5 minutes high profile PowerPoint presentation (with 5 minutes script) on the "Technical development" of Instant Herbal Tea. Need to work on the "Technical development" of Instant Herbal Tea (flavor
Preliminary Market Research:
Canadian Tea Market
Value of tea imports to Canada - 138.81 million USD
The volume of tea imports to Canada - 40,770 Metric tons
Volume of tea imports from Canada - 3,020 Metric tons
Retail Landscape in 2019
Sales value of tea - 248.34 million CAD
Units of tea sold - 52.63 million Unit
Average retail price - 4.28 CAD per 72 bags
Preferences and Consumption
Share of tea consumption vs coffee - 42.3%
Canadian who drinks tea everyday - 27.4%
Canadian who usually buy tea from supermarkets - 66.4%
Canadians who believe from specialty tea houses - 12%
Households in Canada spent an average - 37 CAD on tea
Canadians favourite flavour is orange pekoe -17.9%
Sales Orange Pekoe
Tea sales in Canada can be categorized into three main product types:
Specialty tea - Sales 146.76 million CAD
Regular tea
Loose tea.
*in terms of flavour Orange Pekoe - Sales 75 million CAD
Defining The Product: Three basic parameters.
Scope:
Instant Herbal tea (UNIQUE)
Produce by (China/India/Srilanka)
Geographical Scope “CANADA”
Benefits: The health benefits ascribed to the consumption of teas may be related to the high content of bioactive ingredients such as polyphenols. Polyphenols have been reported to possess antioxidant, antiviral, and anti-inflammatory activities; modulate detoxification enzymes; stimulate immune function and decrease platelet aggregation (Lampe 2003; Frankel and Finley 2008). Among all tea polyphenols, epigallocatechin gallate (EGCG) has been found to be responsible for much of the health-promoting ability of GT (Khan et al.2006).
Cost: Average retail price for tea in Canada from January 2015 to February 2021
(in Canadian dollars per 72 bags) (See appendix 6)
Time:
Competition:
According to Euro Monitor, major brands include DavidsTea Inc and Tata Global Beverages Canada Inc.
Market Data Forecast profiled the North American market, which comprised the US and Canada. The report showed that some of the key market leaders in North America include Tata Global Beverages Canada Inc, Unilever, Associated British Foods, TAETEA, Nestle, Barry's Tea, Apeejay Surrendra Group, Bettys & Taylors Group, McLeod Russel, and ITO EN Inc.
Sales value of tea in Canada in 2019, by flavour in million Canadian dollars(See appendix 1) and Sales growth of tea in Canada in 2019, by flavour (See appendix 2). Shopping locations where consumers usually buy tea in Canada as of February 2019(See appendix 3)
Predevelopment Activities: In the predevelopment activities of the product development process, steps prior to the actual development of the product are usually forgotten. We'll start by looking at the growing amount of evidence pointing to problems in the way many industrial companies approach the pre-development stage. Evidence also suggests that the success or failure of a new product endeavour is often defined before it ever enters the product development stage. Second, we look at how managers may, should, and have enhanced the effectiveness of these critical early stages of the innovation process.
Technical development
Instant tea was first developed in the United Kingdom in 1885. The earliest form of instant tea is a paste made of concentrated tea extract, sugar, and evaporated milk. Instant tea was not highly noticed until the technology of spray-drying was invented and allowed the concentration of tea flavour without damage.
There are six steps to produce instant tea: selection of raw materials, extraction, aroma stripping, tea cream processing, concentration, and drying. The small and simple packaged instant tea products have been through many complicated processing procedures since their origin source: Camellia Sinensis Plant. The primary types of tea are black tea, green tea, white tea, oolong tea, pu-erh tea, purple tea, and herbal infusions. And they all come from the same plant Camellia Sinensis, which originated in southern China thousands of years ago. Through different harvesting and processing methods, each of these teas gains its unique features. Some teas are harvested in the first weeks of the spring season, while others are harvested in the summer and fall. Some teas are steamed, some are pan-fired. Some are allowed to oxidize, and some aren’t. Some tea leaves are hand-formed into tightly rolled balls, while others are roughly chopped or left to air-dry in their natural shape. Herbal tea is not actually made from the Camellia Sinensis tea plant. They are infused with different herbs and spices, for example, the single-ingredient teas like Peppermint and Chamomile, and the blends like Lavender Lullaby and Atomic Gold.
The important step to making instant tea is extracting the liquor from processed leaves, tea wastes, or undried fermented leaves. Then concentrate the extract under low pressure, and use freeze-drying, spray-drying, or vacuum-drying to dry the concentrate to a powder.
Freeze-drying
Freeze-drying (Appendix 7) can also be called lyophilization or cryodesiccation. It’s a process that dehydrates tea leaves by freezing them, lowers their temperature, and removes the ice by sublimation. Freeze-drying is the method that can retain the highest level of antioxidant properties compared to other drying methods. It can also keep the aroma, rehydration, and bioactivity at the best level. However, the cost of freeze-drying is the highest.
Spray-drying
Spray-drying is to produce powder from liquid or slurry with a hot gas. (Appendix 8)
Vacuum-drying
Vacuum-drying is performed in an airtight vessel using a vacuum pump.
Business Development:
According to studies, consumers are more concerned in the type of tea than the price of tea. The type of tea is the most essential attribute that buyers seek for when purchasing tea, followed by flavor, brand, and finally price. Despite the fact that pricing is the least essential factor, customers still want the most value for their money, which may be another reason why they want to try the tea before buying it.
Tea Drinker Profile: Herbal Tea Drinkers
Who are they?
- 53% Female
- 42% Urban, 49% Suburban
- Mostly Ontario (45%) and Western Canada (31%)
- 44% in 3-4 person households (44% with kids)
- 45% Light Drinkers
What do they like?
Herbal tea consumers appreciate tea and espresso similarly. They like green and dark tea similarly, and they will in general drink green tea on non-weekend days. Attempting new flavors is a thing Herbal do frequently, and on the grounds that many new mixes are made in free leaf tea, they drink heaps of loose leaf!
What are their purchase habits?
As far as tea, they buy an assortment of flavors, types, and brands. Concerning tea stuff, they buy free leaf tea, infusers, and travel mugs. 48% of their total purchases are made at grocery or mass product stores, and 15% of their purchases are made at specialty stores.
What are their associations with tea?
They find tea has directionally stronger associations with health. They also drink tea because it helps them relax, and it helps with sleep and anxiety.
Tea Drinker Profile: All Tea Drinkers in Canada
Who are they?
- 55% Female
- 39% Urban, 46% Suburban
- Mostly Ontario (51%) and Western Canada (26%)
- 35% in 3-4 person households; 33% in 2-person
- 41% Medium Drinkers
Tea Drinkers Segmented
35 % - Heavy Drinkers
- Individuals who drink 8 or more cups of tea per week
- Average number of cups per week: 14.
- Older households with no kids
- Tend to be female
41% - Medium Drinkers
- Individuals who drink 3-7 cups of tea per week
- Average number of cups per week: 5.0
- Similar to average respondent in terms of age, income and household size
23% - Light Drinkers
- Individuals who drink 1-2 cups of tea per week
- Average number of cups per week: 1.4
- Younger households
- Tend to be single member households
Communicating the Health Benefits of Tea
The Tea Association of Canada has been working to raise tea consumption in Canada by communicating the health benefits of tea so that people would think about it and prefer it over other beverages in the future! The Tea Association of Canada recently launched two initiatives, DrinkTea and Hot Tea Month, and there are plenty of potential for Japanese firms to develop similar campaigns to encourage tea consumption.
References
https://www.researchgate.net/publication/222289497_Predevelopment_Activities_Determine_New_Product_Success
https://www.statista.com/topics/5237/tea-market-in-canada/#topicHeader__wrapper
https://www.artfultea.com/tea-wisdom-1/types-of-tea-a-comprehensive-guide
https://en.wikipedia.org/wiki/Instant_tea
https://www.britannica.com/topic/tea-beverage
https://en.wikipedia.org/wiki/Freeze-drying
https://en.wikipedia.org/wiki/Spray_drying
https://www.o-cha.net/english/association/information/documents/Louise.pdf
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