RTD Tea in New Zealand

PROSPECTS

New Zealanders continue to embrace kombucha trend

Rising demand for kombucha products continued to drive the expansion of RTD tea in 2019. These fermented tea-based drinks, which contain probiotic cultures and are renowned for their digestive benefits, have become increasingly popular in recent years in line with rising health-consciousness among New Zealanders.

RTD green tea products perform well but face external threat

RTD tea products made with green tea continued to perform well in 2019. As New Zealanders become better educated about health and nutrition, they are increasingly cognisant of the specific benefits of green tea, particularly its antioxidant properties.

Consumers show growing preference for reduced sugar options

As is the case across soft drinks in New Zealand, rising health-consciousness among consumers has bolstered demand for reduced sugar products in RTD tea in recent years. The launch of several such products during the latter half of the review period revitalised the category, and ensured that it continued to gain popularity among consumers migrating away from traditional carbonates in 2019.

COMPETITIVE LANDSCAPE

Leading player Unilever continues to expand its Lipton range

Unilever maintained its strong lead in RTD tea in 2019 thanks to the success of globally renowned brand Lipton. In addition to enjoying an early mover advantage and wide distribution, Lipton has a reputation for being one of the most innovative brands in this category.

Lion acquires Teza from Greenstone Drinks

Leading alcoholic drinks company Lion New Zealand moved to expand its soft drinks portfolio in 2019 with the acquisition of RTD tea brand Teza from Greenstone Drinks Co Ltd. Lion intends to leverage its existing distribution and marketing resources to broaden the availability of Teza and increase awareness of the brand among consumers over the forecast period.

Kombucha brand Lo Bros well placed to gain ground in RTD tea

Though its off-trade volume and value shares remained low in 2019, kombucha brand Lo Bros is expected to gain ground in RTD tea over the forecast period. The brand offers an extensive range of flavours that includes variants such as Ginger & Turmeric, Raspberry & Lemon, Green Apple, Peach & Ginger, Feijoa, Passionfruit and Ginger & Lemon.

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