A running list of permanent tearoom and tea merchant closures in Australia, Canada, New Zealand, UK, and the United States.
To add a business to this list email Dan Bolton ([email protected]) with details and a link to a news report, press release, or a Facebook page announcement. Tea Biz also publishes Tea Shop Obituaries that celebrate the life of tea businesses that have served their communities for five or more years. Owners are encouraged to share their experiences so that other shops will benefit. Tea Shop obituaries are 350-word interviews illustrated with a photo.
CANADA
The Canadian Federation of Independent Business (CFIB), which represents 110,000 small ventures reported in April that 58% of members surveyed said they could not pay May rent without government assistance. Only 18% of small businesses indicated they are now open. The survey of 10,500 businesses was conducted April 17-19.
Victoria, British Columbia Just Matcha Tea Shop (established 2013-2020) Locations: 2021 Oak Bay Ave. | 544 Pandora Ave. Tiffanie and Kip Home announced the temporary closure of their two tea shops in mid-March but could not make rent payments. Unable to reach an agreement with their landlord (who graciously deferred rent) they decided to close permanently in April after seven years, according to the Times Colonist. “I’m not going to triple my revenues when it opens again and you need to do that in order to cover the rent for the three months that you missed,” Kip told the newspaper. Kip said the company spent a lot of money in January and February restocking inventory and buying merchandise for the upcoming tourist season that relies heavily on cruise ship visitors and public events. The couple and their two business partners hope to one day reopen on Pandora Ave.
UNITED STATES
A National Restaurant Association survey of 6,500 restaurant operators found a 78% average drop in sales during the first week of April, compared with the same period last year. The U.S. restaurant industry lost 3 million jobs in March with sales plummeting by $25 billion. The association estimates that 44% of restaurant and cafes operators were forced to temporarily close in March with 3% permanently closed. The survey indicated 11% of respondents anticipate closing permanently due to the crisis. Sinensis Research reports that as of mid-April 31.7% of U.S. specialty tea businesses are temporarily closed with 2.3% closed permanently. In a report on the impact of COVID-19, founder Abraham Rowe estimates 9,200 layoffs. His survey of 1,600 shops showed that “81.8% of specialty tea businesses have laid off staff.”
Doylestown, Pennsylvania The Zen Den (established 2011-2020) Location: 41 E. State Street Owner Annette Coletta announced the closing of the popular shop in April, according to the Doylestown Patch. The shop featured many live events and was favorite of artists and musicians. Coletta intended to sell the business and was in discussion with buyers when the coronavirus lockdown forced her to close the shop. On Facebook she wrote: “I have had some of the best years of my life here and made so many friends and acquaintances that I’m very grateful for having. What began as a way of coping with a personal crisis after a horrific car accident, has now ended through a global crisis. What began as an idea in someone with no business experience, The Zen Den grew to earn “The Best of Bucks/Mont” several years in a row—-I have more gratitude and pride than I can articulate—-I have ALL of you to thank!” Liquidation of inventory is planned by April 30. “I will go forward knowing that I gave it my EVERYTHING and ran an honest, ethical business for 9 years and that I did the best I could—-I have no regrets,” writes Coletta.
New Orleans, Louisiana Coast Roast Coffee & Tea (established 2015-2020) Locations: 2381 St. Claude Ave.| 801 Magazine St. (2018-2020) Owner Kevin Pedeaux, a 12-year veteran with three shops in Louisiana and two in Mississippi closed the company’s St. Roach Market and Auction House Market locations in New Orleans but continues to operate the 3618 Magazine Street store which opened in 2019, according to a report in the Uptown Register. Service is limited to delivery, online order for pickup, and show and order-to-go. Pedeaux said in March he had to lay off 12 staff members but in April is back up to five. “It was personally a huge victory to get back to 7 a.m. to 7 p.m. hours,” he told the newspaper.
Tea industry news for the week of April 13 – Grocery Sales Spike – Tea Production Declines – Health Misinformation – Skipping Port – Edible Tea
Consumers emptied shelves stocking up on tea, but there is plenty more in warehouses.
Tea sales in grocery spiked as consumers rushed to stock up ahead of lockdowns in the US, Canada, and the UK. Sales in the UK the week of March 21 rose 55% compared to the previous year, according to Nielsen market research.
Grocery shoppers in the UK, on average, spent an additional $80 (£62.92) stocking up during March.
In the US, market information provider IRI in Chicago reports an 11% increase in year-to-date in sales of packaged tea in multi outlets (including grocery and convenience stores). Dollar sales of instant tea mixes rose 12%. Sales of refrigerated teas increased by 9.4%, and sales of refrigerated ready-to-drink coffee grew 23% year to date, compared to the same period in 2019. Coffee sales were up 8.2% to $2.6 billion through March 22.
Major brands, including Lipton, Tetley, Twinings, and PG Tips assured consumers confronting empty shelves that supplies were sufficient as grocery sales rose 20% to their highest level in a decade, according to Kantar Research. Herbals associated with improving immunity spiked as well with top sellers listing ingredients such as echinacea, ginger, ginseng, and lemon and honey.
Production Declines
Plucking resumed Monday April 13 in Darjeeling on government orders limiting the workforce to 25% of normal. A large factory like Thurbo, one of the Goodricke Group, employs 400 but can operate with 100 staff by reducing the number of processing lines. Processing capacity makes it possible to resume plucking the valuable first flush leaves.
Financial analysts at ICRA estimate India’s tea industry will experience a decline of 90 million kilos in 2020. The estimate assumes 45-50 million fewer kilos of tea from plantations and 45 million fewer kilos from smallholders. Annual tea production will decline 6-7% in Assam and West Bengal and another 5-6% in South India. Bought-leaf factories remain closed.
ICRA estimates that the earliest tea estates could start production would be around the third week of April, given the present situation, according to The Economic Times. The government permitted plantations to resume harvesting this week, but mandates staffing at no more than half previous levels. Social distancing and health precautions are to be enforced. Since the lockdown, now in its third week, weeds are encroaching, pest counts are high, and a light pruning is needed before plucking resumes. These actions will add INRs15 per kilo to the cost of production, according to ICRA, noting: “Any decline in production in the second flush teas would result in a substantially higher cost per kilo.” In India, labor expense accounts for 65-70% of the cost of production.
Kenya saw exports decline by 4 million kilos in February to 40.5 million kilos compared to February 2019 totals, according to the Agriculture and Food Authority. Disruptions in the auction at Mombasa are to blame as the weather is excellent with moderate temperatures and favorable rainfall in the western and rift valleys. The harvest increased to 49.2 million kilos compared to 31.4 million kilos during the same period last year. Smallholders contributed 19 million kilos to the total. Prices at Mombasa were down, averaging $2.13 per kilo compared to an average price of $2.16 per kilo in February 2019.
Curfews in Sri Lanka temporarily stopped tea production in March. Plantations Minister Ramesh Pathirana said the nation’s tea plantations would be allowed to continue operations so long as they adhere to guidelines set by the Health Ministry. To facilitate transactions, the Ceylon Tea Traders Association has switched to online auctions after 137 years of outcry bidding. Banks and the government departments regulating food safety and trade that are essential to export are now open three days a week but operated by half their usual staff.
In Vietnam, first-quarter tea exports declined 2.4% in volume and lost 19% in value compared to the previous year. Shipments to China, Taiwan, and Russia, were virtually halted. The US is one of the top five destinations that together account for 75% of Vietnamese tea. Prices declined 13.5% to $37 million in February, averaging $1.48 per kilo, according to the Vietnam Tea Association. Trading partners are asking for lower prices, delayed delivery, and even canceling contracts, according to the association.
Health Misinformation
Physicians strongly disclaim a post stating that drinking tea is an effective cure for COVID-19, the disease caused by the newly discovered coronavirus. The World Health Organization (WHO) in March declared there is no known cure for COVID-19. “To date, there is no vaccine and no specific antiviral medicine to prevent or treat COVID-2019,” according to WHO. The post, incorrectly attributed to CNN, appeared on WhatsApp and Facebook and was widely shared. The report did not appear on CNN. “While tea may strengthen immunity, there is no “research” indicating benefits for COVID-19 patients,” according to Dr. Jayaruwan Bandara, director of the Sri Lanka Medical Research Institute, as reported by AFP in a Fact Check published March 26.
“News reports in China in February also picked up on the claim that tea could be used to stop the virus but said it was not true,” according to the BBC News Reality Check.
Related…
Sri Lanka is promoting black tea as an immunity booster, and India may soon follow.
Citing a study by the Tea Research Association (TRA) that Ceylon tea contains high levels of theaflavin, Sri Lanka initiated an advertising campaign claiming that ‘Ceylon Black Tea’ enhances COVID-19 immunity. TRA maintains that theaflavin, the main polyphenol in black tea, boosts immunity based on studies published in medical journals
A 2003 experiment involving 21 volunteers by Dr. Jack Bukowski at Harvard Medical School showed that immune system blood cells from tea drinkers responded five times faster to germs than did the blood cells of a control group. Bukowski explained that L-theanine is broken down in the liver to ethylamine, a molecule that primes the response of an immune system element called the gamma-delta T cell.
“We know from other studies that these gamma-delta T cells in the blood are the first line of defense against many types of bacteria, viral, fungal, and parasitic infections,” he said. In 2007 Bukowski demonstrated that drinking five cups of tea daily increased the body’s ability to ward off colds and flu. His work appeared in The Journal of the American College Of Nutrition
The United Planters Association of South India (UPASI) Tea Research Foundation is compiling a brief to convince the Tea Board of India to follow Sri Lanka’s lead in promoting tea as a wellness drink.
Tea Board Chairman PK Bezbaruah told the Hindu Businessline, “Indian teas, particularly Assam and the South Indian teas, have a very high proportion of the Theaflavin compound and hence should ideally be more effective.”
“I think this can help push exports, particularly at a time when the output is expected to be at least 15% lower this year,” Bezbaruah said.
Skipping Port
Shipping companies are bypassing Indian ports essential to the tea trade. Container ships generally stop at one or two local ports to load cargo before traveling between continents. When containers are delayed in reaching port, ship captains have no reason to stop.
Canceling India’s tea auctions for two weeks to prevent the spread of the coronavirus set in motion a sequence leading to this unusual logistical snafu. Tea is exempt from transport restrictions, but shipments delayed at auction experienced further problems in transit as law enforcement agencies stopped trucks en route to ports. Exporters next experienced numerous cancellations of consignments following the collapse of retail demand in foodservice. New buyers are scarce, leading to acute cash flow problems that subsequently hampered exporter’s ability to meet contracted delivery dates.
NEW PRODUCTS
Edible Beetroot & Parsnip tea
Edible Tea
Nim’s, a UK-based fruit crisp brand, recently introduced the first edible teas. These can be brewed or eaten as a snack. Nim’s located in Sittingbourne, produces air-dried snacks using beetroot and pineapple, kiwi and pineapple, and beetroot and parsnip. The tea sells for $6.25 (£5) for 12 sachets. Once the tea is steeped, you can enjoy the rehydrated fruit and vegetables “Drink, Eat and be Healthier.”
Arizona Iced Tea introduces Hard Tea with vodka
Vodka Tea
Arizona Iced Tea launched a 5% ABV ginseng and honey-flavored green tea blended with vodka. The new line is named Arizona Hard. The initial rollout in Canada features 473ml single tall cans or 12-ounce (355ml) six-packs. The suggested retail price is CAD$3.49 for the individual can. In Canada, spiked tea can be delivered to your home by food delivery services such as SkipTheDishes.
China’s tea harvest in full swing including Enshi, in pandemic stricken Hubei Province
CloselyMonitor Tea Auctions
Tea auction houses are a choke point for black tea transactions globally. The routine flow of commercial grades of tea is in jeopardy as major tea auctions react to the pandemic. Twin threats loom, the first involves gatherings that ensure the safety of participants. The second is the logistics. India’s national lockdown was tragically timed to the onset of the first flush, which observers predict is lost.
TheColombo Tea Traders Association (CCTA) successfully conducted an all-digital auction – a first in 126 years of “outcry” bidding. The pandemic shut down the auction temporarily, halted shipping, and closed factories engaged in processing, blending, and packaging tea. “The tea industry has since regained its composure and momentum, and all its operations are now gradually resuming full capacity islandwide,” according to CCTA. The e-auction runs April 4-6, with samples available for viewing online and for purchase remotely under the guidance of theColombo Tea Brokers’ Association.
India’s Darjeeling growers earn 40% of their business during March and early April as first-flush teas are rushed to clients in Europe, Russia, Japan, and the US. Plucking had just commenced when India’s prime minister ordered a 21-day national lockdown on March 25. Tea bushes welcome spring with their best quality shoots, which amount to 25% of the crop by volume but bring an estimated $20 million (INRs150 crore), or roughly 40% of revenue. Lost sales are compounded by the fact that by April 15, when the lockdown is scheduled to end, trees will be overgrown, forcing a time-consuming and costly pruning. Darjeeling annually produces about 8 million kilos of tea. That will not be the case in 2020.
The financial losses Darjeeling faces led the Union Home Ministry on April 3 to amend its workforce order to permit gardens to operate with up to half their workers if they enforce social distancing. However, few seem willing to operate processing factories, bought-leaf factories are closed to smallholders, and workers’ unions in West Bengal and Assam strenuously oppose returning to work due to the contagion and limited healthcare. North Bengal accounts for a quarter of India’s 1.3 billion kilo harvest.
Tea Retail
India’s street corner chaiwallahs and tea stand vendors operate without inventory or cash reserves. In the past three weeks, the steady business of supplying office workers has disappeared along with crowded trains and bus stations. At 20 rupees per cup, these workers earn less than $1.50 per day after expenses.
The approximately 1600 US tea shops in all but eight states where residents are now under orders to stay at home, are experiencing dramatic declines in foot traffic. It is hard to profit from small transactions, so Emma’s Tea Spot in Baltimore promoted its curbside pickup and delivery by offering staples as incentives. These include eggs, bread, and toilet paper. Orders are mainly by phone with payment prior to pickup or delivery. No employees come into contact with customers since orders are placed in a sanitized pickup area outside the building.
China Harvest Underway
Saturday (April 4) marked the opening day of the tea harvest in China. Qingming celebrations, which involve traveling to the ancestral homes of urban Chinese, are subdued in many parts of the country this year as more than 3,000 perished amid 83,000 confirmed cases of COVID-19.
Tea harvests in Zhejiang and Anhui Province are in full swing. Harvesting is underway but delayed in Hubei, which is the third-largest producing province and the center of the pandemic.
Yunnan continues to experience a severe drought. Chinese authorities say 1.14 million of the province’s 47 million residents are experiencing difficulties accessing drinking water, along with a quarter of a million head of livestock. Crops covering 180,000 hectares are drought damaged according to the provincial water conservancy department. “At present, 78 rivers in Yunnan have been cut off, 115 reservoirs have dried up, and 99 irrigation wells have an insufficient water supply,” according to a report published by Xinhua News Service.
UPCOMING EVENTS
The European Tea Society is hosting a free webinar on How Pandemics and Climate Change are Affecting the Tea Trade.
The World Health Organization was founded on April 7, 1948. This agency of the United Nations is commemorating the work of nurses and midwives on World Health Day, Tuesday.
Survey finds 75% of Chinese tea and coffee shops closed at the height of the coronavirus epidemic.
Statistics compiled from a survey of retailers following China’s unprecedented lockdown of 700 million people reveal that while international chains like Starbucks and Costa and big national chains, including Ten Ren and Luckin, experienced severe financial setbacks, independent tea and coffee shops suffered mortal blows.
Now that the contagion has spread to Italy, shop owners are taking a hit comparable to their Chinese counterparts.
“Being in the “orange” zone we’ve seen the downtown area of Milan losing its fabric, most people (not all, fortunately) are just not going out and are avoiding close contacts with others (i.e., any crowded area) We’re currently recording a drop of 40% to 50% both in the store and the tearoom. We’ve adopted the sanitary ordinances that set a “safety perimeter” of one-meter minimum distance from others and have had to cancel all planned events and tea seminars,” writes a veteran shop owner who established his specialty tea business in 2008.
In China, a Kamen survey of 2,000 shop owners, those with ten shops or less, revealed that 75% of the stores closed during the epidemic. Closures were due to policy prohibitions (primarily in Hubei Province) and concerns about personnel safety as well as the absence of foot traffic.
Globally there were 98,000 confirmed cases and 3,347 deaths, including 148 in Italy. The death count in Hubei Province is 3,000, with 23,972 of the 67,466 confirmed cases still in the hospital.
Revenue, compared to the same period in the previous year, declined to zero at 65.9% of the shops surveyed. Business declined 50% to 80% at 19% of the shops. Asked to evaluate the loss, 65.93% of shop operators said the event was devastating, with 30.97% saying the impact is controllable. Only 3.1% reported minimal impact. The Chinese government has announced subsidies, low-interest loans, and relief from taxes for retailers in the vicinity of Wuhan.
Starbucks announced this week that 85% of its shops in China have reopened. In a letter to the U.S. Securities and Exchange Commission, Starbucks estimated losses of $430 million from the closure of half of its Chinese shops.
Morocco Hoards Chinese Tea
Fearful of the impact on shipments of green tea imports, Morocco is hoarding tea. The president of the Moroccan association of tea and coffee manufacturers (AMITC), Mohamed Astaib, announced that Morocco had imported enough tea to last six months as a preventive measure. Logistics is partly to blame as hundreds of thousands of containers stacked up at China’s 34 ports.
In an article published by the China Media Times Tea Weekly Yu Lu, vice president of the China Chamber of Commerce of Import and Export of Foodstuffs, Native Produce and Animal By-Products (CFNA) said that Morocco, China’s largest trading partner, implemented stringent standards for pesticide residue for 60 chemicals. As a result, sales decreased by 4.2%.
Moroccans consume 70,000 metric tons of tea annually, making it the 9th largest tea importer in the world.
The tea floor at Fortnum & Mason in London’s high street is stocked exclusively with tea sourced globally. In first for the company, it will now sell a non-caffeinated children’s tea in four flavors.
The Small & Wild brand, blended by two millennial-aged mothers, launched two years ago. The teas are ethically sourced, sugar-free blends of natural herbs and fruit.
The decision follows a U.K. consumer shift to tisanes, which are growing in popularity. Hardly stodgy, the fabled tea company reaped a windfall last year on sales of a bottled sparkling tea.
Teatime forRampaging Vikings
Fans of the widely acclaimed television series Vikings gave a nod of understanding with word that researchers attribute the Viking’s barbarian behavior to a hallucinogenic herbal tea. Warriors high on a brew of stinking henbane amd alcohol experienced less pain, according to Karsten Fatur, an ethnobotanist at the University of Ljbuljana in Slovenia. Fatur speculates that ingesting this tea before battle led 9th century Norse Berserkergang “berserkers” to howl like beasts as they rushed wildly into battle wearing animal skins and little armor. Unchecked aggression, unpredictability, and dissociative effects, such as losing touch with reality, might have allowed them to kill indiscriminately without moral qualms, writes Fatur.
Tea Journey Magazine was funded at dawn by more than 560 backers who contributed $128,000 during the past 60 days…
To our backers around the world:
Those who know me well, know that I’m never at a loss for words… until now.
Tea Journey was funded at dawn — fittingly by donations from tea lovers on the other side of the world in China and Australia as their day was winding down.
I fell asleep at 5am and awakened to the news with tears of joy…. and relief.
Today is DAY ONE. We can now get on with the joyous task of producing the world’s first truly global, truly collaborative magazine for tea lovers. Its creation demonstrates a rare ability to bridge borders and cultures, to share the stories of the tea lands that introduce growers and artisans to the millions who cherish their labor of love.
You can expect the inaugural issue and both the iOS and Android apps to be ready by the end of the month.
On behalf of the Tea Journey partners and advisors, writers and editors.
Thank you.
WINNIPEG, Canada
Where do the most recent Tea Journey backers live? Here are their names and the home countries of some of the final 50 donors who contributed to the campaign:
Gordon Zhang, China | Margaret Cusak, Australia |Roquen Lómë, Prague Czech Republic | Marc-André Rivet, Montreal, Canada | Richard Tao, US | Jesse Örö, Finland | Debbie Forlanski, Canada | Goh Cheng Fai, Hong Kong | Danny Moortgat, Belgium | Scott Svihula, Florida | Nancy Cocianchi, Argentina | Nigel Melican, UK | Sabine Jürgenmeier, Germany | Wouter Verelst, Malawi | Ernestas Klevas, Frederiksberg, Denmark | Stefano Grassi, Italy |
There is power in this venture that speaks to community more than cash…
The other day, inspired by Jennifer English, the @urbanmommies hosted an online fundraiser for Tea Journey that resulted in nearly 300,000 direct contacts and 5 million social impressions on Twitter and greatest single-day tally of subscribers during the campaign.
The entire world is thirsty for tea knowledge. While the US is home to the largest number of backers, Canada, I’m proud to say, has the largest concentration of subscribers. Tea drinking UK is exploring more diverse teas as are India and Australia. Those in China and Taiwan and Asian tea lands are next, not for lack of knowledge but out of a desire to better understand the markets where they send their precious tea. Gourmands in Western Europe (Germany-France-Benelux) placed their countries high on the list. There are South American fans from seven countries (Argentina tops the list followed by Brazil where out of the goodness of their hearts tea lovers Victoria Bosogno (Spanish) and Kelly Stein (Portuguese) translated and then forwarded the Tea Journey message). Those from tea lands in Africa (including the Middle East) follow. Backers hail from CIS and the Czech Republic, from Mexico and the Caribbean islands and even Iceland where Frank Woolny was the ninth backer to contribute.
The first? That was Peter Wilson, who inspired us with these words:
“…with every tea I taste, and every word I read, I sink deeper into such a joyful state of being that I want to keep going and going. It’s a bit challenging sometimes to find good information about tea in the west, so when I learned of this magazine, not only did I decide that I would contribute, I set my alarm for 12am the morning that the Kickstarter campaign opened, in the hope that I could say I was first to contribute! I’ve told all of my friends, and I’ve also sent letters to all of my favorite tea suppliers (like Harney, DAVIDsTEA, Tea Trekker, and Tea Source), asking them to consider supporting and encouraging more people to become enthusiasts like me. Thank you for all that you do, and best of luck with your magazine! I’m privileged to say that I support it, and I look forward to continuing my own tea journey.”
Backers believe passionately in our mission: Listed below are some of those who donated in the past week to put us over the top.
Mehmet Emin Akyuz, Stephan Baudet, Lorraine Collins, Shawn Geitner, Christopher Day, Peter Ericson, Amethyst Bussey, Nathan Hevenstone, John Alfone, Jaime Chartrand, Eva Lee, Mark O’Deady, Faye Lang, Guy Sirkes, Barbara Broido, Shari Bayer, Jen Piccotti, Joyce Maio, Najat Abdou, Pamela Tucker, Ruth Tobias, Laurence Wooding, Glen Knauer, Dominik Wittenberg, Sean Mates, Rick Ha, Margo Sparto, Raelene Gannon, Kaiting Zhou, David Bess, Brett Holmes, Ellie Chu, Rick Doten, Lisa Braithwaite, Cindy Beeman, Samantha Molineaux, Barb Goldstein, Linda Gaylard, Geena Matuson, Mark Nicholls, Dawn Hoffman, Jeffrey Lorien, Sophia Nadur, Michelle Rabin, Matt Jaffe, Bob Krul, Noah Van der Laan, Andre Gauthier, Rona Tison, Manuel Legault-Roy…
What powered this extraordinary event?
The generosity ofFounding Sponsors:
Camellia Sinensis | Seven Cups Fine Chinese Teas | Young Mountain Tea | Craftea | Mad Monk | Misty Peak Teas | Jalam Teas| Tea Squared | Tealet | Australian Tea Masters | Adagio Teas | Nothing But Tea | Teatrade | Yunomi Tea | Firsd Tea | Smacha Tea Company | Hong China Tea | Teatulia | Lochan Tea Company | Mighty Leaf Tea Company | International Tea Importers | International Tea Masters Association | Rolling Leaf | El Club del Te | Rishi Tea | Tea Total | Teatrade Mart | TeaLula | The Green Teaist | World Tea Podcast | Tea Lifestyle | World Tea Academy | P&T – Paper & Tea GmbH | The Daily Tea | Wild Qi Tea | Tea Vivre | Conundrum Tea | Tea Cosmos | The Tea Emporium | Teas Etc | UK Tea Academy | Mary Cotterman | Royal Tea New York | ITO EN | JoJo Tea | G.S. Haly Co. | Hawaiian Rainforest Tea | 4 Track Tea | Ocha & Co | Hankook Tea | Eco-Cha |
(This is a partial list with more signing on daily through the end of World Tea Expo, June 15-17 in Las Vegas, drop by and see us at Booth 251. If your company is interested in becoming a Founding Sponsor email: [email protected], [email protected], [email protected] or [email protected]):
