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Tea has always been a predictable business; hot drinks in cold weather creating a steady demand with consumers sticking to familiar formats. However, Lipton Tea shows that this is beginning to shift.<\/p>\n A new cold-brew tea bag from Lipton Teas & Infusions suggests how far that change could go. Designed to be dropped into a refillable water bottle, it turns plain tap water into flavoured iced tea, aimed at consumers who already carry reusable bottles and rarely think twice about filling up from the tap.<\/p>\n The product also comes amid the rise of Gen Z becoming a core drinking cohort, growing scrutiny over single-use plastic and a drive from retailers and suppliers to reduce cost and made the supply chain more efficient.<\/p>\n And for Lipton, it is also a bet that tea can move beyond its traditional hot-drink identity without losing what made it a staple in the first place.<\/p>\n Retail Gazette sat down with at Lipton Teas & Infusions UK&I CMO Elle Barker, who explains how the brand is thinking about demand, regulation and the future shape of the category.<\/p>\n \u00a0<\/p>\n 1. Your new cold-brew tea bag range targets what you call the \u201ctap water occasion\u201d. How significant is this shift away from ready-to-drink beverages for your overall supply chain and distribution strategy?<\/strong><\/p>\n We see this less as a shift away from ready-to-drink and more as the opening up of a new and fast-growing occasion.<\/p>\n Hydration is one of the biggest drivers in the beverage space today, with consumers increasingly looking for products that fit seamlessly into their everyday routines while still delivering on taste and wellness. Within that, what we\u2019re calling the \u201ctap water occasion\u201d is particularly interesting \u2014 it\u2019s about enhancing something people are already doing multiple times a day, rather than asking them to adopt a completely new behaviour<\/p>\n Younger consumers are a big part of this. They are typically heavier water drinkers and are also more engaged with trends around customisation, function and flavour. At the same time, they\u2019re leading the shift towards sustainability, with growing adoption of refillable bottles and a desire to reduce reliance on single-use plastic. That combination creates a clear opportunity to rethink how we deliver refreshment<\/p>\n Cold-brew tea bags are a very natural fit for that space. They allow consumers to transform tap water into something more interesting and enjoyable, without needing refrigeration, additional packaging or a ready-made beverage. In contrast to traditional ready-to-drink formats, this approach can significantly reduce packaging intensity and associated environmental impact, which is an increasingly important consideration across the beverage industry.<\/p>\n Ultimately, the goal is to make hydration more enjoyable while aligning with how people want to live today. If we can help consumers drink more water, enjoy it more, and do so with less reliance on plastic packaging, that\u2019s a win both for the category and for the environment.<\/p>\n 2. Gen Z is driving demand for cold tea and healthier options. How is this influencing your long-term product development?<\/strong><\/p>\n Gen Z is definitely accelerating change in the category, but we see it as an opportunity rather than a challenge for tea.<\/p>\n Tea is uniquely well positioned to meet a lot of the needs we\u2019re seeing from younger consumers. At its core, it\u2019s naturally low-calorie, often zero-calorie, and free from artificial ingredients, which aligns very well with the shift towards cleaner, more functional drinks and everyday wellness.<\/p>\n What\u2019s also interesting is that Gen Z are much more open to exploring new flavours, formats and rituals. They\u2019re not necessarily tied to traditional hot tea occasions in the same way previous generations were, which gives us a real opportunity to reframe tea in a way that fits more seamlessly into modern lifestyles \u2014 whether that\u2019s cold formats, hydration-led occasions or more customisable drinks.<\/p>\n That\u2019s directly shaping our long-term product development. We have a strong pipeline of innovation focused on recruiting the next generation of tea drinkers by leaning into both format<\/p>\n and function. A good example of that is our work in areas like matcha, where products such as the Lipton Matcha Latte bring together taste, energy and a more contemporary usage occasion.<\/p>\n Overall, the focus is on evolving tea without losing what makes it special \u2014 delivering great taste and natural credentials, but in formats and experiences that feel relevant for how younger consumers live today.<\/p>\n 3. Tea consumption has traditionally been seasonal. Do you expect cold-brew formats to stabilise demand throughout the year, and what would that mean for forecasting and inventory management?<\/strong><\/p>\n F&H Tea consumption drops -17% in Summer vs Winter (Source: Nielsen F&H Cups sold, Total Market \u2013 Quarterly to w\/e 4\/10\/25) Tea has traditionally been a more seasonal category, with a clear drop in consumption as the weather warms \u2014 for example, fruit and herbal tea consumption declines by around 17% in summer versus winter. That\u2019s been a structural challenge for the category for years.<\/p>\n What cold-brew formats do is open up a much more natural role for tea in warmer months. Rather than asking consumers to change behaviours, we\u2019re simply better meeting a need that already exists \u2014 hydration and refreshment when temperatures rise \u2014 but doing it in a way that feels lighter, more convenient and more relevant to summer occasions.<\/p>\n Products like Lipton Ice Tea tea bags are a great example of that. They allow consumers to enjoy tea as a cold, refreshing drink, directly from water, without needing to switch into a completely different beverage category. That helps keep tea relevant year-round rather than being overly concentrated in colder months.<\/p>\n From a commercial perspective, if we can smooth some of that seasonality, it has real benefits. It allows for more consistent demand across the year, which in turn supports better forecasting and more stable production planning. Instead of peaking heavily in winter and softening in summer, you start to build a more balanced demand profile.<\/p>\n It also makes inventory management more efficient. With less extreme swings, there\u2019s reduced risk of both overstocking and stock-outs, and it enables a more even flow through the supply chain.<\/p>\n Ultimately, the opportunity is to evolve tea from being perceived as a more \u201cwinter-led\u201d category into one that has relevance across a broader range of occasions. Cold-brew formats are an important step in that direction, helping the category stay visible and competitive when consumers are naturally shifting towards colder, more refreshing drinks.<\/p>\n \u00a0<\/p>\n![\"Tea](\"https:\/\/www.retailgazette.co.uk\/wp-content\/uploads\/2026\/05\/1778765403998-200x300.jpg\")