SOUTH AFRICAN READY-TO-DRINK (RTD)/ ICED TEA INDUSTRY LANDSCAPE REPORT

PUBLISHED: APRIL 2020

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o What is the current and future market size?

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Competitor pricing research

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The South African RTD/Iced Tea Industry Landscape Report (87 pages) provides a dynamic synthesis of industry research, examining the

local and global RTD/Iced Tea industry from a uniquely holistic perspective, with detailed insights into the entire value chain – from market size

trends, industry trends, innovation and technology, drivers and challenges, manufacturing to retailing, and pricing analysis.

SOME KEY QUESTIONS THE REPORT WILL HELP YOU TO ANSWER:

For the Global RTD Tea Industry Section:

o What are the current market dynamics (overview, market environment, and regional overview) of the Global RTD Tea industry?

o What are the Global RTD Tea industry trends, innovation and technology, drivers, and challenges?

For the South African RTD Tea Industry Section:

o What are the current market dynamics (market size, market value, market volumes): 2014-2019 Actual, 2020-2024 Forecasts?

o What are the South African RTD Tea industry trends, innovation and technology, drivers and challenges?

For the South African RTD Tea Manufacturer & Distributor Section:

o Who are the key manufacturing and distribution players in the South African RTD Tea industry?

o Which RTD Tea brands and products do the respective companies manufacture/distribute?

For the South African RTD Tea Retail and Pricing Analysis Section:

o Who are the key retail players (supermarkets and convenience stores) in the South African RTD Tea industry?

o What are the prices of popular RTD Tea brands across South African retail outlets?

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REPORT OVERVIEW

87-page report filled with detailed charts, graphs, and insights

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SCREENSHOTS FROM REPORT

Globally, the Ready-To-Drink Tea market reached a total value

of approximately US$35.4 billion in 2019 and is projected to

reach approximately US$45.5 billion in 2024, growing at an

estimated compound annual growth rate (CAGR) of

approximately 4.3%. In 2019, global retail RTD Tea sales

amounted to an estimated 36.2 billion litres.

o Growth in the RTD Tea market has largely been driven by the growing

demand from consumers for healthier and more convenient beverage

offerings, that meet the needs of consumers, who are increasingly

adopting healthier and more active lifestyles.

o Additionally, the increasingly busy lifestyles of consumers have given rise

to a greater demand for RTD beverages, as these beverages are

perceived as being convenient and thirst quenching. This includes RTD

Tea products, due to their ability to refresh, without the need to brew the

tea first.

o Additionally, RTD Tea’s unique flavour and aroma are factors further

contributing to the growing popularity of these products.

o In terms of segmentation, the global RTD Tea market is segmented by

application, product type, and flavour. Based on application, the market is

segmented into On-Trade and Off-Trade, with Off-Trade being the largest

application segment, comprising 84% of market consumption.

o Based on product type, the RTD Tea market is segmented into Glass

Bottle, PET Bottle, Canned, and Others. Amongst these segments, PET

Bottles continue to be the most commonly used product type due to the

efficiency of use of this type of packaging. PET Bottles represented 50%

of the market segment in terms of product type.

o Based on flavour, the global RTD Tea market is segmented into Flavoured

and Unflavoured Tea. Flavoured Tea is further segmented into Black,

Green, Red, Oolong, Jasmine, and Fruit flavours, amongst others.

o Globally, in terms of Flavour, the Flavoured Tea segment continues to

dominate the RTD Tea market due to a preference for flavoured product

variants, especially amongst younger consumers. This is expected to

continue to drive market sales in the coming years. More specifically,

Green Tea was the most popular flavoured tea variant globally in 2019.

2020 | 7Source: MarketWatch1; FoodBevereageInsider; NyseNewstimes; MarketWatch2; WorldTeaNews; FlatIcon

35.4

45.5

0

10

20

30

40

50

2019 2024

VALUE OF THE GLOBAL RTD TEA MARKET: 2019* & 2024 (IN BILLION US DOLLARS)

SAMPLE FROM REPORT GLOBAL RTD TEA INDUSTRY: GLOBAL INDUSTRY OVERVIEW

o These cocktail recipes include BOS Botanical (using blueberry & jasmine),

the BOS Beach Baller (using pineapple & coconut), and the BOS Peach

Blossom (using white peach & elderflower).

o The use of RTD Tea products in cocktails and mocktails has become

increasingly popular. Brands are attempting to capitalise on the growing

popularity of the trend, by sharing their cocktail and mocktail recipes

online through their websites and social media, thereby offering

consumers new ways to enjoy their products.

RTD Tea Cocktails Becoming Increasingly Popular

o RTD Tea products are becoming increasingly popular as mixers for

alcoholic drinks, as well as a popular base for cocktails and alcohol-free

mocktails, with this trend likely to grow in popularity in 2020.

o Illustrating the growth of this trend, several South African brands have

released cocktails an mocktail recipes online that incorporate their

products into the mixing process.

o As an example of this, Über Flavour Craft Ice Tea promote the use of their

products in cocktails on their social media sites. As part of this, the

company posts recipes using their products on the group’s Facebook

page and ask their followers to name the cocktail, in order to win various

prizes. The group has also collaborated with Cape Town based restaurant,

Kloof Street House, to create signature cocktails using Über Flavoured Ice

Tea products.

o Similarly, Lipton Ice Tea regularly posts alcohol-free mocktail recipes to

their Facebook Page. Some of these recipes include the Mojito Mo’Fun

(using Lipton Green Ice Tea), a Mixed-Berry Daiquiri (using Lipton Ice Tea

Mixed Berry), and the Pina Tea-La Da (using Lipton Ice Tea Lemon),

amongst others.

o Another example of this trend is BOS Ice Tea, whose Sparkling

Unsweetened Ice Tea products are promoted on the brand’s website with

a series of ‘Skinny Bostails’, providing a different cocktail recipe for each

of the three BOS Sparkling flavours, namely white peach &

elderflower, blueberry & jasmine, and pineapple & coconut.

2020 | 8Source: BizcommunityBOS; Bostails; UberFlavourCompetition1; UFCompetition2; UFCollab; LiptonMojito; LiptonDaiquiri; PinaTea-LaDa

SAMPLE FROM REPORT SA RTD TEA INDUSTRY TRENDS

South Africa’s First and Only Organic Kombucha

o Brew Kombucha, a Cape Town-based kombucha brewing company, is the

first and only producer of certified organic kombucha in South Africa. The

groups’ kombucha products are certified organic by ECOCERT ZA-BIO-

154

o The philosophy of the group places great focus on the environment and

creating and maintaining an ethical business. As such, they make use of

only organic refined sugars as well as organic, black and rooibos teas.

o In addition to being organic, Brew Kombucha products also contain

antioxidants and probiotics as well as indigenous medicinal ingredients,

and are high in vitamin C and vitamin B12, while containing no pesticides.

Cannabinoid (CBD)-Infused Kombucha Products

o The popularity of CBD-infused products has reached the RTD Tea market

in the form of RTD cannabinoid-infused kombucha teas. South African

manufactures have begun combining CBD oils as well as cannabis

terpene into their products.

o Similar to kombucha, cannabinoid products have been linked to several

health benefits and have become increasingly popular among South

African consumers as a result.

o One such example is South African kombucha manufacturer, Happy

Culture, who in December 2019 released their Cherry CBD Kombucha.

This product is available in a cherry flavour and is created by infusing the

kombucha with premium CBD oil.

o Another example is that of CanaBucha who produce Cannabis Terpene-

infused kombucha products, which are also 100% vegan. This product

range is available in three flavours including Tangerine Dream, Lemon

Haze, and Pineapple Express.

2020 | 9Source: CBD; HappyCultureCBD; CannaBucha; News24; BrewKombucha; BKHome; Image; Image2

SAMPLE FROM REPORTSA INDUSTRY INNOVATION AND TECHNOLOGY

2020 | 10Source: Products; Still; Sparkling; SugarFree; Shots; CBDShot

BRAND/PRODUCT IMAGE DESCRIPTION

BOS Ice Tea (Still)

A RTD Tea made with organic rooibos extract that is available in six flavours, including green rooibos, berry,

lemon, peach, lime & ginger, and watermelon & mint. The products in this range are available in pack sizes of

300ml cans (excluding the watermelon & mint flavour), 500ml bottles (excluding the lime & ginger flavour) and 1

litre carton boxes. Selected flavours are also available in 200ml and 3 litre carton boxes.

BOS Sparkling Ice Tea

A carbonated RTD Tea made with organic rooibos extract that is available in three flavours, including pineapple &

coconut, white peach & elderflower, and blueberry & jasmine. The products in this range are only available in pack

sizes of 330ml cans.

BOS Sugar Free Ice Tea

A RTD Tea product made with organic rooibos extract that makes use of stevia as a sugar substitute. BOS Sugar

Free Ice Tea is only available in peach flavour and is available in pack sizes of 330ml cans, 400ml bottles, as well

as 1 litre and 3 litre carton boxes.

BOS Rooibos Shots

A RTD Tea shot consisting of brewed organic rooibos tea, fruit juice concentrates, and various extracts. BOS

Rooibos shots are available in four variants including rooibos probiotic shot, rooibos immunity shot, rooibos

collagen shot and rooibos CBD shot. The products in this range are only available in pack sizes of 50ml bottles.

SAMPLE FROM REPORT RHODES FOOD GROUP: RTD TEA BRANDS/PRODUCTS

2020 | 11This pricing analysis was conducted at retail stores and supermarkets during w/c 23 March 2020.

BRAND AND SIZE

Sir Fruit Brewed

Ice Tea

500ml N/A R16.99 N/A N/A R15.99 N/A N/A N/A

1.5L R31.99 N/A N/A N/A N/A N/A N/A N/A

Woolworths Brewed

Ice Tea

500ml N/A N/A N/A N/A N/A N/A N/A R14.99

1.5L N/A N/A N/A N/A N/A N/A N/A R25.99

6 x 500ml N/A N/A N/A N/A N/A N/A N/A R79.99

Woolworths

Ice Tea

200ml N/A N/A N/A N/A N/A N/A N/A R11.99

6 x 200ml N/A N/A N/A N/A N/A N/A N/A R59.99

Woolworths Lemon

Flavoured Rooibos

Iced Tea

500ml N/A N/A N/A N/A N/A N/A N/A R14.99

1.5L N/A N/A N/A N/A N/A N/A N/A R29.99

SAMPLE FROM REPORT RTD TEA PRICING ANALYSIS

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TABLE OF CONTENTS

EXECUTIVE SUMMARY (3 Pages)

Global Industry Snapshot

South African Industry Snapshot

South Africa Industry Drivers and Challenges

1. GLOBAL RTD TEA INDUSTRY (15 Pages)

1.1 Global Industry Overview

1.2 Global Market Environment

1.3 Global Industry Imports: VALUE HS210120* IMPORT VALUE: 2015-2019** (IN US$ MILLION); TOP 5 HS210120* IMPORTING COUNTRIES: 2019** (IN US$ MILLION) (Graphs)

1.4 Global Industry Exports: VALUE HS210120* EXPORT VALUE: 2015-2019** (IN US$ MILLION); TOP 5 HS210120* EXPORTING COUNTRIES: 2019** (IN US$ MILLION) (Graphs)

1.5 Global Regional Overview: GLOBAL RTD TEA RETAIL SALES, BY REGION: 2019 (IN MILLION LITRES) (Graph)

1.6 Global Industry Trends

1.7 Global Industry Innovation and Technology

1.8 Global Industry Drivers

1.9 Global Industry Challenges

2020 | 13

TABLE OF CONTENTS

2. SOUTH AFRICAN RTD TEA INDUSTRY (23 Pages)

2.1 South African Industry Overview

2.2 South African Market Environment

2.3 South African Industry Trade: SA RTD TEA (HS2101200**) IMPORTS: 2014-2019* (IN ZAR MILLION); SA RTD TEA (HS2101200**) EXPORTS: 2014-2019* (IN ZAR MILLION) (Graphs)

2.4 South African Industry Market: South African RTD Tea Market Definitions

2.5 South African Industry Market: South African RTD Tea Distribution Channel Definitions

2.6 South African Industry Market Size: RTD Tea Market (2014-2019): VALUE OF SA RTD TEA MARKET: 2014-2019 (IN ZAR MILLION) (Graph); SA RTD TEA MARKET CAGR AND

TOTAL GROWTH (IN PERCENTAGE) (Table)

2.7 South African Industry Market Size: RTD Tea Market (2014-2019: By Category): VALUE OF SA RTD TEA MARKET BY CATEGORY: 2014-2019 (IN ZAR MILLION) (Graph)

2.8 South African Industry Market Size Forecast: RTD Tea Market (2020*-2024*): VALUE OF SA RTD TEA MARKET: 2019 & 2024* (IN ZAR MILLION) (Graph); SA RTD TEA

MARKET VALUE FORECAST BY CATEGORY (IN ZAR MILLION) (Table)

2.9 South African Industry Market Volumes: RTD Tea Market (2014-2024*): RETAIL VOLUME OF SA RTD TEA MARKET BY SEGMENT (2014-2024*) (Table)

2.10 South African Industry Market Distribution: RTD Tea Market: CHANNEL DISTRIBUTION FOR RTD TEA PRODUCTS: 2019 (IN PERCENTAGE) (Graph); CHANNEL DISTRIBUTION

(2014 AND 2019) BY OUTLET TYPE (Table)

2.11 South African Industry Trends

2.12 South African Industry Innovation And Technology

2.13 South African Industry Drivers

2.14 South African Industry Challenges

2020 | 14

TABLE OF CONTENTS

3. SOUTH AFRICAN RTD TEA MANUFACTURER & DISTRIBUTOR OVERVIEW (10 Pages)

3.1 Clover SA: Overview

3.2 Clover SA: RTD Tea Brands/Products

3.3 Coca-Cola Company: Overview & RTD Tea Brands/Products

3.4 Pioneer Foods: Overview & RTD Tea Brands/Products

3.5 Rhodes Food Group: Overview

3.6 Rhodes Food Group: RTD Tea Brands/Products

3.7 Sir Fruit: Overview & RTD Tea Brands/Products

3.8 Tiger Brands: Overview & RTD Tea Brands/Products

3.9 South Africa RTD Tea Manufacturers & Distributors: Other

4. SOUTH AFRICAN RTD TEA RETAIL & PRICING ANALYSIS (17 Pages)

4.1.1 SOUTH AFRICAN RTD TEA SUPERMARKET OVERVIEW (8 Pages)

4.1.1.1 South African Retail Overview

4.1.1.2 Checkers: Overview

4.1.1.3 Food Lover’s Market: Overview

4.1.1.4 Massmart: Overview

4.1.1.5 Pick n Pay: Overview

2020 | 15

TABLE OF CONTENTS

4. SOUTH AFRICAN RTD TEA RETAIL & PRICING ANALYSIS (17 Pages) (CONTINUED)

4.1.1 SOUTH AFRICAN RTD TEA SUPERMARKET OVERVIEW (8 Pages)

4.1.1.6 Shoprite: Overview

4.1.1.7 SPAR: Overview

4.1.1.8 Woolworths: Overview

4.1.2 SOUTH AFRICAN RTD TEA CONVENIENCE STORES OVERVIEW (6 Pages)

4.1.2.1 Bonjour & La Boutique (Total): Overview

4.1.2.2 BP Express & Pick n Pay Express (BP): Overview

4.1.2.3 FreshStop (Caltex): Overview

4.1.2.4 QuickShop & Woolworths Foodstop (Engen): Overview

4.1.2.5 Sasol Delight (Sasol): Overview

4.1.2.6 Shell Select & SPAR Express (Shell): Overview

4.2 SOUTH AFRICAN RTD TEA PRICING ANALYSIS (3 Pages)

4.2.1 RTD Tea Pricing Analysis - BOS Ice Tea, Fuze Tea, Lipton Green Ice Tea, Lipton Ice Tea, Lipton Ice Tea Sugar Free, Lipton Ice Tea with Rooibos, Manhattan

Black Ice Tea, Manhattan Green Ice Tea, Sir Fruit Brewed Ice Tea, Woolworths Brewed Ice Tea, Woolworths Ice Tea, Woolworths Lemon Rooibos Iced Tea

– Comparative Pricing at Checkers, Food Lover’s Market, Game, Makro, Pick n Pay, Shoprite, SPAR and Woolworths.

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