RTD Tea in Ecuador

PROSPECTS

RTD tea has lost its healthy image as mandatory labelling makes sugar-content clear

RTD tea in Ecuador generally offers products with a substantial amount of sugar. 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.

Despite having a range of flavours available, traditional flavours drive sales of RTD teas

Despite flavour innovations, traditional flavours continued to dominate RTD tea in 2019. Flavour such as lemon, citrus and peach remained the most popular choice, driving sales for RTD tea.

Healthier offerings set to expand over the forecast period, being a potential growth opportunity for RTD tea

In 2019, consumers were demanding healthier options from RTD tea. This has seen a host of new RTD tea offerings enter the forecast over the end of the review period, which may boost overall sales and recovery of RTD teas.

COMPETITIVE LANDSCAPE

Fuze Tea benefits from the strong distribution network Coca-Cola de Ecuador provides

Coca-Cola de Ecuador continued to lead RTD tea in 2019. Even though all players in RTD lost sales in 2019, Coca-Cola de Ecuador maintained its leadership, with its RTD tea offering of Fuze Tea.

Players compete through flavour innovations and offering low sugar formats

In 2019, manufacturers focused their innovation on flavours and reformatting their current offerings to include exotic fruits. To mitigate the impact of the Special Consumption Tax (ICE) on sugary beverages, players are being forced to reformulate part of their portfolios, to reduce sugar levels and use natural sweeteners, such as stevia and fructose.

New players align themselves to the health and wellness trend, using natural ingredients to compete in the landscape

In 2019, the launch of new domestic offerings within RTD tea aligned themselves with the health and wellness trend. Most of these players were small and mid-sized players and took the opportunity to offer healthier products made from natural ingredients, such as guayusa, chamomile and borojó.

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