Few people know that the cuppa tea they cherish is in trouble.
Every mature industry experiences rising production costs, saturated markets, stagnant prices, and a lack of tech intervention – in tea, the over-dependency on subsidies, risk-averse attitude, complacency, and fear of change add to these troubles.
Other industries have found solutions through innovation (product, material), new technology (cloud, platforms, software), market expansion (exports, new manufacturing hubs), and cost-saving (zero inventory, automation). However, the woes of the tea industry seem bottomless.
One of the reasons for this endless nightmare is that since tea is an old industry, many interest groups further their agenda. Due to a lack of consensus, no single entity – the brokers, tea associations, government bodies – has been bold or creative enough to pull the industry out of this rut or at least lead the way.
Sandip Thapa
The only segment that has made headway are the traders, packeteers, and merchant exporters. They buy low and sell high. That premium never returns to the small tea grower (STG) or producer (STP). Thus, many from that buyer segment, flushed with funds, have bought gardens, opened factories, and turned producers. However, the situation is such that they, too, feel the cost vs. poor price pressure.
The old way of doing business needs to be fixed. The sales cycle is far too long, large buyers have cornered the trade, exports usually go to traditional markets, no transparent mechanism for credit disbursal, and no grading or packaging standards innovation. The list of problems is very long.
The need of the hour is a fresh perspective. Green shoots are emerging. Progressive proprietary garden owners have taken the D2C approach and come out with their brands. They are exploring e-marketplaces like Amazon, Flipkart, and even Facebook or setting up their platform and app. Start-ups are directly working with small tea growers, advising them on best practices, plucking standards, and selling those quality teas to consumers while sharing a portion of the premium with the STGs. Many retail start-ups have cropped up and helped the industry by increasing consumption. Taking inspiration from the start-up culture, a few of the old-school plantation agencies have also forayed into tea bars and lounges. And there’s been a gradual shift from regulated auction platforms to private sales. In India, around 55% of total production is sold privately; the rest is through auctions. Private sales will keep growing in the future.
CuppaTrade (CT) is one platform that holistically addresses the industry’s problems. It’s a global B2B marketplace focusing on the entire ecosystem, not just bulk tea. It’s an India-based start-up with global ambitions. Within a short time, many producers across India, Nepal, and even Vietnam have found value in this marketplace. Their buyer base is increasing by 300% every month. The immediate benefit for the producer is that their tea is seen by the whole world and does not remain restricted to just a particular region.
One of the core values of CT is speed. Speed in the transaction process. Speed in arriving at a solution and execution. Speed in customer service and dispute resolution. Speed in listening to stakeholders and introducing value adds. This approach has brought down the traditional sales cycle by 75%. Here, the STPs can list the tea directly from the garden or factory and start receiving interest from buyers who know the ‘Mark’ and do not want to wait to see the samples. Buyers can also buy based on CT’s assessment of quality and cup. Provision is also there for buyers who wish to see the samples first before showing interest. On the other hand, if a buyer has an urgent requirement, she may post the details on the platform, and CT fulfills the same. These features are being offered for the first time in the tea industry through a digital platform. This brings convenience and pace to one’s fingertips.
CT believes small is beautiful. Small is hopeful. The growing segment of small tea producers (STP) makes a huge variety but needs more means and connections to showcase these teas to a large audience. They are hungry and take quick initiative. They listen and act fast. Thus, it’s a pleasure to work with them.
Siddhadevi Tea Estate, Nepal. One of many small tea producers selling bulk tea on the CuppaTrade online platform.
On the other hand, many buyers do not know so much variety exists at several price points simply because no platform or entity has exposed the small tea buyers (STB) to such teas. CT is bridging this gap. The marketplace connects the STP with STB directly. Without any middlemen, the STP enjoys a price premium, and the procurement cost decreases drastically for STB.
Traceability is a huge issue in international markets, where mostly blended tea is sold. The buyer needs more knowledge of whether teas are ethically sourced following correct GI norms. With Blockchain and AR, CT brings the manufacturing units closer to the buyers and provides authentic teas with full disclosure.
Another crucial problem is working capital, both for producers and buyers. CT resolves this issue with a tie-up with financial institutions. STPs are paid a portion of the total tea value as an advance as soon as the CT team inspects the invoiced teas. The rest of the value is paid after the teas are sold. The credit facility is also given to vintage buyers. This is an interesting space that financial institutions can explore further through either Bill Discounting or introducing long-term bonds based on the sold invoices. These bonds could be sold in rich consuming markets like Europe, the US, Middle East. In addition, a portion may be reserved for the stakeholders at a discounted rate so that they have an opportunity to earn secure, healthy profits after the completion of the tenure. This will also result in good behavior and increase stickiness to the platform.
It is high time that we explore non-traditional international markets. For example, Iran buys loads of orthodox tea; however, due to US sanctions has an issue with payments. In such a scenario, Dubai or UAE can be developed as an ‘export hub’ for that region. While tea is directly delivered to the destination countries, payment comes from a secure source like Dubai. Similarly, Canada, Australia, the US, and South-East Asia must be exposed to quality tea, not the tea-bag variety, but the robust, malty Assam or the fragrant, sweet Nepal. This calls for constant interaction, regular seller-buyer meets, a collaborative approach through country-specific associations, and a non-biased platform that gently binds stakeholders with the proper process and technology, addressing everyone’s needs.
Excellent Tippy Teas being sold through CuppaTrade. Left Donyi Polo, Arunachal Pradesh. Right, Siddhadevi, Nepal.
Many innovative approaches are required to take the industry to the next level. Cuppa Trade is doing its bit. Going by the initial response shown by the stakeholders, CT seems to be heading in the right direction.
Tea is a unique beverage. It’s entrenched in our lives. Its longevity is safe. However, as in any Agri commodity, the farmers’ prosperity and sustainability are paramount. Therefore, the tea grower and producer must be paid well before her sweat dries.
And whatever minutes it took you to read this article, know that globally, about 25,000 cups of tea are consumed every second. Every second. Maybe you also enjoyed a cuppa during this time. That’s the magic of this beverage. It’s huge, and it’s unifying.
“Many innovative approaches are required to take the industry to the next level. Cuppa Trade is doing its bit. Going by the initial response shown by the stakeholders, CT seems to be heading in the right direction.”
Millions of urban Chinese will return to their ancestral homes in rural China to celebrate the Lunar New Year, raising concerns about outbreaks and possible labor shortages in tea-growing regions as the spring harvest begins.
The end of China’s dynamic zero-COVID policy is returning vitality to the travel, outbound tourism, restaurant and catering, and entertainment sectors, all of which benefit tea sales. But easing track-and-trace rules also enabled consumers to circulate, leading to a steep incline in viral infections.
| The World’s Top Black Tea Producers Report Export Declines in 2022
Export volume in Kenya and Sri Lanka, two of the world’s top three black tea-exporting countries, declined in 2022. Data is preliminary, and the reasons vary as weather, geopolitics, and pandemic-induced economic setbacks resulted in another lackluster year for trading tea.
| What do We Value about tea, and How Do We Value It? Speakers at the 8th Annual day-long, in-person Global Tea Initiative Colloquium on Jan. 19 at the University of California, Davis, will discuss Tea and Value. Register free at globaltea.ucdavis.edu
| PLUSGrace Farms is introducing a line of ethically and sustainably sourced teas that co-founder and CEO Adam Thatcher says will give back 100% of profits to help end forced labor worldwide – forever. According to Thatcher, “even though slavery was abolished globally nearly a century ago, more than 28 million people are trapped in forced labor worldwide. Poverty and lack of access to education create opportunities for those who stand to benefit from the exploitation of vulnerable men, women, and children. In modern times forced labor takes the form of work with little to no pay, fear and coercion, and restricted freedom of movement.
THIRST has completed its initial Human Rights Impact Assessment in the global tea sector and is now seeking to understand the root causes. Founder and CEO Sabita Banerji says that, “the voices of producers are, in fact, quite rarely heard. They are often blamed for circumstances beyond their control. We just want to understand how it all works, where the levers for change may be, how the current situation might be driving some of the undeniable problems in the tea sector, and what could be done to address those problems.”
Producers: Tell your side of the story. Fill out this form to receive a link to the Global Tea Producers Survey before January 31, 2023.
Listen to the Interview
Sabita Banerji on THIRST’s Human Rights Impact AssessmentSince the inception of the tea industry criticism for low pay and poor living and working conditions for tea workers has been directed primarily at owners. Historically, there were undeniably bad practices – many tea producers have since improved conditions on their estates and enjoy good relations with their workforce, complying with local laws and regulations.
Tea Producers Get An Opportunity to Tell their Side of the Story
Sabita Banerji was born and raised on tea plantations in Kerala and Assam. She has spent nearly 20 years working in ethical trade and international development, holding strategic posts at Oxfam and the Ethical Trading Initiative. Sabita was previously a member of the Board of Directors of Just Change, UK – a voluntary community tea trading initiative.
She co-founded THIRST, The International Roundtable for Sustainable Tea. THIRST launched its Human Rights Impact Assessment of the global tea sector last year. Planned as a three-year study, Phase 1 of the literature review has ended, and Phase 2 is set to begin.
Aravinda Anantharaman: I am eager to hear how the study has progressed so far. First, do you want to debunk some preconceptions about this survey, especially as you have just launched the producer’s survey? Because human rights is a touchy subject and you have often emphasized that THIRST wants to work collaboratively with producers.
Sabita Banerji: You’re right, human rights are a touchy subject. But perhaps if we just think about tea workers and farmers as people like ourselves, mothers, fathers, sisters, and brothers, people who just want to live a decent life, who want to have a house that is safe and waterproof in the monsoon and who can afford to educate their children to a decent standard, and who can maybe have some savings so that if a member of the family falls sick they can get medical attention for them. If we think of it that way, then there’s nothing touchy about that. These are things we all want for ourselves; we all want for anybody that we work with. And I’m sure everybody in the tea value chain wants that for tea workers and farmers if possible.
Sabita Banerji
However, we are working in a system established 200 years ago. And it was established with a certain structure, most of which persists today, and it was established at a time when there were very different moral standards regarding how workers should be treated. And so, we need to look at that, too. We live in an age of the UN Guiding Principles on Business and Human Rights. There will soon be legislation from the European Union on mandatory human rights and environmental due diligence. There are growing demands from customers, investors, and potential employers for companies to demonstrate that everybody working in their supply chain has a life that meets those decent standards. And so, I think that’s the way to look at this issue and not worry too much about the phrase “human rights.”
The two preconceptions I’d like to debunk with this phase of the Human Rights Impact Assessment are the preconception that civil society is somehow out to attack the tea industry and wants to destroy it. The opposite is true. NGOs (non-government organization) and civil society organizations, as much as the tea industry itself, wants the industry to survive. We want it to thrive. We want everybody within a thriving industry to be treated fairly and have a decent life. So that’s the first preconception I want to debunk.
The second one is that tea producers are solely responsible for the conditions in which tea workers and farmers live. They are part of a wider system. In fact, most of the profit of the margin from the sale of tea is concentrated at the packing and retail end of the value chain. So, we shouldn’t be looking solely at producers to try to solve these problems. We should be looking at the whole value chain and trying to discover what everybody within the value chain can do to make life better for tea workers and farmers.
If we were to use the language of human rights, it’s their right to have a decent life. But it’s also beneficial to the industry. There is a business imperative for ensuring that workers are not so unhappy that they are desperate for their children to get out of tea production. And so, just in terms of retention, productivity, and reputation of the tea industry as whole or individual companies, it is important for tea workers to say we have a decent life and for tea farmers to have a decent income.
Aravinda: Was there anything that came up from the literature review that you were surprised by? Also, where were the gaps in the available literature on the tea sector?
Sabita: The two biggest areas where we found gaps in the information were, first, information from East and Southeast Asia. There is much literature out, you know, and a disproportionate amount of literature about Assam and less so, but still quite a lot from Kenya and Malawi. But very little in other areas. And even in other East African countries like Tanzania, many of the resources we found were quite dated. But from countries from East Asia, Southeast Asia, Indonesia, Vietnam, etc., which are very big, major tea-growing countries, there needs to be more literature on what life is like for workers, tea workers, and farmers there. So that’s a gap that we hope will be filled. I have to say that since we were looking at available English resources, there are likely other resources out there, although we have tried to trace those and have not found any more information as far as we know. If anyone reading this knows of resources, reports, and documentation of situations for tea workers and farmers in those areas, I’d be very pleased to hear from them.
The second area where we found that there needed to be more information was about smallholder tea farmers. Because as you know, there is a huge surge in small tea farmers establishing themselves. And in fact, more than 60% of tea globally is now grown by small-scale tea farmers. I just read the news today that APJ (Apeejay Tea Group, the third largest tea company in India) is pulling out of the tea sector in India. Recently, Warren Teas also pulled out of its tea estates in Assam. It looks like the plantation sector is weakening, and the small tea growers’ sector is growing. And therefore, it’s important that we start to document and research, you know, what is happening to the workers and the farmers and their families? Because if there were problems in estates, and I think this is something that estate managers and owners have been telling us for years that yes, they may not have the ideal perfect conditions, but workers have some protection workers on tea estates. In contrast, small-scale farmers are dispersed across huge areas, there is no organization between them, it’s very hard to monitor. It would be very hard for retailers and brands to monitor what is happening within those farms, whether the human rights of everybody within those farms are being met. And so, this is an area where we need to see more documentation of those issues.
Aravinda: Where were the gaps in the available literature on the tea sector?
Sabita: The two biggest areas where we found gaps in the information were, first, information from East and Southeast Asia. There is much literature out, you know, and a disproportionate amount of literature about Assam and less so, but still quite a lot from Kenya and Malawi. But very little in other areas. And even in other East African countries like Tanzania, many of the resources we found were quite dated. But from countries from East Asia, Southeast Asia, Indonesia, Vietnam, etc., which are very big, major tea-growing countries, there needs to be more literature on what life is like for workers, tea workers, and farmers there. So that’s a gap that we hope will be filled. I have to say that, you know, we were looking at available English resources. So it may be that there are other resources out there, although we have tried to trace those and have not found any more information as far as we know. So, if anyone listening to this knows of resources, reports, and documentation of situations for tea workers and farmers in those areas, I’d be very pleased to hear from them.
The second area where we found that there needed to be more information was about smallholder tea farmers. Because as you know, I’ve been that there is a huge surge in small tea farmers. And in fact, more than 50% of tea globally is now grown by small-scale tea farmers. And I just read the news today that APJ is pulling out of the tea sector in India. Recently, Warren Teas also pulled out of their tea estates in Assam, and the plantation sector is weakening. And the small tea growers’ sector is growing. And therefore, it’s important that we start to document and research, you know, what is happening to the workers and the farmers and their families? Because if there were problems in estates, and I think this is something that estate managers and owners have been telling us for years that yes, they may not have the ideal perfect conditions, but they have some protection workers on tea estates. And but small-scale farmers, they are, you know, dispersed across huge areas, there is no organization between them, it’s very hard to monitor, it would be very hard for retailers and brands to monitor what is happening within those farms, whether the human rights of everybody within those farms are being met. And so, this is an area where we need to see more documentation of those issues.
Aravinda: The second phase of survey and interviews is a key phrase, isn’t it, of surveys with producers and interviews with industry stakeholders, particularly workers. What is the expectation of this phase?
Sabita: The second phase is really key. This is the analysis phase. The first phase was assessment, where we documented both how the industry works, what standards are in place, the human rights in principle and in practice. The second phase is analysis, which is the phase we’re in now. The third phase will be action planning, where we bring together international multi stakeholder players to discuss what should be done. And the fourth phase will be accountability, where we try to support the tea industry to monitor those action plans and how effective they are, whether they need adjustment, etc.
So, this is a key phase, this analysis phase. This phase will consist of three things, a producer’s survey, key informant interviews with a wide range of people throughout the tea sector and technical experts in things like international trade, gender, the tea industry as a whole. And the third element will be looking at alternative approaches, you know, what have different players been trying around the world to improve working conditions for workers or how tea is traded, and so starting to put out some potential solutions. But the most important one of those three, I think, is this producer survey. Because producers’ voices are in fact quite rarely heard. People worry that the voice of workers is not heard. And that is a legitimate worry. But there have been this huge number of reports, many NGOs and trade unions and academics, interviewing workers, finding out their position and their point of view and their lived experience. And obviously, brands and retailers are usually happy to speak out. But for producers, it’s harder because firstly, they are often directly blamed for the condition of workers on their estates. And secondly, they are just part of a wider value chain or wider supply chain. They have little control over the prices that are paid for the tea that their workers produce. And they are also under pressure with increasing costs and increasing climate impacts. Which makes it really difficult to run these estates, as perhaps we’ve seen from some of these companies pulling out and a lot of estates closing, leaving workers in a really vulnerable position. So we need to hear the voice of tea producers. We need tea producers to be able to say what pressures they’re under and what would help them to try and address some of these problems. And they need to be able to do this in confidence, anonymously so that there is no commercial risk to them in speaking out in case some of their answers may seem critical of their customers.
And you know, the principle that THIRST works on is that we’re not about blaming any player within the within the tea value chain. We’re not blaming producers for how they treat their workers. We’re not blaming brands and retailers for how they do their purchasing practices. But we just want to understand, we want to understand how it all works, where the levers for change may be, how the current situation might be driving some of the problems that are undeniably there in the tea sector, and what could be done by those players to address those problems.
Aravinda: And, as you said, there’s little available literature on small tea growers. Given the changing models, how will you approach Phase 2 given the differences in how large estates, small tea growers, bought-leaf factories, etc., operate?
Sabita: Yes, you’re right. The tea sector is very complex, at that production level, at every level, but the focus of this survey, we had to be very clear about whom we were targeting. And the issues for small-scale farmers, bought-leaf factories, and tea estates are very different, so it wouldn’t work to try to cover them all in one survey. So, we are targeting this survey at large tea estates; we intend to do surveys on factory workers and small-scale tea producers at some time int he future. But currently, we’re using the Indian government’s definition of a larger estate of five hectares or more and employing over 15 people to emphasize that this survey is not exclusively for India; it’s for any country where tea is being produced. So, all tea producers who meet those criteria are invited and encouraged to participate in the survey.
Aravinda: What are the challenges you foresee?
Sabita: The main challenge is getting producers to participate in the survey. Because over the years and centuries, much trust has been lost between the different players within the tea sector. And it will take time and careful work to tear down those barriers or dissolve them between the players. So, I want to reassure the producer that this survey will be done anonymously. And you can confidently answer the questions so that the responses will not be revealed to anybody. But what we’re going to do is we’re going to aggregate the results. So, a certain percentage of respondents confirmed that in the last year, this is how much of their made tea was sold below the cost of production. We’re not naming any producers. We’re not naming any buyers, brands, or retailers. We’re just going to focus on the generic responses that tea producers give us. But we also have space within the survey for producers to give us more detail if they want to. Again, those responses will be treated completely anonymously. And you know, if there’s anything within it that would identify the state or all their customers, we will not publish that. But it will be extremely valuable to have that information to feed that knowledge and understanding into the next phase where we’re developing. We’re working with the industry to develop an action plan. We invite producers themselves to be part of those multi-stakeholder discussions to be part of the discussion about what role they can play in improving the life and work of the workers, but also what they need from the other players within the value chain to enable them to do that.
Aravinda: How different will THIRST’s on-the-ground research be from, say, audits by certification bodies?
Sabita: The Global Tea Producers Survey is a very, very different thing from an audit or certification standard. Audits and certification checks are just checking up on the producer. Whereas this is asking the producer to say what their challenges are, what their opportunities are, and what their situation is. So the data from this survey will complement what you get from audits. But it is a very different kind of study.
Aravinda: Is there anything you’d like to put out there to producers on why they should participate in the survey, what is expected of them, and how the information will be used?
Sabita: All tea producers, managers, and owners of tea estates in whatever country they’re in should seriously consider taking part in this survey. This is not just a brief few questions; it will require an hour of your time and allow you to put your side of the story forward. THIRST is not about blaming any party for the situation of tea workers and farmers. But the voice of producers has yet to be heard. This is your opportunity. Often producers say that what is reported about them needs to be more accurate. This is your opportunity to give accurate information about managing a tea estate, paying workers a decent wage, and providing decent benefits. So please, please do take up this opportunity. Don’t be afraid, don’t be defensive. Because this is not an attack, this is offering you the opportunity to speak out.
If you agree to take part you’ll be emailed a link. The survey is on Survey Monkey, which we’ve researched and have found to be the most secure. This spring we will aggregate the data we receive and we’ll put that together in a report to try to reflect the challenges that producers around the world are facing and what the situation is really like for them. And then, that report will be combined with our findings from the key informant interviews, and we hope that some of you will agree to take part in those interviews. And it will also be combined with the results of the alternative approaches that we hope to document. So when combined with the Phase One report, we looked at the problem. We look at how the tea industry works, and we will look at human rights in principle and human rights in practice. In Phase Two, we will have looked at the producers’ perspective. The key informant interviews will give insights into what could be driving some of these problems. And then also these alternative approaches, which will show us some of the potential solutions that there might be. And we’ll bring all that together for Phase Three when we invite tea stakeholders from around the world to come together to discuss what they, working together or individually or in groups, could do to address these problems. And thereby not only making lives better for tea workers and farmers worldwide but also strengthening the tea supply chain and improving the tea industry’s reputation.
THIRST News UpdatesHuman Rights Impact AssessmentProgress ReportWomen carrying tea in woven baskets in Turkey
If you manage or own a tea estate anywhere in the world, THIRST would like to offer you the opportunity to give your side of the story by taking part in the confidential Global Tea Producers Survey.
— Sabita Banerji
We understand that issues like price discovery and purchasing practices can be commercially sensitive, and the survey provides for anonymity and confidentiality. We also believe the survey will help tea buyers to better understand the pressures that suppliers are under. Pressures which can impact on workers, creating potential reputational risk to both their brands, and to the industry as a whole. Results will be aggregated and neither producers nor buyers will be publicly named.
Consumers, investors and employees around the world are increasingly demanding higher social and environmental standards for those who produce goods and services. To meet that demand in the tea sector, everyone involved needs to explore how they might be unintentionally suppressing workers’ pay and conditions, including tea producers, governments, trade unions, tea buyers, brokers, packers, traders, brands, retailers and tea consumers.
By working together, THIRST believes that a new kind of tea industry is possible – a tea industry fit for the 21st century, a kinder, fairer industry in which everyone thrives. But we can only get there if we listen to all voices, and understand all perspectives – including those of tea producers.
Anyone who’d like to participate in the survey should go to THIRST’s website: www.THIRST.international Scroll down to see a link to the producer survey to register. And we very much look forward to hearing what producers worldwide would like to share about the realities they are facing.
To register and complete the survey, please fill out this form before 31st January 2023.
Andrew McNeill, Business Development Director at Seven Cups Fine Chinese Tea, says that stay-at-home tea drinkers exploring specialty teas are eager to share the experience of tea discovery face-to-face. In December, the 20-year-old tea merchant and tea house relocated to a 2200 sq. ft. combination tea shop, tearoom, warehouse, and online fulfillment center.
Caption: Kai Steerman, left, enjoys a tasting led by Zhuping Hodge
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Seven Cups Fine Chinese Tea Business Development Director Andrew McNeillA tea oasis in the Arizona desert
Seven Cups Tea House Carefully Crafts a Cultural Experience
Seven Cups Fine Chinese Tea is typical of well-established shops that survived the pandemic. The direct-trade retailer is 20 years old, located in a second-tier city, and generates revenue online and in-store from packaged sales, tea service, and wholesale supply to coffee shops, cafes, hotels, and restaurants.
Packaged tea has fared well since 2019. A spike in sales has jammed tea cupboards with direct-from-origin and exotic teas purchased online. The growing consumer preference for better-tasting tea favors retailers with quality selections, including herbal infusions. Retailers are remodeling to promote in-shop sampling as it encourages social interaction and repeat business among enthusiasts eager to explore new origins and styles as they learn from experts.
Seven Cups founder Austin Hodge says, “The business model of our tea house has always been to provide an authentic and high quality product and customer experience. We see the opportunity to expand our tea house is a validation of this model. We firmly believe that high quality tea isn’t just compelling to a niche market of connoisseurs, it’s readily enjoyed by everyday, working class people.”
“When you enter a traditional teahouse, in China or Tucson, you step into a cultural experience that separates you from your daily problems. It’s a teahouse tradition for tea drinkers to be treated with respect and dignity, whatever their outside problems might be,”says Hodge.
Dan Bolton: Every successful retailer has plans to expand to a new 2200 sq. ft. location. What led Seven Cups to relocate?
Andrew McNeill: So, for us, it was realizing that we were hitting a point where we were at capacity. We realized about five years ago that we had to start making a plan. We were sharing a strip mall with several other popular businesses, and it’s great to have the exposure to being next to other popular businesses. But if people can’t park there, it’s a problem. And being there for 20 years, we realized that if people hadn’t found us yet, in this location, they probably weren’t gonna find us.
We were fortunate in that we had enough of a unique draw in our local area, where people sought us out from far away. We weren’t dependent on foot traffic to drive business and awareness. But that said, after moving to a location with better visibility, we’ve already seen an enormous response.
You can do everything right with your social media, tending to your tribe, and getting the word out in your community; these are all great and worthy things to do. But finding the right location that’s going to be visible and accessible to your customers can’t be substituted.
So, location still does matter.
Dan: Did you decide to buy or lease?
Andrew: We moved from being a renter to a buyer. And, of course, the advantages of being a renter versus an owner will depend on where a business operates. In our case in Tucson, we saw pretty strong advantages to being an owner, especially with rents increasing; given the economic climate in the last three years, it was clear at the time. Things are shifting now, as they always are, but it was time to move in terms of favorable lending conditions and property valuations.
That said, we spent a long time finding this place. It was a unicorn location. We knew we were looking for something unusual. In our case, a big part of what we wanted was to consolidate the wholesale and online fulfillment with the tea house. There are obvious advantages and efficiencies in getting your operation under one roof. The challenge there, of course, is that there are very few tea house-restaurant-retail spaces and slash warehouse-office spaces in one building. You must build to suit, to create something like that.
Ultimately, the property that Austin found was an off-market building, a market space that had been abandoned since the 80s. It was not listed. Our realtor did us a real favor by proposing an offer to the owners.
Starting negotiations that way, we were fortunate to find a space that could be reshaped into exactly what we needed.
Dan: COVID created new consumer behaviors leading shops to adapt. Your business does an amazing job educating customers and introducing them to suppliers and producing regions. Will you talk briefly about how this new shop accommodates online buyers and how you approach teaching with sampling?
Andrew: I think we’re still in the midst of that change. During COVID, we’ve accumulated a lot of stuff. And our consumer experiences have been focused on the home and consumption in the home, the individual, and the family.
And so we’ve gone from buying stuff to buying experiences. When you’re building out a retail space, it’s very important to focus on the experience and the experience of the product. This is something that, for us, historically, has been the case in our tea room, in the decades past, is been only a small part of our business, but it’s been an integral part of our business. Because what it is and what it provides is that experience, it’s a guided experience in an environment conducive to it.
When people experience the possibility of what tea can taste like and what satisfaction it can provide when brewed with intentional and beautiful surroundings, this ultimately drives a whole customer lifecycle that we wouldn’t have otherwise.
Regarding parts of our business, the tearoom is just about 10 or 15% of revenue. So, it’s not a significant part. But the marketing power of providing this experience for folks, that face-to-face interaction with your customer, and the feedback given back to us as a business is invaluable.
We certainly missed that during COVID. And we’ve seen that people coming out of the pandemic haze are interested in having that interaction from the consumer side. So, we’re happy to be in the fortunate position of opening a new Tea House experience when people are just becoming more comfortable coming out and seeking such experiences. Of course, it’s got to be great; it’s got to satisfy those expectations both in terms of the educational experience and the sensory experience.
Dan: Tell us about the tasting experience.
Andrew: Tasting is a central part of the experience; there’s a tearoom, but there are also individual tasting tables. So, these tables are not a place where people would sit down with their own tea, but where they would sit down with the shop owners or some of the staff to have a conversation and chat about tea. And, of course, that conversation is an organic educational experience where people can come up with their own questions. That drives the discussions and the whole experience of tasting this tea and understanding what’s behind it. Of course, it helps us that education flows the other way because we understand how consumers enjoy this tea. We’ve built out places in the new store for people to have those conversations in different parts of the building.
Dan: How many tasting tables are there in the store?
Andrew: So we have three different tea tables. The tea room itself is about 700 square feet, which is about the same as we had in our old space. The added space gives us a little more flexibility on where we placed the retail section of the business. In the old store retail sort of ran through the tea room, so you could be having your tea experience in the tea room and people would be walking in back of you along the walls looking at teapots. Here it’s a little more of a private experience. There’s a clear separation between the retail area, which takes up about 500 sq. ft. and the tea room. And so people feel a little more comfortable with getting up close and personal with teapots and jars of tea, while having conversations with our staff over the retail items.
Simultaneously it makes the tea experience when you’re sitting down all that more special and private and focused.
White Crane Yixing Teacup | $150Gift Bundle | $60Hei Tiao Zi – Sheng Puer Cake | $68Since 2002, Austin and Zhuping Hodge have traveled to China, developing long-lasting relationships with suppliers and partners to share with customers the finest and freshest Chinese tea with the world.
“People want to have an intentional, amazing, profound experience every time. If you create that brush with the sublime with your products, service, and relationship with your customer, you’re really in tune with what folks want.”
— Andrew McNeill
Dan: Let’s talk about innovations in the back end of the store.
Andrew: Wholesale is not the profit leader of our business. It comes along with online retail, the tea house, part of a broad revenue mix. So, for us, that makes consolidation more important because we’re all serving multiple roles. You can have conversations not only with different people but with different people as they’re serving different roles. It is also very valuable in terms of efficiencies for building out the wholesale part. A free-standing building enabled us to build the ventilation and cooling system to suit tea storage. It’s of utmost importance to take care and preserve the quality of the tea from season to season. We’re a vendor that focuses on one lot per year. We do not blend 2021 tea with teas from 2022. Selling is seasonal, dated by year, so you must ensure the tea is holding up. As tea ages, people are going to know that it’s aging. We make sure that we’re doing our best to preserve its quality. A freestanding building also means there are no intrusions of smells that will contaminate, there’s no flavor creep from, say, other products that are around. It also gives us the advantage in terms of compliance to have one FDA-inspected facility instead of two, same for health department inspections locally. Being able to focus on getting things just right was one of our build-to-suit goals
Dan: Online you offer an interesting version of sampling option.
Andrew: As fresh tea arrives; we offer graded samplers. This is an experiential product. This year we did five different grades of Longjing (Dragon Well) from the same factory. These teas are grown in the same garden, harvested during the same season, and processed by the same tea maker. You can taste the differences from the earliest pluck of their premiere, early spring Ji Pin (ultra grade) Da Fo Longjing (2022), and compare as the season progresses, tasting how the leaf changes and how differences in plucking and processing change as the harvest progresses. You can brew each tea separately for casual drinking or compare different teas side by side to calibrate your taste buds.
Tasting tables in foreground, retail display at right, tea room in rear.
Dan: Younger people coming to tea are seeking distinctive taste. I tell people it’s as simple as this; your grandmother drinks tea — her grandsons and daughters taste tea. She seeks consistency in a brand that spans 50 years of her life. Her grandchildren are looking for something novel, identifying flavor notes and asking, where was it grown? How was this tea made? Why does it taste this way?
Andrew: Yeah, they are looking for an experience every time. I think that’s an excellent way of putting it and describing the generational shift. Many younger consumers are not drinking a whole lot of tea. We have a subscription service, and people said, “this is great, my only complaint is I’m getting too much tea.’
People want to have an intentional, amazing, profound experience every time. If you create that brush with the sublime with your products, service, and relationship with your customer, then you’re really in tune with what folks want.
There’s a sophistication with the consumer now since people can learn so much so fast about the supply chain. They will ask those questions to satisfy their own moral, philosophical demands for an ethically managed supply chain, but also to satisfy the sort of epicurean desires of being able to taste the terroir, the provenance of this product.
With people coming in who have a high degree of knowledge, what they’re looking for is not only answers to those questions but a conversation around those questions. So it’s not just being able to provide that information but being able to have a conversation around that information.
Because people are used to having this conversation, say on social media and over long distances over the internet, and getting this information directly from growers when they come into their local tea shop, they want to be able to continue sharing their own preferences and learn more about your own sourcing approach and just delighting in a conversation about something that both of you love.
Discover the wonders of Chinese tea as you taste a selection of high-quality teas featuring different origins and processing methods. Learn about different types of tea and their traditional health benefits. Great for parties and special events (baby showers, client/employee events, birthday parties, graduation parties, cultural experience days, etc.). Light snacks will be served with tea (1 snack per person included in the price).
Cost: $18 per seat (minimum 6 seats, maximum 30 seats per event, no child pricing), 18% minimum gratuity not included Length: up to 90 minutes.
This fascinating book illuminates the all too often overlooked tea region of Ceylon, present-day Sri Lanka. The authors draw on the letters of James Taylor, pioneer and founding father of the Ceylon tea industry, to explore the life of a Scottish migrant who, through experimentation and determination, forged a new industry out of the ruins of the coffee blight. This uniquely complete collection of correspondence reveals this pivotal time in tea history through the eyes, thoughts, and actions of a key player. Some of the standards (two leaves and a bud) and machines that Taylor developed are still in use worldwide today.
We learn about the decline of the former plantation crops over several years and the fight to find a viable replacement: tea. James Taylor’s letters home to family, to local friends, and newspaper articles of the time are explored and expounded upon by the authors to offer a historical account by someone for whom the creation of tea was not just a vocation but an avocation too. Uniquely the story is told “as is.” That is to say, it is told in and of its time with explanation and exploration of the who, how, and why things were as they were, centered around the direct views, thoughts, and experiences of James Taylor. Unlike other works that look at this period, this book seeks not to offer judgment or rear-view mirror thinking but merely to show us what was happening at the time and why. First-hand accounts serve to explain and illuminate the period and the people as they were, as they lived, as they thought and spoke. This is the story and experiences of one man who lived through and shaped the birth of an industry. Not because he set out to change the world or get rich but because he was there because he worked with and in response to the situations, the place, and the time in which he found himself.
More broadly, this book also explores the legacy of Scottish education and the thought that the Scottish diaspora played such a significant role in the colonial world, particularly in Ceylon. It also looks at the legacy and, indeed, rediscovery of the legacy of James Taylor and his place in both the history of Sri Lanka and the Ceylon tea industry.
Although interesting, thought-provoking, and generally engaging to read, there are times when the reading can be a bit dry. Perhaps a case of two different writing styles. But push through those dry bits, and you’ll be riveted by the fascinating history within. TeaBookClub members agree that this is an essential book on your tea bookshelf that explores important tea history.
I’m really glad I read as much as I did, it seems like it’s very important history in the history of tea. – Audrey, USA
It being a first-hand account is what really made it interesting – Michaela, Austria.
I found it refreshing that the authors didn’t give Lipton much airspace. This was a book about James and what he did, achieved, and his life. I really appreciated that within the context of Ceylon at that time. – Taraya, Canada
It had very interesting and very boring parts but overall very good to read. Some parts were easier to read than others, maybe because there were two different writers. – Mariella, Netherlands
Fascinating that some of his machine designs are still being used today – Mariella, Netherlands
Based in the UK, The Tea Book Club is an international group of tea lovers and readers who meet up virtually every month to discuss tea books. If you’d like to join us for the next read, visit teabookclub.org or @joinTeaBookClub on Instagram.
Tea & Empire
Goodreads: This book brings to life for the first time the remarkable story of James Taylor, ‘father of the Ceylon tea enterprise’ in the nineteenth century. Publicly celebrated in Sri Lanka for his efforts in transforming the country’s economy and shaping the world’s drinking habits, Taylor died in disgrace and remains unknown to the present day in his native Scotland. Using a unique archive of Taylor’s letters written over a 40-year period, Angela McCarthy and Tom Devine provide an unusually detailed reconstruction of a British planter’s life in Asia at the high noon of empire.
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