Tea Time Is Now

Analysts predict ready-to-drink (RTD) tea will stay on top of the beverage market as consumers continue to lose interest in highly sweetened drinks and gain interest in functional, healthful drinks with more varied flavors. The global RTD tea market reached 37 billion liters in 2016, up 10 percent from 2011, and projections are set to reach 45 billion liters by 2021, reports BeverageDaily.com.

Numi Organic Tea, an established packaged tea brand based in Oakland, Calif., understands the opportunities and challenges, and it’s ready to dive into the RTD category through a long-term agreement with Smucker Natural Foods to manufacture, market and distribute bottled products.

“With our new RTD tea line, we’re capturing many of the trending flavors like jasmine, mint, Assam black tea, rooibos and hibiscus,” says Ahmed Rahim, co-founder and chief executive officer of Numi Organic Tea.

Rahim says he is seeing strong foodservice demand not just for bagged or loose leaf tea, but for premium iced teas and blends that work well in iced or hot tea lattes. Tea can benefit from more drinking occasions because, unlike coffee, tea is is consumed throughout the day for different occasions. Tea’s lower caffeine content and caffeine-free herbal blends also make it an additional revenue opportunity in any daypart.

Consumers who typically drink made-to-order coffee drinks will also see more to like in tea, predicts Rahim. “Tea lattes are surging in popularity, with menus expanding well beyond the classic chai latte. In trend-savvy markets, it’s common to see hot and iced matcha and turmeric lattes. As consumers are becoming more health conscious, they’re also looking for alternatives to dairy (almond, soy, coconut milk) and sugar (agave, honey, stevia).”

Grocerant-Ready Ideas:

• Upgraded RTD tea displays and coolers with more iced tea varieties and flavors
• Matcha and chai lattes added to prepared beverage service
• Tea flavors and functionality promoted as a value-add in marinades and dressings