Next to water, tea is the most popular consumed beverage in the world. With so many people being health conscious within the USA the market demand for tea and tea mixes is ever expanding. The media is constantly promulgating the scientific health benefits of tea and EGCG. Americans enjoy drinking tea on a daily basis totaling an average of 165 million cups a day. According to on-going research, drinking just 4 cups of tea a day may offer significant health benefits. This means great profit opportunities for the tea and gourmet entrepreneur!
Tea Sales Expected to Reach $10 Billion
In January the Chicago Tribune reported that tea drinking in the US is up as health-conscious and luxury consumers turn away from coffee. US tea sales are expected to grow to $10 billion by 2010 from $6 billion in 2005, according to the World Tea Expo, a trade show. Nationally, the number of tea cafes has boomed to 2,000 from 200 in the past decade, according to the Tea Association of the USA.
Island Teas recognizes the importance of developing a private label for startup businesses as well as for the expansion of existing ones. We will provide quality teas and also help you with the marketing, packaging and branding. We can also help increase your sales results from the Internet and assist in keyword optimization. We can also analyze your website with strategic search results for specific products too.
Private Label History
Private label products, services and teas are typically those manufactured or provided by one company for offer under another company's brand.
Historically, private labels were seen as low-priced, low-quality products. In recent years, however, companies have started using private labels to market higher quality items, and many believe high-quality private labels will increase their presence.
There has been a significant increase in private label brands in the recent years worldwide. In Europe, private label goods now account for about 45% of products sold in supermarkets, compared to 25% in the USA. Wal-Mart, for instance, has a 40% private label representation in their stores. Pacific rim countries, such as Australia, Singapore, and Japan, also have significant presence of private labels on store shelves.
There are different kinds of private labels:
• Store brands - The retailer's name is very evident on the packaging.
• Store sub-brands - Products where the retailer's name is low-key on the packaging.
• Umbrella branding - A generic brand, independent from the name of the retailer.
• Individual brands - A name used in one category, this is only used to promote a "real" discount product line.
• Exclusive brands - Again a name used in one category, but to promote "added value" products within the category
• Distributor brands - Large wholesale grocers and foodservice purveyors often have private labels, for example the Parade brand of Federated Foodservice and the wide array of private brands of the large food service supplier SYSCO. These brands are typically seen in non-chain independent restaurants and stores that cannot afford their own private labeling.
A New Phenomenon in Private Label Tea
Over the past several decades consumers preferred “generic brand’ coffees and tea and the terms “private label” has become interchangeable. According to AC Nielsen studies, the consumer has shown favor toward to purchase of private label brands. More and more private label tea beverages are appearing on store shelves these days due to the health conscious consumer, replacing the demand for soft drinks such as soda.
The profound news is that surveys have proven that consumers perceive private label brands as of higher quality for a lower price than national brands and don’t mind paying higher prices either. It has been our experience that higher prices with unique approaches with quality allows the smaller business entrepreneur to rack in higher profits even if sales are lower than the big guys. Coupled with a unique tea house or a cafe you can boost profits even higher. Also, starting out with a small inventory of unique or high quality teas with good branding and packaging is the best way to break into the wave of fierce competition and not invest large amounts of capital.
A brand and its image is a wonderful mechanism to enhance public perception and increase value to the consumer. Coupled with unique products or blends with your own label makes your brand of tea even more valuable and will grasp the buyers attention and is extremely important in today’s crowded marketplace. We know from real experience. So, let us help you build your tea products from start to design finish.
Private Label Tea Company Examples
Bromley is a tea brand created by Eastern Teas and they offer a variety of Decaf teas. They utilize the CO2 process of decaffeination which is considered they best method. They have recognized the growing demand for decaf and also offer a selection of flavored teas. They have developed point-of-sales material like wire displays, attractive boxes with cutout windows and nice shippers.
The Red Diamond Company sells both coffee and tea. Their focus is on the foodservice market. They consider it most profitable because of the high quantity per sales they receive from retail establishments.
Island Teas has established a combination of retail and wholesale sale avenues via the Internet and has discovered great succes with instant tea mixes, weight loss and specialized herbal blends. As a result we have become an international company overnight. If fact, our sales have doubled two years consecutively between 2006 and 2008. Another great marketing tool for teas is the writing of books to fulfill the curiosity and increase awareness of the consumer. WE are planiing on free lectujres as a marketing tool and a specialty shop with cafe within the next two years. The important thing about teas sales is to "find your niche," says marketing director and author August Wald, PhD.
No matter what your tea needs are, our experts can help you with labeling design, custom blending or formulas, packaging, Internet consulting and more. We can help you with packaging loose leaf tea or instant mixes. Ask for our number one marketing director and tea guru August Wald, Ph.D.
August has done extensive research and writing on alternative therapies, tea and herbs. He has developed many herbal tea blends and tea mixes.
The green tea recipes on our site are excerpts from his upcoming book, to be released on Amazon.
We can also assist you in developing point-of-sale private label promotional material and we do custom tea blending for wholesale clients. Also, let us supply you with Green, Black, Oolong, Decaffeinated and Organic instant teas. Organic certified packaging facilities are available for your bulk needs too.
This will make your privat label line of teas very unique and increase your retail sales substantially!
If interested in private label tea or product development, please email us.
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