STiR coffee and tea magazine

STiR coffee and tea 23 BrandIndex. The "brand intelligence service" focuses on public perception of brands across many sectors and nations, providing insights to industries such as food and beverage. Its findings on iced tea are based on polls conducted during the last two years with adults 18 to 34 years of age. In January 2016, 23% of millennials said they'd consider buying iced tea the next time they purchased a beverage. That percentage is now down to 18%. Brands associated with high sugar content or high-fructose corn syrup, colorings or artificial flavorings are seeing the quickest retreat from custom- ers, as younger Americans increasingly seek out healthier ways to quench their thirst, especially in recent months, says the report. "Lipton, Nestea, Crystal Light, and Snapple have been trending downward in this metric from the end of October [2017] through the present. Only Arizona Iced Tea has had a relatively stable trajectory," the report states, noting that Crystal Light—an iced tea drink mix containing artificial flavors, preservatives, and red, yellow, and blue food dyes—has been hit the hardest, dropping a full eight percentage points over the past two years. IRI, a global provider of market information solutions, for the 52 weeks ending Dec. 3, 2017, unit sales of instant tea mixes are down by 7%. More healthy options such as Peace Tea, an RTD tea beverage that contains no artificial flavors or colorings (it does contain sucralose artificial sweetener) are bucking the downward trend; its unit sales rose 30% last year. In the refrigerated (RFG) teas category, IRI figures show a relatively modest 3% increase in unit sales from the previous year, mainly boosted by healthier brands such as Milo's Tea (up 18%) and Lipton Pure Leaf (up 36%). Malls Ease Way for Tea Shops The Eastview Mall in Victor, NY is one of several mall operators to successfully attract local tea shops to replace 379 Teavana locations that are closing as Starbucks withdraws from that retail segment. Happy Earth Tea received an offer it could not refuse said founder Niraj Lama. In February the shop opened a 1,000 sq. ft. location in the mall. Managers there threw into their offer expensive sinks, water filters, counters, lighting, shelving, and display racks abandoned by Teavana. This greatly reduced the expense of build out. Teavana locations in the best malls bring in an average $1,000 per square foot of retail space, grossing up to $1 million a year. Eastview Mall in Victor, New York is situated in an upscale region near wine-famous Finger Lakes and owned and operated by Wilmorite Management Group, the indoor mall first opened in 1971. It houses more than 30 stores unique to the market including Apple, Brooks Brothers, Crabtree & Evelyn, Eddie Bauer, L.L. Bean, LEGO, Michael Kors, TUMI, and Vera Bradley. There are five anchors including a Von Maur and a Regal Cinema along with top restaurants like P.F. Chang's China Bistro. Lama, 44, a native of Darjeeling, India, started his tea business online in 2011 after relocating to the U.S. He opened his first brick and mortar shop in 2016 at 650 South Ave., in the South Wedge neighborhood. He calls the Leaf Tea Bar a "sober pub" - a hangout for locals who want a taste of fine tea. "Initially there was some hesitation. I was not sure the mall was a place for small independents, but we were aware that Teavana was really doing well. The mall approached us because of our local reputation. They wanted to keep tea available for customers and did not want someone else to go in there," he said. "I think we kind of fell into it," he said, adding, "Without the Wilmorites actively courting and supporting us with terms favorable for a small independent shop this would not be possible." – By Dan Bolton APAC Tops RTD Growth Global ready-to-drink (RTD) tea and coffee sales are expected to experience a combined annual growth rate (CAGR) of 9% through 2021, according to a new report by global technology research and advisory company Technavio. Fast-paced lifestyles of consumers are one of the major factors driving the market. Consumers are increasingly looking for RTD products that fulfill their daily nutrition requirements and can be consumed on-the-go. Owing to this, RTD products are seeing a dramatic rise in popularity among consumers, says the report. Other key findings include: * In 2016, the RTD tea segment dominated the market by occupying more than a 75% share. * In 2016, APAC dominated the global RTD tea and coffee market with a share of close to 64%. * JAB Holdings, Nestlé, PepsiCo, Coca-Cola, Tingyi (Cayman Islands) Holdings, and Uni-President are the biggest players in the market. Nestlé Sells Sweet Leaf Nestlé Waters North America (NWNA) announced in December the sale of its Tradewinds ready-to-drink and Sweet Leaf Tea brands to Dunn's River Brands for an undisclosed sum. Dunn's is a portfolio company of Texas-based private equity firm Fireman Capital Partners (FCP). Dunn's was founded by Lee Brody, Ian Knowles and Kevin McClafferty, who serves as president and c.e.o. This is the partner- ship's first acquisition. "With FCP's support, we are well-positioned to attract world-class beverage brands and support the next generation of beverage companies," said McClafferty. He said the company expects to add more brands to the portfolio in 2018. Niraj Lama, Leaf Tea Bar, New York

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