Drink up to health

WITH Asia’s long history with tea, it’s no surprise that ready-to drink versions are also strong in the region. While hectic lifestyles and the need for convenience are fuelling consumer demand for these products, the health benefits are still the reason behind robust sales. Options run the gamut from black, green, red, white, to oolong and fruit- and herbal-based teas that are widely available in PET bottle, aseptic carton, can or glass packaging.

Industry statistics show that in 2014, RTD tea reached $50 billion in global sales with China, Japan and the United States as the three largest markets. Although in terms of growth, China, Vietnam and the U.S. are the top three.

Asia Pacific is the largest regional market for RTD tea. Along with China and Vietnam, Indonesia and Taiwan are also large markets. Europe is the second largest regional market, while North America is the fastest growing, with the U.S. leading worldwide in terms of marketing bottled RTD tea.

According to Euromonitor, the Greater China market will continue to develop. The estimated growth for the mainland is 17%. Thanks to rising income levels, more consumers can expand their choice of brands, and manufacturers are positioning premium RTD teas for this market.

Although a mature category in Taiwan, RTD tea shows modest volume growth, while in Hong Kong the volume for the off-trade channel is estimated to increase by 3% this year.

Increased consumption is also the story for most of Southeast Asia.  As in Malaysia, health consciousness is seen to drive consumer demand in Singapore as volume sales this year is set to grow by 2%. In Thailand, aggressive sales promotion activities are helping the sector in registering double-digit growth. RTD tea volume increased by 18.7% in 2014 to 497 million liters in the Kingdom. Vietnam, on the other hand, will continue to enjoy high off-trade volume and is expected to register a 16% growth in this market channel this year.

In North Asia, Japan is seeing a migration of preference from hot tea to RTD tea because of convenience. As a result, off-trade volume is forecast to increase by 1% in 2015.

Ito En’s eleven unsweetened flavors are non-GMO certified

Emerging trends and innovations

Zenith International, a global consultant for specialist food and drink, identified that apart from health benefits other trends in RTD tea include added functionality, sweetened and unsweetened variants, energy propositions, Kosher products, GMO-free products, organic certification and gluten free.

Such is the case in Asia where both multinationals and home-grown food conglomerates pit their product line-up using aggressive advertising campaigns, unique marketing programs and extensive distribution network.

Oishi blends new flavors into its black tea and staple green tea offerings

In Singapore, for example, the Pokka brand’s unique selling proposition comes in the form of green tea, ice fruit tea, premium afternoon tea, premium milk tea, white tea and oolong tea. In Thailand, Japanese-style green tea brand Oishi is blending other flavors to its staple offering to include Honey Lemon, Genmai, Sugar Free, Peach and Black Tea Lemon. In Vietnam, manufacturers are unveiling products and flavors such as Suntory PepsiCo Vietnam Beverage Co. Ltd.’s Oolong TEA+ Plus; Interfood Shareholding Co.’s Tea Break and Wonderfarm Winter Melon Tea Lite; and Vietnam Dairy Products JSC’s (Vinamilk) Ganoderma Tea Lincha, which were launched in 2013. URC Vietnam Co. Ltd.’s C2 O Long Tea, and Tan Hiep Phat Group’s Zero Degree Low Calorie green tea, on the other hand, were introduced in 2014.

Japan’s Ito En, a global leader in green tea, is using non-genetically modified organisms (GMO) certification and environmental initiatives as product differentiation.  Its 11 unsweetened flavors received an official verification from the Non-GMO Project, the only independent verification program for GMO avoidance in North America.  In 2014, its award-winning ready-to-drink Teas' Tea and Oi Ocha received official verification from the Non-GMO Project. This achievement represents Ito En’s commitment to natural and high quality products.

Non-GMO verification products allow consumers to make fully informed decisions and support sustained availability of non-GMO choices.

Rona Tison, Senior Vice President of Corporate Relations says, “The rigorous testing process is an assurance to consumers that our products are transparent and clean of any genetically modified organisms.”

Teas’ Tea was created from the Japanese expression “Ocha no Naka no Ocha”, which simply means “The Tea of All Teas!” Brewed with whole loose leaf teas, the Unsweetened Teas’ Tea and Oi Ocha are high in antioxidants and Vitamin C, and marketed as zero calorie products.

The company recently reduced the packaging of their bottles to 18.7 grams compared to the industry standard of 24 grams. With a lighter gauge bottle and smaller bottle caps, the company is committed to reducing their carbon footprint. Recognized for their environmental initiatives, Ito En has been awarded for the innovation of eco-friendly products and recycling of their tea leaves from their signature tea beverages.

Bubble tea influence

Perhaps owing to the bubble tea’s cycle of resurgence, RTD tea with basil seeds from V-Thai Food Product Co. Ltd remains popular although it has been in the market for a decade.

The Thai company is proud to have blazed the trail in using high-fiber basil seeds in RTD tea. Aside from aiding digestion, basil seeds reportedly provide relief for sore throat, colds, skin infection and stress. They swell up in liquid and have a jelly-like, chewy texture.

“We were the first company to do so in Thailand 10 years ago,” said Suphakarn Wisitthammasri, sales manager at V-Thai Food.

Today the company’s Thai Tea Drink with Basil Seed and Green Tea Drink with Basil Seed remain best-sellers along with their Thai Tea Drink and Lemon Tea Drink.

“This success has led other brands, even those outside of Thailand, to do the same,’’ said Ms Wisitthammasri. She remains confident, however, that V-Thaifood’s RTD tea products will continue to enjoy an advantage.

“We have built our reputation on the quality of our products and because of it more and more people are getting to know about our line,” Ms Wisitthammasri said. V-Thai Food’s production is done to HACCAP, ISO 9001, GMP, BRC and Halal standards. This, along with the health benefits makes V-Thaifood’s RTD tea products popular, she added.

According to V-Thaifood, sourcing basil seeds from local suppliers helps ensure its steady supply.

The company currently exports to Australia, Cambodia, China, Denmark, Indonesia, Japan, Malaysia, the Netherlands, Norway, Singapore, Sweden, the U.K. and the U.S.

Packaging is in standard bottles with easy-to-open crowns. Ms Wisitthammasri said that bottles are heavier packaging materials, but “their use adds to the drinks’ freshness because they extend shelf life up to two years,” she said.

Ms Wisitthammasri sees many opportunities in RTD tea products, and with V-Thai Food’s ability to churn out 27,000 bottles to fit a container within three days, she is confident that her company is able to meet market demand.

Sports marketing

China’s Herbal Tea brand Wong Lo Kat has turned to sports to promote its drinks. In an attempt to capture foreign market attention, it held an exhibit and free sampling at the 2014 World Cup in Brazil.  As if to match the multinationals’ efforts of collateral branding during mega sports events and to foster awareness for tea and its products, the Chinese brand held a show dubbed  “Authentic Herbal Tea: Wong Lo Kat’s Culture Exhibition around the World” and used photos to illustrate the history of its authentic Chinese herbal tea and provided free herbal tea drinks.

With more than 180-years’ history, Wong Lo Kat is considered China’s earliest herbal tea. The benefits of the drink, which include relieving inflammation, are not that known overseas. The brand’s presence at last year’s World Cup meant to change that. The brand is positioning its appeal among Chinese communities abroad as part of its strategy to penetrate new markets.