Philippine Ready-to-Drink Tea Industry

Topics: Iced tea, Tea, Lipton Pages: 11 (1636 words) Published: September 13, 2012

RTD Tea in the Philippines
• The Ready-to-Drink (RTD) industry in the Philippines was relatively underdeveloped

back in 2004. Consumers mostly purchased carbonated soft drinks, which dominated store shelves, both in the modern and traditional trade.
• Also, at that time, the still or non carbonated beverages comprise only a small portion

of the beverage market. The products under this sector include energy drinks, iced tea and juices. • However, the only brands dominating the RTD tea market were Nestea and Lipton but

these brands were quite pricy for regular consumption.
• In that same year, the Universal Robina Corporation saw an opportunity since

consumers became more conscious of what they ate and drank at the same time convenient and affordable, so, the URC launched a new product –C2. • This resulted to other companies

C2: Number of bottles sold
After the launching, first month - 100,000 Over the next three years, monthly - 30,000,000

noticing the profitability of noncarbonated drinks, which brought forth many competitions adopting the same PET and similar pricing as the URC’s C2. • In 2010, the total RTD Tea industry was valued at 551.9 million pesos, with the various competitors producing a total of 487,323,943 bottles of tea annually. However, C2 is still considered as the market leader.

Source: RTD Tea Industry in the Philippines, Chan et al

• Since the introduction of the C2 in the market in 2004, the RTD tea market enjoyed a

steady volume growth.

Volume Growth per year, 2004-2011
12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% 2004 2005 2006 2007 2008 2009 2010 2011

Source: RTD Tea Industry in the Philippines, Chan et al

• As seen in the graph, there was an abrupt decrease in the volume growth percentage of

RTD teas. This was because of the aggressive behaviour of other categories such as the RTD fruit/vegetable juice and powdered tea concentrates. These categories introduced other healthier variants into their mixes. With this, RTD teas countered the other categories by introducing new ingredients that promise to address the specific needs of the body such as weight loss, increased brain performance,, etc. • The decrease from 2010 to 2011 volume growth could be attributed to macroeconomic

factors such as the increase in the prices of basic commodities and utilities.

RTD Tea: Target Market
• The target market of ready-to-drink tea, in general, is the:

Middle to High income bracket consumers



Why them? They can afford consumption for such beverages since they have more disposable income. Since they have access to various ways of media and advertisement, they are more aware of the health and wellness needs.

Leading Flavours of RTD Tea

• As for the leading flavours of RTD iced teas, lemon is still the most common.

Followed by fruit flavoured iced teas such as apple, strawberry, raspberry and lychee, as well as, green tea iced teas.

Brand Shares of RTD Tea
Market Share

C2 One Lipton Magnolia Others

Source: RTD Tea Industry in the Philippines, Chan et al

• The chart above shows the market share of the leading brands for the RTD tea market.

Still, Universal Robina Corporation’s C2 Cool & Clean remains to be the market leader having 67.50% of the total market shares. Followed by Zest-O Corporation’s

One with 10.70%, Pepsi Co.’s Lipton with 7.20%, San Miguel Corporation’s Magnolia with 4.90% and other brands with 9.70%.

C2 Cool & Clean
(Universal Robina Corporation)

Flavours/Variants: - Green Tea - Lemon - Peach - Orange - Apple - Forest Fruits - Strawberry - Mixed Berries - Pine-Orange

Sizes: - 355 mL - 500 mL -1L - 1.5 L

Flavour Green Tea Lemon Peach Orange Apple Forest Fruits Strawberry Mixed Berries Pine-Orange Green Tea Lemon Peach Orange Apple Forest Fruits Strawberry Mixed Berries Pine-Orange Lemon Apple Lemon Apple



355 mL


500 mL...
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