Joe Tea Touts Value of Flexibility in Move to Plastic
Joe Tea founder and president Steven Prato and COO Ann Prato sang the virtues of being flexible during times of crisis as the brand has introduced its flagship iced tea line in 18 oz. plastic bottles.
The brand leaders explained that the extension came out of necessity during last year’s supply chain disruptions. While Joe Tea is traditionally packaged in 20 oz. glass bottles, a supply shortage forced the company to take whatever packaging was available, with PET plastic being the most abundant.
“It was that or nothing,” Steven Prato said. “And our customers like it better than nothing.”
With glass bottles and custom branded caps both scarce,Steven Prato, said that brands (and consumers) can’t afford to be “picky perfectionists” about packaging and presentation.
“Demand was not an issue, it was supply,” Ann Prato said. “We worked hard to shore up supply.”
The move has helped Joe Tea to significantly expand its business throughout the pandemic. The New Jersey-based brand has grown from “one and a half” production facilities pre-COVID to five manufacturing sites across the U.S. and Canada, including a Houston, Texas location which opened last year.
Plastic has also allowed Joe Tea to sell at a lower price point, around $2 per bottle compared to $3 in glass. The company can also fit about 1,000 extra cases on each truck thanks to the simpler packaging, Steven Prato said. The success in plastic is now leading Joe Tea to expand its offerings with a 20 oz. plastic bottle line in addition to the 18 oz. and glass offerings.
However, glass still has a role to play. The brand is introducing its diet line in 16 oz. glass to “take on the old Snapple diet business,” which was itself previously packaged in glass before moving to plastic, Steven Prato said. There’s also an opening to expand Joe Tea’s low sugar and unsweetened tea offerings following Coca-Cola’s decision to discontinue Honest Tea, he added.
The company also expanded its lemonade line with additional flavors this winter in PET bottles and will now introduce the drinks in its traditional 20 oz. glass format with production scheduled to begin by the end of the month.
RTD Boba Tea Brands Innovate as Category Emerges
Despite its popularity as a foodservice commodity, boba tea (also called bubble tea) has struggled to make the leap to ready-to-drink formats in large part due to the delicate formulation required to keep the tapioca boba stable. As formulators believe they’ve cracked the code, several startups made an appearance at the Summer Fancy Food Show to establish a stake in this emerging CPG category.
INOTEA, one of the first brands to enter the RTD boba tea space in cans, showcased its new Bursting Bubble Tea line made without milk and featuring – what else – bursting bobas filled with fruit juices. Flavors include Mango + Red Dragon Fruit, Mixed Berries + Hibiscus and Passion Fruit + Apple packaged in 17.3 oz. cans. The company said it is primarily distributed in Asian specialty stores along with ecommerce but it is now beginning to target mainstream conventional accounts.
DaoHer Beverage had previously launched a dairy-based canned boba tea line but is now offering a plant-based option with a Boba Oat Milk tea in 10.5 oz. cans. Available in Brown Sugar and Royal Assam black tea varieties, the drinks contain 100 calories per can compared to 110 to 150 calories on the dairy line. The drinks are available through UNFI and KeHE as well as online.
Canadian brand Bobba, meanwhile, is looking to make its U.S. debut this year. Launched last year, Bobba’s teas come in 12 oz. bottles and flavors include Watermelon, Peach and Strawberry. Retailing for CAD$4.99, the brand is available nationwide in Canada through retailers like SoBees and is now launching Mango Lemonade and Dragon Fruit Lemonade flavors.
Lifeway Supports Ukraine with Charity Bottle
Julie Smolyansky, CEO of kefir brand Lifeway Foods, has always been proud to share her Ukrainian heritage and never shied away from how her family’s experience as refugees from the former Soviet Union led to the company’s founding. Now, as the Russian invasion of Ukraine approaches its fifth month with no signs of ending, Smolyansky is working to give back and support the country where she was born with a limited time Charity Relief Kefir.
The 32 oz. plain kefir features blue and yellow branding and a “Peace for Ukraine” icon on the front while the side includes the story of Smolyanksy’s father, who left Kyiv for the U.S. in 1976 and layer founded Lifeway in 1986. The bottle also includes a QR code that consumers can scan to learn more about how to support the country and displaced Ukrainians.
“I was a refugee when I was 1 and what resonated for me was this new generation of refugees the war is creating,” Smolyansky told BevNET. “To me it’s very personal … and I had an obligation to share my story.”
The bottles will sell for about $1 above the core line price — $4.99 to $5.99 depending on the retailer — to support multiple charities. Smolyansky said retailers have waived slotting fees and the kefirs will be distributed through KeHE and UNFI among other distributors.
The charity bottle is only the latest campaign Lifeway has launched to raise money for Ukraine. Earlier this year the company hosted a fundraiser in Chicago featuring celebrity chefs and has raised about $700,000 to date, which includes two $100,000 donations from trade show promoter New Hope Network and collagen products brand Vital Proteins. Smolyansky said she hopes the charity bottles will bring in an additional $1 million for the effort.
“It’s the small little thing we can do,” she said. “When you’re helpless, you have to help someone.”