Private Label Loose Teas vs Private Label Tea bags

By: David Giusti
Submitted: 2007-01-17 11:50:04
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In a rapidly growing tea industry, a variety of companies are looking to expand their product base by adding a line of private label teas. Though this choice may seem relatively simple as there are a growing list of companies that can supply a line of private label teas, as the number of companies grow, so to does the difficulty. More choices, options, colors and kinds can make any decision difficult.

Though originally the choice was private label loose teas, now many companies are looking to add a line of private label tea bags. It was only a year or two ago when private label tea bags was a choice easy to move past as the quality of these tea bags was far lower than the private label loose teas. But now with the rise of Gourmet tea bags, where a high quality loose tea is included in the tea bags, all of the sudden this is a very real, and potentially better option.

An industry such as tea is rapidly growing, which means the number of competitors is also, rapidly growing; a barrier to entry. One of the reasons that the market is growing so fast however, is the nearly endless number of possibilities; differentiation. For those looking to enter into the tea industry, and have done their research have found that there are a vast number of “standard” teas on the market. Either high quality loose teas that are green tea, black tea or oolong tea, or regular tea bags with low quality green tea and black teas in them. This is where a vast majority of competition is.

But now, we can look at the options. If a company is interested adding Private Label Loose Teas to their product base, the best option would be to have loose Organic Herbal Teas, and Organic Herbal Tea Blends. This is where a high percentage of growth in the tea industry can be found. The reason is due to a significantly lower number of competitors and a potentially endless number of herbal blend options. Also high health benefits of the herbal teas and smooth taste makes them a favorite among tea drinkers as well as chunk of the population, non-tea drinkers. And as non tea drinkers are looking to improve their health, but have been turned away by the bitter taste of green teas, your Private Label Herbal Teas will be their to save them.

But for any tea drinker, and especially non tea drinker, who lives in the modern day reality of a hustling and bustling business world, loose tea may not be the best option. Loose tea takes more time to make, special tea utensils, all of which may not work well in this every day reality. This is large reason why commercial tea bags have become so popular despite their general low quality. So if we could mix the two, High quality Loose Tea (either herbal or standard) and the easy use of a tea bag, then this would allow the company to differentiate their product whether using “Standard” teas or unique herbal blends, instead of with loose teas where only the unique herbal blends will allow your Private Label Tea to truly stand out.

This is a very important part of the decision tree when looking to either add a new product to your already established company, or looking to start a company from scratch. Which part of the industry do you see the most growth and most potential? Which part of the industry do you see fits with not only today’s market, but also tomorrow’s ? And overall, which is best for you ?

David Giusti is the owner of Sabaidi Tea Co., Ltd. a manufacture of gourmet tea bags under both their own brand name as well as under a privatel label basis. For more information about their Private Label tea bags, click on the following link, http://www.sabaidi.net/partnership.htm, or to go to their home page, click here, http://www.sabaidi.net

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