Lipton and AriZona battle for first place in RTD iced tea market
Two heavyweights of the ready-to-drink iced tea category are locked in a marketing war over the number one spot in the US market. According to first-half figures, AriZona and Lipton are neck and neck in sales with 39% and 34.8% of market share respectively. Year-to-date sales of Arizona brands are $595 million, compared to $559 million for Lipton brands. These numbers are particularly astounding, given that AriZona is an independent company and has built its reputation without the help of above-the-line marketing, whereas Lipton is investing heavily in marketing for its Lipton Brisk, Lipton Iced Tea and Lipton Pure leaf brands. AriZona relies on an aggressive pricing strategy and bold flavors, and plans to combat Lipton with new partnerships and event sponsorships.