RTD Tea in Uruguay

PROSPECTS

RTD tea remains unfamiliar concept to consumers, finds difficulty gaining traction

While RTD tea saw continued growth in 2019, the category is not developed in the country, and thus performance was distorted by its negligible base. This category remains niche, as RTD tea, which extends hot tea flavours into an ice tea preparation, is a concept that remains unfamiliar to Uruguayan consumers.

High prices limit potential consumer base

Although the category has recorded reasonable growth since its emergence, the consumer base for RTD tea remains very small. While it can be considered a healthier and lighter option than other soft drinks, higher unit prices mean such products tend to appeal only to more affluent consumers.

Product range needs to target greater variety of consumers

There were only a few manufacturers in RTD tea towards the end of the review period. However, there were major price differences between brands, although all were more expensive than most other soft drinks.

COMPETITIVE LANDSCAPE

Larger players gain share at expense of smaller competitors

Leopoldo Gross & Asoc SA dominates RTD tea in Uruguay with it its Arizona Ice Tea brand, and saw a marginal value share gain in 2019. Despite being more expensive than other brands, Arizona is perceived to be a good quality product.

New entrants fail to cause a stir in tea

Frigorífico Modelo entered RTD tea in 2016 with its Dayrico Taste Tea brand. The company launched two flavours, with more expected to be introduced over the coming years.

High levels of marketing investment needed to increase awareness

Others’ volume is driven by small imported brands, such as Frigorifico Modelo with Dayrico brands, and Voelkel offering organic options. As a small category, there is room for new companies.

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