RTD Tea in Sweden

PROSPECTS

Still plenty of room for growth despite strong dynamism over the review period

RTD tea recorded by far the strongest retail volume growth within soft drinks over the review period and is expected to continue to do so over the forecast period. Although growth in 2018 was particularly strong due to the hot summer, this was not the main reason for the overall strong performance of RTD tea over the review period, with much interest and strong sales generated by the entrance of Fuze Tea in 2018, which supported overall growth.

New flavours attract consumers to RTD tea

RTD tea continued to be dominated by black-peach and black-citrus flavours in 2019, with most lines offering these flavour combinations, including Kingsway, ICA Iste, Freeway and the leading brand, Pfanner Ice Tea. However, the introduction of Fuze tea in 2018 witnessed new flavours becoming available, including green - mango chamomile and black - peach hibiscus, with more being added in 2019.

Carbonated RTD tea to remain a niche

Carbonated tea remained a niche in 2019 and is set to remain so over the forecast period. The category is largely made up of kombucha tea, which appeals to a niche group of consumers, with most Swedes preferring still variants.

COMPETITIVE LANDSCAPE

Piwa Food maintains its lead

Piwa Food lost significant retail value share to recent entrant, Coca-Cola Enterprises Sverige, in 2018. However in 2019 it was generally able to consolidate its share and lead, as Fuze Tea continued to take share, but this time from smaller players.

Private label remains significant in RTD tea despite losing share in 2019

Sales of private label RTD tea remained strong in 2019, despite private label losing share, primarily to Fuze Tea by Coca-Cola Enterprises Sverige. Discounters with foreign roots (German Lidl and Danish Netto) are familiar with the concept of RTD tea and began selling their own ranges (Freeway, previously Pataya Ice Tea) and Kingsway (previously Fersken) many years ago.

Players active in new product development

Players were active in new product development in 2019. Coca-Cola Enterprises Sverige launched Honest in RTD coffee, RTD tea and juice, following the trend of cross-category launches.

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