The Colombo Tea Traders’ Association and Sri Lanka Tea Board will host the Colombo International Tea Convention (CITC) at the Cinnamon Grand Hotel from July 24 to 26.
The convention theme is “Tea: A Lifestyle & A Livelihood.” The event will explore Ceylon tea’s pivotal role, spark conversations, and inspire action toward a sustainable tea industry.
The program includes 50 speakers and will unfold in eight sessions over three days. Events include an outcry auction, gala dinner, and beach party on closing night. A Ceylon Tea Tasting Experience will introduce attendees to Sri Lanka’s growing regions.
Sessions include “Fair Price as a Global Challenge,” a topic of utmost relevance in today’s tea industry; an “Ozone Friendly to Zero Carbon” session on climate; and a conversation about the “Value of Tea.” Sri Lanka has emerged from financial, political, and social turmoil, addressed in a session on “The Resilience of Tea & Its Legacy.”
BIZ INSIGHT — I will moderate the Friday discussion on “Innovation,” which features a panel of ag technology experts presenting innovations such as streamlining financial transactions, online markets, new traceability tools, digital identification, and cloud-based analysis of tea as a service.
Colombo International Tea Convention | Episode 161
Usambara Tanzania 2023
Dan Bolton
Dan is a niche content creator who fosters genuine connections globally through informative, educational, and captivating conversations centered around tea. Host | Tea Biz Blog | Podcast
The Telegraph reported that the Assam Bought Leaf Tea Manufacturer’s Association unanimously opposed the tea board’s order for 100% of dust-grade tea to be sold via the auctions. Their view is that their existing sales mechanisms bring higher price realization when compared with auctions. The members also opposed the demand on the Bought Leaf Factories to test all the green leaf sourced and tea produced at their factories for food safety compliance, stating that the use of chemicals and pesticides was by the grower and not at the factory. They have also said they will cease manufacturing operations starting 1st April 2024 to protest against the non-compliance of green tea leaves.
Assam to See a Significant Drop in First Flush Production
North India has been seeing a dry start to the year, which has impacted tea production. The first flush plucking expected to begin in early March has been delayed due to lack of rain. Media reports quote planters as saying the crop will be about 40% lower than average production for the season. Assam production in March 2023 stood at about 34 mn kilos. All eyes are on April to see if the first flush will meet expectations. Darjeeling, Sikkim, and Kangra have also had a late start to the season because of prolonged dry weather.
HUL Offers Interventions to Support Indian Tea
Hindustan Unilever, which owns tea brands Brooke Bond, Taj Mahal, and Taaza, partnered with the Tea Research Association of India to promote regenerative agriculture. HUL and TRA plan to undertake a “Life Cycle Analysis” to develop strategies to reduce carbon impact. This will cover 19 tea estates/factories and 19 small tea growers across 15,000 hectares in Assam, West Bengal, Tamil Nadu, Kerala, and Karnataka. HUL is also expected to invest in Assam to enhance value addition in tea. Economic Times
India mandates that all tea dust must be sold at auction
NETA Opposes 100% Dust Auction
Kamal Jalan, Chairman of The North Eastern Tea Association (NETA), spoke on the challenges facing the Assam tea industry and the way forward. The Association, which held its biennial general meeting in Golaghat, Assam, on March 13, has spoken against the latest government order for 100% of Tea Dust to be sold via the auction system, calling it detrimental to the industry’s survival. They also raised the issue of food safety compliance, calling for greater awareness among small tea growers, increased testing and facilities needed to conduct tests at factories, and a roadmap towards achieving 100% compliance with food safety standards. They also raised the issue of stopping tea production in winter, which is now practiced in north India. The Association has said they do not favor reducing production but instead focus on the generic promotion of tea in the domestic market, aiming for per capita consumption of 1 kilo.
Safe Tea Comes into Focus
Indian tea is seeing a renewed and determined march towards food safety. After coming under constant flak, 2024 opened with the Food Safety Standards Association of India, calling for more compliance and partnering with the tea board to see how this can be effected. It’s good to see it in action. Last week, the FSSAI led a training session in the Nilgiris on safe and hygienic tea production practices for small tea growers. In North Bengal, the domestic certification body Trustea partnered with the association of small tea growers for training on pest control, soil health management, and pesticide use.
India Sends Delegates to Iran
Iran, once a big buyer of Indian tea, has ceased to import the same volumes as before. The Mint reported that tea shipments to Iran have dropped from 54.5 mn kilos in 2019 to 5.2 mn between January and November 2023. Iran is still considered an important export market; a trade delegation is planned to dialogue with Iranian authorities. Shipping disruptions and payment challenges aside, Iran had an internal crisis in November 2023 when tea importer Debsh Tea Company was embroiled in a $3.4 billion embezzlement scandal. India’s tea exports to the UAE dropped 25% from 2022 to 2023.
Why is First Flush Tea so Tasty? Metabolites | Oversupply Threatens Kenya’s Harvest Windfall | World Tea Expo: An Infusion of Fresh Ideas Opens this Weekend | PLUS Tea Revolution founder Annabel Kalmar describes the DNA of a purpose-driven venture.
Annabel Kalmar, founder of Tea Rebellion, a small direct-trade single-farm tea retailer, describes the DNA of a purpose-driven tea venture and the challenge of changing how tea is traded, marketed, and consumed. She says the goal is to be a sustainable, transparent, award-winning tea brand. Tea Rebellion, founded in 2017, does not sell blended or flavored tea. Farms are co-branded, and marketing draws attention to the farm and identity of growers. “To affect change, we need to credit the maker of the product,” she says. “To drive impact, I choose to work with tea farmers with a clear goal of sustainability and impact in their communities. Several of these farmers are female-run or committed to the empowerment and well-being of women,” she says.
The allure of first-flush teas has inspired poets for centuries, but what of the science?
Scientists are rhapsodic, too.
In spring, the buds of high-mountain teas burst with amino acids. Tea leaves contain significantly more carbohydrates, flavonols, and polyphenols in summer and autumn.
According to a 2020 study published in Food Research International, flavonoids and flavonols (the good-tasting, good-for-you compounds), catechins, and amino acids abundant in spring leaves showed sharp seasonal differences. The researchers concluded that harvesting time was one of the most critical factors affecting metabolites most closely related to the quality of green tea.
A team analyzing young translucent Anji Baicha leaves plucked on March 6 found their leaf chemistry significantly differed from leaves from the same plants plucked on May 10. The analysis, which combined liquid chromatography and mass spectrometry (LC-MS), was found to “assess tea quality objectively and reliably.”
Since then, the research has been used to ascertain optimal harvest dates to take advantage of tea’s multiple health-promoting effects, primarily attributed to its secondary metabolites, including polyphenols, amino acids, caffeine, and other compounds.
Last year, Chinese researchers using the same technique found that they could distinguish all six categories of tea by calculating differences in the accumulation of signature compounds.
The study involved 1,329 leaf samples collected from every major tea-producing region in China. Most of the samples (1,146) were green teas, but categories included white, yellow, oolong, black, and dark tea. The concentration of chemicals revealed the geographical origin and harvest period. For example, in early spring, green teas from Jiangnan contain China’s highest concentration of theanine and free amino acids. Researchers employing fluorescence spectroscopy found they could identify and differentiate black tea from distinct tea gardens. Their work was published in the journal Food Chemistry in January.
BIZ INSIGHT—The studies found that fermentation significantly reduced total polyphenols, catechins, and theanine content. Tea masters intuitively know this after decades of manipulating these compounds using various processing techniques to enhance aroma, umami, and overall taste. Now, they can better source raw leaves that contain the raw compounds needed to produce a specific tea. The research also allows for verification of the varietal, harvest date, and locations specific to each garden.
Kenya Tea Growing Counties
Oversupply Threatens Kenya’s Harvest Windfall
Kenyan tea exporters sold 523 million kilos in 2023, earning a record Sh 180 billion ($1.23 billion). However, oversupply due to favorable weather, subsidized fertilizer, and aggressive plucking threaten to undermine black tea prices globally.
Tea exports are in decline, and bulk tea prices are falling. The World Bank forecasts tea prices will decline 2% in 2024. The Economist Intelligence Unit (EIU) expects “prices to weaken to an average of $2.75 per kilo in 2025.”
Greenleaf production rose 15% among Kenya Tea Development Agency (KTDA) smallholders from June 2023 through January. Unit prices are up 13% to Sh 345 per kilo, rewarding growers with a record bonus.
But the windfall is more closely tied to currency fluctuations than demand. Slowing economies, sanctions, and war globally contribute to auction warehouses bulging with staling tea.
According to the East Africa Tea Traders Association (EATTA), 40.7 percent of the tea on offer remained unsold in 2023. Traders normally buy 75 percent of Kenya’s annual harvest at auction, but demand is unusually low, forcing the country to consider abandoning a $2.43 per kilo minimum price established in 2021.
Kenya stands out as the only country among the top five producers worldwide to see gains in volume and value. China reported a second year of declining export sales to $174 billion. In Sri Lanka, export value increased due to high unit prices, but volume continued to decline. India also saw declines in volume and value. Turkey, the world’s fifth-largest tea-producing country, reported tea production declined to 275,000 metric tons. Tea exports were up but amounted to only $25 million in 2022-23.
Unlike China and India, Kenya’s domestic tea market is relatively small, making Kenya the world’s top black tea exporter, even though India produces much more significant quantities. East African tea-producing countries export more than 90% of the teas grown there. Kenya exports 95% of its tea, of which only 10% is blended and packed.
The big surge in value did not significantly increase unit prices. Auction price averages fell in 2023 compared to 2022. Earnings surged by almost a third (31%) on volume that grew by 72.5 million kilos from the 450 million kilos sold in 2022.
The full-year price average was 10% lower in 2023 than the previous year “largely because we believe that market surpluses have been large in recent years and that stock levels are therefore high,” writes EIU.
BIZ INSIGHT – Ten years ago, Kenya experienced a similar bubble, which soon burst. Acreage under tea grew by 45%, and production jumped by 25.8% between 2003 and 2012. In 2014, the Mombasa auctioned a record 400,000 metric tons with little left unsold. The monthly volume approached 35,000 metric tons during peak months, with only 2,000 tons unsold. The global tea surplus reached 130,000 metric tons the following year as Kenyan production reached new highs. Shortly after, Greenleaf prices plummeted to 35 cents per kilo, down from 55 cents per kilo in 2012. Tea profits at plantations across East Africa fell by 30% when the pricing bubble burst.
World Tea Expo | North America’s Biggest Tea Industry Tradeshow
World Tea Expo: An Infusion of Fresh Ideas
The World Tea Expo returns to Las Vegas Convention Center this weekend through March 20.
The annual event draws worldwide attention to a North American market that fosters innovation and rewards quality-conscious producers who export specialty grades. The event is co-located with the Bar & Restaurant Expo.
It all begins Sunday with a meet-and-greet at the Las Vegas Convention Center. Sessions on Monday include the Tea Business Incubator, which is a must for tea retailers. This year’s program is immersive, with a new Tea Primer Certification and hands-on demonstrations essential to understanding tea’s organoleptic qualities. Kevin Gascoyne’s Rare Tea tasting is a fantastic opportunity to experience the “qi” in tea.
Tea educator Sharyn Johnston is hosting a reunion of Tea Academy graduates at the NxT Stage on Tuesday afternoon.
Tea Biz will be on the floor for live podcast interviews with attendees and exhibitors at the International Pavilions. Exhibitors include several Chinese, Sri Lankan, Korean, Japanese, and African tea suppliers.
I will also be hanging out at the Tea Bar to taste winning teas from the beverage challenge and with keynote speaker and good friend Jeff Fuchs on Tuesday from 1 to 2 pm.
Look for me at the Azilo Ultra Lounge at the Sahara on Tuesday night from 6:30 to 8 pm for the tea industry happy hour.
Say my name when passing on the South Hall floor, and you’ll receive a free full-year subscription to Tea Journey magazine.
BIZ INSIGHT—I’ve attended this show for 20 years as a journalist, speaker, panelist, presenter, exhibitor, and attendee. Every year, I learn something new and treasure the opportunity to mingle with a vibrant community of tea professionals.
FEATURE
Annabel Kalmar, founder Tea Rebellion
Tea Rebellion: Anatomy of a Purpose-Driven Brand
By Dan Bolton
The “B” in B Corp signals “Benefit” for all. In tea, that means an inclusive, equitable, and regenerative economic system for everyone and the planet. There are fewer than 9,000 B Corps globally.
Annabel Kalmer says, “Incorporating the B Corp stakeholder considerations into our Articles of Corporation for the UK and Canada ensures that our environmental, social, and governance commitments are firmly embedded in our corporate structure.
The goal is to be a tea brand for sustainable, transparent, award-winning tea. Tea Rebellion co-brands with farms and does not blend or flavor tea.
“We remain firmly wedded to our original Tea Rebellion DNA,” says Annabel, who has a master’s in economics specializing in micro- and rural finance. She previously worked for the World Bank and the OECD. She returned to academia to study agriculture, focusing on environment and gender. Her fieldwork included studying female banana growers in El Salvador and coffee farms in the Dominican Republic. To drive impact, I choose to work with tea farmers with a clear goal of sustainability and impact in their communities, several of which are female-run or committed to the empowerment and well-being of women.
Why is First Flush Tea so Tasty? Metabolites | Oversupply Threatens Kenya’s Harvest Windfall | World Tea Expo: An Infusion of Fresh Ideas Opens this Weekend | PLUS Tea Revolution founder Annabel Kalmar describes the DNA of a purpose-driven venture. | Episode 159 | 15 Mar 2024
Kattabettu INDCO Tea Factory, established in 1976, was recently refurbished.
ITA & Goodricke Group Announce Appointments
The Goodricke Group has appointed Arun Narain Singh as the Managing Director and CEO, effective March 6, 2024. This appointment follows the resignation of Atul Asthana last month. Mr Singh has held this position and most recently has been Founder Trustee of Tea Vision, an industry think tank building a common platform for multiple stakeholders in the tea industry and to be the industry’s voice.
The National Committee of the Indian Tea Association (ITA), meeting on March 12, announced the appointment of Hemant Bangur of Shri Vasupradha Plantations as Chairman, Suneel Singh Sikand, CEO of Rossell Tea, as Vice Chairman, and Atul Rastogi, Director of Luxmi Tea, as Additional Vice Chairman of the Association. Founded in 1881, the Indian Tea Association, headquartered in Kolkata, is India’s oldest organization of tea producers.
INDCO in the Nilgiris Gets a Tourism Boost
Tea tourism comes into focus in the south as well. In the Nilgiris, INDCOServe tea cooperative is set to receive Rs 7.4 crore (approx USD 900,000) to convert its Kattabettu tea factory into a tea tourism hub under the Tamil Nadu Innovation Initiatives plan. The funds will be used to create a living tea museum that will house various tea plants and allow visitors to see how tea is made and taste different teas. Both tea and tourism are essential to the economy of the Nilgiris, and this move is seen as a boost to that. INDCOServe is the largest tea cooperative in the country, with 30,000 small farmer members and 16 factories in the Nilgiris.
