Celestial Seasonings tea boxes get face-lift

More competition driving change

Joyzelle Davis, Rocky Mountain News

Published August 28, 2007 at midnight

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Lemon Zinger is getting some new zest.

The Celestial Seasonings tea, a top seller, along with the nearly 100 other blends in the tea maker's lineup, is undergoing the most comprehensive packaging redesign in the company's 37-year history.

The face-lift comes as Boulder-based Celestial Seasonings, which brought flavorful teas to the masses in the 1970s, faces increasing competition in grocery aisles from rivals such as Starbucks' Tazo Tea, Lipton and R.C. Bigelow. Parent company Hain Celestial Group doesn't break out revenues for the unit, but company officials on a recent conference call acknowledged tepid sales during the past two quarters.

"We found the tea category has become very complicated and complex to shop. There are a lot of varieties and brands," said David Ziegert, Celestial Seasonings' acting general manager. "We asked ourselves, what can we best do to exceed our customers' expectations? We started focusing on the box as a way to improve the shopping experience."

Other changes are brewing in Celestial Seasonings lineup. The company is rolling out an organic pyramid tea bag line called Saphara by Celestial that will sell for as much as $7.99, nearly twice as much as its traditional teas.

The tea company also is moving into coffee. The organic, fair trade coffee, which will have the flavors and packaging of Celestial Seasonings' teas like Morning Thunder, will sell for as much as $9 a pound.

Steve Hoffman, who heads Compass Natural Marketing, an organic-products consulting company, said it makes sense for "one of the pre-eminent tea companies" to branch into coffee.

"They're a beverage company, and it could play nicely with their brand," he said.

The new brand focus is evident in the box redesign, which gives the word Celestial greater prominence than Seasonings.

The flavor of the tea and inspirational quotes remain the same, as does the whimsical artwork that's been a trademark of Celestial Seasonings for decades. Only now the scenes are larger, filling the entire box instead of a window.

"They haven't lost what their heritage is, they've just elevated it," said Cathey Finlon, owner of advertising agency McClain Finlon, after reviewing the new designs. "Celestial Seasonings is a special place. They respect tea. All of the care that they put into the flavors and aroma is now captured in the packaging."

Some changes are more dramatic than others. The company's best-selling Sleepytime keeps its red night-capped bear fast asleep before a cozy fire, only now the tableau expands to include a plant-filled window and old-fashioned radio. But the swinging, pink-dressed lady on the Chamomile tea has been banished in favor of bringing the provincial country house to the foreground.

Celestial Seasonings was founded in 1970 after 19-year-old Mo Siegel and his friend, Wyck Hay, began harvesting wild herbs growing around Boulder, according to company lore.

In the years since, Kraft purchased Celestial in the mid-'80s before selling it back to company management in 1988. In 2000, Hain Food Group, which also makes Terra Chips, Arrowhead Mills and other natural foods, purchased Celestial.

Hoffman, who also is on the board of economic development group Naturally Boulder, said Celestial Seasonings leadership as a natural-foods company helped turned Boulder into a hotbed for the organic-food movement.

"The way Intel created the Silicon Valley, Celestial Seasonings drew people to Boulder," he said.

A new look

• What's changed: Celestial Seasonings revamped its tea boxes, in part to emphasize "Celestial" instead of "Seasonings."

• Why: Competition from other teas is cutting into profits

• What's new: The company soon will introduce "Morning Thunder" coffee.

ELLEN JASKOL /ROCKY MOUNTAIN NEWS PHOTO

davisj@RockyMountainNews.com or 303-892-2514

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