Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Advertising creative
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- Tea market sales growth remains strong; a positive future outlook
- The RTD segments continue to be popular
- Bagged/loose tea exhibits little growth; instant tea mixes decline
- Top five companies account for 51% of the market share
- Blacks are the key RTD tea consumers
- Teen are an important consumer in the market
- Green tea is the topmost variety consumed in the U.S.
- Flavor is the top reason to drink tea; health also important
- Value-priced packaging can offer growth in the market
- Tea drinkers have been paying attention to tea sweeteners
Insights and Opportunities
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- Premium teas to offer growth
- New research contends RTD tea not as healthy as freshly brewed tea
- “Can” format to brew growth
Inspire Trends
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- Inspire Trend: “A Simple Balance for Health”
Market Size and Forecast
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- Key points
- Sales growth remains healthy in 2011; a positive future outlook
- FDMx sales and forecast of tea and RTD tea
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- Figure 1: FDMx and convenience store sales and forecast of tea and RTD tea, at current prices, 2006-16
- Figure 2: FDMx and convenience store sales and forecast of tea and RTD tea, at inflation-adjusted prices, 2006-16
- Fan-chart forecast
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- Figure 3: Fan chart forecast of FDMx and convenience store sales of tea and RTD tea, at current prices, 2006-16
- Walmart sales
Market Drivers
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- Health and wellness trends
- Obesity rates steady, but still a cause for concern
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- Figure 4: Percentage of population aged 20+ who are overweight, obese, or extremely obese, 1988-2008
- Obesity rates among teens continue to grow
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- Figure 5: Prevalence of obesity among children and adolescents aged 2-19, 1976-2008
- More than half of all adults watch their diets; a majority of those seek low-fat/low-sugar food
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- Figure 6: Trends in watching diet among adults aged 18+, 2005-10
- Figure 7: Trends in food attributes sought by adults watching/controlling their diet, May 2005- Sept. 2010
- High-fructose corn syrup continues to bother consumers
- Demographic and economic factors
- Teen population offered little growth for 2006-11, better outlook during 2011-16
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- Figure 8: Teen population by age, 2006-16
- Blacks and Hispanics are growth-driving population groups
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- Figure 9: Population, by race and Hispanic origin, 2006-16
- Key RTD tea consumers continue to struggle with unemployment woes
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- Figure 10: Unemployment status (seasonally adjusted) among civilian non institutional population, by age, gender, and race/Hispanic origin, May 2010–May 2011
Competitive Context
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- Key points
- Tea’s antioxidant platform faces multipronged competitive threat
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- Figure 11: New beverage and vitamin/supplement products using “antioxidant” claim, 2006-11*
- Coffefruit—yet another competitor to tea in offering natural antioxidants
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- Figure 12: New nonalcoholic beverage products with pomegranate and açaí, by beverage segment, 2010
- Tea appears as an ingredient/flavor in other beverage categories
- Juice category debuts juice + tea trend
- Natural energy drinks rely on green tea extract for antioxidant and energy claim
- Enhanced water uses tea in flavors, ingredient list to augment health quotient
- Competition within the dairy case gets intense
- Acquisition activity heats up; competition among premium brands to grow
- Nontraditional players invade the RTD tea territory
Segment Performance
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- Key points
- FDMx sales and forecast of tea and RTD tea, by segment
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- Figure 13: FDMx sales and forecast tea and RTD tea, at current prices, by segment, 2006-16
- Figure 14: FDMx sales of tea and RTD tea, by segment, 2009 and 2011
Segment Performance—RTD Shelf-stable Canned/Bottled Tea
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- Key points
- Value and health are the key growth drivers in the segment
- Premium teas offer differentiation and growth
- Mid-priced brands’ revival can bring incremental growth
- Growing competition within RTD tea
- FDMx sales and forecast of RTD shelf-stable canned/bottled tea
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- Figure 15: FDMx sales and forecast of RTD shelf-stable canned and bottled tea, 2006-16
Segment Performance—Bagged/Loose Tea
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- Key points
- Bagged/loose tea needs to spiff up its image
- Single-cup tea pods can potentially offer growth
- FDMx sales and forecast of bagged/loose tea
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- Figure 16: FDMx sales and forecast of bagged/loose tea, 2006-16
Segment Performance—RTD Refrigerated Tea
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- Key points
- RTD refrigerated tea has growth potential, but not without challenges
- FDMx sales and forecast of RTD refrigerated tea
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- Figure 17: FDMx sales and forecast of RTD refrigerated tea, 2006-16
Segment Performance—Instant Tea Mixes
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- Key points
- Instant tea mixes face competition from other teas and beverage mixes
- FDMx sales and forecast of instant tea mixes
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- Figure 18: FDMx sales and forecast of instant tea mixes, 2006-16
Retail Channels
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- Key points
- Supermarkets lose market share to convenience stores
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- Figure 19: U.S. FDMx and convenience stores sales of tea and RTD tea, by channel, 2009 and 2011
Retail Channels—Supermarkets
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- Supermarkets tea sales recover after a dip in 2008
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- Figure 20: U.S. sales of tea and RTD tea at supermarkets, 2006-11
Retail Channels—Convenience Stores
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- RTD tea gains share from other beverages in convenience stores
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- Figure 21: U.S. sales of RTD tea at convenience stores, 2006-11
Retail Channels—Natural Supermarkets
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- Key points
- Kombucha’s decline influences tea sales in natural channel
- Sales of tea and RTD teas in the natural channel
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- Figure 22: Natural supermarket sales of teas and RTD tea, at current prices, 2009-11*
- Natural channel sales by segment
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- Figure 23: Natural supermarket sales of teas and RTD tea, by segment, 2009 and 2011*
- Kombucha—before and after the recall
- Leading brands
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- Figure 24: leading natural supermarket brand sales of teas and RTD tea, by brand 2009* and 2011*
- Natural channel sales by organic content
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- Figure 25: Natural supermarket sales of teas and RTD tea, by organic content, 2009* and 2011*
Companies and Brands
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- Key points
- PepsiCo/Lipton partnership loses market share
- Ferolito, Vultaggio & Sons’ AriZona takes the top position
- Coca-Cola gains market share on the strength of Gold Peak
- Nestlé expands its portfolio into RTD segment; acquires Sweet Leaf Tea
- Private labels grow sales but lose market share
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- Figure 26: FDMx tea and RTD tea sales of leading companies, 2010 and 2011
Brand Share—RTD Shelf-stable Canned/Bottled Tea
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- Key points
- Most Lipton varieties lose market share; brand focuses on all-natural claim
- AriZona faces tough competition as competitors emulate strategies
- Nestea loses sales; Gold Peak gains
- Private label continues to attract price-sensitive consumers
- Among “other” brands Peace Tea shows promising growth
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- Figure 27: FDMx brand sales of canned and bottled tea, 2010 and 2011
Brand Share—Bagged/Loose Tea
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- Key points
- Unilever’s Lipton continues to decline
- Premium brands show small growth
- Single-cup brands small but growing
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- Figure 28: FDMx brand sales of bagged/loose tea, part 1, 2010 and 2011
- Figure 29: FDMx brand sales of bagged/loose tea, part 2, 2010 and 2011
Brand Share—RTD Refrigerated Tea
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- Key points
- Turkey Hill tops the list; faces growing competition from national brands
- Private labels are the second-biggest player in the segment
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- Figure 30: FDMx brand sales of refrigerated tea, 2010 and 2011
Brand Share—Instant Tea Mixes
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- Key points
- Kraft and Unilever retain top positions, but lose market share
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- Figure 31: FDMx brand sales of instant tea mixes, 2010 and 2011
Innovations and Innovators
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- Figure 32: Number of new regular tea* and RTD (iced) tea product introductions in the U.S. 2006-11***
- Innovation in RTD tea segment
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- Figure 33: Top 10 claims in new RTD (iced) tea products in the U.S., 2006-11*
- Purity-based innovations complement tea’s pro-health platform
- Sweet tea and homemade claims strong
- Cane sugar and stevia gain ground; lightly sweetened instead of liquid candy
- Fruit flavors dominate in RTD tea
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- Figure 34: Top 10 flavors in new RTD (iced) tea products in the U.S., 2006-11*
- Innovation in regular tea segment
- Top claims underscore pro-health attributes
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- Figure 35: Top 10 claims in new regular tea products in the U.S., 2006-11*
- Chocolate flavor popularity grows in new regular tea products
- The rise of tea pods
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Marketing Strategies
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- Engaging a “celebrity” to become a spokesperson for the brand
- TV advertisements
- Lipton Brisk engages Eminem—a move to attract teens and young adults
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- Figure 36: Lipton Brisk—Eminem has demands for his commercial, TV ad, 2011
- Snapple touts real tea and taste attributes in diet tea
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- Figure 37: Diet Snapple—tour guide drives around factory, TV ad, 2011
- Yogi Tea emphasizes taste and ingredients
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- Figure 38: Diet Snapple—Animated women do cartwheels, spin, and dance, TV ad, 2011
- Tea brands connect with consumers through social media
- Snapple’s Facebook is an extension of its other marketing efforts
The Adult Tea Consumer: Usage, Type, Brands, and Frequency
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- Key points
- RTD iced tea gains consumers
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- Figure 39: Incidence of individual consumption of RTD iced tea and incidence of household consumption of instant iced tea mixes and bagged/packaged tea, January 2006-December 2010
- Adults aged 18-24 show growing interest in RTD tea
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- Figure 40: Incidence of individual consumption of RTD iced tea, by key demographic groups, January 2006-December 2010
- Most RTD tea drinkers prefer regular calorie tea, compared to diet
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- Figure 41: RTD iced tea usage, regular vs. diet, by key demographics, October 2009-December 2010
- Lipton is the top RTD iced tea brand
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- Figure 42: Personal consumption of iced tea by choice of brands, by age, October 2009-December 2010
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- Figure 43: Personal consumption of iced tea by choice of brands, by household income, October 2009-December 2010
- Household consumption of regular bagged/loose tea and instant tea mixes
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- Figure 44: Incidence of household consumption of regular tea and instant iced tea mixes, October 2009-December 2010
- Trends in household volume consumption of bagged/loose tea and instant tea mixes
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- Figure 45: Household frequency of drinking bagged/loose tea and instant tea mixes on an average day, January 2006-December 2010
- Types and flavors of regular tea and instant iced tea mix
- Regular tea in bags/packages
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- Figure 46: Types of regular tea used in households, by household income, October 2009-December 2010
- Regular tea more popular to make hot tea than iced tea
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- Figure 47: Household usage of regular tea by types of brewing, by region, October 2009-December 2010
- Regular blend is more popular compared to other types of tea
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- Figure 48: Household usage of regular tea by types of flavor, by region, October 2009-December 2010
- Lipton continues its number one position in regular tea brands
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- Figure 49: Household usage of regular tea by choice of brands, by household income, October 2009-December 2010
- Presweetened instant iced tea mixes more popular than unsweetened mixes
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- Figure 50: Household usage of instant iced tea mixes by type, by age of householder, October 2009-December 2010
- Lipton is the topmost brand of instant tea mixes
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- Figure 51: Household usage of instant iced tea mixes by choice of brands, by age of householder, October 2009-December 2010
- Freshly brewed hot tea is the most popular tea format
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- Figure 52: Types of tea by frequency of use, March 2011
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- Figure 53: Personal incidence of drinking different types of tea, by age, March 2011
- Non-organic more popular than organic
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- Figure 54: Incidence of drinking tea by organic and non-organic, by age, March 2011
- Green is the most consumed tea in the U.S.
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- Figure 55: Incidence of drinking tea by type, by gender, March 2011
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- Figure 56: Incidence of drinking tea by type, by age, March 2011
- Green tea is the favorite flavor for most tea drinkers
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- Figure 57: Favorite tea flavors, March 2011
- Incidence of drinking tea types by occasion of drinking tea
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- Figure 58: Favorite tea flavors, by occasion of drinking tea, March 2011
The Tea Consumer—Attitudes and Behavior
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- Attitudes toward organic and Fair Trade -certified tea
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- Figure 59: Attitudes toward and behavior in using organic and Fair Trade-certified tea, by age, March 2011
- Reasons for drinking tea and attitudes toward packaging/RTD tea sweeteners
- Flavor is the top attribute among tea drinkers
- Tea drinkers turn to value-priced packaging
- Tea drinkers have been paying attention to tea sweeteners
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- Figure 60: Reasons for drinking tea and attitudes toward packaging and RTD tea sweeteners, by age, March 2011
- Most tea drinkers brew one cup of tea at a time
- Tea drinkers look for premium tea
- One in 10 tea drinkers likes to visit social media website of favorite tea brand
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- Figure 61: Tea brewing habits and tea drinking and buying behavior, by gender, March 2011
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- Figure 62: Tea brewing habits and tea drinking and buying behavior, by age, March 2011
- Attitudes toward different types of tea format and tea usage in making other foods and beverages
- Carbonated tea has potential for success
- Tea growth possible through using tea in other food and beverages
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- Figure 63: Attitudes toward different types of tea format and tea usage in making other foods and beverages, by gender, March 2011
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- Figure 64: Attitudes toward different types of tea format and tea usage in making other foods and beverages, by age, March 2011
Impact of Race/Hispanic Origin
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- Blacks are the key consumer for RTD iced tea; Hispanics showing growth
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- Figure 65: Incidence of individual consumption of RTD iced tea, by race/Hispanic origin, January 2006-December 2010
- Blacks prefer regular iced tea compared to diet
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- Figure 66: RTD iced tea usage, regular vs. diet, by race/Hispanic origin, October 2009-December 2010
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- Figure 67: Personal consumption of iced tea by choice of brands, by race/Hispanic origin, October 2009-December 2010
- Black and Hispanic households are the key instant iced tea consumers
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- Figure 68: Incidence of household consumption of regular tea and instant iced tea mixes, by race/Hispanic origin, October 2009-December 2010
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- Figure 69: Household usage of instant iced tea mixes by type, by race/Hispanic origin, October 2009-December 2010
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- Figure 70: Incidence of drinking tea by type, by race/Hispanic origin, February 2010
- Blacks most likely to use family-size packaging
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- Figure 71: Reasons for drinking tea and attitudes toward packaging and RTD tea sweeteners, by race/Hispanic origin, March 2011
The Teen Consumer: Usage, Types, and Brands
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- Key points
- Teen consumer base for RTD tea grows
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- Figure 72: Personal consumption of iced tea among teens, January 2006–December 2010
- Teen girls more interested in iced tea compared to boys
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- Figure 73: Personal consumption of iced tea among teens, by gender and age, October 2009–December 2010
- Black teens are the key consumers
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- Figure 74: Personal consumption of iced tea among teens, by race/Hispanic origin, October 2009–December 2010
- Most teens prefer regular iced tea compared to diet
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- Figure 75: Iced tea usage among teens by regular or diet, by age and gender, October 2009–December 2010
- Black and Hispanic teens prefer regular RTD tea
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- Figure 76: Iced tea usage among teens by regular or diet, by race/Hispanic origin, October 2009–December 2010
- AriZona shows considerable growth in teen consumer base
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- Figure 77: Iced tea consumption among teens by brands, by gender and age, October 2009–December 2010
- Black teens show higher-than-average usage for most brands
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- Figure 78: Iced tea consumption among teens by brands, by race/Hispanic origin, October 2009–December 2010
The Custom Consumer
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- Gender- and age-based differences exist in choosing different types of tea
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- Figure 79: Incidence of drinking different types of tea, by age and gender, March 2011
- Men aged 18-34 are the primary organic tea consumer
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- Figure 80: Incidence of drinking organic and non-organic tea, by age and gender, March 2011
- Green tea more popular among young adults
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- Figure 81: Incidence of drinking organic and non-organic tea, by age and gender, March 2011
- Smartphone owners more likely than non-owners to drink all types of tea
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- Figure 82: Incidence of drinking different types of tea, by Smartphone owners and non-owners, March 2011
- Older black adults more likely than the younger ones to drink RTD tea
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- Figure 83: Incidence of drinking RTD tea among blacks, by age and gender, October 2009-December 2010
Cluster Analysis
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- Tepid Tea Drinkers
- Demographics
- Characteristics
- Opportunity
- Judicious Tea Drinkers
- Demographics
- Characteristics
- Opportunity
- Avid Tea Drinkers
- Demographics
- Characteristics
- Opportunity
- Characteristic tables
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- Figure 84: Tea drinker consumer clusters, March 2011
- Figure 85: Types of tea by frequency of use, by tea drinker consumer clusters, March 2011
- Figure 86: Incidence of drinking organic tea by type, by tea drinker consumer clusters, March 2011
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- Figure 87: Incidence of drinking non-organic tea by type, by tea drinker consumer clusters, March 2011
- Figure 88: Incidence of not drinking teas by type, by tea drinker consumer clusters, March 2011
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- Figure 89: Reasons for drinking tea and attitudes toward packaging and RTD tea sweeteners, by tea drinker consumer clusters, March 2011
- Figure 90: Attitudes toward and behavior in using organic and Fair Trade-certified tea, by tea drinker consumer clusters, March 2011
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- Figure 91: Tea brewing habits and tea drinking and buying behavior, by tea drinker consumer clusters, March 2011
- Figure 92: Attitudes toward different types of tea format and tea usage in making other foods and beverages, by tea drinker consumer clusters, March 2011
- Demographic tables
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- Figure 93: Tea drinker consumer clusters, by gender, March 2011
- Figure 94: Tea drinker consumer clusters, by age, March 2011
- Figure 95: Tea drinker consumer clusters, by household income, March 2011
- Figure 96: Tea drinker consumer clusters, by race, March 2011
- Figure 97: Tea drinker consumer clusters, by race/Hispanic origin, March 2011
- Cluster methodology:
SymphonyIRI/Builders Panel Data: Key Household Purchase Measures
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- Canned and bottled tea: key household purchase measures
- Overview
- Canned and bottled tea: consumer insights on key purchase measures
- Brand map
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- Figure 98: Brand map, selected brands of canned and bottled tea buying rate by household penetration, 2010*
- Brand leader characteristics
- Key purchase measures
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- Figure 99: Key purchase measures for the top brands of canned and bottled tea, by household penetration, 2010*
- Bags/loose tea—key household purchase measures
- Bags/loose tea: consumer insights on key purchase measures
- Brand map
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- Figure 100: Brand map, selected brands of bags/loose tea buying rate by household penetration, 2010*
- Brand leader characteristics
- Key purchase measures
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- Figure 101: Key purchase measures for the top brands of bags/loose tea, by household penetration, 2010*
- Instant tea mixes—key household purchase measures
- Consumer insights on key purchase measures—instant tea mixes
- Brand map
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- Figure 102: Brand map, selected brands of instant tea mixes buying rate by household penetration, 2010*
- Brand leader characteristics
- Key purchase measures
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- Figure 103: Key purchase measures for the top brands of instant tea mixes, by household penetration, 2010*
Appendix—IRI/Builders Panel Data Definitions
Appendix—Other Useful Tables
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- Brand usage of RTD iced tea
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- Figure 104: Personal consumption of iced tea by choice of brands, by gender, October 2009-December 2010
- Figure 105: Personal consumption of iced tea by choice of brands, by region, October 2009-December 2010
- Attitude toward organic and Fair Trade-certified tea
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- Figure 106: Attitudes toward and behavior in using organic and Fair Trade-certified tea, by household income, March 2011
- Reasons for drinking tea and attitudes toward packaging/RTD tea sweeteners
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- Figure 107: Reasons for drinking tea and attitudes toward packaging and RTD tea sweeteners, by gender, March 2011
- Impact of race/Hispanic origin
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- Figure 108: Types of regular tea used in households, by race/Hispanic origin, October 2009-December 2010
- Figure 109: Household usage of regular tea by types of flavor, by race/Hispanic origin, October 2009-December 2010
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- Figure 110: Household usage of regular tea by choice of brands, by race/Hispanic, October 2009-December 2010
- Figure 111: Household usage of instant iced tea mixes by choice of brands, by race/Hispanic, October 2009-December 2010
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- Figure 112: Household usage of regular tea by type of brewing, by race/Hispanic origin, October 2009-December 2010
- Figure 113: Personal incidence of drinking different types of tea, by race/Hispanic origin March 2011
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- Figure 114: Tea brewing habits and tea drinking and buying behavior, by race/Hispanic origin, March 2011
- Figure 115: Attitudes toward different types of tea format and tea usage in making other foods and beverages, by race/Hispanic origin, March 2011
Appendix—Trade Associations
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