Need to Know | Over the Cliff | Elemental Exam

Need to Know | Over the Cliff | Elemental Exam

Tea Industry News for the week of July 27

  • Over the Cliff
  • World Tea Expo Goes Virtual
  • Made in America
  • DMCC Expansion Plans
  • Measuring Elements in Tea
Historic contraction follows 23 quarters of economic growth as high unemployment and rising infections make a long recovery likely.

Over the Cliff

Few tea ventures deployed parachutes capable of breaking the fall as the world’s economies catapulted over the second quarter cliff.

The result is closure of several high-profile tea retailers including small independents including 10-year-old Wenham Tea House in Massachusetts and 27-year-old Lucy’s Coffee & Tea in Birmingham, Ala. The Samovar Tea Lounge’s three San Francisco locations are “hibernating” for an unspecified time and the Floating Mountain Tea House will relocate from New York’s upper west side to Croton-on-Hudson upstate. Restaurants that featured fine tea, including Augustine in New York’s Beekman hotel, Vaucluse on Park Avenue and “even the glitzy McDonald’s flagship store off Times Square closed,” according to a list maintained by Eater New York. In July DAVIDsTEA permanently shuttered 213 locations including 42 in the U.S. leaving only 18 in Canada.

The U.S. experienced a record 9.5% drop in economic output, that if left unchecked before the year ends could lead to an unprecedented 32.9% annualized decline in GDP. Europe experienced a 12.1% decline, its worst contraction on record. Canada, which has suffered many fewer infections and COVID-19 deaths than the EU and US, estimates its economic activity will decline 12%, according to Statistics Canada. Retail sales in all the Western countries signal a deep recession with several segments, including food service, plummeting from the end of March and continuing their decline through April. Retail rallies began in May except in the U.S. where a new surge of infections led to a loss of steam by July.

The descent was especially rapid and painful in the U.S. It is difficult to get precise numbers on sales of tea in retail channels. Grocery sales figures are generally good as millions of customers that purchased tea at restaurants and cafes now brew at home. Online sales spiked last spring but are flattening. The tea shop category mirrors the fate that has befallen small independently owned cafes and bars with some segments such as Sunday afternoon tea in tony hotels and at cozy Victorian tearooms located in southern tourist towns virtually annihilated.

“Afternoon tea was devastated in the U.S. in particular—most of those businesses didn’t have a way to pivot online or offer tea-to-go,” writes Abraham Rowe, founder of Sinensis Research in Washington, D.C. Rowe observes that online sales proved to be a lifesaver, “people were loyal to some local shops, and are now shopping online from them.”

“Store closures are down a bit—I don’t have final figures, but hope to run another survey sometime to finalize it,” said Rowe.

As brick and mortar sales at tea merchants slipped over the precipice, online sales increased but not uniformly. An updraft enabled Amazon to glide to the bottom with a year-over-year increase of 34% in tea sales, totaling $29 million for the 52 weeks ending in May, according to Hinge Global. Walmart generated an unexpected $4 billion during the first quarter, up 4% over the same period compared to the previous year. The company announced it intends to become a “omnichannel” business. During the past year Walmart consolidated its online and physical store operations and is focused on expanding e-commerce rather than building new stores.

Amazon and Walmart are the exceptions amid a pandemic that devastated the retail sector. While customers ordered groceries online and had food delivered, very few tea ventures had time to deploy a Plan B. DAVIDsTEA, headquartered in Montreal, Canada, in March closed 231 locations eliminating $12.1 million in second quarter sales. Sales for the three months ended May 2 declined 27.3% to $32.2 million. Wholesale and online revenue climbed $9.3 million to $17.0 million. Online sales reflect the trend identified by Rowe at Sinensis Research: specialty tea buyers online remain loyal to their local tea shop whether in a mall or downtown.

“Sales in grocery stores and pharmacies across Canada continues solid growth,” according to Frank Zitella, who is both CFO and COO at DAVIDsTEA. He wrote in a July 31 earnings report that “with first quarter sales growth of over 120% year-over-year, we are extremely pleased that our loyal tea-loving customers have shifted to buying our teas online, and in supermarkets and drugstores. The strong performance of these sales channels provided us with the confidence that we are on the right path for the future.”

See: DAVIDsTEA Reorganizes for additional detail.

Calls to wholesalers confirm that while online sales have eased the painful loss of tea house closures, declining monthly orders from restaurants and hotels resulted in orders that are no where near pre-pandemic norms. The collapse of restaurant dining, which accounts for 20% of tea sales globally, is the biggest cause. Some 2.2 million restaurants worldwide are not expected to survive through 2020. Closings have a greater impact on coffee sales in the U.S. but in tea drinking nations like the UK and Russia the shift from away-from-home to at-home preparation has been significant.

McKinsey Small Business Forecast

“In a muted recovery, it could take more than five years for the most affected sectors to get back to 2019-level contributions to GDP,” according to McKinsey & Company. Small businesses, which are hard hit due to lower margins and limited reserves, constitute 68% of the food services and accommodations sector and are not expected to recover before the first quarter 2024 stretching into 2025. Arts, entertainment and recreation sectors will take even longer, according to U.S. Small Business Recovery After the COVID-19 Crisis.

“After the 2008 recession, larger companies recovered to their pre-crisis contribution to GDP in an average of four years, while smaller ones took an average of six,” writes McKinsey Global Institute.

“Improving operations and adapting business models can help small businesses in many industries recover,” observes McKinsey, but muted demand, operational challenges due to health and safety restrictions and new customer expectations all take time: “Finding the cash to do so may be a stretch.”

Working capital is often tied up in inventory and small businesses have added cost servicing their debt. A McKinsey survey of 1000 small firms finds the cost of servicing debt averages 30% of revenue. The shift to off-premise delivery and carryout “is likely to erode profitability and increase packaging costs and hinder their ability to sell high-margin items.” McKinsey found that nearly 40% of small businesses in the restaurant sector operate at a loss or break-even.

Solutions suggested in the report involve technology and marketing.

“Independent restaurants might digitize their businesses by using aggregators to increase their visibility, reach potential diners, and outsource their delivery,” write McKinsey authors Andre Dua, Deepa Mahajan, Lucienne Oyer and Sree Ramaswamy.

“Aggregators might help by offering additional on-boarding support or spotlighting small, independent restaurants on their platforms. Some combination of public and private aid may also be necessary for small restaurants, especially offering technical and financial support they’ll need to compete with larger ones that can build contact-less solutions at scale,” according to the report.

“The crisis has exposed financial frailties that have built over time, and the next normal could impose additional burdens,” according to the authors, who add, “The survival of US small businesses across the economy will require new business models and technology solutions that few have the resources to finance.”

World Tea Expo Goes Virtual

Organizers of the World Tea Expo this week announced a virtual summit scheduled for the first week of November.

The World Tea Conference + Expo was postponed from June 14-16 to October. It was later canceled due to restrictions on events drawing large crowds to the Colorado Convention Center, in Denver Colo.

The World Tea Virtual Summit + Resources is scheduled for Nov. 2-4.

“The virtual summit will introduce online networking and lead generation,” according to Questex, organizers of the event.

Cat Coughran, brand leader for World Tea Media, said the company is “exploring new ideas such as bringing international delegates and speakers in virtually, doing online buyer and seller 1-to-1 sessions as well as other innovations in sanitation, social distancing, workplace safety, etc. We plan to show working examples for other businesses in our industry.”

The next live, in-person event is scheduled for July 14-16, 2021.

Learn more: World Tea Expo

Made in America

Great quantities of tea are blended in America but according to the Made in America Act, a product manufactured in the US that claims to be American made, must contain at least 50% US ingredients.

A Lexology post this week discusses a class action suit “that calls out Bigelow Tea for pushing unpatriotic tea.”

The post summarizes a report by Linda Goldstein and Amy Ralph Mudge with the Washington D.C. based law firm Baker & Hostetler.

The complaint, filed in California’s Central District Court, by Kimberly Banks and Carol Cantwell, alleges that by promoting their tea as “Manufactured in the USA 100% American family owned” and “America’s classic” Bigelow violates provisions of the California Consumer Legal Remedies Act, False Advertising Law, Unfair Competition Law, and Breach of Express and Implied Warranty.

Plaintiffs allege themselves and other consumers, “purchased the Bigelow Tea products because they reasonably believed, based on the packaging and advertising, that these products are American-made. However, the products are comprised solely of foreign-sourced and processed tea.”

Had plaintiffs known the truth “they would have paid less for them or they would not have purchased them at all,” reads the complaint.

Bigelow Tea responded Friday with the following statement: “Bigelow unequivocally disputes the allegations in this California based lawsuit.”

“Every box with our statement of being “Manufactured in the USA” refers to the fact these teas are produced and distributed by one of our three Bigelow owned and operated manufacturing facilities, located in Connecticut, Kentucky, and Idaho.  In addition, our packaging clearly states that our teas are “Blended and Packaged in the USA”.  Bigelow continues to be open and transparent about our global sourcing of ingredients (many of which come from the United States) on both our website and the packaging of select varieties of our teas.”

“Frivolous lawsuits such as these are designed to purposefully damage the reputation and finances of the companies they target. Bigelow Tea is proud to be a 100% American family owned and operated manufacturing company and we are prepared to vigorously defend ourselves against this meritless lawsuit,” writes Bigelow.

While Bigelow owns the largest US tea farm, The Charleston Tea Garden, located in Charleston, South Carolina, the tea garden markets its tea under its own brand. The plantation website makes it clear that “Bigelow Teas are not made from any of the tea leaves grown or harvested here at the Charleston Tea Garden. Charleston Tea Garden teas are the only teas made from the tea leaves produced by the Camellia Sinensis plants grown in the fields of the Charleston Tea Garden.”

DMCC Expansion Plans

UAE Prime Minister and Ruler of Dubai Sheikh Mohammed tours DMCC’s tea and coffee centers. Photo courtesy DMCC.

Fifteen years ago, Ahmed Bin Sulayem, executive chairman and chief executive officer of Dubai’s Multi Commodity Centre (DMCC) envisioned a tea trading hub that would service the world’s largest growing regions.

Today DMCC processes 48,000 metric tons of tea annually, accounting for 60% of global re-exports. The facility has processed 320 million kilos since its inception. The modern port facilities and airfreight capability attracted 800 new companies during the first half of 2020, said Bin Sulayem, adding that the months of May and June saw a “noticeable uptick despite an overall softer business climate.”

The tea center and atmospheric-controlled warehouse, which stores 5,000 metric tons, has a turnover of $184 million annually.

Commodity teas from 13 origins are blended for consistency and these blends, are often mixed to make herbal, floral inclusions sold as some of the world’s most popular teas. Examples include Earl Grey and the many breakfast blends distinct to markets in Ireland, Scotland, and England. Classic brands processed include Lipton and Red Rose as well as local blenders such as Tea Trading International DMCC, a Dubai-based British SME that markets brands Vertea and The Leaf to food-service catering, hotel, and resort customers.

DMCC’s tea and its new coffee center drew the attention recently of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, during a visit reported by Gulf Today.

“Under the guidance of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, DMCC is fast becoming the global hub for the tea and coffee industry. Our ambitious plans to triple our capacity in the near future are strategically anchored in Dubai’s drive and ability to facilitate world trade,” said Bin Sulayem.

In a release by Arjun Katyal, of McLeod Russel Middle East DMCC, said, “The DMCC’s expansion plans are incredibly exciting, and represent a huge boost to Dubai’s status as a leading global trade hub. We have been a DMCC Tea Centre member since 2011, and have seen, first-hand, the expertise, experience and vision that has shaped the success of this facility. McLeod Russel Middle East DMCC has its sights set on continued growth, and we will continue to engage new markets and reach a wider customer base than ever before. The DMCC Tea Centre has an important role to play in our success story, and we congratulate them on their latest announcement.”

Since 2005 DMCC has become one of the fastest growing free zones in the world with more than 17,000 companies conducting business in a number of sectors including precious metals, tea and coffee, and food commodities. Establishments and individuals operating in DMCC are exempt from all taxes including income tax, for a period of 50 years.

Testing tea for trace elements

Measuring Elements in Tea

Minerals are essential to the heath of tea plants and for tea drinkers to experience the full range of tea flavor, but too much of even the best of things in life can create problems.

Researchers Dr. Ying Guo, Dr. Seungjin Lee, and Dr. Tae Lee at Georgia Gwinnett College are currently engaged in testing five commonly available tea brands using a handheld Laser Induced Breakdown Spectroscopy (LIBS) unit manufactured by SciAps. The Z-300 analyzer detects very low concentrations of mineral and potentially harmful heavy elements.

The team, whose lab work is temporarily suspended during the pandemic, detected all of the following minerals and alkali metals (Cs, K, Li, Na) in five popular tea brands. The three most common minerals were carbon, calcium, and magnesium in all five samples. Several heavy metals were also present in all five samples including Cd and Cr which are toxic in very low concentrations.

“(Before the shutdown), we obtained the spectra of tea samples and were able to qualitatively determine the elements present,” Guo says. The next step will be to calibrate and complete the quantitative analysis, she says.

ElementDaily Intake Thresholds
Al (Aluminum)0.10–0.12 mg Al/kg/day for adult
C (Carbon)None
Ca (Calcium)1300 mg/day [harmful > 1500 mg/day]
Cd (Cadmium)FAO/WHO rules limit Cd to 0.2 mg/kg
Cr (Chromium)120 µg/day [harmful > 200 µg/dan
K (Potassium)4700 mg/day [harm depends on weight]*
Li (Lithium)Lithium toxicity level is 1.5 mEq/L
Mg (Magnesium)320-420 mg/day (varies with age)
Na (Sodium)Less than 2300 mg/day
P (Phosphorus)1000 mg/day [harmful > 250 mg]
Si (Silicon)Elemental silicon is an inert material
Source: US FDA and National Institute of Health

Researchers pelletized tea grains from each brand and measured the intensities of emission spectra at different wavelengths to determine the presence of elements of interest in the samples. Results were validated by inductively coupled plasma mass spectroscopy.

Analyzer manufacturer SciAps notes that “minerals play an important role in maintaining the human body. For example, Ca helps with the functions of muscle contraction, enzyme activity, healthy bones and teeth, blood clotting, transmission of nerve impulses, and regulating heartbeat. K can help reduce risks for certain diseases such as stroke, kidney stones, and hypertension. Even though those are beneficial elements to the human body, there is still a suggested daily intake limit.”

Dr. Ying Guo

The article states that “additionally, tea may be contaminated by heavy metals, “either as a result of uptake from soil or from atmospheric dispersion due to vehicular or human activities,” according to Guo. This is what led them to investigate the levels of both the beneficial minerals

(e.g., potassium and calcium) and unwanted contaminant elements (e.g., cadmium and chromium) present in different tea brands. Heavy metals can be highly toxic even at a very low concentration. LIBS was able to detect the presence of these metals in all five samples.

The following table lists the quantities of each element by relative abundance for each tea brand.

Table courtesy Dr. Ying Guo, Georgia Gwinnett College

The research has not been published, but once reviewed, “By comparing with recommended daily intake limits and reference dose, we’ll be able to provide insights on daily consumption limits of tea in order to avoid too much intake of toxic elements,” says Guo.

[Editor’s Note: Tea Biz will follow up once the research is published]

Reversal Forces New Lockdowns

After flattening the COVID curve in April and May it began sloping upward in June in the U.S. while Europe continued to suppress spread of the coronavirus. July has since become the worst month on record for COVID spread with 1.9 million new infections and 1,000 deaths per day, bringing the U.S. total to 4.5 million who have tested positive. The virus is now present in populations young and old in every state with infections rising in more than half the U.S. states. Globally there are more than 18 million cases with deaths approaching 700,000. About 6% of those who have tested positive perished. On a hopeful note, 94% (11 million) have recovered. The U.S. continues to lead country totals but Brazil (2.7 million) and India (1.8 million) are hot spots. The UK, Spain, Peru and Chile experienced death rates greater than 500 per 1 million population. More than 250,000 have died with a high of 6,900 per day in April that dipped for about a month before moving seven-day average of 5,600 globally in July.


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Need to Know | Drink Plants | Enshi Floods

Need to Know | Drink Plants | Enshi Floods

Tea Industry News for the week of July 20

  • Drink Plants
  • Tea Outlook Promising
  • New Teatulia Tea CEO
  • Enshi Floods
  • Bigelow Wellness
An all-plant tea assortment of green and black tea, floral, fruit, and berry botanicals.

Drink Plants

“Consumers across all generations are re-shaping the landscape for beverage product development,” according to a Cargill Insights Report titled Blending, Brewing, and Blurring the Lines… Creating a New Breed of Beverages.

“Traditional beverage categorizations are losing relevance, which is blurring the lines of classic categories and creating opportunities—especially for coffee and tea manufacturers—to meet these demands at the expense of soft drinks,” Cargill writes.

Tea is the go-to beverage in the nonalcoholic market which is estimated at $854 billion globally. Euromonitor estimates the value of RTD (ready-to-drink) tea at $67 billion globally.

“Beverages that are inherently functional have seen growing momentum, which has paved the way for new beverage products touting specific health benefits, according to The Hartman Group’s report, “Modern Beverage Culture.” Consumers are increasingly conscious of beverage calories, and they now want a drink to do more—such as provide energy, added protein, or provide other nutritional benefits,” according to the Insights Report.

“Millennials are the poster children of this new beverage era. Their demands and aspirations are driving much of this emerging beverage culture,” according to The Hartman Group. A consumer survey by Hartman reveals “nearly three in four millennials (73%) always have a beverage on hand, compared to Gen Xers (63%) and Boomer (58%).”

Cargill Report: Note the desire for more tea (22%)

“Millennials say that beverages play an important role in their health and wellness and that they like beverages to do something such as provide energy or nutrients,” according to Cargill. “The win-win may be to address consumers’ changing and variable aspirations for beverage consumption with new drinks that mix both function and fun (think tea-beer combos or hard kombucha). These products will likely see a growing appeal, especially among younger consumers,” according to Cargill.

“More than half of consumers are now using products made with plant-based ingredients, and this trend is only going to increase,” according to Cargill. “Powerhouse beverage categories like coffee and tea are leading the way by working to provide new consumption options while addressing health and wellness trends. Coffee and tea have existing health halos; they have been able to capitalize on this to support the creation of healthier energy drinks, while also serving as a better-for-you flavoring or mixer in high-end cocktails.”

Tea on Trend

Non-alcoholic beverages will generate $10 billion more in sales this year, reaching $160 billion, according to market research contained in The U.S. Beverage Market Outlook 2020.

Proprietory surveys by Packaged Facts show significant changes in retail channel trends and consumer motivations across eight retail channels.

“Despite the economic impact of the coronavirus pandemic, large segments of the U.S. food and beverage industry have managed to balance losses in the foodservice sector with gains on the retail side as consumers even now continue to shift their food and beverage spending from restaurants to stocking groceries at home,” according to Packaged Facts.

“We predict sales will spike in 2020 due to the impact of the coronavirus but will likely decline in 2021 as demand reverts back to more normal levels before returning to typical growth patterns from 2022 to 2024,” says Jennifer Mapes-Christ, food industry publisher for Packaged Facts. The study predicts US nonalcoholic beverage sales of $170 billion in 2024.

Plant-Based Beverages are Trending

Plant-based beverages are a hot trend in the market as consumers increasingly integrate plant-based foods and drinks into their diets, according to Packaged Facts.

What’s driving new interest in the segment:

― consumer demand for healthier, natural products

― consumer demand for more and better protein sources

― the consumer perception that plant-based food is more environmentally sustainable

― the increasing number of people who identify as flexitarians, consuming more vegetarian or vegan meals but not exclusively eating that way

The report also cites the popularity of functional and wellness beverages, specifically tea.

“As with all food categories, consumers are demanding more from beverages. Beyond reduced sugar and cleaner labels, people want drinks to make them feel better, stay healthier, and perform at higher levels. The coronavirus pandemic has further elevated people’s desire for products that help keep them healthy. Immunity-boosting products and ingredients had been trending over the last several years already and have been jumping off the shelves as people look to stay healthy amidst the coronavirus pandemic,” according to the report.

“Turmeric has been perhaps the hottest ingredient to boost immunity and is a cornerstone of many new products, along with ingredients such as ginger and Echinacea. Beyond these, marketers continue to enhance drink functionality with ingredients such as antioxidants, adaptogens, vitamins, probiotics, Coenzyme Q10, and BCAAs (branched-chain amino acids),” according to the report.

Click here to obtain a copy.

Teatulia Names New CEO

Co-founder Linda Appel Lipsius is stepping down as CEO of Teatulia Organic Teas. COO Tim Bradley will take her place.

Denver-based Teatulia, founded in 2006, partners with growers in Bangladesh to supply organic teas and herbs used in making a range of hot teas, iced teas, and canned teas, including a newly introduced sparkling soda sold in foodservice and grocery.

The company also operates the Teatulia Tea & Coffee Bar next to its Denver, Colo., headquarters.

“Lipsius has built a universally-respected brand known for doing things better: From the 3,000-acre regenerative garden itself to Teatulia’s stunningly sustainable packaging to the long list of awards Teatulia has received for quality and using business as a force for good,” according to the company.

Bradley previously worked 10 years as COO at Open Road Snacks in Centennial, Colo. He joined Teatulia in July 2017. A former consultant, he is endorsed for his work in sales and marketing and brand management.

“We are grateful beyond words for her contributions over her many years at the helm, and excited to foster the mission and continue the growth Linda nurtured as founder and CEO,” writes Bradley.

“Linda and I have worked together for the last three years to create a team that is truly positioned to take this company to new heights,” he said.

Lipsius credited “a mighty team of the most passionate, creative, tenacious and intelligent individuals I have ever known” for the company’s success during her tenture, as well as “my most extraordinary partners throughout the journey – Kazi Anis Ahmed, Kazi Inam Ahmed, and Kazi Nabil Ahmed MP.”

Submerged street buses in Enshi, China. Massive flooding eases Chinese drought.

Too Much Rain Relief

The tea-growing region drained by the Lancang (Mekong) River is humid, with annual rainfall greater than 800 millimeters annually, yet a 10-year drought persists. Last year the region received 888.4 millimeters of rainfall according to meteorologists, but 180 reservoirs remain bone dry and 100 rivers ceased flowing as of April 15, according to the Yunnan Water Resource Department.

Near constant rainfall since the beginning of the month promises relief but at a high cost. On July 3 Kunming was drenched, leading to several deaths, and the displacement of thousands as well as significant crop loss along the Baishui river (which rose 27-feet overnight).

Enshi, the center of tea production in Hubei Province, has seen the worst flooding in decades with 10,000 along the Yangtze River trapped in their homes. Damage is estimated at $11.5 billion with 28,000 homes lost. The water level at the Three Gorges Dam, the world’s largest hydroelectric facility, is 50 feet above its flood-limit level with inflows of 61 million liters a second, according to the Xinhua News Agency.

Yunnan, which is home to 46 million people, sits on a rugged mountainous plateau sloping from the northern highlands south. During the period 1950 to 2012, the Province, experienced 59 drought years, half considered severe.

Droughts have occurred more frequently in recent years, a condition attributed to global climate change. More than 80% of Yunnan’s rainfall now occurs during the period of May through October. Winters are dry and getting warmer. There is insufficient capacity in reservoirs to supply agricultural needs during periods of unusually high temperatures. The drought, which began in June 2019 resulted in shortages of drinking water in Menghai County and lowered yields of Pu’er by a third according to some growers.

In past years the north and eastern sections of the province were more susceptible to dry weather. Now the tea-rich hills in the southwest are hardest hit. Annual precipitation in the Lancang River basin in 2019 was 680.4 mm, according to the China Meteorological Agency. The total is about 25% less than its long-term average, according to a report by CGTN.

A studio published in the journal Ambio reveals that during the period 1978-1996, cultivated land increased 6.1% (167,400 hectares) in Yunnan. A report describing the impact of droughts on reservoirs and streamflow found the frequency of severe and exceptional droughts in the Lancang-Mekong River Basin has increased over the past 119 years, and all countries in the upstream and downstream of the basin have been severely affected. 

As the downpour continues, Song Lianchun, director of China’s National Climate Center, told reporters that the number of days of heavy rain in China has risen by roughly 4% each decade over the past six decades.

New line of cold water infused botanicals from the Bigelow Tea Company

Bigelow Botanicals

Bigelow Tea® has introduced a new line of cold water infused botanicals. Bigelow Botanicals Cold Water Infusions use real fruit and herbal combinations to inspire everyone to stay healthy and hydrated throughout the day, according to the company. The infusions are a “healthy alternative to sugary drinks, are zero-calorie, caffeine-free, and contain no artificial anything.”

Easily infused by the glass or on-the-go, tea drinkers simply place a tea bag in cold water for a few minutes, squeeze the bag and stir, or leave in for more flavor.

Bigelow Tea uses only high-quality ingredients and has specially curated the following botanical infusions that slowly come alive once cold water is added. Flavors include:

  • Watermelon Cucumber Mint
  • Blackberry Raspberry Hibiscus
  • Cranberry Lime Honeysuckle
  • Blueberry Citrus Basil
  • Strawberry Lemon Orange Blossom

To ensure each cold-water infusion makes a positive impact on the environment Bigelow uses minimal packaging and no plastic bottles (waste reduction is a top priority at this certified B Corporation). The overwrap used to hold each bag works to keep each flavor fresh until sipped by the glass or used with reusable water bottles for the on-the-go consumer.

Cindi Bigelow, third-generation president & CEO writes that “With today’s growing awareness and need to live a healthy lifestyle, we created these beautiful cold water infusion blends to support your wellness choices.”

“It’s truly unlike anything else and really does help you to drink more water throughout the day,” writes Bigelow. The range is gluten-free and non-GMO. The botanicals are sold in boxes of 18 individually-wrapped bags at a suggested retail price of $3.99, about 22-cents per serving.

Learn more at www.bigelowtea.com.

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 | Changing Consumer Behavior

Tea industry news for the week of April 20

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

Monitoring Consumer Behavior

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

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

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

Global Impact

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

Business News

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

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

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

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

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

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

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

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

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

Physical Distancing on 1,500 Acres

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

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

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

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

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

Production News

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

In Sri Lanka, February Yield Marks Decade Low

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

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

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

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

Retail News

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

Tea cubes
Millennia also markets cubes of fresh tea leaves

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

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

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

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

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

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

Need to Know | E-Auctions | Pandemic Harvest

Tea industry news for the week of April 6

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

Closely Monitor Tea Auctions

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

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

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

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

Tea Retail

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

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

China Harvest Underway

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

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

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

UPCOMING EVENTS

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

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

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

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

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

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

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

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

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

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

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

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

Morocco Hoards Chinese Tea

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

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

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

London’s Fortnum & Mason Markets Children’s Herbals

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

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

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

Teatime for Rampaging Vikings

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

Q|A with World Tea Expo’s New Owners – Need to Know

It’s only been a week but Penton Group President Fred Linder was gracious in answering five questions on the future of the World Tea Expo and its ancillary business ventures. Linder will oversee World Tea Expo as part of Penton Exhibition Services which supports more than 100 events across five sectors. Linder also runs the company’s New Hope Network.

LOGO-PentonPenton is a large business-to-business publishing company based in New York. It’s flagship tradeshows include Natural Products Expo (West and East) and the Multi-Unit Food Service Operators Conference. The company also publishes Nation’s Restaurant News, Natural Foods Merchandiser and Supermarket News.

In announcing the acquisition Linder retained the core team that includes Event Manager Samantha Hammer Mitchell, Education Program Manager Monique Hatchett, Customer Service Manager Edie Gillette and Tea Academy Director of Online Education Donna Fellman. Hammer Mitchell is a former Penton event manager. Click here for details of the sale.

Tea Biz: Mr. Linder please share your vision for World Tea Expo and its ancillary educational program, competitions, industry awards and newsletter.

Fred_Linder_RGB

Fred Linder

Linder: It’s a bit too soon for me to articulate a strategy for the individual part of the business.

We bought World Tea Media because we like the Tea category and we feel that we can help the industry grow as we have proven in other Food sectors, most notably in the Natural Products industry.

I also think that World Tea Expo is a better fit inside of Penton. We will work with the leadership within the Tea group to evaluate what is working and what may need improvement.

Tea Biz: The tea community wryly observes “there are beverages, and there is tea. They are not the same thing.” During recent years the Expo floor was opened to many classes of beverages from artichoke, coconut and vitamin water to liquid herbal supplements. Will that continue?

Linder: Again, that will be determined in conjunction with the Tea leadership team. From a very general point of view, I am not a fan of diluting, but I also don’t think it’s an all or nothing approach. We have an excellent track record in other industries of making sure that attendees and exhibitors have an authentic experience that is aligned with their and the industry’s expectations, while still allowing for growth and innovation. Authenticity is key.

LOGO-WorldTeaExpoTea Biz: The Expo is noted for an exceptional educational program seen by industry veterans as catering mainly to those who want to get into the business. What will Penton do to entice the best and brightest veteran retailers, wholesalers and exporters to attend and share their insights and expertise both from the podium and casually on the exhibition floor? Vendors realized more sales and bigger sales in the past. Attracting premium buyers to the event is the tide that lifts all boats. How will Penton draw quality buyers to the event?

Linder: We have an excellent database across Penton and deep experience with education, most notably, for innovators and entrepreneurs. In addition, our marketing capabilities are second to none. By combining these disciplines with the expertise within the Tea team we will create a winning formula for growth in both quality and quantity. Ultimately, the success of any show is about the right attendees having the right conversations with the right exhibitors through a mix of networking and a vibrant education program.

Tea Biz: Will Penton through its North American Tea Competition take a leadership role in defining and advancing standards for specialty tea?

Linder: At this point I don’t know enough to answer this question. We did have standards programs in other businesses so we are experienced in the mechanics of what that could look like, but what Penton’s role in that might be is an unknown to me at this time.

I will say that although we have owned the business for only a week, I am really impressed by the staff and their enthusiasm and passion for the business and the industry. I will rely on their expertise and guidance a lot on where and how Penton will best fit into aid and abet in the growth of the category.

There’s much to learn, but through our broad experience with education, content trade shows, combined with an understanding of the food and food retailing sectors it will be a very exciting time for all of us. I am very bullish on the future.

BIO

Fredrik M. Linder is an expert in natural products and the health and wellness arena and has a passion for the industry and its mission. Fred’s industry relationships are deep, which allows him to understand where all of the companies and products fit together, how they are trending and gives him direct access to the top leaders in the industry who look to him as a sounding board. He was instrumental in the development of Penton’s data and insight products for the natural products industry. Fred also runs Penton Event Services supporting all Penton best in class events. In addition, Fred is responsible for Club Industry, LDI and the newly acquired World Tea Media assets. Fred serves on several boards including SISO and the Company Council of IADSA (International Alliance for Dietary Supplement Associations). In the past he served on the boards of the Tuberous Sclerosis Alliance, The Coalition to Preserve DSHEA, Bastyr University, and The Dietary Supplement Education Alliance. In addition to New Hope and the Penton Exhibitions Services team, Fred oversees Club Industry and Live Design. Prior, he was employed with Meredith Corporation, Capital Cities/ABC and Universal Media.

Fredrik M. Linder
Group President, Lifestyle & Penton Exhibition Services

Fred.Linder@penton.com

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


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

Penton Acquires World Tea Expo – Need to Know

World Tea Expo was acquired last week by Penton, a large New York based business-to-business publishing company with a portfolio of trade events serving the natural food industry.

LOGO-WorldTeaExpoThe transition of the tradeshow, the North American Tea Championship, the World Tea Academy and World Tea News from Ohio-based F+W Media, A Content + eCommerce Company is underway. Terms were not disclosed.

Penton announced that Group President Fred Linder will oversee World Tea Expo as part of Penton Exhibition Services which supports more than 100 Penton events across five sectors. Linder also runs the company’s New Hope Network.

LOGO-Penton“An essential element of our strategy is to focus on high-growth sectors and extend leadership positions. World Tea Media is at the forefront of the U.S. tea industry and is poised to double its size over the next five years,” said Linder. “This portfolio of events and digital products perfectly complements our assets. We have the ability to nurture and grow entrepreneurial businesses through our understanding of consumer behavior, product innovation, future trends and exceptional relationships,” he said.

“The show will remain a standalone with World Tea Media operating as a separate entity,” said Kate Spellman, Chief Marketing Officer at Penton.

Key staff members were retained including Event Manager Samantha Hammer Mitchell, Education Program Manager Monique Hatchett, Customer Service Manager Edie Gillette and Tea Academy Director of Online Education Donna Fellman. Hammer Mitchell is a former Penton event manager.

“We’re excited to work with the team at World Tea Media to further extend their value as an information resource for the global tea industry, with an emphasis on the growing specialty, premium tea and healthy beverage segments,” said Linder.

Penton dominates the publishing sector for marketers of natural consumer packaged goods brands, retailers, suppliers, and investors. The Natural Products Expo East and West tradeshows have grown by 20%, according to the release. There were 2,700 exhibiting companies and 634 first-time exhibitors in 2015.

LOGO-NaturalProductsExpoWestNatural Products West annually draws more than 75,000 attendees to Anaheim. Expo West and the smaller Natural Products East currently host a big selection of tea vendors, many of whom previously exhibited at World Tea Expo. The list of more than 200 exhibiting tea companies includes AOI, Argo Tea, Bigelow, Choice Organic, Davidson’s Organic, Harney & Sons, Hain Celestial, Inko’s Tea, Mighty Leaf, Stash Tea Co., Steaz, Teapigs, Traditional Medicinals, Third Street Chai, Twinings, and Zhena’s Gypsy Tea. Click here for a list of tea exhibitors at the March 2016 Expo West. Click here to see a list of tea exhibitors scheduled to attend the June 2016 World Tea Expo.

The Penton press release explains the company “has created a formula to nurture and grow innovative entrepreneurial businesses in emerging markets into large retailers with mass distribution. Penton also has the ability to tap into large food manufacturers through its leading food brands — Multi-Unit Food Service Operators Conference (MUFSO), Nation’s Restaurant News (NRN) and Supermarket News.

Penton will combine its learning’s from both the natural products and food marketplaces to accelerate the growth of tea and beverage companies, according to the release. Penton is a private company owned by MidOcean Partners and Wasserstein & Co., LP. The company “empowers nearly 20 million business decision makers in markets that drive more than 12 trillion dollars in purchases each year,” according to the release.

Jim Ogle, acting CEO at F+W said that when the company acquired World Tea Media “we set our sights on healthy beverage, coffee, and food markets. However, our core competency has been and will remain in our enthusiast, niche communities. We know the World Tea brand and our team is going to be a great fit with our colleagues at Penton.”

F+W is experiencing a reorganization following the departure of Chairman and CEO David Nussbaum. Founded as a traditional publisher, since 2008 F+W has grown its ecommerce business from one store and $6 million in revenue to 31 individual ecommerce stores with expected revenue in excess of $65 million for 2015, according to an interview with Nussbaum in Publishing Executive.

World Tea Expo launched a dozen years ago in Las Vegas. It was operated by George and Kim Frost Jage for a decade before they sold to F+W in January 2012. The couple continued to manage the event through 2013. Two years ago the show moved to Long Beach, Calif., where the latest edition was produced last May.

World Tea on the Road scheduled for Oct. 10-11 in Boston was canceled. The next roadshow is a Chicago event scheduled for Nov. 7-8. Click here to register.

Ten years ago the show was among the fastest growing in the U.S. Exhibitors numbered more than 300 and attendance topped 5,000 but has since declined. Expo retained a reputation for superior retail training and its educational program however and has spawned several related services including the widely distributed weekly World Tea News, tea championships and tea academy.

World Tea Expo

The next Expo will return to Las Vegas June 15-17, 2016 at the Las Vegas Convention Center. Pre-conference programs begin June 13-14. There are currently 150 exhibitors listed for the show. World Tea Expo focuses on the premium tea segment including Chinese, Taiwan, Indian and Korean exhibitors as well as many U.S. based tea vendors. Firms purchasing significant space on the show floor include International Tea Importers (ITI), Teas Etc., QTrade Teas & Herbs and similar mid-sized tea importers and blenders. Attendees include buyers with purchasing influence representing grocery chains, mass merchandisers, independent retailers, tea shops and coffee houses from the U.S. and 46 countries.

World Tea Academy

An online tea certification and education program for professionals launched in 2014. It is managed by Donna Fellman. The program has graduated 233 students from 29 countries. The majority who enroll are from the U.S. and Canada. Courses cost $325 to $400. “Test only” certifications are $125. There is a core curriculum presenting courses on essentials and advanced courses. Some of the more popular are the biochemistry of tea, presentation and blending, and understanding tea culture.

North American Tea Championships

The next competition is the 2015 Packaged Single Service Class which for the first time will accept K-Cups. The entry deadline is Oct. 30. Click here for a list of the Spring Harvest Class winners July 30-31.

World Tea News

Launched in 2005, the newsletter was distributed to 2,000 readers every two weeks. Founder George Jage described a mission “to deliver clear, concise updates on trends, breaking news and product releases. Buyers have limited time and they need brief but focused information to best understand this increasingly popular and powerful beverage category,” he said. The newsletter was re-launched in 2011 with delivery to 14,000 readers. The next weekly issue is scheduled for delivery Tuesday.

Sources: World Tea Media, F+W, Penton.

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


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

Locating the Richest Tea Retailers – Need to Know

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

You can experiment with it free online.

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

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

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

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

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

TEABIZ150831_ART_StoreComparison2

Methodology

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

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


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