A COMPLETE LANDSCAPE OF THE OUT OF HOME TEA MARKET

3 INTRODUCTION

4 WHAT’S THE FUTURE FOR FOODSERVICE?

6 A GREAT BRITISH BREW

8 BEAN VS BAG

10 THE TEA DRINKER OF TODAY

12 EXPLORING NEW TASTES IN TEA

14 EXPLORING CHANNEL OPPORTUNI-TEAS

16 THE WORKPLACE TEA BREAK

17 REVITALISING HYDRATION FOR CARE

18 CAFÉ CULTURE

19 ENJOY A LEISURELY BREW

20 OUR BOOMING BREAKFAST CULTURE

22 PREMIUMISATION OF TEA

24 FUTURE TRENDS

26 INSIGHT PARTNERS & ABOUT TETLEY

CONTENTS

TEAREPORT2 0 1 8

THE

This year, Tetley celebrated a milestone 180 years of delivering quality and expertise

to the tea sector. As the nation’s favourite tea brand and the no.1 wholesale tea supplier2, we have been committed to being at the forefront of the continual evolution of the tea category since our inception in 1837, supporting operators in serving the perfect cuppa time after time, with the aim to drive profit and deliver exceptional customer experiences.

The hospitality sector is facing an unprecedented period of uncertainty and challenge following the referendum vote in June 2016. Everything from rising costs to attracting talent to the industry from across Europe will need to be considered and potentially addressed. There’s no denying, there are sure to be interesting times ahead for those of us operating within the foodservice industry.

Amongst all of this, consumer behavioural habits remain largely unchanged. Britain is

still going out, with the majority of us eating and drinking out more than we did pre the Brexit vote. Customers still expect the same level of service and are keen to explore new tastes and flavours, but experience is king and keeping customers interested in your offering is paramount to driving success. Good food and drink is no longer enough in this hugely competitive marketplace.

In this, our second Tea Report, we explore the changing landscape of the foodservice sector, challenging perceptions around the quality of tea served out of home, identifying ways in which operators can attract custom with a stand-out tea offering, and diving deep into the key channels for the hot beverage category. We welcome you to join us on this journey, which we hope will unlock the true potential of tea in your outlet.

INTRODUCTION

GRAEME KARAVIS Managing Director

UK&IRE at Tata

Global Beverages

3

So just how are business leaders reacting to the UK’s momentous exit decision? And

just what effect has the result had on consumer habits out of home?

Over a year on from the EU referendum, the wider economic impact is still unclear, as exports and manufacturing are showing positive signs of expansion, while real wages have seen a fall behind inflation.

Within the foodservice industry, there is an interesting dichotomy between what is happening in industry and what is happening in the attitudes of consumers. The implications of Brexit on foodservice businesses appear to have had a real time, negative effect on trading, with 71% of operators already noting the impact.

ACROSS THE SECTOR, LIKE FOR LIKE SALES GROWTH IS ESSENTIALLY FLAT…

But it’s not all

bad news

of business leaders cite performance as in line with, or above, expectations

76%

INCREASE IN COST OF INGREDIENTS

81%

COST OF GOODS, BUSINESSRATES AND EXCHANGE RATESAPPEAR TO BE HAVING THELARGEST EFFECT, CREATINGDIFFICULT TRADING CONDITIONSAND CURTAILING PROFITS. WHEN ASKED WHICH ISSUES ARE MOST AFFECTING THEIR BUSINESSES, RESPONSES INCLUDED:

Better still

of drink-led venues are feeling positive

about the market

50%

WHAT’S THE FUTURE FOR FOODSERVICE?

TEAREPORT2 0 1 8

THE

BUSINESS LEADER CONFIDENCE REMAINS HIGH

ATTITUDES

Like for like sales growth over THE past12 months:

1.2%1

1

1

1

78% BUSINESS RATES

FALL OF POUND STERLING

73%

BUT YOUNGER CONSUMERS ARE EATING OUT AT LEAST ONCE A WEEK

proportion of age groups eating out ONCE A WEEK

of GB consumers predict no change or increases to their monthly eating & drinking out spend 81%

BUT THERE’S STILL ROOM FOR GOOD-OLD-FASHIONED PERSONAL SERVICE…

WITH CONGESTED HIGH STREETS PACKED WITH COMPETING CHAINS AND THE RISE OF THIRD-PARTY OPERATORS CHANGING THE WAY WE RECEIVE FOOD AND DRINK...

Consumers are engaging with brands in a different way, demanding new technologies and innovations in the out of home market. Cutting through the noise and delivering a superior experience is therefore more important than ever.

4in5

47% of consumers are worried that technological advances in the industry will limit face-to-face interactions

18-24

61%25-34

66%35-44

52%45-54

38%55+

34%

of business leaders are

concerned about consumer confidence over the next six months57%

5

ATTITUDESThere remains a disconnect between operator attitudes and consumer behaviour.

1

1

1

55% of consumers are excited to see how technological advances will change the eating and drinking out market in the future

1

operators state high quality customer experience as ‘very

important’ in the success of their business over the next 12 months 1

1

1

The value of tea in the UK foodservice market increased by an impressive 13.6% between 2015 and 2017.

Despite this, the category remains exceedingly competitive, and a deep understanding is vital under tough overall trading conditions. As coffee shop culture continues to embed itself within consumers behaviour, operators are looking for new ways to add value to their tea offering.

A GREAT BRITISH BREW

TEA, A GREAT

BRITISH LOVE AFFAIR...

CO

NS

UM

ER

S D

RIN

KIN

G

TE

A O

UT

OF

HO

ME

31.4m

TEAREPORT2 0 1 8

THE

11.6m2015 14%

out of homevs. 2015

13.6%tea valuegrowth

1

CHOOSE BLACK TEA OUT OF HOME75% 1

1in5 consumers are

drinking more tea than they did a year ago

1

cups of tea consumed out of home on the average weekday in the UK1

said the teathey drink out of home is significantly better than

what they make at home 1

13.1m2017

12.4m2016

THE BATTLE OF THE BRANDS…Black tea brand awareness remains high out of home, but the challenge for brands is to convert awareness into brand loyalty and brand desire.

7

TOP 5CATEGORYLEADERS

SALES SHARE

TETLEY 2

7.3

%

PG TIPS 25.3%TW

ININ

GS 1

8.1

%Y

OR

KSH

IRE

TEA

13.

7%

TY

PH

OO

6.2

%

BRAND AWARENESS, CONSIDERATION AND USAGE OOH

conversion rate between aware to consider

65% 47% 68% 70% 52% 45% 51% 34%

conversion rate between aware to drinking

61% 71% 59% 60% 44% 36% 38% 43%

PRIVATE LABEL

1

27

3.8bnOOH COFFEE OCCASIONS

(-10% VS. 2016)

TEAREPORT2 0 1 8

THE

OF COFFEE DRINKERS ALSO

DRINK TEA43%

Coffee is chosen for energy but is declining across all other needs and showing reduced consumption within the workplace.4 Budget conscious consumers are opting to brew coffee at home, to take to work in a travel mug.

Coffee purchase occasions continue to decline out of home, while tea sales remain stable across the board. Coffee continues to dominate purchase decisions in the morning and remains a key competitor for tea, as over half of tea drinkers also drink coffee.

Café culture is no longer simply restricted to coffee shops; we’re becoming a nation of food and

drink connoisseurs both in-home and out, increasingly seeking new and exciting hot beverage trends to try. From nitro coffee to turmeric-infused tea, the battle between the coffee bean and the tea-leaf is heating up.

Coffee to go1

4

OF TEA DRINKERS ALSO DRINK COFFEE53% 4

4

40%

OF COFFEE OCCASIO

NS

ALS

O IN

CL

UD

E O

THER ITEMS 22

Tea is chosen habitually and to quench thirst, but is also seeing growth as consumers choose it for energy or

simply because it’s their favourite drink. They are more likely to consume food with tea then any other hot beverage.4

62%

OF TEA OCCA

SIO

NS

AL

SO

INCLUDE OTHER ITEMS

Insight shows 40% of all tea is drunk in the morning,3 making this day part key for operators

looking to increase hot beverage sales.When compared to coffee cost per cup, purchase

price is significantly lower. To increase tray spend, tea should be included in meal deals.

£1.692015

£1.732016

£1.772017

AVERAGE Te

a cost per cup

£1.982015

£2.042016£2.102017

AVERAGE

COFFEE

cost per

cup

Reading the tea leaves

9

1

1

1

22

3.1BNOOH TEA OCCASIONS(+1% VS. 2016)

4

THE TEA DRINKER OF TODAY…

With more than 51 million tea drinkers in the UK, 165 million cups of tea drunk every day, and

almost 2000 cups consumed every second,23 we can safely say that tea is a drink that can be enjoyed by all. However, when it comes to drinking tea out of home, consumers are less inclined to partake in this daily ritual. 34% of consumers who drink tea in home don’t consume it out of home,1 creating an opportunity for the foodservice sector to convert these valuable customers.

Increasing penetration of tea out of home can only be achieved by understanding and analysing the identity of perspective customers, and meeting their needs and wants.

TEAREPORT2 0 1 8

THE

Tea in

home

34.4% 6.3%59.3%

Tea out of home

1

Black tea is a clear favourite when it comes to tea choice. But just how frequently are consumers drinking this type of tea?

11

Weekend 1 Cup

a day OOH

SO JUST WHAT DID THE AVERAGE TEA DRINKER LOOK LIKE IN 2017?

16-24

11.5%25-34

18.4%55+

36.9%35-44

16.3%45-54

16.9%

1

average household income of a uk tea drinker vs uk average £36K £45K 1

1

Although overall sales value is highest in London, consumption is weighted towards the North of England27

1

44% MALEFEMALE

56%

Weekday2 Cups a day OOH

A NEW WAVE OF TEA DRINKER

So, how can we attract new audiences to the tea category? The majority of non-tea drinkers are aged 35 or under and are looking for a premium drink offering. Trying new products, especially from a drinks perspective, is something that appeals and drives purchase decisions. Consumers also need to be satisfied that the tea they purchase out of home will live up to their expectations, so the quality of serve is key.

premiumise their drinks choices59% of 18-34

1

year

old

s

uk consumers like to try new or different HOT BEVERAGES out of home 1

7.1 million

HIGHEST CONSUMPTION LOWEST CONSUMPTION

EXPLORING NEW TASTES IN TEA

Tea in the out of home environment is still dominated by black tea consumption, particularly in the cost

sector. Volume growth remains relatively flat YOY, with just 15% of consumers expecting to drink more black tea than they did a year ago.1 Meanwhile fruit, herbal and green teas have observed significant growth in popularity.

With the health and well-being trend being particularly prominent amongst millennials, consumers have become increasingly selective about their dietary choices, often opting for healthier hot and cold beverages

out of home. Offering a range of fruit and herbal infusions is an easy way to attract a younger audience to the tea category and drive rate of purchase. By showcasing the different benefits of the blends available, operators can drive consumers to try different types of tea across different day parts too.

of consumers who have seen

new types of tea, have tried a new brand OOH in the past 12 months49%

Matcha and Green tea are two blends that consumers are willing to pay a little more for, and are drinking with

more frequency thaN they were 12 months ago.

What are our favourite non-black blends out of home?

18%Green tea 17%speciality

black tea 15%HErBALtea 14%FRUIT

tea 3%MATCHAtea

TEAREPORT2 0 1 8

THE

SPENDING POWER

4

1

1

MORE29% OF CONSUMERSEXPECT TO DRINK

GREEN TEAthan they did a year ago

Herbal TEAS

9.6% Yoy2016 vs 2017

GREWOF TEA SERVED

OOH i s

18.1% non - black

What are consumers prepared to pay for tea out of home?

Matcha £2.82

Speciality tea £2.24

Green tea £2.08

Herbal tea £2.06

Fruit tea £2.05

Decaf tea £2.03

Black tea £1.80

SPENDING POWER

uplifting &refreshingfruit blendsappeal to consumerslooking to lower theirCaffeine Intake

13

1

1

1

1

EXPLORING CHANNEL OPPORTUNI-TEAS

The foodservice landscape remains hugely fragmented, comprising of an estimated 362,679

outlets across varying channels.1

With 1/3 of total food and drink occasions taken out of home,25 brands and operators are having to adapt their offering to meet a myriad of consumer need states, which can differ significantly depending upon which channel they function within.

hotelsmore fruit & herbal teas

are consumed in

VS any other channel

TEAREPORT2 0 1 8

THE

CHANNEL NEED STATESWhen it comes to tea, reasons for consumption can be attributed to many different factors. In a hospital or care environment, tea plays a key part within hydration best practice, whilst delivering familiar comfort. In the workplace, a cup of tea can act as a breakout from an employee’s daily routine. One thing’s for sure…wherever it’s being drunk, enjoying a cup of tea is a staple part of most people’s day.

more BLACK TEAis consumed in the

care

CAFé SECTORWELL KNOWN BRANDSPERFORM WELL IN THE

with consumers looking for teas they enjoy at home

GREEN TEA is the 2nd most popular blend in the

workplace

1

1

1

1

channel than any other

15

Read on to explore the attitudes towards, and opportunities for, tea across the channels that matter the most to you.…

tea value growth

2015vs2017

HOTELS 10.6%

CAFÉ15.4%

WORKPLACE16%

HEALTH11.7%

1

47% of us drink tea

every time we are in the workplace

37% of the millennial workforce consumes a repertoire of teas at work

44% OF WORKERS ARE

for a break beforetoo busy lunchtime

A QUARTER OF BRITISH WORKERS BELIEVE THEY AREN’T ALLOWED TEA BREAKS

Within the workplace, tea outperforms coffee, with the tea break presenting a fantastic opportunity for operators to communicate the significant benefits associated with a brew.

PARTNERING ON A DRINK OFFER TO MAXIMISE THE ‘BREAK OCCASION’ IS ONE WAY IN WHICH TEA CAN BE PROMOTED IN THE WORKPLACE

From the ExpertIt has always been about the Great British Cuppa, which still accounts for the volume of sale, but in order to engage customers, outlets need that wow factor. Tea deals are a great way to push up average spend.If we can sell one of our hot beverages and a homemade cake that is a great profit margin for us, as they are two categories that give us the best margin.

Steve Fox, Purchasing Director, Bartlett Mitchell

WHETHER GRABBING A BREW IN-BETWEEN MEETINGS OR CATCHING UP WITH COLLEAGUES IN THE CANTEEN OVER A CUPPA, TAKING TIME OUT FOR A PROPER TEA BREAK CAN INCREASE PRODUCTIVITY AND HAVE A BENEFICIAL EFFECT FOR BUSINESSES AND EMPLOYEES ALIKE.

TEAREPORT2 0 1 8

THE

factors for choosing tea in the workplace

to break up the day

44% to quench

thirst

30% out of habit

28% 1in5 say they take fewer tea breaks than they did a year ago

THE WORKPLACE TEA BREAK

Top 3

“

“

1

1

6

5

WITH 37% OF OVER 65’S DEHYDRATED ON ADMISSION INTO CARE ENVIRONMENTS, IT’S CRUCIAL THAT CARE HOMES ENCOURAGE GOOD HYDRATION PRACTICES.7

THE CARE HOME INDUSTRY PROVIDES A HUGE OPPORTUNITY FOR TEA.

On average residents DRINK 2-3 cups per day

Healthcare has the second largest sector value share (22.2%). With growth steady at 4.1% YoY,1 there is opportunity to expand into new tea segments. Offering choice to residents and visitors can create a great impression and have a positive impact on good hydration practices.

From the ExpertAll my cooking thought goes into how to hydrate the residents. Their socialising tends to be around tea and we get through over 1000 tea bags per week, for our 70 residents plus staff & visitors at just one site. We’re increasingly seeing more of a demand for fruit teas from the residents, which have the added benefit of being caffeine free.

Martin McKee, Head Chef, The Hawthorns Aldridge, Avery Health Group

Top 3 occasions for drinking tea in care

17

TO PASS TIME36%

FOR a quiet drink15%

TO RELAX15%

REVITALISING HYDRATION FOR CARE

are required by 2025

AN ESTIMATED

CARE HOME SPACES71,000 EXTRA “

“

VISIT THE TETLEY TEA ACADEMY TO DOWNLOAD

YOUR FREE COPY

HydrationCHAMPION

WITH OUR GO-TO GUIDE

1

8

OUR LOVE FOR CAFÉ CULTURE CONTINUES TO GROW, SO MUCH SO THAT COFFEE SHOPS ARE PREDICTED TO OUTNUMBER PUBS BY 2030.9 IN FIVE YEARS, THE MARKET ROSE BY 37%, INCREASING BY AN IMPRESSIVE £1 BILLION TO £3.4 BILLION IN SALES IN 2016.10

Just as the coffee market has burgeoned, so has the market for tea, with a 7.4%1 increase in value growth within this sector. No longer satisfied with a simple ‘builder’s brew’, consumers are looking for an experience and more choice on the menu.

While English Breakfast is always a customer favourite, we’ve also seen a demand for more choice and have expanded our range to include Fruit & Herbal and Earl Grey blends. In the summertime we also add cold brew teas to our beverage menu.

David Koller, Café des Arts

average willingness to spend on a cup of tea in a café£1.86

CAFÉ CULTURE

To socialise35%

To relax34%

TO Quench Thirst34%

To have a break34%

TEAREPORT2 0 1 8

THE

65% coffee shopof brits have visited a

in the past three months

10

REASONS TO DRINK TEA in cafÉs 1

CHAI +93.8%

DARJEELING +20.3%

ASSAM +28.4%

FRUIT +20.3%

PEPPERMINT +14.6%

From the Expert

“

“

TEA IN GROWTH1

1

With tea, people are asking for a wider selection and are more specific with their teas than they once would have been. It is not just a cup of tea anymore. We also use tea when preparing non-alcoholic drinks to create more depth because there is such a wide variety of flavours.

Tom Jolly, Beverage Manager, Gleneagles Hotel

In room it is very functional at the moment. The teabag on a string is just a dunk and go, so you aren’t going to get a huge amount of theatre. There needs to be additional quality cues that you can build into the product.

UK Hotel Operator, Senior Insight Manager

DESPITE UNCERTAINTIES WITHIN THE ECONOMIC CLIMATE, AN ADDITIONAL 11,400 HOTEL ROOMS OPENED UP IN 2017, UP 2.4% YOY.11

WITH EACH GUEST SPENDING AN AVERAGE OF £339 ON FOOD AND DRINK THROUGHOUT THEIR STAY,12 HOTELIERS SHOULD EXPECT TO ENJOY INCREASINGLY DIVERSE REVENUE STREAMS.

The hotel sector presents the largest channel growth from a paid for tea perspective, up 10.2% YOY.

Top 3 reasons for drinking tea in a hotel

TO RELAX

33% TO START THE DAY RIGHT

32% as it’s their

preferred drink

HOTEL GUESTS ARE WILLING TO SPEND MORE ON A CUP OF TEA, HIGHER THAN ANY OTHER CHANNEL AT £2.33

OF guests stated ‘How TEA IS served’ as extremely important

52%

19

ENJOY A LEISURELY BREW….

1

30% 1

From the Experts

“

“

1

OUR BOOMING BREAKFAST CULTURE

Breakfast isn’t just the most important meal of the day for consumers but for foodservice operators too,

with £76million spent on eating out at breakfast on a daily basis.13 From cereal cafés to the boom in baked eggs, there has been an explosion of interest in the breakfast and brunch market.

Purchasing breakfast out of home is becoming increasingly popular, with the number of breakfast servings growing by 17.5%14 and ahead of all other meal occasions. Notable contributors to this growth, operators have targeted busy workers on the go by supplementing their breakfast offerings with promotions on hot beverages.

TEAREPORT2 0 1 8

THE

Increase in spend at breakfast out of home

31%

Food and drink occasions 2017 vs 2015

are in decline

evening meals

& snackLUNCHACCOUNTS FOR208 million occasions, up 2.2%

UP 4.6% in 2017,Breakfastis driving OOH totalfood and drink growth

80 million occasions annually

with

occasions

25

2525

14

21

Breakfast has become just as much a social event as lunch and dinner. Brunch is now a huge dining out occasion, particularly for under 35’s, to indulge and celebrate - and has therefore created an opportunity for operators to upsell their most indulgent Instagrammable dishes and drinks.

Of consumers eat breakfast out of home twice a month1651%43%

The Social Occasion

1

CONSUMERS ARE MORE LIKELY TO DRINK TEA WITH BREAKFAST THAN ANY OTHER HOT BEVERAGE.17

Whatever your sector, ensure you’re offering your customers something worth waking up for, by serving up quick and easy breakfast dishes and indulgent brunch options with serious profit opportunities.

GRAB AND GO

With increasingly fast-paced lifestyles and less defined day parts, fewer consumers are eating their first meal of the day at home, presenting a significant profit opportunity for caterers. Convenient, on the go breakfast options are attractive and more accessible so consumers can pick them up and continue with their day.

KEY TIMEFOR DRINKING

TEA OOH 9AM-

12PM

of beverages consumed

at breakfastin hotels are tea

OF adults say theyeat breakfast at

their desk

26%15

16

Consumers, particularly the younger generation, are becoming more adventurous in their flavour preferences

and willing to spend more on drinks that they perceive to be premium and healthy. With this in mind, operators have an opportunity to attract a new cohort of shoppers and create added value opportunities.

WHO’S LOOKING FOR A PREMIUM HOT BEVERAGE OFFER?

TEA DRINKERS ARE ALSO WILLING TO TRADE UP AND PAY MORE FOR A MORE SUPERIOR DRINK…

HOWEVER, A KEY BARRIER TO PURCHASE THAT THE MARKET CONTINUES TO ADDRESS, IS CONSUMERS’ PERCEPTION OF QUALITY.

Within tea service, experience is king and a key to success for operators. To keep consumers interested and to create brand loyalty, good quality food and drink is no longer enough. Tea faces stiff competition from an increasingly diverse range of alternative hot and cold drinks. It’s often perceived as the poorer counterpart to coffee, struggling to deliver the same experience.6

THE THEATRE OF TEA

TEAREPORT2 0 1 8

THE

18-34

59%35-54

52%55+

39%

65%of consumers ARE WILLING

TO PAY MORE FOR A PREMIUM drink

PREMIUMISATION OF TEA

IF THE ATMOSPHERE AND AMBIENCE IS RIGHT, CONSUMERS ARE

1

1

More likely to rate a brand as betterX3

value formoney

1

34%of tea drinkers are likely

to pay extra for more premium brands

1

From turmeric to added protein, we have seen a new wave of consumers actively seeking out functional teas and other hot beverages. To meet their increasingly busy lifestyles, operators should be looking to expand their beverage menus with natural energy boosts that consumers can grab on the go. To take advantage of these opportunities, brands must continue to innovate their product ranges, meeting the needs of the market from a health and wellbeing perspective.

PREMIUMISING THROUGH HEALTH

23

No longer restricted to high-end hotels, loose leaf tea sales continue to soar, with consumers enjoying the ceremony and ritual of pouring a personalised blend from infuser tea pots.

Rise o

f Loos

e Leaf

DRINK MORE LOOSE LEAF TEA29%

“We have done some work on innovation around our hot drinks offer. One of the more popular ones is the jasmine flowering tea, it’s very visually appealing and has that sense of ‘Instagramability’ that people are increasingly looking for in their dining habits.”

Stuart Wright, Head of Insight for Wagamama

OOH than this time last year1

45% of tea drinkers are

DRINKING MORE

MATCHA THAN THIS TIME LAST YEAR 1

TEAREPORT2 0 1 8

THE

FUTURE TRENDS

SO WHAT’S NEXT FOR THE ICONIC BRITISH CUPPA? FROM NEW FORMATS, TO NEW TECHNOLOGIES, OUR INDUSTRY EXPERTS REVIEW THE CURRENT TRENDS IN TEA SERVICE AND PREDICT THE WAY FORWARD FOR THE FUTURE OF THE TEA CATEGORY.

Natural and ethical claims on global new food and drink product launches are on the rise. We are seeing consumer demand for natural and earthy flavours such as matcha, ginger, turmeric and cumin increase across markets.24 Demand for these products is twofold as consumers seek out bold and adventurous flavours, while pursuing alternative health benefits associated with the ingredients.

2. FLAVOURS RISING

21

24

“We are seeing a new passion for oolongs as people discover their wonderfully complex flavours and aromas. Newer origins such as Nepal, Meghalaya (in Northeast India) and Hawaii are attracting attention”

Jane Pettigrew, UK Tea Academy, Course Director

Natural Product ClaimsIe no additives/preservatives, organic, gmo-free

sept 2006-

17%aug 2 0 0 7

sept 2016-

29%aug 2 017

TEAREPORT2 0 1 8

THE

Looking forward, consumers will be more concerned about ingredients and products that provide nutritional, physical or emotional benefits and meet their requirements for self-care.18 The Functional Beverages Market is expected to grow at CAGR 5.5% by 2022,19 as consumers increasingly look for beverages to provide functions including energy and relaxation. Over a third of iGens say they would pay more for tea or coffee with added health benefits.28

1. TEA WITH PURPOSE

UKMATCHA

TURMERIC TEAROOIBOS TEA

MATCHA POWDERCamomile TEAHIBISCUS TEA

USmatchaoolong teacamomile teaturmeric teaginger alegreen tea shot

20

TOP TRENDING FLAVOURSEARCHES

HEALTH IS THE FASTEST GROWING CONSUMER NEED

+5% VS 2016

+9% VS 2014

25

This quintessential tradition continues to evolve with operators offering eccentric twists to the classic high tea menu. In the future, tea sommeliers will play a huge part in the ceremony, with consumers hungry for the theatre that comes with this British tea ritual.

5. AFTERNOON TEA REIMAGINEDKombucha, Matcha, Cold

Brew and Nitro Tea are creating new sensorial experiences in the tea category out of home. The Global kombucha market is expected to experience significant growth throughout the forecast period from 2018 to 2021.

3. NEW SENSATIONS

“There’s a huge opportunity to convert in-home tea drinkers to purchase a brew out of home. Creating the art of the perfect serve and adding theatre to their tea offering is vital. There’s a plethora of new and exciting blends and infusions of tea out there…”

Steve Slark, Chairman, Beverage Standards Association

Consumers are looking for an experience that reflects their desire to premiumise their beverage choice. Experience has become a bankable commodity for brands and cafés alike. Two-thirds of British consumers tell us that they strongly or moderately feel the need to satisfy their desire for new experiences.26

4. PROCESS BECOMES PRIMARY

“In the future I expect to see new innovations in technology, and have something specifically designed to brew the tea that could sit alongside the coffee machines. Tea offers need to be deconstructed and then put back together in a simpler formula for consumers to find it interesting. ”

Steve Fox, Purchasing Director, Bartlett Mitchell

25

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@TetleyTeaOOH

ABOUT TETLEY

Tetley has over 180 years of expertise and is enjoyed in over 70 countries, with more than 45 million cups of Tetley consumed every day. With an unsurpassed knowledge of the tea industry, Tetley is proud to be the nation’s most trusted tea brand.

RESPONSIBILITY

With global presence comes global responsibility, and Tetley has led the market in producing a ‘greener’ cup of tea for foodservice operators. In addition to its membership of the Ethical Tea Partnership, Tetley is committed to sourcing all its tea from Rainforest Alliance certified farms.

Tetley is dedicated to providing education to help highlight the significance of tea in care surroundings and the importance of tea in maintaining sufficient nutrition and hydration in patients, staff and visitors.

OUR OUT OF HOME WEBSITE

The dedicated Tetley out of home website (tetleyteaacademy.co.uk) offers expert advice on products and provides invaluable education to help blend the best brews. As well as information on the Tetley product range, POS materials including display equipment, stands and mugs are also available.

SHARING OUR KNOWLEDGE - TEA MASTERS

In 2016, Tetley launched the UK’s first ever free online training course to support operators in improving consumers’ experience of tea service. Tetley’s Master Blender Sebastian Michaelis takes users on a journey from crop to cup, and addresses the barriers in tea service out of home.

TETLEY HYDRATION HANDBOOK

The Hydration Handbook covers an array of aspects that all contribute to tackling dehydration within the elderly community. From helping carers spot the signs of insufficient hydration to exciting activity ideas, the handbook encompasses Tetley’s advanced knowledge of the channel, as well as offering inspirational recipe ideas.

TETLEY BREAKFAST GUIDE

The Breakfast Guide offers insight into the brunch market and advice from industry experts in creating innovative and on-trend dishes that are worth waking up for.

VISIT TETLEYTEAACADEMY.CO.UK TO DOWNLOAD YOUR COPIES OF THE HYDRATION HANDBOOK AND THE TETLEY BREAKFAST GUIDE

INSIGHT PARTNERS & ABOUT TETLEY

TEAREPORT2 0 1 8

THE

27

CGA IS THE DATA AND RESEARCH CONSULTANCY OF CHOICE FOR THE OUT OF HOME FOOD AND DRINKS MARKET, SPECIALISING IN MARKET MEASUREMENT, CONSUMER RESEARCH AND LOCATION PLANNING.

What sets CGA apart is its unique ability to access the three key types of data (supply, demand and consumer) and then triangulate this data to provide the most complete and accurate picture of anyone in the out of home sector.

From its offices in Manchester, United Kingdom, and Chicago, United States, CGA experts work with many of the world’s biggest consumer brands, including drinks manufacturers, consumer brand owners, food suppliers and wholesalers as well as pub, bar and restaurant retailers and government entities.

Founded in 1992, CGA’s mission is to use its phenomenal data and expert insight of the leisure industry to give these brands the competitive edge, and get them where they want to be, faster.

TO LEARN MORE, VISIT:WWW.CGA.CO.UK.

SOURCES

1 CGA Tetley Research Project 2017 | 2 Salesout Consolidated Tea Category Report MAT 8th Oct 2017 | 3 MCA Allegra OOH Tea Data June 2016 | 4 Kantar Worldpanel Usage | OOH Paper Diary | 12 m/e May 2017 | Occasions (millions) | Total Hot Drinks| Total Obtained OOH excl. Friend/Relative Home | 5 Tetley Tea Break Mission Report | 6 Mintel 37% of brits aged 25-34 drink 5-6 different tea types august 18th 2017 | 7 A M El-Sharkawy,O Sahota, R J Maughan and D N Lobo 2014 | 8 Is late-life dependency increasing or not? A comparison of the Cognitive Function and Ageing Studies (CFAS) 15th August 2017 | 9 Project Café 2017 UK, Allegra World Coffee Portal | 10 Mintel’s Coffee Shops 2016 report | 11 UK Hotels Forecast 2017 | 12 Barclays Tourism Report 2017 | 13 Beacon 2015 survey | 14 NPD Crest 2016 | 15 Shake up your wake up | 16 M&C Allegra Food To Go Report 2015 | 17 MCA Insight – Tea Consumption In the UK Eating Out of Home Market, for Tetley, May 2016 | 18 Mintel Food and Drink trends for 2018 | 19 Kantar Worldpanel - Trends in Beverages | 20 Mintel Global New Products Database (GNPD) | 21 Google Hot Beverage Trends report 2017 | 22 Kantar Worldpanel OOH, 52we 26 March 2017 (44we Growth YoY) | 23 UK Tea & Infusions Association | 24 Kantar Worldpanel: Online consumption diary (in home and carried out) 52 w/eMarch 2017 | 25 Kantar Worldpanel Usage | Main Panel | 52 w/e 18 June 2017 vs. 2016 vs. 2015 | Occasions (%) | Total Food & Drink | 26 Tetley The Future of Tea Report | 27 Salesout Wholesale Beverages report 26-Nov-17 | 28 Mintel Global Food and Drink trends 2017

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