For emerging tea brands, entering retail is both an opportunity and a challenge. While many new brands start out on Amazon and direct-to-consumer (DTC) websites, retail is now the ultimate path for sustainable, long-term growth.
Recent insights from industry leaders indicate that the momentum is shifting. According to Peter Gialantzis, chief merchandising officer at Pod Foods, “the majority of the 104 brands [Pod Foods] onboarded last month were DTC brands just entering retail for the first time.” This shift shows that DTC brands are recognizing the retail channel’s potential to expand reach and drive growth.
Why Retail Matters More Than Ever
Direct-to-consumer once allowed brands to bypass retail gatekeepers, but that advantage has diminished with rising customer acquisition costs (CAC). For brands without a high average order value, this cost challenges profitability. Retail provides immediate consumer visibility in physical stores where they’re already shopping. Martin Forde of Retail Strategist points out that W by Jake Paul, for instance, launched in 4,000 Walmart stores, bypassing DTC entirely to go directly to mass retail.
A Ripe Opportunity for Tea
The tea segment in retail is ripe for innovation and growth, having largely stayed unchanged for the past few decades. In contrast, the coffee market has evolved dramatically, embracing third-wave coffee trends and higher pricing, capturing consumer interest and premium market share. Now, it’s time for tea to follow suit.
Emerging brands can seize the opportunity to innovate with unique blends, health-focused offerings, and single-origin sourcing that appeal to modern consumers. By creating distinct, high-quality products, new tea brands can carve out a niche that stands out in a crowded market.
Making Your Tea Brand Stand Out in Retail
Entering retail requires understanding both the market landscape and your brand’s position. Here’s how emerging tea brands can prepare to win on the shelf:
1. Define Your Unique Value Proposition
With a crowded shelf, it’s essential to have a unique selling proposition (USP). Whether it’s certifications like USDA Organic or a distinctive sourcing story, your brand identity should be clear and accessible. As consumers become more conscious, transparent practices such as regenerative organic farming resonate well, appealing to both retailers and shoppers.
2. Invest in Eye-Catching Packaging
Packaging is often the first impression a consumer has with your brand. Strong visual identity matters in driving interest and sales. Design packaging that captures your brand’s personality and values, standing out visually while effectively communicating quality. Sustainable packaging, as well as addressing the issue of microplastics in tea bags, will continue to garner interest with environmentally conscious consumers.
3. Leverage Data-Driven Decisions
Working with data-driven distributors gives new brands valuable insights into customer behavior, effective price points, and regional demand. This data can shape a brand’s retail strategy, helping it to focus on the most promising channels and locations for their target audience.
4. Plan a Targeted Retail Launch
Starting with a specific region or store type—such as specialty or natural food stores—can build credibility before pitching to larger retailers. These locations often attract consumers interested in health and sustainability, making them ideal for premium tea brands.
5. Strengthen Relationships with Retail Buyers
Retail buyers look for products that will succeed on their shelves. A well-crafted pitch should highlight your product’s unique attributes and its potential for foot traffic and sales. Bring in any online metrics, customer testimonials, and media coverage to add strength to your case. As challenging as it is to even get on the shelf with all the competition, it is even harder to get off the shelf, so you need to have a strong in-store demo program and promotions to encourage trial and drive foot traffic to your retail partners.
The Path Forward: Building Your Brand in Retail
As DTC growth plateaus, retail offers an invaluable path to success for emerging tea brands. A strong retail presence can drive profitability and give new brands the visibility they need to scale beyond what DTC alone can achieve. By adopting an omnichannel approach, brands can experience a multiplier effect, amplifying their reach and impact in the market.
With a thoughtful approach, retail can be more than a distribution channel—it has the potential to become the cornerstone of a successful, lasting brand in today’s competitive tea market.
Michael D. Ham is the Co-Founder & President of Wild Orchard, whose teas are available in major retailers such as Whole Foods, Wegmans, and Mom’s Organic. Wild Orchard has also partnered with Michelin-rated restaurants and cafes across the globe. Michael is passionate about health, wellness, and regenerative practices, and he hopes to see more emerging brands excel in the retail space.
Plan to Attend or Participate in World Tea Expo, March 24-26, 2025
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