Starbucks looks to disrupt the RTD tea market

 

Susquehanna sizes up the Ready-to-Drink tea market after Starbucks (NASDAQ:SBUX) partners up with Anheuser-Busch InBev (NYSE:BUD) to grow the Teavana and Tazo brands.

On a broad scale, the U.S. RTD market was $5.1B last year and showed 3% growth.


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The main players are Unilever (UN, UL) via Lipton, Arizona Beverage (private), Coca-Cola (NYSE:KO) via Gold Peak, and Dr. Pepper Snapple (NYSE:DPS) via Snapple which as a group account for 70% of sales. Teavana and Tazo have almost no market share with most sales currently coming from Starbucks stores.

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The SBUX-BUD partnership will see Anheuser-Busch InBev produce the tea products at its U.S. breweries and distribute them to about 300K convenience stores and grocery chains in the U.S.Analyst Pablo Zuanic provided Seeking Alpha the data.

Source: Seeking Alpha

 

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