Iran halts Indian tea imports, forcing growers and traders to find new markets.
Iran Halts Tea Imports From India
Iran, one of India’s big tea markets, has suddenly halted imports of tea and rice from India. No reason was given, although government officials have been quoted as saying this could be a retaliatory response as India stopped imports of kiwi and peaches from Iran. Another point raised was that Iran wanted India to restart buying oil. The Mint reported that Iran’s rice imports for April- September 2023 stood at $641.66 million, while tea imports for January- September 2023 stood at $66.39 million, valued second to the UAE. The tea bodies are waiting for Iran’s responses on the reasons for stopping imports.
NETA Asks For Ban On Six Pesticides
Representatives from the North Eastern Tea Association have submitted a memorandum to the state agriculture minister with an appeal to prohibit the stock, sale, and distribution of six pesticides – Cypermethrin, Acephate, Imidacloprid, Acetamiprid, Dinotefuran, and Fipronil. These pesticides are banned for tea, and the association said that testing of teas showed MRL ( maximum residue levels) residues indicating the use of these chemicals. The association said that these six pesticides contributed to much of the problems attached to the lack of food safety compliance.
Kangra Tea Seeks Government Intervention
The Kangra tea industry is awaiting some interventions from the state government to revive and promote their tea industry. The land under tea cultivation and crop have dropped significantly in recent years as it has been losing its viability. Three of the four government factories also remain closed. The tea association here has asked for greater support, especially in increasing the state’s tea tourism opportunities.
| Decade Old Oil Debt to be Settled in $5 Million Monthly Installments of Tea | India Exporters Expect Iran to Resume Buying Tea Halted Since November | Israel Declares Wissotzky Tea a Monopoly | Rohit Jawa Takes Charge at Hindustan Unilever
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Hear the Headlines | Seven-minute Tea News Recap
PLUS
Organizers of the annual Teas of the World contest hosted by AVPA, the Paris-based Agency for the Valorization of Agricultural Products, announced Aug. 31 is the deadline for submitting monovarietal teas, tea blends, and infusions. Ksenia Hleap, responsible for development and communications at AVPA, updates us on the 6th annual competition.
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Ksenia Hleap, development and communications at AVPA (Agency for the Valorization of Agricultural Products)
Barter Eases Constraints Imposed by Sanctions on Iran
By Dan Bolton
Iran and Sri Lanka in July will resume bartering tea.
In a related development, Indian exporters say a resumption of tea shipments from India to Iran is expected soon.
The barter agreement with Iran is to settle an outstanding debt incurred in 2012, effectively bypassing Western sanctions and easing financial hardships in both countries caused by politics, economics, and war.
Terms of the agreement with state-run Ceylon Petroleum Corp. call for Sri Lanka’s treasury to transfer the equivalent of USD 5 million monthly in rupees to the Tea Board of Sri Lanka. The funds will then be paid to exporters. According to Tea Board Chairman Niraj de Mel, Iranian tea importers will pay the National Iranian Oil Company in riyals.
Sri Lanka’s plantation ministry issued a statement assuring all parties that the agreement “will not violate UN or US sanctions since tea has been categorized as a food item on humanitarian grounds. None of the blacklisted Iranian banks will be involved in the equation.”
Trade will begin in July as Sri Lanka exporters initially ship an estimated $2 million worth of tea per month to offset $251 million owed Iran, according to the publication Iran International. The announcement resurrects an agreement signed in December 2021 with Iran’s Trade Promotion Organization to replay the debt in 48 installments.
De Mel explained that barter is a mechanism by which Sri Lanka will make good on its debt. The more pressing concern is production. QUOTE “This year to date, Sri Lanka has fared poorly in supplying Iran largely due to the sharp rise in tea prices for Ceylon tea and, therefore, to the benefit of India. There is at least a good $2 to $3 difference in price between us,” he wrote. In past years, Iran spent as much as $125 million buying Sri Lankan black tea, an expenditure that declined to $70 million in 2022.
In November 2022, Iran stopped issuing a Register Proforma on invoices from Indian suppliers. The Proforma document is mandatory to land tea at Iran’s ports. Anshuman Kanoria, chair of the India Tea Exporters Association, said he expects that trade will soon resume.
Kanoria cautioned “not to read too much into this. Indian tea remains the preferred cup in Iran. Iranian importers have clearly resumed purchases, and a full resumption of registration of contracts for the import of Indian tea by Iran seems imminent. Sri Lanka will find a way to retain space in the Iranian market via this barter agreement. We believe that the Indian Government’s push to increase trade in the Indian rupee will give us the edge in the near future. Rest assured, India will remain Iran’s favorite cuppa, and they will continue to import lots of it.”
India expects tea exports to drop by almost 10% in 2023. In the past, Iran purchased 30 to 35 million kilos of tea annually, about 40% of Indian tea exports. In 2022 for the ten months ending October, exports declined by 9% to 19.5 million kilos compared to 21.5 million kilos during the same period in 2021. This spring (January-March), total tea exports were down 6% to 48 million kilos. Exports totaled 228 million kilos in 2022-23, an increase of 18% compared to 2021, according to the Tea Board of India.
BIZ INSIGHT – In a related development, to preserve foreign exchange reserves and reduce smuggling, the government of Pakistan this month authorized private barter agreements for 26 commodities with traders in Iran, Afghanistan, and Russia and is currently bartering rice for tea with Kenya and East African tea growers.
Wissotzky Tea
Israel Declares Wissotzky Tea a Monopoly
By Dan Bolton
Wissotzky Tea Company, Israel’s dominant brand, was declared a monopoly by regulators and must now cease practices that restrained competitors.
Israel’s Competition Authority designated Wissotzky, once the largest tea manufacturer in the world, as a “large supplier” with a market share of 77% in the categories of green and herbal teas. The Authority found that Wissotzky’s market share was less than 50% in black and flavored black tea categories, so neither category nor their related brands were restricted.
The ruling means that Wissotzky can no longer demand retail shelf space or make sales of one brand contingent on purchasing other teas. The company is prohibited from interfering in the final price charged to customers at retail locations.
The authority examined the 250 million shekalim ($68 million) tea category during an 18-month investigation followed by months of hearings. The black, green, and herbal segments each account for about one-third of the total market — which Wissotzky dominated. In their finding, the Authority confirmed that competitors had for years complained that Wissotzky unduly influenced prices, preventing rivals from increasing sales even in cases where they offered lower prices and in situations where successful overseas brands failed after entering the new market.
The announcement declared that Wissotzky’s “significant market power” in green tea allowed the company to charge higher prices than competitors. The company has the option of appealing the decision in the court system.
Wissotzky, founded in Moscow in 1849, dominated the world market from the early 1900s to 1917, when it was forced to relocate to London following the Russian Revolution. Headquartered now in Tel Aviv with a manufacturing and packaging factory in Galilee, the company’s teas are exported to the UK, Australia, Japan, South Korea, Hungary, Russia, Ukraine, and the US.
BIZ INSIGHT – It has been 20 years since the Authority declared a monopoly in Israel. Sixty-one legally defined large suppliers must comply with restrictions to prevent exploiting the public, only a few of which manufacture food, including Coca-Cola (Central Bottling), Strauss Milk, Osem pasta, Tivol margarine, and Elite chocolate bars. The country’s economy and industry minister said he is “happy to see the Competition Authority waking up from a long sleep.”
Rohit Jawa, CEO, and Managing Director HUL
Rohit Jawa Takes Charge at Hindustan Unilever
By Dan Bolton
Rohit Jawa took charge as managing director and chief executive officer of Hindustan Unilever this week following a long career as an HUL executive.
Jawa joined the company in 1988. His 35 years of experience is the most of any incoming CEO since 1990. In a LinkedIn post following the formal retirement of Sanjiv Mehta, Jawa wrote, “India is full of opportunities, and the consumer story is getting more exciting as it evolves.”
During his ten years as CEO, Mehta nearly doubled the number of brands with turnover exceeding Rs 1000 crore to 19. He oversaw a fourfold increase in market capitalization, making HUL India’s 5th most valuable business. The India subsidiary accounted for more than 10% of global sales during his years. During his last year, turnover grew 11% on volume growth of 3%, “significantly ahead of the market,” according to Unilever.
Tea is an important part of the 35-brand portfolio, Brook Bond Red Label is one of six FMCG brands that generate more than Rs. 2000 crore (about $250 million in US dollars), but tea is not as fast-growing as Dove, Lux, Lifebuoy, Vim, Wheel, and Surf laundry brands. Nine in 10 Indian households use HUL brands. The company employs 29,000.
Mehta predicted in 2022 that India would become the top market by value among Unilever markets. He predicted local brands would grow to challenge Unilever stalwarts such as Lipton tea and Magnum Ice Cream.
“As a nation and in this generation, we’re leaving behind the colonial past. There is pride in India, which is very apparent,” the Financial Times quoted him as saying. “Now Indian brands get as much respect, if not more respect, than imported brands.”
Jawa has extensive experience in India and global insights from his decades of managing low-priced, high-volume brands. He is well-positioned to exploit the rush to expand India’s almost $4 trillion market.
FEATURES
AVPA Teas of the World Contest Winners 2022
A Call for Entries for AVPA’s 6th Teas of the World Contest
By Dan Bolton
AVPA is a non-governmental, non-profit organization mainly composed of producers and taste enthusiasts. AVPA’s annual Teas of the World contest offers more value than a medal. Services include tasting workshops, technical support, and distributor staff training.
During the past six years, the organization has elevated the status of tea and herbal producers, large and small, not only on the global stage but in their local markets. Teas must be traceable from origin and cannot be chemically flavored. A technical jury of professionals evaluates the teas, followed by a gastronomic jury of enthusiasts that mirror consumer preferences. The deadline to enter is Aug. 31, 2023.
Register at AVPA.FR (Agence pour la Valorisation des Produits Agricoles)
Over the last five years, there’s been a steady increase in how many producers entered the competition, says Ksenia Hleap, Development and Communications Director at AVPA. “Last year, we had more than 300 participants, 33% more than the previous year,” she said.
This year is very rich in possibilities for us. We are in contact with all producing countries for monovarietal, infusion blends, and herbal teas. Unfortunately, not all tea boards respond. The difficulties sometimes are just the way of communication because we contact the tea boards in every country. We are also contacting the associations and tea cooperatives. So, it depends on the countries and their desire to promote tea producers,” she said.
Hleap said the product recognition in Paris, the capital of gastronomy, gives contest winners a big possibility to communicate about this, to showcase the logo of the medal on their packaging, and to promote their tea or their products all over the world but first of all in their local market because this is an international recognition. Even those who do not earn a medal benefit, she explains.
“All our participants are winners because they dare to register for the contest and sell their products. Unfortunately, not all of them are winners this year, but they will probably be next or another because they are doing a very great job. They are putting their hearts and time into what they are doing,” she said.
Listen to the Interview
Ksenia Hleap manages development and communications at AVPA (Agence pour la Valorisation des Produits Agricoles)
| Catchy TV Campaign Promotes Lipton’s New Hard Tea
PLUS Tea Biz travels to Montréal, Quebec, to talk with Nadia de la Vega, director of tea sustainability and content at DAVIDsTEA, a company that fosters a spirit of POSITIVI-TEA which she describes as doing what’s right for both our local communities and global suppliers. Jessica Natale Woollard reports.
International Tea Day Celebrations Expand Globally
Enthusiasm for the United Nations-designated International Tea Day is peaking this year as tea associations, governments, and brands join the May 21 tribute. The global tea industry increased production from 4.3 to 6.5 billion kilos from 2009-2019, enabling tea drinkers to enjoy 8.2 billion cups daily. A few of the many activities are linked below.
The European Speciality Tea Association announced a Zoom fundraiser to support women in tea. Promoted as the world’s biggest sipping event, the online gathering begins at 2 pm (British Summer Time) on Sunday, May 21.
“We plan to invite more than 1000 people worldwide to raise a cup in unison to celebrate this amazing beverage generating 1000 pounds sterling before and during the event to empower women in tea management. Women have been marginalized in the tea-making process and other management leadership roles within the tea industry, and we want to be a catalytic force to initiate change there. The hour-long event will be recorded for viewing on demand. Visit www.specialityteaeurope.com to register.
Line up
Paola Cruz is a wellbeing influencer @practicewithpaola will talk about tea and wellbeing and how to infuse this in your life.
Virginia Lovelace, author and tea scientist, will talk about improving your tea experience at home.
Nepal tea collective sisters will talk about their life in tea.
Muskan Khanna will talk about being one of the youngest women tea makers.
Madelaine Au will talk about organizing a successful tea event in Oregon.
Lucy (Mynt Mynt) Shwe from Mother’s Love Tea in Myanmar will speak about the uniqueness of Burmese tea culture.
Bernadine Tay from Quinteassential is a Founding Director of the European Speciality Tea Association and will host and moderate the event.
ARGENTINA Expo Té Argentina, in Posadas, Misiones, is a three-day event marking the 100th anniversary of commercial tea production. The event is May 25-27 and includes garden tours, a tea business conference, an exposition, and a tea fair. Learn more…
• Tea product business round: May 26 from 9 a.m. to 12 noon. • Expo May 25 and 26 from 4 to 9 pm • Tour with Producers of the enterprises: May 27
BELGIUM The Chinese Tea Culture Center in Antwerp will host a tea meditation and tea circle from 3-6 pm on Sunday, May 21. The Belgium Chinese Tea Culture Association is a non-governmental and not-for-profit culture association whose mission is to promote peace, harmony, and respect for the ECO nature and humanity in society through tea and tea serving.
CANADA The Tea and Herbal Association of Canada will host its 4th annual Sofa Summit on Friday, May 19, from 8:30 am to 7:30 pm (Eastern Daylight Time). Join THAC President Shabnam Weber for 11 hours of conversations with tea experts, tea association representatives, and growers worldwide.
UNITED STATES The inaugural Eugene Tea Festival will be held at the Farmer’s Market Pavilion in Eugene, Oregon, from 10 am to 4 pm (Pacific Daylight Time). Organizers invite participants to enjoy tea tastings, educational workshops, and a vibrant marketplace. Learn more…
Teeverband board member Annemarie Leniger explained the ambitious goals of the industry: “Teas, in all their diversity, are not only part of a highly developed culture of enjoyment, but they are also becoming increasingly important as a valuable, natural food in this country. As a commodity, tea builds bridges between the continents, connects young and old tea fans, and should further promote economic developments in the countries of origin if German tea manufacturers have their way.”
European Tea Day organizers announced the inaugural June 2 celebration in Brussels with panel discussions describing the European tea market, new ways of attracting next-generation tea drinkers, and a tasting session. Learn more…
The Ku/Ka-band dual-frequency precipitation measurement radar onboard the FY-3G Satellite captured rainfall near Hainan and Yangjiang in Guangdong Province. The image showed the three-dimensional structure of the precipitation system from 3.75 to 6 kilometers from the surface. Credits: National Satellite Meteorological Centre of CMA
Receding La Niña to Boost Summer Temps
China is again experiencing record-breaking heat early in the crop cycle, impacting Yunnan and several other tea-growing provinces.
The country has experienced several heat waves since March, with Yunnan in Southwestern China recording 40 Celsius highs. Northern provinces Jinan and Tianjin are seeing temperatures soar to 37C (about 98 degrees Fahrenheit).
Kunming, the capital of Yunnan, had recorded only 8 millimeters of rain through April. According to state broadcaster CCTV, the province has seen only 35 millimeters of rain since the first of the year, the lowest total since record-keeping began.
In its latest assessment, the World Meteorological Organization, WMO predicts a strong likelihood of the El Niño weather pattern returning later this year. The current La Niña pattern has moderated temperatures over the past three years. WMO said the change would most likely lead to a new spike in global heating.
A study published in Nature Reviews Earth found that sea surface temperatures and variability increased after 1960 in the Southern Oscillation (ENSO). El Niño and La Niña events are more frequent and more extreme. The CSIRO study found that El Niño events have doubled, and strong La Niña increased nine-fold.
Lead researcher Wenju Cai said that “Global warming makes the impact of these events more extreme because a warmer atmosphere holds more water, so when it rains, it rains harder, and evaporation is higher, making droughts more severe, their onsets earlier and harder to get out,” he said.
Lipton Hard Iced Tea | Pool Party TV Commercial
Catchy TV Campaign Promotes Lipton Hard Iced Tea
This week, Lipton unveiled a trio of television and web commercials that state the obvious.
The top-selling non-alcoholic tea brand recently launched a fresh-brewed line with 5% ABV (alcohol by volume). The new hard tea is blended with a triple-filtered malt base in four versions, replicating its best-selling flavored iced tea.
The lineup includes lemon, peach, strawberry, and half & half flavors.
According to Zion Market Research, the hard tea segment pioneered in 2001 by Boston Beer’s Twisted Tea was valued at $20 billion last year. Zion projects revenue will surpass $30 billion by 2030, growing at a combined annual rate of 11.9%.
Europe is expected to register the highest growth rate through 2030, followed by the Asia-Pacific region.
The television commercials, created by Founders Agency, depict situations in which actors are caught in humor, such as a guest who arrives in a swimsuit and fins for a “pool” party at a billiard room. When given a can of the new tea, the actors exclaim, “Obviously!”
Brand director Lisa Texido writes, “We created the recipe to make sure that the smooth, balanced flavor people love about Lipton iced tea came through. People will be surprised that a hard iced tea can be this delicious – a must-try.”
The tea is available in 12-packs of 12oz cans and 24oz single serve. Competitors, including Twisted, sell for $15-$18 for a 12-pack, $3 per 24oz can. Online prices were $18 for the Lipton 12-pack. A 12-pack of non-alcoholic Lipton Iced Tea sells for around $7, about 50-60 cents per can.
Lipton Hard Iced Tea (5% ABV)
FEATURES
Nadia de la Vega
Sustainability is a Long-Term Commitment, Not a Campaign or Promotion
By Jessica Natale Woollard
Cheerful packaging and bright aqua for a signature color have made DAVIDsTEA one of Canada’s most recognizable tea brands. Founded in 2008, DAVIDsTEA expanded to become Canada’s largest specialty tea boutique, offering over a hundred teas and blends. The company made tea accessible, attracting a new generation of tea drinkers. Pre-pandemic, it operated 240 retail locations in Canada and the US but today focuses on e-commerce and wholesale. From day one, DAVIDsTEA has been sustainably oriented. It’s in the company’s DNA, says Nadia de la Vega, DAVIDsTEA’s director of tea sustainability and content. Nadia joins us on the podcast to discuss sustainability in the tea industry and how mindfulness and fun can go hand in hand. “Sustainability is not a campaign,” says de la Vega. “When you’re doing sustainability work, you are not doing a sale, and you’re not doing a promotion. This is a long-term commitment to your product and the people that provide the product you consume and love.”
Listen to the Interview
Nadia de la Vega | DAVIDsTEA Director of Sustainability and Content
Panels explored tea production, trade, logistics, innovation, and sustainability
Tea News for the week ending April 28
| The Global Dubai Forum Makes a Splendid Return DMCC Executive Chairman and CEO Ahmed bin Sulayem commits to a biennial schedule for future conferences
| South India Planters Name 18 Golden Tea Leaf India Award Winners
| Indian Tea Association Presses for a Tea Price Floor Indexed to Rising Production Costs Borne by Smallholders and Made Leaf Producers
PLUS This week, Tea Biz discusses various revealing consumer trends and beverage insights with Siân Edwards, Group Insights Manager at Finlays. She says the outlook for the beverage industry is positive, with consumers making good choices for the planet and themselves.
A five-year pandemic-forced hiatus lent this year’s gathering of tea executives the atmosphere of a reunion on April 25-27. Three hundred attendees got reacquainted with each other and the impressive expansion of services at the Dubai Multi Commodities Center (DMCC).
Director of Agri Commodities Saeed Al Suwaidi, named to the post in January 2022, said that the DMCC Tea Center played a major role in positioning Dubai as the world’s largest re-exporter of tea.
“We launched the tea center in 2005 to further develop and grow the trade through Dubai by connecting tea producers and merchants, allowing tea-growing countries to reach a global market,” said Suwaidi.
The tea center, which spans over 20,000 square meters, offers a business center, storage, and blending solutions. “Our machines can produce up to 45 million tea bags per month with the capacity to store up to 5000 metric tons of bulk tea at any given time,” he said
DMCC provides free storage allocation to all its members due to increasing demand. The tea center has increased its service area by 25% In recent years, accommodating new state-of-the-art machinery and temperature-controlled storage facilities for specialty teas as well.
Tea competition judges Dr. Sharon Hall, UK, left, and Shabnam Weber, Canada.
South India Planters Name Golden Leaf India Award Winners
Eighteen tea estates took home prizes during award ceremonies at the 18th annual Golden Tea Leaf India Awards organized by the United Planters Association of South India (UPASI).
An international jury attending the Global Dubai Tea Forum selected winning teas from 118 entries in eight categories. Estates owned by Kanan Devan Hills Plantations (KDHP) won seven awards. Four estates from Parry Agro Industries and four Harrisons Malayalam estates also stepped forward to receive their prize at awards ceremonies on April 27.
Cherian George, a United Planters Association member and CEO at Harrisons Malayalam tea estates, said, “It’s been five years since judges last convened at the Global Dubai Tea Forum to select the winners. Unlike most competitions, he explained, UPASI coordinators select samples randomly.
“The coordinating committee walks across each factory and randomly* picks the sample. That’s a big differentiator. Those samples are tested blind by highly skilled brokers with great experience in the whole thing.
South India, unlike other tea-growing areas, has multi-locational tea growing. I mean, you have a mid-elevation, you have a low elevation, you have a high elevation, and each of them has got character. Some of the teas have got body, some have got strength, and some have got very high flavor.
He said preliminary screening resulted in 62 samples from 118 entries. “I don’t think we have ever brought more than 40 samples here,” said George, adding, “The Dubai Tea Forum has been very helpful in coordinating this. This time, we had some fantastic tasters globally, including Canada’s Shabnam Weber from Toronto and the UK’s Dr. Sharon Hall and Gundlach Packaging Managing Director Sanjay Sethi, based in Dubai.
So, you had a real plethora of people from multiple origins, and when they taste, it is not from one individual or one origin is multiple origins, giving complete visibility. The next phase is a special auction back home,” he said.
*The estate/factory participating in the competition should ensure a minimum lot size of 1.5 tons for Organic Tea and Green Tea, 2 tons for the Orthodox category, and a minimum of 3 tons for the CTC category.
ITA Seeks Minimum Tea Price Floor
ITA Seeks Tea Price Floor Indexed to Production Costs for Growers and Processors
The India Tea Association (ITA) has asked India’s Commerce Ministry to declare a minimum price for tea.
An ITA press release described how rising production expenses squeeze growers out of the tea market.
“According to ITA membership crop data, the Darjeeling crop is estimated to be down by 39% in March. Crop fall has been reported in the Dooars region, adding woes to the state’s ailing agro-industry. Tea prices are not keeping pace with the rising cost of production.”
Since 2014, West Bengal tea prices have registered an annual combined growth rate of around 4%, less than half the growth rates of fuel, fertilizer, and plant protection chemicals. Workers now earn Rs. 232 rupees daily, an increase of 144% from Rs. 95 rupees in April 2014.
The situation is more acute than in past years due to falling yield, the Hindu Businessline reported.
“Auction prices of Darjeeling tea have been more depressed than the overall West Bengal Average price – recording a CAGR of only 1.86% since 2014. Given that the cost of production in Darjeeling Hills is significantly higher than in the plains, most Darjeeling tea estates find it difficult to sustain operations.
ITA is seeking a floor price indexed to the cost of production payable to small tea growers and to made tea producers.
ITA writes that enforcing a floor price mechanism for smallholders selling green tea leaves offers an immediate solution to the “unremunerative price of tea” without any additional cost to the government.
State government officials in West Bengal and Assam conveyed their support in correspondence with the Ministry.
FEATURES
Finlays Group Insights Manager Siân Edwards
Conscious Consumerism
By Dan Bolton
Finlays annually publishes a beverage trends report. This year’s eighteen pages of statistics and market research revealed that consumers have growing concerns about food inflation and economic growth, but research cited in Finlays Beverage Trends 2023 indicates that consumers continue to view good tea as an affordable luxury, explains Group Insights Manager Siân Edwards.
“The desire to treat themselves, coupled with concern for their health and the planet, drives the trend toward conscious consumerism. We’re seeing how each purchasing decision is carefully evaluated regarding financial, health, and environmental cost. Throughout this report, we’ve sought to encapsulate this broad sentiment under the banner of ‘mindfulness,’ as people mindfully allow themselves indulgences, choose healthy products, and opt for brands with a lower environmental impact.”
| A Billion People Participate in Earth Day Activities Earth Day Organizers Honor Just Ice Tea Founder Seth Goldman
| Iran Snubs India Suppliers as Tea Exports Set Record
| Long-Running Drought in Kenya Depresses Tea Yields
| PLUS Vahdam Tea founder Bala Sarda is launching a new line of 25 Indian spices grown free of adulterants and pesticides and manufactured without artificial colors. Initially, Vahdam spices will be sold directly to consumers and later offered in grocery stores.
A Billion People Participate in Earth Day Activities
More than 1 billion people participated in Earth Day in the past year, making it the largest civic observance in the world.
This year’s focus was investing in the planet, a theme embraced by many tea companies. “Everyone accounted for, everyone accountable,” comments Kathleen Rogers, President of EARTHDAY.ORG who writes that the environmental awareness campaign that began in 1970 is now celebrated in 192 countries.
“In 2023 we must come together again in partnership for the planet. Businesses, governments, and civil society are equally responsible for taking action against the climate crisis and lighting the spark to accelerate change toward a green, prosperous, and equitable future. We must join together in our fight for the green revolution and for the health of future generations. The time is now to ‘Invest In Our Planet.’”
Yogi Tea is an example. During the past year, tea team members planted 300 trees in the US. In Germany, the company helps wild bees and in Italy, the company hosts educational sessions and community cleanups. See yogitea.com for suggestions on what individual consumers can do to make a difference.
Just Iced Tea founder Seth Goldman, Cofounder and CEO of Eat the Change, Chair of the Board of Beyond Meat, and Co-founder of PLNT Burger and Honest Tea, will receive Earth Day’s 2023 Climate Visionary Award in recognition of his exceptional leadership and decades of tireless efforts as an innovative entrepreneur, environmental and climate activist, and philanthropist.
Rogers writes that “his bold passion for democratizing plant-based and plant-healthy foods worldwide has significantly contributed to solving the challenge of climate change and building a strong and equitable green economy.”
“This year’s honorees are leading the way to create widespread awareness and accelerate critical action to change the trajectory of the defining crisis of our time: the climate crisis.,” said Rogers.
Goldman and several other notable earth advocates were recognized at Earth Day’s annual Climate Leadership Gala, on Saturday, April 27 at the Mayflower Hotel in Washington, DC.
Iranian port
Iran Snubs India Suppliers as Tea Exports Set Record
Iran imported a record $665 million worth of tea in the fiscal year ended March 20, 2023.
The Islamic Republic of Iran Customs Administration (IRICA) said tea exports estimated at $44.2 million were also at record levels, increasing by 90% in the five years ending 2021. Exports were up 34.8% compared to the same period last year, according to IRICA.
Volume totals exceeded the previous fiscal-year high in 2014 despite cutting off trade with India. Export value totaled $38 million that year, plummeting to $6 million during the pandemic when lockdowns prohibited guest workers from nearby countries from plucking tea.
Iran was once one of India’s top tea export destinations, accounting for almost half of all Indian tea exports. Iran also shipped teas to India, valued at $4.3 million in 2021.
In November 2022, Iran initially slowed and, in December, stopped sourcing tea from South India auctions by refusing to register new contracts, a requirement for landing tea at Iranian ports. The pullback remains unexplained but may be related to internal protests and violent clashes in major Iranian cities. During the past three months, withdrawal from tea auctions has depressed auction prices for orthodox categories.
The auction at Kochi is most impacted.
“Nobody knows what’s happening in Iran,” Ansuman Kanoria, chairman of India Tea Exporters Association, told the Hindu Business Line “Shipments have been made under previously registered contracts, but even their payments are coming very slowly. New orders are not getting registered, and it’s a very difficult situation,” Kanoria said.
The IRICA release indicates Iran continues to import premium-grade tea from trading partners Turkey, Germany, China, Japan, Vietnam, and Poland. The main export destinations include neighboring CIS countries, Iraq, Canada, Spain, and the Czech Republic.
Tea is popular in the nation of 88 million, where annual consumption is around 120,000 metric tons per year, according to the Iran Tea Association.
Iran’s 55,000 tea farmers are concentrated in Gilan Province. Local suppliers in the northern portion of the country produce about 30% of domestic consumption. Growers earn around $15 million annually (about 4 trillion rials) in sales to the government, which processes the tea. Harvesting begins in May, with production rising by double digits during the past few years. The market prefers top-quality leaves (about 79% of total output is processed as orthodox black tea).
Tea exports fell by 19% in 2022 to 450 million kilograms, the first drop in volume since 2017.
Long-Running Drought in Kenya Depresses Tea Yields
Kenya Tea Development Agency (KTDA) officials reported this week that scarce rainfall and high temperatures depressed first-quarter tea yields by 100 million kilos in the Mt. Kenya and Embu regions.
Export volumes declined by 19% in 2022 to 450 million kilograms, the first drop in volume since 2017. Output fell slightly to 535 million kilograms because of unfavorable weather.
KTDA Chair David Ichoho [I CHO HO] told a gathering of 225 directors representing 37 factories that the demand for orthodox teas from Kenya is rising.
“Orthodox tea, which includes oolong, green, white or black tea, has a high demand, and KTDA has identified markets that require more than 2 million kilos annually,” he told the directors. Ichoho said KTDA is initiating a program supporting the processing of orthodox tea for export. Kenya currently exports 95% of its tea, with only 5% consumed in the domestic tea market.
BIZ INSIGHT – Meanwhile, in West Bengal, India, weeks of temperatures between 35 and 40 degrees centigrade have inhibited the second flush harvest now underway. A lack of rain has encouraged infestations of red spiders that feed on yellowing tea leaves weakened in the extreme heat. There has been no rain for 15 days, complicated by high winds that increase evaporation. Tea yields average between 1200 and 1500 kilos per hectare in the Dooars. Yields average 2,200 to 2,400 kilos per hectare in bordering Assam.
India’s tea exports for the 2022-23 financial year registered a 17.61% increase in value to more than $800 million US dollars.
FEATURES
Vikas Khanna & Bala Sarda
Spice and Tea Synergy
By Aravinda Anantharaman
Bala Sarda’s Vahdam Tea turned eight this year. From launching Vahdam as a brand that connects tea drinkers with producers to a range of superfoods with turmeric, moringa, and matcha, Vahdam’s journey has been about an Indian brand offering consumers across the world what they want, direct from the source. The latest addition to the brand is a range of Indian spices, now offered not unlike their tea. We talk to Bala about the new launch and what it means for Brand Vahdam. Read more…
