As a group, the c-store industry has done an excellent job of positioning coffee programs as high-quality alternatives to much-more-expensive coffee houses. Few, though, have given the same thought to their hot tea offer.
But, according to a recent study by Packaged Facts, tea's image as an innovative - but accessible -- beverage that is good tasting, good for you, and budget friendly has kept tea profitable, with 2-percent annual gains in 2008 and 2009, according to "Tea and Ready-to-Drink Tea in the U.S.: Retail, Foodservice and Consumer Trends," by market research publisher Packaged Facts.
Over the next several years, the research firm predicts, tea sales will return to the double-digit gains experienced prior to the recession, particularly as additional research solidifies tea’s healthy and functional properties.
Packaged Facts estimates the U.S. market for tea sold through retail and foodservice channels will reach $9 billion this year and forecasts a 5-percent increase in 2010. Steadily rising annual percentage gains are projected through 2014, when growth will reach 10 percent and sales will exceed $12 billion.
Among the many new product introductions in the tea category: exotic flavored teas, tea and fruit infusions, and premium loose tea bags, which are at the forefront of innovations in both the retail and foodservice arenas.
"Tea’s healthfulness is still, of course, the beverage’s primary appeal, but in the current market environment consumers are increasingly recognizing good quality, customized tea as a comforting, affordable premium beverage splurge," notes Don Montuori, publisher of Packaged Facts.
Other factors driving the market, especially relevant to c-store operators: the greater involvement of the country's mega beverage companies; a greater emphasis on tea in the foodservice channel with the expansion of specialty brews; hybrid tea beverages crossing over into sparkling water, energy drinks and superfruit juices and the additional penetration of RTD teas in the c-store channel.
To someone who gets through the work day alternating Diet Pepsi with hot green tea, this study is spot-on.
-- Barbara Grondin Francella
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