Dive Brief:
- After being stuck in ownership disputes for seven years, Arizona iced tea is finally poised to make a comeback after losing, time, market share, and investment opportunities as the court battles went on. The Arizona brand still had just over 20% of market share in the RTD tea market last year.
- Don Vultaggio, co-founder of Arizona who regained full control from his partner in May, is moving forward with an expansion that will double the space at Arizona's New Jersey facility, this month's launch of an all-natural tea made from tea leaves instead of powder, called Good Brew, and the rollout of a lager called Crazy Cowboy in the fall.
- Vultaggio told The Wall Street Journal that he wants to double company sales in five years.
Dive Insight:
The RTD tea category is becoming crowded with big names like Coca-Cola, PepsiCo's partnership with Unilever, Dr Pepper Snapple, and Nestle SA all making it into the top 10 brands by market share. RTD tea was a $5.3 billion market in the U.S. last year and has been growing at a CAGR of 3.7%. This growth has solidified the category as a veritable beverage option as soda and other sugary beverages fall out of favor with consumers who are concerned about their health.
In addition to its all-natural tea launch, Arizona started offering a higher-priced version of its Arizona brand that was sweetened with sugar instead of high fructose corn syrup.
Vultaggio referred to the ownership disputes as "a decade of waste and foolishness" in his interview with The Wall Street Journal.