(Yicai Global) June 20 — Multinational beverage firm Coca-Cola has launched its first herbal tea drink in the Chinese mainland.
Made of selfheal, the tea is produced in Hong Kong by HealthWorks and sold in 500-milliliter bottles on Tmall.Com at CNY12 (USD1.80) each, China News Weekly, a magazine under China News Agency, reported yesterday. Similar drinks of the same volume from leading Chinese herbal tea brand Wanglaoji only costs CNY4 (60 US cents).
Selfheal has analgesic, anti-inflammatory, antibacterial, and anticoagulation properties. It reduces blood viscosity and improves microcirculation.
Coca-Cola decided to enter the Chinese mainland’s herbal tea market under the guidance of its ‘omni-category drink’ strategy, China News Weekly reported, citing an executive at the company.
Herbal tea originates from China’s subtropical zone, where locals decoct Chinese herbs that can help clear heat and detoxify, remove dampness from the body, and eliminate stomach stagnation to contend with a hot and humid atmosphere. It was added to the first list of China’s national intangible cultural heritages in 2006, the same year Coca-Cola acquired HealthWorks.
Wanglaoji is the dominant herbal tea drink brand in China, said Zhu Danpeng, a food industry analyst. The market share of the second, third, and fourth-biggest herbal tea makers combined is less than 60 percent of that of Wanglaoji, Zhu added, noting that with the existing supply chain, brand image, and diversified business, Cola-Cola will likely become one of the top players in the domestic herbal tea market.
Editor: Futura Costaglione