C S P October 2013258

It doesn’t have the sugar police hot on its trail. Some call it

“a great alternative to coffee.” It may be good for the heart

and even fi ght cancer. Add all of this up, and you don’t

have to read any leaves to realize that the future is bright for

iced tea.

Cruizers Convenience Marketplace, the retail arm of Chapel

Hill, N.C.-based Holmes Oil, fi rst offered Coca-Cola’s freshly

brewed Fuze Tea at its locations with Subway restaurants. Due

to the success of the fresh dispensed tea, Holmes Oil reconfi g-

ured the merchandising of its dispensed-tea program in April.

The company eliminated dispensed fountain tea, switching to

freshly brewed iced tea and serving it in a stainless-steel urn.

Cruizers stores now offer sweetened and unsweetened freshly

brewed iced tea, and the beverages are included in bundling

programs.

“There are now more beverage choices; tea has become

evolutionary. It’s a noncarbonated and refreshing choice that

is better for you, so [we] decided to enhance the program,” says

John Zikias, COO of Holmes Oil. “By 2014, Holmes Oil will

have freshly brewed iced tea in all of its stores.”

Health HaloAccording to a July 2013 Mintel report on fresh tea and ready-

to-drink (RTD) tea, sales are predicted to rise to $7.3 billion

across all retail channels by the end of 2013. Mintel predicts a

continued rise in tea consumption through 2018 due to “con-

sumers’ increasing attention … toward the health of the food

and drink products they choose. … Future success relies not

only on continued innovation, but also the adoption of tea by

new consumers who are looking for healthy beverage options.”

The report also indicated that 75% of respondents ages

18 to 24 believe tea is better for you than coffee. Sixty-eight

percent of the same age group believes RTD teas are healthier

than soft drinks.

“Population growth and healthier consciences have helped

to keep the tea and ready-to-drink tea category growing year

over year,” the report says.

And the public has indeed become more aware of what

they put inside their bodies over the past few years. The health

effects of soda have made headlines in the wake of New York

Mayor Michael Bloomberg’s attempted ban of soda and other

Tea TimeTea TimeTea Time

Fresh brewed iced tea leaving sugary drinks in its wake

By Lara R. Jackson

C S P October 2013260

sugary drinks 16 ounces or larger. In July,

the ban was voted unconstitutional, but

the debate over sugary drinks continues

to rage on.

The Harvard School of Health study

“Sugary Drinks or Diet Drinks: What’s the

Best Choice?” says, “The evidence is strong

that cutting back on sugary drinks—or

eliminating them altogether—may help

with weight control and will almost surely

lower the risk of diabetes. There’s emerg-

ing evidence that sugary drinks increase

the risk of heart disease.”

These health concerns may be a ben-

efi t for tea. According to WebMD’s article

“The Types of Teas and Their Health

Benefi ts,” “Studies have found that some

teas may help with cancer, heart disease,

and diabetes; encourage weight loss; lower

cholesterol; and bring about mental alert-

ness. Tea also appears to have antimicro-

bial qualities.”

“There doesn’t seem to be a downside

to tea. I think it’s a great alternative to

coffee. … First, tea has less caffeine.

It’s pretty well established that the

compounds in tea, their flavonoids,

are good for the heart and may reduce

cancer,” says American Dietetic Asso-

ciation spokeswoman Katherine Tall-

madge in the WebMD article.

Tulsa, Okla.-based QuikTrip offers

both dispensed iced tea and freshly

brewed iced tea at its more than 650

locations and, according to Mike

Thornbrugh, manager of public and

government affairs, “QuikTrip does

not react to fads. We believe … tea will

be around a long time.”

Steady RiseWhile dispensed and RTD teas are

holding their own, freshly brewed is

the tea trend to watch. Since 2007,

there has been a steady rise in the con-

sumption of freshly brewed tea, and

the Golden Arches may be the chain to

thank for it. According to Samuel Nah-

mias, executive vice president and COO

of Cedarhurst, N.Y.-based StudyLogic,

“There were 230 million cups of freshly

brewed iced tea sold in 2007, compared

to 1.3 billion cups sold fi ve years later in

2012. McDonald’s sold 69 million cups

of freshly brewed iced tea in 2007 and

jumped to 800 million cups in 2012. In

2007, McDonald’s began heavily promot-

ing its sweet tea. With 14,000 locations,

McDonald’s held 30% to 60% of the share

in freshly brewed iced tea.”

And tea continues to make a name for

itself. According to Nahmias, “In 2012,

McDonald’s held 22% of the share in iced

tea. The top convenience stores selling

iced tea were 7-Eleven, with a 4.9% share;

Circle K with 1.2%; Speedway/Super-

America with 1%; and Wawa with 0.9%.

“Soda is contracting in the sweet bev-

erage category; people are moving toward

a more healthy beverage choice,” Nahamis

continues.

Tea lovers seem to be open to trying

new things, too. Unlike soda fans, who

many times will stay with their favorite

drink, iced-tea drinkers enjoy the refresh-

ment of the drink and are more likely to

try a new fl avor or brand.

“The choice of iced tea, especially

RTD tea, runs the gamut. There are so

many innovations and flavors, from

green to white teas, which contributes

to the growth of this category,” says Gary

Hemphill, managing director of research

for New York-based Beverage Marketing

Corp.

“Consumers can customize their

iced tea, [such as] adding flavors,”

says Mark DiDomenico, director of

business development for Chicago-

based Datassential, which tracks

the incidence of items on menus.

“Customization is the strength of

the c-store. Many c-stores offer cus-

tomers different fl avors to make that

special drink. [They] use the drink as

the base to customize their beverage

to their liking.”

Also, based upon the time of the

year, consumers may change their

tastes to something lighter or sweeter,

customizing their beverages based

upon taste and their particular mood.

“[Holmes Oil] has expanded the

stores with flavor shots so custom-

ers can customize their drink with

strawberry, raspberry, lemon, lime or

vanilla,” says Zikias. ■

QuikTrip does not react to

fads. We believe …

tea will be around

a long time.”

“QuikTrip does not react to “QuikTrip does not react to

both dispensed iced tea and freshly

year, consumers may change their