• | Over the Cliff | Elemental Exam

    Tea Industry News for the week of July 27

    • Over the Cliff
    • World Tea Expo Goes Virtual
    • Made in America
    • DMCC Expansion Plans
    • Measuring Elements in Tea
    Historic contraction follows 23 quarters of economic growth as high unemployment and rising infections make a long recovery likely.

    Over the Cliff

    Few tea ventures deployed parachutes capable of breaking the fall as the world’s economies catapulted over the second quarter cliff.

    The result is the permanent closure of hundreds of high-profile tea locations in malls and tourist destinations as well as beloved Mainstreet independents like the 10-year-old Wenham Tea House in Massachusetts and 27-year-old Lucy’s Coffee & Tea in Birmingham, Ala.

    The Samovar Tea Lounge’s three San Francisco locations are “hibernating” for an unspecified time and the Floating Mountain Tea House will relocate from New York’s upper west side to Croton-on-Hudson upstate. Restaurants that featured fine tea, including Augustine in New York’s Beekman hotel, Vaucluse on Park Avenue and “even the glitzy McDonald’s flagship store off Times Square closed,” according to a list maintained by Eater New York. In July DAVIDsTEA permanently shuttered 213 locations including 42 in the U.S. leaving only 18 in Canada.

    The U.S. experienced a record 9.5% drop in economic output, that if left unchecked before the year ends could lead to an unprecedented 32.9% annualized decline in GDP. Europe experienced a 12.1% decline, its worst contraction on record. Canada, which has suffered many fewer infections and COVID-19 deaths than the EU and US, estimates its economic activity will decline 12%, according to Statistics Canada. Retail sales in all the Western countries signal a deep recession with several segments, including food service, plummeting from the end of March and continuing their decline through April. Retail rallies began in May except in the U.S. where a new surge of infections led to a loss of steam by July.

    The descent was especially rapid and painful in the U.S. It is difficult to get precise numbers on sales of tea in retail channels. Grocery sales figures are generally good as millions of customers that purchased tea at restaurants and cafes now brew at home. Online sales spiked last spring but are flattening. The tea shop category mirrors the fate that has befallen small independently owned cafes and bars with some segments such as Sunday afternoon tea in tony hotels and at cozy Victorian tearooms located in southern tourist towns virtually annihilated.

    “Afternoon tea was devastated in the U.S. in particular—most of those businesses didn’t have a way to pivot online or offer tea-to-go,” writes Abraham Rowe, founder of Sinensis Research in Washington, D.C. Rowe observes that online sales proved to be a lifesaver, “people were loyal to some local shops, and are now shopping online from them.”

    “Store closures are down a bit—I don’t have final figures, but hope to run another survey sometime to finalize it,” said Rowe.

    As brick and mortar sales at tea merchants slipped over the precipice, online sales increased but not uniformly. An updraft enabled Amazon to glide to the bottom with a year-over-year increase of 34% in tea sales, totaling $29 million for the 52 weeks ending in May, according to Hinge Global. Walmart generated an unexpected $4 billion during the first quarter, up 4% over the same period compared to the previous year. The company announced it intends to become a “omnichannel” business. During the past year Walmart consolidated its online and physical store operations and is focused on expanding e-commerce rather than building new stores.

    Amazon and Walmart are the exceptions amid a pandemic that devastated the retail sector. While customers ordered groceries online and had food delivered, very few tea ventures had time to deploy a Plan B. DAVIDsTEA, headquartered in Montreal, Canada, in March closed 231 locations eliminating $12.1 million in second quarter sales. Sales for the three months ended May 2 declined 27.3% to $32.2 million. Wholesale and online revenue climbed $9.3 million to $17.0 million. Online sales reflect the trend identified by Rowe at Sinensis Research: specialty tea buyers online remain loyal to their local tea shop whether in a mall or downtown.

    “Sales in grocery stores and pharmacies across Canada continues solid growth,” according to Frank Zitella, who is both CFO and COO at DAVIDsTEA. He wrote in a July 31 earnings report that “with first quarter sales growth of over 120% year-over-year, we are extremely pleased that our loyal tea-loving customers have shifted to buying our teas online, and in supermarkets and drugstores. The strong performance of these sales channels provided us with the confidence that we are on the right path for the future.”

    See: DAVIDsTEA Reorganizes for additional detail.

    Calls to wholesalers confirm that while online sales have eased the painful loss of tea house closures, declining monthly orders from restaurants and hotels resulted in orders that are no where near pre-pandemic norms. The collapse of restaurant dining, which accounts for 20% of tea sales globally, is the biggest cause. Some 2.2 million restaurants worldwide are not expected to survive through 2020. Closings have a greater impact on coffee sales in the U.S. but in tea drinking nations like the UK and Russia the shift from away-from-home to at-home preparation has been significant.

    McKinsey Small Business Forecast

    “In a muted recovery, it could take more than five years for the most affected sectors to get back to 2019-level contributions to GDP,” according to McKinsey & Company. Small businesses, which are hard hit due to lower margins and limited reserves, constitute 68% of the food services and accommodations sector and are not expected to recover before the first quarter 2024 stretching into 2025. Arts, entertainment and recreation sectors will take even longer, according to U.S. Small Business Recovery After the COVID-19 Crisis.

    “After the 2008 recession, larger companies recovered to their pre-crisis contribution to GDP in an average of four years, while smaller ones took an average of six,” writes McKinsey Global Institute.

    “Improving operations and adapting business models can help small businesses in many industries recover,” observes McKinsey, but muted demand, operational challenges due to health and safety restrictions and new customer expectations all take time: “Finding the cash to do so may be a stretch.”

    Working capital is often tied up in inventory and small businesses have added cost servicing their debt. A McKinsey survey of 1000 small firms finds the cost of servicing debt averages 30% of revenue. The shift to off-premise delivery and carryout “is likely to erode profitability and increase packaging costs and hinder their ability to sell high-margin items.” McKinsey found that nearly 40% of small businesses in the restaurant sector operate at a loss or break-even.

    Solutions suggested in the report involve technology and marketing.

    “Independent restaurants might digitize their businesses by using aggregators to increase their visibility, reach potential diners, and outsource their delivery,” write McKinsey authors Andre Dua, Deepa Mahajan, Lucienne Oyer and Sree Ramaswamy.

    “Aggregators might help by offering additional on-boarding support or spotlighting small, independent restaurants on their platforms. Some combination of public and private aid may also be necessary for small restaurants, especially offering technical and financial support they’ll need to compete with larger ones that can build contact-less solutions at scale,” according to the report.

    “The crisis has exposed financial frailties that have built over time, and the next normal could impose additional burdens,” according to the authors, who add, “The survival of US small businesses across the economy will require new business models and technology solutions that few have the resources to finance.”

    World Tea Hosts Virtual Summit

    Organizers of the World Tea Expo this week announced a virtual summit scheduled for the second week of October.

    The World Tea Conference + Expo was postponed from June 14-16 to October. It was later canceled due to restrictions on events drawing large crowds to the Colorado Convention Center, in Denver Colo.

    The World Tea Virtual Summit + Resources is scheduled for October 12-14.

    “The virtual summit will introduce online networking and lead generation,” according to Questex, organizers of the event. Guests include Sebastian Michaelis, head of tea at Tata Global Beverages; Peter Goggi, president of the Tea Association of the USA, and Tony Tellin, co-founder of A. Tellin Co.

    The agenda of three half days offers an opportunity to “learn from peers, share ideas, network virtually and safely, and support one another as we continue the shared journey through COVID.”

    The next live, in-person event is scheduled for July 14-16, 2021.

    Learn more: World Tea Conference + Expo

    Made in America

    Great quantities of tea are blended in America but according to the Made in America Act, a product manufactured in the US that claims to be American made, must contain at least 50% US ingredients.

    A Lexology post this week discusses a class action suit “that calls out Bigelow Tea for pushing unpatriotic tea.”

    The post summarizes a report by Linda Goldstein and Amy Ralph Mudge with the Washington D.C. based law firm Baker & Hostetler.

    The complaint, filed in California’s Central District Court, by Kimberly Banks and Carol Cantwell, alleges that by promoting their tea as “Manufactured in the USA 100% American family owned” and “America’s classic” Bigelow violates provisions of the California Consumer Legal Remedies Act, False Advertising Law, Unfair Competition Law, and Breach of Express and Implied Warranty.

    Plaintiffs allege themselves and other consumers, “purchased the Bigelow Tea products because they reasonably believed, based on the packaging and advertising, that these products are American-made. However, the products are comprised solely of foreign-sourced and processed tea.”

    Had plaintiffs known the truth “they would have paid less for them or they would not have purchased them at all,” reads the complaint.

    Bigelow Tea responded Friday with the following statement: “Bigelow unequivocally disputes the allegations in this California based lawsuit.”

    “Every box with our statement of being “Manufactured in the USA” refers to the fact these teas are produced and distributed by one of our three Bigelow owned and operated manufacturing facilities, located in Connecticut, Kentucky, and Idaho.  In addition, our packaging clearly states that our teas are “Blended and Packaged in the USA”.  Bigelow continues to be open and transparent about our global sourcing of ingredients (many of which come from the United States) on both our website and the packaging of select varieties of our teas.”

    “Frivolous lawsuits such as these are designed to purposefully damage the reputation and finances of the companies they target. Bigelow Tea is proud to be a 100% American family owned and operated manufacturing company and we are prepared to vigorously defend ourselves against this meritless lawsuit,” writes Bigelow.

    While Bigelow owns the largest US tea farm, The Charleston Tea Garden, located in Charleston, South Carolina, the tea garden markets its tea under its own brand. The plantation website makes it clear that “Bigelow Teas are not made from any of the tea leaves grown or harvested here at the Charleston Tea Garden. Charleston Tea Garden teas are the only teas made from the tea leaves produced by the Camellia Sinensis plants grown in the fields of the Charleston Tea Garden.”

    DMCC Expansion Plans

    UAE Prime Minister and Ruler of Dubai Sheikh Mohammed tours DMCC’s tea and coffee centers. Photo courtesy DMCC.

    Fifteen years ago, Ahmed Bin Sulayem, executive chairman and chief executive officer of Dubai’s Multi Commodity Centre (DMCC) envisioned a tea trading hub that would service the world’s largest growing regions.

    Today DMCC processes 48,000 metric tons of tea annually, accounting for 60% of global re-exports. The facility has processed 320 million kilos since its inception. The modern port facilities and airfreight capability attracted 800 new companies during the first half of 2020, said Bin Sulayem, adding that the months of May and June saw a “noticeable uptick despite an overall softer business climate.”

    The tea center and atmospheric-controlled warehouse, which stores 5,000 metric tons, has a turnover of $184 million annually.

    Commodity teas from 13 origins are blended for consistency and these blends, are often mixed to make herbal, floral inclusions sold as some of the world’s most popular teas. Examples include Earl Grey and the many breakfast blends distinct to markets in Ireland, Scotland, and England. Classic brands processed include Lipton and Red Rose as well as local blenders such as Tea Trading International DMCC, a Dubai-based British SME that markets brands Vertea and The Leaf to food-service catering, hotel, and resort customers.

    DMCC’s tea and its new coffee center drew the attention recently of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, during a visit reported by Gulf Today.

    “Under the guidance of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, DMCC is fast becoming the global hub for the tea and coffee industry. Our ambitious plans to triple our capacity in the near future are strategically anchored in Dubai’s drive and ability to facilitate world trade,” said Bin Sulayem.

    In a release by Arjun Katyal, of McLeod Russel Middle East DMCC, said, “The DMCC’s expansion plans are incredibly exciting, and represent a huge boost to Dubai’s status as a leading global trade hub. We have been a DMCC Tea Centre member since 2011, and have seen, first-hand, the expertise, experience and vision that has shaped the success of this facility. McLeod Russel Middle East DMCC has its sights set on continued growth, and we will continue to engage new markets and reach a wider customer base than ever before. The DMCC Tea Centre has an important role to play in our success story, and we congratulate them on their latest announcement.”

    Since 2005 DMCC has become one of the fastest growing free zones in the world with more than 17,000 companies conducting business in a number of sectors including precious metals, tea and coffee, and food commodities. Establishments and individuals operating in DMCC are exempt from all taxes including income tax, for a period of 50 years.

    Testing tea for trace elements

    Measuring Elements in Tea

    Minerals are essential to the heath of tea plants and for tea drinkers to experience the full range of tea flavor, but too much of even the best of things in life can create problems.

    Researchers Dr. Ying Guo, Dr. Seungjin Lee, and Dr. Tae Lee at Georgia Gwinnett College are currently engaged in testing five commonly available tea brands using a handheld Laser Induced Breakdown Spectroscopy (LIBS) unit manufactured by SciAps. The Z-300 analyzer detects very low concentrations of mineral and potentially harmful heavy elements.

    The team, whose lab work is temporarily suspended during the pandemic, detected all of the following minerals and alkali metals (Cs, K, Li, Na) in five popular tea brands. The three most common minerals were carbon, calcium, and magnesium in all five samples. Several heavy metals were also present in all five samples including Cd and Cr which are toxic in very low concentrations.

    “(Before the shutdown), we obtained the spectra of tea samples and were able to qualitatively determine the elements present,” Guo says. The next step will be to calibrate and complete the quantitative analysis, she says.

    ElementDaily Intake Thresholds
    Al (Aluminum)0.10–0.12 mg Al/kg/day for adult
    C (Carbon)None
    Ca (Calcium)1300 mg/day [harmful > 1500 mg/day]
    Cd (Cadmium)FAO/WHO rules limit Cd to 0.2 mg/kg
    Cr (Chromium)120 µg/day [harmful > 200 µg/dan
    K (Potassium)4700 mg/day [harm depends on weight]*
    Li (Lithium)Lithium toxicity level is 1.5 mEq/L
    Mg (Magnesium)320-420 mg/day (varies with age)
    Na (Sodium)Less than 2300 mg/day
    P (Phosphorus)1000 mg/day [harmful > 250 mg]
    Si (Silicon)Elemental silicon is an inert material
    Source: US FDA and National Institute of Health

    Researchers pelletized tea grains from each brand and measured the intensities of emission spectra at different wavelengths to determine the presence of elements of interest in the samples. Results were validated by inductively coupled plasma mass spectroscopy.

    Analyzer manufacturer SciAps notes that “minerals play an important role in maintaining the human body. For example, Ca helps with the functions of muscle contraction, enzyme activity, healthy bones and teeth, blood clotting, transmission of nerve impulses, and regulating heartbeat. K can help reduce risks for certain diseases such as stroke, kidney stones, and hypertension. Even though those are beneficial elements to the human body, there is still a suggested daily intake limit.”

    Dr. Ying Guo

    The article states that “additionally, tea may be contaminated by heavy metals, “either as a result of uptake from soil or from atmospheric dispersion due to vehicular or human activities,” according to Guo. This is what led them to investigate the levels of both the beneficial minerals

    (e.g., potassium and calcium) and unwanted contaminant elements (e.g., cadmium and chromium) present in different tea brands. Heavy metals can be highly toxic even at a very low concentration. LIBS was able to detect the presence of these metals in all five samples.

    The following table lists the quantities of each element by relative abundance for each tea brand.

    Table courtesy Dr. Ying Guo, Georgia Gwinnett College

    The research has not been published, but once reviewed, “By comparing with recommended daily intake limits and reference dose, we’ll be able to provide insights on daily consumption limits of tea in order to avoid too much intake of toxic elements,” says Guo.

    [Editor’s Note: Tea Biz will follow up once the research is published]

    Reversal Forces New Lockdowns

    After flattening the COVID curve in April and May it began sloping upward in June in the U.S. while Europe continued to suppress spread of the coronavirus. July has since become the worst month on record for COVID spread with 1.9 million new infections and 1,000 deaths per day, bringing the U.S. total to 4.5 million who have tested positive. The virus is now present in populations young and old in every state with infections rising in more than half the U.S. states. Globally there are more than 18 million cases with deaths approaching 700,000. About 6% of those who have tested positive perished. On a hopeful note, 94% (11 million) have recovered. The U.S. continues to lead country totals but Brazil (2.7 million) and India (1.8 million) are hot spots. The UK, Spain, Peru and Chile experienced death rates greater than 500 per 1 million population. More than 250,000 have died with a high of 6,900 per day in April that dipped for about a month before moving seven-day average of 5,600 globally in July.

    Subscribe to receive Tea Biz weekly in your inbox.

    •

    Dan Bolton

    •

    ,

  • Drink Plants | Enshi Floods

    Tea Industry News for the week of July 20

    • Drink Plants
    • Tea Outlook Promising
    • New Teatulia Tea CEO
    • Enshi Floods
    • Bigelow Wellness
    An all-plant tea assortment of green and black tea, floral, fruit, and berry botanicals.

    Drink Plants

    “Consumers across all generations are re-shaping the landscape for beverage product development,” according to a Cargill Insights Report titled Blending, Brewing, and Blurring the Lines… Creating a New Breed of Beverages.

    “Traditional beverage categorizations are losing relevance, which is blurring the lines of classic categories and creating opportunities—especially for coffee and tea manufacturers—to meet these demands at the expense of soft drinks,” Cargill writes.

    Tea is the go-to beverage in the nonalcoholic market which is estimated at $854 billion globally. Euromonitor estimates the value of RTD (ready-to-drink) tea at $67 billion globally.

    “Beverages that are inherently functional have seen growing momentum, which has paved the way for new beverage products touting specific health benefits, according to The Hartman Group’s report, “Modern Beverage Culture.” Consumers are increasingly conscious of beverage calories, and they now want a drink to do more—such as provide energy, added protein, or provide other nutritional benefits,” according to the Insights Report.

    “Millennials are the poster children of this new beverage era. Their demands and aspirations are driving much of this emerging beverage culture,” according to The Hartman Group. A consumer survey by Hartman reveals “nearly three in four millennials (73%) always have a beverage on hand, compared to Gen Xers (63%) and Boomer (58%).”

    Cargill Report: Note the desire for more tea (22%)

    “Millennials say that beverages play an important role in their health and wellness and that they like beverages to do something — such as provide energy or nutrients,” according to Cargill. “The win-win may be to address consumers’ changing and variable aspirations for beverage consumption with new drinks that mix both function and fun (think tea-beer combos or hard kombucha). These products will likely see a growing appeal, especially among younger consumers,” according to Cargill.

    “More than half of consumers are now using products made with plant-based ingredients, and this trend is only going to increase,” according to Cargill. “Powerhouse beverage categories like coffee and tea are leading the way by working to provide new consumption options while addressing health and wellness trends. Coffee and tea have existing health halos; they have been able to capitalize on this to support the creation of healthier energy drinks, while also serving as a better-for-you flavoring or mixer in high-end cocktails.”

    Tea on Trend

    Non-alcoholic beverages will generate $10 billion more in sales this year, reaching $160 billion, according to market research contained in The U.S. Beverage Market Outlook 2020.

    Proprietory surveys by Packaged Facts show significant changes in retail channel trends and consumer motivations across eight retail channels.

    “Despite the economic impact of the coronavirus pandemic, large segments of the U.S. food and beverage industry have managed to balance losses in the foodservice sector with gains on the retail side as consumers even now continue to shift their food and beverage spending from restaurants to stocking groceries at home,” according to Packaged Facts.

    “We predict sales will spike in 2020 due to the impact of the coronavirus but will likely decline in 2021 as demand reverts back to more normal levels before returning to typical growth patterns from 2022 to 2024,” says Jennifer Mapes-Christ, food industry publisher for Packaged Facts. The study predicts US nonalcoholic beverage sales of $170 billion in 2024.

    Plant-Based Beverages are Trending

    Plant-based beverages are a hot trend in the market as consumers increasingly integrate plant-based foods and drinks into their diets, according to Packaged Facts.

    What’s driving new interest in the segment:

    ? consumer demand for healthier, natural products

    ? consumer demand for more and better protein sources

    ? the consumer perception that plant-based food is more environmentally sustainable

    ? the increasing number of people who identify as flexitarians, consuming more vegetarian or vegan meals but not exclusively eating that way

    The report also cites the popularity of functional and wellness beverages, specifically tea.

    “As with all food categories, consumers are demanding more from beverages. Beyond reduced sugar and cleaner labels, people want drinks to make them feel better, stay healthier, and perform at higher levels. The coronavirus pandemic has further elevated people’s desire for products that help keep them healthy. Immunity-boosting products and ingredients had been trending over the last several years already and have been jumping off the shelves as people look to stay healthy amidst the coronavirus pandemic,” according to the report.

    “Turmeric has been perhaps the hottest ingredient to boost immunity and is a cornerstone of many new products, along with ingredients such as ginger and Echinacea. Beyond these, marketers continue to enhance drink functionality with ingredients such as antioxidants, adaptogens, vitamins, probiotics, Coenzyme Q10, and BCAAs (branched-chain amino acids),” according to the report.

    Click here to obtain a copy.

    Teatulia Names New CEO

    Co-founder Linda Appel Lipsius is stepping down as CEO of Teatulia Organic Teas. COO Tim Bradley will take her place.

    Denver-based Teatulia, founded in 2006, partners with growers in Bangladesh to supply organic teas and herbs used in making a range of hot teas, iced teas, and canned teas, including a newly introduced sparkling soda sold in foodservice and grocery.

    The company also operates the Teatulia Tea & Coffee Bar next to its Denver, Colo., headquarters.

    “Lipsius has built a universally-respected brand known for doing things better: From the 3,000-acre regenerative garden itself to Teatulia’s stunningly sustainable packaging to the long list of awards Teatulia has received for quality and using business as a force for good,” according to the company.

    Bradley previously worked 10 years as COO at Open Road Snacks in Centennial, Colo. He joined Teatulia in July 2017. A former consultant, he is endorsed for his work in sales and marketing and brand management.

    “We are grateful beyond words for her contributions over her many years at the helm, and excited to foster the mission and continue the growth Linda nurtured as founder and CEO,” writes Bradley.

    “Linda and I have worked together for the last three years to create a team that is truly positioned to take this company to new heights,” he said.

    Lipsius credited “a mighty team of the most passionate, creative, tenacious and intelligent individuals I have ever known” for the company’s success during her tenture, as well as “my most extraordinary partners throughout the journey – Kazi Anis Ahmed, Kazi Inam Ahmed, and Kazi Nabil Ahmed MP.”

    Submerged street buses in Enshi, China. Massive flooding eases Chinese drought.

    Too Much Rain Relief

    The tea-growing region drained by the Lancang (Mekong) River is humid, with annual rainfall greater than 800 millimeters annually, yet a 10-year drought persists. Last year the region received 888.4 millimeters of rainfall according to meteorologists, but 180 reservoirs remain bone dry and 100 rivers ceased flowing as of April 15, according to the Yunnan Water Resource Department.

    Near constant rainfall since the beginning of the month promises relief but at a high cost. On July 3 Kunming was drenched, leading to several deaths, and the displacement of thousands as well as significant crop loss along the Baishui river (which rose 27-feet overnight).

    Enshi, the center of tea production in Hubei Province, has seen the worst flooding in decades with 10,000 along the Yangtze River trapped in their homes. Damage is estimated at $11.5 billion with 28,000 homes lost. The water level at the Three Gorges Dam, the world’s largest hydroelectric facility, is 50 feet above its flood-limit level with inflows of 61 million liters a second, according to the Xinhua News Agency.

    Yunnan, which is home to 46 million people, sits on a rugged mountainous plateau sloping from the northern highlands south. During the period 1950 to 2012, the Province, experienced 59 drought years, half considered severe.

    Droughts have occurred more frequently in recent years, a condition attributed to global climate change. More than 80% of Yunnan’s rainfall now occurs during the period of May through October. Winters are dry and getting warmer. There is insufficient capacity in reservoirs to supply agricultural needs during periods of unusually high temperatures. The drought, which began in June 2019 resulted in shortages of drinking water in Menghai County and lowered yields of Pu’er by a third according to some growers.

    In past years the north and eastern sections of the province were more susceptible to dry weather. Now the tea-rich hills in the southwest are hardest hit. Annual precipitation in the Lancang River basin in 2019 was 680.4 mm, according to the China Meteorological Agency. The total is about 25% less than its long-term average, according to a report by CGTN.

    A studio published in the journal Ambio reveals that during the period 1978-1996, cultivated land increased 6.1% (167,400 hectares) in Yunnan. A report describing the impact of droughts on reservoirs and streamflow found the frequency of severe and exceptional droughts in the Lancang-Mekong River Basin has increased over the past 119 years, and all countries in the upstream and downstream of the basin have been severely affected. 

    As the downpour continues, Song Lianchun, director of China’s National Climate Center, told reporters that the number of days of heavy rain in China has risen by roughly 4% each decade over the past six decades.

    New line of cold water infused botanicals from the Bigelow Tea Company

    Bigelow Botanicals

    Bigelow Tea® has introduced a new line of cold water infused botanicals. Bigelow Botanicals™ Cold Water Infusions use real fruit and herbal combinations to inspire everyone to stay healthy and hydrated throughout the day, according to the company. The infusions are a “healthy alternative to sugary drinks, are zero-calorie, caffeine-free, and contain no artificial anything.”

    Easily infused by the glass or on-the-go, tea drinkers simply place a tea bag in cold water for a few minutes, squeeze the bag and stir, or leave in for more flavor.

    Bigelow Tea uses only high-quality ingredients and has specially curated the following botanical infusions that slowly come alive once cold water is added. Flavors include:

    • Watermelon Cucumber Mint
    • Blackberry Raspberry Hibiscus
    • Cranberry Lime Honeysuckle
    • Blueberry Citrus Basil
    • Strawberry Lemon Orange Blossom

    To ensure each cold-water infusion makes a positive impact on the environment Bigelow uses minimal packaging and no plastic bottles (waste reduction is a top priority at this certified B Corporation). The overwrap used to hold each bag works to keep each flavor fresh until sipped by the glass or used with reusable water bottles for the on-the-go consumer.

    Cindi Bigelow, third-generation president & CEO writes that “With today’s growing awareness and need to live a healthy lifestyle, we created these beautiful cold water infusion blends to support your wellness choices.”

    “It’s truly unlike anything else and really does help you to drink more water throughout the day,” writes Bigelow. The range is gluten-free and non-GMO. The botanicals are sold in boxes of 18 individually-wrapped bags at a suggested retail price of $3.99, about 22-cents per serving.

    Learn more at www.bigelowtea.com.

    •

    Dan Bolton

    •

    ,

  • Europe’s invigorated speciality tea proponent

    The European Speciality Tea Association casts aside the aura of elitist tea in favor of inclusion. Learn why during a webinar July 8 at 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.

    Click here to register for the July 8 webinar

    David Veal

    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.

    www.specialityteaeurope.com
    [email protected]
    +44 (0) 1244 515610

    •

    Dan Bolton

    •

    ,

  • Need to Know | Changing Consumer Behavior

    Tea industry news for the week of April 20

    • Monitoring Consumer Behavior
    • Record Prices at Colombo’s Digital Auction
    • Kenya May Ban Direct Tea Sales
    • Physical Distancing on 1,500 Acres in Assam
    • Private Investors Back Millennia Flash-Frozen Tea

    Monitoring Consumer Behavior

    Datassential surveys consumers weekly and hosts a Friday webinar Food + Coronavirus to share what they have learned about fast-changing consumer behavior. The presentations are free. Mark DiDomenico is director of consumer solutions at Datassential. He told participants during a webinar hosted by the National Coffee Association last week that American consumers at this point are more worried about their health than wealth (health concerns peaked at 67% April 1 and remained at 61% the week of April 8). Respondents (64%) consistently say they will “definitely avoid” eating out.

    When asked “since the onset of social distancing, where have you cut back on spending?” eating at restaurants topped the list at 57%.

    “Consumers are avoiding risk but also seeking ways to adjust,” said DiDomenico, who cited examples such as cooking from scratch (42% say they do this more often), eating comfort foods (+33%), stress eating (+24%), and drinking alcohol more often at home (+14%). Moving forward? “Consumers are likely to avoid buffets and salad bars. Half say they will order for delivery (and disinfect delivery packaging), he said. Shopping for food online (+22%) is a new behavior that is very likely to stick, he said.

    Global Impact

    David Parnham, Research Director at Café Culture in Australia, recently completed a report on the immediate impact of lockdowns. The impact is sobering. While Australians were not strictly confined to their homes (New Zealand is in lockdown), a survey of cafe owners found that 19% experienced a 70-90% decline in sales, with an additional 19% reporting declines of 50-70% and 29% reporting declines of 20-50% in sales. Café Culture Managing Director Sean Edwards posted several helpful suggestions from café owners for “Staying Afloat in Tough Times.”

    Business News

    Sri Lanka is embracing a digital future for the Colombo Tea Auction according to Sri Lanka Tea Board Chairman Jayampathy Molligoda. The country’s first three electronic auctions in April resulted in sales of 16.5 million kilos of tea. Efforts to switch from outcry to electronic bidding span 20 years, according to Jayantha Karunaratne, chairman of the Colombo Tea Traders’ Association. “Changing the mindset of some players is not an easy task, said Karunaratne, adding, “Our vision is to go online because it provides advantages such as lower cost, greater efficiency, and more transparency.”

    As soon as the auction opened demand from Russia, Turkey, and the Middle East drove record prices. An Uvakellie from Vellapatna Estate, owned by Madulsima Plantations, sold for SLRs810 ($4.21) per kilo and a Uva High from Finlays Oodoowerre Estate sold for SLRs980 ($5.10) a kilo, a record for FBOPF1 grade tea at auction. Akbar Brothers purchased the lot. Dickwella Estate then broke the SLRs980 mark at SLRs1000 ($5.20) per kilo for an FBOPF1 bought by Ceylon Tea Marketing.

    “The response from industry stakeholders has been fantastic. The Sri Lankan tea industry has once again proven its resilience to upheavals,” said Dhammike Wedande, senior vice president of Asia Siyaka Commodities, a leading tea broker.

    Direct Trade Ban
    Kenya’s Ministry of Agriculture intends to ban direct tea sales. New regulations state that “henceforth, sale by private treaty (direct sales overseas) is outlawed,” forcing growers to sell exclusively through the auction process.

    The new regulations raised concerns voiced by the East African Tea Trade Association (EATTA), which manages auction and direct tea sales in Mombasa.

    “Exporters who have long-term contracts with international buyers might have to review those contracts, and we don’t know how this is going to affect the market,” EATTA Managing Director Edward Mudibo told Business Daily.

    The Tea Auction in Mombasa, the world’s largest by volume, is experiencing difficulties associated with the spread of the coronavirus and was relocated to a hotel.

    The entire auction system is “dysfunctional,” according to small growers who appealed to Kenya’s President Uhuru Kenyatta to intervene to curb predatory behavior amid falling prices. Reformers agree and hope to automate bidding.

    Kenyatta’s reforms, announced last week by Agriculture Cabinet Secretary Peter Munya, require the Kenya Tea Development Agency to pay 50% of the price of monthly deliveries. The remainder is to be paid as an annual bonus. In the past, KTDA factories paid farmers KS14-16 per kilo. Buyers will now pay 10% down with the balance due before export. Factories must pay farmers within 30 days after receiving auction proceeds. Also, brokers representing factories will be limited in the number they represent (no more than 15 factories in the current proposal).

    Physical Distancing on 1,500 Acres

    India reported more than 1,500 new COVID-19 cases in the 24 hours ending Monday, April 20, bringing the national total to 17,656 confirmed cases with 559 deaths. There is no indication of a “flattening curve” with the contagion likely to peak in four to six weeks. West Bengal, which includes the fabled Darjeeling growing region, has 339 reported cases with 12 deaths. Assam reports 35 cases with one death.

    Samar Jyoti Chaliha, who manages the Dikom Tea Estate near Dibrugarh in Assam, harvested only 17,000 kilos of tea in March due to government-ordered lockdowns. Usually, the garden produces 40,000 kilos of first flush tea. The early harvest typically yields 70,000 kilos, “but this year, I may be able to make a max of 45,000 to 50,000 kilos,” said Chaliha. The workforce is a concern. “I am limited to 50% of peak season’s employment (3,800 workers),” he said. Chaliha is currently paying 1,800 workers, but few are plucking tea. “Overgrown bushes take a lot of time. Right now, it is more slashing/skiffing and hand breaking overgrown leaves and branches which are tossed to the ground. We cannot make tea out of this stuff,” he said.

    Restoring the bushes should be complete by April 23 or 24. It will then take another 15 days to come up with succulent leaves, which brings us to the beginning of the second flush, he explained. A typical second flush yields approximately 260,000 kilos (2.6 lakhs) during May and June.

    “I don’t know how the bushes will behave after skiffing at this time of year (pruning is normally done in winter when the plants are dormant). Dikom produced an average of almost 3,000 kilos per hectare last year, a highly productive yield. “If all goes well, the second flush should be fine,” he said.

    The garden currently has 1,500 acres (635 hectares) under tea. Given the vast area, instead of limiting the number of workers to one per acre, when they are most needed, consideration should have been given to simply assigning smaller numbers of workers within each block (say 100 vs. 200). Growers could assign 100 masked pluckers to each of two widely separated sections and maintain safe distancing of 10 feet between pluckers. Even with 3,800 workers in the field at the same time, in most of Assam’s licensed tea gardens, there would only be two workers per acre. “Apparently, no one took this up with the government,” he said.

    Production News

    India will take additional steps to spot-check tea to ensure it complies with the Food Safety and Standards Authority of India (FSSAI ) norms. Random checks should result in higher prices a necessity given the lower volumes at auction. “Tea failing to adhere to the FSSAI parameters may not be allowed to be offered in the auctions depending on the extent of the violations by the producers,” according to the circular issued to planters. Tea Board Deputy Chairman Arun Kumar Ray told the Deccan Herald, “right now, the priority is to comply with the health safety norms and hygienic practices in tea gardens to combat the COVID-19 crisis.”

    In Sri Lanka, February Yield Marks Decade Low

    Sri Lanka harvested only 17.9 million kilos of tea in February, down 3.8 million kilos from February 2019. High grown and medium grown tea showed marginal gains, but tea from the lowest elevations declined 28.3% due to drought. Forbes and Walker Tea Brokers report the first two months of 2020 yielded only 39.8 million kilos, down 5.1 million kilos compared to the first two months of 2019.

    Health News
    Sri Lanka is promoting black tea as an immunity booster with the slogan: “Double Your Protection” The campaign online and in print states that “Black tea is not only delicious but packed with immune-boosting theaflavin antioxidants. Enjoy 3 to 4 cups daily, and be protected both inside and out.”

    The Times of India reports that the Indian Council of Medical Research (ICMR) will study the antiviral properties of theaflavin-3, a compound found in black tea. The United Planters’ Association of South India (UPASI) circulated a press release citing work by researchers in Taiwan and China, suggesting replication of SARS CoV-2 is inhibited by polyphenols commonly found in tea. These include Theaflavin-1, Theaflavin-2, and Theaflavin-3, all of which are abundant in black tea.

    The European Journal of Preventative Cardiology reports fewer heart attacks and a lower risk of dying of heart disease among tea drinkers participating in a Chinese study of 100,000 adults over seven years. Those who consumed three or more cups of tea per week had a 20% lower risk of heart attack or related cardiac incidents and a 22% lower risk of dying of heart disease.

    Retail News

    Millennia Tea, a Canada-based supplier of flash-frozen tea leaves, closed its first private funding round at $500,000+. The pioneering brand, based in Saint John, processes tea much like leafy produce at origin where it is washed and frozen to preserve antioxidants destroyed during the drying process.

    Tea cubes
    Millennia also markets cubes of fresh tea leaves

    Shelly King, CEO of Natural Products Canada, a key investor and strategic advisor, told Huddle that “today’s health-conscious consumer has embraced ‘food as medicine’ and is looking for ways to optimize the nutritional value of their everyday pleasures like a simple cup of tea.”

    “Millennia TEA has a category-changing product that ticks all the boxes for today’s consumer,” said King.

    Upcoming Events
    The United Nations has designated May 21 as International Tea Day to raise awareness of the need for sustainable production and to honor those working to supply the world with tea. The British have a reputation for never enough when it comes to tea, so they also celebrate National Tea Day (Tuesday, April 21). The Sun once again published a chart of tea in 16 shades from red amber to milky white. The article always leads to squabbles over exactly how much is too much dairy. Historian Seren Charrington-Hollins explains why milk is added last:

    “One of the fiercest topics is whether to put the milk in the cup before or after the tea. In the early days of British tea-drinking, when the china we had was of such poor quality that it would crack under the heat of boiling water, milk was always put in first to cool the tea.

    “But in the 18th century better china started to arrive and those who could afford it switched to putting milk in after the water, as a social signifier. Continuing to put milk in first was associated with the lower classes.

    “Tea tastes better if you put the milk in after the hot water because you avoid scalding the milk. You also maintain the perfect temperature for brewing, which is 95C,” advises Charrington-Hollins.

    •

    Dan Bolton

    •

    ,

  • Green Tea May Protect Prostate — Need to Know

    What tea professionals need to start the week of June 30, 2014 —

    Tea garden workers in India abandoned by estate management are starving… Green tea appears to protect the prostate… crafty artists are making ornate flowers out of intricately folded tea packets.

    Empowering Smallholders

    DARJEELING, West Bengal – Word this week of the starvation deaths of several tea workers at an abandoned tea garden was refuted by government officials who visited Raipur Tea Estate in Jalpaiguri district.

    Conflicting accounts and no formal autopsies leave the exact cause of death in question, but the incident has focused attention on the plight of up to 30,000 workers on 23 gardens abandoned in the past several years.

    Press reports, including the Times of India, last week described six deaths, including infants, but West Bengal Food and Supplies Minister Jyoti Priya Mallick, on Sunday toured the Raipur Tea Estate with North Bengal Development Minister Gautam Deb and said the deaths were due to disease and illness.

    Deb told the The Hindu “there have not been any starvation deaths in the tea garden. I have talked to the family members of six workers who recently died and they told me that they were suffering from illnesses such as tuberculosis and high blood sugar,” said Mallick.

    A physician on Saturday confirmed evidence of malnutrition at the garden where workers continue to pluck leaves without a wage.

    Like the  460 workers at Raipur there are thousands struggling toj survive on abandoned estates in West Bengal, Kerala and Assam. Tea plantations are mandated to provide shelter, medical care, food subsidies and a minimum wage but once abandoned the resources disappear.

    When a garden closes workers with skills operating a tea factory and those young enough to prune and pluck leaves simply move on leaving the weak and less skilled workers to fend for themselves. At Raipur workers continue to pluck leaves without drawing a wage to sell to bought leaf factories.

    On Sunday Mallick announced steps to improve the supply of subsidized rations to workers and awarded INRs 5000 ($83) to the families of the dead. A vigilance inspection was ordered at 20 other gardens, according to The Hindu.

    The distressed gardens failed during difficult financial times beginning in 2004, reopen periodically and fail.

    The government will also try to convince owners of the tea gardens to reopen them, according to Mallick but banks are unwilling to write off the millions in debts and new owners can bear to make good on bad loans and non-performing assets.

    The state of Kerala took a different approach, reopening many gardens that had failed mainly by permitting workers ownership. West Bengal had no such success.

    Kerala’s experience is powerful testimony to the important work of training smallholders to strike out on their own.

    LOGO_ETP Ethical Tea PartnershipLast week the Ethical Tea Partnership and IDH – the Sustainable Trade Initiative announced a very successful pilot program of outdoor classrooms that has trained 48,000 Kenyan smallholders to improve their agricultural skills and to process tea.

    ETP announced a coalition of major tea companies would expand the program to 200,000 smallholders in Africa and Asia’s tea growing countries within the next three years.

    ETP’s hands-on training in irrigation, composting, plant nutrition and protection from insects has increased yields by as much as a third. The Kenya Tea Development Agency (KTDA) supports the program through 1,600 Farmer Field Schools.

    LOGO_IDH The Sustainable Trade Initiative“Tea provides a livelihood for millions of people around the globe. These projects show that the industry is committed to helping smallholder farmers and workers earn a decent wage and farm better, and that it understands that this is fundamental to building secure supply chains and future success,” said ETP Executive Director Sarah Roberts.

    Targeted nations include Malawi, Uganda, Rwanda, Tanzania, India and Vietnam. The effort is funded by multi-nationals that include Unilever and Tata Global Beverage and Taylors of Harrogate producers of Yorkshire Tea.

    The Confederation of Indian Small Tea Growers Association (CISTA) is seeking assistance similar to Kenya and Sri Lanka to ensure better execution and monitoring of various tea production and promotional schemes. It will also help initiate a pilot program to develop an alternative market for small tea growers, according to The Hindu Business Line.

    This, in turn, will help small tea growers produce better quality green tea leaves and ultimately upgrade themselves from mere green leaf producers to made-tea producers, according to the CISTA release.

    In London delegates to the annual TEAm Up conference acknowledged it will take more than government programs to resolve key social and environmental issues affecting the sector. ETP and IDH, joint hosts of the event, updated producers, packers and retailers on the progress of their pioneering projects and explored how action to tackle them can secure supply chains and build brands’ reputation.

    “It is amazing to see how the tea industry is making serious efforts and investments to address difficult issues such as wages and smallholder inclusion,” said IDH Chief Executive Joost Oorthuizen. “These and other deeply rooted problems, that only a few years ago were ‘owned’ by civil society groups, are now high on the agenda of the international tea industry. We can use this positive energy by working together, and collaborating with retailers, government agencies and NGOs, who all have a part to play.”

    Learn more at: Ethical Tea Partnership

    Green Tea Protects Prostate

    The American Cancer Society projects that 233,000 men will be diagnosed with prostate cancer in 2014. It is the most prevalent type of cancer in men after skin cancer, affecting one in seven men in the course of their lives. Given tea’s reputation as a healthful beverage with powerful antioxidants, it is not surprising that researchers would be considering the potential impact of green tea on prostate cancer.

    A new report published by “Metabolomics”in May 2014 found that epigallocatechin-3-gallate (EGCG), a catechin in green tea, may affect the work of one of the enzymes that powers cancer metabolism.

    In many cancer types, the enzyme Lactate dehydrogenase A (LDHA) is present in elevated amounts. LDHA affects the way that the chemical compound pyruvate is processed. Pyruvate is produced in glycolysis and would typically continue to metabolize, giving the body’s cells energy. When cells lack the oxygen they need, pyruvate is instead converted to lactate because of the presence of the enzyme LDHA. Elevated LDHA keeps a process going that feeds the growth and survival of the tumor and also promotes the migration of the cancer cells throughout the body. It is suspected that if LDHA can be targeted, the growth of the cancer cells may be slowed. Researchers believe that treatments that impact LDHA may be important in future therapies.

    In this study, led by Qing-Yi Lu of the Department of Medicine at UCLA, EGCG reduced the production of lactate in human pancreatic adenocarcinoma cells (MIA PaCa-2), as well as other metabolic processes such as anaerobic glycolysis, consumption of glucose and the glycolytic rate. It was assessed that the treatment “significantly modifies the cancer metabolic phenotype.”

    The National Institute of Health reports being involved with five current trials related to prostate cancer and green tea extracts including studies on early stage prostate cancer, men having radical prostatectomies, and patients with low-risk cancers.

    Source: Metabolic consequences of LDHA inhibition by epigallocatechin gallate and oxamate in MIA PaCa-2 pancreatic cancer cells, Metabolomics, Lu, Qing-Yu; Lifeng Zhang, Jennifer K. Yee, Vay-Liang W. Go, and Wai-Nang Lee. Accepted for publication May 2014.

    Folded Flowers from Tea Bags

    Here is a clever challenge for crafty tea drinkers who like origami. This video shows how to fold square tea wrappers into pinwheel like flowers.

    TeaBagWrapperFolding Paper Printables shows you how to make a cute little paper star from just 8 tea bag sized bits of paper. Super easy and novel greeting card or gift wrap embellishment. Just download a beautiful tea bag design from http://paperprintables.com/ and get folding!

    Source: Scrap Books, Crafty Attic

    TeaBagWrapperFolding1

    Tea Biz serves a core audience of beverage professionals in the belief that insightful journalism informs business decision-making. Tea Biz reports what matters along the entire supply chain, emphasizing trustworthy sources and sound market research while discarding fluff and ignoring puffery.

    Tea Biz posts are available to use in your company newsletter or website. Purchase reprint and distribution rights for single articles or commission original content.  Click here for details.

    •

    Dan Bolton

    •

    , ,
Verified by MonsterInsights