Tropicana Enters Tea Market

BRADENTON, FLA. – Tropicana Products, buoyed by America’s growing love affair with prepared tea, is enticing consumers with Tropicana Fruit Tea.
The new product, available in raspberry and tangerine flavors and 10-and 16-ounce bottles, is arriving in stores across the country.
Leo Burnett, Chicago, is handling advertising for Tropicana Fruit Tea. Burnett also handles Tropicana Twisters and Tropicana Pure Premium orange juice.
The company declined to discuss details of its campaign for Tropicana Fruit Tea, but suggested it may focus on it being the only national tea brand to contain real fruit juice.
Tropicana is the latest major beverage company eager to tap the $600-million prepared-tea market, which some experts say could top $1 billion this year.
‘This is the year of tea for most beverage companies,’ according to John Frank, editor of Beverage Industry magazine.
Coca-Cola Co. is combining its marketing clout with Nestle S.A. to promote Nestea. PepsiCo is in a joint venture with the Thomas J. Lipton Co. to market Lipton tea.
Frank said these companies are all attempting to catch Snapple Beverage Co., which pioneered the category. Snapple has a market share of 44.2%, according to Information Resources. The tracking service pegs Nestea’s market share at 16.6% and Lipton at 19.4%
Tropicana, a subsidiary of Seagram Co. Ltd., has the resources to challenge the industry leaders, experts say.
Tropicana won’t divulge the budget for Tropicana Fruit Tea, but Frank noted the top three ready-to-drink tea brands spend a combined total of $60 million on advertising.
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