RTD Tea in New Zealand

PROSPECTS

Kombucha revitalises RTD tea

Over the review period, Unilever New Zealand Ltd was unsuccessful with its launch of carbonated RTD tea, and, as a result, the category overall declined in 2015 as the company pulled out of carbonated RTD tea. However, in 2016 there was a resurgence in carbonated RTD tea with the kombucha trend, a fermented tea-based drink that is lightly effervescent.

“Lite” variants offer healthier alternatives

Unilever New Zealand Ltd, after dropping its carbonated RTD tea in the review period, needed a way to expand its range. “Lite” variants were a good way to increase sales, as they offered a healthier alternative to regular RTD tea, as these generally contained high amounts of sugar.

Tea as a base used in other categories

Although RTD tea drinks are well established, it was noted that tea as an ingredient in other beverage types was a growing trend, particularly to market the antioxidant benefits. This has created several drinks using tea in combination with other ingredients, although these do not fall under the RTD tea category.

COMPETITIVE LANDSCAPE

Unilever continues to lead RTD tea

Unilever New Zealand Ltd continues to be the clear leader in RTD tea, with its Lipton brand accounting for almost half of total sales. This brand is an established hot tea brand and therefore has strong credence in cold RTD tea.

Private label enters RTD tea

Foodstuffs NZ Ltd launched a range of private label RTD tea in late 2017, although it did not perform exceptionally well in 2018. The range was launched under the mid-priced brand Pam's and the drinks are labelled as Natural Brewed Ice Tea – available in Peach, Mango, Lemon & Lime and Cranberry.

Frucor Suntory expected to grow thanks to kombucha

Kombucha brands have become widely recognised in RTD tea, with the brand Kombucha Wonder Drink being one of the first to introduce this type of carbonated fermented RTD tea variety in the review period.

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