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

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

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

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

    Education and exposure

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

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

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

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

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

    Soon, the conversation shifts to the plucking method.

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

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

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

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

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

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

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

    Your tea, your way

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

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

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

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

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

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

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

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

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

    “We want to demystify tea,” says Mercier.

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

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

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

    Building green habits

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

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

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

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

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

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

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

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

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


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  • Tea sales accelerate in Canada | Retailers Cope with COVID

    Tea Industry News for the week of September 28, 2020

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

    Tea Sales Accelerate in Canada

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

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

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

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

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

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

    Tea in the Time of COVID

    By Jessica Natale Woollard

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

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

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

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

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

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

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

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

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

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

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

    Enhanced customer service

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

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

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

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

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

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

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

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

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

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

    Wellness tea promotions

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

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

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

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

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

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

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

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

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

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

    Banff Tea Company, Banff, Alberta, Canada

    Opportunity for innovation

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

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

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

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

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

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

    Primarily, Tea Haus invested funds into social media ads.

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

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

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

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

    A time to learn

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

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

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

    Tea in Foodservice

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

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

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

    Favorite US Drinks

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  • CDC: Restaurants are Risky

    Tea Industry News for the week of September 9, 2020

    • COVID Study Implicates Restaurants
    • Retail Stirrings Billy Corgan Resurrects Madame ZuZu’s Tea Emporium
    • Unilever Divestiture Worries Plantation Workers
    Patients with COVID-19 symptoms in 10 states were twice as likely to have visited restaurants during the 14 days prior to testing positive, according to a new CDC study.

    COVID Study Implicates Restaurants

    CDC: Dining-in Poses Risk

    The US Centers for Disease Control and Prevention (CDC) finds that adults with COVID-19 are about “twice as likely” to say they have dined at a restaurant during the 14 days before testing positive for the disease.

    The study, which was limited to those experiencing symptoms, examined 314 adults at 11 different health care facilities in 10 states. Half (154) tested positive, and 160 tested negative for COVID-19.

    Those who tested positive “were approximately twice as likely to have reported dining at a restaurant than were those with negative SARS-CoV-2 test results,” according to the study. As a result, researchers recommend that “efforts to reduce possible exposures where mask use and social distancing are difficult to maintain, such as when eating and drinking, should be considered to protect customers, employees, and communities.”

    “Adults with confirmed COVID-19 (case-patients) were approximately twice as likely as were control-participants to have reported dining at a restaurant in the 14 days before becoming ill,” according to the CDC. “In addition to dining at a restaurant, case-patients were more likely to report going to a bar/coffee shop,” according to the report released Sept. 11.

    “Reports of exposures in restaurants have been linked to air circulation. Direction, ventilation, and intensity of airflow might affect virus transmission, even if social distancing measures and mask use are implemented according to current guidance. Masks cannot be effectively worn while eating and drinking, whereas shopping and numerous other indoor activities do not preclude mask use,” according to the study.

    Researchers report that 71% of the COVID-19 positive patients said they work masks in public; 74% of those who tested negative said they always wore face coverings in public.

    “In this investigation, participants with and without COVID-19 reported generally similar community exposures, with the exception of going to locations with on-site eating and drinking options,” writes CDC.

    Forty-two percent of those who tested positive reported having close contact with at least one person known to have COVID-19, most often family members.

    The study mentions five limitations, including small sample size and the fact that participants were aware of their test results. “Of note, the question assessing dining at a restaurant did not distinguish between indoor and outdoor options,” according to researchers, who say additional research is warranted but caution that “eating and drinking on-site at locations might be important risk factors associated with SARS-CoV-2 infection.”

    CDC: Community and Close Contact Exposures Associated with COVID-19 Among Symptomatic Adults ?18 Years in 11 Outpatient Health Care Facilities — United States, July 2020

    Billy Corgan Resurrects Madame ZuZu’s Tea Emporium

    Madame ZuZu's Tea Emporium
    Madame ZuZu’s Tea Emporium

    Two years after closing, and in the middle of serious viral spread in Chicago, Billy Corgan is bringing back Madame ZuZu’s Tea Emporium on First Street in Highland Park.

    Singer and song writer Corgan, who founded the Grammy-Award winning Smashing Pumpkins, promises “to carry on ZuZu’s tradition of a whimsical atmosphere but in a larger, Art Deco space reminiscent of a 1930’s tea salon.”

    Partner Chloe Mendel told Eater Chicago that she and Corgan are sourcing from the Rare Tea Cellar, a local gourmet tea supplier with a global reputation. In addition to superior teas, the cellar offers $195 olive oil and bottled mixes like Umami Shrubbery and Forbidden Forest Lapsang Souchong Syrup.

    The avante-garde vegan menu expands on the original, featuring $10.25 salads such as kale power salad, Chinoise crunch and Salad Niçoise. Chloe’s tomato soup is $4.95 a cup and sandwiches sell for $8 to $12. Specialties include grilled vegan cheese and vegan Gado Gado tofu bowl and a miso bowl with pickled veggies and coconut rice.

    Madame ZuZu's Grilled Cheese

    “I quickly learned that the delicious world of plants is so overlooked,”says Mendel, who crafted several plant-based dishes.s here

    Iced tea sells for $3 a glass and a Korean Blue Elektra Matcha is priced at $4.50. There is a Reishi cappuccino and a Lionsmane Mushroom Coffee ($5) on the drink menu. The rare teas are about double these prices.

    “Our business model is simple: healthy living combined with an open source venue for the arts, where everyone in our community can gather and share,” writes Corgan, who opened the first location in 2012.

    At the time he told Crave Magazine, “I’m a tea guy and living in Highland Park since 2003. I’ve always wanted to open a salon like this for everyone to enjoy,” Corgan told Crave Online. “This is a place with no age boundaries. We hope to attract everyone from young students to seniors. With a blend of music, photo galleries, art displays and speakers, I think Madame ZuZu’s offers something for everyone.”

    There will be no impromptu concerts for now. The shop operates under COVID-19 restraints limiting dining-in, so take-out is a good option. Staff are tested for COVID-19 daily, writes Corgan.

    Amid hundreds of store closings, a steady trickle of new tea shops and cafes are re-opening. Eater Chicago lists Sawada Coffee, the Living Water Tea House and El (evated) Ideas, a Michelin-starred restaurant. Keep in mind that while tea shops sell a tiny fraction of the total volume on offer, places like Madame ZuZus influence conventional tea drinkers to give specialty teas a try.

    Kenyan tea workers concerned about Unilever’s decision to divest its African holdings.

    Unilever Divestiture Worries Plantation Workers

    The announced divestiture of tea holdings by the world’s largest tea supplier makes uncertain the fate of the company’s wholly owned tea gardens and hundreds of smaller gardens under contract.

    In July, following a strategic review begun in January, London-based Unilever said it will break up its tea business, retaining only bottling partnerships while continuing operations in India and Indonesia. The rest of the company’s tea assets, including several tea estates, will be sold at auction.

    Click to see and interactive map of Unilever’s suppliers. Download link to suppliers.

    Unilever purchases 10% of the world’s tea, employing more than one million workers in 21 countries. Brands currently marketed by the company include Lipton, PG Tips, Brooke Bond, Pure Leaf, TAZO, Bushells, T2 (retail shops), and 21 smaller brands sold in more than 150 countries. Lipton Yellow Label, the world’s best-selling tea brand, accounts for 7% of black tea sales globally. Sales of green tea are insignificant when compared to Asia brands. The tea division is valued at $4-$5 billion, according to financial analysts at Barclays.

    Unilever will retain the core brand in high-growth markets and divest in slow-growth regions such as Australia and Europe where the popularity of black tea is in decline, according to Allied Market Research.

    In Kenya, 60,000 workers employed by Unilever Tea Kenya Ltd. anticipate a gradual scaling back of operations at the 8,700-hectare Kericho Tea Estate. Staff are uneasy, according to The Nation which reports Unilever “has not yet revealed its plans with its Kenya operations to shareholders, who have endured five years without receiving dividends owing to losses.”

    In August Sylvia-ten Den, managing director at Unilever Kenya Tea Ltd. advised the Kenya Agricultural and Plantation Workers Union (KPAWU) “that the company is changing its operation model.”

    “She writes that Unilever will form a new company to manage its global tea business, and that the form and shape of the new entity will be decided at the end of next year. She assures that until then operations will proceed as normal,” according to The Nation.

    Unilever contracts with 30 Kenya tea estates and the Kenya Tea Development Agency (KTDA) which represents another 69 estates producing black and green tea.

    In addition to Kenya, Unilever contracts with tea gardens in Malawi (21), Uganda (13), Tanzania (12), and Zimbabwe (6). It is likely that Unilever will continue to purchase tea grown in Africa but marketed under its India brands. Brooke Bond, which was acquired by Unilever, has a century-old tradition of growing tea in Africa.

    The coronavirus pandemic is forcing companies to reassess their core divisions and shift focus to higher-growth areas, say bankers and mergers and acquisitions lawyers, according to MarketWatch.

    “So far this year, companies globally have sold 8,895 non-core assets worth a total of $391 billion, according to financial data provider Refinitiv. That compares to 11,294 asset sales worth almost $415 billion for the same period in 2019,” writes MarketWatch.


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  • Need to Know | Boba Delivery

    Tea industry news for the week of May 18.

    • Boba Tea Tops Beverage Delivery Lists
    • East Africa Update
    • Turkish Tea Harvest
    • Robotic Waitstaff Serves Tea
    • Nepal Asks India to Resume Tea Imports

    Boba Tea Tops Unique Food Orders

    In March YELP! marketers decided to find out what food and beverages people across the country were being delivered right now! Data scientists tracked how frequently a dish is ordered in each state relative to its popularity in other states.

    “When we first looked at the results, pizza delivery reigned supreme, which is no surprise since it delivers well and it’s perfect for a family night in. However, we dug into the data to find the most uniquely popular delivery order in every state*, and that’s when things got interesting,” writes YELP!

    Winners include a run on crayfish in Texas, poke bowls in Indiana, pad thai in Washington, sushi in South Carolina and naan in Wyoming but guess what topped the list of delivery orders in California last week? How about Michigan? and Hawaii?

    Boba tea.

    “What we found was a mix of delectable dishes and drinks that tell a story of how American taste buds differ from state to state and region to region,” according to the company.

    Click here to see the full list.

    *Samuel Hansen at Yelp! employed a natural language processing technique called term frequency-inverse document frequency (TF-IDF), which quantifies how frequently a dish is ordered in a state relative to its popularity in other states.

    East Africa Update

    Rwanda’s tea sector, largely spared from lockdowns, saw a marked increase in production during the first quarter. The harvest totaled 9,000 metric tons generating $27.6 million in revenue, which is up by 15% from the same period in 2019.

    But there are still formidable challenges getting that tea to market.

    East African tea growers truck tea destined for export to the auction at Mombasa. Kenya’s borders remain open during the coronavirus pandemic, but Tanzania and Kenya required each driver be tested before crossing.

    The result offers a lesson in what can go wrong. A shortage of testing supplies and the sheer number of truckers led to delays that extended from hours, to days, to weeks. Few of those who were tested showed symptoms and none were quarantined while they awaited results. Unable to afford hotel rooms they slept in or under their trucks, cooked together and played sports to kill time. Some wore masks but many did not and very few practiced social distancing. During the two weeks ending last week 150 truckers crossing into Kenya at Namanga tested positive and were eventually ordered back across the border but by then they had infected hundreds of local merchants and fellow truck drivers.

    The Washington Post reports that beginning this week, only drivers that have tested negative prior to arrival at the border will be permitted to cross. Uganda has since discovered dozens of infected truck drivers crossing from Kenya. Zambia closed its border to Tanzanian truckers. Kenya is the largest tea producer in the region at approximately 500 million kilograms followed by Uganda which harvests 60 million kilos annually; Tanzania at 35 million, Rwanda at 30 million and Burundi at 9 million kilos per year.

    At the Mombasa auction Rwanda growers earned an average $2.68 per kilogram of tea last year, followed by Kenya growers who received an average $2.59, Burundi at $2.21 per kilo, Tanzania $1.36, and Uganda $1.21. The overall average price was $2 per kilo.

    Kenya currently has 1,214 confirmed COVID-19 cases, according to Johns Hopkins Coronavirus Resource Center. There have been 51 deaths. Tanzania is reported to have 509 confirmed cases with 21 deaths. Rwanda has 327 confirmed cases with no deaths reported as of the second week of May.

    Holiday Travel Restrictions Eased for Turkish Tea Growers

    Climate dictates that Turkish tea be harvested in three flushes, unlike Africa, Sri Lanka, and Southern India where plucking continues year-round. Tea is grown there on sparsely populate hills facing the Black Sea where growers depend on seasonal labor.

    This year’s spring flush was interrupted by a March 28 lockdown to prevent spread of the coronavirus. Fatma Genc, a researcher at Istanbul’s Marmara University, told The National, that 50,000 tea farmers were unable to prepare their fields for the harvest. Ramadan, which began April 23, complicated timing for Muslims.

    “The failure to harvest this year will make it difficult to meet even domestic demand,” said Genc told the newspaper. “Tea prices, which have been hiked twice in a row this year, will increase even more if the producers cannot go to the field.”

    This week farm owners and laborers from across the country were finally able to travel to northern Turkey on trips extending through the three-day Eid al-Fitr festival that follows the Muslim holy month of Ramadan. Seasonal labor from neighboring Georgia and Azerbaijan continue to face border restrictions leading to some creative solutions. The city of Findikli in Rize hired locals to harvest around half of the 30,000 metric tons produced nearby in an agreement that spans six months. Workers harvest for 10 days and while the leaves for the next flush are growing they complete municipal projects.

    In Rize Province, the heart of the growing region, 16,000 laborers were given permission to travel between fields and home. The Provincial General Hygiene Council required testing at least one member of each family, about 6,000 in all. Screenings continue.

    The provinces of Rize, Trabzon, Artvin and Giresun produce around 260,000 metric tons of tea annually, most of it sold domestically. Turks consume an average 3.5 kilos of tea a year, more than any other country. While much of the tea is imported, a significant shortfall is expected due to rising costs and the fact that much of the domestic tea went unpicked. Caykur, the state-owned producer that supplies 60% of the country’s tea is running a deficit and facing additional costs due to the pandemic. Caykur purchases tea from 200,000 independent farmers.

    Turkey has 157,814 confirmed COVID-19 cases with 4,369 deaths, making it ninth on the list of countries most impacted by the pandemic, according to the Johns Hopkins Coronavirus Resource Center.

    Tea garden in Turkey’s Rize Province, along the Black Sea.

    Robotic Waitstaff Serves Tea

    Tearoom Robot Reduces Contact with Waitstaff Easing Customer Concerns

    The Tea Terrace, a small London-based chain of tea rooms that was forced to close during the March outbreak intends to open this July with the assistance of family-friendly robots.

    Forbes magazine reports that managing director Ehab Shouly found while surveying customers that fear of crowding and contamination by waitstaff were their greatest concerns. Spacing tables was a relatively simple adjustment but a previous experiment with automated service at the company’s Surrey tearoom proved prescient. Last July The Tea Terrace became the first restaurant in the UK and Europe to introduce a robotic waitress, named Theresa.

    Theresa is summoned by guests using controls at the table. The robot responds to voice commands. Shouly has also introduced functional assistants such as Captain Tom, a bot that delivers up to four trays each with teapot, teaware, and food.

    Modifications are underway to expand robotic services to all four tearooms which serve 200 to 300 guests per day on weekends.

    Nepal Asks India to Resume Imports

    Tea growers in Nepal are seeking the resumption of exports to India, according to Nepal’s Ministry of Commerce and Supplies.

    India stopped importing tea the week of May 6 and has not responded to Nepali officials. Periodically India has shown its displeasure with Nepal by refusing entry of tea and other exports such as palm oil.

    Purna Kumar Karki, president of Jhapa Tea Entrepreneurs Association, told My Republica that Indian authorities impose non-tariff barriers on Nepali products from time to time “for no reason.”

    Sanjay Bansal, chairman of the Darjeeling Tea Association (DTA), recently appealed to West Bengal Chief Secretary Rajiva Sinha to regulate the sale of Nepal tea to save the Darjeeling Tea Industry. Darjeeling growers maintain that Nepal undercuts their unique tea which is protected with a global Geographical Indication certifying its authenticity.

    Bansal told The Statesman Nepal did not impose a lockdown and growers there have been producing at a high rate since February. “These teas are ready and are in the process of being shipped to India through the Indo-Nepal land borders in West Bengal to be sold in the local markets by taking advantage of the absence of Darjeeling Tea in the market due to the lockdown restrictions,” said Bansal.

    In a related matter, Federation of Chambers of Commerce & Industry, North Bengal (FOCIN), has requested Chief Minister Mamata Banerjee to allow small wholesale and retail shop owners to open their establishments.

  • Tea Shop Closings

    A running list of permanent tearoom and tea merchant closures in Australia, Canada, New Zealand, UK, and the United States.

    To add a business to this list email Dan Bolton ([email protected]) with details and a link to a news report, press release, or a Facebook page announcement. Tea Biz also publishes Tea Shop Obituaries that celebrate the life of tea businesses that have served their communities for five or more years. Owners are encouraged to share their experiences so that other shops will benefit.
    Tea Shop obituaries are 350-word interviews illustrated with a photo.

    CANADA

    The Canadian Federation of Independent Business (CFIB), which represents 110,000 small ventures reported in April that 58% of members surveyed said they could not pay May rent without government assistance. Only 18% of small businesses indicated they are now open. The survey of 10,500 businesses was conducted April 17-19.

    Victoria, British Columbia
    Just Matcha Tea Shop (established 2013-2020)
    Locations: 2021 Oak Bay Ave. | 544 Pandora Ave.
    Tiffanie and Kip Home announced the temporary closure of their two tea shops in mid-March but could not make rent payments. Unable to reach an agreement with their landlord (who graciously deferred rent) they decided to close permanently in April after seven years, according to the Times Colonist. “I’m not going to triple my revenues when it opens again and you need to do that in order to cover the rent for the three months that you missed,” Kip told the newspaper. Kip said the company spent a lot of money in January and February restocking inventory and buying merchandise for the upcoming tourist season that relies heavily on cruise ship visitors and public events. The couple and their two business partners hope to one day reopen on Pandora Ave.

    UNITED STATES

    A National Restaurant Association survey of 6,500 restaurant operators found a 78% average drop in sales during the first week of April, compared with the same period last year. The U.S. restaurant industry lost 3 million jobs in March with sales plummeting by $25 billion. The association estimates that 44% of restaurant and cafes operators were forced to temporarily close in March with 3% permanently closed. The survey indicated 11% of respondents anticipate closing permanently due to the crisis. Sinensis Research reports that as of mid-April 31.7% of U.S. specialty tea businesses are temporarily closed with 2.3% closed permanently. In a report on the impact of COVID-19, founder Abraham Rowe estimates 9,200 layoffs. His survey of 1,600 shops showed that “81.8% of specialty tea businesses have laid off staff.”

    Doylestown, Pennsylvania
    The Zen Den (established 2011-2020)
    Location: 41 E. State Street
    Owner Annette Coletta announced the closing of the popular shop in April, according to the Doylestown Patch. The shop featured many live events and was favorite of artists and musicians. Coletta intended to sell the business and was in discussion with buyers when the coronavirus lockdown forced her to close the shop. On Facebook she wrote: “I have had some of the best years of my life here and made so many friends and acquaintances that I’m very grateful for having. What began as a way of coping with a personal crisis after a horrific car accident, has now ended through a global crisis. What began as an idea in someone with no business experience, The Zen Den grew to earn “The Best of Bucks/Mont” several years in a row—-I have more gratitude and pride than I can articulate—-I have ALL of you to thank!” Liquidation of inventory is planned by April 30. “I will go forward knowing that I gave it my EVERYTHING and ran an honest, ethical business for 9 years and that I did the best I could—-I have no regrets,” writes Coletta.

    New Orleans, Louisiana
    Coast Roast Coffee & Tea (established 2015-2020)
    Locations: 2381 St. Claude Ave.| 801 Magazine St. (2018-2020)
    Owner Kevin Pedeaux, a 12-year veteran with three shops in Louisiana and two in Mississippi closed the company’s St. Roach Market and Auction House Market locations in New Orleans but continues to operate the 3618 Magazine Street store which opened in 2019, according to a report in the Uptown Register. Service is limited to delivery, online order for pickup, and show and order-to-go. Pedeaux said in March he had to lay off 12 staff members but in April is back up to five. “It was personally a huge victory to get back to 7 a.m. to 7 p.m. hours,” he told the newspaper.

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