RTD Tea in Lithuania

PROSPECTS

Stable demand for RTD tea with increasing demand for low sugar healthier variants

Demand for RTD tea through the off-trade channel continued to be stable in Lithuania in 2019, supported by its low unit price for the dominant format of still RTD tea. However, there is significant demand for healthier variants in line with the rising health trend in the country, leading to consumers searching for less artificial low-sugar products.

Niche of carbonated RTD tea given boost by hype surrounding kombucha

The niche of carbonated RTD tea recorded an impressive performance in both off-trade volume and value terms in 2019, after entering the category in Lithuania in 2018. While the mate-based carbonated German brand Club-Mate first appeared through bars and clubs in Lithuania resulting in growing interest in off-trade sales, offering consumers a low calorie alternative to consumers who do not want to purchase regular carbonates or energy drinks, the entrance of kombucha, which has benefited from a high amount of media interest, has led to the category’s double-digit volume growth by highlighting its perceived health benefits due to containing live bacteria.

Increasing competition over forecast period will lead to lower price for carbonated RTD tea

The hype surrounding kombucha has encouraged a number of local producers to enter as they have noted the opportunity for this growing niche, particularly due to its much higher unit price compared to the still format. This has led to the high number of small or niche producers entering the category, although their presence is mainly limited to on-trade establishments in larger cities where consumers have greater spending power in addition to an openness to experiment with new products.

COMPETITIVE LANDSCAPE

Fuze Tea continues to gain share with expansive portfolio

Coca-Cola HBC Lietuva UAB strengthened its overall leadership of RTD tea in 2019, with its brand Fuze Tea gaining strong share in both off-trade value and volume terms. Fuze Tea offers a wide range of flavoured black and green tea-based drinks, and has developed a lower calorie option to address consumer concerns over the high sugar content of RTD soft drinks, using natural sweetener stevia as one of the ingredients.

Juice producer expands into dynamic carbonated RTD tea with organic offer

SUN365 Kombucha Probiotic Tea Drinks by local producer AJIZ Group UAB entered the category at the end of the review period with a range of three different flavours of Coffee Bean, Melissa Herb and Traditional using organic ingredients. As a juice company with a strong health and wellness positioning, kombucha suits the player’s product portfolio.

Kombucha trend continues to result in new brand launches

Venandi MB entered carbonated RTD tea towards the end of the review period with a wide product portfolio of different flavours for its brand B-Tea Kombucha, which claims to be raw and organic. In 2019, the player extended its flavour offer with three different variants of Lime, Raspberry and Lemon.

Files are delivered directly into your account within a few minutes of purchase.