Just because a brand is steeped in history doesn’t mean it can’t transform when tastes, marketplaces, and values shift. A notable example is Lipton, a company rooted in tradition since 1880, which is actively pursuing new paths to achieve responsible growth. Recently, Lipton CEO Nathalie Roos and North American President Racquel Harris Mason shared their insights during the Consumer Goods Forum Global Summit in Chicago. Now operating as Lipton Teas and Infusions, the brand includes various sub-brands, such as Pukka, T2, PG Tips, and Tazo.
Roos stated, “I came for this mission to transform the industry and really create value for all, improving the experience and having more consumers buying more tea at a higher quality.” Despite tea being the most widely consumed beverage globally after water, it accounts for only 6% of market value, signifying potential for growth in a neglected category.
To tap into consumer preferences, the company is focusing on several contemporary factors, including taste, variety, convenience, affordability, health, and sustainability. In an effort to attract younger consumers, Lipton has revamped its green tea portfolio with new flavors and varieties, like peach and honey ginger, resulting in a 57% growth spike. This initiative is vital as Gen Z is increasingly seeking healthier beverage options.
Moreover, the acquisition of the Tazo brand opens new avenues, offering latte mixes and iced tea alternatives that cater to modern beverage trends. Roos and Mason emphasize that marketing efforts will highlight the health benefits of tea, backed by clinical research. They assert that two cups of tea a day can help protect heart health.
Corporate responsibility is also integral, with initiatives like sourcing tea sustainably in Kenya. Lipton’s leadership is committed to creating new standards in quality and social responsibility. By aligning with Gen Z’s values, Lipton addresses the demand for transparency and meaningful initiatives. Both Roos and Mason’s passion for tea shines through as they aim to solidify Lipton’s position in a rapidly evolving beverage market. Their strategy not only values legacy but also embraces innovation, ensuring Lipton thrives in the future.
