Milo’s Tea Announces Major Expansion in Oklahoma

Milo’s Tea

Published reports on state it is the largest seller of refrigerated tea in the United States, serving  more than . These figures point to a rapid expansion from . Sales topped $125 million in grocery and multi-outlet locations in 2018, according to Chicago-based market research firm IRI.

The company’s recent announcement that in 2020 it will open a , Oklahoma indicates both a substantial increase in capacity over its headquarters facility in Bessemer, Alabama but also, in the view of a number of commentators, is part of Milo’s focus on innovation in distribution to leverage its product growth and market expansion.

That growth has been built and maintained on its family tradition, beginning in 1946, for making an outstanding sweet iced tea that followed the founders’ recipe of filtered water, fresh-brewed tea and sugar, with no added preservatives, coloring or flavorings. One describes it as “the nectar of the south.” It adds that “the name has become synonymous with sweet tea itself in some parts. In Alabama, at least, the tea has an almost cult-like devotion.”

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Milo’s Tea

Until 2013, that reputation and operations were largely centered in the South. Milo’s facility in Bessemer occupied 30,000 square feet on 3.5 acres in and was expanded to 150,000 square feet on 15 acres by . The Tulsa Distribution and Production Center, scheduled to open in September 2020, adds 108,000 square feet. The Governor of Oklahoma, Kevin Stitt, pointed to the value of Tulsa’s location in its Western expansion. The company’s CEO, Patricia Wallwork, stated that this second production facility is “critical” in this regard and “fundamental” for extending its geographic footprint.

Up to 2014, Milo’s sales came almost entirely from its range of four iced teas. Its CEO was quoted in 2014 as stating Milo had launched just . Since then, it has added many. It entered the organics market in 2014, with USDA-certified “” teas, lemonade, instead of sugar-sweetened varieties, and an energy boosted tea, , targeted to students. The focus on all-natural remains core. Milo’s won or has placed in the (now renamed the Global Tea Championship) for seven consecutive years from 2001-2017.

Milo’s has not released details of its plans. Observers have noted developments relevant to extended distribution. Its prior to 2009 operated as a direct-to-store private licensed and bonded operator within a 100-mile radius of its Bessemer production base, using 12 refrigerator trucks. The company outsourced delivery to wholesale dairy distributors for longer distances and to meet the just-in-time demands of major retailers.

Moving to what is termed (third-party logistics) in a arrangement with Ryder Supply Chain Solutions, Milo’s is reported to have . The Milo’s-Ryder collaboration won an logistics excellence. Descriptions of the system reference onboard IoT (internet of things) cab-to-hub connectivity, demand-surge management and optimization engines. ’s that shift from asset-intensive 3PL to resource-allocative . In early 2019, Milo’s posted a public job application for a .

The Tulsa facility is located in the

SOURCES

Alabama Newscenter, Area Development, Birmingham Business Journal, Cerasis, Food Business Africa, Inbound Logistics, Investor.ryder.com, LinkedIn, Over The Mountain Journal, Shelby Report, Shopify, Southern Living, Thisisalabama.com, Tulsa World

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