Matcha has the potential to rival coffee in the UK drinks market, according to start-up PerfectTed.
A type of powdered green tea, matcha is popular in Japan. PerfectTed said rising interest in functional beverages, particularly energy drinks, is boosting the category’s profile outside of Asia.
The UK-based company produces ready-to-drink matcha products and wholesale powder and is about to launch single-serve pouches.
Speaking to Just Drinks at the London Coffee Festival yesterday (20 April), operations manager James Gough said: “Matcha is becoming increasingly popular. Not too long ago people [in the UK] didn’t know what matcha was, but now it is the alternative to coffee.”
Gough argued matcha is a preferable choice for consumers looking for a functional beverage as the caffeine is balanced by L-theanine, which is thought to reduce stress.
He said the energy boost from matcha can last five to six hours, a “much more sustained high” compared to sugar-based energy drinks which may cause a spike and crash. Each 250ml can of PerfectTed contains 80mg of caffeine.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataAlready “massive” in Asia, Gough said education was a barrier to entry in the UK market but that rising interest in functional drinks had provided a positive headwind.
“The functional category has taken off massively, it’s becoming more and more popular. We provide something that isn’t just a direct alternative to Red Bull.
“Functional drinks are key for people choosing a [lunch-time] meal deal, that’s really where things seem to be heading.
“It might take a while for it to grow in the UK to the same extent as in Asia, but in the long run it might become just as popular as coffee.”
Founded in 2021, PerfectTed is split fifty-fifty between its wholesale powder business and RTD matcha beverage lines.
Last year, the company received £50,000 ($61,900) from UK investor TV show Dragons’ Den, which aired on 2 March. The offer came from co-hosts Steven Bartlett and Peter Jones, in return for 5% equity each.
Co-founder Marisa Poster told Just Drinks last month it was going to use the funding to build brand awareness.
Co-founder Levi Levenfiche added yesterday: “[Dragon’s Den investor] Steven Bartlett has been an amazing ambassador for the brand.”
PerfectTed is listed in Tesco, the UK’s largest grocer, Holland & Barrett and Selfridges and has just launched a partnership with juice-bar chain Joe & The Juice.
It also sells a small amount D2C – though this has spiked since the airing of Dragon’s Den in March, when its website saw 3-5,000 sales between the start of the team’s pitch and midnight. Online D2C sales have remained around 30 times what they were before.
PerfectTed produces around 3m RTD cans per year and Poster said it is set to make £5m in revenue in 2023.
