Anheuser-Busch InBev & Starbucks - Teavana - The Facts

Late yesterday, Anheuser-Busch InBev's US unit Anheuser-Busch said it will team up with Starbucks to launch an RTD tea under the Teavana brand across the US.

The brewer will produce, bottle and distribute the new product for Starbucks. Here, just-drinks takes a closer look at RTD tea and the Teavana brand:

The category

• In 2015, the RTD tea market in the US was worth US$5.1bn in terms of retail sales, according to SIG analyst Pablo Zuanic
• The sector grew by 3% in 2015, according to Euromonitor
• The US Tea Association says 80% of tea consumed in the country is iced tea
• The main players in the US RTD tea market are Unilever, AriZona Beverage Co, The Coca-Cola Co and Dr Pepper Snapple, with 70% of the total RTD revenues, says Zuanic
• The main brands are Arizona, with 21.2% market share, Lipton and Brisk Iced Tea (both from the joint venture between Unilever and PepsiCo), with 20.7% and 10.6% share, respectively, Gold Peak (The Coca-Cola Co) with 7.6% market share, and Snapple (Dr. Pepper Snapple Group) with 7.4% market share, according to Zuanic
• Starbucks brands Tazo and Teavana have "virtually no presence" in the US RTD tea market, he added

Teavana

• Starbucks acquired publicly-traded Teavana for US$620m in 2012 
• Teavana operates around 350 speciality stores
• The company's range includes teas, tea-ware and wellness teas
• The brand is available in Starbucks in the US and Canada
• Between March 2015 and March 2016, Starbucks said it sold around $1bn worth of Teavana tea beverages in the US, representing 11% growth in year-over-year sales
• Starbucks and Anheuser-Busch plan to introduce new Teavana RTD non-alcoholic tea beverages across US channels
• Teavana RTD is expected to launch in the first half of next year

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