Tea Industry News and Features

Certified Organic Flavors Now Required for Certification

By Scott Svihula January 22, 201

The National Organic Program (NOP) published a final rule that amends the National List of Allowed and Prohibited Substances (National List). This rule will be fully implemented January 28, 2019, with the exception of the amendments for the substances ivermectin, flavors, cellulose, and glycerin, which will be implemented December 27, 2019.  The new ruling on flavors requires the use of organically certified flavors whenever commercially available. Since the USDA did not post guidelines or list what is commercially available, each certifying agency will have its own set of requirements, ranging from a simple form to more complex documentation. Regardless, any certified organic tea using natural flavors under the 95 percent rule will need to be re-evaluated using organic certified flavors or collect documentation that its needed flavor is not commercially available. Each agency will have to determine if a flavor is considered commercially available or not at this time.  To read the final rule in its entirety, please reference the federal register here.

Bergamot fruit (Getty Images/NakornChaiyajina)

Most flavors used in the tea industry are organic compliant natural non-GMO flavors, but these will no longer qualify for certification. Certified organic flavors will have to be used if commercially available.

The definition for commercial availability is in the rule 205.2 Terms defined. “Commercially available. The ability to obtain a production input in an appropriate form, quality, or quantity to fulfill an essential function in a system of organic production or handling, as determined by the certifying agent in the course of reviewing the organic plan.” The reason why something is not commercially available must comply with the definition above: form, quality or quantity to fulfill an essential function and must not be based on price.

This poses several questions that are currently unanswered. For example, let’s take strawberry. There are many ways to make a strawberry flavor: typical strawberry used in kids’ drinks and medicines, red ripe strawberry, sweet slightly over ripened strawberry, unripe strawberry, wild strawberry, earthy strawberry, candied strawberry, etc. Even though certified organic strawberry flavor is readily available; can it be made organically in all these variations? Since each certifying agency will be making their own determination of what is considered “commercially available”, if one company submits strawberry as organically certified, will that mean that for that agency everyone will need to use certified organic strawberry flavor, even if your specific taste profile is not available? What about flavor suppliers? What if the flavor supplier you use and have partnered with cannot make your flavor certified organic? Is there an expectation that you would need to find another supplier to make it certified organic before you state it is not “commercially available”? And how many flavor companies will you need to contact? As you may know, not all flavor houses know how to create flavors for tea, some excel at this while others struggle. Not to mention that, certified organic flavors are typically about 20-30 percent costlier and have about 1/3 the strength in aroma and taste.

In talking to several tea manufacturers, the decision of what to do next will be challenging. There are basically 3 paths to take to comply with this new regulation.

1. To keep your organic certification, change the application of your 95% certified organic flavored teas to the 70%/30% category. The new ruling does not affect this category; though you will not be able to use the USDA seal. (see chart below for more details)
2. Drop the 95% certified organic flavored teas from your organic certification; though you would only be able to mark the ingredients as organic in the ingredient statement. This could cause confusion with your customers, and if you are not certifying these, does it make sense to certify any of your teas?
3. Work with your flavor supplier (and most likely other flavor suppliers) to create the same tasting flavor but in a certified organic form; knowing this will drive up the cost of goods. Once approved, you will wait 3-12 weeks to get the certification from the flavor company and then another 3-12 weeks to get your flavored tea certified. With a December 27^th deadline, you will need to start working on this change over now and have the new flavors approved by the end of the second quarter.

Regardless of the route you take for your business, the decision is not an easy one to make. This new requirement for certified organic flavors will in some way affect your bottom line and will inevitably cause confusion for consumers and reduce the number of certified flavored teas (and other organic flavored products) available. My recommendation is to seek out support from your flavor houses, industry peers, and industry consultants who specialize in blend development and product sourcing to help your company navigate through these options.

 FINAL RULE – FLAVORS

Peppermint (Getty Images/Amy_Lv)

“Flavors The final rule amends the National List to revise the annotation of flavors in § 205.605(a) to change the allowance for nonorganic flavors to require the use of organic flavors when they are commercially available. The listing of flavors in paragraph (a) reads as follows: Flavors—non-synthetic flavors may be used when organic flavors are not commercially available. All flavors must be derived from organic or nonsynthetic sources only and must not be produced using synthetic solvents and carrier systems or any artificial preservative. This rule retains requirements that all flavors must be derived from organic or nonsynthetic sources only and must not be produced using synthetic solvents and carrier systems or any artificial preservative. This rule applies to products in the ‘‘organic’’ and ‘‘made with organic (specified ingredients or food group(s))’’ categories. This rule change does not apply to nonorganic ingredients that may be used in up to 30 percent of ‘‘made with organic’’ products. Due to the number of distinctly different natural flavors and the pace of new product development in flavors, AMS has determined it would be impractical to list individual flavors on the National List to indicate which are commercially available in organic form. AMS has reviewed and agrees with the NOSB recommendation that the annotation for flavors be amended to clarify its use in organic handling. AMS received comments on the proposed rule for amending the annotation.”

ORGANIC CATEGORIES

100% Organic	•       All organic ingredients •       Any processing aids must be organic •       Flavors must be certified organic •       No non-organic ingredients are used •       USDA seal allowed •       Must list organic certification agency •       List ingredients as organic in ingredient statement
Organic 95% Rule	•       At least 95% organic ingredients •       Remaining 5% can be non-organic allowed ingredients •       Flavors must be certified organic when commercially available •       All agricultural ingredients must be organic unless not available •       USDA seal allowed •       Must list certification agency •       List ingredients as organic in ingredient statement
Made with Organic Ingredients 70%/30% Rule	•       At least 70% organic ingredients •       Remaining 30% can be non-organic allowed ingredients or non-organic agricultural ingredients •       Flavors must be natural non-gmo organic compliant •       USDA seal prohibited •       Must list certification agency •       List ingredients as organic in ingredient statement
Products with less than 70% Organic Ingredients	•       Any level of organic ingredients •       No restriction on remaining ingredients •       No certification claims can be made •       USDA seal PROHIBITED •       Only mention organic in ingredient listing

natural flavors and essential oils in tea

11.08.10
natural flavors and essential oils in tea
Posted in T Ching - blog
by Zhena Muzyka


At Zhena’s Gypsy Tea, we get an enormous number of calls from tea drinkers asking what “natural” as in “natural flavors” means. Tea drinkers are increasingly aware that “natural” is a loose term that can mean almost anything - and they are right.

The FDA loopholes on flavorings are vast, rendering the term “natural” meaningless if there is no organic certification attached that ensures auditing of ingredients and labeling laws. Organic certification ensures auditing, a level of checks and balances that would not otherwise be implemented regarding tea production.

Standards committees at retailers have created lists of chemicals that are not allowed in the products they sell, but there is not a standards committee verifying that manufacturers’ ingredients are free of these chemicals. The only way to ensure you are not ingesting chemicals when sipping flavored teas is to buy flavored teas that are certified organic.

The history of flavored teas began in China with the Tang Dynasty (AD 618-906), during which teas were flavored with plum juice, cloves, ginger, peppermint, onions, and salts.

The Song Dynasty (AD 960-1279) began the use of essential oils in tea - lightly blending their leaves with essences of lotus, jasmine petals, and chrysanthemum. According to The Book of Tea, the higher classes preferred scented and flavored teas, showing themselves to be more adventurous in taking tea.

According to The Sage Report’s US Tea is Hot Report:

“For every ten pounds sold of the higher end specialty teas - those selling over thirty dollars per pound - one hundred pounds of specialty flavored tea reaches US consumers’ cups. The middle tea market…flavored, delicious, aromatic and nicely packaged, will outpace the growing but supply-restricted (annual output for the next 5-10 years) stocks of unflavored, long leaf, orthodox teas. Purists may cringe, but the mega-marketers are gearing up for a specialty tea future that is flavored, flowered and spiced.”

Flavor Terminology

To clarify flavor terminology for our tea drinkers, I use the following descriptions:

Artificial Flavor: A flavor derived from 100% synthetic materials (not found in nature), such as Ethyl Vanillin, which is listed on the ingredients statement of some milk chocolate bars.

Nature-Identical Flavor: A term used mostly in Europe. All ingredients are man-made, but are also found naturally occurring in nature. An example is vanillin, which occurs naturally as white crystals on a vanilla bean after curing. Vanillin also has a nature-identical version (artificial) derived through the processing of lignin, which is a by-product of paper manufacturing and is an economical source of man-made vanillin. Man-made vanillin has the same chemical structure as natural vanilla. However, due to the fact it does not come from a natural source, it is termed NATURE-IDENTICAL. Both categories - ARTIFICIAL and NATURE-IDENTICAL - are coded in the United States as ARTIFICIAL.

Natural & Artificial Flavor: A flavor derived from natural and artificial ingredients.

Natural Flavor: A flavor derived 100% from the title material. An example would be a Natural Cherry Flavor, which is derived entirely from cherries. (Many companies use this term for any and all types of flavors.)

Natural WONF Flavor: This flavor must contain at least one ingredient from the title source, such as cherry. All other ingredients must come from other natural sources.

Natural Flavor Blend Flavor: All ingredients in this flavor must be natural, but none are derived from the title material. A Cherry Type Flavor, NFB is derived from 100% natural chemicals, essential oils, oleoresins, floral absolutes, solid extracts, fluid extracts, distillates, juices, and essences, but none of these ingredients are derived from cherries.

How Flavors are Created

Natural flavors are usually distilled, while artificial flavors are a blend of chemical compounds, even plastics! An example of an artificial flavor carrying agent is Propylene Glycol, which is a colorless, viscous, hygroscopic liquid. It serves as a humectant - a substance that retains moisture content. It makes the skin feel moist and soft and keeps products from drying out.

Propylene Glycol is used in anti-freeze, brake and hydraulic fluid, de-icers, paints and coatings, floor wax, laundry detergents, and tobacco, as well as in cosmetics, toothpastes, shampoos, deodorants, lotions, processed food, dog food, and many more personal care products.

The Material Safety Data Sheet (MSDS) for Propylene Glycol states:

“Implicated in contact dermatitis, kidney damage and liver abnormalities; can inhibit skin cell growth in human tests and can damage cell membranes causing rashes, dry skin and surface damage.

Acute Effects: May be harmful by inhalation, ingestion or skin absorption. May cause eye irritation, skin irritation, gastro-intestinal disturbances, nausea, headache and vomiting, and central nervous system depression.”

Natural Carrying Agent - Alcohol

Alcohol has been made for thousands of years - it’s a compound of carbon, hydrogen, and oxygen, produced when glucose is fermented by yeast. During the making of alcoholic drinks, the alcohol content is controlled by the amount of yeast and the duration of fermentation.

Fruits are used to make wines and ciders, and cereals, such as barley and rye, form the basis of beers and spirits. These substances provide the flavor associated with each individual drink. Alcohol bases evaporate during the blending process, leaving the flavor behind to work its magic on our taste buds.

Shelf Life: Natural flavors last up to one year under favorable storage methods, while artificial flavors last two solid years. Essential oils like Earl Grey’s oil of Bergamot will only last 4-8 months, while natural raspberry is reported to last only 2 weeks.

Volatility: Natural flavors tend to be more volatile than artificial. This means that they evaporate more quickly and are changeable and inconsistent - in one word, fickle.

Scent Effects

Natural scents and flavors can enhance and change moods, like clinical aromatherapy, while artificial flavors do not have the same olfactory effects. Basically, natural flavors contain the sunshine, while artificial flavors made in a lab lack it. I call my blends, “Sunshine in a cup,” due to their pure flavors. Here are some great aromatherapy benefits when using real essential oils. You can view my aromatherapy chart for tea blending at gypsytea.com.

1. Bergamot oil reduces appetite.
2. Jasmine, Cardamom, Cinnamon, and Orange Blossom are all aphrodisiacs.
3. Bergamot, Lemon, and Rose are antiviral.
4. Bergamot, Grapefruit, Jasmine, Lavender, Orange, and Lemon Verbena are antidepressants.
5. Cardamom, Juniper, Lemongrass, and Rosemary alleviate boredom and stimulate mental clarity and attentiveness.
6. Fennel, Lime, and Lemon are great detoxifiers.
7. Anise, Bergamot, Cardamom, Fennel, and Rosemary aid digestion.
8. Rose, Jasmine, and Grapefruit induce euphoric emotions.
9. Emotional coldness can be warmed by using Black Pepper, Ginger, and Grapefruit.
10. Jasmine, Lavender, and Lemon relieve headaches.
11. Chamomile and Lavender are for sleep.
12. Menopausal hot flashes can be lessened with Fennel and Roman Chamomile.
13. Poor memory is helped with Cardamom, Peppermint, and Lemongrass.
14. Bad breath is lessened with Bergamot, Cardamom, and Peppermint.
15. Bergamot, Chamomile, Grapefruit, Jasmine, Lavender, Lemon and Lemongrass, Orange Rose, Pine, and Tangerine are all used to east tension and stress.
16. PMS is helped by Bergamot, Rose, and Tangerine!

Here’s to your health, dear tea drinker! I hope this helped you gain the knowledge to be empowered to make the best choices for you and your health when it comes to flavored and scented tea options.

Original Article and more from T Ching found here: http://www.tching.com/2010/11/natural-flavors-and-essential-oils-in-tea/

Flavorings in Tea, by Flavoring Manufacturer Definition

As I prepare to set off to the Sustainable Food Convention in San Francisco next week, I thought to post something revelvant to this. But instead, or somewhat off this path but not too much, I have decided to post a very hot topic in what you need to know when you venture in to creating your own private label tea or custom tea blend with flavors, especially if you are going in to the area of organic or natural OR 100% organic.


Below is a list of definitions of flavoring categories provided by the manufacturers of flavors to the coffee and tea industry:

Artificial Flavor: A flavor derived from 100% synthetic (man-made) ingredients.

Natural & Artificial Flavor: A flavor derived from both natural ingredients and synthetic ingredients.

Natural Flavor: An example of this natural flavor would be entitled "Natural Apple Flavor". This indicates the product consists of ingredients only derived from apples.

Natural WONF: An example of this natural flavor would be entitled "Natural Apple WONF". This indicates the flavor contains at least one ingredient derived from apples and also contains other natural ingredients which replicate and apple taste. The WONF term is short for "with other natural flavors".

Natural Type Flavor: An example of this natural flavor would be entitled " Natural Apple Type Flavor". This indicates the flavor contains 100% natural ingredients. However, none are derived from an apple but the taste and aroma replicate an apple.

Organic compliant flavors can be any of the last three natural flavors. The difference is the ingredients cannot be derived from sewerage sludge or irradiated. Also. no synthetic solvent can be used in the manufacture of any ingredient. No synthetic solvent can be used as a carrier in the flavor system.

If some one is really concerned about the presence of chemicals then they should use organic blends where all the ingredients meet the requirement. One reason that the natural flavor category distinction has less relevance for non-organic products is that people mistakenly assume the rest of the “natural” ingredients in a non-organic blend such as tea, hibiscus etc are pesticide and chemical residue free which is not true. Therefore to fixate on only the flavor portion of it which is usually about two to three percent of a total blend, is not as useful as people think.

-Desiree Nelson
QTrade Teas and Herbs
Business Development
949 766 0070 x525
desiree@qtradeteas.com

Snapple Prooves our Taste for Real Tea is Improving in the U.S.!

Dr Pepper Snapple Group Inc. : Snapple Lightens Up with the Official Launch of Lightly Sweetened Teas

06/11/2012 | 08:15am

Snapple today announces the launch of new Lightly Sweetened Teas, all natural white teas sweetened with just a touch of real sugar. The teas are available in two delicious flavors: Peach Passionfruit and Cherry Pomegranate. At 80 calories per 16-ounce bottle, Snapple Lightly Sweetened Teas offer consumers a light tasting and refreshing way to quench their thirst.

Snapple launches new Lightly Sweetened Teas, all natural white teas sweetened with just a touch of real sugar, available in two delicious flavors: Peach Passionfruit and Cherry Pomegranate. (Photo: Business Wire)

http://www.4-traders.com/DR-PEPPER-SNAPPLE-GROUP-I-3017910/news/Dr-Pepper-Snapple-Group-Inc-Snapple-Lightens-Up-with-the-Official-Launch-of-Lightly-Sweetened-Tea-14364398/

"Consumers told us they wanted a light tasting, all-natural tea that wasn't too sweet, and we listened," said Regan Ebert, vice president of brand marketing for Snapple. "Lightly Sweetened Teas are a refreshing way to enjoy exceptional flavors Made from the Best Stuff on Earth®."

The national launch of Snapple Lightly Sweetened teas will be supported by an integrated marketing campaign, through a national television campaign, print and online media. Both flavors of Snapple Lightly Sweetened Teas are now available nationwide at participating retailers in individual 16-ounce bottles for $1.39 and 6-packs for $5.99. Peach Passionfruit is also available in 64-ounce bottles.

For full details and a list of participating retailers, visitwww.Snapple.com.

About Snapple

Snapple, a brand of Dr Pepper Snapple Group (NYSE: DPS), is a leader in great-tasting premium beverages. Founded in 1972 by three childhood friends, Snapple got its start in Greenwich Village, New York and is now available throughout the United States. Snapple prides itself on developing, producing and marketing a wide variety of premium beverages, including ready-to-drink iced teas, juice drinks, 100% juices and water. DPS is a leading producer of flavored beverages, marketing Snapple and 50-plus other brands across North America and the Caribbean. For more information, visitSnapple.com or DrPepperSnapple.com. For the brand's latest news and updates, follow Snapple atFacebook.com/Snapple or Twitter.com/Snapple.

Jamba(R) Acquires Talbott Teas(TM)

This news makes me wonder what would have happened had I hung on to my tea brand, or improved upon...

Jamba(R) Acquires Talbott Teas(TM) - Expands Consumer Products Platform

Jamba to Begin Sale of Specialty Teas through the Acquisition of Boutique Tea House, Talbott Teas; Master Certified Tea Blender and Talbott Teas Founder, Shane Talbott, to Join Jamba Juice(R) in Role of Vice President Innovation

EMERYVILLE, Calif., Feb 17, 2012 (BUSINESS WIRE) -- Jamba Juice CompanyJMBA +1.12% announced today the acquisition of Talbott Teas(TM), a Chicago-based boutique, premium tea company, recently profiled on ABC-TV's "Shark Tank". Talbott Teas founder, certified master tea blender, Shane Talbott, has a unique talent for blending specialty ingredients to produce exceptional, award-winning teas that appeal to tea aficionados and conventional consumers alike, and which Oprah Winfrey selected as one of her "Favorite Things" in 2010.

"Talbott Teas is part of our strategy for growth through the acquisition of lifestyle specialty brands that fit well with the Jamba brand and our positioning as a leading health and wellness company," said James D. White, Chairman, President, and CEO, Jamba Juice Company. "Jamba shares Shane's commitment to using the finest quality ingredients to create premium tea blends that are flavorful and healthful, but designed with a flair that only a visionary trendsetter could achieve. I welcome his creativity on our team."

Steeped in style and wrapped in museum quality, designer packaging, Talbott Teas is reinventing the premium tea category with their luxurious, but accessible collection of caffeinated and decaffeinated loose leaf, all-natural teas blended with real fruit, flowers, herbs and spices to create delightfully decadent flavor profiles. Talbott Teas tea blends are available in 23 customizable flavors, including the award winning "Chocolate Lover" teas. All tea blends are made from high quality ingredients, certified free-trade and 100% natural with no artificial flavors, preservatives, or colors.

Talbott Teas appeared on the "Shark Tank", which airs Fridays from 8:00-9:00 p.m. ET on the ABC Television Network, gives nascent entrepreneurs the chance to dramatically alter the course of their business by making a possible deal with the Sharks --self-made millionaires in search of innovative investment deals to bankroll. While on the show, the founders of Talbott Teas received an offer from venture capitalist Kevin O'Leary, who subsequent to the show worked with fellow Sharks Daymond John and Barbara Corcoran to seal a bigger deal with the iconic leading national smoothie and specialty healthy lifestyle brand, Jamba Juice.

"Jamba is a progressive, specialty beverage brand with a passion for creating innovative, trendy offerings that support healthier lifestyles," said Shane Talbott, founder Talbott Teas. "Jamba has broad reach and appeal among consumers who are seeking premium products at affordable pricing that are better-for-you and great tasting. The Sharks connected us with Jamba Juice and we could not have found a better company with whom to align and grow our brand."

Talbott Teas' products are available online at QVC, fine retailers, and the Talbott Teas website as well as specialty retailers, gourmet grocers, salon spas, select luxury hotels and restaurants throughout the Chicagoland area. Talbott Teas will also be available for sale at Jamba Juice locations. The purchase of Talbott Teas is part of Jamba's strategy to accelerate growth through the acquisition of specialty, lifestyle brands that support Jamba's expansion into new and relevant product categories.

About Jamba Juice Company

Founded in 1990, Jamba Juice Company JMBA +1.12% is a leading restaurant retailer of better-for-you beverage and food offerings, which include great tasting fruit smoothies, fresh juices and teas, hot oatmeal made with organic steel cut oats, fruit and veggie smoothies, Whirl'ns(TM) Frozen Yogurt, breakfast wraps, sandwiches and wraps, California Flatbreads(TM), and a variety of baked goods and snacks. As of January 3, 2012, there were 750 locations in the United States consisting of 307 Company-owned and operated stores and 443 franchise-operated stores. In addition, as of January 3, 2012 there were 19 international locations. For more information on Jamba Juice, please visit: www.jambajuice.com , become a fan on Facebook at www.facebook.com/jambajuice or follow us on Twitter @JambaJuice.

About Talbott Teas

Talbott Teas was founded in 2003 by Shane Talbott, former owner of the highly regarded Troupe salon and spa in Chicago and stylist to the stars. Utilizing only Fair Trade Certified tea growers, Talbott Teas creatively combines the finest all natural and organic whole-leaf teas which are artfully blended with fruit, flowers, herbs, and spices, to create sophisticated, elegant tea blends, free of artificial flavors, colors, and preservatives. Talbott Teas is a lifestyle brand that gives consumers a healthy and tasteful experience through its collection of luxury, designer, whole-leaf teas and accessories that are steeped in style. Profiled on the Oprah Winfrey show and selected as one of Oprah's "Favorite Things" in 2010, Talbott Teas are available in 23 blends. For more information on where to purchase Talbott Teas visit our website at www.Talbottteas.com .

Forward-Looking Statements

This press release (including information incorporated or deemed incorporated by reference herein) contains "forward-looking statements" within the meaning of the Private Litigation Reform Act of 1995. Forward-looking statements are those involving future events and future results that are based on current expectations, estimates, forecasts, and projects as well as the current beliefs and assumptions of our management. Words such as "outlook", "believes", "expects", "appears", "may", "will", "should", "anticipates", or the negative thereof or comparable terminology, are intended to identify such forward looking statements. Any statement that is not a historical fact, including estimates, projections, future trends and the outcome of events that have not yet occurred, is a forward-looking statement. Forward-looking statements are only predictions and are subject to risks, uncertainties and assumptions that are difficult to predict. Therefore actual results may differ materially and adversely from those expressed in any forward-looking statements. Factors that might cause or contribute to such differences include, but are not limited to, those discussed under the section entitled "Risk Factors" in our reports filed with the SEC. Many of such factors relate to events and circumstances that are beyond our control. You should not place undue reliance on forward-looking statements. The Company does not assume any obligation to update the information contained in this press release.

Photos/Multimedia Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=50173719&lang=en

SOURCE: Jamba Juice Company

        
        For Jamba Juice Company or Talbott Teas: 
        Janice Duis, 510-596-0286 
        Company Communications
        

Single Serve continues to grow...let us help your brand win that segment in tea

Single Serve Snapshot from 2012

Overall single serve beverage market tripled to an $8 billion business in 2011.[1]

“Single-serve coffee pods are expected to reach $959.1 million in retail sales this year, up 32 percent, according to Euromonitor International. That would account for about 10 percent of the overall coffee market, which is expected to grow by only 6 percent this year.”[2]

o   Celestial Seasoning's single-cup pods grew 162% from April 2010-2011.[3]

o   Dunkin Donuts “In the quarter ended June 30, sales of K-Cups — single-serving coffee pods designed for home use with Keurig brewers — accounted for 40 percent of same-store sales increases at domestic Dunkin’ Donuts locations, which account for more than 70 percent of Dunkin’ Brands’ total revenue.”[4]

o   Starbucks single serve sales were $1.2 billion (15% of the overall single serve market) for 2011 alone.[5]

o   Snapple recently partnered with Green Mountain Coffee Roasters to create a new line of single serve iced tea products, expected to hit stores in 2013. [6]

The world’s largest beverage brands are investing heavily in developing single serve brewing devices.

CBTL (Coffee Bean & Tea Leaf)

                Tassimo

(Kraft Foods)

 Verismo (Starbucks)

                  

Keurig   (Green Mountain Coffee) 

Single Serve Tea Products

§  Cozy Chamomile Herb Tea K-Cup® Pack

§  Earl Grey Tea K-Cup® Pack

§  English Breakfast Tea K-Cup® Pack

§  Green Tea K-Cup® Pack

§  Green Tea with Pomegranate K-Cup® Pack

§  Mint Medley Herb Tea K-Cup® Pack

§  Green Tea Chai K-Cup® 

§  Chai Latte K-Cup® Pack

 

Hot

§  Antioxidant Max™ Blackberry Pomegranate Green Tea K-Cup® Pack

§  Antioxidant Max™ Green Tea Blood Orange Star Fruit K-Cup® Pack

§  Decaf Green K-Cup® Tea

§  English Breakfast K-Cup® Black Tea

§  Green K-Cup® Tea

§  India Spice Chai K-Cup® Tea

§  Lemon Zinger® K-Cup® Herbal Tea

§  Mandarin Orange Spice® K-Cup® Herbal Tea

§  Sleepytime® K-Cup® Herbal Tea

 

Iced

§  Half and Half Perfect Iced Tea

§  Southern Sweet Perfect Iced Tea K-Cup® Pack

§  Sweet Lemon Iced Tea K-Cup® Pack

§  Sweet Peach Iced Tea

§  Sweet Raspberry Iced Tea

§  Unsweetened Black Iced Tea K-Cup® Pack

 

 

§  Peppermint Herbal Tea

§  Serenity Green Tea

§  English Breakfast Tea

§  Chai Tea

§  Pomegranate Berry Fusion Tea

§  Earl Grey Tea

§  Mango Tea

 

§  Tazo®Awake™ Tea

§  Tazo®Zen™ Tea

 

§  Peppermint Tea

§  Lemon Blueberry Passion Tea

§  Chinese Green Tea

§  English Breakfast Tea

§  Chai Tea

§  Chamomile Tea

§  Earl Grey Tea

§  English Breakfast Decaf Tea

§  Cranberry Twist Green Tea

§  Orange Indulgence White Tea

 

 

§  English Breakfast Decaf Tea

§  African Rooibos Tea

§  Earl Grey Tea

§  Green Tea

§  Pure Camomile Tea

§  Pure Peppermint Tea

§  English Breakfast Tea

---

[1] Read more: http://www2.tbo.com/lifestyles/business/2012/sep/20/starbucks-single-serving-coffee-brewer-also-makes-ar-507149/

[2] Read more: http://www.chicagotribune.com/business/breaking/chi-snapple-kcups-to-roll-out-next-year-20121009,0,6946616.story

[3] Read more: http://digital.bnpmedia.com/display_article.php?id=1079065

[4] Read more: http://nrn.com/article/dunkin-brands-k-cups-key-2q-sales-success#ixzz28pG5Iqtt

[5] Read More: http://www2.tbo.com/lifestyles/business/2012/sep/20/starbucks-single-serving-coffee-brewer-also-makes-ar-507149/

[6] Read more: http://www.chicagotribune.com/business/breaking/chi-snapple-kcups-to-roll-out-next-year-20121009,0,6946616.story

BeverageIndustry – June 2012 : Category Focus, BeverageIndustry — June 2012

Category Focus

Stephanie Hildebrandt

Tea competes for share

Premium brands, myriad varieties entice consumers

WHEN IT COMES TO TEA, THE MORE “COLORFUL” THE BETTER. GREEN, BLACK, white and red teas remain popular varietals, while numerous flavor options, health benefits and positionings have helped to propel the category even further, according to experts.

Last year, sales of tea and ready-to-drink (RTD) tea increased 5.1 percent, reaching $4.3 billion in food, drug, convenience stores and mass merchandisers, excluding Walmart, according to Mintel’s July 2011 “Tea and RTD Teas – U.S.” report. Canned and bottled tea as well as refrigerated RTD tea drove growth in the category, the Chicago-based market research firm reported.

The canned and bottled RTD tea segment accounted for just more than 50 percent of the market share in the respective channels and showed the largest growth in the category from 2009 to 2011 at 19.2 percent, Mintel noted. The second-largest segment, refrigerated RTD tea, made up 13 percent of total category sales in 2011 and grew more than 15 percent from 2009 to 2011, the report notes. Bagged and loose tea sales growth remained small compared to the RTD segment, increasing 3.5 percent from 2009 to 2011.

Instant tea mixes performed the worst in the category, declining 8.1 percent from 2009 to 2011, the report states. Mintel does not expect the segment to recover, predicting a 13 percent decline from 2011 to 2016. In order to succeed in the instant tea segment, manufacturers will need to introduce mixes from brands that have established themselves in the RTD tea segment, the Mintel report suggests. Additionally, growth opportunities might be present among the African-American and Hispanic communities because both groups exhibit higher-thanaverage household consumption of instant tea mixes, according to the report. African- American consumers also report drinking RTD iced tea more often than the average, it adds.

OPTIONS ABOUND

Consumers are looking for healthier alternatives to soft drinks, says Richard Haffner, head of beverages research with Euromonitor International, Chicago. Tea can offer a healthy solution and RTD tea is a convenient format that delivers it, he says.

In the RTD tea segment, lemonade-and-tea drinks have gained in popularity. Both Snapple and Sweet Leaf launched lemonade-and-tea beverages this year. Dr Pepper Snapple Group, Plano, Texas, launched Snapple Diet Half ‘n Half Lemonade Iced Tea, a blend of lemonade and iced tea made with green and black tea, and Stamford, Conn.-based Nestlé Waters North America’s Sweet Leaf subsidiary launched Organic Half & Half Lemonade Tea.

The lemonade-and-tea flavors also have crossed over into the alcohol category. This year, St. Louisbased Anheuser-Busch, a wholly owned subsidiary of Anheuser-Busch InBev, expanded its Michelob Ultra beer brand with the limited-edition launch of Ultra 19th Hole Light Tea & Lemonade. The flavored malt beverage (FMB) contains 4 percent alcohol by volume, natural flavors and is sweetened with stevia-derived rebiana-A, making it a lighter alternative to traditional FMBs, the company says. Late last year, Cincinnatibased Arizona Beverage Co. Launched an FMB that merges tea and lemonade called Arnold Palmer Hard.

Superfruit flavors, such as pomegranate, acai and goji berry, also are being added to tea drinks to enhance their health and wellness properties, Haffner says. However, lemon remains the top flavor in the tea category, says Garima Goel Lal, senior beverage analyst at Mintel.

“There’s also other additives going [into teas] such as vitamins and stimulants, [which are] looking to segment the category along two lines: one is health properties, and the other is tea has caffeine so it can be a stimulant, so looking to make a more healthy appeal to an energy-type drink,” Haffner says.

Tea manufacturers are marketing the various health benefits of tea consumption, such as its reported effect on lowering cholesterol, and herbal teas are experiencing success as consumers increasingly use them for at-home medicinal remedies, said Los Angeles-based IBISWorld industry analyst Agata Kaczanowska in a statement.

Although they take a backseat to RTD teas, loose teas are showing promise, especially those with specialty and upscale positioning, Mintel's Goel Lal says. Plus, tea houses have been growing in popularity, she adds. According to World Tea Media, the tea retail trend hit its stride in 2011 and will continue its growth streak throughout 2012. Currently, the United States has approximately 3,500 tea retail locations, which is in contrast to the more than 25,000 U.S. coffeehouses, said Kim Jage, sales and marketing director for Las Vegasbased World Tea Media, a division of F+W Media, in a statement.

POLARIZATION AND PACKAGING

Overall, a premiumization trend is taking place in the tea category, which can take form in tea varietals and superior blends of teas, Haffner says. For instance, green, white and red teas can have a premium appeal. Likewise, Lipton Pure Leaf Iced Teas from the Pepsi Lipton Tea Partnership make use of superior fruit-andtea blends, he adds.

Supporting the premiumization trend, the tea industry is working to elevate consumers’ understanding about quality teas.

“The tea industry is educating tea consumers about quality, thus improving their palate and desire for better tea,” World Tea Media’s Jage said in a statement. “We’re still a bit behind here, but many retailers and manufacturers are making progress, and consumers are increasingly looking to buy better teas; they want to know what makes certain teas high quality rather than relying on the manufacturer’s word or enticing packaging.”

Consumers not only are purchasing superpremium teas, but also private-label teas, causing mid-priced teas to shrink, which denotes a trend toward polarization, Mintel’s Goel Lal says.

“Consumers do not perceive enough differentiation in terms of product attributes between mid-priced brands and private labels,” she explains. “Therefore, they decide to buy the cheaper brand, but at the same time they also are looking at the superpremium teas … which basically have proliferated in terms of flavor and quality, but also in packaging.”

In addition to positioning and flavor innovation, RTD teas are turning to packaging to attract consumers. The economic downturn influenced consumers to buy bulk packaging to save money. Therefore, the RTD tea category responded by introducing family-size packaging as well as multi-packs, Euromonitor’s Haffner explains.

During the recession, Atlanta-based The Coca-Cola Co. Introduced familysize packaging for its Gold Peak RTD tea brand that is merchandised in the refrigerated section, which helps the brand better compete, Mintel’s Goel Lal says. Gold Peak increased 12. 3 percent in the 52 weeks ending April 15 in food, drug, gas, convenience stores and mass merchandisers, excluding Walmart, club and liquor stores, according to Chicago-based SymphonyIRI Group data. Tea brands are increasingly finding their way into the refrigerated section in multi-serve sizes to increase their visibility and help them compete with juices, Goel Lal adds.

On the single-serve side, $0.99 pre-priced cans, which appeal to price-sensitive shoppers, performed well last year, she says. The prepriced trend is expected to continue throughout 2012, she adds.

Convenience via single-cup pods also could help grow the bagged and loose tea segment, according to the Mintel report. Just as the popularity of single-cup brewing systems has boosted the coffee category, these machines could have a positive side effect for tea, the report states. Mintel research found that 23 percent of all tea drinkers brew tea in single-cup beverage makers.

Based on the success of Celestial Seasonings’ single-cup tea pods, Mintel suggests that the pod packaging format might be the solution to the slow sales taking place in the overall bagged and loose tea segment. The brand’s single-cup pods grew 162 percent in the 52 weeks ending April 17, 2011, in food, drug, convenience and mass merchandisers, excluding Walmart, the report notes.

VARIETALS AND SWEETENERS

In the lead as the most popular tea varietal in the United States is green tea, according to Mintel’s “Tea and RTD Teas – U.S.” report. Approximately 77 percent of all tea drinkers report drinking green tea, while 70 percent of tea drinkers drink black tea, the report states. The next most-popular option is tea with fruit flavors or fruit juice, with 54 percent of tea drinkers opting for hybrid beverages. However, World Tea Media reports that blended teas took the No. 1 spot in terms of popularity with green tea as the second most popular variety for U.S. tea introductions, according to a Rockville, Md.-based Packaging Facts report titled “Tea and Ready-to-Drink Tea in the U.S., 4th Edition.”

This year, Breezy Spring LLC, Lakeland, Fla., launched Swirl Tea, which is a cold-brew green tea. World Tea Media expects this introduction to spark a larger consumer base and awareness of cold-brew green tea. Similarly, Twinings of London showcased its line of all-natural cold-brewed iced teas at this year’s Natural Products Expo West show. The teas are available in the following varieties: Peach, English Classic, Lady Grey, Green Tea with Mint, and Mixed Berries.

Last spring, Rancho Cucamonga, Calif.-based SereniTea launched a line of U.S. Department of Agriculture-certified organic green teas in single-serve liquid packets. The tea mixes can be poured into a hot or cold beverage, the company says.

Nearly half of tea drinkers say they drink herbal teas, such as rooibos or chamomile, and one-third consume white and oolong tea, according to Mintel’s report. Pu-erh and kombucha are still niche varieties with just 10 percent consumption incidence among tea drinkers, the report notes. Women are more likely to drink fruit-flavored teas and herbal teas, while pu-erh and kombucha teas appeal more to men, it adds.

Nevertheless, flavor is the No. 1 reason why consumers drink tea, according to the Mintel report. This explains why flavor innovation in RTD teas helped to drive growth in the segment, the report states. It also calls out the need for future flavor innovation in order to keep driving sales. The second most popular tea attribute is relaxation, and more than half of all tea drinkers report drinking tea for its antioxidant content, the report adds.

Consumers are not particularly fond of artificial sweeteners in their tea, however, because it can undermine the product’s pro-health image, according to the report. More than half of tea drinkers do not like the taste of artificial sweeteners in tea, and 42 percent will not buy tea sweetened with artificial sweeteners, it states. More than half of tea drinkers also believe that RTD teas contain too much sugar. As a result, nearly half of tea drinkers buy fewer RTD teas and brew tea more often at home to avoid consuming too much sugar and also to save money, the report states.

Earlier this year, Bethesda, Md.-based Honest Tea, a wholly owned subsidiary of The Coca-Cola Co., launched Not Too Sweet Tea, which uses organic stevia extract and organic cane sugar to lower the sugar and calorie content of the sweetened tea beverage.

All-natural sweeteners such as stevia, cane sugar and honey are increasingly making their way into RTD formulations, Euromonitor’s Haffner says, because they carry the benefits of using a higher-quality ingredient and being able to label a product as all-natural. Mintel’s Goel Lal adds that natural claims are very positive in the tea category because of its pro-health positioning. An all-natural platform makes the product even more appealing to consumers, she says.

HYBRID DRINKS

In addition to the lemonade-and-tea combinations, tea is making an appearance in juice drinks and other categories. This spring, Purchase, N.Y.-based PepsiCo announced its new Trop50 line of low-calorie tea-infused juices. The line combines peach and white tea, raspberry and green tea, and pear lychee and white tea.

To stay ahead of the innovation curve, Haffner expects tea-makers to maintain a focus on health and wellness by introducing antioxidant-rich varieties, and increase the energy attributes of the drinks by adding ingredients such as B vitamins, ginseng and guarana. Furthermore, to compete with soft drinks, the category might test sparkling tea varieties, he says.

The category also should put some focus on America’s aging population, whose support of tea’s anti-aging and health attributes will be a strong source of future demand and will drive sales of specialty products, especially for green and herbal teas, according to IBISWorld.

Mintel analysts expect total tea category sales to increase 8 percent to $4.7 billion this year, and forecast sales at $5.1 billion in 2013, which is an increase of 8. 3 percent. The RTD canned and bottled tea segment is expected to reach nearly $1.6 billion this year, while the bagged and loose tea, RTD refrigerated tea and instant tea mix segments are forecast to reach $798 million, $394 million and $272 million, respectively, this year.