Need to Know | Ominous Fiscal Impact

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 | Pandemic

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

Need to Know | Grocery Sales Spike

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.

What Changes Are Being Proposed by the FDA for Labels?

The U.S. Food and Drug Administration is considering new requirements for nutrition labeling for food and beverage products that will, among others, impact companies with ready-to-drink tea products. The FDA feels that the 20-year-old labeling systems would benefit from an overhaul to better inform consumers in their choices.

FDA LabelingThere are two fundamental parts to the proposed changes. The first addresses the actual nutritional information being reported. There would be a reevaluation of the daily nutritional values of certain vitamins and minerals. Vitamin D would be added, while Vitamins C and A would be eliminated. Additional information about sugar would be provided as well. Serving sizes would be most affected by the rules rewrite. The new serving sizes would better reflect how people actually eat and drink today. For example, a 20 ounce bottle of cola would no longer list the contents as two servings. A bottled drink that would usually be consumed during one sitting would need to have nutritional information reflect the values for the entire bottle. Larger bottles would list the amounts for a single serving, as well as the values if the entire bottle is consumed. The second change impacts the actual layout of the label. Calories would become more prominent. The chart showing daily nutritional values would be reversed so the percentages for each item would be listed before the actual amounts.

According to the Wall Street Journal, smaller companies are concerned about the added costs that will result from these changes. Calculating serving sizes and redesigning and printing labels can be a significant investment for small shops. Bottled rooibos company Rooibee Red Tea commented, noting that the new information would not fit on their existing label, requiring a redesign running as much as $30,000.

The FDA is currently accepting public comment both on the revised nutritional reporting and on the proposed redesign. The comment period closes on June 2, 2014. Once changes are approved, companies would have two years to come into compliance.

Source: Wall Street Journal and the U.S. Food and Drug Administration

Image courtesy of the U.S. Food and Drug Administration.

Need to Know (March 24, 2014)

What tea professionals need to start the week —

New York Coffee & Tea Wraps Up…Tough week at the tea auctions… Third Street Chai breaks into Whole Foods in a big way…New book on Homegrown Tea

 

New York Coffee & Tea Another Sold Out Success

This past weekend New York Coffee & Tea Festival filled the floors of the 69th Regiment Armory on Lexington Ave. in Manhattan. Once again this year the show was sold out well in advance of the weekend, including tickets for a VIP hour Saturday morning that allowed early admittance to those ticket holders. 7,000 attendees were expected.

Sixty exhibitors set up shop across the 25,000 square foot space. A number of presenters, well-known to tea aficionados, were on the festival schedule. Jeni Dodd of Jeni’s Teas and Thomas Shu of ABC Tea presented on Taiwanese teas. Emeric Harney, the creator and manager of Harney & Sons’ Harney SoHo tea cafe, was on the schedule to talk about the people and plants of tea. Judith Krall-Russo prepared a talk on the history of women and tea.

The pairings are always quick to fill up and this year was no exception. L’Espalier’s tea sommelier and author of Culinary Tea, Cynthia Gold, introduced attendees to the art of pairing tea and cheeses. A Gift of Tea’s Jo Johnson talked tea and chocolate and Capital Teas’ Peter Martino explored tea infusions for cocktails. Shu and Dodd teamed up again to talk about finding “harmony” in tea, solving the mystery of the perfect combinations of tea, water, timing, and temperature.

Given the speed of ticket sales and the fact that next year will be the 10th anniversary, you may want to start planning your trip for 2015 now.

Coffee & Tea Fest Philly is scheduled for November 8-9, 2014.

 

Going once, going twice…Not Sold!

It was a tough week at the tea auctions this past week as prices were lower than anticipated. African Tea Brokers reported that Kenya tea prices were low this week with top grade teas, broken pekoes and pekoe fannings all selling for less than the week prior. Nearly 14% of the tea was unsold and more than 17% was unsold the previous week. Pakistan was the big buyer.

Bangladesh saw lower prices also for the sixth week in a row. A glut of poorer quality leaf that remained from the end of the season was blamed. 54% of the tea was left at the end of the sale, topping the 50% that was left at the previous auction. An auction official blamed the quality of tea on offer, citing big demand for high quality tea which seemed to be at short supply.

Things at Coonoor were no better where the Coonoor Tea Trade Association reported that 34% of their tea remained unsold at the end of the auction even at a lower price point than usual.

 

Third Street Chai Releases Ready-to-Drink Tea Line

Boulder, Colo. based Third Street Chai has been selling this spicy tea since 1995, a time when most people had never heard of the stuff. Nearly twenty years later, they’re still in the thick of things. They’ve established themselves as a source of hand-blended chai (blending and milling whole spices for each batch) and claiming the title of the first Fair Trade certified chai. Now they are preparing to release a new ready-to-drink teas at Whole Foods stores nationwide.

Third Street will be selling unsweetened and lightly sweetened black and green teas, incorporating flavors like raspberry, honey and mint. These Fair Trade certified, non-GMO drinks will be sold in 14 ounce containers.

Whole Foods helped make this product a reality by selecting Third Street for one of its Small Producer loans. Their in-house microbrewing and focus on traceability of ingredients made the company stand out.

Source: Food Navigator

 

— — —

Tea Biz serves a core audience of beverage professionals in the belief that insightful journalism informs business decision making. 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.

Patent Persuasion – Need to Know

What tea professionals need to start the week —

Single-serve lawsuits draw a line in the sand… growers of Honeybush in South Africa voice concern over rising demand… AriZona retains its position as the market leader in ready-to-drink tea in convenience stores… Numi introduces single serve tea in RealCups.

Patent Persuasion

Numi Organic Tea announced its new single-cup line last week, about the same time Harney & Sons Fine Teas launched their selection of single-cup teas.

Neither company chose to partner with Keurig Green Mountain which licenses its K-Cup technology to major tea blenders including Lipton, Snapple, Bigelow, Teavana, Twinings, Tetley, Celestial Seasonings and Tazo.

LOGO_KeurigGreenMountain_replacesGMCRTheir decision is based on economics in part. The largest brands produce K-Cups in huge quantities paying less per cup and can therefore better afford to pay Keurig Green Mountain a royalty of 6.2 cents per cup.

There is also a principal involved, a line in the sand with KGM on one side facing a growing number of private label manufacturers including California-based Rogers Family Coffee and Toronto-based Mother Parkers Tea & Coffee. Each of these firms packages their own lines in Keurig-compatible non-licensed capsules and packs tea for companies like Republic of Tea (Rogers).

Since its patents expired in September 2012, Green Mountain has watched its market share erode. Last year unlicensed packs grew from 7% to 14% share of the $3.1 billion single-serve market, according to data from Mintel International. Green Mountain, which once controlled 80% of the market by value, now controls 20% (with another 13% held by Keurig  manufactured Caribou, Newman’s Own and Eight O’Clock coffee).

Starbucks has sold 2 billion K-Cups in a successful partnership with Keurig dating to 2011 and currently has a 12% share. Folgers (JM Smucker) has 12% share, according to IRI data (which counts grocery, drug store and mass market sales). Last week Starbucks renegotiated its deal with Keurig, striking terms that had prevented Keurig from partnering with other super-premium brands but gaining access to the lower end of the market for brands like Seattle’s Best. Almost immediately Peets Coffee & Tea announced it would partner with Keurig Green Mountain. Peets had previously offered its coffee only in RealCup™ Even though it now faces competition in the premium segment, Starbucks is quite confident it will be rewarded for expanding its offerings. Single-cups are the fastest growing coffee segment and many more homes are going to dump their Mr. Coffee for a pod machine.

Keurig believes that by developing superior equipment and partnering with companies like Starbucks to insure a large assortment of licensed brands it will win back market share.

REALCUP(TM) LOGOIn choosing to contract with Mother Parkers Tea & Coffee, Numi joins a growing number of grocery chains including Kroger and Safeway, large manufacturers such as Kraft and Mondelez International, and independent coffee roasters who believe that open competition leads to product innovation, improved quality and greater consumer value.

On Feb. 12,  TreeHouse Foods, a multibillion-dollar private label manufacturer, filed suit against Keurig, Inc., and Green Mountain Coffee Roasters (collectively known as Keurig Green Mountain) alleging they engaged in anti-competitive acts to unlawfully maintain their monopoly over the cups used in single-serve brewers. A month later The Rogers Family Co. also filed suit alleging Keurig used its monopoly power in the single-serve coffee brewer and coffee pod markets to require its distribution partners to enter into “exclusive anti-competitive agreements designed to maintain Keurig’s monopoly power by excluding competition.”

In a release announcing the suit, TreeHouse writes that “Green Mountain has announced plans to eliminate the current lineup of K-cup brewers, which function with competitive cups, to exclude competition and force consumers to purchase higher-priced Green Mountain cups. TreeHouse’s lawsuit maintains that any supposed consumer benefits from the new technology are more than outweighed by the harm to competition and consumers by eliminating their choice and forcing them to pay higher prices for Green Mountain cups.”

“Such an anti-competitive product redesign would force consumers to pay at least 15 percent to 25 percent more for K-Cups, would block consumers from their preferred beverages and would restrain competition,” Oak Brook, Illinois-based TreeHouse said in its complaint.

Keurig Green Mountain Spokeswoman Suzanne DuLong responded that “We believe these claims are totally without merit, and we intend to defend these lawsuits vigorously.”

Coffee industry leader Mother Parkers agrees with TreeHouse Foods actions to stop a Keurig® monopoly, according to the company.

“The patents have expired; consumers have declared that they want choice,” said Bill VandenBygaart, Vice President of Business Development at Mother Parkers. “In our opinion, this action by Keurig as well as the pattern of anti-competitive activities described in the Complaint will continue to hurt the category.”

Tea and coffee drinkers “should decide which coffee they will brew, not Keurig® or Green Mountain Coffee Roasters®,” said VandenBygaart. “We support efforts to keep the single-serve business open to competition and believe that competition will deliver a better cup of coffee or tea.”

Numi Co-founder Ahmed Rahim was eager to enter the single-serve business, but it was paramount that the taste he so carefully crafted was present in each cup brewed from a single-serve capsule, according to a press release announcing the decision.

“I was impressed by the taste delivered by a RealCup™ capsule,” said Rahim. “It was clear to me that the superior taste from the carefully chosen real ingredients used in Numi® Organic Tea’s blends would be found in the teacup and not left behind in the capsule.” In choosing he placed Numi on the “one for all, all for one” side of the line.

No one wants to lose their monopoly. Keurig Green Mountain aggressively responded to the suit but the company’s decision to erect an even more formidable patent barricade is ultimately going to dampen innovation. In February KGM CEO Brian Kelley unveiled a new Keurig 2.0 brewer that will not work with non-licensed K-Cups. The patent for “intelligent extraction” which depends on a bar-code and radio-frequency ID means that owners will once again be forced to purchase Keurig coffee. It will also thwart the use of refill capsules.

The reality is that Keurig will find it hard to convince coffee drinkers they must pay for the new brewers through a premium of as much as three times the actual cost of coffee contained in the capsule.  Kelley has promised the technology will produce a better cup of coffee, leading existing Keurig owners to upgrade. Keurig has sold 16 million brewers to date. Installing RFID technology in existing models is not practical. Adding this feature to new less expensive models drives up their cost.

Keurig may abandon its first-generation brewers but private label capsules are here to stay, as evidenced by the rapid growth of the Hamilton Beach FlexBrew. This non-licensed $49.95 Keurig-compatible brewer in five months is already found in 11,000 outlets. It is outselling Keurig’s comparable K-10 because it not only accepts K-Cups, it accepts refillable cups, has a wire mesh basket for your own freshly ground coffee and will brew European-style filter pad coffee as well as tea pods.

Keurig 2.0 will certainly offer more features; and with its partners likely make a better cup of coffee. It may well triumph in its niche — but not by unfairly stifling competitive innovation.

CASE: TreeHouse Foods Inc. v. Green Mountain Coffee Roasters Inc., 14-cv-00905, U.S. District Court, Southern District of New York (Manhattan).

Source: TreeHouse Foods

Fast Growth RTD Tea

While carbonated drinks remain the most widely consumed beverage in America the U.S. Beverage industry reported another year-to-year drop in volume, this time down 1.42% in convenience outlets compared to 2012. In contrast RTD tea is the fastest growing segment of the beverage category.

SLIDES-RTD_AriZonaTea_greenteaginsengAriZona Tea was the top-selling brand in convenience last year with almost $270 million in sales. Lipton Brisk ($153 million) and Lipton PureLeaf ($125 million) trailed according to data from IRI.

The biggest growth was Coca-Cola’s FUZE juice fortified with vitamins. Sales increased 250% to $33 million. The bottled tea category generated $1.23 billion sales in convenience outlets in 2013.

Bottled water showed big gains as soda consumption continues to decline but ready-to-drink tea may be the ultimate victor now that the world’s major bottlers are give it a boost.

Coca-Cola reported last month that its tea volume grew by 11% last quarter. Sales of Honest Tea are up 25% compared to 2012 and it is now a $100 million brand. FUZE tea and juice blends and Gold Peak shows solid growth as well.

Market research firm Canadean released its Global Iced/RTD Tea Drinks Report last week noting North America had net volume growth of 74 million gallons (280 million liters). The $5.1 billion U.S. market for RTD tea is expected to increase to $5.3 billion in 2014 with projected growth rate of 6% through 2018.

 “The refreshing taste and perceived natural, healthy image of iced/RTD tea drinks will continue to generate growth and place the category in a good position to take advantage of the slowing carbonates market,” according to Canadean.

RTD tea is not just gaining customers in the United States.

Of the impressive 18.7 billion liters forecast to join the market between 2013 and 2018, over 15 billion liters is projected to come from Asia, with a massive contribution from China (as it overcomes its temporary setback) and Indonesia, according to Canadean. “Soft drink categories have continued with healthy double-digit growth, primarily owing to the key categories such as iced/RTD tea drinks and packaged water. The company reports that in Europe most carbonated consumption continued to occur in West Europe (primarily Benelux) in 2012. The region consumes 55% of global volumes but has lost considerable ground to Asia.

Excessive Demand Depletes Honeybush

Demand is depleting stocks of Honeybush, a largely wild-harvested South African bush used to make a popular herbal drink.

SLIDES-INNO_RTD_HoneybushTeaIt has become a popular because of its sweet flavor and it is often praised for its potential health benefits. There are 23 species of Honeybush; several are used to make an herbal beverage. In 1997 the harvest was 27 metric tons but when companies like Tazo, Twinings and Stash offering Honeybush blends in their lineup demand rose to 200 metric tons.

The challenge is supply.

Honeybush (Cyclopia sp.) is a legume that grows only in the mountains north of South Africa’s Cape of Good Hope. Honeybush is part of the fynbos biome a habitat that is under pressure similar to that experienced by Rooibos which experienced a three-fold increase in demand. The result was widespread cultivation on land farmed at the expense of other native plant species.

Richard Cowling, of the Department of Botany at the Nelson Mandela Metropolitan University, cautioned that steps should be taken to prevent mistakes by the Rooibos tea industry.

“What is required is the mainstreaming of biodiversity and sustainability into the policies and practices of the Honeybush industry at this early stage of its development,” Cowling told the Flower Valley Conservation Trust. This could be done through certification championed by the local industry. Certification could ensure that sustainable veld harvesting guidelines are followed, that cultivation only takes place on old lands and that fair labor practices are met, he said.

There is very limited commercial cultivation of Honeybush so supply has relied heavily on wild bushes. The small plantations that currently exist are only able to supply 25% of the need. Honeybush traders travel into the mountains and harvest what is to be sold. Concerns have been raised that improper harvesting has damaged the existing supply. Wildfires, droughts, and over-harvesting have now raised serious questions about the plants’ long-term survival. Beginning in the mid-2000s, supply began to drop significantly, just at a time when global demand was increasing. The supply problems pose significant challenges to blending for consistent flavor and appearance and prices have now doubled.

Currently 15% of the Honeybush produced stays in South Africa. The rest is exported, with 85% of those exports going to the United States and Germany. Honeybush producers worry that the plant simply will not survive and work is now being done to establish nurseries and plantations to grow more Honeybush for commercial use.

These supply concerns are coinciding with efforts by the European Union and South Africa to assist one another with protecting geographic trademarks for products including Honeybush.

Neill Coetzee at Cape Town South Africa’s Coetzee & Coetzee (Pty) Ltd. is one such exporter. He identified five species that are commercially utilized. Two are slow growing and mainly wild harvested, he writes.

One species, Cyclopia longifolia, is “a new kid on the block and showing big commercialization prospects,” according to Coetzee. “This tea is very similar to Cyclopia intermedia (the original honeybush) but grows well in cultivation,” writes Coetzee whose firm trades in natural and organic ingredients, medicinal plants, herbal teas, Rooibos and Honeybush.

Small quantities of Honeybush are grown on lands from Mosselbay to Oudsthoorn (the eastern sides of the Western Cape province) and on the western side of the Eastern Cape province (Joubertina to Kareedouw). There are two Rooibos plantations situated near Honeybush producers but most Rooibos is grown 200 miles away in the Cederberg Mountains near Clanwilliam, considered the heart of Rooibos cultivation.

Learn more: South African Broadcasting Corporation

— — —

Tea Biz serves a core audience of beverage professionals in the belief that insightful journalism informs business decision making. 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.

Need to Know (March 10, 2014)

What tea professionals need to start the week —

CBC reports pesticide residues greater than legal threshold… China tightens food safety rules leading tea gardens to reduce reliance on pesticides… “Be More Tea” generates plenty of social buzz… Harney & Sons introduce tea in K-Cup compatible capsules… Coffee Bean & Tea Leaf introduces tea granitas.

Popular Tea Brands Exceed Threshold for Pesticide Residue

The Canadian Broadcasting Corp. (CBC) aired an exclusive report backed by laboratory findings showing several popular tea brands contain pesticide residue exceeding the government mandated threshold.

Test results from the CBC’s Marketplace Consumer Watchdog Blog can be viewed here.

Responses from tea companies tested in the report can be viewed here.

LOGO_Marketplace_ConsumerWatchdog

Authorities stressed that minute traces of residue found in samples of Lipton, Tetley, Twinings and other popular brands were not a health risk.

“Health Canada reviewed the information provided by Marketplace and for the pesticides bifenthrin, imidacloprid, acetamiprid, chlorfenapyr, pyridaben, acephate, dicofol and monocrotophos determined that consumption of tea containing the residues listed does not pose a health risk based on the level of residues reported, expected frequency of exposure and contribution to overall diet. Moreover, a person would have to consume approximately 75 cups of tea per day over their entire lifetime to elicit an adverse health effect,” a spokesperson wrote to the CBC in a statement.

Canada’s Food Inspection Authority (CFIA) previously disclosed concerns about pesticide residue in 2009 and again in 2011 following tests of tea. Marketplace commissioned testing through an accredited lab to see if the teas exceeding Canada’s allowable limits were still in violation. In several instances that was the case.

Eight of the 10 brands sampled from grocery shelves in Toronto contained multiple chemicals and one brand contained residues from 22 different pesticides. Traces point to the use of endosulfan and monocrotophos, both banned by the United States and Canada as well as China and the European Union.

Brands purchased at grocers including Loblaws included Uncle Lee’s Legends of China, King Cole and Signal tea. Only Red Rose came back free of pesticide residues.

Environmental lawyer David Boyd told Marketplace “the presence of so many pesticides on a single product and so many products that exceed the maximum residue limits for pesticides, suggests that we’re seeing very poor agricultural practices in countries, which poses risk to the environment where these products are being grown; which pose risk to the farm workers who are growing these crops, and ultimately pose risk to the Canadians who are consuming these products.”

“The whole point of pesticides is that they’re chemically and biologically active in parts per million or parts per billion,” Boyd told the CBC. “Pesticides can have adverse effects at what are seemingly very small concentrations,” he said.

According to Boyd, these results “should raise a red flag for the regulators whose job is to protect the health and safety of Canadians in our environment.”

Here is a statement from the Tea Association of Canada:

“In Canada, the Tea Association continues to work with the Pest Management Regulatory Agency (PMRA), The Canadian Food Inspection Agency (CFIA) as well as the Food and Agriculture Organization of the United Nations’ Intergovernmental Group (IGG) on Tea, which is spearheading an agreement to harmonize pesticide standards, making tea production safer for consumers and protecting the livelihoods of millions of smallholder producers worldwide.

Consumers should continue to consume and enjoy the many varieties of tea for its health promoting and protective effects as well as its delicious taste. “There is now an overwhelming body of research from around the world indicating that drinking tea benefits human health,” says Dr. Carol Greenwood, Professor of Nutritional Sciences at the University of Toronto and a Senior Scientist at the Rotman Research Institute at Baycrest.”

Source: CBC

See: Uncovering the Truth: Is Tea Full of Pesticides?

China Tightens Pesticide Use in Tea Gardens

STiR Tea & Coffee International

Last November the Chinese Food and Drug Administration proposed a major revision to its food safety laws that will likely be approved by China’s congress late this year.

14i2_ChinaPesticides_QualifiedTeaResidueChange

Pesticide residue has steadily declined in China’s tea leaves

This is a high-priority initiative motivated by recent food safety scandals, according to the U.S.-China Health Products Association. It will clarify government oversight, increase regulatory obligations for food manufacturers and distributors; enhance controls over food products and increase penalties for non-compliance. Individuals sentenced for imprisonment will not be allowed to engage in food manufacturing or distribution in his/her lifetime. During the past three years more than 2,000 people have been prosecuted for food safety-related crimes in China.

The amendments continue a sweeping reform of the country’s food safety standards following a national scandal in 2008 involving melamine-tainted infant formula. That breech led to the execution of violators to make the point China was serious. Enactment will further efforts to curb pesticide use in tea gardens

By 2005 93.1% of tea products already had attained or exceed the Green Food standard, according to a presentation by Mao Limin, then chairman of the Zhejiang Tea Industry Chamber of Commerce. Limin told delegates at the 2011 North American Tea Conference that random inspection of tea had reached 100% at government owned gardens. In addition 267,000 acres (108,000 ha) of organic tea plantations had been certified organic and pesticide free.

The Green Food standard permits chemical pesticides and fertilizers but mandates residue levels meet export standards. The European Union and Japan set the highest thresholds but all trading partners have Maximum Residue Levels (MRLs). Organic certification in China is under the IFOAM rules with annual re-certification. Organic teas for export must comply with rules established by certifying bodies such as Swiss-based IMO, the British Soil Association, the USDA’s National Organic Program and JAS Japan.

Every pesticide approved for use has a required safe harvest interval, which is the time lapse between application of pesticides and harvest. In China preference is given to pesticides that are not easily dissolved in water. This reduces the portion that actually gets into the liquor. Most chemicals biodegrade leaving residue trapped in the spent leaf.

14i2_ChinaPesticides_QualifiedTeaExportResidue

Use of dangerous pesticides has fallen over phase out.

“It shouldn’t come as a surprise to anyone that there are pesticides used in commercial tea production, and that third-world countries are using some illegal ones, which are probably cheaper,” writes Austin Hodge, founder of Seven Cups Fine Chinese Tea in Tucson, Ariz.

“The boney finger always gets pointed at China, the great polluter, with pollution in Beijing as bad as when I was a kid in Los Angeles. It can all be explained in three words: cheap prices, commodity, and quantity. For the most part, bugs come in the summer. In the tropics, however, bugs are omnipresent. It’s always summer. It provides for a long growing season and an abundant yield. It is a broader truth that if you want cheap tea and cheap food, pesticides come along with the price,” he wrote in in a T Ching post last May.

In April 2012 Greenpeace issued a report: Pesticides: Hidden Ingredients in Chinese Tea following an investigation that showed chemical residue from pesticide. The organization sent samples purchased from well-known tea companies to an accredited third-party laboratory that found residues of various types on all 18 of the samples submitted. A total of 29 different pesticides were detected, several known to cause harm. Six samples contained more than 10 different pesticides. Twelve samples showed traces of banned pesticides including methomyul, endosulfan and fenvalerate which are known to impair fertility, harm unborn children and cause heritable genetic damage.

14i2_ChinaPesticides_QualifiedTeaProductsa

Inspections show greater compliance over time.

What the report did not state is that most of the residue was within established standards.

“If you take the considerable trouble of comparing the Greenpeace data with EU pesticide limits for the 28 chemicals mentioned then 5 of the 18 teas accused actually fall below the MRL limits for all 28 and two teas exceed by a trace level of 1 mg/kg on two chemicals,” writes Nigel Melican, founder of TeaCraft, a widely acclaimed British tea consultancy. He goes on to say: “This leaves 11 teas non-compliant for  one  or  more  pesticides, were they to be sold in the EU.”

The sampled teas were from local Chinese vendors and not subject to more stringent export rules.

“Nowhere in the report does Greenpeace China suggest that the non-compliant teas are representative of China teas presented for export – but commentators in the USA and UK have erroneously and immediately jumped to this conclusion,” he writes.

More troubling is the CBC investigation of tea for sale in Canada.

Source: STiR Tea & Coffee Industry International, March-April 2014.

TEABIZ-KTN_140303_KermitLipton“Be More Tea” Generates Great Buzz

Lipton’s $40 million global campaign promoting a relaxed lifestyle message is riding high on social buzz following the debut of Kermit the Frog as the brand’s new icon of calm.

The TV audience of 43 million watching the Academy Awards and a well prepared social team capitalizing on the Oscar presentations generated 3.85 million views of the ad on YouTube in the past week. The commercial depicts a horde of “Animal” puppets driving cabs, shouting and racing about New York City set the scene for the thoughtful frog who is captured placidly walking amid the mayhem doing good turns and going with the flow as he is bumped and jostled about.

“Be More Tea” is Unilever’s first global campaign to elevate its Yellow Label brand and Kermit is the epitome of mindfulness as he sips his way through the antics of Miss Piggy and pals. The promotion is tied to a Disney movie starring the Muppets.

Kermit will be the face of Lipton in North America and Europe where the puppets are well known but “Be More Tea” is a slogan that will be translated into many languages in advertisements designed to create single global positioning for the world’s leading brand of tea.

“We live in a busy world.  It’s easy to slip into a routine with our heads down, moving from one place or obligation to the next.  Lipton wants to inspire consumers to ‘look up’, take in all that life has to offer and enjoy what you may have otherwise missed,” said Alfie Vivian, vice president of refreshments for Unilever. “This is what ‘Be More Tea’ means to Lipton and the philosophy we will bring to life in our new national ad campaign starring the Muppets.”

Alessandra Bellini, VP-brand development for Unilever Refreshments, told Ad Age that Unilever is doubling Lipton marketing spending to more than $40 million this year compared to last. The campaign will run four weeks.

“The campaign backs both Lipton hot tea and iced tea. While Lipton has had global campaigns in the past for ready-to-drink tea, this is the first global effort behind the entire brand lineup,” Ms. Bellini told Ad Age. “Lipton — in both cold and hot forms — trails only Coke in sales among global beverage brands,” she added.

The Muppets“Making movies and dating Miss Piggy can be stressful – especially the dating part. But I always try to stay cool and look on the bright side,” said Kermit the Frog. “That’s what this Lipton campaign is all about.  In a world filled with high-stress wild-in-the-street types like Animal, you have to take time to enjoy life and ‘Be More Tea.'”

Click here to see the ad.

Click here to see a 90-second behind the scenes video with Kermit back stage preparing for his role in the new Disney Movie “Muppets Most Wanted” scheduled for release March 21.

Harney & Sons Tea Capsules

Harney & Sons Fine Teas introduced a line of Keurig-compatible single-serve teas this week.

TEABIZ-ART_Harney&SonsCapsules_GroupTea drinkers can now enjoy Harney & Son’s teas with the convenience of the individual tea capsules that are 98% recyclable. Four blends from the company’s classics collection are available in 24-count boxes: Paris, Egyptian, Chamomile, Hot Cinnamon Spice and Tropical Green, as well as four blends from their HT Collection in 16-count boxes: Green Tea with Coconut, Earl Grey, Peppermint Herbal and Hot Cinnamon Sunset.

The Keurig® compatible capsules deliver the same great flavor and aroma customers have come to expect, according to the company which is now celebrating its 30th Anniversary. The Cool, Peel and Recycle technology allows tea drinkers to easily peel off the capsule after cooling, and recycle the capsule filter and spent tea. Harney & Sons continues to provide new and innovative ways to enjoy their classic tea, said founder John Harney.

Three generations of the Harney family oversee a venture that still sources, blends and packages their own products from start to finish. Harney’s small home-run business in Salisbury, Conn., has grown into a global operation with more than 170 employees at its headquarters in Millerton, New York. The company fills 90,000 square feet of warehouse space and has a new bottling plant under construction.

Capsules are available for purchase at www.harney.com.

CBTL Introduces Tea Granita

Cold tea beverages, fruit and tea fusion drinks and chilled herbals are doing well in the marketplace.

TEABIZ_CBTL_TeaGranitas_pairedLast week The Coffee Bean & Tea Leaf® introduced Tea Granitas to the lineup, a new concept in the beverage category.

“Borrowing inspiration from the Italian granita dessert – made of fruit and ice – the Tea Granitas are a light, refreshing balance of premium iced teas and trending fruit flavors, and are blended with ice,” according to the company.

The Passion Fruit Tea Granita blends Assam Black Tea and the bright, bold flavors of passion fruit, yielding a slightly tart finish. The Pear Berry Tea Granita combines the company’s popular Swedish Berries fruit infusion with notes of pear, creating a delicious caffeine-free beverage.

“The Tea Granita is a truly unique beverage that’s perfect to launch in the spring,” says CBTL President and CEO, John Dawson. “It brings a delicious twist to iced tea refreshment and is the latest in a long line of tea beverage innovations from The Coffee Bean & Tea Leaf®. Our customers know us for our signature tea beverages, such as the Chai Tea Latte and Matcha Green Tea Ice Blended® drink, and we believe the Tea Granita is another delicious beverage our customers will love sip after sip.”

Source: Coffee Bean & Tea Leaf

— — —

Tea Biz serves a core audience of beverage professionals in the belief that insightful journalism informs business decision making. 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.

Popular Tea Brands Exceed Threshold for Pesticide Residue

The Canadian Broadcasting Corp. (CBC) aired an exclusive report backed by laboratory findings showing several popular tea brands contain pesticide residue exceeding the government mandated threshold.

Test results from the CBC’s Marketplace Consumer Watchdog Blog can be viewed here.

Responses from tea companies tested in the report can be viewed here.

LOGO_Marketplace_ConsumerWatchdog

Authorities stressed that minute traces of residue found in samples of Lipton, Tetley, Twinings and other popular brands were not a health risk.

“Health Canada reviewed the information provided by Marketplace and for the pesticides bifenthrin, imidacloprid, acetamiprid, chlorfenapyr, pyridaben, acephate, dicofol and monocrotophos determined that consumption of tea containing the residues listed does not pose a health risk based on the level of residues reported, expected frequency of exposure and contribution to overall diet. Moreover, a person would have to consume approximately 75 cups of tea per day over their entire lifetime to elicit an adverse health effect,” a spokesperson wrote to the CBC in a statement.

Canada’s Food Inspection Authority (CFIA) previously disclosed concerns about pesticide residue in 2009 and again in 2011 following tests of tea. Marketplace commissioned testing through an accredited lab to see if the teas exceeding Canada’s allowable limits were still in violation. In several instances that was the case.

Eight of the 10 brands sampled from grocery shelves in Toronto contained multiple chemicals and one brand contained residues from 22 different pesticides. Traces point to the use of endosulfan and monocrotophos, both banned by the United States and Canada as well as China and the European Union.

Brands purchased at grocers including Loblaws included Uncle Lee’s Legends of China, King Cole and Signal tea. Only Red Rose came back free of pesticide residues.

Environmental lawyer David Boyd told Marketplace “the presence of so many pesticides on a single product and so many products that exceed the maximum residue limits for pesticides, suggests that we’re seeing very poor agricultural practices in countries, which poses risk to the environment where these products are being grown; which pose risk to the farm workers who are growing these crops, and ultimately pose risk to the Canadians who are consuming these products.”

“The whole point of pesticides is that they’re chemically and biologically active in parts per million or parts per billion,” Boyd told the CBC. “Pesticides can have adverse effects at what are seemingly very small concentrations,” he said.

According to Boyd, these results “should raise a red flag for the regulators whose job is to protect the health and safety of Canadians in our environment.”

Here is a statement from the Tea Association of Canada:

“In Canada, the Tea Association continues to work with the Pest Management Regulatory Agency (PMRA), The Canadian Food Inspection Agency (CFIA) as well as the Food and Agriculture Organization of the United Nations’ Intergovernmental Group (IGG) on Tea, which is spearheading an agreement to harmonize pesticide standards, making tea production safer for consumers and protecting the livelihoods of millions of smallholder producers worldwide.

Consumers should continue to consume and enjoy the many varieties of tea for its health promoting and protective effects as well as its delicious taste. “There is now an overwhelming body of research from around the world indicating that drinking tea benefits human health,” says Dr. Carol Greenwood, Professor of Nutritional Sciences at the University of Toronto and a Senior Scientist at the Rotman Research Institute at Baycrest.”

Source: CBC

See: Uncovering the Truth: Is Tea Full of Pesticides?

China Tightens Pesticide Use in Tea Gardens

STiR Tea & Coffee International

Last November the Chinese Food and Drug Administration proposed a major revision to its food safety laws that will likely be approved by China’s congress late this year.

14i2_ChinaPesticides_QualifiedTeaResidueChange

Pesticide residue has steadily declined in China’s tea leaves

This is a high-priority initiative motivated by recent food safety scandals, according to the U.S.-China Health Products Association. It will clarify government oversight, increase regulatory obligations for food manufacturers and distributors; enhance controls over food products and increase penalties for non-compliance. Individuals sentenced for imprisonment will not be allowed to engage in food manufacturing or distribution in his/her lifetime. During the past three years more than 2,000 people have been prosecuted for food safety-related crimes in China.

The amendments continue a sweeping reform of the country’s food safety standards following a national scandal in 2008 involving melamine-tainted infant formula. That breech led to the execution of violators to make the point China was serious. Enactment will further efforts to curb pesticide use in tea gardens

By 2005 93.1% of tea products already had attained or exceed the Green Food standard, according to a presentation by Mao Limin, then chairman of the Zhejiang Tea Industry Chamber of Commerce. Limin told delegates at the 2011 North American Tea Conference that random inspection of tea had reached 100% at government owned gardens. In addition 267,000 acres (108,000 ha) of organic tea plantations had been certified organic and pesticide free.

The Green Food standard permits chemical pesticides and fertilizers but mandates residue levels meet export standards. The European Union and Japan set the highest thresholds but all trading partners have Maximum Residue Levels (MRLs). Organic certification in China is under the IFOAM rules with annual re-certification. Organic teas for export must comply with rules established by certifying bodies such as Swiss-based IMO, the British Soil Association, the USDA’s National Organic Program and JAS Japan.

Every pesticide approved for use has a required safe harvest interval, which is the time lapse between application of pesticides and harvest. In China preference is given to pesticides that are not easily dissolved in water. This reduces the portion that actually gets into the liquor. Most chemicals biodegrade leaving residue trapped in the spent leaf.

14i2_ChinaPesticides_QualifiedTeaExportResidue

Use of dangerous pesticides has fallen over phase out.

“It shouldn’t come as a surprise to anyone that there are pesticides used in commercial tea production, and that third-world countries are using some illegal ones, which are probably cheaper,” writes Austin Hodge, founder of Seven Cups Fine Chinese Tea in Tucson, Ariz.

“The boney finger always gets pointed at China, the great polluter, with pollution in Beijing as bad as when I was a kid in Los Angeles. It can all be explained in three words: cheap prices, commodity, and quantity. For the most part, bugs come in the summer. In the tropics, however, bugs are omnipresent. It’s always summer. It provides for a long growing season and an abundant yield. It is a broader truth that if you want cheap tea and cheap food, pesticides come along with the price,” he wrote in in a T Ching post last May.

In April 2012 Greenpeace issued a report: Pesticides: Hidden Ingredients in Chinese Tea following an investigation that showed chemical residue from pesticide. The organization sent samples purchased from well-known tea companies to an accredited third-party laboratory that found residues of various types on all 18 of the samples submitted. A total of 29 different pesticides were detected, several known to cause harm. Six samples contained more than 10 different pesticides. Twelve samples showed traces of banned pesticides including methomyul, endosulfan and fenvalerate which are known to impair fertility, harm unborn children and cause heritable genetic damage.

14i2_ChinaPesticides_QualifiedTeaProductsa

Inspections show greater compliance over time.

What the report did not state is that most of the residue was within established standards.

“If you take the considerable trouble of comparing the Greenpeace data with EU pesticide limits for the 28 chemicals mentioned then 5 of the 18 teas accused actually fall below the MRL limits for all 28 and two teas exceed by a trace level of 1 mg/kg on two chemicals,” writes Nigel Melican, founder of TeaCraft, a widely acclaimed British tea consultancy. He goes on to say: “This leaves 11 teas non-compliant for  one  or  more  pesticides, were they to be sold in the EU.”

The sampled teas were from local Chinese vendors and not subject to more stringent export rules.

“Nowhere in the report does Greenpeace China suggest that the non-compliant teas are representative of China teas presented for export – but commentators in the USA and UK have erroneously and immediately jumped to this conclusion,” he writes.

More troubling is the CBC investigation of tea for sale in Canada.

Source: STiR Tea & Coffee Industry International, March-April 2014.

— — —

Tea Biz serves a core audience of beverage professionals in the belief that insightful journalism informs business decision making. 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.

Need to Know (March 3, 2014)

What tea professionals need to start the week —

European restrictions on the import of Japanese tea ease April 1… Meet 700-year-old ChigusaCredit markets are expected to be more active in 2014… Numi Organic Tea secures $4.75 million working capital… Jamba is juiced over Drink Green offerings… Zest high octane tea triples the caffeine of regular black tea… Tea Magazine evolves.

European Restrictions on Japanese Tea Eased

The European Union has eased stringent tests of Japanese foods including tea after examining 85,000 products harvested in the third growing season following the nuclear accident at Fukushima.

FLAG-EuropeanUnionThe decision by the Standing Committee on the Food Chain and Animal Health follows a recommendation to lift emergency restrictions on goods from two prefectures and eased restrictions for seven other prefectures. Restrictions on mushrooms from the four prefectures nearest the breached reactors remain. Three additional prefectures, Nagano and two newly added prefectures Akita and Yamagata, face restrictions on mushrooms and a few edible wild plants.

Shortly after the March 2011 disaster importers of Japanese tea, fruits and vegetables, meats and some seafood were advised their goods would be quarantined and subject to additional tests for radioactive cesium and iodine. The cost of sampling and the lengthy delays required to test foods virtually closed the European market to perishables from half the country.

All products had to be tested before leaving Japan. All costs resulting from these checks, including the cost of sampling and analysis and any enforcement measures taken in respect of a failed consignment must be met by the importer, according to the standing committee.  Ten percent of arriving goods were examined. Costs at the English Port of Suffolk are typical, adding $400 to the price of landing a container. Items that failed tests faced an additional $185 in fees.

Few of the prefectures grow substantial quantities of tea except Shizuoka which accounts for much of the country’s production and processes tea from the nearby prefectures. It is the home to the great port of Yokohama. Shizuoka, As of April 1 Yamanashi, Niigata and Aomori no longer have to contend with restriction on tea.

The next review is March 31, 2015 at which time most of the remaining restrictions are expected to be lifted.

Source: Food Safety, Port of Suffolk, Japan News

Tea-leaf storage jar named Chigusa with mouth cover and ornamental cords Photo credit: Courtesy Freer Gallery of Art The mouth cover for Chigusa was made by Tsuchida Yuko in 2013; the cords for tying ornamental knots are from the Japanese Meiji era (late 19th–early 20th c.)

Tea-leaf storage jar named Chigusa with mouth cover and ornamental cords Photo credit: Courtesy Freer Gallery of Art The mouth cover for Chigusa was made by Tsuchida Yuko in 2013; the cords for tying ornamental knots are from the Japanese Meiji era (late 19th–early 20th c.)

Meet Chigusa, a 700-Year-Old Tea Jar

By Stephenie Overman

Introductions are in order.

Please meet Chigusa. At first glance an ordinary Chinese tea storage jar, over the course of centuries Chigusa has become one of the most revered objects of Japan’s chanoyu, or “art of tea.”

“Tea men looked at Chigusa and found beauty even in its flaws, elevating it from a simple tea jar to how we know it today,” says Louis Allison Cort, curator for ceramics at the Smithsonian Institution’s Freer Gallery of Art and Arthur M. Sackler Gallery.

“This ability to value imperfections in objects made by the human hand is one of the great contributions of Japanese tea culture to the world,” she said.

Only a few hundred similar tea storage jars survive and fewer still are accompanied by such a wealth of artifacts and documentation.

Japanese tea enthusiasts awarded each jar its own name, often tied to poetry or literature, as a sign of respect and reverence. The name Chigusa means “abundance of varieties” or “abundance of plants.” Since Chigusa has its own distinctive name, “we can trace its story precisely to the present day,” Cort says.

These Japanese tea enthusiasts often kept extensive diaries, which recorded detailed descriptions of Chigusa’s physical attributes and accessories, allowing contemporary scholars to see the jar through their eyes, notes Andrew M. Watsky, professor of Japanese art at Princeton University.

“Looking at, appreciating objects’ shape, size and so on was part of the pleasure of tea,” Watsky says. “They took this very seriously.”

Ciphers of past owners on the base of the tea-leaf storage jar named Chigusa Courtesy Freer Gallery of Art

Ciphers of past owners on the base of the tea-leaf storage jar named Chigusa Courtesy Freer Gallery of Art

From these extensive records, scholars know how Chigusa originated as one of countless utilitarian ceramics made in southern China during the 13th or 14th century and was shipped to Japan as a container for a commercial product.

In Japan however, Chigusa, like other Chinese storage jars, was endowed with special status, and over the years it became a highly desirable antique. One eyewitness, who saw the jar at a gathering in 1586, admired its large size and the reddish color of the clay and noted that it was a “meibutsu,” meaning “celebrated tea object.”

Chigusa is visiting the Sackler Gallery in Washington, D.C, through July 27. Chigusa then travels to the Princeton University Art Museum in the fall. The exhibition is accompanied by a book of essays by a number of authors narrating Chigusa’s 700-year-history.

In the exhibition, “Chigusa and the Art of Tea,” Chigusa holds court over other cherished objects, including Chinese and Korean tea bowls and Japanese stoneware water jars and wooden vessels that were used and enjoyed during this formative time of Japanese tea culture.

The goal of the exhibit, Cort says, is “to show the total package used in a 16th century ceremony,” based on the tea diaries.

In the 15th century participants in Japanese tea ceremonies were impressed “by the quantity of objects,” she says. But in the 16th Century – the high point of chanoyu – the emphasis was on the harmony of the objects within the group.

“There was a combination of precious and easily available objects and the contract of highly different materials. It was a powerful aesthetic experience for guests” at tea gatherings, Cort says.

For display in the tea room, Chigusa has been outfitted with accessories bestowed upon it by its successive owners: a mouth covering of antique Chinese gold-brocaded silk, a netted bag of sky-blue silk and a set of blue silk cords used to tie ornamental knots attached to the four lugs on the jar’s shoulder. A video in the exhibition follows a tea master in the elaborate process of dressing Chigusa in its adornments.

In order to create the intimate feel of a 16th-century tea gathering, and to give the sense of how the objects would fit into the space, part of the exhibition recreates a Japanese tea room.

Set of three nesting storage boxes for the tea-leaf storage jar named Chigusa Courtesy The outer storage box is the most recent, from the Meiji era (late 19th– early 20th c.). The middle box, formerly the outer box, is from the Edo period (1615–1868), and is made of cedar stained with persimmon tannin. The inner storage box, from the same time period, is made of lacquered paulownia wood. All three are Japanese, designed to nest within one another. Photo Credit: Freer Gallery of Art

Set of three nesting storage boxes for the tea-leaf storage jar named Chigusa Courtesy The outer storage box is the most recent, from the Meiji era (late 19th– early 20th c.). The middle box, formerly the outer box, is from the Edo period (1615–1868), and is made of cedar stained with persimmon tannin. The inner storage box, from the same time period, is made of lacquered paulownia wood. All three are Japanese, designed to nest within one another. Photo Credit: Freer Gallery of Art

“Tea is a living activity,” Watsky says, and visitors to the exhibit will have an opportunity to experience a traditional Omotesenke tea presentation, including the preparation of matcha, the whisked green tea made from leaves of the kind that Chigusa would have contained.

The museum acquired the 16.5-inch tall jar at auction in 2009. Believed to have been made during the Yuan dynasty, it is colored with a mottled amber glaze with four lugs on its shoulder and a cylindrical neck with a rolled lip sealed by a silk cover and secured with cord.

The jar bears four ciphers written in lacquer on its base. The oldest is attributed to Noami (1397-1471), a painter and professional connoisseur for the Ashikaga shogun. According to researchers, this suggests the possibility, otherwise unrecorded, that the jar circulated among owners close to the Ashikaga government. The next oldest cipher is that of Torii Insetsu (1448-1517) an important tea connoisseur and collector in the international trading city of Sakai, known for innovative tea activity. The next owner to inscribe his cipher was another Sakai tea enthusiast, Ju Soho, who hosted a tea in the new year of 1573 for guests, including the esteemed tea master Sen no Rikyu (1522-91).  Learn more: Chigusa and the Art of Tea 

The Arthur M. Sackler Gallery is located at 1050 Independence Avenue S.W. and the Freer Gallery of Art is located at 12th Street and Independence Avenue S.W. both on the National Mall in Washington, D.C. Hours are 10 a.m. to 5:30 p.m. daily, except Dec. 25. Admission is free.
Source: Smithsonian Institution

Credit Markets Active

A poll of middle-market executives by KPMG predicts an active credit market in 2014.

“Executives anticipate a shift from opportunistic deals to corporate M&A, which will be driving activity in the 2014 credit markets,” according to the U.S. audit, tax and advisory firm.

The market has been slow the past few years according to Joe Rodgers, co-head for Capital Advisory for KPMG Corporate Finance.

“With economic indicators improving over the latter part of 2013 and the credit market remaining very supportive, all signs pointed to an uptick in M&A activity for 2014 at the turn of the year,” he said. Thirty-six percent of the executives expect corporate M&A will be the primary driver. Twenty-six percent expect refinancing will drive credit markets and 23% anticipate private equity funded buyouts with 15% of the financing used for restructuring.

Tea companies routinely secure financing this time of year to insure sufficient goods for the peak sales season. Numi Organic Tea recently obtained $4.75 million to keep pace with its rapid growth in major retail outlets.

Teas from the Oakland, Calif.-based firm can be found in Whole Foods, Stop & Shop, Safeway, Target, Balducci’s and Trader Joe’s. It is also the tea of choice of Marriott and Hyatt foodservice buyers.

Business Capital, which recently provided the $4.75 million credit facility and a $750,000 seasonal over-advance, praised Numi as a company “that cares so much about their suppliers, quality of product, customer experience and our planet. This company’s financing needs were significant and were happy to deliver a solution beyond what most formula based lenders can fund against,” said Chuck Doyle, Managing Director of Business Capital.

“They took the time to understand our complex global business model and deliver a financing structure tailored to ensure the best possible outcome for Numi,” said Ahmed Rahim, CEO of Numi Organic Tea.

Triple caffeine

Triple caffeine

Zest Tea Company

Caffeine fortified Zest Tea is a new loose-leaf and bagged line developed to wake you up in the morning.

Founder James Fayal couldn’t find a traditional tea with enough caffeine to keep him alert so he blended caffeine rich teas, oils and other natural ingredients to triple the caffeine of regular black tea.

“I wanted to increase the energizing caffeine punch, but not at the expense of quality, that’s why we start all of our blends with premium base teas,” he said.

Pomegranate Mojito

Pomegranate Mojito

His proprietary blending process maintains tea’s healthy dose of tannins and antioxidants while avoiding the “jolt and crash” impact of coffee, said Fayal. A cup sustains alertness over a six to eight hour period.

Flavors include Apple Cinnamon, Earl Grey and Blue Lady black teas and Pomegranate Mojito green tea.

The project was crowd funded in a competition co-sponsored by American Express and Venture For America.

Learn more: Zest Tea

Jamba is Juiced Over Drink Green Smoothies

Jamba Juice is rolling out custom-ordered whole food blends.

The new offerings far exceed the nutritional value of carrot juice and squeezed oranges by introducing beets and kale and ginger to the menu. The Orange Fusion combines fresh-squeezed orange juice blended with whole fresh carrots with bananas, mangos, chia seeds, soy milk and nonfat Greek yogurt. An infographic on the company’s website summarizes a survey on beverage preferences that indicated 1 in 5 prefer to drink beets and dark leafy greens in juice rather than eating them whole.

Many of those who participated in the survey believe green juice to be the most nutritious juice, but are skeptical that it could also be great-tasting.

  • More than one-quarter (28%) of U.S. adults say they “fear the look” of green juice;LOGO_JambaJuice
  • Green represents the juice people drink least often
  • 32% say green juice is the one they like the least, and;
  • Only 9% of people like green juice best.

Kale, mangos, passion fruit-mango juice, chia seeds and nonfat Greek yogurt

Kale, mangos, passion fruit-mango juice, chia seeds and nonfat Greek yogurt

“Just like we should be enjoying a wide range of all the colors of the rainbow in the food we eat, drinking colorful fruits and vegetables is an easy way to satisfy your daily requirements, too. Juices made from ingredients like kale, spinach, beets and chia seeds are powerhouses of good nutrition and they can actually taste good,” said Kathleen Zelman, MPH, RD, LD and member of the Jamba Juice Healthy Living Council.

The results of the YouGov study of 2,200 Americans also highlighted a discrepancy between Baby Boomers’ and Millennials’ views on juice. Not only were Millennials more open to green juice, but also to the broader notion of drinking vegetables.

  • Millennials are twice as likely as Boomers to think that vegetables taste better in juice (39% vs 18%);
  • Millennials are twice as likely as Boomers to prefer green juice (13% vs 6%); and,
  • Millennials are twice as likely as Boomers to most often drink green juice (13% vs 6%).
  • Combined, two-thirds (66%) of Americans believe fresh-squeezed juice is healthy.

According to a 2013 report published by the USDA based on MyPlate serving suggestions, men, women and children are only eating 1/3 of the fruit (33%) and 2/3 of the vegetables (63%) they need each day.  “It gives us the opportunity to democratize this really healthy trend that is largely unattainable for most consumers because of either availability or cost,” CEO James White told CNN Money.

Whole food smoothies are available at 50 locations equipped with new juicers and mixers. Whole food juices will be available at 300 of Jamba’s 800 locations later this year.

Learn more: Jamba Juice

Tea Magazine Evolves…

Tea Magazine® a 20-year-old consumer publication for tea enthusiasts is replacing its bi-monthly print edition with a combined print +online content package for its readers, including a new book-style softcover guide to tea published annually.

LOGO_TeaMagazine_400pxIn mid-April ITEM Media will launch The Daily Tea (www.thedailytea.com) a subscription-based tea portal replacing www.teamag.com. Visitors to the site will see a mix of free and paid content, along with new articles each month, and some previously published in Tea Magazine. Subscribers have their choice of several different newsletters — for example, newsletters targeted to those interested in cooking with tea; Yoga and tea; tea travel and terroir.

Subscribers will get at least three new feature articles a month, “…the articles will be accompanied by video, behind-the-scenes interviews and picture galleries, which is a lot more than we could do in print,” said Chief Media Officer Graham Kilshaw.

Since acquiring the magazine in January 2012, “we have built the audience from just a couple of thousand to more than 30,000. Most of this growth has come from our digital platforms, and very little has come from our print media,” said Kilshaw.

“We now see an opportunity to grow our audience significantly beyond its current 30,000 people – digitally. Consequently we are going to make several changes starting in May 2014,” he said.

The 150-page book-style magazine, often referred to as a “bookazine” will have longer in-depth feature articles on science, geography and history and “great photography,” said Kilshaw. There will also be a catalog of tea products, said Kilshaw. The publication will be mailed to all subscribers and sold nationally in bookstores and by grocers including Whole Foods Market.

Chief Media Officer Graham Kilshaw

Chief Media Officer Graham Kilshaw

Annual subscriptions are $24.99 and include the new $9.99 “Tea Magazine 2015 Tea Guide” mailed annually in September.
Kilshaw was upbeat about the new direction which he described as “evolving from predominately print with a little bit of digital to becoming predominately digital with a little bit of print.”

“This is all about aligning our goals and strategy with our resources. Producing the print magazine required us to spend 80 percent of our resources on 20 percent of the content. During the past 24 months print subscriptions increased by a couple of thousand while our digital audience has grown by five times,” he said.

“The change in the mix of media is driven by our readers,” said Kilshaw. “Print generally-speaking attracts an older demographic and we want to reach a broad audience. Younger tea drinkers are forming their tea habits now, experimenting widely and trying out lots of different teas. They represent the future customers of our media clients,” he said, adding , “We want to build a very large audience for the tea community.”

The company expects to soon announce a new content manager to replace Kate Sullivan who left in December.

Learn more: www.thedailytea.com

— — —

Tea Biz serves a core audience of beverage professionals in the belief that insightful journalism informs business decision making. 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.

Tea Magazine Evolves…

PHILADELPHIA, Penn. — Tea Magazine® a 20-year-old consumer publication for tea enthusiasts is replacing its bi-monthly print edition with a combined print +online content package for its readers, including a new book-style softcover guide to tea published annually.

In mid-April ITEM Media will launch The Daily Tea (www.thedailytea.com) a subscription-based tea portal replacing www.teamag.com. Visitors to the site will see a mix of free and paid content, along with new articles each month, and some previously published in Tea Magazine. Subscribers have their choice of several different newsletters — for example, newsletters targeted to those interested in cooking with tea; Yoga and tea; tea travel and terroir.

Chief Media Officer Graham Kilshaw

Chief Media Officer Graham Kilshaw

Subscribers will get at least three new feature articles a month, “…the articles will be accompanied by video, behind-the-scenes interviews and picture galleries, which is a lot more than we could do in print,” said Chief Media Officer Graham Kilshaw.

Since acquiring the magazine in January 2012, “we have built the audience from just a couple of thousand to more than 30,000. Most of this growth has come from our digital platforms, and very little has come from our print media,” said Kilshaw.

“We now see an opportunity to grow our audience significantly beyond its current 30,000 people – digitally. Consequently we are going to make several changes starting in May 2014,” he said.

The 150-page book-style magazine, often referred to as a “bookazine” will have longer in-depth feature articles on science, geography and history and “great photography,” said Kilshaw. There will also be a catalog of tea products, said Kilshaw. The publication will be mailed to all subscribers and sold nationally in bookstores and by grocers including Whole Foods Market.

Annual subscriptions are $24.99 and include the new $9.99 “Tea Magazine 2015 Tea Guide” mailed annually in September.
Kilshaw was upbeat about the new direction which he described as “evolving from predominately print with a little bit of digital to becoming predominately digital with a little bit of print.”

“This is all about aligning our goals and strategy with our resources. Producing the print magazine required us to spend 80 percent of our resources on 20 percent of the content. During the past 24 months print subscriptions increased by a couple of thousand while our digital audience has grown by five times,” he said.

LOGO_TeaMagazine_400px“The change in the mix of media is driven by our readers,” said Kilshaw. “Print generally-speaking attracts an older demographic and we want to reach a broad audience. Younger tea drinkers are forming their tea habits now, experimenting widely and trying out lots of different teas. They represent the future customers of our media clients,” he said, adding , “We want to build a very large audience for the tea community.”

The company expects to soon announce a new content manager to replace Kate Sullivan who left in December.

Learn more: www.thedailytea.com