DAVIDsTEA Accelerates Wholesale Expansion, Introduces Compostable Tea Sachets

DAVIDsTEA, a leading tea merchant in North America, kicked off an accelerated wholesale strategy, highlighted by an increased footprint within its store-in-store concept and the introduction of a fully compostable, individually wrapped tea sachet format.

Since entering the wholesale market four years ago, DAVIDsTEA has gradually grown its presence at grocery stores, pharmacies and big-box locations at more than 3,800 doors in Canada, including over 250 store-in-store configurations.

Last year, the Montréal, Canada-based company launched its innovative store-in-store retail concept at Rexall and has since added London Drugs and Neighbourly to its growing number of doors, while showcasing an expanded assortment of teas. As a result, DAVIDsTEA now offers a curated selection of more than 40 tea flavors, including organic, premium garden-to-cup and flavorful wellness-driven teas, plus accessories, through these doors.

To supplement this growth, DAVIDsTEA unveiled a new tea sachet format in September 2022 throughout its wholesale channel. The individually wrapped and fully biodegradable sachets, featuring new compostable overwraps, provide added convenience for consumers, while the thoughtfully redesigned packaging with increased product information enhances visibility on store shelves.

“It’s our mission to make tea accessible for everyone and one of the ways we accomplish this is by ensuring our products are readily available in local communities where tea lovers do the majority of their everyday shopping,” noted Sarah Segal, CEO and chief brand officer at DAVIDsTEA. “Our individually wrapped tea sachets with all-new compostable overwraps not only demonstrate we continue to make the necessary investments in product development to grow the market for specialty teas and elevate our brand, but that we are dedicated to leading the tea industry by example when it comes to sustainability.”

Frank Zitella, president and chief financial and operating officer at DAVIDsTEA, said, “Our wholesale expansion strategy is unfolding nicely with increases in the number of doors, wellness-driven assortments and display concepts throughout Canada. We believe the innovation DAVIDsTEA brings to this channel is refreshing to retailers, expected from our loyal customer base, and welcomed by new prospective customers. Our Organic Cold 911 offering, for example, will be featured throughout the Canadian Costco network again this fall. Bolstered by 250 store-in-store retail concepts across Canada, trailing 12-month revenues for our wholesale channel increased 130 percent over the prior 12-month period.”

To learn more about DAVIDsTEA, visit DavidsTea.com.

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