Inside RTD Tea

52 Weeks through 12/25/2011

The news that Coke and Nestle were breaking up their agreement to sell Nestea in the U.S. might have seemed like a blockbuster decision, but it was also kind of small potatoes for companies with much larger brands that are growing on their own. Look at the way newcomers Gold Peak, Honest and (Monster Beverage Co.-produced, Coke distributed) Peace Tea are performing against Nestea, for example, and you see why Coke might want to try another in-house brand to make up the volume; meanwhile, Nestea gives Nestle a name brand to mainstream alongside Tradewinds and Sweet Leaf, both of which are showing steady growth as they get put into national distribution. Still, if it’s growth these companies are looking for, the brand that’s got it is AriZona. Who feels like opening the old checkbook?