RTD Tea in Azerbaijan

PROSPECTS

Macroeconomic improvement supports the growth of RTD tea

RTD tea saw strong growth in 2018 in both volume and value terms, driven by the improved macroeconomic situation and the promotion carried out by local manufacturers. Economic resurgence and the relatively improved disposable incomes of consumers have supported growth in both outdoor entertainment and off-trade sales of RTD tea in Azerbaijan.

Amplified tourism supports the faster on-trade growth of RTD tea compared to off-trade sales

Over the review period, state authorities strongly promoted tourism in Azerbaijan, using different campaigns and tools to attract more visitors to the country. The actions undertaken by state bodies have brought positive results, attracting more tourists from both neighbouring and far countries.

Modern retailing set to support RTD tea’s performance in the forecast period

In 2018, RTD tea was available through both traditional and modern grocery retailers. Modern retail channels, however, saw a faster increase during the year, mainly attributed to the rapid increase in the number of modern outlets.

COMPETITIVE LANDSCAPE

Azersun Azerbaijan Trading Co remains the leading RTD tea player in 2018

The company performed well in 2018 on account of its good relationships with modern grocery retailers, which are actively gaining ground in packaged food distribution in Azerbaijan. The success of Azersun Azerbaijan Trading Co is due to the high recognition of the Lipton Ice Tea brand, which is widely distributed by the company through modern and traditional grocery retailers.

RTD tea becomes more saturated with consumer base growth

International brands lead RTD tea in Azerbaijan due to the immaturity of local manufacture. Local brands continue to be avoided by local consumers due to the typically lower quality of local food products.

RTD tea giants dwarf new product launches in 2018

During 2018, no significant nor notable new product launches were seen within RTD tea in Azerbaijan. On the one hand, local consumers prefer well-known, established brands, such as Fuse Tea, Lipton Ice Tea and Nestea.

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