Long Island Iced Tea Corp. Grows, Looks to New Segments
Category segment has been fueled by a consumer shift away from carbonated soft drinks to healthier alternatives
Long Island Iced Tea Corp., a growth-oriented company focused on the ready-to-drink (“RTD”) tea segment in the beverage industry, announced that it achieved a 109% annual sales growth for the last 12 months ended March 2015. The RTD tea market is $5.3 billion in size and expected to grow at 10% annually over the next 5 years (Source: IBISWorld Industry Report OD4297: RTD Tea Production in the US). This growth has been fueled by a consumer shift away from carbonated soft drinks to healthier alternatives. The company continues to develop its existing sales channels and expand distribution networks as its market presence continues to grow. Over the last twelve months, the company has entered new markets which include: Pennsylvania, Massachusetts, New Hampshire, Rhode Island, Delaware, Virginia, Maryland, Florida, as well as parts of the Caribbean. The company has also grown its product offering to include gallon size packaging for customers seeking to buy in bulk and a low calorie 12 ounce product line for local area schools.
“We are excited to have Julian Davidson, a seasoned veteran in the space, as a partner in our efforts to explore entering into the dynamic alcohol industry.”
The company also announced that is has begun exploring entry into the $200 billion alcohol industry, with the hope to establish itself as multi-beverage alcohol and non-alcohol company.
Philip Thomas, CEO of the company, commented, "We continue to develop a strong presence in the RTD tea market and believe we are well positioned to capitalize on a market that has grown significantly over the past several years and is expected to continue seeing robust expansion going forward. At the same time, capitalizing on our strong brand and product, we believe we may be able to take advantage of another shift in consumer demand within the alcohol segment – one that is being driven primarily by Millennials who are increasingly moving away from beer, and to wine and spirits. We are very excited about where we stand as a business and the tremendous runway for growth we have ahead of us.”
The Company hopes to have alcohol beverage products in the market as early as June 2016. To assist the Company in exploring this initiative, the company has engaged Julian Davidson as a consultant to spearhead this new initiative. Mr. Davidson has nearly 25 years of experience in the alcoholic beverage industry, including most recently serving as Chief Executive Officer of Independent Liquor NZ’s businesses in New Zealand, the United States and Canada. Independent Liquor NZ is New Zealand's leading manufacturer and distributor of pre-mixed RTD alcoholic beverages, as well as having beer, spirit and cider portfolios, and is recognized for its highly innovative approach to brand development and marketing. Independent Liquor NZ was sold to Asahi in 2011 for approximately NZ$1.5 billion. (Source: UnitasCapital Press Release; August 18, 2011)
Mr. Thomas commented, "We are excited to have Julian Davidson, a seasoned veteran in the space, as a partner in our efforts to explore entering into the dynamic alcohol industry.”