RTD Tea in New Zealand

PROSPECTS

Still outperforms carbonated

The current value growth in 2017 came from still RTD tea, whilst carbonated RTD tea saw a decline. Lipton remained the leading brand in RTD tea; however, a number of other brands have also made strong inroads, such as Fuze by Coca-Cola Amatil (NZ) and Teza by The Greenstone Drinks Co.

Brand development makes the category interesting

Smaller niche brands within RTD tea continued to develop interesting variants; especially moving more towards functional beverages. The Ti-Tonics range (a niche brand under the banner of The Better Drinks Co) consists of low sugar, a white tea base and grape seeds for high antioxidants, in various fruit flavours.

Tea extract is used to grow other categories

Although RTD tea was a popular category over the review period, tea has also become popular as a base in other beverage categories. 2016 saw Red Seal Natural Health launch a range of black tea bags with added ingredients, which can be brewed either hot or cold; hence consumers can make their own iced tea in large quantities.

COMPETITIVE LANDSCAPE

Unilever dominates with the Lipton brand

Unilever New Zealand continued to dominate RTD tea in value terms in 2017, as the brand Lipton remains synonymous with tea in general. The Lipton RTD tea brand has remained a key driver of growth within the category, with the introduction of developments such as carbonated and light ranges over the review period.

Private label enters the category

Towards the end of 2017, in time for the summer period, private label finally entered RTD tea. Foodstuffs (NZ) launched its mid-priced Pam's brand in four variants in 1.

The on-trade channel is the focus of The Better Drinks Co

The Better Drinks Co has RTD tea brands within its portfolio, although the company has opted to concentrate more on the on-trade channel, rather than off-trade. Although the brand Ti-Tonics is available off-trade, due to its premium quality and niche focus the brand does not have a strong off-trade value share.

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