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Sunday, August 8, 2010

Lipton Brisk Iced Tea - the hottest trend in the beverage category.

If you're in the non-alcoholic beverage industry, it's no secret the iced teas are all the rage these days. There are many options for cheap iced teas, often priced at 99-cents, such as Lipton Brisk Iced tea from Pepsi Co., the new-to-the-game Peace teas from Coca Cola Co., and of course the long-time anchor of the value tea's, Arizona Iced teas.

While the product margin varies by distribution method, a retailer can usually expect  ~33% GP, assuming you're selling at the manufacturer's suggested retail price, or msrp.

Despite the low transaction ring, the iced tea is a traffic driver for value-conscious customers looking for an alternative to high-priced energy drinks. Interestedly enough, most retailers are seeing a downward trend in the energy drink market, most likely due to market saturation and high retail prices. Amid economic recessions, unemployment trends, and lower standards of living for many Americans, consumers have shown that paying a buck for an iced tea versus ~$4 for a can of their favorite energy drink such as Red Bull, Monster, or Rockstars, is a much easier pill to swallow.

As the energy drink market has had slight declines throughout 2009 and 2010, the Iced Tea category shows exciting growth. Be sure to allot space for Brisk top sellers such as Raspberry and Strawberry Melon, Razzleberry from the Peace Tea line, and nearly as much Arizona Iced tea as you can fit in the tea door. This will help ensure your corner store stays on target with the changing needs of your customers.

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