Del Monte Foods boosts production, distribution of fast-growing bubble tea brand

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Dive Brief:

• Del Monte Foods, which introduced a line of boba shop-inspired beverages called Joyba three years ago, is expanding production and distribution to meet growing demand for the product, the company said in a statement.

• Bibie Wu, Del Monte Foods’ chief communications and technical development officer, told Food Dive in an email that since 2021, Joyba “has been in a pilot launch phase with limited distribution.” She added that “as a result of the strong demand to date, we are more than doubling our production capacity to support Joyba’s national launch” on April 30.

• The success of the Joyba brand comes amid the growing popularity of the global bubble tea market, with sales projected to increase from $2.7 billion this year to $6.2 billion by 2032, according to Del Monte Foods. This growth is led by Gen Z, which has a particularly strong interest in beverages that offer both convenience and an immersive experience. 

Dive Insight:

While Del Monte Foods is best known for its canned fruits and vegetables lining grocery store shelves, the 138-year-old company has looked for ways to innovate and differentiate its brands. Joyba has been a big part of that, with its expansion bringing it closer to matching the footprint of its iconic cans.

During the pilot, Joyba was available in 14,000 stores, including Target, Walmart and Albertsons. But not all the locations at these and other retailers carried the product due to its limited supply. Joyba will now be available at almost all major retailers across the U.S. Production will be increased with new beverage manufacturing capabilities at an existing Del Monte Foods facility in Mexico.

It’s not hard to see why Del Monte is ramping up production and bringing Joyba to more retail outlets. Wu said the product has a repeat rate of 40%. At one major mass merchandiser, Joyba is consistently near the top of the ready-to-drink tea category. It’s also proven to be a way to grow the segment. She noted that at two major retailers, Joyba is driving 40% to 60% incremental sales for the ready-to-drink tea category.