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November 21, 2014

Huge Potential in India’s Yet Uncharted Tea Market

Dana LaMendolaAnalyst Insight by Dana LaMendola - Beverages Analyst

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In India, like other emerging Asia markets where tea consumption is high, there is a lot of focus on the value opportunity from the transition from unpackaged (unbranded) tea to packaged tea products. Indeed, between 2008 and 2013, tea increased by 118% in retail value, reaching US$1.9 billion. Yet, retail volume growth has been less impressive, increasing by 20% in the same period. This discrepancy suggests that to date, the primary shift in the Indian tea market has been towards more value-added packaged tea products, rather than a substantial shift from unpackaged to packaged tea products on the whole. According to industry sources, unpackaged tea still accounts for at least 50% of the overall Indian tea market, indicating a significant opportunity for tea manufacturers.

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November 8, 2014

Ahmad Tea: Exploration of Home Market and Challenges Abroad

Hope.LeeAnalyst Insight by Hope Lee - Senior Beverages Analyst

Ahmad Tea London Ltd, ranked fifth in the tea globally, is one of the few long-established, family-owned companies with a significant international presence. Euromonitor International’s data show that Ahmad registered shares in over 20 markets in 2013, with a particularly strong presence in the Middle East, Eastern Europe and some African countries. Its relatively wide geographic coverage in these emerging markets makes it a multinational company but it is not a truly global operator compared to first tier conglomerates Unilever, Tata Global Beverages and Associated British Foods. Under Unilever’s mighty leadership, Ahmad Tea’s global status is similar to that of Orimi Trade OOO and Teekanne, relying on concentrated coverage in certain regions while weak in other regions. Ahmad Tea and Orimi, for example, are both absent from North America and Asia Pacific but are strong in Russia. However, Ahmad Tea does not show an urgent need to address its geographical weakness. Any companies, big or small, listed or private, are looking for growth, and stagnancy is sometimes the biggest internal threat, as the marketplace and competitive landscape are changing all the time. Ahmad Tea faces the same environment as everyone else.

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October 20, 2014

Can Tea Take Occasions Away From Coffee?

JonasFelicianoAnalyst Insight by Jonas Feliciano - Senior Beverages Analyst

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As reported in Drinks Business Review, Bigelow Tea will introduce a new “American Breakfast” line of black tea that contains 50% more caffeine than the average tea serving. Is the tea manufacturer purposefully targeting American coffee drinkers? And is this really the best way to grow tea sales in the US?

New Bigelow American Breakfast Teas are specially formulated with natural black tea extract -- a concentrated form of brewed black tea -- to deliver 60-90mg of caffeine per cup, versus the typical 30-60mg in regular black tea. Yet despite the significantly higher caffeine content, drinkers will not experience the 'rush and crash' effect typical of coffee thanks to L-Theanine, the naturally occurring compound found almost exclusively in tea.

By highlighting this blend’s superiority to sustained energy due to the usage of L-Theanine, the answer to the first question is resoundingly affirmative. Tea has long trailed coffee as America’s preferred morning beverage – a tradition that can goes back to separatists dumping British teas into the Boston Harbor. The recent acquisition of Teavana by coffee giant Starbucks led many to speculate about a “tea boom” in the states, but it has yet to occur despite increased spending on coffee.  With this launch, Bigelow is firmly targeting coffee drinkers to consider tea as an alternative.

In the words of third generation president and CEO, Cindi Bigelow, "I invite you to sip a cup of our beautiful American Breakfast Tea; made in America, by an American family, for the American consumer. And as always, we hope our teas delight you.

Gaining a small piece of the US’s US$12 billion retail coffee industry would undoubtedly buoy tea’s US$2.4 billion retail figure. But asking consumers to make the switch, rather than complimenting their morning routines with an occasional earl grey or oolong, seems a bridge too far. Morning rituals are one of the hardest routines to break. Simply fortifying tea with caffeine seems like a good plan, when considering the economic opportunity, but several challenges remain.


Have a question or a thought to add? Leave us a comment below.

September 11, 2014

The Impact of the Indian Budget on Consumer Goods and Services

Euroindia_Shreyansh.Kocheri_LThumbHosted by Shreyansh Kocheri, Research Analyst

The Union Budget of India for 2014-2015, presented on July 10 has an impact on almost every area of consumer goods and services in the country. Research analysts from Euromonitor International’s office in Bangalore, India respond to the budget in this podcast series.



 Featuring:  Shabori Das - Research Analyst, Ina Dawer, - Senior Research Analyst, Manjunath Reddy - Research Analyst and Priyanshu Rana - Reseach Analyst

Introduction to the Big Indian Budget (mp3)

The Indian Budget's Impact on the Tobacco Market (mp3)

The Indian Budget's Impact on Internet Retailing (mp3)

The Indian Budget's Impact on Consumer Electronics (mp3)

The Indian Budget's Impact on Consumer Finance (mp3

The Indian Budget's Impact on Food and Beverages (mp3)

The Indian Budget's Impact on Travel and Tourism (mp3)

The Indian Budget's Impact on Apparel and Footwear (mp3)

September 4, 2014

Snapshots of GlaxoSmithKline’s Consumer Healthcare Division and Horlicks’ Sales

Hope.LeeAnalyst Insight by Hope Lee - Senior Beverages Analsyt

The bribery case in China and disappointing second-quarter results have put GlaxoSmithKline (GSK) in the headlines again. The pharmaceutical giant was initially reported to be looking to spin off its Consumer Healthcare division and make it a stand-alone company – but GSK quickly denied any such plans. Simon Steel, GSK’s spokesman, later stated that GSK would not rule out the possibility of one day divesting the unit, but that it is not currently being considered, at least in the short term. The quick denial raised interest in the media and among analysts as to what exactly GSK plans to do with the consumer unit and a decision about the future of Horlicks in the long term.


Horlicks JPEG.jpg


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August 22, 2014

Kraft Licenses Coffee Brands for use in Green Mountain's Keurig

6a01310fa9a669970c01a511f73ed7970c-800wi 6a01310f54565d970c01a3fce3cf1a970b-800wiWith Jonas Feliciano, Beverages Industry Analyst and Dana LaMendola, Beverages Industry Analyst

The recent deal between Kraft and Green Mountain gives liscensing rights to Green Mountain to distribute Kraft's brand of products in pod form for use in Keurig machines. Kraft's brands are a large gain for Green Mountain, who's main strategy is to obtain liscenses from large coffee players. Kraft's Maxwell House brand is the second largest coffee brand in the US, and given the success of Starbucks and Folger's pods, Kraft's larger-known brands are expected to perform well in pod format.

Download as an MP3

August 17, 2014

Tata’s State of Play in Global Coffee and Earth Rules Acquisition

Hope.LeeAnalyst Insight by Hope Lee, Senior Beverages Analyst

Tata Global Beverages Ltd’s (TGBL) global ambitions are clear and well laid out. The company is aggressively acquiring and building a comprehensive beverages portfolio through both the extension of existing core brands and new brand acquisitions. Geographical expansion was also a priority from previous acquisitions. The company aims to achieve revenues of US$5 billion by 2015. This is achievable if it sustains its rapid expansion. TGBL’s long-term corporate goal is to become a major player in tea, coffee and bottled water. While the company is already a leading player in tea globally, it would take many years to replicate that position in coffee if relying solely on organic growth over the medium term. Its recent acquisition of Australian company Earth Rules is a positive move in this direction. Bronski Eleven Pty Ltd Australia was the holding company of Earth Rules Pty Ltd. However, the country’s limited growth potential may have an insignificant impact on TGBL’s global coffee position unless it expands its newly acquired business to other countries.

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August 7, 2014

Lipton: Hot Tea and RTD Tea Major Market Sales

Lipton market share sales

Lipton is the world’s leading hot tea and RTD tea brand, with around US$6 billion rsp in 2013. It is significant in both hot tea and RTD tea and has truly global coverage, helping to secure its overall position. It also has no close rivals in terms of category and geographic profile. Major markets for hot tea and RTD tea are likely to see far higher growth in RTD tea than hot tea in future, meaning Lipton RTD tea has much growth potential. It does need to address its weakness in Indonesia.

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August 2, 2014

Can the Bkon Craft Brewer Steal Customers from the Coffee Pod Market?

There are two major contributing factors to market growth in hot drinks: the growing market for coffee pods and the health and wellness trend existing in the tea market. The recent launch of the Bkon Craft Brewer addresses both of these factors as it can create any loose-leaf tea beverage or coffee blend in a 60-second time frame. Currently the machine carries a hefty price tag and is not feasible for use outside of larger tea houses, but if the creation proves successful and the company manufactures a version intended for home use, it may steal away customers from the coffee pod market.

Watch on Youtube

July 21, 2014

Shopper Insights in Action Conference 2014 – IIR – Event Recap

Howard TelfordAnalyst Insight by Howard Telford - Beverages Analyst

View Howard Telford's profile on LinkedIn

This past Wednesday, the 14th annual Shopper Insights in Action conference concluded in Chicago, Illinois. As always, the event focused on strategies to improve shopper activation across all kinds of consumer retail categories and channels, providing the shopper side of consumer marketing (and its research suppliers) an engaging forum to share ideas and success stories.

From a beverages and food service perspective, the three-day event at Navy Pier left me considering the need to address three, macro-level organizational challenges in the drinks industry:

1.       Using ‘big data’ more effectively

As the event’s exhibit hall demonstrated, there are a myriad of methodologically different ways to collect, measure and interpret the in-store responses of consumers to your products and shelves. As an industry that frequently delivers and merchandises its products through a two-tier bottling system (or other independent direct delivery partners), measuring the effectiveness of in-store activity - displays and product location - is vital. How can marketing and channel management teams demonstrate that ‘soft’ information on shopper response, preference or opinion is robust and indicative of volume growth or incremental revenue? Brands and their retail partners must work harder to interpret and contextualise data and insights in order to effectively advocate for change within their businesses.

Research focused and data literate leadership certainly helps. Keynote speaker Sir Terry Leahy, former CEO of Tesco plc, spoke about the need to improve the dissemination and understanding of data within large retailers and other organizations. As research tools become more powerful and useful – from generating understanding of potentially new, developing markets, to specific, localised consumer segments and their behaviours – it remains important that these insights are clear and actionable while reaching the right pairs of eyes.   

Continue reading "Shopper Insights in Action Conference 2014 – IIR – Event Recap " »


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Recent Posts

Huge Potential in India’s Yet Uncharted Tea Market

Ahmad Tea: Exploration of Home Market and Challenges Abroad

Can Tea Take Occasions Away From Coffee?

The Impact of the Indian Budget on Consumer Goods and Services

Snapshots of GlaxoSmithKline’s Consumer Healthcare Division and Horlicks’ Sales

Kraft Licenses Coffee Brands for use in Green Mountain's Keurig

Tata’s State of Play in Global Coffee and Earth Rules Acquisition

Lipton: Hot Tea and RTD Tea Major Market Sales

Can the Bkon Craft Brewer Steal Customers from the Coffee Pod Market?

Shopper Insights in Action Conference 2014 – IIR – Event Recap