Tea blends trends to create a growth cocktail

Feb. 19 - This blog is based on the report Foodservice Tea Market Trends in the U.S. Save 10% at checkout with the code PFSAVE10.

A bright future 

Given current industry momentum and tea’s pivotal role in helping limited-service players grow lunch and afternoon sales, we believe tea sales growth rates will trend slightly upward over the next few years, growing 5.1% in 2016 and 5.3% in 2017.

Recent developments buoy our forecast, including Starbucks’ leveraging of the Teavana brand to grow its own tea sales, Peet’s move to add Mighty Leaf Tea to its menu in a similar fashion, tea additions and upgrades among a slew of major players, continued growth in tea foodservice and retail chains such as Argo Tea Café and DAVIDsTEA to drive increased awareness, interest and usage of a broadening variety of teas.

What’s hot in hot tea?

Tea possesses the seamless ability to meld healthfulness, flavor and variety into a single cup, bridging new with old, adventure with tradition, health with indulgence, and it can weave multi-note flavors in the bargain-keys to its growth positioning.

Rooibos also suggests the power of sourcing: the tea has gained momentum in the last four years, with menu penetration up 75%, allowing menu developers to leverage sourcing/origin as part of menu descriptions.

• Café Gratitude I am Precious - Caffeine-free African rooibos, renowned for is minerals, vitamins and antioxidants.
• Nomi Royal White Darjeeling Tea - Distinct Himalayan rare white tea carefully picked; muscatel flavor with light earthy fruit essence.

Matcha, a finely ground powder of specially grown and processed green tea, is the new up and comer, buoyed by the strong premiumization trend within the tea category.

Marketers will need to offer more explanation of these premium menu items to educate patrons to incentivize trial, as exemplified by this Teavana tea:

• Teavana Matcha Japanese Green Tea- Traditionally used in the Japanese tea ceremony, this top quality green tea powder is hand-made from the youngest gyokuro leaves.

-- David Morris