• Tea Biz Podcast | Episode 36

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    Listen on your favorite player

    Hear the Headlines

    | Retail Sales Forecast Happy Holidays
    | Restaurant Reticence is Declining
    | A Restructured DAVIDsTEA Expands into Pharmacies

    Seven-minute Tea News Recap
    Tea Price Report
    Sept 18 – Sale 37

    India Tea Price Watch

    India Tea Price Watch | Aravinda Anantharaman
    The Indian Tea Association has asked the government to introduce a minimum import price for teas imported into India, to ensure they meet the requirements of the Food Safety and Standards Authority of India and to see that these teas are not sold in India as domestic tea. Learn more….

    Aravinda Anantharaman

    Features

    This week Tea Biz travels to Guwahati in Assam, India where the co-founders of Folklore Tea discuss how they engage customers at an unusual level of intimacy.

    Processing raw leaves at Folklore Tea in Assam. Photos courtesy Folklore Tea.
    Processing raw leaves at Folklore Tea in Assam

    Exceptionally Local Teas that Connect with Consumers

    By Aravinda Anantharaman

    A recent development in tea in India has been the rise of new brands, many that have their roots in tea regions. Almost all of them seek to bridge producers and consumers. Most rely on the narrative that accompanies a product from its place of origin. For consumers, it’s in part vicarious living and a window to another world. Folklore Tea is as good as it gets for those who want to know who made their tea and where it comes from. Read more…

    Listen to the Interview
    Folklore Tea introduces the growers, village and even includes an original poem describing its teas.

    News

    Shoppers weary of COVID lockdowns say they are eager to splurge.

    Retail Forecasters Predict Happy Holidays

    By Dan Bolton

    Marketers anticipate strong holiday sales despite fewer footfalls at physical outlets due to surging sales online.

    Projections range from $1.28 to $1.3 trillion during the November to January gifting season. Mastercard’s SpendingPulse projects a 7.4% holiday sales increase, and the widely cited Deloitte annual holiday forecast estimates US holiday spending will grow between 7% and 9% in 2021. Ecommerce sales are anticipated to be between $210 and $218 billion, a gain of 11% to 15%, according to Deloitte.

    Last year’s holiday sales came in higher than expected, increasing by 5.8%, according to Deloitte. The consensus is that consumers have spent down debt and are eager to counter a gloomy summer that curtailed entertainment, dining out, and travel as COVID restrictions forced many to vacation close to home. In the US consumers have an estimated $1.5 trillion in extra savings to splurge, according to Bloomberg.

    As restrictions lift, retail marketing group Shopper, in Australia, predicts consumers will embark on what has been coined as “revenge spending” sprees.

    The publication AdNews writes that Australian households squirreled away more than $100 billion (AUD$140 billion) during the COVID pandemic, with 26% of Australians saying their families are better off financially than this time last year. Shopper’s Urge to Splurge Post-Pandemic Revenge Spending Study, conducted in August, revealed that during the holidays:

    • 47% of shoppers are planning on making a major purchase (a third indicated they would spend $500-$2000);
    • 40% of Australians are looking forward to spending on dining out and entertainment and 19% will book holiday travel
    • 35% say that now is a good time to buy major household items.

    A consumer survey by AlexPartners found 88% of US consumers plan to spend the same or more this holiday season, up 12%, as reported by Chain Store Age. “There’s unprecedented pent-up demand out there, consumers have lots of money in their pockets, in part due to recent government programs,” according to the firm.

    Countering that optimism is the fact that in September new COVID cases are averaging 145,000 a day in the US with more than 2000 deaths. Consumer confidence declined mid-summer during the latest wave of infections. Market research firm Numerator reported that in July and August consumers expressed big concerns over the Delta variant with 46% reporting they were “highly concerned” a number that grew 10% between July and August as hospitals filled. The majority (51%) cited the Delta variant with 66% of vaccinated adults expressing worries about family and friends becoming infected.

    Vaccination mandates and more widespread use of masks are working to bring down case loads. California, a state with 39.5 million people that reported 65,000 cases a day last December, is now reporting fewer than 8,000 daily with an infection rate of 22 cases per 100,000. In contrast, Texas reported 44 cases per 100,000 the first week of September and Florida is experiencing 42 cases per 100,000.

    Deloitte vice chairman Rod Sides, the company’s US retail and distribution sector leader, writes that “While consumer concerns about health and safety have eased since the last holiday season, pandemic-influenced shopping behaviors continue to gain traction.”

    Biz Insight – The big question now is which channel will outperform? The majority of shoppers say they want to get out of the house and visit stores but that depends on local outbreaks. A big concern for online buyers is on-time delivery. Savvy tea retailers finalized preparations before September, borrowing in the spring to stock teaware and gift selections for the holidays. Manufacturing was in full swing across Asia all summer but shipping delays and the extraordinary spike in container charges make it imperative that holiday promotions begin early this year. MasterCard suggests Oct. 11 as a start date for a 75-day sales season. The president of international operations at UPS advises consumers to “Order your Christmas presents now because otherwise on Christmas day, there may just be a picture of something that’s not coming until February or March.”

    Proof of vaccination at restaurants is encouraging frequent diners to venture out

    Restaurant Reticence is Declining

    By Dan Bolton

    Frequent diners are determined to return to their normal routine of dining out.

    OpenTable’s most recent quarterly survey of 20,000 restaurant fans finds that 62% are now dining out at least once a week. During the first quarter, only 39% of frequent diners were eating out at least weekly. Takeout remains the most popular alternative to dining in with 34% of respondents ordering takeout at least once a week. In 2020 35% of all restaurant orders were from drive-throughs, according to NPD Group.

    OpenTable reported a pronounced decline in July and August over concerns about the spread of the Delta variant. Seated dining at US restaurants is down about 11% below 2019 levels. In August the National Restaurant Association found that 60% of restaurant-goers had changed their use during the pandemic with most opting to eat outdoors and 19% saying they completely stopped going out to restaurants.

    OpenTable found that 27% of Canadians intend on eating out more frequently than before the pandemic, citing a need to take a break from home cooking (40%) and support for local restaurants. Diners were more likely to have dined solo (33%) in 2020 and now eat earlier, making reservations for 5:30 and 6 pm.

    Proof of vaccination should be a requirement for staff, according to 46% of OpenTable diners, up from 25% during the first quarter. A 71% majority are willing to show their vaccine cards and 23% say that restaurants must require proof of vaccination before they will dine indoors. In the San Francisco Bay Area 37% say proof of vaccination is a must.

    Overall, 48% of frequent diners are willing to show proof of vaccination, but mandatory proof of vaccination isn’t necessary for them to dine in. Nationally 15% of respondents say they will refuse to show proof of vaccination if required for dining-in. In Florida, Nevada, and Arizona 23% say they are unwilling to show proof of vaccination*.

    Biz Insight – When asked what they miss, 93% of frequent diners cite dining at their favorite restaurant, another (42%) are longing for their favorite menu items with (39%) hoping to attend happy hours with friends and (26%) looking forward to wine and beer tastings.

    *Footnote: San Francisco Bay Area: 37% say vaccination proof is a must, the highest of any region. In Canada: 34% say vaccination proof is a must. In Vegas, Orlando, and Phoenix: 23% say they’re not willing to show vaccination cards, the highest of any region

    Restructured DAVIDsTEA
    Expands into Pharmacies

    North America’s largest tea retail chain has emerged from bankruptcy, named a new chairman to replace co-founder Hershel Segal and is now “moving forward with a number of initiatives,” according to CEO and Chief Brand Officer Sarah Segal.

    DAVIDsTEA display in Rexall Drug stores

    Jane Silverstone Segal, Herschel Segal’s spouse, was named director and chair of the board on Sept. 14. Hershel remains a strategic advisor and retains 46% of the company’s stock.

    During an earnings webcast Sarah Segal said that DAVIDsTEA is “successfully transitioning to a digital-first company.” The company is laying the groundwork for a successful omni-channel presence that retains key retail stores, a strong and growing online business and new emphasis on placing our products on the shelves of well-place retail partners, she said.

    In a release following the quarterly disclosure, Sarah Segal announced the expansion of a store-within-a-store concept to 156 Rexall pharmacies. The four-foot in-store displays showcase 25 SKUs. The Montreal-based chain offers a mix of tea and herbal infusions at 18 stand-alone locations with 3,300 retail partners including Canada’s major grocery outlets.

    Sales declined 18.6% or $4.3 million to $18.7 million during the quarter ending July 31. Pandemic-driven sales were $23 million during the same period in 2020.

    Biz Insight – During the earnings webcast, Sarah Segal said that “After a period of dramatic changes and transformation to our business over the past nearly 18 months, we are eager to connect with our customers in new ways.” “We are laying the foundation to scale and expand to become a truly global tea company,” she said.

    — Dan Bolton

    • Read more… links indicate the article continues. Learn more… links to additional information from sources.

    Upcoming Events

    September 2021

    Level Up, Virtual
    September 29 | The Tea & Herbal Association of Canada will host a mid-year Meet-Up from 10 am to noon. Admission $55 (CAD) Members $50. Agenda | Register

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  • Tea Biz Podcast | Episode 35

    Tea Biz Podcast Logo

    Listen on your favorite player

    Hear the Headlines

    | Bids Top $4 Billion for Unilever Tea Portfolio
    | India Considers Halting Imports of Nepal Tea
    | Sales of Herbal Supplements in US Top $10 Billion

    Seven-minute Tea News Recap
    Tea Price Report
    Sept 11 – Sale 36

    India Tea Price Watch

    Growers no longer must seek permission to plant tea in India, a move that could encourage new tea regions to add tea cultivation, increase the number of small growers cultivating tea, and possibly increase the volume of production.  Circulars from the Tea Board follow the Commerce Ministry’s announcement of new rules regarding permits. In Darjeeling, planters are calling for a ban on Nepal tea imports. Learn more….

    By Aravinda Anantharaman

    Features

    This week Tea Biz travels to Switzerland to learn from Caroline Giacomin at ETH Zurich the physics behind that colorful sheen that rises to the surface of black tea. Is tea scum just that or a revealing indication of goodness in the cup?

    … and then we travel to New Delhi, India where the Rainforest Alliance’s Madhuri Nanda reveals how practitioners of RA’s sustainable farming practices are evolving toward broader, more holistic ecosystems in Part 2 of our series on Regenerative Agriculture.

    Interfacial surface film that forms on black tea.
    Interfacial surface film that forms on black tea.

    The Physics of the Film that Forms on Black Tea

    By Dan Bolton

    Have you ever noticed a colorful sheen on the surface of your tea? It appears to break like ice floes in the arctic as the tea cools. Researchers once thought tea film was due to waxy substances contained in tea leaves released during steeping. That is not the case. The delicate film is an interfacial interaction of oxygen, tea polyphenols and calcium carbonate ions in water. It does not form on white, yellow, green, or lightly processed oolong teas, only black tea. In many parts of the world, soft water prevents the film from forming. Is tea film a fleeting glimmer of color to enjoy or an ugly scum to quickly dissipate with a squeeze of lemon? Caroline Giacomin, a physicist at ETH in Zürich, Switzerland joins us to explain the physics of tea film from a study she and colleague Peter Fischer recently published in the Physics of Fluids. Learn more…

    Listen to the Interview
    Physicist Caroline Giacomin explains the physics of black tea film
    Madhuri Nanda
    Madhuri Nanda, Rainforest Director, South Asia

    Regenerative Agriculture: A Holistic Approach

    By Dan Bolton

    Madhuri Nanda, the Rainforest Alliance’s director, South Asia, explains that while sustainable farming ensures that agricultural practices do not negatively impact and degrade the environmental, social, and economic aspects of the surrounding ecosystem ? the focus shifts in regenerative agriculture toward adopting a broader holistic approach that enhances biodiversity and improves soil health through increased microbial activities that build resilient systems capable of withstanding adverse climatic scenarios. Read more…

    Listen to the interview
    Madhuri Nanda Rainforest Director, South Asia, on the evolution of sustainable farming.

    News

    Bidding for Unilever’s tea portfolio underway. Photo Photo © Vladimir Akin`shin | Dreamstime.com

    Advent International Will Bid $4 Billion for Unilever’s Tea Portfolio

    By Dan Bolton

    Advent International and the Singapore Government Investment Corporation (GIC) will bid $4 billion in a joint offer for Unilever’s tea portfolio, according to a report by Sky News.

    The Advent-GIC consortium is competing with at least six other large private equity firms that hope to acquire fabled brands Lipton Yellow Label, PG Tips, Lipton Iced Tea, Australia-based T2, TAZO, Pukka Herbs and several other regional brands.

    Unilever will retain its most profitable tea holdings in India and Indonesia as well as the Lipton-PepsiCo partnership in the US.

    Bloomberg estimates Unilever’s entire tea business to be worth $5.7 billion. Other bidders expected to meet next week’s deadline are the Dhabi Investment Authority, KKR and Clayton, Dubilier & Rice.

    Biz Insight – In a July earnings call, Unilever CEO Alan Jope said “The balance of Unilever’s tea brands and geographies and all of our tea estates have a very exciting future, but this potential can be best achieved we believe as a separate entity.”

    The divestiture is expected to conclude by the end of the year.

    Tea factory and garden in Nepal
    Tea factory and garden in Nepal. Photo by © Ar-tem | Dreamstime.com

    India Considers Halting Imports of Nepal Tea

    By Dan Bolton

    The Terai Indian Planters’ Association (TIPA) and the Darjeeling Tea Association (DTA) are seeking a “blanket ban” on the import of Nepal tea.

    DTA Chairman BK Saria complained to the West Bengal Chief Minister Mamata Banerjee that a decline in production from 9.5 million kilos to 6 million kilos in 2020, and rising costs of production have affected both the domestic market and exports. He writes that “The crisis has been further compounded by the sale of deceptive Nepal tea being sold in the Indian market as ‘Darjeeling Tea’.” Immediate action is essential to save the industry’s 87 registered gardens, he said.

    Nepal is a landlocked tea producer that relies on India’s much more developed tea industry for re-export, shipping about 69.4 million kilos there in the past four years, according to the Tea Board of India. Tea board data shows that only 26.6 million kilos have been re-exported during this time, making it likely that 42.8 million kilos were sold domestically, exempt from import duties, and in direct competition with Darjeeling producers. Teas exported from India pay a 40% tariff to enter Nepal but Nepal pays no tariffs to ship tea to India due to terms of the South Asian Free Trade Agreement.

    Imports of tea to India are up a surprising 176% year-on-year, according to the Tea Board of India. Growers in Nepal and Kenya shipped 12 million kilos to India during the first six months of 2021, more than three-fourths of the full-year average for 2019. Traders pay as little as $1.70 per kilo for Kenyan tea, compared to the $2.50 per kilo all-India average. India’s thirst for tea has increased as COVID restrictions and drought significantly lowered yields of tea grown in India. Since there is no country of origin labeling requirements, it is likely the imported tea is being blended and marketed domestically as Indian tea.

    “Nepal tea is sold at a much cheaper rate than the Darjeeling cuppa as its cost of production is very low owing to rampant use of child labor and gross violation of labor laws,” according to DTA.

    DTA Advisor Sandeep Mukherjee told the Times of India, that “unless import of Nepal Tea into India is banned, the livelihood of those dependent on it would be at risk and may reach a point of no return, where more tea gardens in the Hill would shut down.”

    Biz Insight – Indian efforts to limit Nepal tea imports have ebbed and flowed over the past decade. In May 2020 India halted tea shipments from Nepal for several weeks by imposing non-tariff barriers tied to sanitation and quality control. India growers complain that bulk tea shipments do not require a label of origin, FSSAI (food safety compliance), or rigorous customs checks. Low prices induce tea brands such as Tata Consumer Products (TCP) and bulk exporters to rely on Nepal to supply India’s domestic blenders, but do not purchase direct.

    US Herbal Supplement Sales Set Record $10 Billion in 2020

    Sales of herbal supplements in the US grew a record 17.3% in 2020 exceeding $10 billion for the first time. The total excludes brewed teas but includes green tea powders marketed as supplements.

    The 2020 Herbal Market Report, released annually by the American Botanical Council, using transaction data from SPINS, reveals sales in the mass market channel grew by 25.1% to $2.1 billion in 2020. Direct sales, including online, grew 23.7% about twice the rate reported in 2019. Sales in traditional natural and health food stores grew 1.6% to $2.95 billion. Total supplement sales were $11.26 billion.

    Elderberry, known for its immune boosting properties was the top seller along with apple cider vinegar and ashwagandha. Sales of Elderberry grew by 150% to $275 million in mass market and $54 million in the natural food channel.

    CBD sales plummeted 36.9% to $57 million in the natural channel and declined 30% in mainstream outlets during the first year of the pandemic, the first decline in sales since 2017.

    Sales of dry and bottled green tea soared in mainstream outlets last year, but sales of green tea supplements declined 7.9% in 2020, falling to $31 million to rank 13th among the top-selling herbal supplements, according to SPINS.

    Biz Insight – “US consumers spent more than ever on herbal dietary supplements for immune health and stress relief in 2020,” according to the report. “During a year in which much was out of control, many consumers seemed to take control of their own health and prioritized selfcare with herbal and fungi-based dietary supplements. As the pandemic stretches into its 20th month it remains to be seen whether these trends and record-breaking sales will continue in 2021.”

    Click to download 2020 Herbal Market Report PDF

    — Dan Bolton

    • Read more… links indicate the article continues. Learn more… links to additional information from sources.

    Upcoming Events

    September 2021

    Level Up, Virtual
    September 29 | The Tea & Herbal Association of Canada will host a mid-year Meet-Up from 10 am to noon. Admission $55 (CAD) Members $50. Agenda | Register

    Click to view more upcoming events.

    Share this episode with your friends in tea.

    Sign up
    News Archives
    Tea Journey
    https://teabiz.sounder.fm/episode/news-01212021

    Subtext

    Avoid the chaos of social media and start a conversation that matters. Subtext’s message-based platform lets you privately ask meaningful questions of the tea experts, academics and Tea Biz journalists reporting from the tea lands. You see their responses via SMS texts which are sent direct to your phone. Visit our website and subscribe to Subtext to instantly connect with the most connected people in tea.

    Subscribe to Subtext

    Subscribe and receive Tea Biz weekly in your inbox.

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  • The Physics of Black Tea Film

    Have you ever noticed a colorful sheen on the surface of your tea? It appears brittle, breaking like ice floes in the Arctic as the tea cools. Researchers once thought it formed from waxy substances in leaves released during steeping. That is not the case. The delicate film is an interfacial interaction of air, tea polyphenols, and calcium carbonate ions in water. It does not form on white, yellow, green, or lightly processed oolong teas; it is only black tea. Soft water in many parts of the world prevents the film from forming. Is tea film a fleeting glimmer of color to enjoy or an unsightly scum that dissipates with a squeeze of lemon? Or does it? Caroline Giacomin, a student at ETH Zürich in Switzerland, joins us to explain the physics of tea film from a study she and colleague Peter Fischer recently published in the Physics of Fluids.

    Listen to the interview

    Physicist Caroline Giacomin at ETH Zürich
    Caroline Giacomin
    Caroline Giacomin explains the physics of black tea film

    What Causes the Film that Floats on Black Tea?

    Caroline Giacomin is a Ph.D. Student at ETH Zürich in the Department of Health Science and Technology. Her early research focused on optimizing a fluidized bed reactor within a CO2 direct air capture system. She previously worked on the rheology of sugars and most recently published her studies on the interfacial rheology of tea.

    Dan Bolton: Thank you so very much for joining us on the program. The topic is fascinating, and I see that it’s already getting some press attention. Let’s talk first about what made you curious about what some consider tea scum?

    Caroline Giacomin: I was working somewhere where the water was particularly hard, and one of my colleagues said, during our afternoon teatime, that he doesn’t drink tea anymore because he doesn’t like the stuff that is floating on top of it. He’s from Taiwan and had never seen tea scum before or tea film.

    I had never really thought much about it. Sometimes it was there. Sometimes it hadn’t been there.

    I went home and looked up how to get rid of the film for him. Turns out you can add lemon juice. Everyone on the message boards will say that it’s not a particularly scientific answer but obviously a traditional one.

    I didn’t really worry too much about that at the time. It wasn’t in my realm of research, but when I came here to start my Ph.D., our professor shared a list of ideas he thought might be interesting to investigate. We studied interfaces in this group, and on his list was tea interfaces. And I said, “Hey, I think that’s an interesting topic, and I’ve looked into it before.”

    So that’s how.

    Tea film in a cup of black tea
    Tea film in a cup of black tea

    Dan: What a lovely story. And I applaud you for thinking broadly. In science, it isn’t just narrow routes; it’s a wonderful opportunity to appreciate broader everyday applications in the world around us. So, how did you determine what caused the film?

    Caroline: A researcher from England in the 90s wrote a 14-part tea series, six or seven of which were about the tea film. And so I followed in his footsteps. He was studying the components of the tea film, and since we work with interfacial, I studied the strength of the film that forms on tea and with tea with additives like lemon juice, sugar, milk, etc. He did the composition now we’re studying physics instead of chemistry of it.

    I based the choice of add-ins on his research.

    Rheology is the study of weird fluids. Think about oobleck, the cornstarch and water mixture kids like to play with, or slime [Popularized on Nickelodeon]. Or you about measuring how shampoo or molten plastic flows. That’s rheology, and bicone interfacial rheometry means we’re dealing with the rheology at the surface between two phases.

    In our case, we’re dealing with liquid tea and air phases. Interfacial rheology uses a metal device with a disk that contacts the surface. Then, we carefully control the movement of that disk. A motor controls the movement, and a sensor detects exactly how much force the motor applies. That can tell us how brittle or how elastic the film is. When you know exactly how much force is needed to break the film, you can determine the depth of the film, the thickness of the film, and its elasticity.

    Dan: The thickness, then, varies with the amount of carbonate in the water, but it isn’t the critical factor. It’s the viscosity, the resistance to movement of the metal plate. How do you describe the film regarding its physical characteristics instead of its chemical components?

    Caroline: In our field, we use the phrase moduli. The elastic modulus describes the film’s elasticity, flexibility, and stretchiness. If you move the film a tiny bit, will it reform itself back into its original position? The loss modulus gives you the brittleness of the film.

    Dan: You’ve described the physics. The chemistry was previously described as tea polyphenols bonding with calcium carbonate ions at the surface to create a colorful sheen. Are there practical industrial applications for your research?

    Caroline: Conditions forming the strongest film, chemically hardened water, may be industrially useful for preferable shelf stability in packaged tea beverages and for emulsion stabilization of milk tea products. Conditions forming weakened films by adding citric acid may be useful for dried tea mixes. You are not likely to see the film in bottled tea because the bottles of iced tea you find at the store generally have citric acid or other preserving acids to extend the shelf life. But, those same acidic components cause many of the purported health benefits of tea to be dramatically reduced within the first 24 hours after bottling.

    If you had a pure tea product on the shelf in a bottle with no preservatives, no sugar, no citric acid, you would see little bits of the film sticking around at the top of the bottle, which most people would find extremely unpleasant — like you’ve got mold growing in your bottled beverage, and that wouldn’t be good.

    Also, it may be helpful to market teas with citrus in certain areas with very hard water. If you compare cups made with the same water, Earl Grey would have less of a film than pure black tea because it has bergamot, which is a citrus component.

    Pullquote

    Dan: When making tea, should I be anti-scum? Should I dissolve the scum to get rid of it? Or should I appreciate it for what it is and not worry? Is tea scum an indication that I need to do something with my water? Based on your research, what practical guidelines do you suggest for making or enjoying better tea?

    Caroline: It depends on what you think is best for tea because the film, especially when you don’t add milk, the film is quite beautiful. (I’m a scientist describing tea scum as beautiful). But when you add milk to tea, it is often not visually pleasing. It can look gross. The film that appears after adding milk is different from the tea film. It’s made of very different components. This is why, in my research, we couldn’t measure the resistance of the milk film because there’s too much oil and fat in it to be measured by our device; it caused too much slipping, essentially. So those two films are different.

    Now that I know what it is, I like to see it. If you like the appearance, you don’t have to do anything to your daily practice.

    If you don’t like the film, make black tea with lemon, and you won’t see it. There will still be a physically strengthened film there, but you won’t be able to see it. If you are making tea to have milk, put the water through a filter. If you’re living in a place where the water isn’t particularly hard, that shouldn’t matter too much, and you won’t have much of a film anyway. That’s all that really matters at that point.

    There’s nothing harmful about it. The film doesn’t affect the flavor. It’s more visual than it is olfactory. It won’t affect the aroma and the taste of the tea. It’s just a quirk of drinking tea.

    — Dan Bolton

    Tea samples
    Rheometer
    Lab samples were brewed to measure the breaking point of the thin film at the interface of air and black tea.

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    Episode 35

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    Episode 35 | Researchers once thought tea film was due to waxy substances in leaves released during steeping. That is not the case. The delicate film is an interfacial interaction of air, tea polyphenols, and calcium carbonate ions in water.

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    Dan Bolton

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  • Q|A Madhuri Nanda

    The Rainforest Alliance’s Director for South Asia, Dr. Madhuri Nanda explains that while sustainable farming ensures that agricultural practices do not negatively impact and degrade the environmental, social, and economic aspects of the surrounding ecosystem, the focus shifts in regenerative agriculture towards making the system better by adopting an ecosystem approach to enhance biodiversity and improving soil health through increased microbial activities that build resilient systems capable of withstanding adverse climatic scenarios.

    Listen to the interview

    Rainforest Alliance’s Director for South Asia, Dr. Madhuri Nanda
    Madhuri Nanda
    Madhuri Nanda, Director South Asia with the Rainforest Alliance

    Regenerative Agriculture: A Holistic Approach

    Madhuri Nanda, Ph.D., lives in New Delhi where she has served since January as Director South Asia with the Rainforest Alliance. A researcher with a doctorate in environmental science, she has diverse expertise in sustainable agriculture that includes resource management, nutrient management, vulnerability assessments, and climate change mitigation. She is former head of strategic development for KBS Certification Services and a graduate of Delhi University.

    Dan Bolton: Is there an accepted definition of regenerative agriculture?

    Madhuri Nanda: The term regenerative agriculture may be somehow new, as it was coined in 1980s by the Rodale Institute, then disappeared and surfaced again from 2015. However, we need to keep in mind that the concept behind is not recent. It draws from the principles of agroecology and holistic ecosystem management, both at the farm and landscape level. We, at Rainforest Alliance, believe this is part of a broader umbrella of climate-smart agriculture. Hence, our standard includes many regenerative agriculture principles and practices, in addition to other key dimensions of sustainability for instance, traceability, living conditions, child labor, forced labor, etc. Taking an agroecology and integrated system management approach, regenerative agriculture aims to increase biodiversity, enhance ecosystem services, and increase agroecosystem resilience thus leading to resilient livelihoods.

    Dan: How do best practices in regenerative agriculture differ from sustainable farming?

    Madhuri: Sustainable farming ensures that the agricultural practices do not negatively impact and degrade the environmental, social, and economic aspects of the surrounding ecosystem. This is a journey to move from sustainable agriculture to regenerative agriculture, which is more of a natural progression where the focus shifts towards making the system better by adopting an ecosystem approach to enhance biodiversity, improve soil health through increased microbial activities in the soil, thereby building resilient systems that can withstand the adverse climatic scenarios. Hence, regenerative agriculture is a holistic approach accounting for all ecosystem services. At Rainforest Alliance, over more than 34 years, our sustainability standard has incorporated many of the principles of regenerative agriculture, such as soil health management (including composting and mulching), integrated pest management, biodiversity conservation, agroforestry, and a focus on climate-smart practices.

    Dan: Will you discuss the Rainforest Alliance’s view of intensive farming and mono cropping common in tea?

    Madhuri: Some tea producers have already innovated over the years and started intercropping with spices to diversify their produce from the estates. Hence, intensive farming is moving towards diverse intercropping in some cases, also to support greater revenues, in addition to tea tourism. The need for shade trees due to extreme climate conditions is bringing a shift towards agroforestry, too. Thus, we find that farmers are moving away from intensive farming as they already are aware of the deteriorating soil health of their farms and are willing to explore alternative solutions. Adopting our certification program brings these regenerative agriculture practices for building resilient farming systems in today’s world of changing climate.

    Dan: What are the most pressing challenges facing the tea industry?

    Madhuri: The tea industry in India and globally is grappling with significant issues that challenge its survival. Changing climate with untimely and unprecedented flooding and droughts coupled with increased pest infestations have led to significant crop loss. To add to this, supply chain disruptions due to pandemic, absenteeism, shortage of labor, increase the cost of production and unfavorable market conditions have contributed to loss of business for many key players. Further, the plight of tea smallholders that now contribute more than 50% of tea production in India is beyond comprehension given the limited resources at their disposal. We find those players who already had sustainability ingrained in their business practices, for instance fair wages, better life quality of workers, sound agricultural practices in their estates are resilient and better able to sustain themselves.

    — Dan Bolton

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  • Tea Biz Podcast | Episode 34

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    Listen on your favorite player

    Hear the Headlines

    | Sri Lanka Tea Yields Feared to Decline
    | McLeod Russel Settlement Resolves Insolvency
    | Bangladesh Tea Sector Returns to Pre-Pandemic Production Levels

    Seven-minute Tea News Recap

    Tea Price Report
    Sept 4 – Sale 35

    India Tea Price Watch

    The South India Tea Exporters Association, led by Chairman Dipak Shah, identified twin problems that have continued to be a significant challenge this year: one is the rising cost of ocean freight, and the second is the problem of pesticides in tea where the onus of testing for permissible residue levels lies with the producers. But the liability – should tea be rejected by the buyer – rests with the exporter. Learn more…. – Aravinda Anantharaman

    Features

    This week Tea Biz visits with Rare Tea Lady Henrietta Lovell whose passion for tea is exceeded only by her commitment to bettering the lives of those who make it.

    … and then we travel to Banbury, UK to learn how the Tea History Collection is digitizing tea history one tome at a time.

    Rare Tea Lady
    Since founding The Rare Tea Co. in 2004, Henrietta Lovell has charted her own course in tea.

    Henrietta Leads the Way

    By Kyle Whittington | TeaBookClub

    Since founding the Rare Tea Co., in London in 2004 Henrietta Lovell has traveled the globe sourcing direct for the world’s five-star dining rooms and developing relationships at the farm level where her commitment to fair pricing for the finest tea and charitable work set a standard. “If I can make people appreciate tea, it will change the world,” she says. Rear more…

    Listen to the Interview
    Rare Tea Lady Henrietta Lovell.
    Tea History Collection founder Denys C. Shortt OBE

    Tea History Collection

    By Dananjaya Silva | PMD Silva & Sons

    The Tea History Collection in Banbury, UK, founded by Denys Shortt OBE has hosted a full calendar of events since opening in May. This tea industry resource is now undertaking the daunting task of digitizing bound volumes recording the trademark and ownership of colonial gardens from the early days of tea. Listen as Shortt discusses the importance of preserving tea company heritage online to be shared by all. Learn more…

    Listen to the interview
    Denys Shortt on the importance of digitizing tea history for all to share.

    News

    A monument known as the Tea Daughter at the entrance of Moulvibazar district at Srimangal, Bangladesh. Photo courtesy Faizi Tea Estate, credit: Shomoyeralo.com

    Bangladesh Tea Rebounds

    By Dan Bolton

    The tea sector in Bangladesh is expected to return to near pre-pandemic production levels after setbacks in 2020. Like neighboring Assam, Bangladesh experienced a spring drought, high temperatures, aggressive pests, and the onslaught of the pandemic. Despite these challenges production through July is ahead of last year’s totals and estimated to reach 86 million kilos. Read more…

    Spring bounty could become a fall shortfall as synthetic fertilizer supplies dwindle. Kandy tea garden in morning light by © Luboslav Ivanko | Dreamstime.com

    Sri Lanka Tea Yields Feared to Decline

    By Dan Bolton

    Sri Lankan tea growers are experiencing the first effects of the country-wide ban on chemical fertilizers and plant protection chemicals (PPC).

    After a productive spring, the fall harvest is predicted to decline beginning in October.

    Herman Gunaratne, one of 46 experts picked by President Gotabaya Rajapaksa to guide the transition to organic-only inputs told Agency Press France (AFP) that “The ban has drawn the tea industry into complete disarray.”

    Gunaratne who manages the Ahangama Tea Estate, said “The consequences for the country are unimaginable.” was removed from the Green Socio-Economy after disagreeing with the president, according to AFP.

    President Gotabaya ordered a halt to inbound shipments of fertilizers used to cultivate food crops such as rice and cash crops including cinnamon and pepper. Growers are concerned that plants accustomed to a rich diet of nitrogen and phosphate will take time to adjust to organic compost and manure.

    Tea is the nation’s highest-earning export, generating $1.25 billion in foreign currency from the sale of 300 million kilos of tea annually. Sri Lanka harvested 187.8 million kilos through July. Mid-year crop yields were 20% ahead of the half-year mark set in 2020 but prices were higher on average last year.

    Meanwhile, the fiscal crisis facing the country worsened as the Sri Lankan rupee depreciated 20% against the US dollar and British Pound. Food inflation is at 11.5% and long queues at food markets signal shortages. The government has invoked rules that fix prices and prohibit the hoarding of staples such as paddy, finished rice and sugar which briefly increased to SLRs 200 per kilo.

    Sri Lanka’s economy, heavily dependent on tourism, declined 3.6% in 2020 and foreign reserves are at record lows.

    Biz Insight – During the next month Tea Biz will interview several key decision-makers, tea researchers, and non-government agricultural experts to discuss the pros and cons of switching Sri Lanka to organic-only cultivation.

    McLeod Russel Settlement Resolves Insolvency

    India’s largest bulk tea producer has settled with creditors to resolve financial peril.

    PP Gupta, managing director of Techno Electric & Engineering, agreed to terms for repayment of a delinquent INRs 100 crore ($14 million) loan by McLeod Russel India, saying “this is now behind us, and we wish the company good luck.”

    Techno triggered the insolvency on Aug. 6 by filing a formal application with the National Company Law Tribunal (NCLT) for redress.

    McLeod borrowed the funds in 2018 and failed to make timely payments due to shortfalls in revenue from tea. The company sold several tea gardens to meet its obligations, but the sums were insufficient to satisfy creditors. McLeod currently owes its lenders approximately INRs 1800 crore (about $245 million). A resolution process, led by the Reserve Bank of India (RBI) will now proceed.

    The company operates 31 tea estates in Assam and two in West Bengal, producing a combined 44 million kilos of Indian tea annually with additional holdings in Africa and Vietnam.

    — Dan Bolton

    • Read more… links indicate the article continues. Learn more… links to additional information from sources.

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