SBG on Embracing the Unrivaled Popularity of Tea and Coffee Beverages
As we enter the new year, Superior Beverage Group is thrilled to unveil an array of exciting new products set further to elevate the global appeal of alcoholic tea and coffee.
In 2023, beverage categories signaled a desire to "mix things up" in the tea and coffee categories, aiming to provide many options for every style and taste. The realm of these flavorful beverages has experienced a remarkable surge, showcased by upcoming innovations like New Belgium's Voodoo Ranger Hard Charged Tea, CANarachy's Nasty Beast Hard Tea, Smirnoff Smash Tea, and Dunkin's Spiked Iced Coffee and Tea leading the way. At the same time, Twisted Tea continues to hold a strong position in the market. Distributors assert its enduring popularity and expected growth through 2024, solidifying its status as a versatile and in-demand choice within the beverage landscape.
Market research by Circana reveals that, for a 52-week evaluation ending in August, the RTD tea and coffee categories have generated a combined $8.3 billion in dollar sales across the U.S. multi-outlets and convenience stores. Bottled tea has experienced a commendable 6.4% year-over-year increase, reaching sales of $4.5 billion. Notably, dollar sales of cappuccino/iced coffee have surged by 9.7%, totaling nearly $3.6 billion. These figures underscore the significant demand for ready-to-drink beverages, emphasizing that consumers look for flavor and diversity, whether these new products are categorized as FMB or RTD.
The Unrivaled Popularity of Tea and The Power of Coffee:
Tea, the second most consumed beverage globally after water, has firmly embedded itself in the daily lives of Americans, with over 159 million indulging daily and contributing to 85 billion servings in 2021. Fueled by a growing health consciousness, this shift prompts consumers to choose nutrient-dense and wholesome options over traditional sugary beverages. Additionally, with 51% of Americans strongly favoring flavored coffee, the iced coffee category presents an opportunity for SBG and other industry players to diversify offerings, meeting consumers' varied preferences driven by occasions like 'On the go,' 'Need an energy boost,' and 'It's too hot.'
Canton, Massachusetts-based Dunkin' has boldly entered the alcoholic beverage arena with Dunkin' Spiked Iced Tea and Dunkin' Spiked Iced Coffee. Featuring an alcohol by volume (ABV) of 5%, the Dunkin' Spiked Iced Tea boasts four signature flavors: Slightly Sweet, Half & Half, Strawberry Dragonfruit Refresher, and Mango Pineapple Refresher. The Dunkin' Spiked Iced Coffee, with an ABV of 6%, offers a delightful array of flavors, including Original, Caramel, Mocha, and Vanilla.
As we embark on a new year, the mass appeal of tea and coffee continues to resonate across the ready-to-drink beverage landscape. SBG is excited to be at the forefront of this trend, introducing innovative products that cater to consumers' evolving tastes and preferences. The future looks promising for the tea and coffee industry, and we are committed to delivering excellence and satisfaction with every sip.
