Celestial Seasonings Tea Responds to Demographic Shifts with Innovative Campaign

Celestial Seasonings, the specialty tea brand and subsidiary of Hain Celestial Group, today announced several new innovations including expanded product lines, updated packaging and a fresh advertising campaign. These new initiatives are expanding the category by driving coffee drinkers to choose Celestial Seasonings tea, and driving market share growth on the brand. 

Celestial Seasonings Tea announces new products, packaging and advertising campaign. TeaWell includes proprietary blends that promote energy, better sleep and gut health.

"Covid-19 has created long-term behavioural changes that will outlast the pandemic, and tea consumption is a big one," said Mark L. Schiller, president and chief executive officer of Hain Celestial Group. "Today, we're building on Celestial Seasonings' rich heritage by introducing new innovations to address market shifts and reach new consumers. We're proud to introduce our time-tested teas to those looking to lead healthier lives, establish rituals, and find more sources of comfort at home."

Consumers are responding positively to new innovations such as an Energy Tea, which contains as much caffeine as a cup of coffee (95 mg). The company's innovations have been highly incremental to the brand and category with 74% of green and black tea sales from consumers new to those segments and 18% of sales from trade-ups from lower-priced products. New product launches have boasted repeat rates that are 200% higher than similar, competitive launches.

In October 2019, Celestial Seasonings launched TeaWell, a line of organic wellness teas that couples daily health benefits with delicious flavour. The company recently introduced four industry leading TeaWell blends, including Mood Tonic, Sleep (the first tea with melatonin sold in the U.S.), Laxative and Gut Health (featuring a blend of prebiotics, probiotics and fibre). These new teas with benefits complement the Daily Wellness Core TeaWell blends, which offer a multi-benefit blend of traditionally used herbs and botanicals to help support immune health, digestion, and mental vitality.

"Beyond the mental health benefits of sipping a warm cup of tea, many consumers choose tea for its health benefits," said Tim Collins, vice president and general manager at Celestial Seasonings. "We want to make sure we are delivering on this promise with products that go above and beyond in providing the benefits you'd find in your typical cup of tea."

Designed by Deutsch New York, 'Taste the World of Celestial Seasonings' is a new ad campaign that illustrates the feel-good benefits of drinking tea in the morning, during the day and before bed. Three video vignettes focus on Celestial Seasonings Green Tea for energy, Vitamin C tea for immune support, and Sleepytime tea to wind down. Through whimsical imagery and narration, the campaign is designed to introduce hot tea as a healthy and flavourful choice.

"This campaign captures the essence of how Celestial Seasonings brings balance and benefits every day," said Melinda Goldstein, chief marketing officer at Hain Celestial. "Consumers looking to make meaningful and lasting lifestyle changes will find the best of both worlds in Celestial Seasonings tea: strong immune support combined with unparalleled flavour."

In response to demographic shifts and changes in consumer behaviour, Hain Celestial has also introduced optimally sized and priced packaging. This new, sample-sized packaging comes with five tea bags instead of the typical 20-pack unit, making it better suited for the two-thirds of U.S. households that are three people or less and providing a lower cost-barrier for consumers to try new flavours. 

"With the introduction of 14 new tea blends and more on the way, we wanted to make it easy for consumers to try our products with low commitment," added Tim. "During this time, we've seen substantial increases in both trial and repeat rates, meaning that once consumers try Celestial Seasonings tea for the first time, many come back for more."