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Iced tea co-packing deal

This article was originally published in Foodnews

DILMAH, one of Asia's largest tea brands, is in talks with Erlan, a Ukrainian soft drinks maker, about producing its cold tea brand in Ukraine. Erlan's general director Yuriy Trofimenko has already confirmed the negotiations with Dilmah, expressing great interest in the project, and saying that Erlan has the production capacity for the task, at 1.2 billion litres annually. Erlan already has had its own cold tea brands such as Top Tea and HM Ice Tea and also packs Nestea under the Coca-Cola Beverages Ukraine brand. The company is planning to export. The iced tea sector accounts for about 5% of Ukraine's soft drinks market. With annual growth about 50%, volumes in 2007 amounted to 6.0 million litres, and 10.0 million litres in 2008.

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