Tea Category -1.

RTD (Ready To Drink)

2. NRTD (Not Ready To Drink)
Top 5 Markets in Tea category are:
1.
2.
3.
4.
5.

United States
Japan
Turkey
Brazil
Indonesia

Top 5 brands in Tea Category are:

1.
2.
3.
4.
5.

Sokenbicha
Nestea
Matte Leao
Ayataka
Dogadan

Coca Cola (KO) is a bigger player in the RTD category (Iced tea) as
compared to NRTD.
RTDT is further divided into Packaged and Unpackaged categories.
Unpackaged RTDTs major markets are US, Canada and Brazil.
B.P.W. (Brand Partners Worldwide) - Earlier, Coca Cola and Nestle
together used to make Nestea. Some markets still come under BPW.
KOs Tea markets have been divided into 4 buckets:
1. FUZE Tea (Those markets which are having Fuze Tea volume
Kazakhstan and Mexico [Markets can move from one bucket to
another. Eg.- Before 2015, India belonged to BPW markets. Now, it
comes under Fuze tea bucket.
2. FUZE In North America, the product is called Fuze.
3. Real Leaf 4/5 countries now. After 2020, only China.
4. BPW & Others Others(Total-(Fuze tea + Fuze +Real Leaf + BPW))
For Tea category, Nielsen provides data for only 22 markets.
Databases used in Tea:
1. Compass Volume of products coming out of factory get updated
in Compass.
We can get Volume/month or /week
Every feature is present, from category level to product level.
We use compass for Industry Estimates (entire industry data) and
TCCC volumes (RTD packaged and RTD unpackaged).
2. Nielsen Nielsen provides Retailer data. Provides projections based
on sample sizes.

It is updated every fortnight. Along with current 15 days data, it

updates the last data as well to reduce the errors (3%)
(Retrospective update).
Nielsen DB -> Global
-> Market Level (Respondent data)
3. Euromonitor It provides category level and industry level data.
Mainly famous for projections. For dfiiefrnt brands
On trade(food service) and Off trade(retail)
4. Redbook Created by in house team of KO. Only for top 32
markets. Can be called balance sheet of Coke. Non-sharable.
Different types of surveys are done: Canadian Survey, DineRestaurant survey, FSR- Full service rest., QSR-Quick Service Rest.
5. B3 (Brand Beverage Barometer) States Brand Equity (Brand
Health) based on respondent level data.
6. CBL (Consumer Beverage Landscape) - Gives overview of the
Consumer. Explains 5 Ws (Who, What, When, Where and Why)
Who- gender/age/geography of consumer
What-Category/Brand
When-Day,Day parts
Where- Home , Away from home
Why- Motivations

Volume Model
Volume model takes into consideration only RTD packaged tea for markets
other than US and Canada. For these two, RTD unpackaged tea is also
considered.
The main aim is to check business performance and forecast the future
sales (next 10 years) on the basis of present data. For top 32 markets, this
data is taken from Redbook and for rest of the countries, it is calculated
using Industry CAGR(3%) for Industry and TCCC CAGR(6%) for TCCC.
Current data is taken from Compass.
[Note: Top 32 markets are the top performing markets for Sparkling bev.]

Important Line Items(Financial Model)

Net Revenue = No. of units sold * Selling price of each unit
1 Unit Case = 24 bottles * 8 oz = 192 oz
(1 bottle = 8 oz)
1 Gallon = 2 Pounds = 3.78 L
MUC/MMUC = Million Unit Cases

Direct Marketing Expenditure -> Marketing, Promotions, Advertising

Gross Profit (Million $) = Net Revenue COGS
(COGS-Cost Of Goods Sold)
Net Profit (Million $) = Gross Profit Overhead Expenses
Brand Contribution = Gross Profit Direct Marketing Expenditure