Brewing tea sales
Sales of ready-to-drink teas may have slowed, but new introductions will continue to fuel the category. A recent Mintel report forecasts a sales increase of 18% from 2012 to 2017 for the segment.
Lemonade-and-tea drinks — sometimes called “Arnold Palmers” — have become more popular with consumers. Arizona Beverage Co.’s Arnold Palmer line had strong growth last year, and Snapple and Sweet Leaf both launched lemonade-and-tea beverages.
Arizona leads the tea category with a 16% market share followed by Pepsi Lipton Tea Parnership, which has a 14% share. Dr Pepper Snapple Group’s Snapple brand holds third place. Sales of premium teas outpaced the category with double-digit growth, possibly because they contain less sugar. Mintel expects teas with less sugar and those not containing high fructose corn syrup to perform best in the future.
Coca-Cola is gearing up to build brand share for Fuze since the company will lose distribution rights to Nestea once Nestle Waters North America takes back distribution rights to the brand later this year. Coke recently introduced three Fuze teas: a lemon tea, a honey and ginseng green tea and a half-lemonade-half-tea. The one liter bottles are priced at 99 cents, putting the brand in direct competition with Arizona’s popular 99-cent tall segment.
Hansen Beverage Co. also plans to ramp up its fast-growing Peace Tea with new packaging later this year. The brand has seen sales more than double in early 2012.
The article above is part of the DSN Category Review Series. For the complete Beverages Buy-In Report, including extensive charts, data and more analysis, click here.
GMCR, DPS unite Snapple with Keurig single-cup brewing systems
WATERBURY, Vt., and PLANO, Texas — Green Mountain Coffee Roasters announced that Dr Pepper Snapple Group’s Snapple iced teas soon will be available in K-Cup and Vue packs for GMCR’s Keurig single-cup brewing systems.
GMCR and DPS said Snapple K-Cup pack iced teas will be offered in a variety of at-home and away-from-home channels for Keurig brewer consumers in the United States and Canada in spring 2013. Vue packs will debut later next year.
"We are always looking for innovative new ways to bring our great brands to our consumers, and we think the Keurig brewing system will do exactly that with Snapple," DPS SVP brand marketing Regan Ebert said. "Through our relationship with GMCR, we’re making Snapple teas available in an exciting new format that will introduce us to new occasions and bring new fans to the Snapple trademark."
GMCR president and CEO Lawrence Blanford added, "We’re happy to welcome Snapple to our family of Keurig brewed iced beverages — a leader in the premium ready-to-drink tea category. The world’s most popular beverage brands continue to see value in aligning with our Keurig single-cup brewing systems and, in turn, further our effort to offer unsurpassed choice to meet a broad range of consumer taste preferences for every beverage occasion. With the addition of Snapple to our family of valued partners and brands, we’re thrilled to make available an even wider selection of well-known, quality brew over ice beverages to choose and enjoy at the touch of a button."
ValueCentric, American Pharmacy Alliance enter collaboration
ORCHARD PARK, N.Y. — ValueCentric and the American Pharmacy Alliance have entered a collaboration, which will connect pharmaceutical manufacturers with independent pharmacy data.
ValueCentric and the APA — a technology partnership of leading pharmacy software companies that provide software and system support services to more than 12,000 independent and small chain pharmacies throughout the United States — will offer on-demand data, reporting and analytics through ValueCentric’s healthcare intelligence platform, known as ValueTrak. The supply channel program will deliver data and analytics associated with independent store-level prescription data from participating stores among APA’s affiliated pharmacies, as well as deliver insights that pharmaceutical manufacturers can use to better focus supply chain operations, maximize marketing efforts, develop accurate, predictive financial models and develop a truly pragmatic product lifecycle plan.
The companies said that through their partnership, manufacturers can build structured and highly-targeted sales and marketing plans, as well as an optimal product lifecycle plan via a daily stream of empirically-supported evidence.
"ValueCentric is thrilled to be working with the American Pharmacy Alliance and its members," ValueCentric founder and CEO Dave Janca said. "This program breaks new ground in the area of near real-time data services, channel transparency and store-level analytics. The views into the independent retail pharmacy environment will provide the manufacturers the granularity of data that’s critically important to their planning and their efforts to be more proactive in support of community pharmacy. In addition, ValueCentric will be establishing a comprehensive data repository for the APA membership to improve their knowledge of the broader marketplace."