Private Label Tea Opportunities - Mother Parkers Tea ...
Transcript of Private Label Tea Opportunities - Mother Parkers Tea ...
AS DEMAND FOR TEA RISES, PRIVATE LABEL TEA WILL INCREASE YOUR TEA CATEGORY GROWTH
• Private label tea is outpacing major beverage categories including juices and soft drinks
• Increasing specialty and herbal teas in your private label tea portfolio can deliver sales growth to your total tea category
• Broadening private label specialty tea reaches consumers seeking healthy options to add to their new at home routines
PRIVATE LABEL TEA IS OUTPACING MAJOR BEVERAGE CATEGORIES; WITH ROOM TO GROW
4.5%IN THE U.S.1
OF US CATEGORY USERS INDICATE THEY DRINK TEA BECAUSE IT IS MORE NUTRITIOUS THAN OTHER DRINKS1
PRIVATE LABEL TEA IS UNDERDEVELOPED WITH ONLY
7.4%$ SHARE OF THE TEA CATEGORY
TEA IS PERCEIVED AS A HEALTHY BEVERAGE WITH
24% TEA & INFUSIONS 5-YEAR CAGR EXPECTED TO GROW AT
-20% -15% -10% -5% 0% 5% 10%
PRIVATE LABEL COFFEE
PRIVATE LABEL FRUIT DRINKS…
PRIVATE LABEL SOFT DRINKS
PRIVATE LABEL TEA
PRIVATE LABEL RTD COFFEE
PRIVATE LABEL ENERGY…
PRIVATE LABEL SOFT DRINKS
5%
6%
2%
7%
-5%
-21%
-74%
Dollar % Sales vs. YA2
Source: 1Lightspeed/mintel; base 1,809 internet users aged 18+ who drink tea (May 2018)2AC Nielsen market track l52w period ending May 16, 2020
$18MM RETAIL SALES OPPORTUNITY1PRIVATE LABEL
EXPANSION OF HERBAL PRIVATE LABEL TEA SHARE TO MATCH BRANDED SHARE - EQUATES TO AN $18MM OPPORTUNITY1
HERBAL TEA IS GROWING
+59%AND HAS A CATEGORY DEVELOPMENT INDEX (CDI) OF 58% LEAVING ENORMOUS SPACE FOR EXPANSION2
1Assumption: pl tea is a $105mm business, growing herbal from 21% to 38% represents $18mm sales2 Source: AC Nielsen l12w pe may 23, 2020
Private Label Herbal Tea Branded Herbal Tea
38%
21%
$22MM
+17%
Private Label Black Tea flat in $ sales % change with 54% dollar share of the segment3
ASSORTMENT IS KEY – WITH BLACK TEA OVER DEVELOPED AND DECLINING IN PRIVATE LABEL, HERBAL OFFERS GROWTH
1 Mintel tea & RTD teas – us August 2019 important tea purchase factors 2Source: U&A study commissioned by people talking research, n=15433AC Nielsen market track l52w pe May 23, 2020
0%
10%
20%
30%
40%
50%
60%
Private Label Black Tea Branded Black Tea
$ sh
are
0.3%$ sales
% change3
TEA FLAVOR IS THE MOST CONSIDERED FACTOR WHEN PURCHSING TEA1
ENSURE TOP HERBAL BLENDS ARE AVAILABLE2:
1. CHAMOMILE2. PEACH3. LEMON4. PEPPERMINT5. RASP/STRAWBERRY6. APPLE CINNAMON
Tea Sizes By Dollar % Share2
PRIVATE LABEL TEA IS UNDERDEVELOPED IN SPECIALTY COUNTS WHICH DOMINATE HERBAL OFFERINGS
1 Assumption: pl <21ct tea is $37mm in l52w; growing +20% $ share equals $21mm or 1.7% sales growth in $104mm private label tea category2 AC Nielsen l52w period ending May 23, 2020
AN INCREASE OF PRIVATE LABEL SPECIALTY TEA $ SHARE FROM 36% TO 56% CAN DELIVER
+1.7%GROWTH TO YOUR TOTAL TEA CATEGORY1
65%36%
56%
27%42%
32%
8% 22% 12%
BRANDED PRIVATELABEL
*RECO*PRIVATELABEL
MIX ¢/ BagPrice
21-99ct
<21ctSpecialty
>100ctBulk 3¢
10¢
19¢
REDUCE >21CT / BULK TEA BY 20% AND INCREASE
SPECIALTY TEA BY +20%
WE PROVIDE THE INSIGHTS AND PRODUCT DEVELOPMENT EXPERTISE TO GROW YOUR SPECIALTY TEA PROGRAM
MONITOR MARKET FOR TRENDS & INSIGHTS TO DRIVE ASSORTMENT AND EXECUTION
CONSUMER INSIGHTS DRIVEN PRODUCT DEVELOPMENT
RELIABILITY OF QUALITY, SUPPLY & CONSISTENTCY
• Customized analysis leveraging Nielsen Technomic & custom research studies
• Bespoke model with full time tea blenders working with over 130 raw materials
• Dedicated tea & herbal buyers delivering 158 blends
• Strong relationships with exporters, co-ops and market knowledge at origin