Unilever's hot and cold tea business losing steam in the US
Unilever's business unit that includes tea has seen volumes decrease in three of the past four quarters, while its tea brands continue to suffer from a lack of innovation and fierce competition. Lipton, Unilever's biggest tea brand and the world's second-biggest beverage brand behind Coca-Cola, has surrendered its top spot in the US ready-to-drink tea market to Arizona last year, and has seen many competitors, such as Tropicana, V8 and Vitaminwater, introduce tea-based beverages. The US bagged and loose tea category, worth around $800 million in sales, has also been a challenge for Unilever, as it cedes market share to medium-range brands like Tazo and Twinings. Experts claim that Lipton brand has become too generic and appeals less to the new generation of tea drinkers that are focused more on premium brands, green tea and tisanes.