Celestial Seasonings, a specialty tea brand and subsidiary of Hain Celestial Group (Nasdaq: HAIN), announced an expanded product line, updated packaging and a fresh advertising campaign. According HCG, the new initiatives are expanding the tea category by driving coffee drinkers to choose Celestial Seasonings tea, and driving market share growth on the brand.
According to the HCG,Consumers are responding positively to new innovations such as an Energy Tea, which contains as much caffeine as a cup of coffee (95 mg). The company's innovations have been highly incremental to the brand and category with 74% of green and black tea sales from consumers new to those segments and 18% of sales from trade-ups from lower-priced products. New product launches have boasted repeat rates that are 200% higher than similar, competitive launches.
The company recently introduced four industry leading TeaWell blends, including Mood Tonic, Sleep (the first tea with melatonin sold in the U.S.), Laxative and Gut Health (featuring a blend of prebiotics, probiotics and fiber). These new teas with benefits complement the Daily Wellness Core TeaWell blends, which offer a multi-benefit blend of traditionally used herbs and botanicals to help support immune health, digestion, and mental vitality.
Designed by Deutsch, "Taste the World of Celestial Seasonings" is a new ad campaign that illustrates the feel-good benefits of drinking tea in the morning, during the day and before bed. Three video vignettes focus on Celestial Seasonings Green Tea for energy, Vitamin C tea for immune support, and Sleepytime tea to wind down. Through whimsical imagery and narration, the campaign is designed to introduce hot tea as a healthy and flavorful choice.
In response to demographic shifts and changes in consumer behavior, Hain Celestial has also introduced optimally sized and priced packaging. This new, sample-sized packaging comes with five tea bags instead of the typical 20-pack unit, making it better suited for the two-thirds of U.S. households that are three people or less and providing a lower cost-barrier for consumers to try new flavors.
See full press release here.
