Walmart Features Ito En Tea

JAPAN

Ito En announced in early August 2019 that it has contracted with Walmart to stock two of its top-selling teas nationwide in the US. That initially seems surprising but given the two giants’ success in customer profiling, it may well signal new opportunities for premium teas in the mass market.

The surprise is that the alliance does not match either company’s existing base. They see a shift in that base very much in a direction so far associated mainly with specialty teas, millennials, and upmarket consumers. It’s summarized in the explanation that appears in all the PR and commentaries: “With a growing number of consumers looking for authentic and healthy beverages…”

It’s still a surprise in that the teas to be introduced are decidedly not in the mainstream of US consumer experience and tastes. Most casual bagged tea, and iced tea drinkers are unfamiliar with the distinctive Japanese green tea style. Ratings and reviews routinely use the word “seaweedy” to describe them, hardly a promotional draw.

A constant theme in the reports is the fragmentation of distribution in the US: This was a discovery…” “I found it in a Chinese market…” A nationwide presence in Walmart obviously solved many logistical problems.

For Walmart, the agreement seems to part of its moves to attract a more affluent consumer base and “reframe” the company in customers’ minds. It needs to add “interesting” not just everyday products. Ito En fits well into this approach.

It is the largest brand of green tea in Japan. It has been a consistent innovator in producing natural and healthy teas, with many awards for products and projects centered on sustainability and social development.

The two teas selected for the national Walmart launch in October 2019 are:

Oi Oicha ready to drink tea, its best-selling brand: this is unsweetened and packed with natural “better for you” ingredients.

Jasmine Green: also unsweetened, smooth and with a noted refreshing fragrance.