I recently was able to spend some time with Karl Marx from Costa Rica.
Karl Marx from San Jose Costa Rica , no relation to the famous Marxist, is the Senior Consultant for commercial and marketing for Desinead products, located in Costa Rica. You may have never heard of Karl Marx, but I am sure you have heard of Kool-aid, Tang, and other famous drinks. Karl is the man who created the flavors for these drinks in Costa Rica. Karl finished college in the USA in 1993 and went to work for Colgate Palmolive as a product manager in 1994.
After starting at Colgate Palmolive, It took Karl all of two years to determine he was not suited to be in corporate America, and returned to Costa Rica to start a new career.
Karl came from humble beginnings, as the son of a furniture maker in Guyana, in South America. As Karl recounts, “ my humble beginnings were what shaped me. My father and mother came from Guyana, which offered little or no economic opportunity in its communist rule. “
Karl’s father was able to complete his studies until sixth grade. Karls’s grandfather escaped from Germany to avoid the persecution of his Jewish heritage. And Karl, born in Guyana, thanks his family for instilling values he still holds true to his heart today.
That’s how Karl started a company with his three brothers in 1994, with desire and no capital, just a desire to succeed, and a solid work ethic, and ultimately to help formulate some of the biggest beverage flavors in Latin America. Karl remembers “Everybody did everything, Cleaning, planning, delivering product, selling, mixing, everything was done by the four brothers. All of the boys started off very humble. Karl recalls “ you know, that’s how we started. We did everything. There were no employees at that time. So it was only the four of us”.
As Karl recounts, “we used to live above his Dad’s furniture shop, so I was no stranger to cleaning floors, making deliveries, or whatever it took to put food on our family’s table.
So began the family business: Disinead, a family operation with little or no sales for the first three years until Karl’s constant attention caught the eye of a local McDonald’s franchise owner. After 3 years of knocking on his door, once a week, the door opened. Karl guaranteed the franchise owner he could make a “better, more consistent tea mix”. So began the rise of Desinead in Costa Rica. A far cry from a corporate job at Colgate Palmolive, but a real beginning for him and his family.
With a chance being given to him and his brothers by the McDonald’s franchise owner, Desinead grew from $6000 a year in sales to over 10 million. The brothers sold out a few years back, but Karl has remained. An expert formulator and Sales representative, Karl splits his time on the Lab and on the road.
Innovation has been the key to Desineads continued success. In a land owned by Corporate Titans, Desinead successfully competes with the likes of Lipton, and Coca-cola by being innovative. Constantly searching for new formulas, flavors, and responding to customer taste.
Desinead was very early in figuring out how to offer organic sugar substitutes for example. Karl worked for years in the lab to create a Stevia, monkfruit combination that would not have an aftertaste and be a viable, healthy, sugar alternative. Desinead was one of the first to create this combination effectively, and is known for one of the best tasting stevia based ingredient bases.
Desinead not only to create drink mixes, but other powders, Cake mix, Pancake mixes. Sourcing from socially responsible countries is of prime importance to Desinead, and Karl personally.
Desinead will source from the country of origin to obtain the best materials available. Desinead will look at other countries where the key producing ingredients are found, for example India, Kenya, Chile, Asia, China, as well as Latin America.
Sugar is a hot topic. “sugar, I think given the name that it’s bad for you, but in reality, it depends on who you are, what your diet is. For example small children, they require a certain amount of energy and energy from sugar, not from anything else in their diet”. But for those who are sensitive to sugar, we are also looking for natural substitutes like stevia, which you can substitute, sugar, for people who are diabetic, who cannot process sugar in foreign products. We don’t use as much sugar as we did in the past, to give the consumer the opportunity to be able to drink our product on a more regular basis”.
Today’s consumers are looking for better or healthier products for themselves. Desinead says it quite simply, “If you look at that as a requirement, the solution is always to use the best ingredients for the consumer, that we can provide So, we do”
Karl spends much of his time working on natural colors also. Not only do we seek natural flavors, We are seeking natural colors. As Karl says, it’s hard. “Natural red color is easy, but Finding a way to make a natural blue is my next big objective. Not easy”
Desinead has successfully grown into an international company, serving most countries I South America and Latin America. Today’s challenge is to grow, in order face new, and different times as Karl describes “a different world”. They now have their sites in the USA.
After spending a significant amount of time, Desinead has decided to appoint Globetradenet.(GTN) as a USA partner. Globetradenet distributes products in Europe, Middle East, USA, and Canada. Globetradenet fit perfectly into the Desinead strategy, specializing in healthy products, of which most are organic, Non GMO certified. Gerald Dewes the president of GTN expressed his thought, “the opportunity to work with Desinead, a company, whose core values are based on hard work and serving the customer the best way possible is best described as an honor”
Globetradenet feels, having a partner like Desinead will allow them to compete with the likes of Kraft and Lipton, by offering superior products and maximum flexibility with innovation, good price points, and of course superior taste. Desinead is expanding into the market by also offering private labels for the first time.
Desinead follows strict international standards of quality like FSC, to ensure they only buy materials from socially responsible companies who have fair labor standards as well as environmentally friendly policies.
So from a small 4 brother shop to the international manufacturer it is today, Desinead has shown that smaller can be better, and that survival is based on more than having a big wallet.
Iced tea market is segmented on the basis of raw material type, flavour type, packaging type, product type and region. On the basis of raw material type, iced tea market is segmented as black iced tea and green iced tea. Out of these segments, black iced tea market share is more than green iced tea, as black iced tea have strong flavour and taste. But green iced tea market will grow at in forecast period due to increased health concerns and benefits shown by green tea. On the basis of product type, iced tea market is segmented as liquid RTD, Concentrate syrup and premix. Among these segments liquid iced tea is most consumed, and represent the steady growth in near future. Powder premixes are available in different sizes, flavours, and convenient to carry and mix, hence premix type is expected to grow in forecast period. Concentrated syrup includes sugar, flavour and tea extract, it is easy to dissolve and easy to use hence its market is expected to grow at a healthy CAGR.
Iced tea market is segmented as flavour options, like lemon, peach, passion, mixed berry and other (ginger and herbal). Lemon and peach iced tea are most consumed across the globe. Lemon iced tea is generally made with sugar and lemon juice. Mint and lemon wedge is used as a decorator. Ice tea market is further segmented on the basis of packaging type, like as can packaging, carton pack and PET packaging. In terms of revenue contribution, PET packaging covers maximum market share and is expected to be dominant during the forecast period.
Iced Tea Market: Region-wise Outlook
Iced tea market is segmented on the basis of region includes North America, Latin America, Eastern Europe, Western Europe, Asia Pacific excluding Japan, Japan and Middle East and Africa. North America and Europe are established markets for iced tea. With increasing demands for processed food and ready-to-drink beverages is driving the market and iced tea market is expected to register a healthy CAGR during the forecast period.
Iced Tea Market: Drivers
Increased population, disposable income, preference for convenience food and ready-to-drink and ready-to-serve are major drivers for iced tea market growth in forecast period. Green tae has proven health benefits such as, it acts as antioxidant, helps in weight reduction and also prevents cancer. Young population is crazy about new products hence companies are launching new variants to attract consumers across the region. For instance, in early 2015, Lipton launched sparkling iced tea in three flavors like lemonade, raspberry and peach. Many quick serving restaurants, bars and hotels are serving iced tea in their menu.
Iced Tea Market: Key Players
The key international players operating in the iced tea market includes AriZona, BOS Brands (Pty), 4C Foods Corp., Nestea, Harris Freeman, Unilever, Mother Parkers Tea & Coffee Inc., Sweetbird, Templar Food Products and others.
The report is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, inputs from industry experts and industry participants across the value chain. The report provides in-depth analysis of parent market trends, macro-economic indicators and governing factors along with market attractiveness as per segments. The report also maps the qualitative impact of various market factors on market segments and geographies.
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