Tea in Brazil

PROSPECTS

Tea continues to grow from smaller basis through health positioning

While Brazil is majorly a coffee-drinking nation, tea volume sales continue to grow in line with review period performances, albeit from a small base. Tea volume sales in Brazil are particularly driven by fruit/herbal tea and consumers’ understanding of the benefits of each tea.

Growing number of tea specialist stores is not enough to fuel on-trade volume

Even though many brands are investing in opening tea specialist stores – attempting to mimic the success of coffee specialist stores in Brazil – this has not been enough, so far, to boost on-trade volume sales. These continue to register positive growth, but lower than the retail performance, especially because of the lack of a strong tea-drinking culture.

Slimming teas struggle to resume growth pace

Despite Brazil’s high levels of overweight population and a general interest in maintaining body shapes, slimming teas are not set to register pre-crisis growth level until 2024. This has to do mainly with consumers’ perception of these products not being natural, therefore benefiting fruit/herbal teas which actually offer these benefits, rather than a manufactured option specific for that purpose.

COMPETITIVE LANDSCAPE

Leão Junior tries to innovate through instant tea

Leão Junior maintained its leading positioning in the market in 2019. The brand continues to invest in innovation, such as its launch of tea pods in 2018, that are compatible with the Nespresso system.

Desinchá consolidation through flavours variety

Growing quickly from a small base through a clear functional positioning and a blend of fruit/herbal ingredients, Desinchá expands its portfolio through the launch of new flavours: pineapple with Sicilian lemon, dragon fruit with blueberry and apple with cinnamon. More than that, the brand also launched a “nocturnal version”, without green tea, and a cosmetics line with tea as an ingredient, reinforcing its brand positioning of being functional.

Regional players maintain growth through added value

Low entry barriers continue to open space for new players in the market, especially through added-value offerings and differentiation attributes and some are even attaching brand positioning with ethical values. The Feminist Tea, for example, is a niche brand from Sao Paulo city, which offers tea blends named after important feminist women (including Frida Kahlo, Simone de Beauvoir, Clarice Lispector, Lady Gaga, Beyoncé and Michelle Obama).

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