• Q|A Jeff Champeau


    Sparkling tea is on a trajectory akin to small-batch, craft-brewed beer where carefully selected ingredients are individually prepared to showcase their best characteristics. Recipes emphasize balance, with efficacy and taste foremost. Excellence in blending and brewing preserves high concentrations of polyphenols and other beneficial plant compounds with minimum calories, nothing artificial, the convenience of cans and the fun of fizz.


    Listen to the interview:

    Rishi Tea & Botanicals VP Jeff Champeau on sparkling botanicals.

    Jeff Champeau, vice president of business development at Rishi Tea & Botanicals
    Jeff Champeau, vice president of business development at Rishi Tea & Botanicals

    Healthful Effervescence

    Jeff Champeau, vice president of business development at Rishi Tea & Botanicals in Milwaukee, Wis., explains that marketing seasonality is a great way to introduce craft-brewed tea into our lives.

    Dan Bolton: Jeff, is fizzy tea destined for mainstream consumption? Will authentic craft-brewed, plant-based, low-sugar, lightly carbonated genuine teas and herbal infusions overcome barriers to distribution to become a significant revenue source for the beverage industry?

    Jeff Champeau: Absolutely. And that is something that all of us in the tea industry around the world should be proud of and should celebrate. This is like coming home. This is a very exciting time to seesugared soft drinks, sodas and beverages being something people are turning away from en masse. They’re looking for more healthful alternatives. It is an awesome trend. Tea has been around for 5,000 years, it’s resilient, and there’s a reason for it. Tea speaks to our soul. It’s healthful. It enlightens us. It’s one of the most ancient plants that people have ever been connected to. And it’s about time that it hasmuch of the consumer market paying attention. It’s so delicious you don’t need sweetener to appeal to the everyday palate, the everyday consumer out there.

    Dan: Breaking the sugar habit appears to be a primary driver of sales.

    Jeff: If you’re using high quality ingredients, if you’re using skillful blending techniques you can deliver a very interesting complex taste without added sweeteners. That’s something that people can really feel deeply refreshed by ? not just satiated. Something that tastes good that scratches that itch to refresh my palate after food.

    Soda may satiate them in the moment, but you can’t have two or three or four of them without feeling it in your belly. Something that really has the kind of cleansing hydrating effect of sparkling tea — that’s something you can really feel refreshed by and drink several. That’s what we sought to achieve with the sparkling botanicals.

    Dan: Tell me more about the characteristics of the new line.

    Jeff: Our sparkling botanicals are brewed using real plants to deliver real virtue. They’re the same super premium direct trade botanicals and teas that we use in our loose leaf and sachet tea blends, many of which are certified organic.

    We microbrew them using proprietary brewing techniques to yield a really balanced and craft brewed tea that is sparkled up with a carbonated water.

    Using rare citrus and achieving a unique balance with teas with herbs, botanicals, spices, were able to develop, a two-year shelf life product with no added sugar, no added sweeteners of any kind, nothing artificial, only zero to two grams of sugar per can, using real infused fruits like berries or citrus.

    Craft brewed sparkling tea
    Micro-brewed sparkling teas and botanicals

    And these offer only 5 to 15 calories, which is really speaking to the fact that they have real plants.

    It all comes down to that part of the balance. You’re getting the balance of the polyphenols, the tannins that are extracted, whether that’s from tea leaves or from of the super fruit botanicals and fruits that we’re using in some of the profiles.

    We have six tasty profiles, with two more scheduled to be introduced online later this year for distribution next spring. Our MSRP is from $2.99 to $3.49 per 12-ounce can. Ordered online a 12-pack sells for $40. Subscribers pay $36.

    Schisandra berries
    Schisandra berries grow like a grapes on a vine. The taste is a balance of sweet, sour, salty, bitter and pungent.

    Dan: Will you describe the functional plant-based ingredients in these blends.

    Jeff: The Schisandra Berry from Northeast China is just amazing. It is an adaptogen that helps the body regulate physical and mental stress. It is used in traditional Chinese and Korean medicine. It’s also been used for centuries as a beauty tonic, to detox the liver, to maintain healthy skin and even an aphrodisiac.

    It is called the five-flavor fruit. The outside of the fruit is a little bit salty, the flesh is sweet and tart in a nice balance. The pit is bitter and pungent and a little spicy. It is a mood booster said to deliver energy to the five meridians and to balance chi. It has an amazingly refreshing character with a color like a sparkling rosé.

    • Schisandra Berry – An adaptogenic elixir crafted from a single ingredient: forest grown schisandra berry.
    • Turmeric Saffron – This is a blend of tangy Golden Berries from the Amazon, lush California lemons and fragrant saffron, the most expesive spice in the world. The ingredients are steeped with forest-farmed turmeric from Burma and jungle-grown green cardamom from Guatemala. The saffron delivers an amazing hue to the infusion. You can really see that there are real plants used to make these drinks.
    • Black Lemon – Black lemon is a high caffeine blend of black tea from from Northern Thailand with a combination of California dried lemon and black lemon from Guatemala. The Guatemala lemon uses an ancient Persian technique to ripen and oxidize the the lemon – a kind of food preservative. It has a bright, citrusy flavor with a malty finish. There are about 50 milligrams of caffeine per can.
    • Dandelion Ginger – My personal favorite contains dandelion root for detox and ginger. It is an anti inflammatory blend that also features a really cool type of tea called Kuro Koji, which is a Japanese green tea that’s fermented with the Koji yeast that’s used in fermented foods. The dandelion root is roasted and the ginger we use is prized for its pungency, aroma, and spiciness. The combination is craft brewed and combined with red chili and detox tonic herbs. It’s like a ginger beer with zero added sugar that offers satisfying depth and heat.
    • Grapefruit Quince – This blend elevates everyday replenishment with juicy hibiscus, aromatic yuzu and succulent quince. We were inspired by traditional Korean herb teas that feature quince to soothe and support easy breathing. Hibiscus is enjoyed throughout the tropics for refreshing, cooling energy and is widely regarded to help lower blood pressure, promote arterial health and support metabolism.
    • Patagonia Maqui – Wild-foraged maqui berry stimulates the palate with accents from red wine grape skins and forest berries to create a sophisticated flavor with an almost wine-like profile. Maqui berries are a prized source of antioxidants like anthocyanins and have been traditionally used by the people of the Patagonia for vitality and cleansing. The Maqui berry is harvested from the Patagonia region of Chile. It brings to life different kinds of health functions that are derived from a variety of ingredients. This one is great on the way to work, at mid-morning break or as something to go with lunch that offers a little caffeine to support digestion. At the dinner table it can be served as an alternative to wine.

    Dan: Will Camellia sinensis or herbal infusions win the race for market share?

    Jeff: I think herbals will lead in North America, there’s a greater variety and different colors, different levels of tartness, ingredients that appeal to the younger drinkers that are maybe newer to the category, but I don’t think that means that we should refrain from using real tea and in developing the lines out further.

    Dan: How will tea companies win over the hearts and minds of consumers with respect to the healthful benefits of tea?

    Jeff: Tea is part of a broader natural products industry in North America, and I think sometimes what we get wrong in the natural products industry is the too much hype around a particular tea or a particular botanical or herbal ingredient. Being on trend can be exhausting for the consumer. It can treat tea and herb like fashion. Tea isn’t fashion, but that kind of misses the real charm of tea. Tea is not fashion. It’s ancient food and medicine.

    Tea can connect us to the rhythms of nature and to the planet. It can access to people far and wide; the growers, the plucking teams, the artisans, and leaf processing teams, the worldwide traders and promoters of tea, the baristas, the grocery merchants, the consumers. But how can farmers and producers be sustained if their particular crops are hot in the market for two years, only to slow down as some other trends takes off?

    So, I think the question is, how do we how we choose to market tea and botanicals in a way that really encourages a deep and steady and earnest interest into infusing tea into our lives.

    Tea is an agricultural product. It has these different waves of the harvest that come throughout theseasons. Year to year those,harvests are going to fluctuate naturally as mother nature gives us what she can.

    If you ask most tea professionals, what’s their favorite tea, most will likely tell you what their favorite tea is, at that moment, because they’re plugged in to the harvest calendar, they’re tracking with what’s fresh and in season.

    Botanicals have their own harvest seasons and new areas of cultivation. If we cultivate a seasonal approach and recognize that, tea, herbal teas, botanical spices, a part of our broader choices in diet and in what we choose to consume.

    It’s good that we introduce variety into our diet. And it’s good that we introduce variety into our tea habits, too, and embrace that seasonal rhythm of the harvest.

    We have an opportunity to really cultivate a dynamic tea culture in North America that celebrates the seasonality of tea. Not every tea is going to be consistent. There’s a beauty in the variety and some of that unexpected that can come year to year and season to season. And we should have a reverence for the tea traditions, connecting us to the deeper philosophy of tea. But we should also feel a sense of creative freedom to draw inspiration from those traditions to offer the North American market new and exciting ways to infuse tea into their lives.

    In doing so we’re going to open up their minds to thinking about tea as something that they choose to drink and enjoy on the daily basis, maybe at some different occasions than we might expect.

    This interview has been edited and condensed.

    Sparkling Botanicals from Rishi Tea & Botanicals

    Sparkling Botanicals

    “We want to focus the passion and creativity of Rishi’s amazing team on something totally new and exciting — something that honors our enduring relationships with farmers and tea drinkers while transcending our core business of dried teas and botanicals. As a selector, importer and taste maker, our natural progression is to make beverages with teas and botanicals that are ready to drink. People love our teas but have less and less time to brew them. Tea drinkers are moving to bottled and canned teas to save their time but have few options that offer premium botanicals and high-end teas brewed without added sugar, sweeteners or acidic preservatives. Our new line of Sparkling Botanicals elevates RTD with craft brewing and meets this demand for real plants with real virtue.”

     -Joshua Kaiser, founder of Rishi Tea & Botanicals

    Sparkling Botanicals

    Rishi Tea & Botanicals
    185 S. 33rd Court
    Milwaukee, WI 53208
    (414) 747-4001

    www.rishi-tea.com


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  • COVID’s Toll

    COVID's Toll on India's Tea Estates
    India’s tea industry is excempt from lockdowns but there are limits on workers in factories and masks are mandatory.

    COVID-19 2nd Wave Strikes Blow to Rural India

    Rural India is home to 895 million of the nation’s 1.35 billion people, most of whom live in small villages and towns.

    Last year the coronavirus pandemic plunged India’s economy into a recession for the first time in nearly a quarter of a century. Domestic consumption decline so severely that the economy contractedd by an estimated 7.7% according to the OECD’s Economic Outlook 2021.

    Agriculture accounts for a third of India’s gross domestic product and tea production, tea exports and tea retail all suffered. Agrarian workers, however, were largely spared the high death counts experienced in the nation’s cities.

    That is no longer the case as the COVID 2nd Wave crests. India’s tea industry employs 3.5 million workers who reside in small homes and are reliant on crowded vans for transport, resulting in much higher rates of infection this spring than in 2020.

    Although the tea industry is designated essential and therefore exempt from the strict lockdowns ordered in 2020, containment zones are in place at more than half of Assam’s 800 registered gardens. A combination of dry weather and reductions in labor due to COVID restrictions depressed harvest totals during the first six months of 2021.

    The situation is less dire in the Nilgiris following a major push by Minister for Medical and Family Welfare Ma. Subramanian. The state ministry prioritized tea workers and reported June 28 that all tea estate workers and factory workers have received a first shot and that 21,500 of 27,500 tea workers in tribal communities had been vaccinated. The ministry has vaccinated 289,000 individuals to date and will soon begin administering booster shots.

    Situation summary

    • Daily wage earners face reduced hours and fewer work days harvesting and processing tea. Declines of INRs 250-500 daily are common. As a result, many now find it difficult to meet daily food and loan obligations. Pay varies by region and there are incentives for the most productive workers, but wages are low at INRs 7,000 ($96) per month.
    • Testing is inadquate. Rapid antigen tests are available but workers, most without vehicles, must travel long distances to testing centers. Traffic restrictions limit travel between districts.
    • Hospitalization is expensive. Sugarcane grower Dattatray Bagal, told The Economic Times that a hospital bill of INRs 820,000 ($11,191) to care for his father, who died of COVID-19, “not only exhausted our savings but also forced us to borrow from relatives.” Some farmers were hit so badly that they don’t have money to buy seeds and fertilizers to plant summer-sown crops such as corn and soybean, according to the newspaper.
    • Accustomed to malaria (6.7 milllion cases in India, 9,620 deaths annually), tuberculosis (440,000 deaths annually) many workers are far more fearful of diseses they know. Mandatory quarantines and isolation during hospitalization lead to rumors that once someone is taken away, COVID victims never return.
    • Hospitals in the tea growing regions are small and generally equipped to provide only first aid and basic medical care. Few are staffed with full-time doctors and nurses. Medicines for fever, headaches, stomachaches are in short supply.
    • Many who fall ill restort to home remedies, fearful they will be sent to a COVID Care Centre (mandatory in Assam). Standard contact tracing often identifies family members who work at the estate, as well as neighbors and friends of those who test positive, leading to 15-day quarantines and loss of wages.
    • Tea workers do not receive paid leave. Central and state governments have issued pandemic guidelines for paid leave. West Bengal’s Department of Personnel and Training instituted its paid leave policy June 7. Categories include commuted leave, special casual leave, earned leave, half-pay leave for any government worker who tests positive for COVID. Tea Estates are asked to consider the same.

    Christian Kharia, who lives at Nagasuree tea garden and is the president of the UBCSS (Uttar Bangal Chai Shramik Sangathan) said that “People in the tea gardens are very casual about COVID. They treat it like any other sickness. People are not following COVID protocols.”

    Workers Face Long Term Financial Setback

    In India, in 2019, there were are an estimated 138 million subsistence households earning $1,000 to $5,000 a year, ($85 to $400 per month), according to Statista. The impact of COVID-19 on household income will slow that growth due to lost hours and a significant decline in commerce due to lockdowns.

    Prior to the pandemic, income growth was projected at 5% in rural India with the lower middle class expected to expand to 131 million households earning $5,000 to $10,000 annually by 2022, up from 92 million households in 2019. The 30 million rural households earning $10,000 to $25,000 were estimated to grow to 48 million by 2022, according to Statista market research.

    The pandemic dashed that promising outlook, taking its toll in every sector.

    Deaths Due to COVID-19

    COVID-19 ImpactAssamWest BengalKarnatakaKeralaTamil Nadu
    Population (2020 in Millions)35.99729696.78684868.809637.9612888.32544
    Population Density (per k2)3971,029 320860550
    Tea Garden Workers (registered)
    Tea Smallholders1.3 million
    Infections (curent)39,837
    Confirmed Cases (total)466,590100,437
    Positives per 100 tests (Positivity)
    COVID Deaths4,0387,663
    Compiled from state and territory COVID websites. Click link to view source for latest updates. | Updated 1 July 2021.

    Assam

    Update 6-29: Assam is reporting that a high percentage (12%) of those testing positive are young people under 18 with 5,778 under five years of age, according to the National Health Mission. Deaths number 34 since April. During the second wave 280,504 have so far tested positive in Assam. The Deccan Herald writes that 28,851 of those who tested positive were between the ages of 6-18 years.

    Dibrugarh reported 2,430 cases among children, which was 12.19% of total cases. Nagaon was third with 2,288 cases (14.38%) followed by Kamrup (2,023) and Sonitpur (1,839). During the first wave, 8% of those who tested positive were younger than 18 years, according to the National Health Mission.

    Update 6-28: Vaccination sites are active at 415 tea estates as of June 22. In Assam 99,701 tea workers have received a first shot and 6,027 have received a second shot. A total of 508 tea estates reported COVID cases. Those with 20 or more were ordered to designate containment zones and activate COVID Care Centres.

    During the period May 18-28 Assam recorded a 300% spike in COVID cases, according to Bidyananda Barkakoty, adviser at the North Eastern Tea Association (NETA). He said that the number of workers in the factory and fields was reduced by half. Workers who tested positive are forced to stay at Covid Centres to prevent spreading the virus to their families.

    OVERVIEW

    Assam’s 800 registered tea estates and 1.3 million smallholders produced 725,000 metric tons in 2019. Last year Assam’s big gardens produced 336,000 metric tons and smallholders produced 290,0000 metric tons for a combined 626,000 metric tons. Production is expected to decline by 20-25% as a result of dry weather and COVID mandates that reduce the first flush production by 60,000 metric tons. About 18% of Assam’s population works in tea.

    Assam (Tea Estate Workers)

    LocationTea Workers
    Active Cases
    Tea Wokers
    Total Cases
    Tea Workers
    Recovered
    Deceased
    Tea Workers
    DibugrahN/A N/A N/A
    Jorhat N/A N/A N/A
    Guwaharti N/A N/A N/A
    xxxx N/A N/A N/A
    Total2,81713,22910,410 102
    Source: North Eastern Tea Association (NETA) | 2nd Wave March-June

    Tamil Nadu (Nilgiris)

    Updated 6-23 Active cases stand at 6,895 for the Nilgiris. The state government has also placed Nilgiris on the priority list for vaccinations, as the drive continues.

    Mobile vans deployed for vaccination drive in the Nilgiris

    Supriya Sahu (IAS), COVID Monitoring Officer for the Nilgiris said, “The population of tribals in the Nilgiris stands at 27,000 of which 21,500 are 18 years and older. We have so far vaccinated 15,414 tribals. We are involving Primary Health Centres (PHC) and Block Medical Officers completely in the planning. Everyday, they inform the NGOs about the number of vaccine doses that are coming in so that the NGO teams can mobilise people in different villages. The PHCs then follow that list in a true example of bottom up community-owned planning. We had launched an awareness programme with NGOs to break the vaccine hesitancy. Key was to try and mobilise the entire village and not just individuals so that we can achieve 100% coverage in a village.”

    Tamil Nadu (Nilgiris Tea Estate Workers)

    Location Active
    Cases
    Tea Workers
    Hospitalized
    Deceased
    Tea Workers
    Coonoor549637
    Udhagamandalam6740
    Kotagiri97131
    Gudalur294333
    Total1,00711311
    Source: Supriya Sahu | 2nd Wave March – June 23, 2021

    Kerala

    Updated 6-23: According to the state COVID portal, on 1st April, Kerala had recorded 4,632 deaths from COVID-19 and active cases were at 26,201. The first reported death was 30th March, 2020. On 22nd June, the number of active cases were 100,437 with fatalities between 1st April, 2021 and 22nd June, 2021 reported at 7,663. 

    The main tea-growing districts of Wayanad and Idukki saw slightly lower numbers than other districts in the state. The two districts combined report 331 deaths and have 9019 active cases as of 22nd June 2021. Vaccinations are underway with 28.17% vaccinated at present. Palakkad and Thiruvananthapuram districts on the other hand, were more severely affected. Palakkad reported over 1000 deaths from COVID so far, with 7,320 active cases as of 22nd June, 2021. Thiruvananthapuram was the worst affected district and currently has nearly 100,000 active cases. Reported fatalities stood at 2,562 in this district. 

    Ashok Dugar of Chinnar Tea said that the 2nd Wave saw more cases and the workers were reluctant to shift to the isolation centres. So at their estate, the 30-bed hospital was converted to a District COVID Care Centre in May. They are also preparing for the 3rd Wave now. The disruption in production that came with the first wave was not there in the second wave as tea was exempted from lockdown.

    He added that estate managements who have large infrastructure and ready machinery should come forward to set up and upgrade their facilities to take care of not only their own but neighbouring patients in the remote rural areas, which will be great relief to the government’s much-stressed resources .

    Kerala (Tea Estate Workers)

    Location Active
    Cases
    Tea Workers
    Hospitalized
    Deceased
    Tea Workers
    Idukki 5,244 N/A N/A
    Wayanad 3,215 N/A N/A
    Total 8,659 N/A 331
    Source: Kerala COVID Portal | 2nd Wave April 1 – June 23

    West Bengal

    Updated 6-1: In West Bengal, more than 4,500 cases have been recorded across 300 of the state’s 800 tea gardens, according to government data, as reported by Thomas Reuters Foundation.

    West Bengal (Tea Estate Workers)

    Location Active
    Cases
    Tea Workers
    Hospitalized
    Deceased
    Tea Workers
    DarjeelingN/A N/A N/A
    Dooars N/A N/A N/A
    Terai N/A N/A N/A
    xxxxx N/A N/A N/A
    Total N/A N/A N/A
    Source: West Bengal

    Regional Updates

    Tea Biz welcomes COVID updates from tea estates, labor unions, tea associations, medical and and government authorities. Write Dan Bolton, Aravinda Anantharaman (Nilgiris), or Roopak Goswami (Assam)


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  • Tea Biz Podcast | Episode 22

    Hear the Headlines

    | Cold Brew is Trending for Iced Tea Month
    | DAVIDsTEA in Canada Settles its Debts
    | Kenya Exports Surge but Auction Prices Remain Low
    | PLUS Smith Teamaker’s Ravi Kroesen explains the company’s new plant-based café concept and Amy Dubin-Nath talks about the future of whole leaf Indian teas.

    Tea Price Report

    As India’s second flush gets underway, the mood is glum as the industry continues to deal with many challenges. Local media reports on rising imports of tea into India and in Darjeeling, producers have expressed concern about zero-duty imports from Nepal. Read more…

    Features

    Tea Biz this week travels to Columbus, Ohio to visit with Amy Dubin-Nath, founder of Janam Tea and an ad hoc India tea ambassador to the US.…

    …and then to Portland, Ore. where Ravi Kroesen, head teamaker at Smith Teamaker, explains the many uses of tea at the company’s recently opened plant-based café.

    Amy Dubin-Nath
    Amy Dubin-Nath

    India’s Spectacular Specialty Teas

    Amy Dubin-Nath sees a bright future for specialty teas originating in India, “but I don’t think it is going to be a quick flip where people are only after high end teas.” Instead, the process will be gradual, following a path similar to wine. “Do I want to see the spectacular teas of India keep selling at a high price?” she asks, “Yes, definitely, as that elevates the perceived value, making it something precious. I believe that message should be spread throughout the world — including in India.” Read more…

    Ravi Kroesen, Head Teamaker Smith Teamaker
    Ravi Kroesen, Head Teamaker at Smith Teamaker, Portland, Ore.

    A Plant-Based Café where Tea Reigns Supreme

    By Jessica Natale Wollard

    The intent of the new café concept, says Smith Teamaker Ravi Kroesen, is to “develop foods that really reflect our ethos of plants, as well as utilizing tea as an ingredient.” The new Smith Teamaker café sources locally with a menu that includes snacks, lattes and iced concoctions with full meals that demonstrate how tea and food can live in harmony from leaf to cup to plate. Read more…

    Cold Brewed Tea
    Cold Brewed Tea

    Iced Tea Month: Cold Brewed Teas are Trending

    By Dan Bolton

    The challenge of correctly steeping a delicate green to avoid bitterness disappears when the tea is brewed overnight in the fridge. “I’m cutting calories and want something more flavorful than water,” begins one Reddit thread. “Can you explain to a total cold brew newbie how to get the most flavorful green tea without additives.” The responses were enthusiastic and numerous, evidence that the technique rivals more traditional fresh-brewed, flash-chilled black tea.

    Whether boiling tea to pour over ice, or making cold brew, the tea to water ratio is critical. Begin with about twice the normal weight of tea, 6-8 tablespoons for 1.5 quarts (or 8-12 grams per 950 milliliters). Stale tea requires more leaves, quality whole leaf requires fewer. Make sure your vessel is airtight as tea will pick up the scent of leftovers.

    Allied Market Research estimates RTD tea generated $30 billion in 2019 and will grow 5.5% annually to $39 billion in 2027. Health-conscious millennials are driving sales. Mintel reports that 25% of new tea innovations are RTD. In China where 78% of consumers are frequent drinkers of freshly brewed hot tea, RTD enjoys 49% penetration, which is greater than tea bags, according to Mintel.

    Biz Insight – Cold brew coffee experienced remarkable five-year growth in both bottled ready-to-drink and foodservice. North America is the largest cold brew market globally with 66% market share, followed by Europe (17%) and Asia (11%). In the US – 2015 toles of cold brew coffee are expected to increase ten-fold from $110 million to $945 million in 2025, according to Statista market research. Three-sixty market research estimates the market globally will reach $2.8 billion by 2026.

    DAVIDsTEA Settles Debts

    A Quebec Superior Court approved the Montreal-based tea company’s plan to settle $118.2 million in claims for $18 million payable in July. A US Bankruptcy Court this week approved a similar plan for resolving debts owed by DAVIDsTEA’s US subsidiary.

    The settlements are a final step toward exiting a year-long reorganization precipitated by the closure of all but 18 of the company’s more than 200 locations. The settlement will be divided with $15.3 million going to Canadian creditors and $3.1 million to US creditors, according to PwC, Canada. The company has sufficient cash on hand to meet settlement obligations.


    Under the direction of CEO Sarah Segal, DAVIDsTEA has adopted a “digital first” market strategy for sales to consumers. Its wholesale products are now found in 2500 grocery and pharmacy outlets. The company reported sales of $40.2 million in fourth quarter 2020. Revenue from the fast-growing online and wholesale segment has increased from $42 million in 2019 to $97.2 million in 2020. Greatly reduced brick and mortar revenue now accounts for only 12.9% of total sales. Revenue overall declined 38% in 2020 leading to $55.9 million in losses.

    Kenya surge
    Kenya tea exports surge during first three months of 2021

    Kenya Tea Exports Surge

    Despite upheaval at the factory level, Kenya exported much higher tea volumes this year. First quarter exports increased 18.9% compared to 2020, according to the national Tea Directorate. Volume topped 153 million kilos, up from 128 million during the same period in 2020.

    Smallholders that produce 65% of the country’s tea experienced variable weather conditions in 2021 creating an overall decline in production during the first three months of 2021. Growers, primarily in the far west, harvested 18 million fewer kilos since January compared to the same quarter in 2020. Auction prices are on the rise, reaching $1.84 per kilo last week but remain below the $2 per kilo threshold considered essential to cover production costs. Weekly prices so far averaged $2 only once in 2021. Tea prices averaged $1.80 per kilo in 2020, down from $2.05 per kilo in 2019.

    Biz Insight* – Kenya’s tea growers are benefiting from payment of 50% of the total due thanks to national reforms instituted this spring. Half the price for green leaves delivered within the month to Kenya Tea Development Agency (KTDA) factories, is paid by the 20th of the following month. The balance is paid in the fall at the end of the financial year. KTDA’s factories are owned by smallholders and managed by KTDA.

    *Corrected 6.20.2021

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  • Q|A Amy Dubin-Nath


    Amy Dubin-Nath sees a bright future for specialty teas originating in India, “but I don’t think it is going to be a quick flip where people are only after high end teas.” Instead, the process will be gradual, following a path similar to fine wine. “Do I want to see the spectacular teas of India keep selling at a high price?” she asks, “Yes, definitely, as that elevates the perceived value, making it something precious. I believe that message should be spread throughout the world — including in India.”


    Listen to the interview:


    Amy Dubin-Nath
    Amy Dubin-Nath

    India’s Spectacular Specialty Teas

    Amy Dubin-Nath established Janam Tea in 2004 to showcase the rich array of teas produced in India, which she experienced firsthand during her self-guided travels. She began developing her palate as a teenager and came to tea appreciation by way of wine and whiskey. In 2005, she opened a tea shop specifically for single-origin Indian teas and in 2016 a tearoom in New York City.

    Dan Bolton: Are single-origin whole and broken leaf teas the future?

    Amy Dubin-Nath: Oh, that is that is such a fantastic question. I love talking about the future of tea. Because everything is possible in the future, right? When it comes to the future of tea, I see a broader range.

    We have tea at every level, the challenge is that we have been exposed as a society to teas of a certain style of a certain grade of a certain color. It creates a certain expectation.  If you like Lipton tea, great, drink it, I’m happy for anybody to drink tea, but there are other styles, there are other places that tea comes from, there’s other experiences that you can have.

    I think the near term future of Indian tea is in the excitement and curiosity around exploring India’s most spectacular teas. I foresee in the next 15 to 20 years, that people will have more facility with the language of tea and clarity around what they’re buying and be intentional about buying and be able to better discern what they want in the grocery store.

    I personally, in my professional experience, do not believe we’re there yet. It’ll take a little bit of time to expand people’s horizons, giving them more choices and some more opportunities to taste fine and specialty teas.

    Dan: The new president of packaged tea at Tata Consumer Products in April introduced a premium tea sold exclusively online and marketed exclusively to India’s domestic consumers. Tata’s 1968 tea in 50g tins sells for between 500 and 1500 rupees ($20 US). The company reports that sales grew by 59.6% in value and 23% in volume from January this year.

    Amy: The thought that one person has only one tea, and they only drink one tea 10 cups a day their whole life definitely does happen, but more and more people want different flavors, just like preferring to wear red one day or yellow another day. You just want novelty.

    However, I don’t know that you can attribute all of that to the desire for tea itself. Sometimes people want the best of the best just because it’s the best. And it doesn’t matter what it is. And sometimes people want something that looks posh, because it’s a really special gift.

    You can have the best, most gorgeous packaging in the world, and the best tea in the world, but that tea and the experience of tea are inextricable.

    Indians know what tea is, they already have a flavor expectation, they already understand what it is, but when it comes to long leaf, loose leaf tea, and whole leaf tea, most of that has been exported to Western countries.

    It’s hard to project success, but 1500 rupees for 50 grams in a handmade, beautiful, gorgeous wrapping, is still a tough sell, even in the highest end retail shopping centres in Delhi and Kolkata.

    Do I want them to keep selling at a high price? Yes, definitely because what it does is it elevates the value the perceived value of Indian tea as something that is precious, and it is and I believe that message should be spread throughout the world and including in India.

    The sustainability of our industry depends on getting consumers to wake up to the fact that tea is precious. The value should come up, the prices should come up so that our industry, as a whole, can come up.

    Dan: Will you discuss the pivot to online by tea retailers and the popularity of suppliers selling direct to consumers and share your expertise in marketing tea.

    Amy: So, to share with you a little bit about what’s happening in India in Assam alone there is something like 100,000 small leaf producers.

    Now there are also several smaller areas, gardens, where people are making tea and making experimental tea and some fantastic stuff.

    Amy Dubin-Nath
    Amy Dubin-Nath sampling a selection of Indian tea.

    People who are producing tea are aware that specialty tea is growing as a concept and that organic tea is growing as a concept. But expecting small growers and small producers to be attuned to the whim and whimsy of Americans in particular, is a pretty big ask.

    I would be very surprised to find producers who are rushing to meet the style demands of Americans. They make what they make and they know that their skill and their craftsmanship go into designing the best flavor, the best style for the leaf at that time, and they are trying to get the best prices for it.

    Aside from Janam Tea, TEAORB is the only outlet that I am aware of for small Indian growers. Their online marketplace and website is called TEAORB Marketplace. The site guarantees their teas to be fresh, and they get it to consumers, as close to direct to the from the producers as possible. It was established in 2016. There really isn’t anything that is perfect, pervasive, government backed, or the work of large organizations willing to step up to promote the teas from small producers.

    So far as I know, in India, TEAORB is ground-breaking. I don’t know of any other marketplace for small growers where you can find hand-rolled teas, dheki (mortar and pestle) teas and phalap (tea of Singphos).

    Tea Orb

    TEAORB Marketplace is a social entrepreneurship startup, working closely with small tea farmers and estates of India by providing a virtual platform in an effort to ensure a fair price for their high quality produce and to uphold the essence of sustainability by addressing real issues affecting people and the environment. ? Founder Jayanta Kakati, former secretary, Guwahati Tea Auction Centre.

    Dan: Tell me about your talk next week at World Tea Expo.

    Amy: This is going to be a very interesting week for me because I’m speaking at the World Tea Expo and the Global Summit for All Things Food, a completely separate show at the MGM Grand a couple days later.

    The World Tea Expo talk is all the things I love about Indian tea Indian tea, I feel has been a little bit underrepresented at World tea Expo, so my goal in going is to share with people how I got into it, how I developed my love for Indian tea over 20 years ago, how and why I changed my life to basically be a de facto brand ambassador for Indian tea in North America.

    People don’t realize they’ve been drinking Indian tea. They think of Indian tea as Masala Chai and are unaware that India produces so many different styles and types and varieties.


    Amy’s talk at World Tea Expo, Las Vegas, is titled: The Wild Expanse of Indian Tea: Hang on to your Tastebuds! at 1 pm Tuesday, June 29. Two days later at the Global Summit for All Things Food, Amy will accept an award as one of the 100 most influential food and beverage professionals.

    This interview has been edited and condensed.

    Bespoke Event  Planning
    Janam offers bespoke event planning featuring specialty teas.

    Janam Tea

    Amy is now making plans to open her third business selling Indian tea, a tasting lounge and gift salon in Columbus, Ohio. Amy is a tea curator, host of afternoon tea and a tea educator. She offers staff training and consulting services, introduces fine Indian teas to both corporate and private clients through bespoke events (both social and outcome-driven), and creates custom gifts.

    ? Dan Bolton

    Janam Tea
    Janam Tea

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  • Tea Biz Podcast | Episode 21

    Hear the Headlines

    | Inflation Dampens Enthusiasm Over Rising Tea Prices
    | India’s Tea Industry Under Duress
    | European Union Grants Rooibos GI Protection

    Tea Price Report

    While lockdowns continue, tea auctions in India resumed last week at all the major centers. In the Nilgiris, discussions on whether bought leaf factories can open are still underway.
    Read more…

    Features

    Tea Biz this week travels to Frankfurt Germany to discuss best practices in sustainable wholesale with Jan Holzapfel, owner of Ronnefeldt Tea, a 198-year-old company that is replacing its tea packaging this year with eco-friendly materials, embracing traceability, and reducing emissions by longer air freighting tea.

    … and then to London where Tea Biz Reviewer Kyle Whittington has a single word for INFUSED, a book by Rare Tea Founder Henrietta Lovell that describes her adventures in tea: “Wow,” he writes, “You really feel like you are sitting over a cup of tea with Henrietta as she regales you with her stories, the highs, the lows, and the off on a tangent.”

    Jan-Berend Holzapfel
    Jan-Berend Holzapfel, owners Ronnefeldt Tea

    Sustainable Wholesale

    Sustainable best practices at tea gardens are well established, but the rest of the supply chain offers significant opportunities to protect and conserve resources. Listen to the latest Tea Biz Newsmaker Q|A as Jan-Berend Holzapfel, owner of Germany’s Ronnefeldt Tea, discusses sustainable wholesale.

    Read more…

    Henrietta Lovell
    Rare Tea Lady Henrietta Lovell

    A Book to Re-ignite your Tea Flame

    You really feel like you are sitting over a cup of tea with Henrietta

    By Kyle Whittington | Tea Book Club

    Infused Adventures in Tea

    Wow! What a book! From start to finish Henrietta had me captivated, excited and enthralled by her world. A Tea Book unlike most, this is the very personal story of Henrietta’s adventures with tea in tea and all around tea. From her first fledgling sips out of dainty China Cups at Diana’s House as a child, we are taken along on a ride of reminiscence. With trips to far flung tea fields swathed in mist via the odd lightning strike or two we zip off to tea tastings with chefs at some of the best restaurants in the world, accompanied by her little yellow suitcase and strange meetings on trains. To name to mention but a few of her adventures. 

    Read more…

    Food Inflation
    Food Inflation

    Food Inflation Dampens Enthusiasm Over Rising Tea Prices

    By Dan Bolton

    In the US and Asia, an energetic post-pandemic recovery is underway. Demand is quickly rebounding as consumers spend down their savings and make up for the lost time. Consumers in the largest economies amassed $2.9 trillion in savings since March 2020, according to Bloomberg Economics.

    Now they are eager to spend.

    Retail sales in the US are projected to approach $4.5 trillion in 2021, according to the National Retail Federation. The NRF, which initially estimated 6.5% growth, increased its full-year GDP projection to 7%, the fastest rate in decades. In China, household income grew 13.7% during the first quarter of 2021.

    Widespread inflation is dampening that good news.

    The Organization for Economic Cooperation and Development (OECD) reports inflation in member countries is at the highest level since 2008. Globally, food prices rose for the 12th consecutive month in May, according to the United Nations Food and Agricultural Organization. The FAO’s Food Price Index was 40% higher in May 2021 when compared to May 2020. The Bloomberg Commodity Spot Index, which tracks price changes across a range of metals and agricultural commodities, has jumped roughly 60% in the past 12 months.

    Food prices, including the cost of tea, are rising on demand. Tata Consumer Products, Nestlé and Unilever all announced price increases across their ranges in response to commodity inflation.

    Rooibos plants
    Rooibos Plants, South Africa

    EU Grants Rooibos GI Protection

    The European Union this week awarded Rooibos, which is also known as Red Bush tea, status as a protected geographic indication affording the same protection to products such as champagne and Irish Whiskey.

    The registration allows South Africa’s Rooibos industry to display the EU Seal if the tea consists of 100% Rooibos that is either cultivated or wild-harvested from local municipalities of the Western and North Cape provinces.

    The South African Rooibos Council welcomed the news. Council Chairperson Marin Bergh said that while it is important that nobody else use the name Rooibos “it also gives a certain status about quality, reliability, and sustainability – all those things that go together with a GI.”

    India’s Tea Industry Under Duress

    While the peak of the horrific second wave has passed, India’s tea industry remains under duress as the coronavirus simultaneously strikes down workers, limits plucking and processing, halts inter-district transport, and forces the early-day closure of restaurants and beverage stalls.

    The government estimates more than one million workers, mainly women, are losing productive days and wages due to the pandemic and inclement weather with the arriving monsoons.

    The delivery of 235,000 doses of vaccine this week halted a steep increase in Coronavirus caseloads in Assam’s tea gardens. Daily average infections in June are now 4,000 per week, down from almost 6,000 per week in May. Positivity rates remain high, forcing an extension through June 16 of lockdowns and a daily curfew from 1 pm through 5 am. Shops and restaurants must close by noon and inter-district transport is prohibited. The state reported 450,000 cases and 3,600 deaths. The seven-day average for new cases is 7,400 in West Bengal and 9,000 in Kerala.

    India reported fewer than 100,000 cases for a fifth day and while daily death totals are high at 4,000, this average is expected to decline as the drop in new cases continues. During the peak of the spring infections, from April 1 to May 6, India recorded 926,000 news with a positivity test of 26%. Testing continues at the same pace, but positivity has declined to an average 4%. Active cases are now at 1 million, according to the Union Health Ministry.

    Buyers at auction are finding it difficult to arrange for transport despite the fact tea is listed as an essential commodity. Drivers are in short supply and enforcement of restrictions that prohibit inter-district transport is inconsistent. The immediate impact is a spike in retail prices above records set in 2020. Buyers at auction are spending an average of INRs211 per kilogram in Assam and INRs125 per kilo in Tamil Nadu.

    Biz Insight – There is no slack in demand for tea. Tata Consumer Products reports that revenue from its beverage segment (which includes coffee) grew by 59.6% during the period January-March 2021. Volume was up 23% largely due to an increase in at-home consumption. India’s packaged tea market is estimated at $2.26 billion. An additional $1.3 billion is spent on tea from unbranded suppliers, according to ICICI Securities.

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