Nestea®

Gets people to drink iced tea in the winter

CHALLENGES

Winning Market Share: Nestea® was struggling to win market share  from Lipton, the category leader. Rainer Schmidt, the Marketing Director for Tea, was looking for a way to innovate in this space.  The usual approach of using market trends to develop new products wasn’t generating the  revenue or inspiration needed to oust Lipton.Adhereing to Non-Compete Restrictions  Nestea® is a subsidiary of Beverage Partners Worldwide (BPW), the joint venture between Coca Cola and Nestle. BPW enforces strict non-  compete restrictions. This meant that Nestea® had to innovate while steering clear of the soft drink & hot beverage markets.

 

SIT APPROACH

By using the SIT methodology, we were able to help their team reevaluate the relationshipbetween beverage consumption and seasonality.  Nestea®’s team challenged the expectation that  iced tea is only for the summer and launched a  line of iced tea intended for the winter.The team applied their existing strength in flavor innovation to ensure a product that consumers would embrace within their winter drinking habits. The tea can be consumed at room temperature or heated.
They redefined their target market as a “ready-to-drink tea” company, and created a platform rather than just a new product.

 

RESULTS

  • 3 New Products Launched
  • 10% Revenue Increase
  • 100% Sold Out Winter Collection in First Week

Nestea’s “winter collection” helped the busines carve out a new space in the tea market.

1. 2004 limited-edition “Snowy Orange” sold out in Germany in 1 week

2. 2005 limited-edition “Snowy Orange” sold out in Germany & Switzerland

3. 2006 “Snowy Orange” European roll-out

4. Winter flavors in microwavable bottles introduced across Europe shortly aftera

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