Need to Know

Tea Industry News for the Week of May 11.

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

Tea Export Value Declined in 2019

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

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

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

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

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

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

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

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

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

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

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

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

Tea & Tariffs

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

Or maybe, not.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Reenergize Local Consumption

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

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

Learn more: Tea for Unity

Tea is Piling Up

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

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

U.S. Consumers Remain Wary of Reopening

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

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

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

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

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

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

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

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

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

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

Next episode: “What Consumers Want Right Now.”

EVENTS

Attend the SofaSummit on International Tea Day

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

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

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

Click to learn more: International Tea Day.

UK Tea & Infusions Association

Raising Our Cup to All Tea Drinkers

The

Participants (in order of appearance) include:

Yu Lu, China Chamber of Commerce CCFNA

Rajah Banerjee, Makaibari

Arun Singh, Tea Vision

Ketan Patel, Jalinga Tea

Stephen Twining, Twinings

Alfred Njage, KTDA

Cindi Bigelow, Bigelow Tea

Gabriella Lombardi, Cha Tea Atelier

Joyce Maina, Cambridge Tea Academy

Will Battle, Fine Tea Merchants

Joe Panter, Camellia PLC

Ramaz Chanturiya, Tea Masters Cup (Russia)

Carolina Okulovich, Don Basilio

Rona Tison, ItoEn

James Norwood Pratt, Author

Jane Pettigrew, UK Tea Academy

Kevin Gascoyne, Camellia Sinensis

Jeff Fuchs, Tea Horse Road

Tania Stacey & David Lyons, Cuppa Cha & AUSTCS

Cecilia Corral, Tian Té Mexico

Fred Yoo, Myung Wong Cultural Foundation

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

Virtual Tea Tasting

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

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

Meeting ID: 999 784 9844

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

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


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

Curious about tea? Subscribe free to Tea Journey Magazine

Need to Know

Tea Industry News for the week of April 27

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

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

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

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

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

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

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

Revenue Forecast

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

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

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

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

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

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

See related: Tea Shop Closings.

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

Consumer Behavior Insights

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

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

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

Sri Lankan Tea Exports Decline

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

Retail Innovations

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

Free Meal Monday

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

Samovar Founder Jesse Jacobs

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

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

Upcoming Events

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

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

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

Global 1QTR GDP

Tea Shop Closings

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

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

CANADA

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

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

UNITED STATES

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

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

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

Like father, like son

Only a few hours remain in the already-successful Kickstarter campaign to launch Nepal Tea, LLC. This is the time to pour it on. Donors can contribute through Wednesday, March 8. – Dan Bolton


Nischal Banskota at Kanchanjangha Tea Estate

Nishchal Banskota is 24.

He is pictured at right in his not-so-long-ago teens, perched on a rock in the family’s Kanchanjangha Tea Estate, the first tea garden in Nepal to achieve organic certification.

His father, Deepak Prakash Baskota, is nearing four score. The path these two men travel closely adheres to the ancient proverb “Like father, like son” a beloved truth first published in the 1300s but with an oral tradition as old as mankind.

Nishchal is Deepak and Dambar Baskota’s youngest son. He graduated last year from Colby-Sawyer College in New London, New Hampshire, settled in Jersey City, NJ and in May 2016 launched Nepal Tea, LLC.

Nepal Tea is one of very few companies that imports single-origin tea direct from the garden. This guarantees quality and freshness and a good return for growers who can bypass middle-men in the supply chain.

“Not only does Nepal Tea believe in providing the best quality tea to the tea drinkers around the world,” Nishchal says proudly, “It infallibly does so with the “Do Good to Others” motto and farmer’s first approach. This is what distinguishes us from the numerous commercial tea whole-sellers/retailers.”

Did you hear his resolve in that statement?

Six decades ago when his father was only 15 year old, Deepak Prakash Baskota recalls the first time he saw the thousands of hectares of tea gardens that blanket the foothills of India’s Darjeeling tea growing region. He left inspired. On returning to the village of Phidin, he shared his vision of planting a tea garden near Ranitar in the remote hilly region of Panchthar district in the rugged Himalayan foothills. In 1954 growing tea was a new concept. Villagers questioned his ambitions and his grandiose dream of one day building a tea factory.

Deepak Prakash Baskota, his wife Dambar and youngest son Nishchal

In response he decided to dive head-first into the project. First he read everything he could find to read, borrowing books to better understand what was required, and then exploring the nearby hills in search of terrain suitable for tea. Ranitar is 50 kilometers north of tea-rich Ilam but the only way to know for certain whether tea would thrive was to conduct soil tests. Deepak learned that the nearest soil laboratory was in Siliguri, West Bengal and so he walked 167 kilometers across the foothills of northern India carrying two heavy sacks of soil. The trip took three days. Later he discovered that delivering a handful of soil would have been sufficient.

Encouraged by the positive results but unable to purchase land, he and his wife, Dambar, planted the first tea trees in their backyard. Then, as the trees matured during the next four years, he invested in new plantings, visiting Darjeeling as often as possible to learn how to make tea.

Gradually villagers began to grasp the potential and offered adjacent land for expansion until there was more than 200 acres. Growers established a cooperative to sell their leaves. Eventually they produced enough leaf to require a factory which was completed in 1984.

The family prospered, making Nishchal’s childhood very different than that of his father and mother. Yet he developed the same confidence and self-motivation that led him to found a national newspaper at 17 and manage a project to build a school for underprivileged children during his college years. He volunteers for the Nepal Red Cross Society and 4 E’s Social Service programs. He worked as a financial planning analyst during his school years.

Nishchal Banskota

“While finance remains my keen interest of study, it has not limited me to explore beyond my apparent horizon and make a difference,” says Nishchal, “I constantly attempt to challenge my entrepreneurial spirit to drive change.”

Nepal Tea is a fine purveyor worthy of your donations but its mission runs deeper than commerce.

Children in Nepal do not receive a free education. One-in-four live in poverty and only 57% of Nepali adults can read and write. Banskota said a portion of tea sales are donated to a scholarship fund that has educated 2,300 students since 2002.

Nishchal would like every child of the 600 farmers who work at the Kanchanjangha Tea Estate and Research Center (KTE-RC) to have the opportunity he enjoyed.

This is your opportunity to make the vision of two generations of dreamers a reality.

Nepal Tea LLC Kickstarter campaign

How many people support Tea Journey…

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

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

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

In thirty days, how can this be?

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

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

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

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

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

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

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

Dan's Informal Signature_240px (Blue)

 

 

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Tea Journey: A Kickstarter “Project We Love”

Tea Journey: A Kickstarter “Project We Love”

MARKETING-KickstarterProjectsWeLove

Badges for Projects We Love

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

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

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

Kickstarter
Reprinted from the Kickstarter Blog

Friends in Tea

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

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

We need to make the most of each day…

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

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

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

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

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

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

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

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

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

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

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

Tomorrow is too late.

Dan

SAMPLE LETTER

Dear (or Hello, or Hi) <first_name>

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

GreenInbox ADVICE

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

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