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T2 — United Kingdom 2 By Dan Bolton STiR Tea & Coffee International Consuming Countries Panel.

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Presentation on theme: "T2 — United Kingdom 2 By Dan Bolton STiR Tea & Coffee International Consuming Countries Panel."— Presentation transcript:

1 T2 — United Kingdom 2 By Dan Bolton STiR Tea & Coffee International Consuming Countries Panel

2 Tea Market Overview: United Kingdom 2 Younger generations responding to health benefits grew green tea sales by 50% since 2012. While 84% drink tea daily, sales of standard black teas declined 2% in 2015. The tea market is valued at $931 million (2014) RTD tea (Lipton) has largely escaped the “war on sugar” due to its health attributes. Sources: Euromonitor Tea in the United Kingdom. British Tea Council and Infusions Assoc. UK Department for Environment, Food and Rural Affairs Mintel International Teabags are favored by 96% of those drinking 165 million daily cups (98% add milk) but the volume of tea in bags declined 17.5% between 2012 (80m kilos) and 2014 (66m kilos). Private label is up 21% as traditional brands including Tetley and PG Tips slump. Per capita consumption is 25g per week, about three cups per day, down from 68g in 1974 and down 22% in the past five years. The British now drink 70 million cups of coffee daily. Yorkshire and Teapigs (Tata) that retail at 5x PG Tips are why specialty sales climbed 8%. Tea sales declined 8% from 2008-13 but value growth remains steady at 1% due to a shift in consumer preference to premium black and green tea and fruit blends. RTD Tea sales are rising.

3 This 66-store specialty tea chain, founded in Melbourne in 1996 was acquired by Unilever in 2013 for a reported $80 million. Service Selection Location T2 opened its 10 th UK location and 2 nd New York City store in 2015. There are 54 stores in Australia and NZ.

4 Teavana — North America 4

5 Tea Market Overview: North America 5 The US is now the world’s third largest tea importer, closing in on Pakistan. During 2010-14 the aggregate value of imported tea rose 17% to average $3,439 per ton. But the volume of tea imported into the US rose only 2% during the 2010-14 period. The Tea Association of USA reports sales of dry tea at $2.58 billion, growing at 4-5%. Foodservice sales were $19.8 billion in 2015 up 4.8% since 2014. The 2016 estimate is 5.1%. Per capita is 8.4 gallons (2013) down from peak of 9.3 gallons in 2011. Black tea accounts for 85% of tea consumed; green tea 14% with oolong, white and dark tea 1%. Sources: Packaged Facts Foodservice Tea Market in the U.S. 2015. Tea Association of America. Seeking Alpha Pricing: Rooibos, chai and organic up. Green is down 5.8% along with matcha and oolong. Servings are estimated at 80 billion (220 million per day) with 158 million US tea drinkers. 97% of US restaurant menus now list tea: Green tea is named on 18.7%. Herbals 10.7% Hot tea is prepared at home by 54% of tea drinkers followed by iced tea at 51%. Single serve capsules account for 13% of dry tea sales. RTD tea generates $5.56 billion in sales. The US is the only western country to grow in tea imports and consumption. Nearly half of America’s tea drinkers ordered iced tea at a restaurant/cafe in the past 30 days and 21% ordered hot tea. RTD tea is consumed by 36% of all adults, much higher among 18-34s.

6 Teavana generated $1 billion in sales in 2015 largely from in-store purchases by loyal Starbucks customers thirsty for iced tea. Service Selection Location The company operates 370 locations including three in UAE with plans to expand into China in 2016.

7 1 Dan Bolton 1 Edits STiR Tea & Coffee International dwb@octobermultimedia.com 2 Produces the weekly World Tea News editor@worldteanews.com Founded Tea Journey Magazine dan.bolton@teajourney.pub Dan has worked as an editor, publisher and newspaper reporter the past 40 years. He is the former editor and publisher of Tea Magazine and former editor-in-chief of Specialty Coffee Retailer in San Francisco. Dan is a leading retail beverage and content marketing consultant who speaks frequently at conferences around the globe. 3 Office: 204 788-1359 Mobile: 204 230-7125 Skype: dwjbolton Winnipeg, Canada


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