Coca-Cola Company, which has trimmed over 200 brands of late, recently launched its first bottled Chinese herbal tea, Self-Heal Spike, extending a healthy beverage line acquired in 2006.
The tea contains Prunella vulgaris, a medicinal herb related to mint and known as ha fu chou or xia ku cao (夏枯草). Also known as self-heal, heal-all and woundwort, the herb is marketed as an analgesic, anti-inflammatory and antibacterial, with anti-coagulation properties. Self-heal is used in beverages to reduce blood viscosity and improve microcirculation.
In addition to self-heal, the new Coca-Cola blend includes momordica fruit, licorice, and pagoda tree flower buds. Other products in the HealthWorks line include Sugarcane Rhizoma Imperatae & Sea Coconut, Hawthorn Apple, Rock Sugar with Pear, and Lemon Yiyiren.
China’s beverage market is lucrative, at RMB578.5 billion ($85.6 billion in 2019), but crowded, according to Daxue Consulting. “In recent years, with the expansion of vending machine outlets and the rapid development of Internet sales platforms, China’s beverage industry has diversified its distribution channels,” reports Daxue. Ninety percent of sales are via conventional stores.
Self-Heal Spike is marketed online and sells for $1.80 per bottle on TMall. The 500 ml drink is bottled by HealthWorks, a Hong Kong-based beverage company Coca-Cola acquired in 2006.
Herbal teas are a growing niche in China. Traditional RTD tea (mainly green) is the largest segment, with almost 50% market share. But reduced-calorie, tea-based drinks are on the rise as Chinese consumers seek products perceived as healthier. Even a small niche can represent 10 million consumers in a market of 1.4 billion people.
Consumers view RTD herbal infusions as convenient extensions of the traditional Chinese medicine (TCM) regimen. According to marketers, teas are consumed to aid the stomach, clear heat, remove dampness, and detoxify the body.
China's bottled herbal drinks category is dominated by Wanglaoji, a brand that outsells the top four competitors combined. However, Coca-Cola, as an “omni-category” giant, is expected to gain market share quickly.
Bottled Wong Lo Kat (also pronounced Wanglaoji) is the original and most famous of China’s bottled herbals. The infusion was formulated in 1828 by a Guangdong physician. His descendants retain rights to sales outside China. JDB Group, a subsidiary of Guangzhou Pharmaceutical, owns the trademark within China.
WebMD states that self-heal (Prunella vulgaris) is used for inflammatory bowel diseases such as Crohn’s disease and ulcerative colitis, rheumatoid arthritis, problems in the stomach and intestines, sore throat, and other conditions, but no reliable scientific evidence has confirmed efficacy against these conditions.
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