Continuing its mission to make tea more accessible across North America, DAVIDsTEA announced today its first foray into the ready-to-drink category with a three-SKU line of sparkling cold brew teas.
Offered in three of the brand’s most popular flavors – Magic Potion, Organic Cream of Earl Grey, and Organic Queen of Tarts – the cold brew tea comes in 12 oz. cans priced at $3.99 each. The RTDs are available in single cans at DAVIDsTEA stores across Canada and on the brand’s website for $14.99 per 4-pack.
“For us, [this product line] was a really important evolution of our story and of our bigger mission [of making] tea accessible and easy. This is one way that we are excited to bring tea into places where you might not have tools to brew,” said CEO Sarah Segal.
Founded in 2008, the Montreal-based company produces a portfolio of loose-leaf teas, tea sachets, matcha powders, and, most recently, a limited edition bubble tea kit. By October, DAVIDsTEA will operate 20 stores throughout North America.
Choosing to launch the cold brew RTD line with the brand’s existing profiles was both an opportunity and a challenge, Segal said, as it required a significant amount of R&D trial and error to capture the essence of DAVIDsTEA’s loose-leaf varieties. DAVIDsTEA teamed up with an undisclosed partner who is “obsessed with tea” to co-develop its cold brew process.
To meet the various needs of its wide consumer base, the cold brew teas feature different caffeine and sugar levels. Magic Potion (caffeine-free) and Organic Cream of Earl Grey (low caffeine) both have 10 grams of sugar, while Organic Queen of Tarts (medium caffeine) has zero sugar.
DAVIDsTEA chose to launch the new product line strategically within its own network of stores and on its website because, according to Segal, it is the most convenient – and most cost–effective – way to receive consumer feedback from those who know the brand best.
“We always feel the best test is our customer network when it comes to getting feedback. Luckily, we have this network of stores where we can test affordably and that’s a really big advantage,” said Segal.
The global coffee and tea market is currently valued at $145.9 billion and is projected to grow at a CAGR of 5.36% between 2024 and 2028, according to market researcher Statista.
Looking ahead, Segal said DAVIDsTEA is “very open” to more RTD line developments with zero sugar and caffeine-free attributes. But for now, the brand is focused on receiving feedback from consumers already familiar with the brand before expanding into grocery stores and other retailers.
“Where we go next is going to be figuring out how many SKUs and products we need, for example, for a national grocery lineup. But we started with three [SKUs] to get a read on them,” said Segal.