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Amid warm scones and strawberry preserves, tea lovers in Akron, Ohio, get to enjoy a hot cup of their favorite Yorkshire gold or Darjeeling inside their favorite supermarket. It's all part of Mrs. Ticklemore's, West Point Market's British-themed tearoom that accommodates up to 40 people. The existence of Mrs. Ticklemore's demonstrates growing consumer and retail interest in tea. Young and old alike

Carol Angrisani

January 29, 2007

7 Min Read
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CAROL ANGRISANI

Amid warm scones and strawberry preserves, tea lovers in Akron, Ohio, get to enjoy a hot cup of their favorite Yorkshire gold or Darjeeling inside their favorite supermarket.

It's all part of Mrs. Ticklemore's, West Point Market's British-themed tearoom that accommodates up to 40 people.

The existence of Mrs. Ticklemore's demonstrates growing consumer and retail interest in tea. Young and old alike are drinking tea for the taste, aroma and, especially, the antioxidants.

Such health aspects appeal to West Point Market's upscale clientele, especially its large baby boomer demographic. “Baby boomers are switching from coffee to tea,” said Rick Vernon, chief executive officer.

The single-unit West Point Market is not alone in emphasizing tea. Major chains, too, are promoting the category, especially the reported health benefits of the beverage.

Pleasanton, Calif.-based Safeway's new “Good to Know” online nutrition guide, for instance, highlights the fact that green and black tea contain flavonoids, naturally occurring compounds that have antioxidant properties.

“Drinking tea has been shown to reduce the incidence of coronary heart disease and many gastrointestinal cancers, and to enhance immune function,” the Safeway guide states.

Indeed, “there's a lot more knowledge about the health benefits of tea,” said Joe Simrany, president of the Tea Council of the USA, New York, the promotional and educational arm of the tea industry.

Sales of bagged/loose tea were down 3.6% in food, drug and mass to $688.5 million for the 52 weeks ending Dec. 31, 2006, according to Chicago-based Information Resources Inc. But the tea industry is confident the healthy positioning of the category will help grow sales.

Likewise, specialty teas are gaining more appeal. Mrs. Ticklemore's Tearoom pours only Taylors of Harrogate specialty tea, a brand that's also the top seller on West Point Market's store shelves. Taylors of Harrogate is joined on the retail floor by other specialty brands, including Rishi organic tea and Harney & Sons.

West Point Market just expanded its specialty assortment by adding a new line of tea from Republic of Tea that focuses on specific needs. Selections include “Get a Grip,” tea designed for women who suffer from premenstrual syndrome, “Get Charged” for energy and “Get Lost” for weight control.

It also carries Tea Forte, a line of tea that comes packaged in pyramid-shaped tea bags that allow the water to flow freely around whole leaf tea. Tea Forte is sold by the box, and also in gift packs. Selections cost from $9.99 for a set of nine teas to $19.99 for a combination gift-pack of tea and tea cups.

“Specialty tea is being seen more and more as a gift item,” Vernon noted.

Along with gift sets, West Point capitalizes on the popularity of tea by selling tea pots, infusers and books — including one on how to have a tea party — on an endcap.

West Point's tea offerings exemplify how retailers are marketing tea as an occasion. H.E. Butt Grocery Co., San Antonio, for instance, featured a tea article in the winter edition of its “H-E-B Goodness” health and wellness magazine, which the company distributes in-store at the checkout aisle.

“More than any other beverage, tea engages all the senses — with a delicate scent, steaming heat and silky taste,” H-E-B Goodness reads. “It's an experience as much as a beverage.”

That's exactly what's helping spur specialty sales. Consumers are looking to tea not only to improve their health, but to improve the quality of their lives.

“There's an emerging appeal of specialty,” said Simrany of the Tea Council.

SPECIAL TEAS

The Tea Council defines specialty as unblended tea, or tea that comes from a specific geographic region, such as Darjeeling in India.

The Tea Council actively promotes research exploring the potential health attributes of tea, including studies that show tea may inhibit the growth of cancer cells and support cardiovascular health. Still, the Food and Drug Administration recently denied a health claim for green tea in terms of contributing to cardiovascular health.

The petition came from tea manufacturers, not the Tea Council, according to Simrany. While the Tea Council wants a health claim, Simrany said the FDA requires more in-depth clinical studies. He's hopeful that future research will eventually make the claim a reality.

“There's been a great deal of suggestive science, but the FDA demands definitive studies,” Simrany said.

Until then, there are plenty of other category happenings to maintain consumer interest in tea, he said. One of the biggest growth areas is the ready-to-drink tea market, which is creating more consumer awareness of tea.

RTD tea dollar sales soared 26% to $950.4 million in food/drug/mass for the 52 weeks ending Dec. 31, 2006, according to IRI.

“RTD teas have expanded tea to the family demographic,” Simrany said.

Indeed, while bagged tea is moving at Brookshire Brothers, Lufkin, Texas, the real growth is coming from RTD teas.

“RTDs are exploding,” category manager Chuck McDaniel told SN — so much so that Brookshire just doubled its New Age beverage section to 8 feet. Tea accounts for the majority of the New Age category.

Shoppers in search of healthier drinks often choose regular and diet RTD green teas, according to McDaniel.

“The antioxidant factor has made a huge play in that category,” he noted.

In Brookshire's bagged tea section, specialty tea from Celestial Seasonings and Bigelow account for the largest growth.

PYRAMID-SHAPED TEA BAGS

Along with the specialty and RTD segments, category excitement is coming in the form of new types of tea delivery systems.

One of the newest innovations is triangular, or pyramid-shaped, tea bags that are used with whole leaf tea.

These bags make it convenient for a consumer to brew a cup of whole leaf tea without the need for tea balls or infusers. The tea bags allow the leaf to expand, thereby creating a better cup of tea, said Simrany of the Tea Council.

“Without the right equipment, brewing a cup of loose tea can be very messy and inconvenient,” he said.

Along with specialty companies like Tea Forte, mainstream brands are also getting involved in the pyramid tea trend.

Unilever's Lipton brand has introduced a new line of tea made with pyramid-shaped, gossamer tea bags.

The pyramid bags allow the ingredients — which include long-leaf tea and pieces of fresh fruit — to move more freely, extracting a lot more essence, according to Abbe Kuhn, Unilever's principal scientist.

“You can see the product fusing right through the bag,” Kuhn told SN.

Each box contains 20 bags, and sells for $3 to $4. Lipton says the brand is the first premium tea of its kind offered in mass-market retail and grocery stores.

Kuhn said the tea is just as good as specialty teas sold in shops, but is less expensive and requires much less work.

“Consumers want a premium quality tea, but are confused about how to buy it and brew it,” she said. “These tea bags are the answer.”

Tea Timein Ohio

AKRON, Ohio — Tea lovers here may have even more opportunity to enjoy their favorite beverage.

That's because West Point Market may add a Sunday brunch to the menu of its five-year-old tearoom, according to Rick Vernon, chief executive officer.

Called Mrs. Ticklemore's, the tearoom is currently open to the public on Fridays and Saturdays, and also other days of the week for catered events like baby showers.

Along with tea, the 40-person tearoom serves food on tiered silver trays. One selection, called the Cream Tea tray, features warm scones, clotted cream and strawberry preserves. In the late morning and afternoon, tea sandwiches and pastries are offered.

“At Mrs. Ticklemore's Tearoom, one can partake in the age-old British tradition of tea,” according to West Point Market promotional materials.
— C.A.

BEVERAGE WATCH

Milk maintained its position as the most frequently shopped for beverage, followed by carbonated beverages and refrigerated juices and drinks.

CATEGORY% of PENETRATION*% OF HOUSEHOLDS
REPEATING
PURCHASES
PURCHASE
CYCLE**
PURCHASE
OCCASIONS
PER BUYER
Milk96.794.62324.2
Carbonated Beverages95.691.53320.1
Rfg Juices/Drinks82.571.4489.9
Bottled Water77.863.9598.2
Beer/Ale/Alcoholic Cider38.225.9667.7
Still Wine33.821.3606.0
Source: IRI's Mid-Year Consumer Insight Builder
*Percent of U.S. households buying at least once in club, convenience, dollar, drug, grocery, mass and supercenter channels during the 52 weeks endingJune 25, 2006.
**Average number of days between repeat purchases by household.
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