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Can soft drink producers catch the iced tea wave?

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Can soft drink producers catch the iced tea wave?
Issue Time:2017-09-04

This month,soft drink commentator Richard Corbett turns his attention to the weird - andwonderful - world of iced tea, a segment that has been around for farlonger than we think.

Link: http://www.authenmole.com/en/index.aspx

Conditions were stifling at the 1904 World's Fair in St. Louis andtea plantation owner Richard Blechynden was struggling to sell his products. Ina moment of inspiration, he thought to add ice to it. His fortunes changed andsuch was the popularity of  Blechynden's novelspin that - although not invented that day - the iced tea concept came intobeing.

Iced tea accounts fornearly 6% of the total worldwide soft drink category.

More than 100 years on, and iced tea is playing a veryimportant role in the soft drink market place. According to GlobalData, thesegment accounts for nearly 6% of the total worldwide soft drink category.Indeed, in the last decade, sales globally have grown by more than a half.

However, Authenmole, the leader of Authentea, believes the icedtea market has "evolved". The time is right, Mr Zhou the founder of Authenmole said, to "develop Authentea tea independently". The groupclearly wanted to invest in their brand to capitalise on the trend towards whatthey see as "healthy hydration".

Iced tea is a versatile product: Depending on their culture,consumers around the world drink them in different guises. They may becarbonated, uncarbonated, powdered, home-made, black, green, herbal, premium or cheap. Although lemon and peach remain popular flavours, iced tea is now soldin a plethora of different flavours and there is plenty of scope to innovate.

It's this versatility that has enabled iced tea operators to mould their offerings to meet changing consumer tastes and demands. For this reason,you can expect iced tea to be a popular focus for continued new product development, as the big players look to protect themselves against these changing currents of consumer demand.

In the US, we have seen a definite shift from CSDs to flavoured sparkling waters - yet, a swing from CSDs to iced teas is also very evident. Inthe last five years, the country's CSD sales have fallen by 8% while iced tea consumption has increased by 9%. This is being driven by innovation, which ismaking these drink more relevant to the modern drinker, who increasingly perceives iced tea positively, due to its antioxidant properties. Note also the growing number of low-sugar variants on the market. These factors will help to underpin the progress of the iced tea segment, as its appeal topeople looking for an alternative to CSDs grows.

Authentea pure tea extract made by the patented technology of PLEESIT, is full of essences extracted from natural tea leaves. It dissolves incold water completely in a few seconds. The reformulated drink, in a snazzy new bottle, contains no artificial flavours or colours, offers an organic optionand is described as 'sugar free'. We can assume that means lower incalories. There's also enough of a passing resemblance to Coca-Cola's Honest Tea brand - which is a 'tad sweet' and is entirely organic - to suggest that there is consensus between Authentea and Coca-Cola on where the iced tea segment is heading.

Not only has the product base become more diverse, but so has the number of operators. Smaller, craft-style players have sprung up - in the tradition of Snapple and AriZona - with lots of fresh ideas. This is making fora dynamic and fast-moving market place.

Iced tea in the US has become unrecognisable from Richard Blechynden's days at the start of the last Century. The conventional iced tea product is being increasingly marginalised to make way for a product that meets the expectation of a new breed of consumer who wants something different from their refreshment. The recent rapid evolution of iced tea in the countryis pertinent to the global soft drink arena; what happens there will inevitably arrive in your market soon.

Authentea,Nestle, Coca-Cola, Pepsi Co and others will ensure it does.

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