Need to Know

Tea Industry News for the week of April 27

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

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

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

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

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

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

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

Revenue Forecast

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

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

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

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

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

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

See related: Tea Shop Closings.

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

Consumer Behavior Insights

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

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

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

Sri Lankan Tea Exports Decline

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

Retail Innovations

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

Free Meal Monday

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

Samovar Founder Jesse Jacobs

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

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

Upcoming Events

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

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

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

Global 1QTR GDP

Tea Shop Closings

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

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

CANADA

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

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

UNITED STATES

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

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

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

Need to Know

Tea industry news for the week of April 20

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

Monitoring Consumer Behavior

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

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

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

Global Impact

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

Business News

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

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

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

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

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

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

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

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

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

Physical Distancing on 1,500 Acres

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

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

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

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

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

Production News

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

In Sri Lanka, February Yield Marks Decade Low

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

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

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

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

Retail News

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

Tea cubes
Millennia also markets cubes of fresh tea leaves

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

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

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

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

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

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

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

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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
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Tea Journey

Tea Journey

Thirty Days

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

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

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

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

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

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

YIXING POTTERY
https://youtu.be/mRu5xdcVRXs

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

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

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

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

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

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

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

Are you in?

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

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*The Tea Journey Team

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

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

________________________________________
Contributors

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

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

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

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

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.