Cape Natural Tea Products and the U.S. Market: Rooibos Rebels Ready to Raid
Cape Natural Tea Products was a young herbal products company based in South Africa. Rooibos tea was the strongest component of their product portfolio. In South Africa, rooibos was a commodity product and a direct competitor of coffee and tea. Antioxidants and other nutrients made rooibos a functional food. The American market developed interest in functional foods; however, the diverse opinions and knowledge of American consumers of functional foods made marketing difficult. Could the company benefit from the American market? With strong competition at home and marketing challenges abroad, what would be the best path of success for the company?
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Document Type: Research Article
Affiliations: Norbert L.W. Wilson is assistant professor in the Department of Agricultural Economics and Rural Sociology, Auburn University.
Publication date: March 1, 2005