Stores can do a lot to boost sales of ice tea

Experts are looking forward to this year’s ice tea season with cautious optimism in spite of the recession. The market of ice tea is still dominated by traditional lemon and peach flavours. According to István Matus, operative CEO of Szentkirályi Ásványvíz, the real question is which new flavour will be able to join these from the flood of innovations appearing. The target group of ice is basically the 16-40 age group. Anikó Ágh a junior brand manager from FÁÜ Zrt., confirms that the 20-34 age group is the biggest target group for Lipton, while the 15-19 age group is producing the fastest growth. Market penetration of ice teas has reached 55 percent among consumers of soft drinks in Hungary and per capita consumption is also higher than in neighbouring markets. In terms of flavour, green teas are showing the fastest growth at the expense of black teas. 0,5 litre and 1,5 litre sizes are the most popular in PET bottles in retail, while 0,2 or 0,33 litre bottles are preferred by the HoReCa sector. In the opinion of László Szilágyi, managing director of Rauch Hungária Kft., the market weight of bag in boxes has dropped because bottles are more convenient for consumers to handle. Experts agree that consumption is highly seasonal. Demand for smaller unit sizes goes up in the summer, owing to the need for immediate thirst quenching. consumption. Éda Pogány, communications director of Coca-Cola Magyarország has pointed out that the use of refrigerated displays is essential for 0,5 litre PET products. Well known brands can expect to remain successful in the long run, as brands account for over 70 percent of total consumption. However, consumer often shift from one of the three leading brands (Nestea, Rauch, Lipton) to another owing to promotions. In-store activity and displays play an extremely important role in selling ice tea. Refrigeration and the constant filling of shelves are also important preconditions of success. Gramex is another major player in the market of ice tea, being the manufacturer of most leading private labels and also exporting to 6 countries. According to János Gréczi, managing director, the success of their Sconto product range is due primarily to its good price/value ratio. They have achieved a tenfold increase in sales in the past five years and expect to see 25-30 percent annual growth in the future as well. Pepsi (FÁÜ Zrt.) will use TV, cinema and outdoor campaigns to support Lipton, especially green tea this summer. They will also conduct intense in-store activity with samplings and price promotions. Coca-Cola Magyarország will use impulsive and well placed palette placements to promote multi-serve products. Displays and samplings will also be used to support product launches. No definite demand for products with healthier ingredients or other added value is detectable yet, but the health trend is expected to catch on following the end of the crisis. The popularity of green and red teas is already growing. A 30 percent lower sugar content compared to competitors is believed to be an important element in the success of Rauch IceT, which is made with antioxidant and without preservatives. Gramex can manufacture 0,5 and 1,5 litre sizes with sugar or sweetener, as required by the customer. The sports cap used on its Sconto and Vitalade brands makes immediate consumption more convenient. It has been pointed out by Éda Pogány that they are planning two product launches for the summer: Enviga intended to create a new category and a new version of NESTEA Vitao Zöld Tea. Rauch IceT Mojito is an innovation by Rauch for the 2009 season. It is an alcohol-free cocktail flavour which can be consumed in itself.