• Three tea merchants that know how to convert conventional tea drinkers into fans of premium specialty tea

    The staff at Granville Island Tea Co. prides itself in finding the right tea for every individual through conversation and education. The tea merchant’s once-bustling shop is much quieter due to restrictions necessitated by the pandemic but online sales continue to expand. Photo courtesy Granville Island Tea.

    Many who consider themselves tea lovers are entirely in the dark about tea. They don’t know what they don’t know. When the time is right, or when chance interjects, tea companies can open someone’s mind to the world of loose leaf — a discovery that does not occur without thoughtful preparation.

    In this post three tea merchants in British Columbia share their tips on persuading people to take the first step in their tea journey and switch to premium loose leaf.

    Education and exposure

    Few tea drinkers have held in their hand a fresh leaf from the Camellia sinensis plant. Up close, the living plant material reveals much about how the finished tea is processed in a particular way, resulting in green, white, black, or oolong teas.

    At Aromatica Fine Teas, a flowering potted tea plant plays a crucial role in customer education. Sharing knowledge about tea is integral to converting people to try loose leaf, according to owners Karen Cayen and husband, Kim Self. Their shop is located in an 18-acre gardening center in Chilliwack, B.C. Brian Minter, a well-known master gardener, speaker, and syndicated columnist, gifted Cayen and Self with the Camellia sinensis five years ago.

    People who visit Aromatica possess different levels of knowledge about tea, Cayen explains. Some are long-time loose-leaf drinkers who know their favorite grade and blend; others only know the finely ground machine-made CTC (cut, tear, curl) grades of tea found in Lipton teabags.

    Frequently, people unfamiliar with tea wander into the shop while walking through the garden center. That’s where the “pet mascot” tea plant, affectionately named “Camellia,” comes in.

    “We go over to the plant, and I say, this leaf will make green tea when processed in this fashion; this one can be made into a black tea; this would be used in making an oolong,” Cayen says.

    Soon, the conversation shifts to the plucking method.

    “I love to explain that in areas where tea’s not machine harvested—like Sri Lanka—it’s such a big part of the economy that it’s mandated that it must be hand-plucked,” Cayen says. “Would you rather have a tea leaf that was machine harvested or one that somebody plucked?”

    Another way she reaches new audiences is through custom blends. She gives an example of a custom blend made for an American customer, used at a series of tea parties held to commemorate the 100th anniversary of women’s suffrage. The blend was an Earl Grey, flavored with raspberry, rose, sunflower, and an ingredient from the state.

    “’Equali-tea’ was such a hit, (the client) bought what she thought she needed for two months after her event. And she’s had to reorder three times,” Cayen explains.

    “How many of the women (who attended the tea parties) will wonder what other loose leaf teas there are?” Cayen wonders.

    Exposure to premium loose-leaf, followed with an educational conversation, will frequently lead to a sale. Then, once someone’s tried the tea, the quality does the rest, Cayen says: “People start to understand what the difference is (between commercially ground tea and premium loose-leaf).”

    Cayen has one more trick in converting customers to premium loose-leaf tea: caring about what you do.

    “I just try to be there with passion,” she says. “It’s infectious.”

    Your tea, your way

    The right tea for the right person: That’s the guiding sales principle of Mark Mercier, co-owner with his wife, Deborah, of Granville Island Tea Company in Vancouver, B.C.

    “We want you to find your tea and discover how to make it, how to prepare it, in the way that you like it,” says Mercier.

    Sampling pre-pandemic. Photo courtesy Granville Island Tea Company.

    The idea of matching people with their perfect tea means that Mercier and the teashop staff spend a lot of time with customers, solving this puzzle: Which of their 220 teas is best suited to each person’s palate?

    During more than 21 years in business, Mercier says they’ve learned to ask questions to put the consumer’s preferences at the forefront and help them feel at ease in the sometimes overwhelming world of premium loose-leaf teas.

    “We aren’t allowed to ask, ‘do you like milk in your tea?’ Because people will think we’re judging them. We say, ‘do you have a preference? We have some teas that are better with milk, some that are better without milk,’” he explains.

    With this approach, people are less likely to buy the most expensive tea just because they think it’s the best and should like it. He uses his favorite analogy to make his point: “If you’re not a fan of caviar, it doesn’t matter how good the caviar is, you’re not going to like it.”

    Instead, customers are left with “their own taste and palate to dictate what they’re going to buy,” says Mercier, noting he’ll also develop custom blends for individual customers if that’s what it takes to find someone’s perfect tea.

    Like Karen Cayen at Aromatica, Granville Island Tea staff educate people on loose-leaf tea and how it is made while they’re getting to know their customers’ preferences.

    “We want to demystify tea,” says Mercier.

    He notes that a customer who is seeing, for the first time, a display with 200 tins of tea will feel overwhelmed. “A lot of people don’t want to say (loose-leaf tea) is new to them,” he says, adding that Granville Island Tea strives not to present itself as being exclusive, fancy, or unattainable.

    Mercier and his staff will frequently give customers free samples to try at home. The practice encourages customers to experiment in finding the tea that’s right for them.

    “We’re trying to guide them along their journey of discovery,” says Mercier. It’s all part of “awakening people to tea.”

    Building green habits

    Isabelle Ranger of Ranger Teacrafters aligns her company’s ethos with the green movement. And that ethos is what attracts new customers to her loose-leaf teas.

    Ranger, an herbalist, gathers botanicals around the unceded Coast Salish territories of Whistler, Pemberton, and Squamish, using them to craft tisanes and blends with imported teas. Her products are sold to wholesale clients, including some green groceries and zero-waste shops, and through an online store to people across North America.

    Isabelle Ranger forages for ingredients to blend in tisanes and teas. Photo courtesy Ranger Tea.

    “There’s nothing greener than a loose-leaf tea with a beautiful stainless steel strainer or some type of teapot that filters,” she says. Teabags, she adds, create single-use waste; plus, some release synthetic particles into the tea.

    Most people want to go green for their health and the environment, Ranger explains. “In their hearts, they want to do it, but there’s a feeling of being overwhelmed.”

    To help ease people into greener tea-drinking, Ranger makes switching to loose-leaf as straightforward as possible. She emphasizes to her customers that loose leaf doesn’t need to be complicated; the gear can be simple: a simple tea strainer and teapot or a mug with a built-in filter.

    “Once you get around to (making loose-leaf tea) regularly, it becomes a new habit,” she says.

    Though COVID-19 has put a dent in Canada’s green movement, Ranger says her loose-leaf tea sales have been growing, likely because more shops are selling Ranger Tea in bulk.

    “We’re building a culture around zero waste and the quality of loose-leaf,” she says. “We can build good habits around loose-leaf tea that are greener.”


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  • Tea campaigns on Kickstarter

    Tumoi Tea Estate team members from left to right: Peter Jumba, Emmanuel Kipkogei,
    Bernard Maiyo, Christine Chepkemei, Robert Kibiwot, and Hyline Jepkosgei

    Ten thousand kilometers separate Kenya’s Tumoi Tea Estate and South Korean students attending Handong University. How are they connected? Cassidy Bailey at Texas State University in San Marcos, Tex. is the unlikely link. Bailey launched a Kickstarter campaign this month to establish “a new global value chain” directly linking consumers to tea growers no matter how distant.

    “The $20,000 ChakanCha Kickstarter campaign is currently 31% funded. The project will only be funded if it reaches its goal by midnight Nov. 30.”
    Click here to donate.

    Kickstarter

    Bailey writes that tea growers in Kenya earn as little as $75 per month, toiling in gardens where compensation for their labor amounts to less than 1% of the retail price paid by consumers. Growers and tea processors at origin are not much better off. It takes six months for their tea to reach market and they receive only 3% of the retail value.

    “That’s where we come in,” she explains. “Tea farmers have no control over the large scale variables at play in the global value chain, which are decisive in determining their wage levels,” says Bailey.

    Using IT technologies and smart logistics for tea, a modern supply chain can deliver fresher tea from farm to cup “without any exploitation,” says Bailey.

    Capturing more of tea’s value at origin, the goal of the Chakancha (good tea) project, was initiated by the Global Problem Solving lab at Handong Global University in Korea. The program came to the attention of the Entrepreneurial Innovators Group (EIG) at Texas State who view Chakancha “not only as an ethical business venture to learn from, but a chance to make a tangible impact through international collaboration,” writes Bailey.

    On November 10 CKC (Chakancha) supporters in Handong conducted a tasting of black and milk tea. “We are so grateful that everyone enjoyed their tea time,” they wrote on Instagram.

    There are three million tea growers in Kenya, observes Boaz Katah, who owns the Tumoi Tea Estate and factory, located in the Nandi Hills. The factory has processed tea for generations, working with small-scale farmers west of the Rift Valley, who grow their crop at heights up to 6,700 feet above sea-level but their output of commercial CTC (cut, tear, curl) grades is largely invisible as the teas are sold for blending at auction.

    Now the factory is a leader in the development and branding of single-estate teas. Katah reverted to the early Kenyan production of orthodox tea and now produces black, green, oolong, and purple teas. He grows his tea at 5,600 feet in a lush, hilly region on the equator where the tea is plucked continuously thanks to 12 hours of sunshine and 12 hours of night. “It is a well-balanced climate for growing the right crop for that perfect cup of tea,” says Katah, whose hand-picked, pesticide-free teas are marketed as Chakancha Black.

    Tumoi Estate Chankancha artisan tea

    Donors who contribute $40 will have their name engraved on a tea mural in the Tumoi Village and receive two packages of Chakancha black tea with a holiday card handwritten by a Tumoi tea picker. Donors who contribute $400 receive a video letter, inscription and 10 holiday gift boxes that can be delivered to 10 different loved ones, writes Katah.

    Chai Easy

    Design features of the ChaiEasy brewing machine.

    ChaiEasy is an automated chai maker that eliminates the hassle of pots and strainers, scalded milk, and spills common to stove top methods.

    “Chai time is a tradition and it should be all about enjoying the moment,” explains Samir Sahoo, an Austin, Tex., chai lover determined to come up with a machine that “delivers on the same authentic homemade chai taste, without compromising on quality or taste and be really easy to use.”

    Donors have contributed $8,000 of the $10,000 goal. The project will only be funded if it reaches its goal by December 23.
    Click here to donate.

    Kickstarter

    “Chai preparation is a very involved and messy process, requiring a lot of clean up afterwards. Makes you wonder: What if it was just easy to make the same traditional cup of Chai?” he writes.
    All ingredients brew together at the same time just like traditional chai is made, writes Sahoo.

    Refillable pods contain the chai ingredients including popular and healthful spices used to make chai. ChaiEasy offers pods in four flavors, original, cardamom, ginger, and masala.

    Donors receive a brewer and an assortment of pods with a brew-to-go cup for $170. Additional rewards at $200, $240, and $280. The brewer ships in April 2021.



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  • 2020 International Virtual Tea Festival

    Nicole Burris puts on a good show. During the past few years, she has applied her expertise in live events to successfully launch the Kansas City and Chicago Tea Festivals – both unforeseeably canceled this year due to the pandemic.

    In their place, Burris and Babette Donaldson teamed up to combine the two local shows into the more expansive 2020 International Virtual Tea Festival. The festival goes live at 9 a.m. Saturday, Nov. 7, and continues through Sunday afternoon at 4 p.m., Nov. 8. Registration is free with 1,500 signed up through October. The deadline to register is 6 p.m. Nov. 6. All times are CST. Since the event attracts a global following times for registered attendees will be listed according to the settings of their personal computer or phone.

    The two-day event features free and paid workshops and classes with real-time tastings “simulcast” into the homes of participants. The Tea Lover Pass ($25) sold out quickly along with the Deluxe Tea Lover Pass ($37) but there are many more activities including roundtable discussions, panels with tea professionals, virtual book signings with tea authors, a candlelight tea meditation with Suzette Hammond and the Tea Bloggers Roundtable to keep the crowd entertained.

    On Saturday and Sunday there are live raffles and tea themed tea parties.

    Attendees register here, creating an account that gives them access to events and a virtual vendor show floor. Access links are emailed to attendees who can then sign up for paid classes and workshops. Payment is by credit card. Donaldson advises that “you MUST have at least a free General Admission pass in order to take any classes or watch any pre-recorded free classes. There will be no refunds possible if you purchase a class without having a GA pass to the event itself.”

    Classes may be purchased on the festival’s Shopify site

    Meet and Greet Attendees

    One of the more appealing features of this event is the visibility of attendee profiles

    Use this option to schedule MeetUps with speakers, bloggers, vendors, or random enthusiasts. Meet old friends and make new friends in tea. Meetings can be scheduled in advance of the event. Attendees can also schedule visits to vendor booths during the hours they are open for business.

    Paid livestream classes are recorded and available to watch on-demand until Jan 31, 2021. The All Classes Recorded package includes all the recordings of the free Main Stage | Free pre-recorded sessions | Paid pre-recorded presentations “and as many of the paid livestream classes as we can secure permission to include,” says Donaldson.

    “Tea business owners, staff, and individuals seeking to master the many facets of tea can take part for months to come, organizing content to serve their needs.”

    Babette Donaldson

    Donaldson is responsible for programming. Burris is overseeing administrative tasks and working with the more than 40 vendors that purchased virtual booths.

    “The event features 30 livestream classes, some pre-recorded, some live,” says Donaldson who manages the International Tea Sippers Society and owns T Ching, a tea education blog.

    “A dozen of the livestream classes are tasting events where guests received kits in advance to prepare their tea along with the group,” she said. Registered attendees number 1,500 so far and include guests from Japan, Great Britain, Canada, Mexico, China, India and more,” she said.

    Link to the festival bookstore. Meet authors James Norwood Pratt, Jane Pettigrew, Kevin Gascoyne, Judith Leavitt and Dr. Virginia Utermohlen-Lovelace for a chat.

    A Friday night pre-show social begins at 6:15 p.m.

    A limited number of $25 Tea Lover Passes are sold out, but class slots remain.

    SCHEDULE OF MAIN STAGE AND LIVESTREAM EVENTS

    MAIN STAGE
    FRIDAY – Nov 6
    Friday Night Pre-Show Tea Social
    7 PM – 8 PM
    SATURDAY – Nov 7
    Opening Remarks & Announcement of ITCC Tasting Contest Winners
    9 AM – 9:30 AM
    Field to Cup (Shalini Agarwal)
    9:30 AM
    Japanese Ceramics (Gabriela Sorgenrey)
    10: 30 AM
    Tea in the Era of Climate Change (James Orrock)
    11 AM
    The First US Tea Festivals (James Norwood Pratt)
    Noon
    Golden Ticket Drawing Winner
    12:30 PM
    Tour Malwatte Valley Tea Estate
    12:45 PM
    Introduction to Japanese Tea (Spanish – Ricardo Caciedo)
    1 PM
    Growing for the Better – Organic Tea Projects (Daniel Mack)
    2 PM
    Good Tea Needs Good Water: Understanding Water Quality (Rie Tulali)
    3 PM
    Korean Tea (Sharyn Johnston)
    4 PM
    Tea Blogger Roundtable: Blogging Through A Brave New World
    5 PM – 7 PM

    LIVESTREAM
    Why We’re Craving Tea in the Time of Corona (Maria Uspenski)
    Understanding Japanese Tea Types (Ian Chun)
    10 AM – 11 AM
    Blending In to Stand Out: An Exploration of Unique Tea Blends (Leo Nima)
    A Day in the Life of a Tea Garden (Nishchal Banskota)
    11 AM – 12 PM
    Afternoon Tea: How Did This Eccentric Ritual Evolve (Jane Pettigrew)
    A Deeper Look into China’s Teas (Tim Smith and Lydia Kung)
    NOON
    How We Experience the Flavor of Tea (Virginia Utermohlen)
    New Zealand Tea (Agnieszka Rapacz)
    1 PM – 2 PM
    Pu-er Tea: Immersion & Tasting (Dan Robertson)
    15 Teas Every Tea Lover Should Taste (Lorna Reeves)
    2 PM – 3 PM
    Cooking with Tea: How to Infuse Your Recipes (Marlys & Alan Arnold)
    Opening Remarks & Announcement of ITCC Tasting Contest Winners
    3 PM – 4 PM
    Discover Your Own Tea Blend (Brenda Hedrick)
    A Word On Japanese Black Teas (Gabriela Sorgenfrey)
    4 PM – 5 PM
    Tea Cocktails (Agnieszka Rapacz)
    Terroir and Cultivars of Japanese Green Tea (Akiko Ono)
    5 PM – 6 PM
    Candlelight Tea Meditation (Suzette Hammond)
    How to Enjoy Tamaryokucha (Tomoe Watanabe)
    6 PM – 7 PM

    SUNDAY – Nov 8
    MAIN STAGE
    Health Benefits of Japanese Teas (Tomoe Watanabe)
    9 AM – 10 AM
    History of Matcha & Japanese Tea Ceremony (Asami Iba)
    10 AM
    Live Raffle (Must be present to win)
    10: 30 AM
    Drinking Tea at the Activist Teahouse (Panel Discussion)
    11 AM
    New European Tea Growers (Jane Pettigrew)
    Noon
    Matcha: Fact or Fiction (Noli Ergas)
    1 PM
    Early Days of Specialty Tea (Roy Fong)
    2 PM
    Musicali Tea (Dr. Sally Wei)
    2:30 PM
    Virtual WuWo Ceremony
    3:30 PM
    Closing Ceremony
    4 PM

    LIVESTREAM
    The Perfect Tea Tasting Event (Jane Pettigrew)
    Darjeeling Tea in Harmony With Seasons (Shalini Agarwal)
    9 AM – 10 AM
    What is Caffeine & What is it Doing in your Tea? (Virginia Utermohlen)
    The Health Benefits of Tea & Tea Rituals (Emilie Jackson)
    10 AM – 11 AM
    How Mississippi Sunshine – Yellow Tea is Made (Stacie Robertson)
    Women in Tea (Nishchal Banskota)
    11 AM – 12 PM
    The Real Skinny on Tea and Weight Loss (Jane Pettigrew)
    A Deeper Look into China’s Teas (Tim Smith and Lydia Kung)
    NOON
    Hosting a Tea-Themed Party (Erika Shandoff)
    A Study of Ceylon Black Tea (Lalilth Paranavitana)
    1 PM – 2 PM
    Essentials of Tea Tasting (Suzette Hammond)
    Foundations of Professional Tea Cupping (Dan Robertson)
    2 PM – 3 PM
    Tea & Scones with Friends (Brenda Hedrick)
    Examining Elevation-Oxidation-Roasting Taiwan Teas (David Campbell)
    3 PM – 4 PM
    Phoenix Dan Cong Oolong | Hundreds of Aromas (Rainy Huang)
    The Rise of Single Estate Japanese Tea (Oscar Brekell)
    4 PM – 5 PM
    All About Earl Grey (Molly Nesham)
    Introduction to Puer Teas (Jeffrey McIntosh)
    5 PM – 6 PM

    Donaldson and Burris organized the Chicago Tea Festival in November 2019 and worked together on the Kansas City Tea Festival. The parent company is Taste All the Teas at www.teafestivals.org | Email: [email protected]


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  • Nomad Tea Festival

    Inclusive Tea Community Building — Virtually

    Organizers of the Nomad Tea Festival this weekend are joyfully building on a gathering in July that attracted more than 550 tea lovers from 59 countries. Lead by tea enthusiasts in Europe, this more ambitious two-day virtual event brings together a diverse, talented, and very tech-savvy cadre of tea experts, educators, entertainers, and vendors.

    A 16-hour pre-show begins at midnight Friday, Oct. 23 (Central European Summer (Daylight Savings) Time – UTC+2). On Saturday, Oct. 24, the festival launches its live programming at 4 p.m. (CEST) and runs until midnight. The festival offers 15 free workshops and several paid events. Sunday marks the change from daylight savings to standard time, turning back the clock. On Sunday festival activities begin at 2 p.m. (CET). The festival ends at 10 p.m.

    Use World Time Buddy (free) to determine start times in your time zone. (The schedule on the Nomad Festival page will magically convert time zones when you register. Since Tea Biz circulates to readers in 140 nations, to keep listings simple all times in this post are CEST or CET).

    Watch a mix of free and paid programming, chat with fellow tea lovers globally, visit virtual tea booths to speak with vendors during appointed hours and stick around for the PARTEAS on Saturday and Sunday. Attendees in anticipation of the event pre-recorded short videos to introduce themselves during the opening-night party and describe their love of tea.

    Our mission is to build an inclusive tea community by connecting, engaging, and uplifting the diverse tea communities of the world.

    Nomad Tea Festival

    Click here for TEAkets. General admission is €5.00
    General admission + replay is €15.00
    TEAkets to attend paid workshops range from €20-55.00
    Attending PARTEAS and visiting the Tea Market is free.
    Tea Market Vendors click here. RSVP for one of three PARTEAS here.

    Learn more: YouTube channel | Instagram | Facebook | Twitter | Pinterest

    Xenia Blanco and Soo Chung are co-directors of the Nomad Tea Festival Europe, coordinating a global TEAm inspired to re-connect the many millions of tea lovers separated by the COVID-19 pandemic.

    “So many tea events had to announce heartbreaking cancellations, affecting thousands of people from small tea farmers to tea passionate fans,” said Blanco. Events that bring the tea community together are more than simple entertainment, she explains. The festival was created to enhance the overall ecosystem for the global tea community. Virtual events reduce unnecessary cost and waste and bureaucracy. The Nomad Tea Festival is transparent, appeals to tea lovers around the world via a broad range of social media and digital channels and creates opportunities for people interested in tea, she says

    Here is the two-day schedule:

    SATURDAY
    Oct 24 4:15PM–4:45PM · Stage
    Japan, More Than Green Tea ? Priscila Vázquez Ruilova
    Oct 24 5:00PM–5:45PM · Stage
    Tea Cocktails? Susanne Lang
    Oct 24 6:00PM–7:00PM · Stage
    Indian Tea – History & Pairing ? Susmita Das Gupta
    Oct 24 7:15PM–8:00PM · Stage
    Japanese Tea Ceremony, Omotesenke ? Alba Ameller
    Oct 24 8:15PM-9:00PM
    Tea Book Club Tea Partea | Teabookclub
    Oct 24 9:00PM–10:00PM · Sessions
    PAID: The Tea Journey to Nomad Cultures Through Tea Horse Trade Route
    Oct 24 9:00PM–10:00PM · Stage
    Getting to Know Your Bes-Teas ? Mike Cuevas
    Oct 24 10:00PM–10:45PM · Stage
    Introduction to Sencha ? Ricardo Caicedo
    Oct 24 11:00PM–12:00AM · Stage
    Midnight Tea Party ? Kyle Whittington (Tea Book Club)

    SUNDAY
    Oct 25 2:15PM–3:00PM · Stage
    Evolution of Tea Drinking History ? Isilay Aktas
    Oct 25 3:00PM–4:00PM · Stage
    How to Source Tea ? Matt Hopkins
    Oct 25 4:00PM–5:00PM · Stage
    The Most Boring Tea Business Talk Ever ? Ian Chun
    Oct 25 5:15PM–6:00PM · Stage
    Japanese Tea in Japan and Europe? Simona Zavadckyte & Anna Poian
    Oct 25 6:00PM–7:00PM · Sessions
    PAID: Old Trees in China ? Michal Butor
    Oct 25 7:00PM–7:45PM · Stage
    Heat Sources and Kettles for Tea ? Admar de Bruin
    Oct 25 7:45PM–7:55PM · Stage
    Music for Tea ? Kuzma Bogdanov
    Oct 25 8:00PM–9:15PM · Sessions
    Yoga Explorations With Ma (?) ? Moé Kishida
    Oct 25 9:00PM–10:00PM · Stage
    Finale Tea Partea ? Soo Chung & Xenia Blanco

    Thirsty for more: Soo Chung is hosting the Nomad Tea Festival – Korea in December 2020.


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  • Tea sales accelerate in Canada | Retailers Cope with COVID

    Tea Industry News for the week of September 28, 2020

    • Tea Sales Accelerate in Canada
    • Tea Retailers Cope with COVID
    • Delivery and Takeaway Boost Market Share

    Tea Sales Accelerate in Canada

    Retailers of Fast Moving Consumer Goods (FMCG) are still playing catch-up after six months of record sales while foodservice operators struggle following a 27% decline in visits during the past six months. Canada’s economic recovery has begun, but it will be slow, advises Vince Sgabellone, Foodservice Industry Analyst at The NPD Group.

    One of the best performers in FMCG is tea, according to Carman Allison, Vice President of Consumer Insights for Nielsen Canada. “Tea has reported an even higher bump in sales in 2020, than FMCG as a category,” he told 60 online attendees.

    Year-to-date (Aug. 15) sales are up 19.6% compared to 2019, a full seven points greater than FMCG overall. Tea sales peaked earlier than total FMCG and have been consistently growing faster, he explained. This pace is an unprecedented 5.4 times greater than fiscal 2019, reaching $28.8 million. COVID contributed 80% of the year-to-date increase adding $25.5 million for an 89% increase in growth above expected, according to Allison.

    Both Sgabellone and Allison shared valuable insights with tea industry leaders this week during the “The Present: Reimagined”, a two-day virtual gathering hosted by the Tea & Herbal Association of Canada (THAC).

    Sgabellone observed that the Canadian restaurant industry was “growing slowly” in late 2019, with restaurant traffic up 1% for the year and restaurant dollars up 3%, citing NPD Group/CREST statistics through August. Within weeks restaurant traffic decline by 27% and revenue dropped 31%. The restaurant industry has been devastated by the COVID-19 crisis,” he said.

    Coffee is flat, carbonated drinks are down as well as beverage alcohol but “hot tea is the category-leading growth on the year” with a 9% growth in spend through August compared to the previous year. Coffee and soft drinks account for a greater share of beverage servings but tea now accounts for a 7% share, according to Sgabellone.

    Tea in the Time of COVID

    By Jessica Natale Woollard

    The Tea Hause, London Ontario, Canada
    The Tea Haus, London Ontario, Canada

    The reason tea sales should not decline during COVID is that tea is a food product found in virtually every Canadian home, and “food companies should be okay,” says Sameer Pruthee, CEO of wholesale distributor Tea Affair based in Alberta, Canada.

    And yet, his business, which distributes around 60 metric tons of tea and blends every year to more than 600 wholesale clients in Canada, the United States, and Asia, has declined approximately 30% every month since the March shutdown. The decline, he noted, is most significant among his retail clients in Canada, where the lockdown was widespread and uniformly enforced from mid-March until the end of May.

    Pruthee’s theory for why tea sales are down is that tea is not an “online thing. Tea is social,” he explains.

    Customers buy tea after the experience of visiting a tea shop, talking to staff, smelling the varieties, and learning about the leaves and their origins. “If nobody can smell the tea, nobody will buy tea,” he says.

    Beginning in March tea retailers supplying local restaurants and cafes watched helplessly as re-orders vanished. Local tea shops with online stores initially reported strong sales, largely to existing customers during lockdowns, but without face-to-face opportunities to introduce new teas, tea retailers must innovate to attract new customers.

    DAVIDsTEA provides a vivid example. The Montreal-based firm, the largest tea retail chain in North America, was forced to restructure, closing all but 18 of its 226 stores in the US and Canada due to COVID-19. To survive, the company adopted a “digital first” strategy, investing in its online customer experience by bringing its tea guides online to provide human and personalized interaction. The company also upgraded the capabilities of DAVI, a virtual assistant that helps customers shop, discover new collections, stay in the loop with the latest tea accessories, and more.

    “The simplicity and clarity of our brand is resonating online as we successfully bring our tea expertise online, by providing a clear and interactive experience for our customers to continue to explore, discover and taste teas they love,” said Sarah Segal, Chief Brand Officer at DAVIDsTEA. The physical stores that remain open are concentrated in the Ontario and Quebec markets. Following a disastrous first quarter, DAVIDsTEA reported a 190% second-quarter increase in e-commerce and wholesale sales to $23 million with a profit of $8.3 million largely due to a $24.2 million decrease in operating costs. Still, sales overall are down by 41% for the three months ending Aug. 1. Still, when compared to the previous year, profits decreased by 62% with gross profit as a percentage of sales declining to 36% from 56% in 2019. Delivery and distribution costs increased by $3 million, according to the company.

    “We expect that the increased cost to deliver online purchases will be less than the selling expenses incurred in a retail environment that have been historically included as part of selling, general and administration expenses,” according to the company.

    COVID has changed consumer habits, Pruthee says. COVID first cut off in-person shopping, and then transform the shopping experience due to social distancing. For the tea industry to bounce back, tea companies need to find ways to be part of new customer habits.

    Below, Tea Biz looks at how three Canadian tea businesses have adjusted to the new normal of COVID-19.

    Enhanced customer service

    Free home delivery was Suzanne Tsai’s first response to COVID.

    Co-owner of the Tea Centre in Courtenay, B.C., along with her husband, Marny, Tsai sensed at the start of the lockdown in March that it would be important to keep connected with their loyal and local customers. The shop started offering free delivery around the region, even driving to nearby towns to bring people their “creature comforts.”

    Delivery was worth the investment in gas and wear and tear on their vehicle, Tsai says. “We were able to maintain our business and our customer base.”

    Since March, business has been down approximately 10% to 15%, Tsai says, noting, that their expenses have also been less — the shop had to layoff staff after closing the physical store in March. Since then Tsai and her husband have been working extra hours to fill orders.

    Tsai attributes the decreased sales with customers’ inability to visit the store, chat with staff, and smell the teas. “Those days are over,” she says.

    The shop reopened with reduced hours on June 1, but the size of their store and social distancing requirements has meant customers can’t go inside the shop; instead, service is offered outside the front door.

    People are lined up every day, Tsai says, but they can’t experience the loveliness of the shop and that affects sales, particularly of teawares. “People want to see them, touch them, hold them,” she explains. “And they don’t like the pressure of trying to buy a teapot when there is someone behind them waiting in line to pick up an order.”

    But delivery orders and online sales have kept the business afloat. “We did get some new customers because many other tea stores were closed down,” she says, adding that the company nearly reached Christmas-level orders between mid- March and May, when Canada was shut down.

    “For a small tea business, we feel like we’ve really held our own.”

    Tea Centre retail shop in Courtenay, B.C., Canada

    Wellness tea promotions

    The tourist town of Banff, Alberta, in the Canadian Rocky Mountains faced 85% unemployment during the lockdown. Banff National Park, Canada’s oldest national park, attracted 4 million visitors last year and has received more than three million visitors annually since 2010/11. The Banff Tea Company, typically attracts tens of thousands of visitors from around the world, shop owner Siona Gatshore says, and those visitors frequently turn into online customers.

    When the shop shut its doors in March, Gartshore laid off staff and moved the business fully online. But, online sales soared, so she rehired two employees within a few days. Though the Banff Tea Company doesn’t ship many tea wares — shipping costs are prohibitive when mailing breakables, Gartshore explains — tea sales, like at the Tea Centre in Courtenay, reached Christmas levels.

    “It didn’t make up for not having the store open, but it was enough to pull us through and pay the bills and keep us moving,” Gartshore says.

    Banff Tea Company also increased its customer engagement activity on social media, posting more regularly, sharing information, and doing prize draws for products, something Gartshore had not done before.

    She invited people to vote to name a new tea blend, choosing between Uncertain Tea and San-i-tea, a new herbal wellness tea with anti-viral and immune boosting ingredients.

    “We highlighted our wellness teas (in our online marketing) straight off the bat,” Gartshore explains, noting sales of wellness teas increased when COVID hit. For the first time, Banff Tea Company also sold dried elderberries, a natural antiviral, which sold well.

    “Everyone’s feeling uncertain and stressed. Our Knock Yourself Out! sleepy tea has been our best-selling tea for nine years, and our second is Anx-i-e-Tea. People were buying them to comfort them through lockdown,” she explains.

    Ironically, the vote between Uncertain Tea and San-i-tea came out even. “We ended up going with Uncertain Tea since no one could decide,” Gartshore laughs.

    With fall concerts, festivals, events and conferences cancelled, Banff Tea Company is anticipating a quiet fall. Gartshore will be focused on planning holiday promotions to boost online sales.

    “Our customers will get us through,” she says. “I’m so grateful for our customers. We wouldn’t be here without people thinking, buy local.”

    Banff Tea Company, Banff, Alberta, Canada

    Opportunity for innovation

    COVID provided the right timing for Tea Haus owners Stefanie Stolzel and her husband to implement new business development strategies.

    The London, Ontario, tea shop, has been located in the downtown Covent Garden Market since 2000. Normally the market is busy with office workers, tourists and shoppers, and Stolzel has an established online shop that has been operating since 2003.

    Like the Banff Tea Company, Stolzel laid off staff at the start of the lockdown, only to call them back two days later to help with a surge in online sales.

    “Without any additional advertising, our customers seemed to go online and order,” says Stolzel, noting that staff include a handwritten thank you note with each order.

    In early 2020, Tea Haus won a $2,500 grant from Digital Main Street, a program of the Province of Ontario and the Government of Canada that helps small businesses boost their digital presence.

    “The timing was perfect,” Stolzel says. “The funding had to be spent by May 31, so we invested that funding and our own capital (during COVID) to expand our (digital marketing) efforts.”

    Primarily, Tea Haus invested funds into social media ads.

    In addition, Stolzel participated in a program in early 2020 through Riipen, a company that matches post-secondary students with companies to help them solve problems. Three marketing classes tackled business challenges for Tea Haus, offering solutions and providing ideas to implement, for example, a social media strategy.

    “COVID allowed me to focus on these ideas and read them properly,” Stolzel explains, adding she hopes to implement more of the students’ recommendations this fall.

    Like Tea Centre in Courtenay, Tea Centre is operating a booth in front of their store, setting up displays so people can see products up close rather than just online.

    Says Stolzel, “People still have money to spend, and they want something nice to treat themselves.”

    A time to learn

    Despite differences in approaches to selling tea during COVID, the company owners interviewed agree that the COVID experience is a time of learning and trying new things.

    “There’s no clear direction right now,” Tea Affair’s Sameer Pruthee says. “We try to see what’s happening and what direction we have to take our companies in. Nobody has an answer right now.”

    As Canada adjusts to the new normal, now is a good time to sit back, relax, and have a cuppa. Perhaps the answer will be revealed in the tea leaves.

    Tea in Foodservice

    Research and Markets projects a 4% increase in tea sales in foodservice during the next four years, a revision accounting for the impact of COVID-19 on sales.

    “The growth of food delivery and the takeaway market is one of the prime reasons driving the foodservice tea market in US growth during the next few years,” according to the report Foodservice Tea Market in the US 2020-24. “The market is driven by rising demand for mobile foodservice and the functional benefits of tea as well,” according to the newly released report.

    Research and Markets estimates the market will increase by $2.66 billion during the forecast period.

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