• Starbucks Global Expansion Plans | Bangladesh May Finally Break an Elusive Tea Production Record | Adding Sugar and Cream Does Not Diminish Tea’s Health Benefits

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    Starbucks Announces Ambitious Global Expansion to Operate 55,000 Locations by 2030: Tea Played a Key Role in the Siren’s Record-setting Quarter | Bangladesh May Finally Break an Elusive Tea Production Record
    | Research Findings Challenge the Belief that Adding Cream and Sugar to Tea Negatively Impacts Health Outcomes

    Tea News for the week ending Nov. 10
    Hear the Headlines | Seven-Minute Tea News Recap

    PLUS | In October, Transworld, China’s first USDA-certified organic tea producer, and Firsd Tea, the US subsidiary of Zhejiang Tea Group, released the Chinese Tea Sustainability Report, a 12-page survey of perspectives and practices at Chinese tea farms and processing facilities. Jason Walker, marketing director at Firsd Tea in New Jersey and one of the architects of the sustainability report, joins Tea Biz for an in-depth discussion of the results of this ongoing survey.

    Listen to the interview
    Jason Walker, Marketing Director Firsd Tea

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    Tea is a standout in record-setting quarter at Starbucks
    Chai stands out in a record-setting $9.4 billion fourth quarter at Starbucks, which announced plans to operate 55,000 locations by 2030, with 75% overseas.

    Starbucks Announces Ambitious Global Expansion

    By Dan Bolton

    Starbucks CEO Laxman Narasimhan announced a record $9.4 billion fourth quarter to close a $36 billion fiscal year. Revenue was up 12% year-to-year.

    The company will expand to 55,000 locations by 2030, 75% overseas.

    Executive Vice President and Chief Financial Officer Rachel Ruggeri said, “Our customers continue to favor more premium beverages, creating a new normal for mix and customization. To fuel this, we continue to lean in with innovation, offering our Iced Pumpkin Cream Chai Tea Latte, which boosted tea sales, and Pumpkin Cream Cold Foam, which has become a customization favorite with our customers.”

    Gingerbread chai is a hit, I recommend it, Narasimhan told Mad Money host Jim Cramer. Cold beverages, including tea and coffee, are driving sales. Customers add modifiers to cold drinks at a greater rate than hot, and it’s an easier process through the app than anywhere else. These transactions raise ticket and produce personal branding for Gen Z to broadcast via social, according to Ruggeri.

    During the past five years, Starbucks opened 9,000 new stores, 7,000 outside the US. In 2023, foreign locations, including 1,429 in Canada, outnumber for the first time the 16,255 US stores. There are now 6,800 stores in China. Starbucks said it will open an average of eight stores daily, many specially purposed as drive-thru only, double-sided drive-thru, and delivery-only locations. Drive-thru transactions account for 50% of US sales; delivery orders expanded by 24% in 2022. During its year-end earnings call, Narasimhan said the company will spend $3 billion in capital expenditures and grow to 41,000 locations by October 2024.

    “Our reinvention [announced in September 2022] is moving ahead of schedule, fueling revenue growth, efficiency, and margin expansion,” said Narasimhan.

    BIZ INSIGHT – Tea accounts for about 10-20% of beverage sales at coffee shops. Locations serving a wide range of hot and cold teas can increase that share to 20-30% or more. Beverage sales at Starbucks, including tea, generated about 75-80% of revenue, totaling $19.6 billion in FY22, with food products totaling $5.8 billion. Packaged and single-serve coffees and Teavana teas, ready-to-drink products, serveware, and ingredients contributed $6.9 billion, according to the company’s SEC 10-K filings.

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    Episode 142 | Starbucks Announces Ambitious Global Expansion to Operate 55,000 Locations by 2030 | Tea Played a Key Role in the Siren’s Record-setting $9.4 Billion Quarter | Bangladesh May Finally Break an Elusive Tea Production Record | Research Findings Challenge the Belief that Adding Cream and Sugar to Tea Negatively Impacts Health Outcomes PLUS Jason Walker, marketing director at Firsd Tea in New Jersey and one of the architects of the Chinese Sustainability Perspectives report, joins Tea Biz for an in-depth discussion of the results of this ongoing survey.

    Episodes 1-49

    Episodes 50-96

    Episodes 97-142

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  • The Leafies Winners Revealed | Rooibos Tea Named a Top 10 Pantone Color for 2024 | India Tea Undergoes FSSAI Safety Analysis

    UK Tea Academy Announces 2023 Winners of The Leafies | Rooibos Tea Named a Top 10 Pantone Color for 2024 | FSSAI Steps Up Safety Analysis of Indian Tea Factories

    Tea News for the week ending Nov. 3
    Hear the Headlines | Seven-Minute Tea News Recap

    PLUS | Tea was first cultivated in what is now Tanzania by German colonists early in the 20th century. Farms were planted high in the Usambara Mountains, a biodiversity hotspot in the shadow of Mt. Kilimanjaro rising vertically from the plains. The region was known as Tanga and would later, under British rule, become Tanganyika. The UK greatly expanded tea production through the 1960s and remains a major trading partner with the Republic of Tanzania. Joining us today is Steve Anyango, an expert strategist in commodity trading and logistics with deep ties to tea. Steve is Managing Director, Nemooneh Iranian Food & Beverage Industries.

    Listen to the interview
    Steve Anyango on the characteristics of Tanzanian Tea.

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    Dananjaya Silva at The Leafies Awards presentation and tasting.
    Dananjaya Silva at The Leafies Awards presentation and tasting in London.

    UK Tea Academy Announces 2023 Winners of The Leafies

    By Dan Bolton

    Winners of The Leafies are celebrating worldwide this week following an award ceremony at the Asia House attended by 100 guests, including Tea Biz London correspondent and PMD Tea Managing Director Dananjaya Silva.

    Awards Ceremony
    Dananjaya Silva reports on The Leafies Awards Presentation and Tasting from the Asia House in London.

    This year’s competition attracted 320 teas. Contenders were divided by type, region, and processing into 48 categories. Twenty-five of the award-winning teas were sampled after the award presentation, which included judges, winners, and beverage executives from sponsor Fortnum & Mason.

    Twelve judges representing eight nationalities were awarded 13 Gold awards. Several individuals were recognized for special awards, and 36 teas were “highly commended” in citations that praised noteworthy characteristics. 

    Japanese teas dominated with five gold awards. India won two: Glenburn for its Darjeeling Moonshine and Rujani Tippy Reserve in Assam on the Aideobarie Tea Estate. Lumbini Tea Valley won gold for Sri Lanka, and Zen Zen took home gold for its Formosa Red Oolong tea. A Chinese Ya Shi Xiang submitted by Jantle Group also won gold.

    Read More
  • The Leafies Winners Revealed | Rooibos Tea Named a Top 10 Pantone Color for 2024 | India Tea Undergoes FSSAI Safety Analysis

    UK Tea Academy Announces 2023 Winners of The Leafies | Rooibos Tea Named a Top 10 Pantone Color for 2024 | FSSAI Steps Up Safety Analysis of Indian Tea Factories

    Tea News for the week ending Nov. 3
    Hear the Headlines | Seven-Minute Tea News Recap

    PLUS | Tea was first cultivated in what is now Tanzania by German colonists early in the 20th century. Farms were planted high in the Usambara Mountains, a biodiversity hotspot in the shadow of Mt. Kilimanjaro rising vertically from the plains. The region was known as Tanga and would later, under British rule, become Tanganyika. The UK greatly expanded tea production through the 1960s and remains a major trading partner with the Republic of Tanzania. Joining us today is Steve Anyango, an expert strategist in commodity trading and logistics with deep ties to tea. Steve is Managing Director, Nemooneh Iranian Food & Beverage Industries.

    Listen to the interview
    Steve Anyango on the characteristics of Tanzanian Tea.

    Powered by RedCircle

    The Leafies Judging
    The Leafies Judging

    UK Tea Academy Announces 2023 Winners of The Leafies

    By Dan Bolton

    Winners of The Leafies are celebrating around the world this week following an award ceremony at the Asia House attended by 100 guests, including Tea Biz London correspondent and PMD Tea Managing Director Dananjaya Silva.

    Awards Ceremony
    Dananjaya Silva reports on The Leafies Awards Presentation and Tasting from the Asia House in London.

    This year’s competition attracted 320 teas. Contenders were divided by type, region, and processing into 48 categories. Twenty-five of the award-winning teas were sampled after the award presentation, which included judges, winners, and beverage executives from sponsor Fortnum & Mason.

    Twelve judges representing eight nationalities were awarded 13 Gold awards. Several individuals were recognized for special awards, and 36 teas were “highly commended” in citations that praised noteworthy characteristics. 

    Japanese teas dominated with five gold awards. India won two: Glenburn for its Darjeeling Moonshine and Rujani Tippy Reserve in Assam on the Aideobarie Tea Estate. Lumbini Tea Valley won gold for Sri Lanka, and Zen Zen took home gold for its Formosa Red Oolong tea. A Chinese Ya Shi Xiang submitted by Jantle Group also won gold.

    Yame Tea Kumaen’s Gyokuro Saemidori from Fukuoka foo·koo·ow·kuh Japan was the highest-scoring tea of the competition, earning the Fortnum & Mason Best In Show award. The tea will be sold at the company’s showroom. Kazumi Nakatani traveled from Japan to brew and pour the winning tea. Zealong Tea Estate was awarded prizes for its Aged Oolong and Aromatic Oolong. Zealong also received the UK Tea Academy Lifetime Achievement Award for its pioneering tea culture 25 years ago in New Zealand. CEO Gigi Crawford served the tea.

    New this year is a category for retailers selling fine tea. Chaki Co in Uji, Kyoto, Japan, won two retail gold awards. The tea venture was founded by tea farmers who are masters of “deconstructing and reassembling” tea. Dorothy’s Teas was named Best Seller of White Tea for its Shannong Estate Silver Needles.

    View all the winners at ukteaacademy.co.uk/the-leafies

    Logo The Leafies

    Episodes 1-49

    Episodes 50-96

    Episodes 97-141

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  • Middle East Unrest Heightens Tea Logistics Concerns | Just Ice Tea Raises $14 Million | Wagh Bakri Executive Director Dies Fleeing Stray Dogs

    Middle East Unrest Heightens Tea Logistics Concerns for Transit via the Straits of Hormuz and Suez Canal

    | Just Ice Tea Raises $14 Million to Expand Distribution
    | Wagh Bakri Executive Director Parag Desai, 49, Dies Fleeing Stray Dogs

    Tea News for the week ending Oct. 27
    Hear the Headlines | Seven-Minute Tea News Recap

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    Tea Biz traveled to Tanzania last week to explore the tropical Usambara tea-growing region. There, I toured the Sakare Cooperative tea factory and met with smallholder farmers, tea makers, traders, tea sellers, and members of the Tea Board of Tanzania. I recount my adventure beginning today with Tahira Nizari, a savvy business school graduate and humanitarian who co-founded the specialty tea brand Kazi Yetu in 2018 to advance the role of women in Tanzania’s tea industry. Read more

    Listen to the Interview
    Tahira Nizari, co-founder of the Kazi Yetu Tea Collection
    Trouble in the Middle East could force tea to be rerouted.
    Conflict in the Middle East could force tea to be rerouted, greatly increasing costs.

    Middle East Unrest Heightens Tea Logistics Concerns

    By Dan Bolton

    Tea shipping and logistics executives closely monitor Middle East unrest as tea sales to the region declined.

    Immediate concerns involve insurance premiums and pricing risk, but if Iran-backed Hezbollah escalates the Hamas conflict, Israel will likely retaliate against Iran. The Islamic Republic’s navy (IRGCN) has increasingly harassed international vessels, with 20 incidents in the past few years, including the seizing of tankers in the Strait of Hormuz (which spans Oman and Iran), a route traveled by 30% of the world’s oil and much of the world’s tea.

    Due to the violent and volatile Hamas-Israeli conflict, sales of orthodox tea at India’s Kochi Auction declined to 70% of the 2 million kilos on offer. Though Israel buys negligible quantities, exports to other destinations through the Suez Canal will be hit, according to a report in the Hindu BusinessLine.

    See: Middle East Conflict Threatens Global Growth (NYT)

    Traders who spoke to the newspaper cautioned, “Shipments to destinations through the Suez Canal are likely to be hit on account of the war.”

    They anticipate a further decline in demand and disruptions in tea procurement if the situation worsens.

    Iran is the center of attention. 

    Normally a discerning trading partner with a preference for orthodox black tea, imports to Iran spiked last year, yet “At the moment, there are signs that Iran does not have enough teas to last through the winter season,” writes one trader. 

    Read More
  • Middle East Unrest Heightens Tea Logistics Concerns | Just Ice Tea Raises $14M | Wagh Bakri Executive Director Parag Desai Dies Fleeing Stray Dogs

    Middle East Unrest Heightens Tea Logistics Concerns for Transit via the Straits of Hormuz and Suez Canal | Just Ice Tea Raises $14 Million to Expand Distribution | Wagh Bakri Tea Executive Director Parag Desai, 49, Dies Fleeing Stray Dogs

    PLUS | Tea Biz traveled to Tanzania last week to explore the tropical Usambara tea-growing region. There, I met with smallholder farmers, tea makers, traders, tea sellers, members of the Tea Board of Tanzania, and a tiny cooperative of 14 families deep in the jungle who invited me to watch as they hand-rolled and wood-fired organic black tea that always sells out on “market day” in the local village. I recount my adventure beginning today with Tahira Nizari, a savvy business school graduate and humanitarian who founded Kazi Yetu in 2018. This specialty tea brand advances the role of women in Tanzania’s tea industry. 

    Tea News for the week ending Oct 27
    Hear the Headlines | Seven-minute Tea News Recap

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    Tea Sea Lanes
    Tea land sea lanes

    Middle East Unrest Heightens Tea Logistics Concerns

    By Dan Bolton

    Tea shipping and logistics executives are closely monitoring Middle East unrest as tea sales to the region declined.

    Immediate concerns involve insurance premiums and pricing risk, but if Iran-backed Hezbollah escalates the Hamas conflict, Israel will likely retaliate against Iran. The Islamic Republic’s navy (IRGCN) has increasingly harassed international vessels, with 20 incidents in the past few years, including the seizing of tankers in the Strait of Hormuz (which spans Oman and Iran), a route traveled by 30% of the world’s oil and much of the world’s tea.

    Due to the violent and volatile Hamas-Israeli conflict, sales of orthodox tea at India’s Kochi Auction declined to 70% of the 2 million kilos on offer. Though Israel buys negligible quantities, exports to other destinations through the Suez Canal will be hit, according to a report in the Hindu BusinessLine.

    See: Middle East Conflict Threatens Global Growth (NYT)

    Traders who spoke to the newspaper cautioned, “Shipments to destinations through the Suez Canal are likely to be hit on account of the war.”

    They anticipate a further decline in demand and disruptions in tea procurement if the situation worsens.

    Iran is the center of attention. 

    Normally a discerning trading partner with a preference for orthodox black tea, imports to Iran spiked last year yet, “At the moment, there are signs that Iran does not have enough teas to last through the winter season,” writes one trader. 

    In an attempt to stockpile supplies, tea imports during the past fiscal year (ending March 30, 2023) rose to 90 million kilos. Payments, complicated by economic sanctions, are now past due. “So far, we have no clear import support from the government. As a result, a lot of teas consigned for Iran are stuck in Dubai and Kenya,” writes the Iran-based trader.

    Compounding the self-inflicted shortage is that domestic production declined to 20 million kilos this year.

    Iran produced about 26 million kilos last year, exporting 10,000 metric tons valued at $44.2 million, according to the Iran Customs Administration (IRICA), which valued imports at $665 million through March 30, 2023.

    Imports recovered from the pandemic to reach 35 million kilos in 2022. In the fiscal year ending March 2021, the country imported 21 million kilos valued at $201 million. India accounted for $96 million of tea imports. Sri Lanka shipped $75.8 million worth of tea to Iran, and Kenya shipped $19.2 million to round out the top three tea suppliers.

    Episodes 1-49

    Episodes 50-96

    Episodes 97-140

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