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 | Play the Health Card

Need to Know | Play the Health Card

Tea Industry News for the week of June 8

  • Theaflavins Inhibit Virus Replication
  • Immunity is the Epicenter of Health Enhancing Foods
  • Water Works Wonders
  • Digesting Grubhub
  • Tea for the Front Line

“Now is the time to play the health card” I advised during a June 10 webinar on Tea Vulnerabilities hosted by the European Speciality Tea Association (formerly known as The European Tea Society).

Click here to watch a recording of the webinar.

Recent scientific articles* suggest that black tea polyphenols derived during the oxidation of tea catechins could potentially inhibit the ability of the coronavirus to replicate.

RNA replication in the coronavirus is a two-step mechanism that relies on the RdRP (RNA-dependent RNA polymerase) protein to catalyse the synthesis of the RNA strand.

Authors of a March article in the Journal of Medical Virology conclude that “theaflavin could be used as a lead compound for developing a SARS‐CoV‐2 inhibitor that targets RdRp. However, the exact in vivo effect is still unclear, and further research is needed to confirm the mechanism whereby theaflavin target SARS‐CoV‐2.”

Medical researchers in Taiwan recently concluded an investigation of 720 compounds listed in the Natural Product Libraries for anti-COVID-19 efficacy. The list was narrowed to 10 compounds and mixtures that had strong potential for anti-COVID-19 efficacy, according to Dr. Bashar Khiatah. “The compounds that have been found to have an anti-COVID 19 effect are the polyphenols that are found in teas,” writes Amylee Amos, MS, RDN.  These are found in black tea, green tea, oolong tea, and pu-erh. The most promising is Theaflavin-3,3′ -digallate (TF3) which is converted from catechins during fermentation.

Researchers in 1998 found tea theaflavins completely neutralized bovine coronavirus and rotavirus infections. In 2005 Chinese researchers showed that black tea significantly inhibited chymotrypsin-like protease activity essential to virus reproduction. Recent in-vitro studies found TF3 completely inhibited COVID virus replication in cell cultures.

The Indian Council of Medical Research (ICMR) announced that it will study Theaflavins’ antiviral properties.

*View research paper abstracts and links at end of this report.

Immunity is the Epicenter of Health Enhancing Foods

The polyphenols in tea are known to boost immunity and combat inflammation. Health institutes worldwide have for several years recommended eating foods and beverages that reduce inflammation and naturally boost the body’s immune system.

Due to the pandemic this health message has captured the attention of consumers who are increasingly seeking out products to boost their immune system, according to a post-pandemic study by Unilever’s CMI U-Futures and CMI People Data Centre.

Unilever found that in the US the intake of vitamin supplements in March rose by 15% in the space of a month. In Brazil consumers are bingeing on vitamin c-rich fruits and in Japan, yogurt formulated to boost the immune system saw a spike in sales.

Just Food reports that in Israel, interest in immune-system supportive ingredients rose 66% in March. According to AI-focused market research firm Tastewise, “we expect the trend to continue to rise. Immunity, stress relief, medicinal benefits and more are all skyrocketing.”

In China, a post-Covid-19 study of consumer behavior by McKinsey & Co. found that 70% of consumers intend to “work to boost their own physical immunity by exercising more and eating healthy.”

A review of ingredients used by at-home cooks shows a preference for wholesome, lean foods which may be influenced by studies showing obese victims are less likely to survive COVID-19.

The desire for health and well-being post pandemic is a consistent trend across all markets,”​ Unilever concluded. Unilever CEO Alan Jope told analysts “anything that’s in the space of wellness – health and well-being – is going to enjoy sustained strength.”

Having an optimally working immune system is more important than ever. The way our body deals with an infection is influenced by many factors of which the nutritional status is a critical element,”​ Dr Angelika De Bree, Unilever’s global nutrition director, explained to the The Food Navigator..

“Our biggest food brands offer thousands of products and recipes which are nutritious, affordable and made with sustainably sourced ingredients,” according to Dr. De Bree.

Tea is clearly the ideal beverage for the situation at hand.

Our tea and herbal category delivers healthy hydration through Earth’s most sustainable plant-based drinks,she said.

Water Works Wonders

The UK Tea Academy released a white paper describing “The Ultimate Ingredient for The Perfect Cup of Tea” – that being water.

“Water, which makes up to 99% or more of a cup of tea, is an often-overlooked ingredient that has a huge impact on the taste, aroma, and appearance of every cup. Following research of many different teas and many different waters, this paper finally provides the ideal water specification need to make the best brew,” writes Jane Pettigrew, one of three principal authors of the 12-page report.

The white paper highlights the key ingredients of water which impact the brewing process of tea. It also describes a standard water specification to create the optimal cup of tea.

Click to download the document here.

Water used to brew tea has not been considered in the same way as water for coffee, according to the report.

If the ideal water is not used, the delicate notes of tea cannot be realized, resulting in a bad experience with even the finest of teas. Sadly, this leads to a lack of consumer confidence as well as misconceptions of how certain teas taste.

“A perfect example of this is green tea. It is very common for people to “think” that they do not like green tea, the opinion reached because the tea has been almost certainly made with unfiltered water, at the wrong temperature and over-brewed. The entire flavor profile is altered, often leaving the tea bitter and undrinkable. Brew a green tea correctly and the entire experience is worlds apart in comparison,” writes Pettigrew.

The report delves into the chemistry of water, describes the importance of removing chlorine and preserving the the buffer capacity of the water, a delicate balance of calcium and magnesium that defines ideal “hardness.”

Retailers and tea traders should view this work as an excellent resource and, like those in the coffee world, they should adopt a water standard when tasting tea.

The specification appears below.

Digesting Grubhub

European food delivery venture Just Eat Takeaway derailed what looked like a pre-destined Uber takeover of Grubhub this week.

In May San Francisco-based Uber Technologies was set to acquire Chicago-based Grubhub to become the largest online foodservice delivery firm in the US. Haggling over price, and the likelihood of antitrust scrutiny, killed the deal which was valued at several hundred million (Uber offered $62.50 per share).

In June, Amsterdam-based Just Eat Takeaway offered the equivalent of $75.15 per Grubhub share. Just Eat (UK) and Takeaway (The Netherlands) combined their businesses in April, and now control a huge share of Europe’s growing market for both delivery and food delivery software.

Packaged Facts analyst Cara Rasch said the deal “will allow Just Eat Takeaway to gain a larger footprint in North America, and diversify Grubhub’s business. Skip the Dishes, a subsidiary of Just Eat Takeaway, does a lot of business in Canada and could help the Grubhub brand expand more broadly through North America.”

“In the short-term, third-party restaurant delivery apps have a number of advantages over in-house delivery,” she explains. “They are convenient for consumers because they allow customers to order from a variety of venues using one application. They also can allow smaller businesses without the capital to invest in in-house development of effective online apps to expand their delivery services quickly in the wake of COVID-19, which has forced fast changes,” writes Rasch, but restaurants consider the commissions that third-party online delivery companies charge to be a burden. “If they don’t raise their prices for meals ordered via a third-party app, they are in danger of losing money in an already tight-margin business that has been threatened by lower overall restaurant sales during the pandemic,” she said.

The outlook for carryout and delivery is bright due to distancing guidelines that have shuttered dine-in service or forced restaurants to greatly limit their dine-in capacity.

Long term, “many restaurants are going to see the value of investing in an in-house system for delivery orders. Using a third-party company for ordering and delivery makes it harder for restaurants to develop a direct relationship with consumers. It is also challenging to ensure food quality since restaurants have no control over the food once it leaves the restaurant,” she said.

Source: Packaged Facts, Food-Carryout & Delivery

Tea for the Front Line

The Tea Spot launched its new Flu Fighter tea, a caffeine-free herbal blend that features functional ingredients, including astragalus, honeysuckle, organic licorice root, orange peel, tangerine peel, dandelion root, mulberry leaf, red root and organic ginger.

Flu Fighter Tea

The ingredients in the new Flu Fighter tea were chosen based on a recent medical report, published in Military Medical Research (Volume 7, Article Number 4, February 2020), on the diagnosis and treatment of the novel coronavirus (2019-nCoV), where a combination of herbs and roots were used to support flu-like symptoms.

According to Maria Uspenski, founder and CEO of The Tea Spot and author of Cancer Hates Tea, many of the natural herbs in this sweet, nourishing tea were also used in ancient times to make wellness broths for recovery and building strength. And while the Flu Fighter tea is meant to be supportive and maintain wellness, it is not meant to treat, cure or prevent any disease or ailment.

“The pain and stress of the current pandemic has pushed The Tea Spot to think outside the box as to how we can help empower people to find and support better overall wellness,” said Uspenski. “The result of our efforts is our aromatic and medicinal Flu Fighter herbal tea, inspired by recent medical research. This supportive tea is intended to be used in combination with social distancing, good personal hygiene, sound diet, ample exercise and rest, while it encourages wellness and facilitates calm amidst the turmoil and uncertainty that’s happening around the world.”

The Tea Spot donates 10% of all profits in-kind to cancer survivors and community wellness programs. In May The Tea Spot donated 55,000 specialty tea sachets to first-responders in New York, California, and Texas.

Footnote: The US Census Bureau on June 8 announced a very helpful online resource for understanding and keeping up with the impact of COVID-19. Visit: COVID-19 Data Hub (https://covid19.census.gov/).

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Clark KJ, Grant PG, Sarr AB, Belakere JR, Swaggerty CL, Phillips TD, et al. An in vitro study of theaflavins extracted from black tea to neutralize bovine rotavirus and bovine coronavirus infections. Vet Microbiol. 1998;63:147–57.
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Herold J, Gorbalenya AE, Thiel V, Schelle B, Siddell SG. Proteolytic processing at the amino terminus of human coronavirus 229E gene 1-encoded polyproteins: identification of a papain-like proteinase and its substrate. J Virol. 1998;72(2):910–918.
Muhammad Tahir ul Qamar, Safar M. Alqahtani, Mubarak A. Alamri, Ling-Ling Chen, Structural basis of SARS-CoV-2 3CLpro and anti-COVID-19 drug discovery from medicinal plants†,Journal of Pharmaceutical Analysis,2020,ISSN 2095-1779,https://doi.org/10.1016/j.jpha.2020.03.009.
Zhavoronkov, Alex; Aladinskiy, Vladimir; Zhebrak, Alexander; Zagribelnyy, Bogdan; Terentiev, Victor; Bezrukov, Dmitry S.; et al. (2020): Potential COVID-2019 3C-like Protease Inhibitors Designed Using Generative Deep Learning Approaches. ChemRxiv. Preprint. https://doi.org/10.26434/chemrxiv.11829102.v2
Chen CN, Liang CM, Lai JR, Tsai YJ, Tsay JS, Lin JK. Capillary electrophoretic determination of theanine, caffeine, and catechins in fresh tea leaves and oolong tea and their effects on rat neurosphere adhesion and migration. J Agric Food Chem. 2003;51:7495–503.

Need to Know| International Tea Day

Need to Know| International Tea Day

Tea industry news for the week of May 25.

  • International Tea Day
  • Angela Lansbury as teapots
  • India COVID-19 Update
  • Matcha in Demand
The Kao Ting Academy in Jian Yang, Fujian Province celebrated International Tea Day with a demonstration of the ancient Song Dynasty preparation of powdered tea whisked in Jian Zhan tea bowls fired at a local kiln. Photos by Liu Linjiang and Ding Shuliang.

International Tea Day

Carpe Diem

The tea industry seized the day May 21, celebrating with authentic and meaningful exchanges of information globally in contrast to amped up marketing typical of previous years.

The inaugural UN sanctioned-event was grounded in the soil and the people who grow and process tea. Since the 1950s marketers, mainly in developed countries, have promoted tea during the year-end holidays, designating December 15 as International Tea Day. The effort was well-meaning but out-of-sync with traditional spring celebrations in tea producing lands.

Last week the world witnessed a confident and much better coordinated effort, as various tea associations, government tea boards, trading companies and educational institutions followed the example set by the FAO Intergovernmental Group on Tea (IGG). Due to the pandemic, many activities were conducted virtually. The overall impact was significant as media coverage carried the UN messaging.

Tijjani Muhammad-Bande, president of the United Nations 74th General Assembly, took part in an online session with 200 delegates from 20 countries. He said that “we must galvanize multilateral collective action to implement activities in favor of the sustainable production and consumption of tea and join the co-convenors and participants in raising the awareness of importance of tea in fighting hunger and poverty.”

Noting that 60% of tea is now produced by smallholders, FAO (UN Food and Agriculture Organization) pointed out that tea production and processing directly contributes to several of the UN’s Sustainable Development Goals (SDGs), including the first goal, the reduction of extreme poverty; Goal 2, the fight against hunger; Goal 5, the empowerment of women; and Goal 15, the sustainable use of terrestrial ecosystems.

In Rome FAO director-general Qu Dongyu said that a more productive and resilient tea sector calls for better policies, more innovation, increased investments and greater inclusiveness in tea production and processing. This year’s theme is “Harnessing Benefits for all from Field to Cup.”

“Tea, as a source of employment and revenue, can help alleviate some of the hardships resulting from the current economic downturn,” he said.

China invested significant resources with regional festivals and a series of events at the Chinese Businessman Museum in Beijing. More than 50 industry groups took part.

Tea consumption has grown rapidly the past two decades and contributes to the financial well-being of millions. China benefited greatly from this growth. Regional activities included a stir-frying tea competition featuring Yuhua tea in Nanjing in China’s Jiangsu Province and a demonstration of the traditional Song Dynasty way of whisking powdered tea in Jian Zhan cups hosted by the Kao Ting Academy in Jian Yang, in Fujian Province.

Zhang Jun, China’s permanent representative to the United Nations, said the inception of International Tea Day has given tea new life and vitality.

Events were promoted in several streaming videos with brilliant images such as the Food and Agriculture Organization’s “The Art of Making Tea” and the UK Tea & Infusions Association video: “Raising Our Cup to All Tea Drinkers

The Tea and Herbal Association of Canada President Shabnam Weber hosted an all-day “Sofa Summit” that featured conversations with 21 tea experts, retailers, traders, and association directors across the globe.

China hosted a 36-hour live broadcast featuring 29 people from several countries.

Coordinated by the China NGO Network for International Exchange, events in Beijing brought together the China Culture Promotion Society, the Tea Road (China) Cooperative (TRC) and the China Chamber of Commerce of I/E of Foodstuffs, Native Produce and Animal By-products (CFNA).

FAO formally commended the effort and Wang Shi, chairman of the China Culture Promotion Society cited China’s responsibility “to work with peers in the world to promote the healthy and sustainable development of the tea industry and exchange of tea culture. It can help to build a community of shared future for mankind.”

India announced a special auction organized by the Tea Board of India from tea plucked on Thursday by planters across the country. This special edition is limited to five packages in a lot with a maximum of five lots from each factory. Proceeds from the June auction will be shared with relief funds.

Messaging in every country amplified the global trend toward transparency. FAO organizers used the occasion for an honest assessment of tea industry opportunities, challenges and potential shortfalls.

“Tea can play a significant role in rural development, poverty reduction and ensuring food security in developing countries because of it being one of the most important cash crops,” according to the UN.

Joydeep Phukan, secretary of the Tea Research Center at Tocklai, in Jorhat Assam, formally proposed the UN initiative in 2015 and proudly carried it forward though the General Assembly vote in November 2019.

Angela Lansbury as teapots

Amanda@pandamoanimum posted a clever Twitter thread in tribute to Angela Lansbury and tea. The thread portrays the beloved actress in her many outfits, each meticulously matched with a tea pot. The effort was rewarded with 20,000 retweets and many many “likes” including my own.

The effort inspired others to post their favorite shot of Lansbury and a suitable teapot to share the spotlight.

India COVID-19 Update

The Indian Tea Association (ITA) estimates first quarter COVID-19 related losses will exceed $275 million.

Tea production declined by 65% in March and by 50% in April in Assam and West Bengal following a March 21 lockdown that stopped the harvest and led to transportation and logistics delays.

ITA, which represents planters, urged the federal government and state governments to provide financial support and relief payments. Growers are pressing for an increase in working capital. Operations resumed April 12 but with a limited workforce. Pruning overgrown bushes delayed plucking an additional two weeks. In the meantime, dry weather has lowered yields.

Production totals are 140 million kilos below normal output according to ITA. Export demand is increasing from key trading partners that include Russia, UAE and Europe.


This map shows relatively few cases in Assam as rural areas in general experienced lower rates of infection than crowded Mumbai, but that is changing as the contagion progresses and migrant workers return to their home villages. Sikkim, for example, only reported its first case last week and the rate of infection remains low in Ladakh as well as in the union territories of Goa, Puducherry and Dadra & Nagar Haveli. Maharashtra was the Indian state hit hardest by the coronavirus on May 23 the state saw a record of more than 3,000 new infections in the span of just 24 hours surpassing the mark of 50,000 cases.

Matcha in Demand

Matcha continues to experience strong growth and sales estimated at $2.26 billion by the end of 2025, according to market research aggregator Million Insights. The combined average growth rate during the five years beginning 2019 is 4.7%, according to the Matcha Tea Market report.

Rising demand for organic, natural and nutrient-rich products are likely to have a positive impact on market growth as consumers demand healthy beverages, containing vitamins and antioxidants.

The report claims that matcha “improves focus, calmness and concentration as well as it enhances metabolism, gastrointestinal functioning, immune system, natural detoxification and inhibition of cancer cells.”

Little of the tea is prepared in the traditional Japanese style of whisk and bowl. Dunkin, for example, introduced a stone ground powder produced in Nishio in Aichi prefecture. The tea is blended with milk (or plant milk) and can be served hot or cold. The matcha lattes were tested in Springfield, Mass., and Phoenix, Ariz., and rolled out nationally Feb. 26.

During the company’s the first quarter earnings call, Dunkin’ specifically mentioned matcha as a sales driver. Comparable sales declined for the three months ending April, but during the early weeks of the quarter comparable sales were up 3.5% “and were on pace to be the highest quarter comparable sales growth since 2013,” according to the company. “The increase in average ticket was driven by a favorable mix shift to premium priced espresso and cold brew beverages, including the launch of Matcha Latte,” according to the company.

Need to Know | Boba Delivery

Need to Know | Boba Delivery

Tea industry news for the week of May 18.

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

Boba Tea Tops Unique Food Orders

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

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

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

Boba tea.

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

Click here to see the full list.

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

East Africa Update

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

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

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

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

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

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

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

Holiday Travel Restrictions Eased for Turkish Tea Growers

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

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

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

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

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

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

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

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

Robotic Waitstaff Serves Tea

Tearoom Robot Reduces Contact with Waitstaff Easing Customer Concerns

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

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

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

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

Nepal Asks India to Resume Imports

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

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

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

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

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

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

Need to Know | Export Values Declined in 2019

Need to Know | Export Values Declined in 2019

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

Friends in Tea

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

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

We need to make the most of each day…

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

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

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

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

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

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

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

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

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

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

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

Tomorrow is too late.

Dan

SAMPLE LETTER

Dear (or Hello, or Hi) <first_name>

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

GreenInbox ADVICE

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

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

Tea Journey

Tea Journey

Thirty Days

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

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

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

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

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

KICKSTARTER_GlazedTeaCup2_360px

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

YIXING POTTERY
https://youtu.be/mRu5xdcVRXs

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

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

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

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

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

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

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

Are you in?

Dan's Informal Signature_240px (Blue)

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

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

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

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

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

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

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

*The Tea Journey Team

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

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

________________________________________
Contributors

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

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

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

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

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

∞ ∞ ∞

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.

∞ ∞ ∞

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.