RTD Tea in Ecuador

PROSPECTS

RTD tea has lost its healthy image

The RTD tea category in Ecuador generally offers heavily sweetened products. When launched, RTD tea was marketed as a healthier option to carbonates or even juice drinks and nectars, with consumers perceiving it to be a healthy product because of its tea content.

Consumers still prefer traditional flavours

Traditional flavours continued to dominate RTD tea in 2018. Lemon/citrus and peach remained the most popular.

Launch of healthier offerings expected to try and stem the category’s decline

Over the forecast period the category is expected to witness the launch of healthier products, which are currently almost non-existent. It is possible that the category could start to recover if manufacturers are able to offer more natural products at affordable prices, which are then supported by a strong distribution network, thus being able to compete with beverages such as flavoured bottled water.

COMPETITIVE LANDSCAPE

Coca-Cola de Ecuador continues to dominate RTD tea

Coca-Cola de Ecuador continued to dominate RTD tea in 2018. While all other players in the category saw their value sales decline, Coca-Cola de Ecuador benefited from its own sales remaining stable, largely thanks to its strong distribution network.

Innovation focuses on new flavours and low sugar formulations

In 2018, manufacturers focused their innovation efforts on new flavours, particularly of exotic fruits. To mitigate the impact of the Special Consumption Tax (ICE) on sugary beverages, they also focused on reformulating some of their products to reduce their sugar content, for example by using natural sweeteners such as stevia.

Sales of carbonated RTD tea currently negligible

Carbonated RTD tea remained a very small niche in Ecuador in 2018 as few brand owners offered this type of product. However, in flavoured bottled water, slightly carbonated variants proved successful.

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