Market research
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.
Starbucks CEO Howard Schultz and Anheuser-Busch InBev CEO Carlos Brito raise an iced tea to their new Teavana RTD venture
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
Sectors: Product launches, Soft drinks, Water
Companies: Anheuser-Busch InBev
