The European Speciality Tea Association casts aside the aura of elitist tea in favor of inclusion. Learn why during a webinarJuly 8at 7pm | London | 2pm EST
In July, the European Tea Society transitions to a more inclusive European Speciality Tea Association. “The rationale is to reflect the nature and purpose of the association more accurately,” writes executive director David Veal. Members of the Society, founded in 2018, overwhelmingly voted for the change, said Veal.
“Whilst the logo, branding, and house style will remain unchanged to help promote consistency and continuity; there will be significant changes in many areas of the association, writes Veal, who outlined a three-year plan.
Here are the highlights:
Education and Research: Education is central to the association’s value and mission, he said. The Association in July will introduce its first online basic module: Tea 101, developed in conjunction with Australian Tea Masters. “It is aimed at beginners and is really to help people who because of current restrictions of movement are not able to partake in more traditional methods of tea education. This module will be free of charge to European Speciality Tea Association members,” writes Veal. A standalone “Introduction to Tea” will be available after June, and the main program will be launched as soon as things are back to normal, most likely in early 2021.
Competitions: Increase the number of tea competitions that we organize, this being such an excellent tool for improving the quality of tea and bringing communities together.
Certifications: Delivered through our members who are trainers, or who have schools or academies, and will cover a number of disciplines at two different levels including Camellia sinensis, brewing skills, sensory skills, botanicals, tea barista skills, health and agronomy.
Tea Research: The association is based at the University of Chester and has access to sensory laboratories for European Speciality Tea Association research and that of our members. Research objectives include developing a greater understanding of many aspects of tea, including claimed health benefits and the importance of full understanding of water.
Advocacy: The European Speciality Tea Association aims to be at the forefront of the growth and development of the community, working closely in forming, and indeed leading relationships with other tea associations and organizations.
Promoting Excellence: The Association seeks to be in the forefront of the continuing quest to improve standards, quality, knowledge, information interest, and enthusiasm for specialty tea.
Veal, who formerly led the Specialty Coffee Association of Europe (SCAE), and more recently served as executive ambassador for the Specialty Coffee Association (SCA), described his vision of “a modern, efficient, inclusive, ethical, professional, member facing, committee-driven and volunteer led membership association.” The European Speciality Tea Association’s great asset is members respected throughout the tea community with strong credibility and reputation and is an inspiration to others, he said.
“Our members continue to make a real difference to the quality of products in our industry and the end-users in and out of the home; internationally through innovation, research, education, communication, collaboration, support, and knowledge; for all sectors of members from farmers to consumers,” writes Veal.
The association’s “strategic focus in Europe, our core market,” but the Association “will be active, either independently or in collaboration with others, opportunistically in other areas around the world commercially and in accordance with our values.”
“In order to grow our membership, to make the association stronger, and to assist in our mission to promote speciality tea, we will be initiating a major membership drive to reach new and potential members across Europe,” writes Veal. Categories include producers in tea growing countries, and one for a new type of person in the tea community, the Tea Barista,” said Veal.
When we have sufficient members in a given country, such as Russia, “we hope to open up a chapter to help those members network and organize events,” he said.
“Once the world starts to get back to some sort of normality, we will resume our strategy of attending events around Europe to promote the association, promote speciality tea, engage with local tea communities, gain new members, and deliver knowledge,” writes Veal.
The European Tea Society was first advanced by several specialty tea pioneers and launched in September 2018 at the Tea & Coffee World Cup Exhibition and Symposium in Birmingham, England, with Nigel Melican as president, Alexis Kaae as vice president, and Bernadine Tay was the founding director.
Immunity is the Epicenter of Health Enhancing Foods
Water Works Wonders
Digesting Grubhub
Tea for the Front Line
“Now is the time to play the health card” I advised during a June 10 webinar on Tea Vulnerabilities hosted by the European Speciality Tea Association (formerly known as The European Tea Society).
Recent scientific articles* suggest that black tea polyphenols derived during the oxidation of tea catechins could potentially inhibit the ability of the coronavirus to replicate.
RNA replication in the coronavirus is a two-step mechanism that relies on the RdRP (RNA-dependent RNA polymerase) protein to catalyse the synthesis of the RNA strand.
Authors of a March article in the Journal of Medical Virology conclude that “theaflavin could be used as a lead compound for developing a SARS?CoV?2 inhibitor that targets RdRp. However, the exact in vivo effect is still unclear, and further research is needed to confirm the mechanism whereby theaflavin target SARS?CoV?2.”
Medical researchers in Taiwan recently concluded an investigation of 720 compounds listed in the Natural Product Libraries for anti-COVID-19 efficacy. The list was narrowed to 10 compounds and mixtures that had strong potential for anti-COVID-19 efficacy, according to Dr. Bashar Khiatah. “The compounds that have been found to have an anti-COVID 19 effect are the polyphenols that are found in teas,” writes Amylee Amos, MS, RDN. These are found in black tea, green tea, oolong tea, and pu-erh. The most promising is Theaflavin-3,3? -digallate (TF3) which is converted from catechins during fermentation.
Researchers in 1998 found tea theaflavins completely neutralized bovine coronavirus and rotavirus infections. In 2005 Chinese researchers showed that black tea significantly inhibited chymotrypsin-like protease activity essential to virus reproduction. Recent in-vitro studies found TF3 completely inhibited COVID virus replication in cell cultures.
The Indian Council of Medical Research (ICMR) announced that it will study Theaflavins’ antiviral properties.
*View research paper abstracts and links at end of this report.
Immunity is the Epicenter of Health Enhancing Foods
The polyphenols in tea are known to boost immunity and combat inflammation. Health institutes worldwide have for several years recommended eating foods and beverages that reduce inflammation and naturally boost the body’s immune system.
Due to the pandemic this health message has captured the attention of consumers who are increasingly seeking out products to boost their immune system, according to a post-pandemic study by Unilever’s CMI U-Futures and CMI People Data Centre.
Unilever found that in the US the intake of vitamin supplements in March rose by 15% in the space of a month. In Brazil consumers are bingeing on vitamin c-rich fruits and in Japan, yogurt formulated to boost the immune system saw a spike in sales.
Just Food reports that in Israel, interest in immune-system supportive ingredients rose 66% in March. According to AI-focused market research firm Tastewise, “we expect the trend to continue to rise. Immunity, stress relief, medicinal benefits and more are all skyrocketing.”
In China, a post-Covid-19 study of consumer behavior by McKinsey & Co. found that 70% of consumers intend to “work to boost their own physical immunity by exercising more and eating healthy.”
A review of ingredients used by at-home cooks shows a preference for wholesome, lean foods which may be influenced by studies showing obese victims are less likely to survive COVID-19.
“The desire for health and well-being post pandemic is a consistent trend across all markets,”? Unilever concluded. Unilever CEO Alan Jope told analysts “anything that’s in the space of wellness – health and well-being – is going to enjoy sustained strength.”
Having an optimally working immune system is more important than ever. The way our body deals with an infection is influenced by many factors of which the nutritional status is a critical element,”? Dr Angelika De Bree, Unilever’s global nutrition director, explained to the The Food Navigator..
“Our biggest food brands offer thousands of products and recipes which are nutritious, affordable and made with sustainably sourced ingredients,” according to Dr. De Bree.
Tea is clearly the ideal beverage for the situation at hand.
“Our tea and herbal category delivers healthy hydration through Earth’s most sustainable plant-based drinks,” she said.
Water Works Wonders
The UK Tea Academy released a white paper describing “The Ultimate Ingredient for The Perfect Cup of Tea” – that being water.
“Water, which makes up to 99% or more of a cup of tea, is an often-overlooked ingredient that has a huge impact on the taste, aroma, and appearance of every cup. Following research of many different teas and many different waters, this paper finally provides the ideal water specification need to make the best brew,” writes Jane Pettigrew, one of three principal authors of the 12-page report.
The white paper highlights the key ingredients of water which impact the brewing process of tea. It also describes a standard water specification to create the optimal cup of tea.
Water used to brew tea has not been considered in the same way as water for coffee, according to the report.
If the ideal water is not used, the delicate notes of tea cannot be realized, resulting in a bad experience with even the finest of teas. Sadly, this leads to a lack of consumer confidence as well as misconceptions of how certain teas taste.
“A perfect example of this is green tea. It is very common for people to “think” that they do not like green tea, the opinion reached because the tea has been almost certainly made with unfiltered water, at the wrong temperature and over-brewed. The entire flavor profile is altered, often leaving the tea bitter and undrinkable. Brew a green tea correctly and the entire experience is worlds apart in comparison,” writes Pettigrew.
The report delves into the chemistry of water, describes the importance of removing chlorine and preserving the the buffer capacity of the water, a delicate balance of calcium and magnesium that defines ideal “hardness.”
Retailers and tea traders should view this work as an excellent resource and, like those in the coffee world, they should adopt a water standard when tasting tea.
The specification appears below.
Digesting Grubhub
European food delivery venture Just Eat Takeaway derailed what looked like a pre-destined Uber takeover of Grubhub this week.
In May San Francisco-based Uber Technologies was set to acquire Chicago-based Grubhub to become the largest online foodservice delivery firm in the US. Haggling over price, and the likelihood of antitrust scrutiny, killed the deal which was valued at several hundred million (Uber offered $62.50 per share).
In June, Amsterdam-based Just Eat Takeaway offered the equivalent of $75.15 per Grubhub share. Just Eat (UK) and Takeaway (The Netherlands) combined their businesses in April, and now control a huge share of Europe’s growing market for both delivery and food delivery software.
Packaged Facts analyst Cara Rasch said the deal “will allow Just Eat Takeaway to gain a larger footprint in North America, and diversify Grubhub’s business. Skip the Dishes, a subsidiary of Just Eat Takeaway, does a lot of business in Canada and could help the Grubhub brand expand more broadly through North America.”
“In the short-term, third-party restaurant delivery apps have a number of advantages over in-house delivery,” she explains. “They are convenient for consumers because they allow customers to order from a variety of venues using one application. They also can allow smaller businesses without the capital to invest in in-house development of effective online apps to expand their delivery services quickly in the wake of COVID-19, which has forced fast changes,” writes Rasch, but restaurants consider the commissions that third-party online delivery companies charge to be a burden. “If they don’t raise their prices for meals ordered via a third-party app, they are in danger of losing money in an already tight-margin business that has been threatened by lower overall restaurant sales during the pandemic,” she said.
The outlook for carryout and delivery is bright due to distancing guidelines that have shuttered dine-in service or forced restaurants to greatly limit their dine-in capacity.
Long term, “many restaurants are going to see the value of investing in an in-house system for delivery orders. Using a third-party company for ordering and delivery makes it harder for restaurants to develop a direct relationship with consumers. It is also challenging to ensure food quality since restaurants have no control over the food once it leaves the restaurant,” she said.
The Tea Spot launched its new Flu Fighter tea, a caffeine-free herbal blend that features functional ingredients, including astragalus, honeysuckle, organic licorice root, orange peel, tangerine peel, dandelion root, mulberry leaf, red root and organic ginger.
Flu Fighter Tea
The ingredients in the new Flu Fighter tea were chosen based on a recent medical report, published in Military Medical Research (Volume 7, Article Number 4, February 2020), on the diagnosis and treatment of the novel coronavirus (2019-nCoV), where a combination of herbs and roots were used to support flu-like symptoms.
According to Maria Uspenski, founder and CEO of The Tea Spot and author of Cancer Hates Tea, many of the natural herbs in this sweet, nourishing tea were also used in ancient times to make wellness broths for recovery and building strength. And while the Flu Fighter tea is meant to be supportive and maintain wellness, it is not meant to treat, cure or prevent any disease or ailment.
“The pain and stress of the current pandemic has pushed The Tea Spot to think outside the box as to how we can help empower people to find and support better overall wellness,” said Uspenski. “The result of our efforts is our aromatic and medicinal Flu Fighter herbal tea, inspired by recent medical research. This supportive tea is intended to be used in combination with social distancing, good personal hygiene, sound diet, ample exercise and rest, while it encourages wellness and facilitates calm amidst the turmoil and uncertainty that’s happening around the world.”
The Tea Spot donates 10% of all profits in-kind to cancer survivors and community wellness programs. In May The Tea Spot donated 55,000 specialty tea sachets to first-responders in New York, California, and Texas.
Footnote: The US Census Bureau on June 8 announced a very helpful online resource for understanding and keeping up with the impact of COVID-19. Visit: COVID-19 Data Hub (https://covid19.census.gov/).
THEAFLAVIN REFERENCES *Jrhau LungYu?Shih LinYao?Hsu YangYu?Lun ChouLi?Hsin ShuYu?Ching ChengHung Te LiuChing?Yuan Wu |The potential chemical structure of anti?SARS?CoV?2 RNA?dependent RNA polymerase | First published: 13 March 2020 https://doi.org/10.1002/jmv.25761 Chen CN, Lin CP, Huang KK, et al. Inhibition of SARS-CoV 3C-like Protease Activity by Theaflavin-3,3′-digallate (TF3). Evid Based Complement Alternat Med. 2005;2(2):209–215. doi:10.1093/ecam/neh081 Clark KJ, Grant PG, Sarr AB, Belakere JR, Swaggerty CL, Phillips TD, et al. An in vitro study of theaflavins extracted from black tea to neutralize bovine rotavirus and bovine coronavirus infections. Vet Microbiol. 1998;63:147–57. Ksiazek TG, Erdman D, Goldsmith CS, et al. A novel coronavirus associated with severe acute respiratory syndrome. N Engl J Med. 2003;348(20):1953–1966. doi:10.1056/NEJMoa030781 Hegyi A, Friebe A, Gorbalenya AE, Ziebuhr J. Mutational analysis of the active centre of coronavirus 3C-like proteases. J Gen Virol. 2002;83(Pt 3):581–593. doi:10.1099/0022-1317-83-3-581 Leung WK, To KF, Chan PK, et al. Enteric involvement of severe acute respiratory syndrome-associated coronavirus infection. Gastroenterology. 2003;125(4):1011–1017. doi:10.1016/s0016-5085(03)01215-0 Herold J, Gorbalenya AE, Thiel V, Schelle B, Siddell SG. Proteolytic processing at the amino terminus of human coronavirus 229E gene 1-encoded polyproteins: identification of a papain-like proteinase and its substrate. J Virol. 1998;72(2):910–918. Muhammad Tahir ul Qamar, Safar M. Alqahtani, Mubarak A. Alamri, Ling-Ling Chen, Structural basis of SARS-CoV-2 3CLpro and anti-COVID-19 drug discovery from medicinal plants†,Journal of Pharmaceutical Analysis,2020,ISSN 2095-1779,https://doi.org/10.1016/j.jpha.2020.03.009. Zhavoronkov, Alex; Aladinskiy, Vladimir; Zhebrak, Alexander; Zagribelnyy, Bogdan; Terentiev, Victor; Bezrukov, Dmitry S.; et al. (2020): Potential COVID-2019 3C-like Protease Inhibitors Designed Using Generative Deep Learning Approaches. ChemRxiv. Preprint. https://doi.org/10.26434/chemrxiv.11829102.v2 Chen CN, Liang CM, Lai JR, Tsai YJ, Tsay JS, Lin JK. Capillary electrophoretic determination of theanine, caffeine, and catechins in fresh tea leaves and oolong tea and their effects on rat neurosphere adhesion and migration. J Agric Food Chem. 2003;51:7495–503.
The Kao Ting Academy in Jian Yang, Fujian Province celebrated International Tea Day with a demonstration of the ancient Song Dynasty preparation of powdered tea whisked in Jian Zhan tea bowls fired at a local kiln. Photos by Liu Linjiang and Ding Shuliang.
International Tea Day
Carpe Diem
The tea industry seized the day May 21, celebrating with authentic and meaningful exchanges of information globally in contrast to amped up marketing typical of previous years.
The inaugural UN sanctioned-event was grounded in the soil and the people who grow and process tea. Since the 1950s marketers, mainly in developed countries, have promoted tea during the year-end holidays, designating December 15 as International Tea Day. The effort was well-meaning but out-of-sync with traditional spring celebrations in tea producing lands.
Last week the world witnessed a confident and much better coordinated effort, as various tea associations, government tea boards, trading companies and educational institutions followed the example set by the FAO Intergovernmental Group on Tea (IGG). Due to the pandemic, many activities were conducted virtually. The overall impact was significant as media coverage carried the UN messaging.
Tijjani Muhammad-Bande, president of the United Nations 74th General Assembly, took part in an online session with 200 delegates from 20 countries. He said that “we must galvanize multilateral collective action to implement activities in favor of the sustainable production and consumption of tea and join the co-convenors and participants in raising the awareness of importance of tea in fighting hunger and poverty.”
Noting that 60% of tea is now produced by smallholders, FAO (UN Food and Agriculture Organization) pointed out that tea production and processing directly contributes to several of the UN’s Sustainable Development Goals (SDGs), including the first goal, the reduction of extreme poverty; Goal 2, the fight against hunger; Goal 5, the empowerment of women; and Goal 15, the sustainable use of terrestrial ecosystems.
In Rome FAO director-general Qu Dongyu said that a more productive and resilient tea sector calls for better policies, more innovation, increased investments and greater inclusiveness in tea production and processing. This year’s theme is “Harnessing Benefits for all from Field to Cup.”
“Tea, as a source of employment and revenue, can help alleviate some of the hardships resulting from the current economic downturn,” he said.
China invested significant resources with regional festivals and a series of events at the Chinese Businessman Museum in Beijing. More than 50 industry groups took part.
Tea consumption has grown rapidly the past two decades and contributes to the financial well-being of millions. China benefited greatly from this growth. Regional activities included a stir-frying tea competition featuring Yuhua tea in Nanjing in China’s Jiangsu Province and a demonstration of the traditional Song Dynasty way of whisking powdered tea in Jian Zhan cups hosted by the Kao Ting Academy in Jian Yang, in Fujian Province.
Zhang Jun, China’s permanent representative to the United Nations, said the inception of International Tea Day has given tea new life and vitality.
Events were promoted in several streaming videos with brilliant images such as the Food and Agriculture Organization’s “The Art of Making Tea” and the UK Tea & Infusions Association video: “Raising Our Cup to All Tea Drinkers”
The Tea and Herbal Association of Canada President Shabnam Weber hosted an all-day “Sofa Summit” that featured conversations with 21 tea experts, retailers, traders, and association directors across the globe.
China hosted a 36-hour live broadcast featuring 29 people from several countries.
Coordinated by the China NGO Network for International Exchange, events in Beijing brought together the China Culture Promotion Society, the Tea Road (China) Cooperative (TRC) and the China Chamber of Commerce of I/E of Foodstuffs, Native Produce and Animal By-products (CFNA).
FAO formally commended the effort and Wang Shi, chairman of the China Culture Promotion Society cited China’s responsibility “to work with peers in the world to promote the healthy and sustainable development of the tea industry and exchange of tea culture. It can help to build a community of shared future for mankind.”
India announced a special auction organized by the Tea Board of India from tea plucked on Thursday by planters across the country. This special edition is limited to five packages in a lot with a maximum of five lots from each factory. Proceeds from the June auction will be shared with relief funds.
Messaging in every country amplified the global trend toward transparency. FAO organizers used the occasion for an honest assessment of tea industry opportunities, challenges and potential shortfalls.
“Tea can play a significant role in rural development, poverty reduction and ensuring food security in developing countries because of it being one of the most important cash crops,” according to the UN.
Joydeep Phukan, secretary of the Tea Research Center at Tocklai, in Jorhat Assam, formally proposed the UN initiative in 2015 and proudly carried it forward though the General Assembly vote in November 2019.
Angela Lansbury as teapots
Amanda@pandamoanimum posted a clever Twitter thread in tribute to Angela Lansbury and tea. The thread portrays the beloved actress in her many outfits, each meticulously matched with a tea pot. The effort was rewarded with 20,000 retweets and many many “likes” including my own.
The effort inspired others to post their favorite shot of Lansbury and a suitable teapot to share the spotlight.
India COVID-19 Update
The Indian Tea Association (ITA) estimates first quarter COVID-19 related losses will exceed $275 million.
Tea production declined by 65% in March and by 50% in April in Assam and West Bengal following a March 21 lockdown that stopped the harvest and led to transportation and logistics delays.
ITA, which represents planters, urged the federal government and state governments to provide financial support and relief payments. Growers are pressing for an increase in working capital. Operations resumed April 12 but with a limited workforce. Pruning overgrown bushes delayed plucking an additional two weeks. In the meantime, dry weather has lowered yields.
Production totals are 140 million kilos below normal output according to ITA. Export demand is increasing from key trading partners that include Russia, UAE and Europe.
This map shows relatively few cases in Assam as rural areas in general experienced lower rates of infection than crowded Mumbai, but that is changing as the contagion progresses and migrant workers return to their home villages. Sikkim, for example, only reported its first case last week and the rate of infection remains low in Ladakh as well as in the union territories of Goa, Puducherry and Dadra & Nagar Haveli. Maharashtra was the Indian state hit hardest by the coronavirus on May 23 the state saw a record of more than 3,000 new infections in the span of just 24 hours surpassing the mark of 50,000 cases.
Matcha in Demand
Matcha continues to experience strong growth and sales estimated at $2.26 billion by the end of 2025, according to market research aggregator Million Insights. The combined average growth rate during the five years beginning 2019 is 4.7%, according to the Matcha Tea Market report.
Rising demand for organic, natural and nutrient-rich products are likely to have a positive impact on market growth as consumers demand healthy beverages, containing vitamins and antioxidants.
The report claims that matcha “improves focus, calmness and concentration as well as it enhances metabolism, gastrointestinal functioning, immune system, natural detoxification and inhibition of cancer cells.”
Little of the tea is prepared in the traditional Japanese style of whisk and bowl. Dunkin, for example, introduced a stone ground powder produced in Nishio in Aichi prefecture. The tea is blended with milk (or plant milk) and can be served hot or cold. The matcha lattes were tested in Springfield, Mass., and Phoenix, Ariz., and rolled out nationally Feb. 26.
During the company’s the first quarter earnings call, Dunkin’ specifically mentioned matcha as a sales driver. Comparable sales declined for the three months ending April, but during the early weeks of the quarter comparable sales were up 3.5% “and were on pace to be the highest quarter comparable sales growth since 2013,” according to the company. “The increase in average ticket was driven by a favorable mix shift to premium priced espresso and cold brew beverages, including the launch of Matcha Latte,” according to the company.
In March YELP! marketers decided to find out what food and beverages people across the country were being delivered right now! Data scientists tracked how frequently a dish is ordered in each state relative to its popularity in other states.
“When we first looked at the results, pizza delivery reigned supreme, which is no surprise since it delivers well and it’s perfect for a family night in. However, we dug into the data to find the most uniquely popular delivery order in every state*, and that’s when things got interesting,” writes YELP!
Winners include a run on crayfish in Texas, poke bowls in Indiana, pad thai in Washington, sushi in South Carolina and naan in Wyoming but guess what topped the list of delivery orders in California last week? How about Michigan? and Hawaii?
Boba tea.
“What we found was a mix of delectable dishes and drinks that tell a story of how American taste buds differ from state to state and region to region,” according to the company.
*Samuel Hansen at Yelp! employed a natural language processing technique called term frequency-inverse document frequency (TF-IDF), which quantifies how frequently a dish is ordered in a state relative to its popularity in other states.
East Africa Update
Rwanda’s tea sector, largely spared from lockdowns, saw a marked increase in production during the first quarter. The harvest totaled 9,000 metric tons generating $27.6 million in revenue, which is up by 15% from the same period in 2019.
But there are still formidable challenges getting that tea to market.
East African tea growers truck tea destined for export to the auction at Mombasa. Kenya’s borders remain open during the coronavirus pandemic, but Tanzania and Kenya required each driver be tested before crossing.
The result offers a lesson in what can go wrong. A shortage of testing supplies and the sheer number of truckers led to delays that extended from hours, to days, to weeks. Few of those who were tested showed symptoms and none were quarantined while they awaited results. Unable to afford hotel rooms they slept in or under their trucks, cooked together and played sports to kill time. Some wore masks but many did not and very few practiced social distancing. During the two weeks ending last week 150 truckers crossing into Kenya at Namanga tested positive and were eventually ordered back across the border but by then they had infected hundreds of local merchants and fellow truck drivers.
The Washington Post reports that beginning this week, only drivers that have tested negative prior to arrival at the border will be permitted to cross. Uganda has since discovered dozens of infected truck drivers crossing from Kenya. Zambia closed its border to Tanzanian truckers. Kenya is the largest tea producer in the region at approximately 500 million kilograms followed by Uganda which harvests 60 million kilos annually; Tanzania at 35 million, Rwanda at 30 million and Burundi at 9 million kilos per year.
At the Mombasa auction Rwanda growers earned an average $2.68 per kilogram of tea last year, followed by Kenya growers who received an average $2.59, Burundi at $2.21 per kilo, Tanzania $1.36, and Uganda $1.21. The overall average price was $2 per kilo.
Kenya currently has 1,214 confirmed COVID-19 cases, according to Johns Hopkins Coronavirus Resource Center. There have been 51 deaths. Tanzania is reported to have 509 confirmed cases with 21 deaths. Rwanda has 327 confirmed cases with no deaths reported as of the second week of May.
Holiday Travel Restrictions Eased for Turkish Tea Growers
Climate dictates that Turkish tea be harvested in three flushes, unlike Africa, Sri Lanka, and Southern India where plucking continues year-round. Tea is grown there on sparsely populate hills facing the Black Sea where growers depend on seasonal labor.
This year’s spring flush was interrupted by a March 28 lockdown to prevent spread of the coronavirus. Fatma Genc, a researcher at Istanbul’s Marmara University, told The National, that 50,000 tea farmers were unable to prepare their fields for the harvest. Ramadan, which began April 23, complicated timing for Muslims.
“The failure to harvest this year will make it difficult to meet even domestic demand,” said Genc told the newspaper. “Tea prices, which have been hiked twice in a row this year, will increase even more if the producers cannot go to the field.”
This week farm owners and laborers from across the country were finally able to travel to northern Turkey on trips extending through the three-day Eid al-Fitr festival that follows the Muslim holy month of Ramadan. Seasonal labor from neighboring Georgia and Azerbaijan continue to face border restrictions leading to some creative solutions. The city of Findikli in Rize hired locals to harvest around half of the 30,000 metric tons produced nearby in an agreement that spans six months. Workers harvest for 10 days and while the leaves for the next flush are growing they complete municipal projects.
In Rize Province, the heart of the growing region, 16,000 laborers were given permission to travel between fields and home. The Provincial General Hygiene Council required testing at least one member of each family, about 6,000 in all. Screenings continue.
The provinces of Rize, Trabzon, Artvin and Giresun produce around 260,000 metric tons of tea annually, most of it sold domestically. Turks consume an average 3.5 kilos of tea a year, more than any other country. While much of the tea is imported, a significant shortfall is expected due to rising costs and the fact that much of the domestic tea went unpicked. Caykur, the state-owned producer that supplies 60% of the country’s tea is running a deficit and facing additional costs due to the pandemic. Caykur purchases tea from 200,000 independent farmers.
Turkey has 157,814 confirmed COVID-19 cases with 4,369 deaths, making it ninth on the list of countries most impacted by the pandemic, according to the Johns Hopkins Coronavirus Resource Center.
Tea garden in Turkey’s Rize Province, along the Black Sea.
Robotic Waitstaff Serves Tea
Tearoom Robot Reduces Contact with Waitstaff Easing Customer Concerns
The Tea Terrace, a small London-based chain of tea rooms that was forced to close during the March outbreak intends to open this July with the assistance of family-friendly robots.
Forbes magazine reports that managing director Ehab Shouly found while surveying customers that fear of crowding and contamination by waitstaff were their greatest concerns. Spacing tables was a relatively simple adjustment but a previous experiment with automated service at the company’s Surrey tearoom proved prescient. Last July The Tea Terrace became the first restaurant in the UK and Europe to introduce a robotic waitress, named Theresa.
Theresa is summoned by guests using controls at the table. The robot responds to voice commands. Shouly has also introduced functional assistants such as Captain Tom, a bot that delivers up to four trays each with teapot, teaware, and food.
Modifications are underway to expand robotic services to all four tearooms which serve 200 to 300 guests per day on weekends.
Nepal Asks India to Resume Imports
Tea growers in Nepal are seeking the resumption of exports to India, according to Nepal’s Ministry of Commerce and Supplies.
India stopped importing tea the week of May 6 and has not responded to Nepali officials. Periodically India has shown its displeasure with Nepal by refusing entry of tea and other exports such as palm oil.
Purna Kumar Karki, president of Jhapa Tea Entrepreneurs Association, told My Republica that Indian authorities impose non-tariff barriers on Nepali products from time to time “for no reason.”
Sanjay Bansal, chairman of the Darjeeling Tea Association (DTA), recently appealed to West Bengal Chief Secretary Rajiva Sinha to regulate the sale of Nepal tea to save the Darjeeling Tea Industry. Darjeeling growers maintain that Nepal undercuts their unique tea which is protected with a global Geographical Indication certifying its authenticity.
Bansal told The Statesman Nepal did not impose a lockdown and growers there have been producing at a high rate since February. “These teas are ready and are in the process of being shipped to India through the Indo-Nepal land borders in West Bengal to be sold in the local markets by taking advantage of the absence of Darjeeling Tea in the market due to the lockdown restrictions,” said Bansal.
In a related matter, Federation of Chambers of Commerce & Industry, North Bengal (FOCIN), has requested Chief Minister Mamata Banerjee to allow small wholesale and retail shop owners to open their establishments.
Global Tea Exports Declined 18.8% year-over-year in 2019.
Tea Export Value Declined in 2019
Logistical hurdles in tea producing countries greatly complicated export this quarter as demand declines and prices remain low. Recessions in Russia, Europe, and North America dim prospects of a profitable return for the export segment where sales have declined in value by an average 12.8% since 2015.
The declared value of global tea exports depreciated 18.8% year-over-year in 2019.
Sales from tea exports totaled only $6.4 billion in 2019, according to analyst Daniel Workman at World’s Top Exports. Tea shipments worldwide were valued at $7.3 billion five years ago.
China, at $2 billion in sales, remains the leading tea exporter, accounting for 31.8% of total exports by value, up 13.5% compared to 2018.
China faced several impediments to growth prior to the coronavirus outbreak but retained its rank as the top tea exporter globally in 2019. Green tea exports, the main tea crop, totaled 304,000 metric tons and were valued at $2.02 billion. The average price of exported green tea was $4.34 per kilo in 2019.
China’s tea exports were generally stable and of improved quality, despite the U.S.-China trade dispute and uncertainties in the world economy, according to agricultural and trade officials. Tea exports to the U.S. in 2019 were down 5.1% to 15,000 metric tons, but this was easily offset by a 15.6% increase in purchases by ASEAN nations. The 23,000 metric tons sold to ASEAN countries was valued at $400 million, up 55.7% compared to 2018.
China reported a 13.6% overall revenue increase year-over-year. Black tea exports were up 6.7% to 35,000 metric tons increasing in value by 24.5% to $350 million, according to China customs statistics. Black tea averaged $9.92 per kilo, up 16.72% year-on-year.
Yu Lu, vice president of the China Chamber of Commerce of Import and Export of Foodstuffs, Native Produce and Animal By-Products (CFNA) said the average annual compound growth rate of exports was 3% during the past three years. Green tea accounts for 82.8% of the total volume, which topped 367,000 metric tons last year.
Trade with countries along the Belt and Road increased 4% last year, earning China $560 million, a year-on-year increase of 307%, according to Yu Lu.
India exported $803 million worth of tea in 2019, up 4.6% compared to the prior year. India set a production record in 2019 growing by 3.8% thanks mostly to smallholders, but while volume reached 1,390 million kilos, the country accounted for only 12.6% of tea exports by value.
Sri Lanka’s 11.3% market share by value and Kenya’s 5.7% share also contribute significant volume, but each saw steep declines in value as prices for cut, tea, curl CTC grades fell. During the past five years (2015-20), the value of Kenyan tea exports declined by 71.3%. During that same period, the value of tea sold for export by Taiwan increased 131.3%; sales of Japanese tea are up 59.6%, and the value of Chinese tea for export is up 46.5%, according to World’s Top Exports.
Selling to domestic consumers is appealing in China and Japan, where higher prices are the norm, but India may benefit most from increasing domestic consumption.
Tea & Tariffs
The economic impact of the pandemic makes it unlikely that China will meet the expectations of a “phase one” agreement negotiated with the U.S. in January. As a result, U.S. President Donald Trump said he might initiate another round of tariffs targeting China.
Or maybe, not.
“I’m very torn, I have not decided yet, if you want to know the truth,” President Trump told reporters last week.
On Friday, to keep what have been productive discussions on track, the U.S. Trade Representatives’ office released this statement: “In spite of the current global health emergency, both countries fully expect to meet their obligations under the agreement in a timely manner.”
In January, China agreed to a 2020 increase of $76.7 billion over 2017 imports. China has since purchased less than $25 billion of U.S. goods, which is a decline of 5.9% through April compared to 2019, reports Bloomberg. The 2020 goal is almost $200 billion in sales.
U.S. trade plunged in March. Overall the U.S. bought 6.5% fewer goods than during the same period in 2019. Imports of Chinese tea through March 2020 declined 23% compared to the same period in 2019, according to the Global Agricultural Trade System database (GATS). Lower sales are due, in part, to a 15% tariff imposed in September 2019. The duty was later reduced to 7.5% in February 2020, but by then, many blenders had switched suppliers. During the first quarter in 2019, the U.S. imported Chinese tea valued at $32 million, a total that declined to $24.7 million during the same period in 2020.
Volume is down 31% from 8.7 million metric tons to 6 million metric tons through March. China is predominately a green tea exporter, but volumes of every category slid, except organic flavored green tea.
Jason Walker, marketing director at Firsd Tea in New Jersey, the U.S. offices of China’s largest tea exporter, writes that while “U.S. imports of Chinese black tea have generally declined over the past five years. More recently, the U.S.-China trade war and coronavirus pandemic have contributed to this slowdown. However, organic black tea imports from China have been rising, with a 66% increase in volume.”
Since workers were able to return to the fields before April, tea production China was spared the pandemic-associated drop in yield experienced in India and Sri Lanka. Imports recorded during the first quarter include little of the spring harvest. Second-quarter statistics will be more revealing as they will reflect the logistical challenges that are still rippling through the supply chain.
“Firsd Tea has been watching the activity at U.S. ports for indications of delays and disruptions. We have not seen any to date,” writes Walker. “In terms of containers leaving China, we have not seen any disruptions since normal business resumed around the end of February in China. At this point, China operations have implemented monitoring systems and PPE (personal protection equipment) requirements for workers. We are watching for indications of flare-ups, but so far, we don’t see evidence of another wave of infection,” writes Walker.
Blenders initially found themselves racing to meet the demand for packaged goods, particularly private label for grocery, but orders for foodservice grades has virtually disappeared due to the unprecedented restaurant and retail tea closures. This alone will substantially reduce tea imports from every producing country.
Specialty tea importers receiving Chinese tea this spring say that demand remains steady despite a three-fold increase in airfreight, which is a far greater expense than the 7.5% tariff.
“Importers were working with a three-fold increase in air freight delivery in April. Rates are still high, but at least cargo is moving faster now,” writes Andrew McNeill with Seven Cups Fine Chinese Tea in Tucson, Ariz.
China recognizes the desirability of retaining a presence in the U.S. market as Europe is likely to experience a more severe recession than the rest of the world. The European Commission last Wednesday released projections that show economic activity shrinking by 7.4% in the 27-nation bloc, according to the New York Times. Economists predict the deepest economic recession in EU history.
While the U.S. administration is angry at China, the escalation of retaliatory measures challenges the prevailing business assumptions guiding American companies in China. U.S. companies invested $14 billion in new factories and other long-term investments in China last year, according to the National Committee on U.S.-China Relations and the Rhodium Group, a consultancy that tracks foreign direct investment flows.
Shawn Donnan, writing in Bloomberg Supply Lines, suggests, “it’s worth remembering every so often that it is still businesses and not governments that really make the decisions that drive globalization and supply chains and that they aren’t decoupling yet.”
Reenergize Local Consumption
Pradyumna Barbora, a specialty tea producer in Assam, points to a straightforward solution: Increasing average per capita consumption from 750 to 800 grams will “uplift the Assam tea industry,” he writes.
“If every tea lover in the country increases their consumption by a mere 50 grams per month, and starts sourcing their tea locally, the gardens will be able to meet their expected minimum wages whilst creating a better living environment for themselves,” writes Barbora, spokesman for Tea for Unity, a group of Assam planters. “We are losing focus on a high-quality heritage product which fetches much more and is more valuable than commercially mass-produced tea,” writes Barbora. The tea industry employs more than a million workers,” he explains, “Investment will improve the mindset of the workforce, translating into greater efficiency and quality.”
Processed tea is piling up as demand declines, and transport is interrupted. Globally, warehouses usually empty by the start of the spring harvest. An abundance of tea stored in 2019 is compounding problems in India. Consider the 21 villages in Champawat, a tea-growing region where warehouses are bulging because drivers are not permitted to travel.
Tea, valued at INRs360,000 ($4,700), was ready to be sent for auction in April, “but we have not been able to transport it due to the lockdown. If the stock is not sent to Kolkata soon, those involved in tea plantation and its selling may face a financial strain,” Desmond Brikbeck, manager of several local tea gardens, told the Times of India.
U.S. Consumers Remain Wary of Reopening
Datassential continues its weekly series of webinars tracking consumer behavior during the pandemic. The COVID-19 series is free and hosted by managing director Jack Li, whose company pioneered the use of menu data to predict flavor trends.
The topic May 8 was “The Next Phase” (download PDF).
Reopening is underway led by Starbucks, which announced that 85% of its corporate stores would soon resume operations.
Li notes that concern has declined somewhat as some states reopen, “but America is still anxious, with slightly more than half of the people feeling very concerned and hugely worried about their own personal health.”
“Avoidance of eating out is steady, but down from a month ago with 55% of those surveyed saying they will “definitely avoid going out” and 27% saying they are “nervous but will still eat out.” The number of individuals reporting “no concerns whatsoever” increased to 18%, up 2% since April 27 but down 23% since March 10, according to Datassential.
Health remains the top concern, but economic worries are intensifying, according to Li, who found that 57% of respondents are more concerned about the public-health crisis (down 2% since April 27 and down 6% since April 10). Those who say they are most concerned about the economic crisis increased 2% from April 27 to 43% of respondents.
“Not much has changed in the past month. America is still at home and still longing to get back out,” writes Li. “People are excited to get back to activities like dinner and a movie, or lunch and shopping at the mall,” he said.
When asked: “Which of the following food & drink places or activities are you most excited to get back to?” 45% selected “dining at my favorite sit-down restaurant,” and 42% selected “visiting recreational places” with 39% longing to “meet family and friends at restaurants.”
Going to coffee shops (20%) and drinking at bars (19%) ranked in the middle. Visiting nightclubs, concerts, and lounges appealed to only 10%. Visiting cafeterias (5%) was the least exciting activity.
Editor’s note: Unemployment increased to 14.7% in April, the highest since the Great Depression. New claims topped 26.5 million during the five weeks ending April. The proportion of employed working-age adults (51.3%) is the lowest on record. Datassential found that 16% of survey respondents are still going to school or working as usual, with 16% stuck at home due to layoffs and furloughs. An additional 33% of those taking part in the weekly survey are working or attending school remotely, with 35% not working overall.
Next episode: “What Consumers Want Right Now.”
EVENTS
Attend the SofaSummit on International Tea Day
Thursday, May 21, is International Tea Day, a global event declared by the United Nations that will, for the first time, be celebrated in every county. The U.N. organized the event to elevate tea by drawing attention to “the importance of tea for rural development and sustainable livelihoods, and to improve the tea value chain to contribute to the 2030 Agenda for Sustainable Development.”
To celebrate, the Tea & Herbal Association of Canada, in coordination with many prominent industry leaders, is hosting an all-day tribute May 21, beginning at 9 a.m. through 7 p.m. EST. The tea and chat will “circumnavigate the globe,” spanning 14 time zones with participants from 13 countries. Watch on YouTube live – no registration required.
*Corrected 9/13 to clarify this event was organized solely by the THAC.
Virtual Tea Tasting
The Ceylon Artisan Tea Association is hosting its third in a series of virtual tea tasting webinars. Amba Estate was featured on April 30. This week features Forest Hill Tea, which was recently profiled in Tea Journey magazine.
The Zoom event begins at 5.30 p.m. Wednesday, May 13 in Colombo Sri Lanka (India|Asia) | 8 a.m. EST (New York) | 1 p.m. (London) | 2 p.m. (EU) | 8 p.m. (Singapore and Hong Kong) | 9 p.m. (Japan and Korea)
If you miss the live event, recordings of these webinars are available for viewing at no charge.
Enhance your well-being with tea. Tea Journey is a bridge connecting those who craft handmade teas in 35 countries with the growing number of premium tea consumers globally. Tea Journey educates readers not only in the selection and preparation of healthy whole leaf tea but also in the manufacture of authentic teaware and utensils designed to enhance the tea experience.
