Need to Know

Tea industry news for the week of May 18.

  • Boba Tea Tops Beverage Delivery Lists
  • East Africa Update
  • Turkish Tea Harvest
  • Robotic Waitstaff Serves Tea
  • Nepal Asks India to Resume Tea Imports

Boba Tea Tops Unique Food Orders

In March YELP! marketers decided to find out what food and beverages people across the country were being delivered right now! Data scientists tracked how frequently a dish is ordered in each state relative to its popularity in other states.

“When we first looked at the results, pizza delivery reigned supreme, which is no surprise since it delivers well and it’s perfect for a family night in. However, we dug into the data to find the most uniquely popular delivery order in every state*, and that’s when things got interesting,” writes YELP!

Winners include a run on crayfish in Texas, poke bowls in Indiana, pad thai in Washington, sushi in South Carolina and naan in Wyoming but guess what topped the list of delivery orders in California last week? How about Michigan? and Hawaii?

Boba tea.

“What we found was a mix of delectable dishes and drinks that tell a story of how American taste buds differ from state to state and region to region,” according to the company.

Click here to see the full list.

*Samuel Hansen at Yelp! employed a natural language processing technique called term frequency-inverse document frequency (TF-IDF), which quantifies how frequently a dish is ordered in a state relative to its popularity in other states.

East Africa Update

Rwanda’s tea sector, largely spared from lockdowns, saw a marked increase in production during the first quarter. The harvest totaled 9,000 metric tons generating $27.6 million in revenue, which is up by 15% from the same period in 2019.

But there are still formidable challenges getting that tea to market.

East African tea growers truck tea destined for export to the auction at Mombasa. Kenya’s borders remain open during the coronavirus pandemic, but Tanzania and Kenya required each driver be tested before crossing.

The result offers a lesson in what can go wrong. A shortage of testing supplies and the sheer number of truckers led to delays that extended from hours, to days, to weeks. Few of those who were tested showed symptoms and none were quarantined while they awaited results. Unable to afford hotel rooms they slept in or under their trucks, cooked together and played sports to kill time. Some wore masks but many did not and very few practiced social distancing. During the two weeks ending last week 150 truckers crossing into Kenya at Namanga tested positive and were eventually ordered back across the border but by then they had infected hundreds of local merchants and fellow truck drivers.

The Washington Post reports that beginning this week, only drivers that have tested negative prior to arrival at the border will be permitted to cross. Uganda has since discovered dozens of infected truck drivers crossing from Kenya. Zambia closed its border to Tanzanian truckers. Kenya is the largest tea producer in the region at approximately 500 million kilograms followed by Uganda which harvests 60 million kilos annually; Tanzania at 35 million, Rwanda at 30 million and Burundi at 9 million kilos per year.

At the Mombasa auction Rwanda growers earned an average $2.68 per kilogram of tea last year, followed by Kenya growers who received an average $2.59, Burundi at $2.21 per kilo, Tanzania $1.36, and Uganda $1.21. The overall average price was $2 per kilo.

Kenya currently has 1,214 confirmed COVID-19 cases, according to Johns Hopkins Coronavirus Resource Center. There have been 51 deaths. Tanzania is reported to have 509 confirmed cases with 21 deaths. Rwanda has 327 confirmed cases with no deaths reported as of the second week of May.

Holiday Travel Restrictions Eased for Turkish Tea Growers

Climate dictates that Turkish tea be harvested in three flushes, unlike Africa, Sri Lanka, and Southern India where plucking continues year-round. Tea is grown there on sparsely populate hills facing the Black Sea where growers depend on seasonal labor.

This year’s spring flush was interrupted by a March 28 lockdown to prevent spread of the coronavirus. Fatma Genc, a researcher at Istanbul’s Marmara University, told The National, that 50,000 tea farmers were unable to prepare their fields for the harvest. Ramadan, which began April 23, complicated timing for Muslims.

“The failure to harvest this year will make it difficult to meet even domestic demand,” said Genc told the newspaper. “Tea prices, which have been hiked twice in a row this year, will increase even more if the producers cannot go to the field.”

This week farm owners and laborers from across the country were finally able to travel to northern Turkey on trips extending through the three-day Eid al-Fitr festival that follows the Muslim holy month of Ramadan. Seasonal labor from neighboring Georgia and Azerbaijan continue to face border restrictions leading to some creative solutions. The city of Findikli in Rize hired locals to harvest around half of the 30,000 metric tons produced nearby in an agreement that spans six months. Workers harvest for 10 days and while the leaves for the next flush are growing they complete municipal projects.

In Rize Province, the heart of the growing region, 16,000 laborers were given permission to travel between fields and home. The Provincial General Hygiene Council required testing at least one member of each family, about 6,000 in all. Screenings continue.

The provinces of Rize, Trabzon, Artvin and Giresun produce around 260,000 metric tons of tea annually, most of it sold domestically. Turks consume an average 3.5 kilos of tea a year, more than any other country. While much of the tea is imported, a significant shortfall is expected due to rising costs and the fact that much of the domestic tea went unpicked. Caykur, the state-owned producer that supplies 60% of the country’s tea is running a deficit and facing additional costs due to the pandemic. Caykur purchases tea from 200,000 independent farmers.

Turkey has 157,814 confirmed COVID-19 cases with 4,369 deaths, making it ninth on the list of countries most impacted by the pandemic, according to the Johns Hopkins Coronavirus Resource Center.

Tea garden in Turkey’s Rize Province, along the Black Sea.

Robotic Waitstaff Serves Tea

Tearoom Robot Reduces Contact with Waitstaff Easing Customer Concerns

The Tea Terrace, a small London-based chain of tea rooms that was forced to close during the March outbreak intends to open this July with the assistance of family-friendly robots.

Forbes magazine reports that managing director Ehab Shouly found while surveying customers that fear of crowding and contamination by waitstaff were their greatest concerns. Spacing tables was a relatively simple adjustment but a previous experiment with automated service at the company’s Surrey tearoom proved prescient. Last July The Tea Terrace became the first restaurant in the UK and Europe to introduce a robotic waitress, named Theresa.

Theresa is summoned by guests using controls at the table. The robot responds to voice commands. Shouly has also introduced functional assistants such as Captain Tom, a bot that delivers up to four trays each with teapot, teaware, and food.

Modifications are underway to expand robotic services to all four tearooms which serve 200 to 300 guests per day on weekends.

Nepal Asks India to Resume Imports

Tea growers in Nepal are seeking the resumption of exports to India, according to Nepal’s Ministry of Commerce and Supplies.

India stopped importing tea the week of May 6 and has not responded to Nepali officials. Periodically India has shown its displeasure with Nepal by refusing entry of tea and other exports such as palm oil.

Purna Kumar Karki, president of Jhapa Tea Entrepreneurs Association, told My Republica that Indian authorities impose non-tariff barriers on Nepali products from time to time “for no reason.”

Sanjay Bansal, chairman of the Darjeeling Tea Association (DTA), recently appealed to West Bengal Chief Secretary Rajiva Sinha to regulate the sale of Nepal tea to save the Darjeeling Tea Industry. Darjeeling growers maintain that Nepal undercuts their unique tea which is protected with a global Geographical Indication certifying its authenticity.

Bansal told The Statesman Nepal did not impose a lockdown and growers there have been producing at a high rate since February. “These teas are ready and are in the process of being shipped to India through the Indo-Nepal land borders in West Bengal to be sold in the local markets by taking advantage of the absence of Darjeeling Tea in the market due to the lockdown restrictions,” said Bansal.

In a related matter, Federation of Chambers of Commerce & Industry, North Bengal (FOCIN), has requested Chief Minister Mamata Banerjee to allow small wholesale and retail shop owners to open their establishments.

Need to Know

Tea Industry News for the Week of May 11.

  • Tea & Tariffs
  • Export Value of Tea Declined in 2019
  • U.S. Consumers Remain Wary of Reopening
  • Tea is Piling up
  • Attend the SofaSummit on International Tea Day
Global Tea Exports Declined 18.8% year-over-year in 2019.

Tea Export Value Declined in 2019

Logistical hurdles in tea producing countries greatly complicated export this quarter as demand declines and prices remain low. Recessions in Russia, Europe, and North America dim prospects of a profitable return for the export segment where sales have declined in value by an average 12.8% since 2015.

The declared value of global tea exports depreciated 18.8% year-over-year in 2019.

Sales from tea exports totaled only $6.4 billion in 2019, according to analyst Daniel Workman at World’s Top Exports. Tea shipments worldwide were valued at $7.3 billion five years ago.

China, at $2 billion in sales, remains the leading tea exporter, accounting for 31.8% of total exports by value, up 13.5% compared to 2018.

China faced several impediments to growth prior to the coronavirus outbreak but retained its rank as the top tea exporter globally in 2019. Green tea exports, the main tea crop, totaled 304,000 metric tons and were valued at $2.02 billion. The average price of exported green tea was $4.34 per kilo in 2019.

China’s tea exports were generally stable and of improved quality, despite the U.S.-China trade dispute and uncertainties in the world economy, according to agricultural and trade officials. Tea exports to the U.S. in 2019 were down 5.1% to 15,000 metric tons, but this was easily offset by a 15.6% increase in purchases by ASEAN nations. The 23,000 metric tons sold to ASEAN countries was valued at $400 million, up 55.7% compared to 2018.

China reported a 13.6% overall revenue increase year-over-year. Black tea exports were up 6.7% to 35,000 metric tons increasing in value by 24.5% to $350 million, according to China customs statistics. Black tea averaged $9.92 per kilo, up 16.72% year-on-year.

Yu Lu, vice president of the China Chamber of Commerce of Import and Export of Foodstuffs, Native Produce and Animal By-Products (CFNA) said the average annual compound growth rate of exports was 3% during the past three years. Green tea accounts for 82.8% of the total volume, which topped 367,000 metric tons last year.

Trade with countries along the Belt and Road increased 4% last year, earning China $560 million, a year-on-year increase of 307%, according to Yu Lu.

India exported $803 million worth of tea in 2019, up 4.6% compared to the prior year. India set a production record in 2019 growing by 3.8% thanks mostly to smallholders, but while volume reached 1,390 million kilos, the country accounted for only 12.6% of tea exports by value.

Sri Lanka’s 11.3% market share by value and Kenya’s 5.7% share also contribute significant volume, but each saw steep declines in value as prices for cut, tea, curl CTC grades fell. During the past five years (2015-20), the value of Kenyan tea exports declined by 71.3%. During that same period, the value of tea sold for export by Taiwan increased 131.3%; sales of Japanese tea are up 59.6%, and the value of Chinese tea for export is up 46.5%, according to World’s Top Exports.

Selling to domestic consumers is appealing in China and Japan, where higher prices are the norm, but India may benefit most from increasing domestic consumption.

Tea & Tariffs

The economic impact of the pandemic makes it unlikely that China will meet the expectations of a “phase one” agreement negotiated with the U.S. in January. As a result, U.S. President Donald Trump said he might initiate another round of tariffs targeting China.

Or maybe, not.

“I’m very torn, I have not decided yet, if you want to know the truth,” President Trump told reporters last week.

On Friday, to keep what have been productive discussions on track, the U.S. Trade Representatives’ office released this statement: “In spite of the current global health emergency, both countries fully expect to meet their obligations under the agreement in a timely manner.”

In January, China agreed to a 2020 increase of $76.7 billion over 2017 imports. China has since purchased less than $25 billion of U.S. goods, which is a decline of 5.9% through April compared to 2019, reports Bloomberg. The 2020 goal is almost $200 billion in sales.

U.S. trade plunged in March. Overall the U.S. bought 6.5% fewer goods than during the same period in 2019. Imports of Chinese tea through March 2020 declined 23% compared to the same period in 2019, according to the Global Agricultural Trade System database (GATS). Lower sales are due, in part, to a 15% tariff imposed in September 2019. The duty was later reduced to 7.5% in February 2020, but by then, many blenders had switched suppliers. During the first quarter in 2019, the U.S. imported Chinese tea valued at $32 million, a total that declined to $24.7 million during the same period in 2020.

Volume is down 31% from 8.7 million metric tons to 6 million metric tons through March. China is predominately a green tea exporter, but volumes of every category slid, except organic flavored green tea.

Jason Walker, marketing director at Firsd Tea in New Jersey, the U.S. offices of China’s largest tea exporter, writes that while “U.S. imports of Chinese black tea have generally declined over the past five years. More recently, the U.S.-China trade war and coronavirus pandemic have contributed to this slowdown. However, organic black tea imports from China have been rising, with a 66% increase in volume.”

Since workers were able to return to the fields before April, tea production China was spared the pandemic-associated drop in yield experienced in India and Sri Lanka. Imports recorded during the first quarter include little of the spring harvest. Second-quarter statistics will be more revealing as they will reflect the logistical challenges that are still rippling through the supply chain.

“Firsd Tea has been watching the activity at U.S. ports for indications of delays and disruptions. We have not seen any to date,” writes Walker. “In terms of containers leaving China, we have not seen any disruptions since normal business resumed around the end of February in China. At this point, China operations have implemented monitoring systems and PPE (personal protection equipment) requirements for workers. We are watching for indications of flare-ups, but so far, we don’t see evidence of another wave of infection,” writes Walker.

Blenders initially found themselves racing to meet the demand for packaged goods, particularly private label for grocery, but orders for foodservice grades has virtually disappeared due to the unprecedented restaurant and retail tea closures. This alone will substantially reduce tea imports from every producing country.

Specialty tea importers receiving Chinese tea this spring say that demand remains steady despite a three-fold increase in airfreight, which is a far greater expense than the 7.5% tariff.

“Importers were working with a three-fold increase in air freight delivery in April. Rates are still high, but at least cargo is moving faster now,” writes Andrew McNeill with Seven Cups Fine Chinese Tea in Tucson, Ariz.

China recognizes the desirability of retaining a presence in the U.S. market as Europe is likely to experience a more severe recession than the rest of the world. The European Commission last Wednesday released projections that show economic activity shrinking by 7.4% in the 27-nation bloc, according to the New York Times. Economists predict the deepest economic recession in EU history.

While the U.S. administration is angry at China, the escalation of retaliatory measures challenges the prevailing business assumptions guiding American companies in China. U.S. companies invested $14 billion in new factories and other long-term investments in China last year, according to the National Committee on U.S.-China Relations and the Rhodium Group, a consultancy that tracks foreign direct investment flows.

Shawn Donnan, writing in Bloomberg Supply Lines, suggests, “it’s worth remembering every so often that it is still businesses and not governments that really make the decisions that drive globalization and supply chains and that they aren’t decoupling yet.”

Reenergize Local Consumption

Pradyumna Barbora, a specialty tea producer in Assam, points to a straightforward solution: Increasing average per capita consumption from 750 to 800 grams will “uplift the Assam tea industry,” he writes.

“If every tea lover in the country increases their consumption by a mere 50 grams per month, and starts sourcing their tea locally, the gardens will be able to meet their expected minimum wages whilst creating a better living environment for themselves,” writes Barbora, spokesman for Tea for Unity, a group of Assam planters. “We are losing focus on a high-quality heritage product which fetches much more and is more valuable than commercially mass-produced tea,” writes Barbora. The tea industry employs more than a million workers,” he explains, “Investment will improve the mindset of the workforce, translating into greater efficiency and quality.”

Learn more: Tea for Unity

Tea is Piling Up

Processed tea is piling up as demand declines, and transport is interrupted. Globally, warehouses usually empty by the start of the spring harvest. An abundance of tea stored in 2019 is compounding problems in India. Consider the 21 villages in Champawat, a tea-growing region where warehouses are bulging because drivers are not permitted to travel.

Tea, valued at INRs360,000 ($4,700), was ready to be sent for auction in April, “but we have not been able to transport it due to the lockdown. If the stock is not sent to Kolkata soon, those involved in tea plantation and its selling may face a financial strain,” Desmond Brikbeck, manager of several local tea gardens, told the Times of India.

U.S. Consumers Remain Wary of Reopening

Datassential continues its weekly series of webinars tracking consumer behavior during the pandemic. The COVID-19 series is free and hosted by managing director Jack Li, whose company pioneered the use of menu data to predict flavor trends.

The topic May 8 was “The Next Phase” (download PDF).

Reopening is underway led by Starbucks, which announced that 85% of its corporate stores would soon resume operations.

Li notes that concern has declined somewhat as some states reopen, “but America is still anxious, with slightly more than half of the people feeling very concerned and hugely worried about their own personal health.”

“Avoidance of eating out is steady, but down from a month ago with 55% of those surveyed saying they will “definitely avoid going out” and 27% saying they are “nervous but will still eat out.” The number of individuals reporting “no concerns whatsoever” increased to 18%, up 2% since April 27 but down 23% since March 10, according to Datassential.

Health remains the top concern, but economic worries are intensifying, according to Li, who found that 57% of respondents are more concerned about the public-health crisis (down 2% since April 27 and down 6% since April 10). Those who say they are most concerned about the economic crisis increased 2% from April 27 to 43% of respondents.

“Not much has changed in the past month. America is still at home and still longing to get back out,” writes Li. “People are excited to get back to activities like dinner and a movie, or lunch and shopping at the mall,” he said.

When asked: “Which of the following food & drink places or activities are you most excited to get back to?” 45% selected “dining at my favorite sit-down restaurant,” and 42% selected “visiting recreational places” with 39% longing to “meet family and friends at restaurants.”

Going to coffee shops (20%) and drinking at bars (19%) ranked in the middle. Visiting nightclubs, concerts, and lounges appealed to only 10%. Visiting cafeterias (5%) was the least exciting activity.

Editor’s note: Unemployment increased to 14.7% in April, the highest since the Great Depression. New claims topped 26.5 million during the five weeks ending April. The proportion of employed working-age adults (51.3%) is the lowest on record. Datassential found that 16% of survey respondents are still going to school or working as usual, with 16% stuck at home due to layoffs and furloughs. An additional 33% of those taking part in the weekly survey are working or attending school remotely, with 35% not working overall.

Next episode: “What Consumers Want Right Now.”

EVENTS

Attend the SofaSummit on International Tea Day

Thursday, May 21, is International Tea Day, a global event declared by the United Nations that will, for the first time, be celebrated in every county. The U.N. organized the event to elevate tea by drawing attention to “the importance of tea for rural development and sustainable livelihoods, and to improve the tea value chain to contribute to the 2030 Agenda for Sustainable Development.”

To celebrate, the Tea & Herbal Association of Canada, in coordination with many prominent industry leaders, is hosting an all-day tribute May 21, beginning at 9 a.m. through 7 p.m. EST. The tea and chat will “circumnavigate the globe,” spanning 14 time zones with participants from 13 countries. Watch on YouTube live – no registration required.

Shabnam Weber will host on THAC’s YouTube Channel: http://tiny.cc/gyqdoz

Click to learn more: International Tea Day.

UK Tea & Infusions Association

Raising Our Cup to All Tea Drinkers

The

Participants (in order of appearance) include:

Yu Lu, China Chamber of Commerce CCFNA

Rajah Banerjee, Makaibari

Arun Singh, Tea Vision

Ketan Patel, Jalinga Tea

Stephen Twining, Twinings

Alfred Njage, KTDA

Cindi Bigelow, Bigelow Tea

Gabriella Lombardi, Cha Tea Atelier

Joyce Maina, Cambridge Tea Academy

Will Battle, Fine Tea Merchants

Joe Panter, Camellia PLC

Ramaz Chanturiya, Tea Masters Cup (Russia)

Carolina Okulovich, Don Basilio

Rona Tison, ItoEn

James Norwood Pratt, Author

Jane Pettigrew, UK Tea Academy

Kevin Gascoyne, Camellia Sinensis

Jeff Fuchs, Tea Horse Road

Tania Stacey & David Lyons, Cuppa Cha & AUSTCS

Cecilia Corral, Tian Té Mexico

Fred Yoo, Myung Wong Cultural Foundation

*Corrected 9/13 to clarify this event was organized solely by the THAC.

Virtual Tea Tasting

The Ceylon Artisan Tea Association is hosting its third in a series of virtual tea tasting webinars. Amba Estate was featured on April 30. This week features Forest Hill Tea, which was recently profiled in Tea Journey magazine.

Click this link to join the meeting: https://us02web.zoom.us/j/9997849844

Meeting ID: 999 784 9844

The Zoom event begins at 5.30 p.m. Wednesday, May 13 in Colombo Sri Lanka (India|Asia) | 8 a.m. EST (New York) | 1 p.m. (London) | 2 p.m. (EU) | 8 p.m. (Singapore and Hong Kong) | 9 p.m. (Japan and Korea)

If you miss the live event, recordings of these webinars are available for viewing at no charge.


Enhance your well-being with tea. Tea Journey is a bridge connecting those who craft handmade teas in 35 countries with the growing number of premium tea consumers globally. Tea Journey educates readers not only in the selection and preparation of healthy whole leaf tea but also in the manufacture of authentic teaware and utensils designed to enhance the tea experience.

Curious about tea? Subscribe free to Tea Journey Magazine

Need to Know

Tea Industry News for the Week of May 4.

  • Ominous Fiscal Impact
  • Online Grocery Orders Up 37%
  • Tea Supply Not a Grave Concern
  • Post Offices on the Front Line
  • Seattle Caps Delivery Commissions
Which are you more concerned about: The Economic or Public Health Crisis?

The pandemic is advancing the role and reputation of specialty tea in protecting the health and enhancing human immunity. At the same time, the economic impact threatens every link of the tea supply chain.

Marketers are wise to address health over wealth.

Consumer marketing surveys in several countries, as well as professional opinion research, indicates a “high level of concern” about becoming infected.

Last May, “health care emerged as the top policy issue for American voters at 36%,” according to Real Clear Opinion Research. Concern about the economy was the top issue for 26% of respondents. Health concerns are now top-of-mind for 66% of respondents in the U.S., according to the Edelman Trust Barometer.

Edelman surveyed a representative sample of adults in 11 countries. In Canada, the United Kingdom, and France 70% or more of respondents favor prioritizing health concerns. In Japan, 76% of those surveyed by Edelman cited health concerns.

“A substantial majority of people around the world want their governments to prioritize saving lives over moves to restart economies being hammered by measures aimed at halting the spread of the new coronavirus,” according to the Financial Post,

Overall, 67% of the 13,200-plus people interviewed between April 15 and April 23 agreed with the statement: “The government’s highest priority should be saving as many lives as possible even if it means the economy will recover more slowly.” One third said it is more important that governments save jobs and restart the economy.

Only 29% of those surveyed agreed that CEOs and business leaders were doing an “outstanding job” meeting the demands of the moment.

“It’s complicated because you have two crises simultaneously – a health crisis and an economic crisis,” said Richard Edelman, CEO of Edelman.

“Business will be looked at very closely in the months ahead,” Edelman said, citing how companies perform in areas such as retaining and reskilling workers or using small businesses in their supply chains.

Between February and March 2020, total retail sales in the United States fell by 8.7%. During this period, retail sales of food and beverage stores grew by 25.6%.

Dramatic Drop in Economic Activity

Economic activity dramatically declined in late March, and consumer confidence plummeted in April as jobless totals soared.

In April business activity at service companies fell to the lowest level recorded. The near-collapse in the service side of the economy has dragged the U.S. into what’s all but certain to be a deep recession. The government has rushed to aid hundreds of thousands of desperate companies with loans and other help, but it’s unclear if it will be enough, according to the Institute for Supply Management.

In tea retail, suppliers that rely on foodservice sales are the segment most impacted. Blenders in the grocery segment are still playing catchup to the stocking-up rush that is now decreasing.

Sales of tea in grocery and convenience will plateau until pantries empty. A fundamental shift away from traditional trips to the grocery store is underway, led by those who order online. Online market research specialists Brick Meets Click found that April sales of groceries sold online grew by 37% to $5.3 billion. Forty million Americans ordered groceries online in April, increasing both frequency and spend, according to the results of a natural consumer survey. Orders increased from 1.2 to 1.6 per month and spend rose to an average $85 per order, up from $82 in March

The April wave of surveys looked at two additional factors to help us understand the health and economic motivators impacting shopper’s behaviors writes Brick Meets Click.

  • Health: 47% of the households surveyed indicated a “high level” of concern related to catching/contracting the Coronavirus.
  • Economic: 39% of the households surveyed indicated that their average monthly household income since the COVID-19 crisis started had dropped dramatically – 25% or more – compared to Jan/Feb 2020. 

Reopen Now or Not?

In the U.S., where the contagion has killed more than 70,000 people, about half of the states are easing restrictions on business.

Retailers considering reopening should bear in mind that most Americans are not ready to risk infection by going out. While 56% say they are comfortable making trips to the grocery store, 78% indicate they would be uncomfortable eating at a sit-down restaurant. “People in states with looser restrictions report similar levels of discomfort as this in states with stricter rules,” according to a Washington Post-University of Maryland poll conducted last week.

In announcing plans to ease the restrictions on businesses, governors have emphasized that their actions represent a gradual and cautious reopening of their economies. Nonetheless, when asked about eight different types of businesses, majorities of Americans say they oppose ending the restrictions on each of the eight.

“Fear of infection, the poll finds, has not abated at all in recent weeks,” according to the Washington Post.

Datassential polls 1000 consumers weekly, beginning in March. The chart below suggests consumer fears have plateaued with 94% either “very concerned” or “somewhat concerned.” Only 6% say they are not concerned.

Note to Brands

Consumer sentiment is clear: Businesses have a responsibility to ensure their employees are protected from the virus in the workplace and do not spread the virus into the community (78%). They want businesses to focus on solutions, not selling. In a survey of 12 countries, many consumers indicated businesses should shift to producing products that help people meet the challenges (89%). One in three (33%) say they have convinced other people to stop using a brand “that I felt was not acting appropriately in response to the pandemic.”

Brands must do everything they can to protect the well-being and financial security of their employees and their suppliers, even if it means suffering big financial losses until the pandemic ends. – Edelman Trust Barometer 2020

Tea Supply is not a Grave Concern

Lockdowns in tea producing countries are gradually easing, permitting the harvest to resume, but logistical hurdles are mounting as the cost of airfreight, the preferred method of transport early in the season, tripled. The availability of cargo space on aircraft is greatly limited due to the virtual absence of commercial flights. Overburdened carriers are increasingly tasked with flying far more precious or urgently required goods. In India, the national rail service is shut down and trucking fleets are idle.

Containers are piling up at ports, and ships lie at anchor awaiting medical clearances.

Available airfreight on passenger planes in March was down 44% globally compared to the same period in 2019. Dedicated air freighters added more flights, but overall capacity was down by 25% in March, according to the Wall Street Journal.

The cost of air freight from China to the U.S. increased from $3 per kilo in March to $11 per kilo in April and continues to climb.

Paul Golland, owner of P.G. Logistics, a freight-forwarding business in Australia, told the Wall Street Journey that. “You used to get a quote valid for 30 days. Now you’re getting it valid for 24 hours, because tomorrow the situation may change again.”

“International postal services have been among the hardest hit. Many have reduced or suspended international mail in recent weeks due to a lack of flights,” according to the article. The U.S. Postal Service last week said it would start shipping mail by sea to 10 European countries.

In India, Amazon and Walmart are restricted from making deliveries except for food and medicine, which greatly increased the workload for that nation’s 400,000 postal workers in 150,000 branch offices. About the only service tea vendors can count on is mail delivery. India operates the largest postal service in the world and is rising to the challenge. As the Wall Street Journal reports, “courier competitors can’t deliver. They depend on commercial flights and trains, which aren’t running, their truck fleets aren’t allowed on their roads, and their employees can not get to work.”

U.S. Postal Service employs 633,000 in 32,000 post offices, annually delivering 142 billion pieces of mail. But in April, due to the Coronavirus, Postmaster General Megan Brennan told Congress that volume declined by a third and is expected to fall by half by the end of June. E-commerce is surging, but bulk and business mail account for far more business. Postmaster Brennan estimates the shortfall at $25 billion.

The Human Condition

Datassential reports that only 15% of Americans are still going to school or working as usual. There are now 17% stuck at home due to layoffs and furloughs. An additional 37% of those taking part in a weekly survey are working or attending school remotely, with 31% not working overall.

“While most Americans are apprehensive about the reopening of non-essential businesses, they favor people visiting open-air locations like parks and beaches, where they can keep social distance. As you might expect, people who are currently more concerned about the economic crisis are much more accepting of visits to all types of venues than those more concerned about public-health implications. Having guidelines in place for reopening and familiarity with grocery store precautions have likely also paved the way for other retailers. One-third of Americans are OK with visits to places like shopping malls, hair salons, and restaurant dining rooms,” according to Datassential.

Jack Li at Datassential is optimistic that restaurants will remain a vital part of social life after the crisis eases:People miss dining in restaurants, not just for the food, but also for the psychological benefits. When dining rooms reopen, there will be a heightened appreciation for them and the sense of normalcy they evoke. Americans associate dining in with better pre-COVID times and happy “milestone” celebrations. Restaurants will also provide an opportunity for people to do their part and reconnect with their communities.

How soon will this end? Simon Baptist, Chief Economist at EIU, writes that “even in countries where containment measures are being eased, economic activity will be slow to pick up. For instance, even though India partially eased restrictions on April 20, high-frequency data on electricity consumption shows no change in demand from the week before.

Delivery Fee Caps

Last week Seattle instituted a local ordinance capping third-party delivery service commissions at 15%. The intent is to address price gouging during lockdowns temporarily. Violators are subject to prosecution by the Seattle City Attorney’s Office and face steep fines. San Francisco is enforcing a similar ordinance capping service commission at 15%. Chicago and New York City are also considering enacting commission caps. In New York, the proposed cap is 10%. The Seattle ordinance mandates delivery drivers get the full amount of tips and makes it a crime for third-party delivery companies to cut drivers’ pay. The ordinance remains in effect until restaurants are allowed to resume unrestricted dine-in services.

Best Retail Practices

  • Daily wellness checks for all employees (back of store and front line)
  • Provide ample (non-medical) masks, single-use gloves and additional PPE as required (plexiglass cashier shields etc.)
  • Clean high-touch surfaces every two hours.
  • Encourage hand washing every half hour for food handlers.
  • Seal orders in packaging and do not let cashiers handle food.
  • Apply social distancing floor decals and display distancing reminders.
  • Make sanitizer available at checkout and in stand-alone dispensers at entry.
  • Avoid cash transactions and sanitize credit-card terminals after each use.
  • Disinfect entire store at the end of each day and schedule periodic deep-cleaning

Encourage customers to order online and at digital kiosks. Avoid face-to-face interaction by offering carry-out, curbside pickup, drive-thru, and contactless delivery. Customers should insert their own credit card into payment terminals (and stores should opt for “tap to pay” where available). Rely on video and remote methods of communication to minimize consumer contact with store personnel.

Need to Know

Tea Industry News for the week of April 27

  • The Pandemic’s Impact on Specialty Tea
  • Starbucks Reports 60-70% Decline in US Sales
  • McKinsey & Co.: Consumers Are Readily Abandoning Brands
  • Sri Lanka: March Tea Exports Drop by Half
  • Retail Innovations: Samovar Tea Lounge Offers Free Meal Monday.
Sri Lanka tea gardens are practicing safe harvesting techniques making up for lost weeks following government-ordered closures. Photo courtesy Lumbini Tea Estate/Gayan Samaraweera.

It is too early to predict the impact of a looming economic downturn with accuracy. Still, a mid-April survey of U.S. tea retailers by Sinensis Research found that 81.8% of the specialty tea business has laid off staff, with 31.7% of American tea shops temporarily closed.

Abraham Rowe, who conducted the survey, reports 2.3% of tea businesses are permanently closed two months into the crisis. “I expect this number to increase if the lockdowns last through the end of May,” he said.

“Many of the businesses still operating report that they expect to close if sales do not pick up, or if they are unable to secure assistance in the form of loans or grants to continue operations,” according to Rowe.

“Specialty tea business revenue is expected to decline to 65% of 2019 sales, suggesting an overall loss of about $133 million to $154 million in tea sales by specialty tea vendors, and likely much greater losses from coffee shops and cafes that sell specialty tea,” writes Rowe.

“The coronavirus pandemic has devastated people and businesses across the world,” says Rowe, but “it’s too early to get a complete picture of the pandemic’s damage to the industry.”

  • Around 9,200 of the jobs held by tea professionals are gone. The average number of staff laid off at closed business is approximately 10, and at open businesses around 5. Layoffs and store closures represent a “devastating loss of talent and expertise” since the crisis first curtailed business activities in March, according to Rowe.
  • Most tea business owners remain optimistic. Rowe found that 93.3% of shop owners expect to reopen after the pandemic has ended and restrictions are lifted.
  • The number of businesses selling online has increased by 7%, and many companies have noted a significant increase in online sales and curbside pickup.
  • Shops that weather the initial lockdowns “can expect sales to decline between 20% and 80% this year, depending on their region and the extent to which the shop had to close or change their business model.”
  • Supply is becoming a challenge: 31% of open businesses report supply chain interruptions.

Revenue Forecast

Assuming that restrictions limiting normal operations last six months, “I predict 2020 revenue to decline to about 65% of the estimated $340 million to $400 million in 2019 sales,” said Rowe, adding that 96% of businesses that remain open expect revenue to decline for the year. “Very few of these businesses expect to grow in 2020,” he said.

A massive portion of specialty tea is sold by cafes and coffee shops, many of which are currently closed. “The number of businesses doing in-store bulk tea retail has declined by almost 50%, and the number of businesses serving prepared specialty tea has declined by more than 50% — afternoon tea service has ended almost entirely in the United States,” he said.

Rowe cautions, “these data only represent the impact on the retail market, and not the wholesale market, though a few comments on the impact on the wholesale market are included in his report.”

“I suspect that the wholesale tea market has seen even more damage than the retail market because of this, with revenue declining perhaps as much as 75% or more,” he said. Tea shops have reported that tea wholesale to foodservice clients has declined to zero, and it seems possible that larger wholesalers are feeling this same impact.

Rowe, who founded Sinensis Research in 2019, said his firm is providing research on the pandemic and its impact on the tea industry at no cost.

“Please support this research by exploring our products, such as the State of the Industry Report ($29.95). If you’d like to work with us to get up and running as an online store and get sales moving again, get in touch,” he said.

See related: Tea Shop Closings.

Starbucks Comps Decline
While Starbucks reported a decline of only 3% in comparable U.S. store sales for the quarter ending March 29, same-store sales plummeted 65-70% as the new quarter began, according to executives. Half of the company’s U.S. stores are now closed, leading to a 46% decline in earnings. Most workers will return to cafés in May, and the chain expects to reopen most closed locations in June, according to Good Housekeeping Magazine. Full-year revenue is expected to decline by almost 10%. In 2019 same-store fourth-quarter growth was a positive 6% for the U.S. division.

Consumer Behavior Insights

McKinsey & Co. is closely tracking changing consumer behavior in response to the COVID-19 crisis.

“Consumer behavior has changed across several dimensions: consumption by category, channel selection, shopper trip frequency, brand preference, and media consumption. These shifts, combined with forecasts for virus containment and economic recovery, are critical for commercial strategies,” according to McKinsey. Beverage sales in the grocery channel were up 36% during the period March 1-21, a situation that has led to restocking issues as consumers stocked up. Consumers are making 15% fewer shopping trips and buying enough for two or more weeks.

“Our research found that 30 to 40% of consumers have been trying new brands and products. Almost half of these consumer switches are because the desired product is unavailable, while an additional 19% decided to purchase cheaper available options. Of the consumers who switched brands, 12% expect to continue to purchase the new brands after the pandemic,” writes McKinsey.

Sri Lankan Tea Exports Decline

The bottom fell out of Sri Lanka’s generally robust tea export market in March following dismal yields in February. Tea export volume and value each declined by half compared to March 2019. Tea in packets dipped to 6.3mn kgs from 12.7mn kgs in 2019. Production of teabags dropped more than 1 million kilos from 2.4mn kgs in 2019 to 1.3mn kgs in March 2020. Revenue for all categories of tea was SLRs11.6 billion ($60.1 million) in March 2020 compared to SLRs22.5 billion ($116.7 million) in March 2019, as reported by the Daily News. Anil Cooke, managing director at Asia Siyaka brokers, explained that export activity virtually came to a halt before the government agreed that growing and processing tea is an essential industry.

Retail Innovations

Samovar Tea Lounge in San Francisco introduced Free Meal Monday in April and has since served 1,100 customers a free lunch of rice stew with vegetables, eggs, and tea. The give-away promotes sophisticated Samovar Life subscription meals starting at $19 for breakfast, $27 for lunch, and $37 for dinner. Meals are delivered Thursday through Sunday, and pickup service is available at all three of the 20-year-old tea room’s locations. Shipping is free from the company’s online tea store. The company is also delivering groceries.

Free Meal Monday

“We’ve never launched so many programs in such a compressed amount of time and while facing so many challenges.”

Samovar Founder Jesse Jacobs

From its inception, Samovar founder Jesse Jacobs viewed customers as a community celebrating the tea lifestyle. That is why he chose the URL: www.samovarlife.com.

Jacobs generates more than $1 million a year at his tea lounges, which feature wholesome food and superior tea. He is grateful to customers, rewards loyalty, and is genuinely concerned with their well-being. He will soon launch a virtual meditation and tea tasting. “I just keep waiting for word that the covid-19 situation has a clear solution, some clean exit plan that gets things “back to normal.” But the reality is, well, more sobering,” he writes. Check out his latest blog post: Reality As It Is: What a U.S. Admiral and Burmese Meditation Master Taught Me About Surviving the COVID-19 Pandemic.

Upcoming Events

The U.S. will report 1QTR GDP on May 1. Globally the impact on economies is “fairly catastrophic” writes market researcher firm Statista.

Singapore reported its economy contracted by 10.6% between January and March despite having initially kept the virus in check. The historic and unprecedented drop in Chinese GDP of 6.8% already made headlines. Japan’s economy contracted by an annualized 7.2% in 4QTR 2019 and is expected to decline another 5% in 1QTR 2020.

Central Banks in France and Italy have projected quarterly losses between 5% and 6%. Experts expect the U.S. economy to contract by 5-10% and the UK economy by as much as 13%.

Global 1QTR GDP

Tea Shop Closings

A running list of permanent tearoom and tea merchant closures in Australia, Canada, New Zealand, UK, and the United States.

To add a business to this list email Dan Bolton (dan@tea-biz.com) with details and a link to a news report, press release, or a Facebook page announcement. Tea Biz also publishes Tea Shop Obituaries that celebrate the life of tea businesses that have served their communities for five or more years. Owners are encouraged to share their experiences so that other shops will benefit.
Tea Shop obituaries are 350-word interviews illustrated with a photo.

CANADA

The Canadian Federation of Independent Business (CFIB), which represents 110,000 small ventures reported in April that 58% of members surveyed said they could not pay May rent without government assistance. Only 18% of small businesses indicated they are now open. The survey of 10,500 businesses was conducted April 17-19.

Victoria, British Columbia
Just Matcha Tea Shop (established 2013-2020)
Locations: 2021 Oak Bay Ave. | 544 Pandora Ave.
Tiffanie and Kip Home announced the temporary closure of their two tea shops in mid-March but could not make rent payments. Unable to reach an agreement with their landlord (who graciously deferred rent) they decided to close permanently in April after seven years, according to the Times Colonist. “I’m not going to triple my revenues when it opens again and you need to do that in order to cover the rent for the three months that you missed,” Kip told the newspaper. Kip said the company spent a lot of money in January and February restocking inventory and buying merchandise for the upcoming tourist season that relies heavily on cruise ship visitors and public events. The couple and their two business partners hope to one day reopen on Pandora Ave.

UNITED STATES

A National Restaurant Association survey of 6,500 restaurant operators found a 78% average drop in sales during the first week of April, compared with the same period last year. The U.S. restaurant industry lost 3 million jobs in March with sales plummeting by $25 billion. The association estimates that 44% of restaurant and cafes operators were forced to temporarily close in March with 3% permanently closed. The survey indicated 11% of respondents anticipate closing permanently due to the crisis. Sinensis Research reports that as of mid-April 31.7% of U.S. specialty tea businesses are temporarily closed with 2.3% closed permanently. In a report on the impact of COVID-19, founder Abraham Rowe estimates 9,200 layoffs. His survey of 1,600 shops showed that “81.8% of specialty tea businesses have laid off staff.”

Doylestown, Pennsylvania
The Zen Den (established 2011-2020)
Location: 41 E. State Street
Owner Annette Coletta announced the closing of the popular shop in April, according to the Doylestown Patch. The shop featured many live events and was favorite of artists and musicians. Coletta intended to sell the business and was in discussion with buyers when the coronavirus lockdown forced her to close the shop. On Facebook she wrote: “I have had some of the best years of my life here and made so many friends and acquaintances that I’m very grateful for having. What began as a way of coping with a personal crisis after a horrific car accident, has now ended through a global crisis. What began as an idea in someone with no business experience, The Zen Den grew to earn “The Best of Bucks/Mont” several years in a row—-I have more gratitude and pride than I can articulate—-I have ALL of you to thank!” Liquidation of inventory is planned by April 30. “I will go forward knowing that I gave it my EVERYTHING and ran an honest, ethical business for 9 years and that I did the best I could—-I have no regrets,” writes Coletta.

New Orleans, Louisiana
Coast Roast Coffee & Tea (established 2015-2020)
Locations: 2381 St. Claude Ave.| 801 Magazine St. (2018-2020)
Owner Kevin Pedeaux, a 12-year veteran with three shops in Louisiana and two in Mississippi closed the company’s St. Roach Market and Auction House Market locations in New Orleans but continues to operate the 3618 Magazine Street store which opened in 2019, according to a report in the Uptown Register. Service is limited to delivery, online order for pickup, and show and order-to-go. Pedeaux said in March he had to lay off 12 staff members but in April is back up to five. “It was personally a huge victory to get back to 7 a.m. to 7 p.m. hours,” he told the newspaper.

Need to Know

Tea industry news for the week of April 20

  • Monitoring Consumer Behavior
  • Record Prices at Colombo’s Digital Auction
  • Kenya May Ban Direct Tea Sales
  • Physical Distancing on 1,500 Acres in Assam
  • Private Investors Back Millennia Flash-Frozen Tea

Monitoring Consumer Behavior

Datassential surveys consumers weekly and hosts a Friday webinar Food + Coronavirus to share what they have learned about fast-changing consumer behavior. The presentations are free. Mark DiDomenico is director of consumer solutions at Datassential. He told participants during a webinar hosted by the National Coffee Association last week that American consumers at this point are more worried about their health than wealth (health concerns peaked at 67% April 1 and remained at 61% the week of April 8). Respondents (64%) consistently say they will “definitely avoid” eating out.

When asked “since the onset of social distancing, where have you cut back on spending?” eating at restaurants topped the list at 57%.

“Consumers are avoiding risk but also seeking ways to adjust,” said DiDomenico, who cited examples such as cooking from scratch (42% say they do this more often), eating comfort foods (+33%), stress eating (+24%), and drinking alcohol more often at home (+14%). Moving forward? “Consumers are likely to avoid buffets and salad bars. Half say they will order for delivery (and disinfect delivery packaging), he said. Shopping for food online (+22%) is a new behavior that is very likely to stick, he said.

Global Impact

David Parnham, Research Director at Café Culture in Australia, recently completed a report on the immediate impact of lockdowns. The impact is sobering. While Australians were not strictly confined to their homes (New Zealand is in lockdown), a survey of cafe owners found that 19% experienced a 70-90% decline in sales, with an additional 19% reporting declines of 50-70% and 29% reporting declines of 20-50% in sales. Café Culture Managing Director Sean Edwards posted several helpful suggestions from café owners for “Staying Afloat in Tough Times.”

Business News

Sri Lanka is embracing a digital future for the Colombo Tea Auction according to Sri Lanka Tea Board Chairman Jayampathy Molligoda. The country’s first three electronic auctions in April resulted in sales of 16.5 million kilos of tea. Efforts to switch from outcry to electronic bidding span 20 years, according to Jayantha Karunaratne, chairman of the Colombo Tea Traders’ Association. “Changing the mindset of some players is not an easy task, said Karunaratne, adding, “Our vision is to go online because it provides advantages such as lower cost, greater efficiency, and more transparency.”

As soon as the auction opened demand from Russia, Turkey, and the Middle East drove record prices. An Uvakellie from Vellapatna Estate, owned by Madulsima Plantations, sold for SLRs810 ($4.21) per kilo and a Uva High from Finlays Oodoowerre Estate sold for SLRs980 ($5.10) a kilo, a record for FBOPF1 grade tea at auction. Akbar Brothers purchased the lot. Dickwella Estate then broke the SLRs980 mark at SLRs1000 ($5.20) per kilo for an FBOPF1 bought by Ceylon Tea Marketing.

“The response from industry stakeholders has been fantastic. The Sri Lankan tea industry has once again proven its resilience to upheavals,” said Dhammike Wedande, senior vice president of Asia Siyaka Commodities, a leading tea broker.

Direct Trade Ban
Kenya’s Ministry of Agriculture intends to ban direct tea sales. New regulations state that “henceforth, sale by private treaty (direct sales overseas) is outlawed,” forcing growers to sell exclusively through the auction process.

The new regulations raised concerns voiced by the East African Tea Trade Association (EATTA), which manages auction and direct tea sales in Mombasa.

“Exporters who have long-term contracts with international buyers might have to review those contracts, and we don’t know how this is going to affect the market,” EATTA Managing Director Edward Mudibo told Business Daily.

The Tea Auction in Mombasa, the world’s largest by volume, is experiencing difficulties associated with the spread of the coronavirus and was relocated to a hotel.

The entire auction system is “dysfunctional,” according to small growers who appealed to Kenya’s President Uhuru Kenyatta to intervene to curb predatory behavior amid falling prices. Reformers agree and hope to automate bidding.

Kenyatta’s reforms, announced last week by Agriculture Cabinet Secretary Peter Munya, require the Kenya Tea Development Agency to pay 50% of the price of monthly deliveries. The remainder is to be paid as an annual bonus. In the past, KTDA factories paid farmers KS14-16 per kilo. Buyers will now pay 10% down with the balance due before export. Factories must pay farmers within 30 days after receiving auction proceeds. Also, brokers representing factories will be limited in the number they represent (no more than 15 factories in the current proposal).

Physical Distancing on 1,500 Acres

India reported more than 1,500 new COVID-19 cases in the 24 hours ending Monday, April 20, bringing the national total to 17,656 confirmed cases with 559 deaths. There is no indication of a “flattening curve” with the contagion likely to peak in four to six weeks. West Bengal, which includes the fabled Darjeeling growing region, has 339 reported cases with 12 deaths. Assam reports 35 cases with one death.

Samar Jyoti Chaliha, who manages the Dikom Tea Estate near Dibrugarh in Assam, harvested only 17,000 kilos of tea in March due to government-ordered lockdowns. Usually, the garden produces 40,000 kilos of first flush tea. The early harvest typically yields 70,000 kilos, “but this year, I may be able to make a max of 45,000 to 50,000 kilos,” said Chaliha. The workforce is a concern. “I am limited to 50% of peak season’s employment (3,800 workers),” he said. Chaliha is currently paying 1,800 workers, but few are plucking tea. “Overgrown bushes take a lot of time. Right now, it is more slashing/skiffing and hand breaking overgrown leaves and branches which are tossed to the ground. We cannot make tea out of this stuff,” he said.

Restoring the bushes should be complete by April 23 or 24. It will then take another 15 days to come up with succulent leaves, which brings us to the beginning of the second flush, he explained. A typical second flush yields approximately 260,000 kilos (2.6 lakhs) during May and June.

“I don’t know how the bushes will behave after skiffing at this time of year (pruning is normally done in winter when the plants are dormant). Dikom produced an average of almost 3,000 kilos per hectare last year, a highly productive yield. “If all goes well, the second flush should be fine,” he said.

The garden currently has 1,500 acres (635 hectares) under tea. Given the vast area, instead of limiting the number of workers to one per acre, when they are most needed, consideration should have been given to simply assigning smaller numbers of workers within each block (say 100 vs. 200). Growers could assign 100 masked pluckers to each of two widely separated sections and maintain safe distancing of 10 feet between pluckers. Even with 3,800 workers in the field at the same time, in most of Assam’s licensed tea gardens, there would only be two workers per acre. “Apparently, no one took this up with the government,” he said.

Production News

India will take additional steps to spot-check tea to ensure it complies with the Food Safety and Standards Authority of India (FSSAI ) norms. Random checks should result in higher prices a necessity given the lower volumes at auction. “Tea failing to adhere to the FSSAI parameters may not be allowed to be offered in the auctions depending on the extent of the violations by the producers,” according to the circular issued to planters. Tea Board Deputy Chairman Arun Kumar Ray told the Deccan Herald, “right now, the priority is to comply with the health safety norms and hygienic practices in tea gardens to combat the COVID-19 crisis.”

In Sri Lanka, February Yield Marks Decade Low

Sri Lanka harvested only 17.9 million kilos of tea in February, down 3.8 million kilos from February 2019. High grown and medium grown tea showed marginal gains, but tea from the lowest elevations declined 28.3% due to drought. Forbes and Walker Tea Brokers report the first two months of 2020 yielded only 39.8 million kilos, down 5.1 million kilos compared to the first two months of 2019.

Health News
Sri Lanka is promoting black tea as an immunity booster with the slogan: “Double Your Protection” The campaign online and in print states that “Black tea is not only delicious but packed with immune-boosting theaflavin antioxidants. Enjoy 3 to 4 cups daily, and be protected both inside and out.”

The Times of India reports that the Indian Council of Medical Research (ICMR) will study the antiviral properties of theaflavin-3, a compound found in black tea. The United Planters’ Association of South India (UPASI) circulated a press release citing work by researchers in Taiwan and China, suggesting replication of SARS CoV-2 is inhibited by polyphenols commonly found in tea. These include Theaflavin-1, Theaflavin-2, and Theaflavin-3, all of which are abundant in black tea.

The European Journal of Preventative Cardiology reports fewer heart attacks and a lower risk of dying of heart disease among tea drinkers participating in a Chinese study of 100,000 adults over seven years. Those who consumed three or more cups of tea per week had a 20% lower risk of heart attack or related cardiac incidents and a 22% lower risk of dying of heart disease.

Retail News

Millennia Tea, a Canada-based supplier of flash-frozen tea leaves, closed its first private funding round at $500,000+. The pioneering brand, based in Saint John, processes tea much like leafy produce at origin where it is washed and frozen to preserve antioxidants destroyed during the drying process.

Tea cubes
Millennia also markets cubes of fresh tea leaves

Shelly King, CEO of Natural Products Canada, a key investor and strategic advisor, told Huddle that “today’s health-conscious consumer has embraced ‘food as medicine’ and is looking for ways to optimize the nutritional value of their everyday pleasures like a simple cup of tea.”

“Millennia TEA has a category-changing product that ticks all the boxes for today’s consumer,” said King.

Upcoming Events
The United Nations has designated May 21 as International Tea Day to raise awareness of the need for sustainable production and to honor those working to supply the world with tea. The British have a reputation for never enough when it comes to tea, so they also celebrate National Tea Day (Tuesday, April 21). The Sun once again published a chart of tea in 16 shades from red amber to milky white. The article always leads to squabbles over exactly how much is too much dairy. Historian Seren Charrington-Hollins explains why milk is added last:

One of the fiercest topics is whether to put the milk in the cup before or after the tea. In the early days of British tea-drinking, when the china we had was of such poor quality that it would crack under the heat of boiling water, milk was always put in first to cool the tea.

“But in the 18th century better china started to arrive and those who could afford it switched to putting milk in after the water, as a social signifier. Continuing to put milk in first was associated with the lower classes.

“Tea tastes better if you put the milk in after the hot water because you avoid scalding the milk. You also maintain the perfect temperature for brewing, which is 95C,” advises Charrington-Hollins.

Need to Know

Tea industry news for the week of April 13
– Grocery Sales Spike
– Tea Production Declines
– Health Misinformation
– Skipping Port
– Edible Tea

Consumers emptied shelves stocking up on tea, but there is plenty more in warehouses.

Tea sales in grocery spiked as consumers rushed to stock up ahead of lockdowns in the US, Canada, and the UK. Sales in the UK the week of March 21 rose 55% compared to the previous year, according to Nielsen market research.

Grocery shoppers in the UK, on average, spent an additional $80 (£62.92) stocking up during March.

In the US, market information provider IRI in Chicago reports an 11% increase in year-to-date in sales of packaged tea in multi outlets (including grocery and convenience stores). Dollar sales of instant tea mixes rose 12%. Sales of refrigerated teas increased by 9.4%, and sales of refrigerated ready-to-drink coffee grew 23% year to date, compared to the same period in 2019. Coffee sales were up 8.2% to $2.6 billion through March 22.

Major brands, including Lipton, Tetley, Twinings, and PG Tips assured consumers confronting empty shelves that supplies were sufficient as grocery sales rose 20% to their highest level in a decade, according to Kantar Research. Herbals associated with improving immunity spiked as well with top sellers listing ingredients such as echinacea, ginger, ginseng, and lemon and honey.

Production Declines 

Plucking resumed Monday April 13 in Darjeeling on government orders limiting the workforce to 25% of normal. A large factory like Thurbo, one of the Goodricke Group, employs 400 but can operate with 100 staff by reducing the number of processing lines. Processing capacity makes it possible to resume plucking the valuable first flush leaves.

Financial analysts at ICRA estimate India’s tea industry will experience a decline of 90 million kilos in 2020. The estimate assumes 45-50 million fewer kilos of tea from plantations and 45 million fewer kilos from smallholders. Annual tea production will decline 6-7% in Assam and West Bengal and another 5-6% in South India. Bought-leaf factories remain closed.

ICRA estimates that the earliest tea estates could start production would be around the third week of April, given the present situation, according to The Economic Times. The government permitted plantations to resume harvesting this week, but mandates staffing at no more than half previous levels. Social distancing and health precautions are to be enforced. Since the lockdown, now in its third week, weeds are encroaching, pest counts are high, and a light pruning is needed before plucking resumes. These actions will add INRs15 per kilo to the cost of production, according to ICRA, noting: “Any decline in production in the second flush teas would result in a substantially higher cost per kilo.” In India, labor expense accounts for 65-70% of the cost of production.

Kenya saw exports decline by 4 million kilos in February to 40.5 million kilos compared to February 2019 totals, according to the Agriculture and Food Authority. Disruptions in the auction at Mombasa are to blame as the weather is excellent with moderate temperatures and favorable rainfall in the western and rift valleys. The harvest increased to 49.2 million kilos compared to 31.4 million kilos during the same period last year. Smallholders contributed 19 million kilos to the total. Prices at Mombasa were down, averaging $2.13 per kilo compared to an average price of $2.16 per kilo in February 2019.

Curfews in Sri Lanka temporarily stopped tea production in March. Plantations Minister Ramesh Pathirana said the nation’s tea plantations would be allowed to continue operations so long as they adhere to guidelines set by the Health Ministry. To facilitate transactions, the Ceylon Tea Traders Association has switched to online auctions after 137 years of outcry bidding. Banks and the government departments regulating food safety and trade that are essential to export are now open three days a week but operated by half their usual staff.

In Vietnam, first-quarter tea exports declined 2.4% in volume and lost 19% in value compared to the previous year. Shipments to China, Taiwan, and Russia, were virtually halted. The US is one of the top five destinations that together account for 75% of Vietnamese tea. Prices declined 13.5% to $37 million in February, averaging $1.48 per kilo, according to the Vietnam Tea Association. Trading partners are asking for lower prices, delayed delivery, and even canceling contracts, according to the association.

Health Misinformation

Physicians strongly disclaim a post stating that drinking tea is an effective cure for COVID-19, the disease caused by the newly discovered coronavirus. The World Health Organization (WHO) in March declared there is no known cure for COVID-19. “To date, there is no vaccine and no specific antiviral medicine to prevent or treat COVID-2019,” according to WHO. The post, incorrectly attributed to CNN, appeared on WhatsApp and Facebook and was widely shared. The report did not appear on CNN. “While tea may strengthen immunity, there is no “research” indicating benefits for COVID-19 patients,” according to Dr. Jayaruwan Bandara, director of the Sri Lanka Medical Research Institute, as reported by AFP in a Fact Check published March 26.

“News reports in China in February also picked up on the claim that tea could be used to stop the virus but said it was not true,” according to the BBC News Reality Check.

Related…

Sri Lanka is promoting black tea as an immunity booster, and India may soon follow.

Citing a study by the Tea Research Association (TRA) that Ceylon tea contains high levels of theaflavin, Sri Lanka initiated an advertising campaign claiming that ‘Ceylon Black Tea’ enhances COVID-19 immunity. TRA maintains that theaflavin, the main polyphenol in black tea, boosts immunity based on studies published in medical journals

A 2003 experiment involving 21 volunteers by Dr. Jack Bukowski at Harvard Medical School showed that immune system blood cells from tea drinkers responded five times faster to germs than did the blood cells of a control group. Bukowski explained that L-theanine is broken down in the liver to ethylamine, a molecule that primes the response of an immune system element called the gamma-delta T cell.

“We know from other studies that these gamma-delta T cells in the blood are the first line of defense against many types of bacteria, viral, fungal, and parasitic infections,” he said. In 2007 Bukowski demonstrated that drinking five cups of tea daily increased the body’s ability to ward off colds and flu. His work appeared in The Journal of the American College Of Nutrition

The United Planters Association of South India (UPASI) Tea Research Foundation is compiling a brief to convince the Tea Board of India to follow Sri Lanka’s lead in promoting tea as a wellness drink.

Tea Board Chairman PK Bezbaruah told the Hindu Businessline, “Indian teas, particularly Assam and the South Indian teas, have a very high proportion of the Theaflavin compound and hence should ideally be more effective.”

“I think this can help push exports, particularly at a time when the output is expected to be at least 15% lower this year,” Bezbaruah said.

Skipping Port

Shipping companies are bypassing Indian ports essential to the tea trade. Container ships generally stop at one or two local ports to load cargo before traveling between continents. When containers are delayed in reaching port, ship captains have no reason to stop.

Canceling India’s tea auctions for two weeks to prevent the spread of the coronavirus set in motion a sequence leading to this unusual logistical snafu. Tea is exempt from transport restrictions, but shipments delayed at auction experienced further problems in transit as law enforcement agencies stopped trucks en route to ports. Exporters next experienced numerous cancellations of consignments following the collapse of retail demand in foodservice. New buyers are scarce, leading to acute cash flow problems that subsequently hampered exporter’s ability to meet contracted delivery dates.

NEW PRODUCTS

Edible Beetroot & Parsnip tea


Edible Tea

Nim’s, a UK-based fruit crisp brand, recently introduced the first edible teas. These can be brewed or eaten as a snack. Nim’s located in Sittingbourne, produces air-dried snacks using beetroot and pineapple, kiwi and pineapple, and beetroot and parsnip. The tea sells for $6.25 (£5) for 12 sachets. Once the tea is steeped, you can enjoy the rehydrated fruit and vegetables “Drink, Eat and be Healthier.”

Arizona Iced Tea introduces Hard Tea with vodka

Vodka Tea

Arizona Iced Tea launched a 5% ABV ginseng and honey-flavored green tea blended with vodka. The new line is named Arizona Hard. The initial rollout in Canada features 473ml single tall cans or 12-ounce (355ml) six-packs. The suggested retail price is CAD$3.49 for the individual can. In Canada, spiked tea can be delivered to your home by food delivery services such as SkipTheDishes.

Need to Know

Tea industry news for the week of April 6

China’s tea harvest in full swing including Enshi, in pandemic stricken Hubei Province

Closely Monitor Tea Auctions

Tea auction houses are a choke point for black tea transactions globally. The routine flow of commercial grades of tea is in jeopardy as major tea auctions react to the pandemic. Twin threats loom, the first involves gatherings that ensure the safety of participants. The second is the logistics. India’s national lockdown was tragically timed to the onset of the first flush, which observers predict is lost.

The Colombo Tea Traders Association (CCTA) successfully conducted an all-digital auction – a first in 126 years of outcry” bidding. The pandemic shut down the auction temporarily, halted shipping, and closed factories engaged in processing, blending, and packaging tea. “The tea industry has since regained its composure and momentum, and all its operations are now gradually resuming full capacity islandwide,” according to CCTA. The e-auction runs April 4-6, with samples available for viewing online and for purchase remotely under the guidance of the Colombo Tea Brokers’ Association.

India’s Darjeeling growers earn 40% of their business during March and early April as first-flush teas are rushed to clients in Europe, Russia, Japan, and the US. Plucking had just commenced when India’s prime minister ordered a 21-day national lockdown on March 25. Tea bushes welcome spring with their best quality shoots, which amount to 25% of the crop by volume but bring an estimated $20 million (INRs150 crore), or roughly 40% of revenue. Lost sales are compounded by the fact that by April 15, when the lockdown is scheduled to end, trees will be overgrown, forcing a time-consuming and costly pruning. Darjeeling annually produces about 8 million kilos of tea. That will not be the case in 2020.

The financial losses Darjeeling faces led the Union Home Ministry on April 3 to amend its workforce order to permit gardens to operate with up to half their workers if they enforce social distancing. However, few seem willing to operate processing factories, bought-leaf factories are closed to smallholders, and workers’ unions in West Bengal and Assam strenuously oppose returning to work due to the contagion and limited healthcare. North Bengal accounts for a quarter of India’s 1.3 billion kilo harvest.

Tea Retail

India’s street corner chaiwallahs and tea stand vendors operate without inventory or cash reserves. In the past three weeks, the steady business of supplying office workers has disappeared along with crowded trains and bus stations. At 20 rupees per cup, these workers earn less than $1.50 per day after expenses.

The approximately 1600 US tea shops in all but eight states where residents are now under orders to stay at home, are experiencing dramatic declines in foot traffic. It is hard to profit from small transactions, so Emma’s Tea Spot in Baltimore promoted its curbside pickup and delivery by offering staples as incentives. These include eggs, bread, and toilet paper. Orders are mainly by phone with payment prior to pickup or delivery. No employees come into contact with customers since orders are placed in a sanitized pickup area outside the building.

China Harvest Underway

Saturday (April 4) marked the opening day of the tea harvest in China. Qingming celebrations, which involve traveling to the ancestral homes of urban Chinese, are subdued in many parts of the country this year as more than 3,000 perished amid 83,000 confirmed cases of COVID-19.

Tea harvests in Zhejiang and Anhui Province are in full swing. Harvesting is underway but delayed in Hubei, which is the third-largest producing province and the center of the pandemic.

Yunnan continues to experience a severe drought. Chinese authorities say 1.14 million of the province’s 47 million residents are experiencing difficulties accessing drinking water, along with a quarter of a million head of livestock. Crops covering 180,000 hectares are drought damaged according to the provincial water conservancy department. “At present, 78 rivers in Yunnan have been cut off, 115 reservoirs have dried up, and 99 irrigation wells have an insufficient water supply,” according to a report published by Xinhua News Service.

UPCOMING EVENTS

The European Tea Society is hosting a free webinar on How Pandemics and Climate Change are Affecting the Tea Trade.

On Wednesday, April 8 Elyse Petersen, founder of www.tealet.com, is presetting on Covid19 and how this is impacting working directly with growers. The European Tea Society opened this webinar to anyone.  The webinar begins at 2 p.m. EST.  Here is the link:  https://www.europeanteasociety.org/events/2020/4/8/members-webinar-elyse-petersen-working-directly-with-growers-how-pandemics-and-climate-change-are-affecting-tea-trade.  

The World Health Organization was founded on April 7, 1948. This agency of the United Nations is commemorating the work of nurses and midwives on World Health Day, Tuesday.

Retail Impact of COVID-19 is Devastating for Tea and Coffee Shops in China and Italy

Survey finds 75% of Chinese tea and coffee shops closed at the height of the coronavirus epidemic.

Statistics compiled from a survey of retailers following China’s unprecedented lockdown of 700 million people reveal that while international chains like Starbucks and Costa and big national chains, including Ten Ren and Luckin, experienced severe financial setbacks, independent tea and coffee shops suffered mortal blows.

Now that the contagion has spread to Italy, shop owners are taking a hit comparable to their Chinese counterparts.

“Being in the “orange” zone we’ve seen the downtown area of Milan losing its fabric, most people (not all, fortunately) are just not going out and are avoiding close contacts with others (i.e., any crowded area) We’re currently recording a drop of 40% to 50% both in the store and the tearoom. We’ve adopted the sanitary ordinances that set a “safety perimeter” of one-meter minimum distance from others and have had to cancel all planned events and tea seminars,” writes a veteran shop owner who established his specialty tea business in 2008.

In China, a Kamen survey of 2,000 shop owners, those with ten shops or less, revealed that 75% of the stores closed during the epidemic. Closures were due to policy prohibitions (primarily in Hubei Province) and concerns about personnel safety as well as the absence of foot traffic.

Globally there were 98,000 confirmed cases and 3,347 deaths, including 148 in Italy. The death count in Hubei Province is 3,000, with 23,972 of the 67,466 confirmed cases still in the hospital.

Revenue, compared to the same period in the previous year, declined to zero at 65.9% of the shops surveyed. Business declined 50% to 80% at 19% of the shops. Asked to evaluate the loss, 65.93% of shop operators said the event was devastating, with 30.97% saying the impact is controllable. Only 3.1% reported minimal impact. The Chinese government has announced subsidies, low-interest loans, and relief from taxes for retailers in the vicinity of Wuhan.

Starbucks announced this week that 85% of its shops in China have reopened. In a letter to the U.S. Securities and Exchange Commission, Starbucks estimated losses of $430 million from the closure of half of its Chinese shops.

Morocco Hoards Chinese Tea

Fearful of the impact on shipments of green tea imports, Morocco is hoarding tea. The president of the Moroccan association of tea and coffee manufacturers (AMITC), Mohamed Astaib, announced that Morocco had imported enough tea to last six months as a preventive measure. Logistics is partly to blame as hundreds of thousands of containers stacked up at China’s 34 ports.

In an article published by the China Media Times Tea Weekly Yu Lu, vice president of the China Chamber of Commerce of Import and Export of Foodstuffs, Native Produce and Animal By-Products (CFNA) said that Morocco, China’s largest trading partner, implemented stringent standards for pesticide residue for 60 chemicals. As a result, sales decreased by 4.2%.

Moroccans consume 70,000 metric tons of tea annually, making it the 9th largest tea importer in the world.

London’s Fortnum & Mason Markets Children’s Herbals

The tea floor at Fortnum & Mason in London’s high street is stocked exclusively with tea sourced globally. In first for the company, it will now sell a non-caffeinated children’s tea in four flavors.

The Small & Wild brand, blended by two millennial-aged mothers, launched two years ago. The teas are ethically sourced, sugar-free blends of natural herbs and fruit.

The decision follows a U.K. consumer shift to tisanes, which are growing in popularity. Hardly stodgy, the fabled tea company reaped a windfall last year on sales of a bottled sparkling tea.

Teatime for Rampaging Vikings

Fans of the widely acclaimed television series Vikings gave a nod of understanding with word that researchers attribute the Viking’s barbarian behavior to a hallucinogenic herbal tea. Warriors high on a brew of stinking henbane amd alcohol experienced less pain, according to Karsten Fatur, an ethnobotanist at the University of Ljbuljana in Slovenia. Fatur speculates that ingesting this tea before battle led 9th century Norse Berserkergang “berserkers” to howl like beasts as they rushed wildly into battle wearing animal skins and little armor. Unchecked aggression, unpredictability, and dissociative effects, such as losing touch with reality, might have allowed them to kill indiscriminately without moral qualms, writes Fatur.

Coronavirus Presents Logistical Challenges for China's Tea Harvest

Coronavirus Presents Logistical Challenges for China's Tea Harvest

The coronavirus outbreak is causing logistical havoc in advance of the world’s most valuable tea harvest.

“All parts of the country (except Hubei Province) are gradually returning to work and production under the guidance of the tea district government,” writes Tea Weekly.

Hubei Province, an important producing region, remains under lockdown with 2,500 (2,467) deaths, and 80,000 (78,914) confirmed cases of the fast-spreading epidemic centered in the city of Wuhan.

“China is reeling from the outbreak of novel coronavirus-caused pneumonia,” according to Cai Jun, secretary general of tea with the China Chamber of Commerce of Import and Export of Foodstuffs, Native Produce and Animal By-Products (CFNA). CFNA is an influential trade association that operates under the supervision of China’s Ministry of Commerce.

Setbacks are not due to illness or deaths of tea garden workers; it is the result of a national effort to limit travel, close factories, ban public gatherings and shutdown bus, train, air, and subways to prevent the virus from spreading.

“As far as I know, Chinese tea people are all safe and sound, which indicates that drinking tea helps to strengthen immunity,” writes Mr. Cai.

China’s tea industry saw this coming, according to tea retailer Austin Hodge, founder of Seven Cups Fine Chinese Tea in Tucson, Ariz. Hodge, who imports tea direct from China, recalls the SARS epidemic in 2003. The Chinese learned valuable lessons from that outbreak, which killed 774 globally.

“No tea is going to waste. They are not plucking if they cannot process,” explains Hodge, who praised the Chinese for “making all the necessary adjustments.”

“In rural tea country, the real issue isn’t the virus; it’s the lockdown and logistics. Everybody is local. They don’t have to travel anywhere,” he said.

He expects his first tea of the year to arrive on schedule in a week or two.

Procedures at China’s largest tea company factory in Erhai are typical. The plant resumed operations Feb. 13 as 700 workers were screened for fever, completed and signed a personal health commitment promising to wear masks, disinfect their hands and periodically visit one of six health test points. Upon entering the factory, they scanned the “Yunnan Epidemic Prevention” QR code with their cell phones, activating a cell phone (WeChat mini app) that tracks their movement and warns employers if they have encountered someone who has come down with the virus.

Effective Feb. 11, all Yunnan residents must scan a QR code to enter and exit public places, including residential complexes, markets, malls, hospitals, and public transit hubs. “No name, ID or other content is stored,” and Yunnan promises to destroy the tracking data once the virus is contained.

A factory manager estimated the increased security reduced productivity by 10%.

In the southern-most tea gardens where the harvest is just beginning, those who prune and pluck tea are required to wear masks and are not permitted to form groups. They must keep a minimum distance of 10 feet apart while working.

The China Tea Circulation Association reports that specialty harvests began Feb. 10 in Gaoxian in Sichuan and on Feb. 20 in southern Zhejiang (Wenzhou and Lishui).

“Under the epidemic situation, while doing a good job of prevention and control, multiple tea-producing areas and companies across the country have also organized tea farmers to start the first batch of 2020 spring tea picking,” according to the association.

“We’re not in picking season yet, so the virus hasn’t had much effect on the tea production and international trade. Although it does affect the sales, it’s overall manageable,” writes Mr. Cai.

Retail Impact

Grocery stores and supermarkets remain open, and food and beverage delivery are permitted, but the lockdown has cut foot traffic at China’s premier tea malls to a fraction of normal.

“When most tea markets are not open, companies are encouraged to sell online and micro-businesses,” advises the Agriculture and Rural Bureau of Yuzhou District as reported on the Sichuan News Network. Production of Chuancha in Yuzhou is projected at 1,800 metric tons valued at more than $42.5 million (RMB300 million).

More than 500 million Chinese drink approximately 1.9 million metric tons of tea annually, according to the China Tea Marketing Association. The domestic tea market is valued at $18 billion.

During the crisis, overall retail sales are being stripped of $144 billion a week, according to China’s Evergrande Think Tank (as reported by Forbes).

The impact thus far is most significant in congested urban areas. Every province, including Tibet, has reported cases of Covid-19, but tea regions were spared the initial brunt of the epidemic. Hubei reported 64,084 cases and 2,346 deaths.

Enshi tea producers are the closest hot spot, about 500 kilometers west of Wuhan. Plucking generally commences March 15 on Wufeng Mountain. Enshi is a green tea region, one of the few that specializes in steamed green teas. Train and bus service was suspended in January, all 70,000 cinemas in the province were closed, and public gatherings were forbidden. Only grocery stores, gas stations, drug stores, and hospitals are operating.

Here is a sample of the impact in China’s tea producing regions as of February 25: Henan, 1,271 cases, 19 deaths; Guangdong 1,347 cases, 7 deaths; Hainan 168 cases, 5 deaths; Anhui 989 cases and 6 deaths; Zhejiang reported 1,205 cases with 1 death; Jiangxi 934 cases, 1 death, Fujian reported 294 cases with 1 death, Guangxi has 252 cases with 2 deaths, Yunnan reported 174 cases with 2 deaths. (Image credit: Johns Hopkins University)

Johns Hopkins is tracking cases globally.

Generally speaking, the spread of Covid-19 in tea growing areas is slow, and infections in neighborhoods and local outbreaks are comparatively rare. Covid-19 cases in other places such as Enshi and Shennongjia are still attributed to imported cases, and the risk of spread is relatively low,” according to Epidemiologist Dr. Liang Wannian, Beijing’s health chief. His responses to questions from reporters were posted by the State Council of Information Office in Beijing.

How Bad Could It Get?

In addition to tea and coffee, Yunnan is one of the most important growing regions for cut flowers. Harvesting flowers is time-sensitive, and Valentine’s Day represents a significant but fleeting business opportunity.

Fresh-cut flowers from Yunnan are exported to 46 countries and makeup 70% of domestic market share in China’s major cities. Growers earn $64,000 (RMB450,000) per hectare on average selling flowers for $0.20 (RMB1.43) per bloom.

This year the timing could not have been worse, resulting in big losses due to a critical break in the supply chain as trucks, trains, and flights were suspended.

The magnitude of the problem became evident in early February at the Dounan Flower Market in Kunming. Dounan is the largest fresh-cut flower market in Asia. During the period Jan 27 to Feb 5, trade volume in the market slumped 95% to $61,355 (RMB431,500). Sales were 4.78% percent compared to the same period in 2019. Dounan sold 6.53 billion cut flowers valued at RMB5.4 billion last year.

This was compounded by the fact that 50 million consumers were confined to their homes in the Wuhan region and that offices nationwide were closed for as long as two weeks beyond the traditional spring festival travel holiday. The auction was shut down for several days, re-opening Feb. 10.

One-third of Yunnan’s annual cut-flower revenue is earned in February, according to Wang Jihua, deputy director of the Yunnan Provincial Academy of Agricultural Sciences. Mr. Wang estimates that the loss of Yunnan’s flower industry, including supporting industries such as logistics, during the special period will reach RMB3 to RMB5 billion ($425,000 to $715,000).”

Transport options were cut by 90% during the height of the lockdown and are only now being restored. Roadblocks prevented entire villages from access to larger cities and towns. Tea faces a less critical timeline―processing must begin within four hours once leaves are plucked―but the logistics of transportation are the same.

Phil Orlando, Chief Equity Market Strategist and Head of Client Portfolio Management at Federated Investors, told Bloomberg Newsweek the world’s stock markets had not indicated the true impact on trade. “In my humble opinion, it will be bigger than people think,” he said.

Orlando was proved correct Feb. 25 when stock markets globally suffered steep declines.

Looking Ahead

The last three weeks of February were the first in which the number of patients cured of the disease outnumbers those who contracted Covid-19. It is too soon to declare an end to the crisis, but progress is evident.

“The epidemic is under effective control due to the Chinese government’s prevention and control measures,” writes Mr. Cai. During the lockdown, “most people work from home except those who work in the sectors responsible for the supply of the necessities. We have full confidence and capability to win this fight against the epidemic,” he said.

Mr. Cai said that China’s major tea companies “have shown a dedication to fighting this virus by donating money and necessary supplies to those affected areas.” CFNA was forced to postpone three tea conferences scheduled for March, and several tea fairs, including the spring edition of the Global Tea Fair, are being rescheduled.

Sources: Bloomberg Newsweek, China State Council of Information Office, Xinhua, Tea Weekly

Tea Growing Regions in China

China’s Four Tea Growing Regions

China’s 80 million rural tea laborers annually produce 2.56 million metric tonnes of mainly green tea on 3 million hectares of land. Their effort results in half of the world’s annual tea production of 5.2 million metric tons.

Domestic sales by volume are mainly of green tea, but many localities, including Quimen, Fuzhou, Wuyi, and Fuding (in Fujian province) and Pu’er in Yunnan Province, specialize in the production of high-value oolong, white, jasmine, black, and post-fermented teas.

The China Tea Marketing Association estimates 63.1% of domestic sales are from green tea; Pu’er teas represent 14% of sales; oolong represents 11.1%; black tea accounts for 9.9% of sales and white tea for 1.5% with yellow tea estimated at 0.4% in 2018. The Chinese will drink 670,000 metric tonnes of tea in 2020, for which they will spend $18 billion.

Tea plantation acreage has grown substantially since 2006 with most new plantings south of the Yangtze River valley in Guizhou, Yunnan, Sichuan, and Hubei provinces—the four best-known tea growing regions.

Jiangnan

Tea grown south of the Yangtze river spans several provinces.  It is called Jiangnan and includes Zhejiang, Jiangxi, portions of Anhui, and Hunan provinces. It is the largest tea producing region by volume. Hubei province is split with Wuhan north of the Yangtze and Enshi, south of the river near the Wufeng Mountains. Wuhan is 850 kilometers inland from Shanghai, which is at the mouth of the Yangtze.

Jiangbei

Tea grown north of the Yangtze (Jiangbei) spans Henan, Shandong and northern Anhui. Jiangbei is China’s smallest tea growing region.

Huanan

South China is known as the Huanan growing region. This superior tea growing region spans coastal Fujian, Guangxi, and Hainan island. Fujian is the most important tea producing province by value.

Xinan

Tea in Southwestern China within the Xinan region is grown in Guizhou, Yunnan, and Sichuan provinces. The earliest teas are plucked in late February in the semi-tropical portions of this zone bordering Vietnam, Laos, and Myanmar.

Darjeeling Silence is Deafening

Darjeeling Silence is Deafening

In West Bengal, India massive crowds are pressing for Gorkhaland statehood

Internet service in the Darjeeling Hills was disabled June 19 and service providers remain under orders not to allow online communication through July 25. The order is a security precaution to pre-empt organizers from coordinating protests throughout the region from Siliguri to Sikkim and north to the border with Nepal.

DARJEELING, West Bengal

Residents near the Sadar police station in Darjeeling normally file 30 complaints a day, mostly for petty crimes. Not a single complaint has been filed since June 9, shortly after hundreds of thousands of Gorkha began a strike for statehood now in its 33rd day.

Residents are keeping their distance from local police and riot-clad members of the Central Reserve Police Force (CRPF) following weeks of unrest in which seven people have died and hundreds more, including police, were seriously injured. Heavily armed CRPF were deployed to Darjeeling, Kalimpong, and Sonada on July 14. There are 11 CRPF companies now in place in the region but they are not under siege. In most cities, police stand watch over peaceful gatherings.

Headlines worldwide portrayed the violence with a reminder of the 1,200 killed during similar uprisings from 1986 to 1988.

Residents describe a different story.

Allan Rai is a 20-year-old studying tea management. He asked that his location and personal details remain private at this time.

The protests are orderly and residents are determined to prevail, he writes.

“On reading your recent article as well as sharing it with a few of my companions, we felt that the information you were provided was quite biased and portrayed only one side of the story,” writes Rai.

The article he is referring to appeared in World Tea News under the headline: Darjeeling Uproar Disrupts Tea Operations.

He counters with these points supporting the Gorkha protest:

  • Firstly, the ongoing movement is a mass movement not adhering to any political party. The common people of the entire region are supporting the demand for a separate state irrespective of their caste, creed, religion, and other differential status. The Gorkhas from different parts of India as well as those across the world have come in support for Gorkhaland.
  • With regards to the strike being held off for 12 hours on the auspicious occasion of Eid, our Muslim brothers and sisters are in solidarity for our demand for Gorkhaland and were willing to continue with the strike even on the day of their festival.
  • Approximately 70% of people in Darjeeling and adjoining areas of Doars depend on income from tea plantations directly or indirectly. In almost all the tea factories, 99% of the workers are the natives i.e., the Gorkhas. A separate state is the aspiration of each individual worker in these factories.
  • Tea workers were protesting for the minimum wage act, which has not been implemented in Darjeeling and Dooars. The Gorkhaland movement began stirring among tea workers who fully support the movement for a separate state. They even carry their lunch from home and actively participate in the rallies every day.
  • The movement would not have gained such vast momentum if it were not for social media. Not only the Gorkhas, but people from other communities in India and from several parts around the globe are in solidarity for the cause of Gorkhaland.
  • Gorkhaland is not a separatist movement, unlike Kashmir where they are demanding a separation from the nation entirely. Our movement is for a separate state within the Indian nation for the cause of our IDENTITY and DIGNITY that has been denied to us for the past 110 years.
  • The movement here is rather democratic and apolitical. The only visible violence is the atrocities committed by the Bengal Government by ordering forces to charge and fire bullets at peaceful protestors in broad daylight.
  • The violence on June 17 that claimed four innocent lives was due to a clash between the protestors and the armed forces. This was because on previous days these armed forces charged women and elders who were peacefully protesting. On June 16 police raided the house of the Gorkhaland Territorial Administration (GTA) chief. The media flashed that they found weapons and explosives when all that they found was an archery kit that was for training school children, agricultural tools and other traditional weapons along with two cartons of fire crackers. The media termed these “weapons and explosives.” This led to a massive rally in Darjeeling. When the armed forces tried to intervene, it led to a clash and resulted in the death of the four martyrs.

Gorkha tea worker in Darjeeling

The Current Situation

Each day thousands of tea workers from the fields join city residents at a now-familiar 10 a.m. gathering at the historic Darjeeling train station. They rally, tour the city along Mall Road and end their protest at Chowk Bazar. Some groups chant in front of the magistrate’s office. Groups of 500 to 2,000 listen as speakers from the organizing bodies address the crowd for about an hour before dispersing.

There is nothing much else for locals to do. The tea gardens are closed, the factories idle. The tourists are too scared to stay, schools are closed, outdoor sporting events canceled. Restaurants, pubs, shops, and grocers as well as banks and ATMs are locked to prevent looting, according to the Times of India.

Residents report that each day you see the same faces whether the march is for the GJM (Gorkha Janmukti Morcha), the GNLF (Gorkha National Liberation Front), the ABGL (Akhil Bharatiya Gorkha League) or the CPRM (Communist Party of Revolutionary Marxists). All support the effort to establish Gorkhaland, a state carved from the upper reaches of West Bengal.

The scene is familiar to travelers. In January in Chennai tens of thousands of protestors expressed their outrage over the ban of a traditional bull-taming contest known as jallikattu. The sport was continued.

Five years ago, thousands in Darjeeling took to the streets to peacefully protest the expansion of 50 Wal-Mart locations across India. I missed a flight to Kolkata due to the resulting congestion in every village along the 60-mile road to Bagdogra Airport.  There are many names for the protests which draw the people of India into the streets carrying signs and chanting. Nationwide a cessation of work is know as a hartal. Locally these strikes are called anishchitkal bandh (indefinite strike).

One key difference is the interruption of the internet, which has choked off contact with the Gorkha. The Hindu reports this decision has led to widespread resentment, which is being tapped into by the movement. On Monday the GJM marched to the magistrate’s office demanding that internet service be restored.

Peaceful street protests

Dangerous Precedent

“This movement is not a sudden, it has been prevalent for 110 years, however, it was highly voiced out during the year 1986 under the leadership of late Subash Ghising,” writes Allan Rai.

“During the ongoing agitation in those days my father was among the activists for the cause of Gorkhaland. The movement turned out to be violent, killing 1,200 innocent civilians as well as injuring many. Despite this violence the demand for Gorkhaland was not fulfilled,” he writes.

“Instead they settled with the Darjeeling Gorkha Hill Council (DGHC), a semi-autonomous body to look after the administration in the hills. This granting of autonomy led the masses to believe that now the hills would see better administration and development,” reports Rai.

Here is an excerpt from my upbeat report at the time:

“A new territory was carved from West Bengal’s Darjeeling district but India rejected demands for a separate state. The Gorkhaland Territorial Administration (GTA) will have powers to manage public works, social welfare, health and forests and agriculture including valued tea gardens. Existing land records will be transferred to the authority

“The agreement will end the violence in the hills of Darjeeling and pave the way for development,” newly elected West Bengal Chief Minister Mamata Banerjee told the crowd of joyous Gorkhas gathered in the village of Pintail. She praised the signing as historic. “There is nothing to fear… Bengal is not being divided. Darjeeling is close to our heart,” she said.

“There will be an elected local body, there will be schools, colleges, hospitals, jobs will be available and Darjeeling will shine,” said Banerjee who shared her vision of Switzerland as a model.

Autonomous Region Fails

“The autonomy status was just a farce and the state still continued to intervene and rule over the region, depriving it of the development it deserved,” according to Rai. “I’ve been well acquainted with this movement. Since I was a child, I heard stories about the agitation of 1986, which our loving elders referred to as the most devastating “chyassi ko andolan” one of the biggest and most violent movement in the history of Gorkhaland,” he continues.

Protests soon resumed, often involving garden workers, with frequent strikes disrupting tea production and reducing productivity.

Tensions are greater now than at anytime since the bloodshed of the 1980s.

“The agitation which has been going on for over one month will turn terrible and it will be a decisive battle for our independence,” GJM Chief Bimal Gurung told reporters Saturday night. “If I need to shed my blood I am ready to do that, but the fight will go on till Gorkhaland is achieved,” Gurung said.

So, Why Gorkhaland?

“Darjeeling tea is our pride and our heritage,” writes Rai. “It has been one of the world’s leading brands of tea. However, the tea plantations and factories in the region do not flourish or prosper to their full potential due to several reasons, one of them being inequitable distribution of monetary resource. The revenue collected from the Darjeeling tea does not return to those who produce it. Thus, there is not much monetary support to maintain the factories and the wages of the workers are very low compared to the wages of workers in other states of our country,” he writes.

“Workers are provided with facilities such as PF, Pensions that do not even amount to $15.50 (INRs1000) per month and medical facilities that are mentioned in the documents for name sake as there are no medical units or hospitals. Owing to these factors many factories in the region have been shut down. This has led to widespread unemployment resulting in deaths due to starvation as well as depression,” he said.

“When visiting tea estates, people usually meet the owners and managers of these estates. This leads them to understand only the owner’s or the manager’s point of view regarding the estates. However, they often fail to consider the daily wage workers of the estate and fail to understand or even consider the terms or the conditions in which they work to earn their minimal standard of living.

I’m sure when people drink our Darjeeling tea they sip it in delight but has anyone thought about the condition of the old lady in the garden who plucked those luscious leaves with her delicate hands? Or the ever-smiling man who turns these tea leaves into an aromatic sipping delight? Has anyone thought that even under these extreme and crucial conditions these simple workers do not fail to do their job and supply us with our world-famous brand of tea?

“The people of this region are very hardworking and generous, they work 8 hours a day for a meager amount of $2 (INRs130) per day. These workers are living in such harsh conditions yet has anyone even bothered to think about them? These are the things that one must ponder upon to realize the potential that the tea plantations will reach, if, a separate state is formed,” he concludes.

Sources: World Tea News, The Hindu, Indian Express

Next, Gorkhas speak in support of their cause:

Anjana Gurung
Anmol Gurung

Never at a loss for words…

Never at a loss for words…

Tea Journey Magazine was funded at dawn by more than 560 backers who contributed $128,000 during the past 60 days…

To our backers around the world:

Those who know me well, know that I’m never at a loss for words… until now.

Tea Journey was funded at dawn — fittingly by donations from tea lovers on the other side of the world in China and Australia as their day was winding down.

I fell asleep at 5am and awakened to the news with tears of joy…. and relief.

Today is DAY ONE. We can now get on with the joyous task of producing the world’s first truly global, truly collaborative magazine for tea lovers. Its creation demonstrates a rare ability to bridge borders and cultures, to share the stories of the tea lands that introduce growers and artisans to the millions who cherish their labor of love.

You can expect the inaugural issue and both the iOS and Android apps to be ready by the end of the month.

On behalf of the Tea Journey partners and advisors, writers and editors.

Thank you.

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WINNIPEG, Canada

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Where do the most recent Tea Journey backers live? Here are their names and the home countries of some of the final 50 donors who contributed to the campaign:

Gordon Zhang, China | Margaret Cusak, Australia |Roquen Lómë, Prague Czech Republic | Marc-André Rivet, Montreal, Canada | Richard Tao, US | Jesse Örö, Finland | Debbie Forlanski, Canada | Goh Cheng Fai, Hong Kong | Danny Moortgat, Belgium | Scott Svihula, Florida | Nancy Cocianchi, Argentina | Nigel Melican, UK | Sabine Jürgenmeier, Germany | Wouter Verelst, Malawi | Ernestas Klevas, Frederiksberg, Denmark | Stefano Grassi, Italy |

There is power in this venture that speaks to community more than cash…

The other day, inspired by Jennifer English, the @urbanmommies hosted an online fundraiser for Tea Journey that resulted in nearly 300,000 direct contacts and 5 million social impressions on Twitter and greatest single-day tally of subscribers during the campaign.

The entire world is thirsty for tea knowledge. While the US is home to the largest number of backers, Canada, I’m proud to say, has the largest concentration of subscribers. Tea drinking UK is exploring more diverse teas as are India and Australia. Those in China and Taiwan and Asian tea lands are next, not for lack of knowledge but out of a desire to better understand the markets where they send their precious tea. Gourmands in Western Europe (Germany-France-Benelux) placed their countries high on the list. There are South American fans from seven countries (Argentina tops the list followed by Brazil where out of the goodness of their hearts tea lovers Victoria Bosogno (Spanish) and Kelly Stein (Portuguese) translated and then forwarded the Tea Journey message). Those from tea lands in Africa (including the Middle East) follow. Backers hail from CIS and the Czech Republic, from Mexico and the Caribbean islands and even Iceland where Frank Woolny was the ninth backer to contribute.

The first? That was Peter Wilson, who inspired us with these words:

“…with every tea I taste, and every word I read, I sink deeper into such a joyful state of being that I want to keep going and going. It’s a bit challenging sometimes to find good information about tea in the west, so when I learned of this magazine, not only did I decide that I would contribute, I set my alarm for 12am the morning that the Kickstarter campaign opened, in the hope that I could say I was first to contribute! I’ve told all of my friends, and I’ve also sent letters to all of my favorite tea suppliers (like Harney, DAVIDsTEA, Tea Trekker, and Tea Source), asking them to consider supporting and encouraging more people to become enthusiasts like me. Thank you for all that you do, and best of luck with your magazine! I’m privileged to say that I support it, and I look forward to continuing my own tea journey.”

Backers believe passionately in our mission: Listed below are some of those who donated in the past week to put us over the top.

Mehmet Emin Akyuz, Stephan Baudet, Lorraine Collins, Shawn Geitner, Christopher Day, Peter Ericson, Amethyst Bussey, Nathan Hevenstone, John Alfone, Jaime Chartrand, Eva Lee, Mark O’Deady, Faye Lang, Guy Sirkes, Barbara Broido, Shari Bayer, Jen Piccotti, Joyce Maio, Najat Abdou, Pamela Tucker, Ruth Tobias, Laurence Wooding, Glen Knauer, Dominik Wittenberg, Sean Mates, Rick Ha, Margo Sparto, Raelene Gannon, Kaiting Zhou, David Bess, Brett Holmes, Ellie Chu, Rick Doten, Lisa Braithwaite, Cindy Beeman, Samantha Molineaux, Barb Goldstein, Linda Gaylard, Geena Matuson, Mark Nicholls, Dawn Hoffman, Jeffrey Lorien, Sophia Nadur, Michelle Rabin, Matt Jaffe, Bob Krul, Noah Van der Laan, Andre Gauthier, Rona Tison, Manuel Legault-Roy…

What powered this extraordinary event?

The generosity of Founding Sponsors:

Camellia Sinensis | Seven Cups Fine Chinese Teas | Young Mountain Tea | Craftea | Mad Monk | Misty Peak Teas | Jalam Teas| Tea Squared | Tealet | Australian Tea Masters | Adagio Teas | Nothing But Tea | Teatrade | Yunomi Tea | Firsd Tea | Smacha Tea Company | Hong China Tea | Teatulia | Lochan Tea Company | Mighty Leaf Tea Company | International Tea Importers | International Tea Masters Association | Rolling Leaf | El Club del Te | Rishi Tea | Tea Total | Teatrade Mart | TeaLula | The Green Teaist | World Tea Podcast | Tea Lifestyle | World Tea Academy | P&T – Paper & Tea GmbH | The Daily Tea | Wild Qi Tea | Tea Vivre | Conundrum Tea | Tea Cosmos | The Tea Emporium | Teas Etc | UK Tea Academy | Mary Cotterman | Royal Tea New York | ITO EN | JoJo Tea | G.S. Haly Co. | Hawaiian Rainforest Tea | 4 Track Tea | Ocha & Co | Hankook Tea | Eco-Cha |

(This is a partial list with more signing on daily through the end of World Tea Expo, June 15-17 in Las Vegas, drop by and see us at Booth 251. If your company is interested in becoming a Founding Sponsor email: dan.bolton@teajourney.pub, liz.eaton@teajourney.pub, hans.niebergall@teajourney.pub or suzette.hammond@teajourney.pub):

How many people support Tea Journey…

It’s an astronomical, gratifying, amazingly large number of people around the globe.

Google Analytics shows that TeaJourney.pub has attracted visitors from 85 countries. Literally every country in Western Europe where subscribers from UK and Germany lead; seven countries in South America, twelve countries in Africa, the Middle East, Turkey, Iran. India is home to the fourth largest number of subscribers There is great support for Tea Journey in Nepal and PakiMARKETING-KickstarterProjectsWeLovestan and Sri Lanka.

There are only four countries in all of Asia where tea lovers have have not visited the website… Iceland and the Caribbean Islands are represented. We love island people from the Azores and Madagascar and the Philippines to Indonesia, Malaysia, Australia and New Zealand. Frank Miller paved the way inThailand and Vietnam. A special shout to Kevin Gasgoyne and Jeff Fuchs in my beloved Canada. There are now 600+ paid subscribers and more than 10,000 names on our free newsletter list.

In thirty days, how can this be?

Let me share a quick story: On Thursday Tea Journey was invited to attend a blazingly fast and fun #TwitterParty hosted by @urbanmommies, an online community of mothers founded by Jill Amery. A TwitterParty is a moment-in-time chat room that afforded us an opportunity to share our love for tea and trivia with @urbanmommies. Jill made a special appeal to support our Kickstarter project in the closing days of the campaign.

Together the Tea Journey team generated hundreds of tweets that led to hundreds more re-tweets that encouraged thousands of tea lovers to echo their support — which mushroomed into hundreds of thousands of individual contacts.

That single one-hour event brought us to the attention of almost 300,000 individual members of the @urbanmommies online community and their friends and it generated 5 million impressions globally. It was the GENIUS-INSPIRED work of Jennifer English… executed with precision by the Tea Journey partners, writers and marketing staff.

Early in the week Jennifer English sent out a call that mobilized her friends to organize an online contest with prizes for participants. Marketing director Ashley Sostaric-Finkes and her marvelous social media assistant Alexandra Enns joined the stream with the help of contributing editors Nicole Martin, Dan Robertson and Jennifer Quail, and bloggers Rachael Carter and Geoffrey Norman; and contributors Elyse Petersen and tea companies including Seven Cups and A Gift of Tea, Scandalous Tea and Tea Wagon.

Together we shot a single bright beam in the night typing so fast we got lost in the moment. The resulting surge made Friday our single biggest day for paid subscribers.

There is still work to do. We have only three days and we are still $4,000 short of our goal. Backers have contributed more than $10,000 in the last 10 days.

Together we can do this.  The entire tea world is watching. Wednesday June 1 is the deadline. Click here to show your support.

Dan's Informal Signature_240px (Blue)

 

 

METRICS_GA_LocationMay29

Tea Journey: A Kickstarter “Project We Love”

Tea Journey: A Kickstarter “Project We Love”

MARKETING-KickstarterProjectsWeLove

Badges for Projects We Love

The Kickstarter Blog ·
To date, there have been more than 280,000 creative projects on Kickstarter — phew! Whether you’re a backer looking to find great ideas, or a creator looking for inspiration for your own project (or both), we want to help you find compelling ideas that are thoughtfully presented, exciting, and that bring communities together. With this in mind, we’re excited to introduce Projects We Love, a simple way for us to feature projects that go the extra mile.

MARKETING-KickstarterImageProjects We Love is an evolution of Staff Picks, a feature we used in the past to connect creators and backers around best-in-class projects. The difference is that Projects We Love automatically get a nice little badge, so that everyone can tell when we’re extra excited about a project. Projects We Love are featured by a team that works to surface extra-bright projects. They’re not paid endorsements, and like any other project, they retain complete creative independence. Most simply, a Project We Love badge is a show of respect and enthusiasm from us at Kickstarter.

Take a look at some existing Projects We Love, and you’ll see well-crafted videos, striking images, a clear plan, an excited community, and a lot of creativity. While there’s no recipe for making a Project We Love, we do have some tips on how to get featured. We also send out a newsletter every week featuring three Projects We Love — sign up to receive it, and you’ll be on your way to discovering world-class projects that delight and inspire.
Onwards and upwards!

Kickstarter
Reprinted from the Kickstarter Blog

Friends in Tea

Last week donors pledged $15,000 to bring Tea Journey to life.

As you read this note our total paid subscriptions will top 325 and our Kickstarter campaign will have reached nearly 30% of the final goal. There are now 30 days left in the campaign. Many Kickstarter ventures are fully funded in a 30-day window but we need to act quickly to draw attention to our “replenish rewards.”

We need to make the most of each day…

Founding sponsors have committed an additional 1,000 packets of tea and several new tea experience rewards totaling $20,000. This boosts the value of Tea Journey rewards to $95,000 USD (our current goal).

The word is getting out. We have 185 Kickstarter subscribers (and another 130 who subscribed direct from the website). They hail from Iceland and Indonesia to Eastern Europe, India, UK and New Zealand. Those who see the prototype tell us they love it.

The combination of support from bloggers, media and social media has brought us this far but reaching goal depends on peer-to-peer appeals to your friends in tea. Eighty-two percent of our Kickstarter donors are friends in tea. They are responding to short personal notes at a rate of 1% – that’s 5 per 500 notes sent.

A simple note is all it takes: 70% of millennials prefer a “peer” endorsement and rely on non-celebrity bloggers over the glitz and glam of stars. Only 3% of the 14,000 consumers surveyed by Collective Bias say they even consider buying a product endorsed by a celebrity.

The articles, images and video in Tea Journey are authentic, unvarnished, detailed and devoted to tea. Your note should be the same.

Do these five things and we will be celebrating our success on June 1.

1) Open a PayPay account and add $30 (for up to 500 names). GreenInbox only accepts PayPal payments.
2) Signup for GreenInbox.com (and select and upload either your Facebook friends, Twitter followers, Linkedin connections or email contact list). Click the check box beside the names of everyone you think will be interested in Tea Journey (up to 500).
3) Personalize the note below.
4) Click send.

If you are short of cash I will be happy to reimburse you…. better yet, send a note to dan@tea-biz.com with your Paypal email and I will send you $30 in advance.

I emailed 317 appeals this week and there were 60%+ opens resulting in several donors.

I know a lot of people but not nearly enough to reach the Kickstarter goal.

If you help us by doing this, I am convinced that together the tea community will reach the $96,000 goal but it needs to be done now…. send as many as you can as quickly as practical. It takes donors several days to evaluate the magazine. In many instances it takes appeals from three or four of you to tip the scale.

Tomorrow is too late.

Dan

SAMPLE LETTER

Dear (or Hello, or Hi) <first_name>

Tea Journey magazine presents authentic and elusive tea knowledge translated from publications in China and other tea lands. The mobile app and website is a collaboration between western tea journalists and tea experts to introduce readers to the world’s finest gardens and teas. Choose from these awesome tea rewards: https://www.kickstarter.com/projects/teajourney/tea-journey-magazine
I did!
Your Name

GreenInbox ADVICE

1) Focus the message on the recipient, not you.
2) Make the message positive
3) Keep the message short.
4) Include a clear call to action.
5) Do not use short links (like bit.ly)

Most email providers (like gmail) will mark your message as spam if it includes bit.ly, goo.gl, tinyurl etc. Moreover, better to use the full link since people like to know what’s the target web page. Using the full link will increase the number of people that actually click on it. https://www.kickstarter.com/projects/teajourney/tea-journey-magazine

Tea Journey

Tea Journey

Thirty Days

During the past decade I have met thousands of tea drinkers on a path of discovery, a journey to find the special teas that tantalize their sense of taste and reward them with tales of exotic terroir and artisanship so compelling they are eager to share.

I believe that there is a perfect tea for each of us and that finding that tea is the key to fully realizing the health and wellness tea brings.

But finding that tea and preparing it correctly requires knowledge not easily obtained.KICKSTARTER_Higishyama_360px

Ron Studd put it this way: “I have a strong feeling that there are many interested in getting to the next level with tea, but they don’t have a good way to get there specifically with knowledge.  I know that was a problem I had when I returned to the States.  You get people that say they’re enthusiasts, but when their depth of tea knowledge and practice is so shallow, it’s tough to find inspiration and encouragement that can only come from a wider community of other enthusiasts at or beyond your own knowledge.”

In the past year I assembled an awesome team of journalists and tea experts in the tea lands and their counterparts in the west dedicated to obtaining and sharing authentic, elusive and exclusive knowledge. We call our venture Tea Journey. It was christened by Tony Gebely and ratified by a group so passionate about tea I am humbled to stand as their leader.* Together we created something very special, a digital magazine available online, via iOS and Android and downloadable as a PDF.

KICKSTARTER_GlazedTeaCup2_360px

This mobile magazine features articles written in the tea lands by native-speaking writers. The articles are beautifully illustrated and there are informative videos that bring history to life and describe the amazing work that goes into creating tea:

YIXING POTTERY
https://youtu.be/mRu5xdcVRXs

CHIGUSA MEIBUTSU
https://animoto.com/play/5ddO72eWDl5RYi9oxotVxA

Click to view the prototype we created. I know you will find the content compelling. Then join us.

Three hundred enthusiasts already have invested $25,000 in making this Kickstarter project a reality.

MARKETING-TJ_SigArt_China_360pxRon Studd continues: “When reading the magazine articles, I kept thinking ‘this is exactly what I need!’ Even for topics that I may be familiar with, there’s so much effort that went into making the content intuitive and interesting that any level of enthusiast will enjoy.  It’s also just nice to know ‘I’m not the only one interested in this!’ ”

There are 30 days left in the campaign. Our goal is 1,000 paid subscribers. Those who donate receive their choice of amazing gifts of tea; tea experiences of a lifetime or splendid teaware.

Choose from hundreds of rewards valued at $95,000.

That’s what it will cost to launch Tea Journey. The deadline is June 1.

Are you in?

Dan's Informal Signature_240px (Blue)

If you already donated or subscribed, please share the news with your friends in tea by clicking the link below: https://www.teajourney.pub/social

KICKSTARTER CAMPAIGN
https://www.kickstarter.com/projects/teajourney/tea-journey-magazine

DOWNLOAD LATEST PROTOTYPE
https://www.teajourney.pub/tea-journey-prototype.pdf

PRESS COVERAGE: YAHOO FINANCE
http://finance.yahoo.com/news/tea-journey-magazine-announces-official-100000148.html

PRESS COVERAGE: WORLD TEA NEWS
http://worldteanews.com/news/tea-writers-plan-to-kickstart-global-magazine-for-premium-tea-drinkers

LATEST PRESS RELEASE
https://www.dropbox.com/s/g4b9fbdkh3cadwa/Tea%20Journey%20Kickstarter%20Launch%20Press%20Release%204-4-16%20extended%20version.docx?dl=0

SUBSCRIBE LINK / FOUNDING SPONSORS
https://www.teajourney.pub/subscribe

*The Tea Journey Team

Dan Bolton, Editor/Publisher
Nan Cui, Associate Publisher
Si Chen, Senior Editor
Hans Niebergall, Business Development
Ashley Sostaric-Finkes, Marketing Director
Suzette Hammond, Education Director
Beibei Lu, Art Director
Jennifer Sauer, Video Editor
Kathe Meseman, Finance Director
________________________________________
Contributing Editors

Ian Chun, Origins
Jennifer English,
Podcast
Jennifer Quail,
Teaware & Antiquities
Cynthia Gold,
Culinary Tea
Bruce Richardson,
Tea Retail
Dan Robertson,
Origins
Jennifer Sauer, 
Videography
Jennifer English,
Tea Journey Podcast
Cynthia Gold,
Tea Cuisine

________________________________________
Contributors

Stephen Carroll
Barbara Fairchild
Jeff Fuchs
Keith Horner
JT Hunter
Nicholas Lozito
Nicole Martin
Frank Miller
Katrina Munichiello
Hans Niebergall
Geoffrey Norman
Stephenie Overman
James Norwood Pratt
Dan Robertson
Felicia Stewart
Peter Surowski
Jason Walker
Nathan Wakeford
________________________________________
Advisors

Victoria Bisogno, El Club Del Te
Kevin Gascoyne,
Camellia Sinensis
Tony Gebely, World of Tea
Austin Hodge
, Seven Cups Fine Chinese Tea
Joshua Kaiser, Co-founder Rishi Organic Tea
Brian Keating, Sage Group
Bob Krul
, Boreal Wildcraft
Andrew McNeill, Seven Cups Fine Chinese Tea
Dr. Nada Milosavljevic
, Harvard Medical
Elyse Petersen, Tealet
Jane Pettigrew, UK Tea Academy
James Norwood Pratt, Tea Lovers Treasury
Dan Robertson, The Tea House

________________________________________
Founding Sponsors:
Camellia Sinensis | Seven Cups | Mighty Leaf | Mad Monk Tea | Tealet | CrafTea | Tea Squared | Jalam Teas | Misty Peak Tea | Tea Total | Yunomi Tea |Tetulia | Lochan Tea | Teatrade Mart | Rishi Organic Tea | Adagio Teas | World Tea Academy | Hong China Tea | Smacha | Young Mountain Tea | Nothing But Tea | Australian Tea Masters | ITI | Paper & Tea GmbH | International Tea Masters | Wild Tea Qi | The Green Teaist | El Club Del Te |  Rolling Leaf | World Tea Podcast | Tea Lula | Daily  Tea | Conundrum Tea | Tea Vivre (watch for updates as additional founding sponsors sign up every day.)

Companies interested in becoming founding sponsors should contact Suzette Hammond at suzette.hammond@teajourney.pub to inquire.

Locating the Richest Tea Retailers – Need to Know

Location data is critical to retail success and essential to expansion planning. Market research firm AggData offers a revealing tool that TIME Labs used to rank the richest retail locations in the U.S.

You can experiment with it free online.

The interactive form compiles the U.S. median income of brands based on updated 2013 Census data. TIME ranked 2,996 chains by comparing the median income of the counties where stores are located. TIME used this information to rank the richest  department stores, grocery stores, and restaurants by location. You can use it to perform some useful local reconnaissance on tea, coffee and cafe chains.

TEABIZ150831_ART_StoreComparisonI started with 390-store Teavana and DAVIDsTEA. The table only ranks U.S. locations which include 311 Teavana stores and 24 DAVIDsTEA locations along with 30 Argo Tea locations. In 2013 the median household (inflation adjusted) income for the entire country was $51,939 according to the U.S. Census Bureau.

DAVIDsTEA has located its shops in very high income counties (Chicago, Boston, New York, San Francisco) with a mean income of $73,226. These stores are located in counties ranking in the top 30% of U.S. incomes. Teavana is more broadly dispersed with mall stores in 46 states. Teavana Tea Bars are located in places like Manhattan and Beverly Hills. The median county income for Teavana locations is $62,304. Teavana locations are situated within counties with households in the top 41% of U.S. incomes. Argo follows with stores in five states and a median county income of $56,263. These locations rank within the top 44% of U.S. household incomes.

By comparison Starbucks has 12,231 locations in all 50 states (and two territories) with a median $52,739. The company also operates 27 Seattle’s Best Cafes in 16 states where the county median is $56,261. This number does not include the many thousands of non-branded locations where Seattle’s Best is sold.

TEABIZ150831_ART_SearchToolTo investigate competitors within your own market click this image and scroll to the bottom of the TIME page. Then use the search box to compare chains including Dunn Bros. Coffee, Coffee Beanery, Dutch Bros. Coffee, Tim Hortons, Gloria Jean’s Coffees, Tully’s Coffee, Panera Bread, Au Bon Pain etc. Peet’s Coffee & Tea was not listed.

TEABIZ150831_ART_StoreComparison2

Methodology

Household median income, from the 2013 American Community Survey, is averaged across all counties for every retail location available from AggData to find the “median shopper income.” Estimates for shopper’s income would likely show greater disparity if calculated by geographies smaller than counties, which include a broader spectrum of household incomes. Only brands with stores in 20 or more U.S. states are considered national chains and used in the lists above. Though all brands are available in the search feature regardless of the number of states they operate in.

∞ ∞ ∞

Tea Biz serves a core audience of beverage professionals in the belief that insightful journalism informs good decision-making in business. Tea Biz reports what matters along the entire supply chain, emphasizing trustworthy sources and sound market research while discarding fluff and ignoring puffery.


Tea Biz posts are available to use in your company newsletter or website. Purchase reprint and distribution rights for single articles or commission original content.  Click here for details.

China’s One Belt, One Road – Need to Know

China is making its biggest splash in tea in modern times this summer at Expo Milano 2015 the world’s largest food and beverage tradeshow.

LOGO-ChinesePavilionMilano2015“Never before has Italy hosted so many tea experts from China all together with so many companies representing the excellence of Chinese tea,” writes Marco Bertona, chairman of the Tea Association of Italy. The China Pavilion in Milan is shaped like fields of wheat rippling in the wind to reflect the theme, “Land of Hope, Food for Life.” It has been visited by almost 250,000 tourists since it opened in May.

Chinese Tea Culture Week” which ended Sunday brought to light a political mandate to make China the world’s greatest tea exporter.

In 2013 Xi Jinping, China’s new president, proposed The Belt and Road Initiative, a modernization of the Silk Road Economic Belt and the 21st Century Maritime Silk Road. The goal is reviving ancient trade routes between Asia and Europe. The proposed trade and infrastructure network passes through more than 60 countries and regions, with a population of 4.4 billion. Nations along the route produce more than 80% of the world’s supply of tea.

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China Pavilion at Expo Milano 2015

Unlike past initiatives which emphasized quantity over quality, this time China is determined to dominate the global market for premium tea.

In 2014 more than 80% of China’s tea exports were low grade green tea destined for Africa, Europe and Russia. Right now there is a surplus of commodity tea and a scarcity of premium tea making this a good time to export fine tea. During the past decade the green tea that China exported sold for between $1 and $2 per kilo. In December 2014 the world average price for tea sold at auction was $2.56/kg down from $2.72/kg the previous year. The average dropped an additional 30-cents to $2.42/kg by the end March 2015, according to statistics compiled by the Central Bank of Sri Lanka.

China Daily reports that the average price of Chinese tea increased to $4 per kilo during the past few years. Last year Chinese tea exports $4.19 per kilo. This is a big improvement but is still not enough to be profitable, according to Chinese traders.

TEABIZ_ChinaTea_OneRoadOneBeltChina’s tea market was valued at $56 billion (RMB 350 billion) in 2014. Exports comprise only $1.27 billion of market value, but were up 2.1% compared to 2013. Export volume declined 7.5% during that same period, an indication that China is shipping greater quantities of higher-value tea.

Sri Lanka, the world’s second largest tea exporter, gets the highest average price for commodity teas auctioned anywhere in the world. But the Colombo Tea Auction average is still less than $5 per kilo. Asia Syaka, a global commodities brokerage notes “Sri Lankan orthodox black tea continues to command premium pricing in the international market with prices averaging $4.97 per kilo.”

Specialty teas, in contrast, sell for $150 a kilo with some bringing $350 to $400 per kilo.

Untapped Capacity

In 2013 China was the world’s second-biggest tea exporter at 322,600 metric tons behind Kenya’s 494,400 tons. That year Sri Lanka exported 319,600 metric tons. In 2014 Sri Lanka stepped up exports, setting a record at 327,800 metric tons and China fell to third.

China is without doubt capable of meeting global demand for premium tea. It is the only large tea producing country capable of mass producing all six kinds of tea. China already produces 40% of the world’s tea and is developing thousands of additional acres per year. Tea is grown there on 6.7 million acres (2.7 million hectares) and it is exported to 120 countries. China’s tea is marketed by more than 200,000 companies representing the work of 30 million growers.

China retains its customary lead in the production of green tea, exporting 79% of the global total and accounting for 80% of value. In most instances exported Chinese tea is blended with herbs and fruits. In the US sales of green iced tea have increased significantly as national restaurant chains promote green tea’s health benefits. At least 10% of the nation’s restaurants now serve green tea alongside traditional black.

Despite its massive production capability “China is not strong enough in exports of tea leaves, tea extracts and deep-processing elements which are fundamentals of the tea industry,” according to Wu Zhibin, vice chairman of the Chinese Tea Culture International Exchange Association told Taiwan-based Want China Times. Deep-processing is the Chinese term for what in the west is known as value-added tea.

“The domestic market values low-production, handmade teas but the global tea market prefers mass-produced teas that are standardized in quality and taste,” according to Wu Jing, editor-in-chief of tea portal chayu.com. He told China Daily that “export teas are grown specifically for that purpose and not consumed domestically.”

Tea Culture Week at the Chinese Pavilion is an opportunity “to support top brands of Chinese tea industry in their path towards growth and worldwide development,” said Zhibin. He praised the top Chinese exports brands which were recognized at as special award ceremony in Milan.

“With rising production costs in China and competition that is likely to intensify, Chinese tea producers have to find new strategies to boost Chinese brands and their sales on the global stage,” says Ji Xiaoming, president of Jingwei Fu Tea Co and chairman of the Shaanxi Tea Association.

“Only if the Chinese tea industry is strong, the Chinese tea culture can be innovative and can be promoted all around the world,” Wu told Xinhua News Service.

Unprecedented opportunity

China Daily reports that “One Belt, One Road” is a rare opportunity to turn Chinese tea consumption into a global phenomenon.

“That is the dream of the country’s tea companies – which are still largely unknown to the world. They are ready to grab a piece of the action in an anticipated market boom,” according to the newspaper.

“The Belt and Road Initiative is not just a rejuvenation of the ancient silk road, but also a comeback of the ancient tea road,” said Jiao Jialiang, chairman of LongRun Group, a Chinese conglomerate specializing in food and health products.

Jiao, who is also a member of the 12th Chinese People’s Political Consultative Conference, told the newspaper that “China’s tea industry will embrace an unprecedented window of opportunity as the Initiative presses ahead.”

Growers and producers spent generations refining the Chinese way of manufacturing tea with its many unique regional variations,” according to the newspaper: “Tea is not simply beverage, but a unique opportunity to share China’s culture.”

“It’s believed the practice of tea culture can take the spirit and wisdom of humans to a higher level, and its study covers a wide field with rich content,” the paper reported.

Tea culture will lead the way boosting the Belt and Road Initiative, said Jiao, “as tea culture spreads around the world, the whole industry will take off,” he said.

Although export figures may continue to trough in the short term, says Wang Jianrong, director of the China National Tea Museum: “The future of Chinese tea exports will be bright if we continue to penetrate overseas markets with tea culture, something that is not reflected in trade figures.”

∞ ∞ ∞

An informal assessment of China’s export market for tea.

STRENGTHS

China has the land, tea varieties, tea quality, government incentives and motivation to excel in tea exports. The growth of tea retail outlets (T2, Teavana, DavidsTea, TenRen) is a very promising development. 1400 years ago China was the top tea exporter and even after India replaced it as a quantity supplier China always offered more varieties and higher quality orthodox, remaining dominate for centuries. India is the only producing country with similar capacity and it cannot effectively compete. Kenya will remain the dominate commodity supplier of black tea, but remains an insignificant supplier of green. Anything the Chinese can do with green they can industrialized and scale for black, but doing so is not profitable with Sri Lanka, India and Kenya in the picture. China is expert at orthodox green and while it will step up its black tea production for Asian consumption, European and US export, it will make its greatest gains in premium green/white, pu-erh and oolongs. China’s RTD tea market is valued at about $29 billion. China’s Ting Hsin International Group not only dominates China’s RTD market but the international RTD market as well with a 10% global market share, according to a financial report by LD Investments, published by Seeking Alpha. Look for breakouts in RTD and value-added tea products from concentrates and extracts to supplements and cosmetics. These are more likely to be developed in collaboration with Japan (ITO EN) and Taiwan (TenRen, Tingyi and Master Kong) using inexpensive Chinese tea from the mainland. Right now China is primarily developing extracts and “deep-processed” tea for its own domestic market.

WEAKNESS

Globally the demand for black tea is much greater than green. Right now there is a glut of commodity black teas and a shortage of “quality” CTC that is clean, certified and reasonably priced. China loses money producing cheap green and loses volume if they focus only on premium. Conversion to a dominate black tea supplier offers little financial incentives. Ultimately demand for fine green teas will grow due to its health benefits and the adoption of green by foodservice (in US Wendy’s green iced tea at 6,000 stores). Tea exports represents such a tiny fraction of foreign trade that the Chinese government stands to gain very little (other than prestige) from the increase in tea exports. Tea exports earned $1.27 billion which represents about .056% of China’s $2.25 trillion exports. Electronics and other agricultural products generate a lot more money than tea. Unlike the more profitable exports which receive significant government support, much of the investment on outbound marketing will be made by the 200,000 existing tea companies, none of whom are well known brands. Even the largest holds minuscule market share compared to multi nationals like Unilever, Tata Global Beverages or Nestle.

OPPORTUNITY

Chinese tea culture is fascinating, varied and universally appreciated. China exports tea to 120 countries. The country will more fully develop its impressivle portfolio of prized teas (premium green, oolongs and pu-erh) and that will generate significant income for regional producers willing to undertake mass production. Ultimately these firms will spend the money it takes to promote their offerings in Europe and North America. China’s domestic market currently values low-production, hand-made teas. The global tea market prefers mass-produced teas that are standardized in quality and taste. In time China will show the benefit of its hand-made teas by making them more available in the global market while at the same time collaborate with Western ventures such as Starbucks/Teavana and Unilever/T2 to produce more commercially successful mass-market teas.  In sharing its finest teas China gradually transitions from a commodity producer earning $4 per kilo to a quality producer capable of marketing teas at 10-times that rate and with the capacity to supply the entire world’s demand for premium teas.

THREAT

A slowing economy makes it more difficult for Chinese firms to invest the marketing dollars it takes to win share in export markets, but its own domestic demand for cleaner tea will help offset these costs. Learning to market value-added tea domestically is a precursor to global expansion and tolerance for the millions it takes to promote a Lipton or Tetley brand (ie. its latest global ad campaign cost Lipton $40 million, no Chinese company has ever invested that kind of money to promote a tea brand). Another threat is global instability that impacts trade (China territorial expansion, tension with Japan, aggressive behavior by surrogate North Korea) are factors. However, the single greatest threat in my view (and a primary motivation for exports) is the fact that young people in China consider traditional tea “old fashioned” and are not practicing the tea traditions of their parents. Consumer surveys reveal that nearly 70 percent of those born in the 80’s do not like to drink tea. This rises to 95% for those born in the 90’s. Tea is not cool, shops are largely antiquated and there is no marketing beyond basic grocery display. Relatively little good tea is purchased in grocery. Ultimately tea must appeal to a new generation of consumers. As one critic noted: “if all the tea stores look like archaeology dig sites and antique stores, then it won’t attract a lot of customers.” Revenue from a lively domestic market is essential to expansion of exports.

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