Issue link: https://read.dmtmag.com/i/763665
STiR coffee and tea 37 US soda consumption is at a 30-year low fol- lowing 11 consecutive years of decline. As sales slip, restaurants and convenience outlets are turn- ing to companies like S&D Coffee & Tea to take advantage of this opportunity by revitalizing and upgrading their tea selections, starting with brew- ing methods. This year John Buckner, vice president of mar- keting at S&D, the largest tea and coffee supplier to US restaurants, commissioned Datassential to take a deep dive into consumer trends that retailers will find useful. In November he shared these results in a webinar hosted by QSR magazine. Compared to other cold beverages, of the 12,000 consumers surveyed, 55% said that fresh brew is "fresher" and "healthier" (55%) and "tastes better" (51%) and is "more natural" and "less processed" (46%) than rivals. Seventy-nine percent said fresh brewed tea is healthier than tea that comes in bottles, and 82% said tea is more natural when fresh brewed. The importance of fresh brew "The most impactful attribute to a successful iced tea program is fresh brew," reports Buckner. Al- most a third (30%) of consumers in Datassential's Buzz Tea & Coffee panel would order more tea if fresh brewed (preferably at the restaurant), he said. If fresh brewed isn't available tea drinkers may settle for iced tea from a soda fountain or a can "but 20% will order a different beverage and an- other 20% order no beverage at all," he said, cost- ing restaurants valuable customers. Tea is so prof- itable that on average, selling a single glass pays for the entire batch (up to 3 gal.). Compared to soda 86% of customers surveyed say fresh brewed tea is more healthy and more natural (86%). Only 8% believe drinking soda is a healthier option than drinking tea. Seventy-three percent of Buzz panel respon- dents either like (32%) or love (41%) iced tea and 59% drink it weekly with 78% reporting they en- joyed a glass in the past couple of weeks. A few are indifferent but almost no one in America dislikes iced tea. In restaurants 7 of the last 10 "away from home" iced tea orders were enjoyed with food, explains Buckner, citing the Datassential survey results. In restaurants 34% of consumers label tea their "go-to beverage" and consider it the "best fit" with fried foods, protein entrees, and Mexican food. Respondents also say iced tea goes well with spicy foods, burgers, pasta, sandwiches, Asian food, soup, salad, and barbecue. Lunch, mid-afternoon, and dinner are the pre- ferred times to drink tea. It is no wonder then that iced teas now ap- pear on 47% of quick serve restaurant menus and 74% of all menus. What do consumers hope to see added to these menus: flavored iced teas are favored by 53% of respondents followed by iced tea blends (45%) and artisan/hand-crafted tea (42%) along with sparkling iced tea (37%) and tea cocktails (36%). These preferences are even more pronounced with millennials who favor flavored iced teas (62%) want more iced tea blends (55%) and artisan teas (54%) and sparkling tea (47%) and tea cocktails (51%), observes Buckner. "Tea is an expanding proposition on menus, both hot and cold, helping to fill the void left by those fleeing from carbonated beverages," shares Jodie Minotto, Mintel's senior global food trends analyst in Sydney Australia. She said the number of US menus that mention tea was up 4% between Q2 2015 and Q2 2016 according to Coffee and Tea – US (November 2016). "Tea is a key beverage in fine dining restaurants. Tea menu incidence was up 11% in that segment in the past year, while menuing of tea drinks increased in quick service restaurants by 7%," she said. Organic is nice but not essential In 2013, Smashburger the 370-store deluxe burger chain, switched to organic, fresh brewed, fair trade certified teas made by Honest Tea, a pioneer in bot- tled organic beverages. Two years later the 6,503-lo- cation Wendy's became the first national fast-food chain to offer organic tea when the company rolled out a tropical flavored green tea, exclusively formu- lated by Coca-Cola owned Honest Tea. Sophisticated specialty teas in bottles, such as Numi Pu'er, Ito En sencha, Harney & Sons, and Republic of Tea Darjeeling and tea pouches from China Mist, Choice Organic Tea, Art of Tea, Rishi Tea, Davidson's, Celestial Seasons, and Yogi have found their way into restaurants. In May 2015 Mintel International found that 70% of consumers believe organics are a healthier option with nearly three in five millennials report- ing the purchase of an organic food or beverage in the previous three months. Tea contains flavo- noids, no sodium or fat and it pairs well with a number of natural and organic ingredients. The Datassentials research showed that 69% of tea drinkers would pay extra for organic iced tea. Organic beverages now appear on 12% of restaurant menus, according to Datassential. The greatest growth is in juices, organic liquor, and tea. Flavor makes a difference Citrus remains the top taste preference. Lemon is considered an ingredient and not a flavor but few consumers draw that distinction. Consumers told Datassentials they prefer fla- vored tea (53%) - not tea that is flavored with syrups. The exceptions are chai and tea lattes like those popularized by Argo Tea (Chai Teappuc- cino) and Starbucks/Teavana. Respondents said that tea should be moderately sweetened (48%) or lightly sweetened (45%) with either sugar