea drinkers are looking for the same attributes in their tea.  The Coca-Cola Co. has created a broad portfolio to make sure we have a product that meets the needs of your consumers. 

Tea consumers can be categorized by their primary need state when drinking tea.  According to Homescan's Total U.S. Tea A&U Study in February 2011, 52 percent of tea drinkers are looking for “refreshment." Tea can be a substitute for other beverages.  Most of the consumers in this category are multicultural, young, single males who are seeking variety in their beverage selections.  The Tea A&U Study also reports 39 percent of tea drinkers are looking for “authentic taste.” They seek fresh brewed taste in bottled tea beverages.  A smaller percentage of tea drinkers, 20 percent, are looking for health and wellness benefits from their tea.  The consumers in this category tend to be well educated and high income, according to the study.

FUZEÒ Iced Tea serves the large and profitable refreshment category.  There are a variety of flavors to meet the needs of this variety-seeking consumer. This mega-brand now offers flavored iced teas as well as juice drinks.  These products are attractively priced which is an added appeal to vending machine customers.

Gold Peak Tea delivers an authentic home-brewed taste.  This category drives 35 percent of all RTD (ready to drink) retail dollar growth, according to the Nielsen CR May 2011 data. Honest Tea, which is certified organic, Fair Trade certified and just a tad sweet is another important offering to vending and foodservice operators.

Capturing some of the foodservice tea sales would be very sweet in the vending market. The tea category experienced an 8 to 10 percent compounded annual growth rate (CAGR) between 2008 and 2009. Overall, the consumption of tea has grown by nearly one million servings since 2006, according to CREST. The tea Category excludes gourmet coffee, tea, donut and retail categories. With this type of growth, tea appeals to consumers across all age segments and becomes an exciting category for growth in many distribution channels.

To learn more, visit Coca-Cola Vending Solutions or contact your Coca-Cola representative.