Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- The market
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- Figure 1: Total US sales and fan chart forecast of tea and RTD tea, at current prices, 2009-19
- Segment performance
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- Figure 2: Total US retail sales and forecast of tea and RTD segmentation, at current prices, 2009-19
- Key players
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- Figure 3: MULO sales of tea at retail, by leading companies, rolling 52-weeks 2013 and 2014
- Millennials top consumers of RTD tea offerings
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- Figure 4: Drinking habits for tea – Any consumption, by generations, May 2014
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- Figure 5: Drinking habits for tea – Any consumption, by generations, May 2014
- RTD teas losing appeal as a beverage replacement for CSDs, juice
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- Figure 6: Attitudes toward tea, May 2014
- Millennials seek tea innovation
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- Figure 7: Attitudes and behaviors toward tea, any agreement, by generation, May 2014
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- Figure 8: Attitudes and behaviors toward tea, by generation, May 2014
- What we think
Issues and Insights
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- Is tea losing its health appeal?
- Issues
- Insight: Focus on flavor and product innovation, in addition to health and wellness
- Do consumers prefer other beverages to tea and RTD tea?
- Issues
- Insight: Attributes from other categories can increase appeal
- Is tea considered an everyday beverage?
- Insight: New ideas and forms will encourage usage for more occasions
Trend Applications
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- Trend: Mood to Order
- Trend: Factory Fear
- Trend: Extend My Brand
Market Size and Forecast
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- Key points
- Steady growth forecast for tea market
- Sales and forecast of tea and RTD tea
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- Figure 9: Total US sales and forecast of tea and RTD tea, at current prices, 2009-19
- Figure 10: Total US sales and forecast of market, at inflation-adjusted prices, 2009-19
- Fan chart forecast
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- Figure 11: Total US sales and fan chart forecast of tea and RTD tea, at current prices, 2009-19
Market Drivers
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- Key points
- Media focus on health supports tea category
- Households with children on decline, could affect tea market
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- Figure 12: Drinking habits for tea – More, by presence of children in household, May 2014
- Figure 13: US households, by presence of own children, 2003-13
- Multicultural interest assists category growth
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- Figure 14: Drinking habits for tea – Any consumption, by race and Hispanic origin, May 2014
Competitive Context
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- Competition with other beverages
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- Figure 15: Frequency of non-alcoholic beverage consumption – Any consumption, November 2013
- Specialty tea shops, tea houses draw attention away from at-home usage
Segment Performance
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- Key points
- Bagged/loose/single-cup and refrigerated RTD tea see strong sales growth
- Sales of market, by segment
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- Figure 16: Total US retail sales of tea and RTD teas, at current prices, 2012 and 2014
- Canned/bottled tea segment sees steady growth at current prices
- Sales and forecast of canned/bottled tea
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- Figure 17: Total US retail sales and forecast of canned/bottled tea, at current prices, 2009-19
- Bagged, loose leaf, single-cup tea segment sales increases through 2019
- Sales and forecast bagged, loose, single-cup tea
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- Figure 18: Total US retail sales and forecast of bagged, loose, single-cup tea, at current prices, 2009-19
- Refrigerated RTD tea sees 6.1% sales growth in estimated 2014
- Sales and forecast of refrigerated RTD tea
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- Figure 19: Total US retail sales and forecast of refrigerated RTD tea, at current prices, 2009-19
- Instant tea segment continues to suffer
- Sales and forecast of instant tea
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- Figure 20: Total US retail sales and forecast of Instant tea, at current prices, 2009-19
Retail Channels
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- Key points
- Supermarkets, other retail channels grow in sales from 2012-14
- Market sales, by channel
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- Figure 21: Total US retail sales of tea and RTD teas, by channel, at current prices, 2012-14
- Figure 22: Total US retail sales of tea and RTD teas, by channel, at current prices, 2009-14
- Natural channel retail sales
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- Figure 23: Natural supermarket sales of tea and RTD tea, at current prices, 2011-13*
- Figure 24: Natural supermarket sales of tea and RTD tea, by organic content, 2011 and 2013*
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- Figure 25: Natural supermarket sales of RTD tea, by type of sweetener, 2011 and 2013*
- Figure 26: Natural supermarket sales of tea and RTD tea, by organic content, 2011 and 2013*
Leading Companies
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- Key points
- Pepsi Lipton Tea Partnership grows category slightly
- Manufacturer sales of tea at retail
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- Figure 27: MULO sales of tea at retail, by leading companies, rolling 52-weeks 2013 and 2014
Brand Share – Canned and Bottled Tea
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- Key points
- The Pepsi Lipton Tea Partnership leads growth
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- Figure 28: Lipton Carl and Stu, Promotional Photo, May 2014
- Figure 29: Real Is Good, Promotional Photo, July 2014
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- Figure 30: Flavor Charged Iced Tea, Facebook Photo, May 2014
- Manufacturer sales of market
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- Figure 31: MULO sales canned and bottled tea at retail, by leading companies, rolling 52-weeks 2013 and 2014
- Overall households buying tea declines slightly as volume buying grows
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- Figure 32: Key purchase measures for the top canned and bottled tea brands, by household penetration, 52-weeks ending April 21, 2013 (year ago) and April 20, 2014 (current)
Brand Share – Ready-to-Drink Refrigerated Tea
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- Key points
- Milo’s, GT’s Kombucha make gains while Coca-Cola expands lead in the segment
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- Figure 33: New Milo’s, Promotional photo, April 2014
- Figure 34: A Message from GT, Mission Statement, June 2014
- Manufacturer sales of segment
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- Figure 35: MULO sales of ready-to-drink refrigerated tea at retail, by leading companies, rolling 52-weeks 2013 and 2014
Brand Share – Bagged, Loose, Single-cup Tea
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- Key points
- Keurig sees largest growth in bagged, loose, and single-cup tea segment
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- Figure 36: How To #BeMoreTea with Lipton & The Muppets!, Commercial, February 2014
- Manufacturer sales of segment
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- Figure 37: MULO sales bagged and loose leaf tea at retail, by leading companies, rolling 52-weeks 2013 and 2014
- Key measures remain constant in bagged, loose, and single-serve tea
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- Figure 38: Key purchase measures for the top bagged. loose tea brands, by household penetration, 52-weeks ending April 21, 2013 (year ago) and April 20, 2014 (current)
Brand Share – Instant Tea
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- Key points
- Tazo’s flavor varieties increase sales in an otherwise shrinking segment
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- Figure 39: Carli’s #TinyWin, Pinterest Photo, February 2014
- Manufacturer sales of segment
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- Figure 40: MULO sales instant tea at retail, by leading companies, rolling 52-weeks 2013 and 2014
- Volume buying and household penetration decline in the shrinking segment
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- Figure 41: Key purchase measures for instant tea brands, by household penetration, 52-weeks ending April 21, 2013 (year ago) and April 20, 2014 (current)
Innovations and Innovators
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- Indulgent and spicy flavors
- New packaging to draw interest
- Single-cup tea
- Tea for kids
Consumer Drinking Habits
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- Key points
- Tea consumption high, men and women 18-34 drinking the most variety
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- Figure 42: Drinking habits for tea – Any consumption, by gender and age, May 2014
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- Figure 43: Household volume use of tea in bags or packages, by age, January 2013-March 2014
- Households with children drive tea consumption
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- Figure 44: Drinking habits for tea – Any consumption, by presence of children in household, May 2014
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- Figure 45: Household volume use of tea in bags or packages, by presence of children in household, January 2013-March 2014
- Northeast most likely to drink tea, most versatile in their selection
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- Figure 46: Drinking habits for tea – Any consumption, by region, May 2014
- Whites least experimental in their tea consumption
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- Figure 47: Drinking habits for tea – Any consumption, by race and Hispanic origin, May 2014
- Income affects consumers’ diverse tea drinking habits.
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- Figure 48: Drinking habits for tea – Any consumption, by age and household income, May 2014
- Young adults most likely to increase tea consumption
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- Figure 49: Drinking habits for tea – More, by gender and age, May 2014
- Households with children significantly more likely to increase tea consumption
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- Figure 50: Drinking habits for tea – More, by presence of children in household, May 2014
- More than a third of respondents drinking less tea
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- Figure 51: Drinking habits for tea – Less, by gender and age, May 2014
Preferences for Ready-to-Drink Teas
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- Key points
- Green tea most popular RTD tea
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- Figure 52: Ready-to-drink tea launches, by tea type, 2009-14
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- Figure 53: Attributes of ready-to-drink tea at retail, by gender and age, May 2014
- Green tea most preferred, Hispanics and Blacks lean toward flavored varieties
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- Figure 54: Attributes of ready-to-drink tea at retail, by race and Hispanic origin, May 2014
Preferences for Bagged, Loose Leaf, Single-cup Tea
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- Key points
- Green tea most sought after, bagged packaging preferred
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- Figure 55: Ready-to-drink tea launches, by tea type, 2009-14
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- Figure 56: Attributes of bagged, loose leaf, single-cup tea at retail, by gender and age, May 2014
- Hispanics, Blacks prefer flavored and green teas; Whites, “other” races interested in unblended and black teas
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- Figure 57: Attributes of bagged, loose leaf, single-cup tea at retail, by race and Hispanic origin, May 2014
Time of Day/Meal Occasions for Consuming Tea
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- Key points
- Afternoon, with lunch most popular occasion to drink tea
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- Figure 58: Occasions for tea consumption, May 2014
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- Figure 59: Time of day for tea consumption, May 2014
- Young adult men prefer RTD tea, women bagged/loose leaf with breakfast
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- Figure 60: Occasions for tea consumption – With breakfast, by gender and age, May 2014
- RTDs preferred with lunch
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- Figure 61: Occasions for tea consumption – With lunch, by gender and age, May 2014
- Bagged, loose leaf tea top beverage choice with dinner
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- Figure 62: Occasions for tea consumption – With dinner, by gender and age, May 2014
- Men aged 18-34 most likely to drink tea with a snack
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- Figure 63: Occasions for tea consumption – With a snack, by gender and age, May 2014
- Millennials most likely to drink tea on its own as a snack
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- Figure 64: Occasions for tea consumption – As a snack on its own, by gender and age, May 2014
- Bagged, loose leaf tea best for socializing
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- Figure 65: Occasions for tea consumption – When socializing with friends, family, or acquaintances, by gender and age, May 2014
Locations for Consuming Tea
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- Key points
- At-home top location for tea consumption
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- Figure 66: Locations for tea consumption, May 2014
- RTD teas most popular with men, bagged/loose leaf with women for at-home tea consumption
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- Figure 67: Locations for tea consumption – At home, by gender and age, May 2014
- RTD teas most popular for on-the-go drinking
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- Figure 68: Locations for tea consumption – While out of home (eg, running errands, shopping, driving), by gender and age, May 2014
- Millennials most likely to drink tea at work or school
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- Figure 69: Locations for tea consumption – At work/school, by gender and age, May 2014
Attitudes towards Tea
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- Key points
- Respondents take notice of the healthfulness of tea
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- Figure 70: Attitudes toward tea, by gender and age, May 2014
Behaviors and Attitudes towards Tea and Tea Innovation
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- Key points
- Young adult consumers most interested in tea innovation
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- Figure 71: Agreement with attitudes and behaviors toward tea, by gender and age, May 2014
- Respondents with children in the household are significantly more likely to be interested in new varieties and flavors
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- Figure 72: Agreement with attitudes and behaviors toward tea, by presence of children, May 2014
- Multicultural consumers most interested in flavor, variety expansion
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- Figure 73: Agreement with attitudes and behaviors toward tea, by race and Hispanic origin, May 2014
Race and Hispanic Origin
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- Key points
- Locations for tea consumption by race and Hispanic origin
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- Figure 74: Locations for tea consumption – At home, by race and Hispanic origin, May 2014
- Figure 75: Locations for tea consumption – While out of home (eg, running errands, shopping, driving), by race and Hispanic origin, May 2014
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- Figure 76: Locations for tea consumption – At work/school, by race and Hispanic origin, May 2014
- Time of day tea consumption by race and Hispanic origin
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- Figure 77: Time of day for tea consumption – Morning, by race and Hispanic origin, May 2014
- Figure 78: Time of day for tea consumption – Afternoon, by race and Hispanic origin, May 2014
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- Figure 79: Time of day for tea consumption – Evening, by race and Hispanic origin, May 2014
- Meal occasions for tea consumption by race and Hispanic origin
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- Figure 80: Occasions for tea consumption – With breakfast, by race and Hispanic origin, May 2014
- Figure 81: Occasions for tea consumption – With lunch, by race and Hispanic origin, May 2014
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- Figure 82: Occasions for tea consumption – With dinner, by race and Hispanic origin, May 2014
- Figure 83: Occasions for tea consumption – With a snack, by race and Hispanic origin, May 2014
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- Figure 84: Occasions for tea consumption – As a snack on its own, by race and Hispanic origin, May 2014
- Figure 85: Occasions for tea consumption – When socializing with friends, family, or acquaintances, by race and Hispanic origin, May 2014
Appendix – Other Useful Consumer Tables
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- Drinking habits for tea
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- Figure 86: Drinking habits for tea, May 2014
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- Figure 87: Drinking habits for tea – Any consumption, by generations, May 2014
- Preferences of ready-to-drink teas at retail
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- Figure 88: Attributes of ready-to-drink tea at retail, May 2014
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- Figure 89: Attributes of ready-to-drink tea at retail, by drinking habits for tea – Drinking more, May 2014
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- Figure 90: Attributes of ready-to-drink tea at retail, by drinking habits for tea – Drinking more, May 2014 (continued)
- Preferences of bagged, loose leaf, single-cup tea at retail
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- Figure 91: Attributes of bagged, loose leaf, single-cup tea at retail, May 2014
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- Figure 92: Attributes of bagged, loose leaf, single-cup tea at retail, by drinking habits for tea – Drinking more, May 2014
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- Figure 93: Attributes of bagged, loose leaf, single-cup tea at retail, by generations, May 2014
- Time of day for consuming tea
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- Figure 94: Time of day for tea consumption – Morning, by gender and age, May 2014
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- Figure 95: Time of day for tea consumption – Afternoon, by gender and age, May 2014
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- Figure 96: Time of day for tea consumption – Evening, by gender and age, May 2014
- Attitudes toward tea
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- Figure 97: Attitudes toward tea, by race and Hispanic origin, May 2014
- Behaviors and attitudes toward tea and tea innovation
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- Figure 98: Attitudes and behaviors toward tea, May 2014
- Experian Market Services, consumption of RTD iced tea by brand
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- Figure 99: Adult personal consumption of ready-to-drink iced tea by brands, by age, January 2013-March 2014
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- Figure 100: Adult personal consumption of ready-to-drink iced tea by brands, by presence of children in household, January 2013-March 2014
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- Figure 101: Teen personal consumption of ready-to-drink iced tea by brands, by gender, November 2012-December 2013
- Experian Market Services, consumption of RTD iced tea by brand
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- Figure 102: Adult personal consumption of ready-to-drink iced tea by brands, by age, January 2013-March 2014
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- Figure 103: Adult personal consumption of ready-to-drink iced tea by brands, by presence of children in household, January 2013-March 2014
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- Figure 104: Teen personal consumption of ready-to-drink iced tea by brands, by gender, November 2012-December 2013
Appendix – Information Resources Inc. Builders Panel Data Definitions
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- Information Resources Inc. Consumer Network Metrics
Appendix – Trade Associations
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