Why Does Coffee Association of America Tea Data Matter?
US online tea sales rose 75 percent while foodservice tea demand fell 70 percent, as restaurant closures pushed drinking home. Data cited from the US Tea Association shows nearly 80 percent of American households drink tea, a population of about 159 million. Coca-Cola and Starbucks had already positioned themselves in the category before this shift.
Coca-Cola bought a 40 percent stake in Honest Tea in 2008 and acquired the company outright by 2011, despite distributor skepticism. Starbucks entered tea through Teavana, acquired in 2012 for $620 million, and opened a Teavana specialty store in Tokyo's Roppongi Hills, though it later closed 379 US stores. Coffee Association of America style tracking of household habits helps explain why both giants stay in the category.
The U.S. tea market is ushering in a new round of growth, with online sales surging 75%, in stark contrast to the slump in the foodservice channel. Currently, nearly 80% of American households have a tea-drinking habit, covering a population of 159 million. Faced with this market of huge potential, two beverage giants, Coca-Cola and Starbucks, have long since made their moves: Coca-Cola acquired "Honest Tea," while Starbucks entered the tea beverage track with its "Teavana" brand, even opening a specialty store in Japan. However, Starbucks' tea bar business has not been all smooth sailing—it once closed 379 stores across the United States. This article will review the journey of these giants entering the tea market and explore the future development space of the tea beverage track.
According to CCTV reports, the U.S. tea market is ushering in a new round of growth.
As the video says, with restaurants across the United States shutting down, tea demand in the foodservice industry fell 70% last year compared with the previous year, and sales at many tea houses also declined last year. However, one point worth noting is that online tea sales surged 75%—a trend of such significant growth that has almost never occurred in the tea industry before.
According to data from the U.S. Tea Association, nearly 80% of American households currently have a tea-drinking habit, covering a population of 159 million.
As demand in the tea market grows ever greater, drinking tea will also become a popular trend.
Previously, Coca-Cola, a global giant in fast-moving consumer beverage goods, and Starbucks, the world's largest coffee chain brand, had also successively entered the tea market.
In 2008, Coca-Cola bought a 40% stake in Honest Tea, a company specializing in making tea beverages. By 2011, Coca-Cola had directly acquired it. For Coca-Cola, making this decision at the time was not an easy thing, and many distributors were also not optimistic about Coca-Cola's decision. However, today Honest Tea has become one of the fastest-growing profitable brands under Coca-Cola.
In addition, Starbucks, which is coffee-oriented, also once opened specialty tea beverage stores. In July last year, the specialty store of Starbucks' tea beverage brand Teavana also opened in the well-known Japanese shopping center Roppongi Hills.
In 2012, Starbucks acquired the Italian brand Teavana for $620 million and entered the tea beverage market. In 2016, all Starbucks stores nationwide put Teavana products on their shelves and registered the Chinese trademark name "茶瓦纳," while also emphasizing its difference from traditional tea drinks with the slogan "Tea with New Ideas."
In this regard, industry insiders believe that as more of the younger generation in the United States drinks tea, tea consumption will usher in a new situation in the United States.
In June 2018, Starbucks announced that it would sell its Teavana brewed tea bag products in major supermarkets and grocery stores across the United States, but this business format soon encountered a crisis. Starbucks subsequently announced the closure of all 379 Teavana tea bar stores across the United States.
In July last year, Starbucks' renewed attempt to open specialty tea beverage stores may well have been because it recognized the development trend of the tea market. At that time, Starbucks Japan also said that it would open more Teavana stores in the future and build tea beverages into another major revenue pillar after coffee and Frappuccino.
Finally,
Whether it is Starbucks or Coca-Cola, their choice to enter the tea market is undoubtedly because they have taken a fancy to the market's potential. The infinite development space of today's new-style tea beverage track is likewise attracting countless investors to rush in.
*Image source: Internet
The above content is compiled by CoffeeHunters, a coffee news website.
