Liquid Tea Concentrates: Key to Younger Shoppers, Higher Sales

In the rapidly evolving beverage market, independent grocers have a golden opportunity to capture a growing segment of consumers by stocking liquid tea concentrates. This emerging category is experiencing significant growth and presents a unique chance for retailers to boost sales and engage younger, loyal shoppers. Red Oval Partner Lipton, maker of TAZO liquid tea concentrates, explains why independent grocers should consider adding liquid tea concentrates to their tea aisle and how best to merchandise these products.

Why Stock Liquid Tea Concentrates?

1. Growing Market Segment
   Liquid tea concentrates are now the third-largest segment in the packaged tea market, following traditional tea bags and iced tea powders. Over the past three years, the segment has grown by 39%, outperforming other tea products in terms of sales growth*. With over $101 million in sales in the past year alone, the liquid tea concentrate category shows no signs of slowing down.
   
   
2. High Dollar Sales per Store 
   Compared to other tea products, liquid concentrates have one of the highest dollar sales per store, selling at 1.7x the average packaged tea SKU. On average, liquid concentrates bring in $452 per store, compared to $234 for tea bags*. This makes it a highly profitable option for independent grocers looking to maximize shelf space profitability.
   
   
3. Recruitment of Younger Consumers 
   Liquid tea concentrates are a key driver in attracting younger, more diverse shoppers. Gen Z and Millennials, who make up a significant portion of the beverage market, are increasingly shifting away from foodservice purchases at places like Starbucks and opting for at-home beverage solutions. By stocking liquid concentrates, you cater to these consumers' demand for convenient, customizable, café-style drinks they can enjoy at home.
   
   
4. Versatility Across Seasons
   Unlike some seasonal beverages, liquid tea concentrates can be consumed both hot and cold, making them a year-round favorite. This reduces the impact of seasonality on sales, keeping the category consistently profitable.

How to Merchandise Liquid Tea Concentrates

1. Positioning in the Tea Aisle
   Place liquid tea concentrates within the specialty tea section of your tea aisle. Shoppers who are exploring new flavors and seeking premium tea experiences will naturally gravitate towards this area. Offering liquid concentrates alongside other high-quality tea products, such as herbal and wellness teas, creates a cohesive, premium tea experience.
   
   
2. Feature Popular Brands Like TAZO
   TAZO leads the liquid concentrate segment, with a 70% dollar share and a strong brand presence. The TAZO Classic Chai, for example, is the second best-selling item in the packaged tea category. Stocking familiar brands like TAZO, which already have consumer trust, can help boost sales and attract frequent buyers. See the optimal assortment of TAZO liquid concentrates, according to Lipton, below.
   
   
3. Appeal to Younger, Multicultural Shoppers
   Leverage the fact that liquid tea concentrates over-index with Gen Z and Millennials. Highlight the affordability and convenience of liquid concentrates as a home café solution, offering them a cost-effective alternative to pricey café drinks.
   
   
4. Shelf Layout Optimization
   Optimize the layout by clearly separating conventional tea bags from specialty tea products, including liquid concentrates. This segmentation allows shoppers to easily find what they are looking for based on their specific tea preferences—whether it’s classic tea bags or flavorful, customizable liquid concentrates.
   
   The TAZO concentrates are best located right in the middle of the package tea aisle among the specialty teas. 

As an independent grocery retailer, carrying liquid tea concentrates is a strategic move to tap into a fast-growing, profitable category. By positioning these products prominently within your specialty tea section, and appealing to younger, multicultural consumers, you’ll not only boost sales but also build long-term loyalty. Liquid tea concentrates are a versatile, high-margin product that deserves a place on your shelves today.

Ready to get started with TAZO concentrates? Order directly from your wholesaler or contact Lipton's Marquis Denson.