Saint James Tea is expanding its portfolio with the introduction of yerba mate, its first product extension beyond iced tea. The five-year-old brand was looking for a new product with more caffeine that could stand alongside its flavored, better-for-you iced tea lineup.
Cofounder and co-CEO Brenden Cohen said yerba mate, a South American drink growing in popularity, allows the company to compete in the growing natural caffeine market as younger consumers look for better-for-you options.
Entering the Yerba Mate Market
Cohen noted that when the company found yerba mate, it knew it was a natural fit. He described it as a “higher caffeinated … tea product.”
Saint James’ yerba mate offering has about twice the caffeine of the typical yerba mate product, with 150 milligrams of caffeine, equivalent to about a cup and a half of coffee.
Yerba mate is becoming more popular worldwide, though it is still underrepresented in the U.S., Cohen said. The drink is made with dried leaves and twigs from ilex paraguariensis, a species of holly native to central and southern regions of South America.
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Company Background
Saint James was founded in 2021 by Arizona Tea founder John Ferolito as well as co-CEOs Cohen and Brad Neumann. The brand focuses on appealing to Generation Z with functional ingredients and a focus on sustainability.
The idea to expand beyond tea came from Ferolito. They required a “tea-adjacent” product that fit into the Saint James brand ethos, meaning it had to be 25 calories or less with 5 grams of sugar or less and be taste forward.
It was additionally important for them to make a product that tasted more like tea than a traditional yerba mate, which has a naturally bitter taste.
Market Competition
Saint James’ new product launch will compete with other ready-to-drink yerba mates on the market, including Guayaki’s Yerba Madre and offerings from Marquis and Mateina.
Cohen said, “There’s a lot of demand for it, and there’s a bunch of brands that do a great job. But there’s definitely a lot of room for improvement. Ours is very Saint James, it’s like a delicious tea.”
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The global yerba mate market was valued at about $2.17 billion last year and is projected to reach $3.58 billion by 2034, according to Straits Research.
Consumers are increasingly seeking “clean caffeine,” which offers an energy boost without a crash and functional benefits.
The drinks will initially be available in Mango Passionfruit, Raspberry Lemon, and Strawberry Tangerine varieties on Amazon and its e-commerce platform. The lineup will enter Kroger and Albertsons later this year. A 12-pack retails for $39.99.
Saint James plans to add more flavors near the end of the year, Cohen said. In addition to the new product category, they are eying expanded distribution for its entire portfolio.
The company saw 164% year-over-year revenue growth in August. Its products are available in more than 25,000 stores across the U.S. and Canada.
