Cullen Agricultural Holding and Long Island Brand Beverage to merge
The ready-to-drink tea category has grown at a strong 6.1 percent annually from 2009 to 2014, and is forecast to grow more than 10 percent annually during the next five years, according to IBISWorlds January 2014 market research report titled RTD Tea Production in the US. Sales in the RTD tea segment are expected to have reached $5.3 billion in 2014.
The research also found that while the sector is competitive with the top four ready-to-drink tea producers accounting for approximately 45% of the market, it has become increasingly fragmented in recent years reducing the barrier to entry for new entrants.
Long Island Iced Tea is a ready-to-drink tea available throughout a multitude of distribution points in the Northeast, covering supermarkets, grocery and convenience stores as well as wholesalers.
The companys products can be found at select supermarkets such as A&P, Waldbaums, Pathmark, ShopRite, Stop & Shop, King Kullen, Western Beef, Keyfood, and many other retail locations.
LIBB is differentiated in the market by providing a healthier, cleaner, bolder tasting iced tea as a result of premium ingredients that include natural cane sugar (sucralose for diet flavors), and hot-filled using black and green tea leaves. Long Island Iced Tea is also gluten-free, non-GMO and has no artificial colorings or flavorings. ■