• COVID’s Toll

    COVID's Toll on India's Tea Estates
    India’s tea industry is excempt from lockdowns but there are limits on workers in factories and masks are mandatory.

    COVID-19 2nd Wave Strikes Blow to Rural India

    Rural India is home to 895 million of the nation’s 1.35 billion people, most of whom live in small villages and towns.

    Last year the coronavirus pandemic plunged India’s economy into a recession for the first time in nearly a quarter of a century. Domestic consumption decline so severely that the economy contractedd by an estimated 7.7% according to the OECD’s Economic Outlook 2021.

    Agriculture accounts for a third of India’s gross domestic product and tea production, tea exports and tea retail all suffered. Agrarian workers, however, were largely spared the high death counts experienced in the nation’s cities.

    That is no longer the case as the COVID 2nd Wave crests. India’s tea industry employs 3.5 million workers who reside in small homes and are reliant on crowded vans for transport, resulting in much higher rates of infection this spring than in 2020.

    Although the tea industry is designated essential and therefore exempt from the strict lockdowns ordered in 2020, containment zones are in place at more than half of Assam’s 800 registered gardens. A combination of dry weather and reductions in labor due to COVID restrictions depressed harvest totals during the first six months of 2021.

    The situation is less dire in the Nilgiris following a major push by Minister for Medical and Family Welfare Ma. Subramanian. The state ministry prioritized tea workers and reported June 28 that all tea estate workers and factory workers have received a first shot and that 21,500 of 27,500 tea workers in tribal communities had been vaccinated. The ministry has vaccinated 289,000 individuals to date and will soon begin administering booster shots.

    Situation summary

    • Daily wage earners face reduced hours and fewer work days harvesting and processing tea. Declines of INRs 250-500 daily are common. As a result, many now find it difficult to meet daily food and loan obligations. Pay varies by region and there are incentives for the most productive workers, but wages are low at INRs 7,000 ($96) per month.
    • Testing is inadquate. Rapid antigen tests are available but workers, most without vehicles, must travel long distances to testing centers. Traffic restrictions limit travel between districts.
    • Hospitalization is expensive. Sugarcane grower Dattatray Bagal, told The Economic Times that a hospital bill of INRs 820,000 ($11,191) to care for his father, who died of COVID-19, “not only exhausted our savings but also forced us to borrow from relatives.” Some farmers were hit so badly that they don’t have money to buy seeds and fertilizers to plant summer-sown crops such as corn and soybean, according to the newspaper.
    • Accustomed to malaria (6.7 milllion cases in India, 9,620 deaths annually), tuberculosis (440,000 deaths annually) many workers are far more fearful of diseses they know. Mandatory quarantines and isolation during hospitalization lead to rumors that once someone is taken away, COVID victims never return.
    • Hospitals in the tea growing regions are small and generally equipped to provide only first aid and basic medical care. Few are staffed with full-time doctors and nurses. Medicines for fever, headaches, stomachaches are in short supply.
    • Many who fall ill restort to home remedies, fearful they will be sent to a COVID Care Centre (mandatory in Assam). Standard contact tracing often identifies family members who work at the estate, as well as neighbors and friends of those who test positive, leading to 15-day quarantines and loss of wages.
    • Tea workers do not receive paid leave. Central and state governments have issued pandemic guidelines for paid leave. West Bengal’s Department of Personnel and Training instituted its paid leave policy June 7. Categories include commuted leave, special casual leave, earned leave, half-pay leave for any government worker who tests positive for COVID. Tea Estates are asked to consider the same.

    Christian Kharia, who lives at Nagasuree tea garden and is the president of the UBCSS (Uttar Bangal Chai Shramik Sangathan) said that “People in the tea gardens are very casual about COVID. They treat it like any other sickness. People are not following COVID protocols.”

    Workers Face Long Term Financial Setback

    In India, in 2019, there were are an estimated 138 million subsistence households earning $1,000 to $5,000 a year, ($85 to $400 per month), according to Statista. The impact of COVID-19 on household income will slow that growth due to lost hours and a significant decline in commerce due to lockdowns.

    Prior to the pandemic, income growth was projected at 5% in rural India with the lower middle class expected to expand to 131 million households earning $5,000 to $10,000 annually by 2022, up from 92 million households in 2019. The 30 million rural households earning $10,000 to $25,000 were estimated to grow to 48 million by 2022, according to Statista market research.

    The pandemic dashed that promising outlook, taking its toll in every sector.

    Deaths Due to COVID-19

    COVID-19 ImpactAssamWest BengalKarnatakaKeralaTamil Nadu
    Population (2020 in Millions)35.99729696.78684868.809637.9612888.32544
    Population Density (per k2)3971,029 320860550
    Tea Garden Workers (registered)
    Tea Smallholders1.3 million
    Infections (curent)39,837
    Confirmed Cases (total)466,590100,437
    Positives per 100 tests (Positivity)
    COVID Deaths4,0387,663
    Compiled from state and territory COVID websites. Click link to view source for latest updates. | Updated 1 July 2021.

    Assam

    Update 6-29: Assam is reporting that a high percentage (12%) of those testing positive are young people under 18 with 5,778 under five years of age, according to the National Health Mission. Deaths number 34 since April. During the second wave 280,504 have so far tested positive in Assam. The Deccan Herald writes that 28,851 of those who tested positive were between the ages of 6-18 years.

    Dibrugarh reported 2,430 cases among children, which was 12.19% of total cases. Nagaon was third with 2,288 cases (14.38%) followed by Kamrup (2,023) and Sonitpur (1,839). During the first wave, 8% of those who tested positive were younger than 18 years, according to the National Health Mission.

    Update 6-28: Vaccination sites are active at 415 tea estates as of June 22. In Assam 99,701 tea workers have received a first shot and 6,027 have received a second shot. A total of 508 tea estates reported COVID cases. Those with 20 or more were ordered to designate containment zones and activate COVID Care Centres.

    During the period May 18-28 Assam recorded a 300% spike in COVID cases, according to Bidyananda Barkakoty, adviser at the North Eastern Tea Association (NETA). He said that the number of workers in the factory and fields was reduced by half. Workers who tested positive are forced to stay at Covid Centres to prevent spreading the virus to their families.

    OVERVIEW

    Assam’s 800 registered tea estates and 1.3 million smallholders produced 725,000 metric tons in 2019. Last year Assam’s big gardens produced 336,000 metric tons and smallholders produced 290,0000 metric tons for a combined 626,000 metric tons. Production is expected to decline by 20-25% as a result of dry weather and COVID mandates that reduce the first flush production by 60,000 metric tons. About 18% of Assam’s population works in tea.

    Assam (Tea Estate Workers)

    LocationTea Workers
    Active Cases
    Tea Wokers
    Total Cases
    Tea Workers
    Recovered
    Deceased
    Tea Workers
    DibugrahN/A N/A N/A
    Jorhat N/A N/A N/A
    Guwaharti N/A N/A N/A
    xxxx N/A N/A N/A
    Total2,81713,22910,410 102
    Source: North Eastern Tea Association (NETA) | 2nd Wave March-June

    Tamil Nadu (Nilgiris)

    Updated 6-23 Active cases stand at 6,895 for the Nilgiris. The state government has also placed Nilgiris on the priority list for vaccinations, as the drive continues.

    Mobile vans deployed for vaccination drive in the Nilgiris

    Supriya Sahu (IAS), COVID Monitoring Officer for the Nilgiris said, “The population of tribals in the Nilgiris stands at 27,000 of which 21,500 are 18 years and older. We have so far vaccinated 15,414 tribals. We are involving Primary Health Centres (PHC) and Block Medical Officers completely in the planning. Everyday, they inform the NGOs about the number of vaccine doses that are coming in so that the NGO teams can mobilise people in different villages. The PHCs then follow that list in a true example of bottom up community-owned planning. We had launched an awareness programme with NGOs to break the vaccine hesitancy. Key was to try and mobilise the entire village and not just individuals so that we can achieve 100% coverage in a village.”

    Tamil Nadu (Nilgiris Tea Estate Workers)

    Location Active
    Cases
    Tea Workers
    Hospitalized
    Deceased
    Tea Workers
    Coonoor549637
    Udhagamandalam6740
    Kotagiri97131
    Gudalur294333
    Total1,00711311
    Source: Supriya Sahu | 2nd Wave March – June 23, 2021

    Kerala

    Updated 6-23: According to the state COVID portal, on 1st April, Kerala had recorded 4,632 deaths from COVID-19 and active cases were at 26,201. The first reported death was 30th March, 2020. On 22nd June, the number of active cases were 100,437 with fatalities between 1st April, 2021 and 22nd June, 2021 reported at 7,663. 

    The main tea-growing districts of Wayanad and Idukki saw slightly lower numbers than other districts in the state. The two districts combined report 331 deaths and have 9019 active cases as of 22nd June 2021. Vaccinations are underway with 28.17% vaccinated at present. Palakkad and Thiruvananthapuram districts on the other hand, were more severely affected. Palakkad reported over 1000 deaths from COVID so far, with 7,320 active cases as of 22nd June, 2021. Thiruvananthapuram was the worst affected district and currently has nearly 100,000 active cases. Reported fatalities stood at 2,562 in this district. 

    Ashok Dugar of Chinnar Tea said that the 2nd Wave saw more cases and the workers were reluctant to shift to the isolation centres. So at their estate, the 30-bed hospital was converted to a District COVID Care Centre in May. They are also preparing for the 3rd Wave now. The disruption in production that came with the first wave was not there in the second wave as tea was exempted from lockdown.

    He added that estate managements who have large infrastructure and ready machinery should come forward to set up and upgrade their facilities to take care of not only their own but neighbouring patients in the remote rural areas, which will be great relief to the government’s much-stressed resources .

    Kerala (Tea Estate Workers)

    Location Active
    Cases
    Tea Workers
    Hospitalized
    Deceased
    Tea Workers
    Idukki 5,244 N/A N/A
    Wayanad 3,215 N/A N/A
    Total 8,659 N/A 331
    Source: Kerala COVID Portal | 2nd Wave April 1 – June 23

    West Bengal

    Updated 6-1: In West Bengal, more than 4,500 cases have been recorded across 300 of the state’s 800 tea gardens, according to government data, as reported by Thomas Reuters Foundation.

    West Bengal (Tea Estate Workers)

    Location Active
    Cases
    Tea Workers
    Hospitalized
    Deceased
    Tea Workers
    DarjeelingN/A N/A N/A
    Dooars N/A N/A N/A
    Terai N/A N/A N/A
    xxxxx N/A N/A N/A
    Total N/A N/A N/A
    Source: West Bengal

    Regional Updates

    Tea Biz welcomes COVID updates from tea estates, labor unions, tea associations, medical and and government authorities. Write Dan Bolton, Aravinda Anantharaman (Nilgiris), or Roopak Goswami (Assam)


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  • Tea Biz Podcast | Episode 22

    Hear the Headlines

    | Cold Brew is Trending for Iced Tea Month
    | DAVIDsTEA in Canada Settles its Debts
    | Kenya Exports Surge but Auction Prices Remain Low
    | PLUS Smith Teamaker’s Ravi Kroesen explains the company’s new plant-based café concept and Amy Dubin-Nath talks about the future of whole leaf Indian teas.

    Tea Price Report

    As India’s second flush gets underway, the mood is glum as the industry continues to deal with many challenges. Local media reports on rising imports of tea into India and in Darjeeling, producers have expressed concern about zero-duty imports from Nepal. Read more…

    Features

    Tea Biz this week travels to Columbus, Ohio to visit with Amy Dubin-Nath, founder of Janam Tea and an ad hoc India tea ambassador to the US.…

    …and then to Portland, Ore. where Ravi Kroesen, head teamaker at Smith Teamaker, explains the many uses of tea at the company’s recently opened plant-based café.

    Amy Dubin-Nath
    Amy Dubin-Nath

    India’s Spectacular Specialty Teas

    Amy Dubin-Nath sees a bright future for specialty teas originating in India, “but I don’t think it is going to be a quick flip where people are only after high end teas.” Instead, the process will be gradual, following a path similar to wine. “Do I want to see the spectacular teas of India keep selling at a high price?” she asks, “Yes, definitely, as that elevates the perceived value, making it something precious. I believe that message should be spread throughout the world — including in India.” Read more…

    Ravi Kroesen, Head Teamaker Smith Teamaker
    Ravi Kroesen, Head Teamaker at Smith Teamaker, Portland, Ore.

    A Plant-Based Café where Tea Reigns Supreme

    By Jessica Natale Wollard

    The intent of the new café concept, says Smith Teamaker Ravi Kroesen, is to “develop foods that really reflect our ethos of plants, as well as utilizing tea as an ingredient.” The new Smith Teamaker café sources locally with a menu that includes snacks, lattes and iced concoctions with full meals that demonstrate how tea and food can live in harmony from leaf to cup to plate. Read more…

    Cold Brewed Tea
    Cold Brewed Tea

    Iced Tea Month: Cold Brewed Teas are Trending

    By Dan Bolton

    The challenge of correctly steeping a delicate green to avoid bitterness disappears when the tea is brewed overnight in the fridge. “I’m cutting calories and want something more flavorful than water,” begins one Reddit thread. “Can you explain to a total cold brew newbie how to get the most flavorful green tea without additives.” The responses were enthusiastic and numerous, evidence that the technique rivals more traditional fresh-brewed, flash-chilled black tea.

    Whether boiling tea to pour over ice, or making cold brew, the tea to water ratio is critical. Begin with about twice the normal weight of tea, 6-8 tablespoons for 1.5 quarts (or 8-12 grams per 950 milliliters). Stale tea requires more leaves, quality whole leaf requires fewer. Make sure your vessel is airtight as tea will pick up the scent of leftovers.

    Allied Market Research estimates RTD tea generated $30 billion in 2019 and will grow 5.5% annually to $39 billion in 2027. Health-conscious millennials are driving sales. Mintel reports that 25% of new tea innovations are RTD. In China where 78% of consumers are frequent drinkers of freshly brewed hot tea, RTD enjoys 49% penetration, which is greater than tea bags, according to Mintel.

    Biz Insight – Cold brew coffee experienced remarkable five-year growth in both bottled ready-to-drink and foodservice. North America is the largest cold brew market globally with 66% market share, followed by Europe (17%) and Asia (11%). In the US – 2015 toles of cold brew coffee are expected to increase ten-fold from $110 million to $945 million in 2025, according to Statista market research. Three-sixty market research estimates the market globally will reach $2.8 billion by 2026.

    DAVIDsTEA Settles Debts

    A Quebec Superior Court approved the Montreal-based tea company’s plan to settle $118.2 million in claims for $18 million payable in July. A US Bankruptcy Court this week approved a similar plan for resolving debts owed by DAVIDsTEA’s US subsidiary.

    The settlements are a final step toward exiting a year-long reorganization precipitated by the closure of all but 18 of the company’s more than 200 locations. The settlement will be divided with $15.3 million going to Canadian creditors and $3.1 million to US creditors, according to PwC, Canada. The company has sufficient cash on hand to meet settlement obligations.


    Under the direction of CEO Sarah Segal, DAVIDsTEA has adopted a “digital first” market strategy for sales to consumers. Its wholesale products are now found in 2500 grocery and pharmacy outlets. The company reported sales of $40.2 million in fourth quarter 2020. Revenue from the fast-growing online and wholesale segment has increased from $42 million in 2019 to $97.2 million in 2020. Greatly reduced brick and mortar revenue now accounts for only 12.9% of total sales. Revenue overall declined 38% in 2020 leading to $55.9 million in losses.

    Kenya surge
    Kenya tea exports surge during first three months of 2021

    Kenya Tea Exports Surge

    Despite upheaval at the factory level, Kenya exported much higher tea volumes this year. First quarter exports increased 18.9% compared to 2020, according to the national Tea Directorate. Volume topped 153 million kilos, up from 128 million during the same period in 2020.

    Smallholders that produce 65% of the country’s tea experienced variable weather conditions in 2021 creating an overall decline in production during the first three months of 2021. Growers, primarily in the far west, harvested 18 million fewer kilos since January compared to the same quarter in 2020. Auction prices are on the rise, reaching $1.84 per kilo last week but remain below the $2 per kilo threshold considered essential to cover production costs. Weekly prices so far averaged $2 only once in 2021. Tea prices averaged $1.80 per kilo in 2020, down from $2.05 per kilo in 2019.

    Biz Insight* – Kenya’s tea growers are benefiting from payment of 50% of the total due thanks to national reforms instituted this spring. Half the price for green leaves delivered within the month to Kenya Tea Development Agency (KTDA) factories, is paid by the 20th of the following month. The balance is paid in the fall at the end of the financial year. KTDA’s factories are owned by smallholders and managed by KTDA.

    *Corrected 6.20.2021

    Link to share this episode with your friends in tea.



    https://teabiz.sounder.fm/episode/news-01212021

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  • Tea Biz Podcast | Episode 21

    Hear the Headlines

    | Inflation Dampens Enthusiasm Over Rising Tea Prices
    | India’s Tea Industry Under Duress
    | European Union Grants Rooibos GI Protection

    Tea Price Report

    While lockdowns continue, tea auctions in India resumed last week at all the major centers. In the Nilgiris, discussions on whether bought leaf factories can open are still underway.
    Read more…

    Features

    Tea Biz this week travels to Frankfurt Germany to discuss best practices in sustainable wholesale with Jan Holzapfel, owner of Ronnefeldt Tea, a 198-year-old company that is replacing its tea packaging this year with eco-friendly materials, embracing traceability, and reducing emissions by longer air freighting tea.

    … and then to London where Tea Biz Reviewer Kyle Whittington has a single word for INFUSED, a book by Rare Tea Founder Henrietta Lovell that describes her adventures in tea: “Wow,” he writes, “You really feel like you are sitting over a cup of tea with Henrietta as she regales you with her stories, the highs, the lows, and the off on a tangent.”

    Jan-Berend Holzapfel
    Jan-Berend Holzapfel, owners Ronnefeldt Tea

    Sustainable Wholesale

    Sustainable best practices at tea gardens are well established, but the rest of the supply chain offers significant opportunities to protect and conserve resources. Listen to the latest Tea Biz Newsmaker Q|A as Jan-Berend Holzapfel, owner of Germany’s Ronnefeldt Tea, discusses sustainable wholesale.

    Read more…

    Henrietta Lovell
    Rare Tea Lady Henrietta Lovell

    A Book to Re-ignite your Tea Flame

    You really feel like you are sitting over a cup of tea with Henrietta

    By Kyle Whittington | Tea Book Club

    Infused Adventures in Tea

    Wow! What a book! From start to finish Henrietta had me captivated, excited and enthralled by her world. A Tea Book unlike most, this is the very personal story of Henrietta’s adventures with tea in tea and all around tea. From her first fledgling sips out of dainty China Cups at Diana’s House as a child, we are taken along on a ride of reminiscence. With trips to far flung tea fields swathed in mist via the odd lightning strike or two we zip off to tea tastings with chefs at some of the best restaurants in the world, accompanied by her little yellow suitcase and strange meetings on trains. To name to mention but a few of her adventures. 

    Read more…

    Food Inflation
    Food Inflation

    Food Inflation Dampens Enthusiasm Over Rising Tea Prices

    By Dan Bolton

    In the US and Asia, an energetic post-pandemic recovery is underway. Demand is quickly rebounding as consumers spend down their savings and make up for the lost time. Consumers in the largest economies amassed $2.9 trillion in savings since March 2020, according to Bloomberg Economics.

    Now they are eager to spend.

    Retail sales in the US are projected to approach $4.5 trillion in 2021, according to the National Retail Federation. The NRF, which initially estimated 6.5% growth, increased its full-year GDP projection to 7%, the fastest rate in decades. In China, household income grew 13.7% during the first quarter of 2021.

    Widespread inflation is dampening that good news.

    The Organization for Economic Cooperation and Development (OECD) reports inflation in member countries is at the highest level since 2008. Globally, food prices rose for the 12th consecutive month in May, according to the United Nations Food and Agricultural Organization. The FAO’s Food Price Index was 40% higher in May 2021 when compared to May 2020. The Bloomberg Commodity Spot Index, which tracks price changes across a range of metals and agricultural commodities, has jumped roughly 60% in the past 12 months.

    Food prices, including the cost of tea, are rising on demand. Tata Consumer Products, Nestlé and Unilever all announced price increases across their ranges in response to commodity inflation.

    Rooibos plants
    Rooibos Plants, South Africa

    EU Grants Rooibos GI Protection

    The European Union this week awarded Rooibos, which is also known as Red Bush tea, status as a protected geographic indication affording the same protection to products such as champagne and Irish Whiskey.

    The registration allows South Africa’s Rooibos industry to display the EU Seal if the tea consists of 100% Rooibos that is either cultivated or wild-harvested from local municipalities of the Western and North Cape provinces.

    The South African Rooibos Council welcomed the news. Council Chairperson Marin Bergh said that while it is important that nobody else use the name Rooibos “it also gives a certain status about quality, reliability, and sustainability – all those things that go together with a GI.”

    India’s Tea Industry Under Duress

    While the peak of the horrific second wave has passed, India’s tea industry remains under duress as the coronavirus simultaneously strikes down workers, limits plucking and processing, halts inter-district transport, and forces the early-day closure of restaurants and beverage stalls.

    The government estimates more than one million workers, mainly women, are losing productive days and wages due to the pandemic and inclement weather with the arriving monsoons.

    The delivery of 235,000 doses of vaccine this week halted a steep increase in Coronavirus caseloads in Assam’s tea gardens. Daily average infections in June are now 4,000 per week, down from almost 6,000 per week in May. Positivity rates remain high, forcing an extension through June 16 of lockdowns and a daily curfew from 1 pm through 5 am. Shops and restaurants must close by noon and inter-district transport is prohibited. The state reported 450,000 cases and 3,600 deaths. The seven-day average for new cases is 7,400 in West Bengal and 9,000 in Kerala.

    India reported fewer than 100,000 cases for a fifth day and while daily death totals are high at 4,000, this average is expected to decline as the drop in new cases continues. During the peak of the spring infections, from April 1 to May 6, India recorded 926,000 news with a positivity test of 26%. Testing continues at the same pace, but positivity has declined to an average 4%. Active cases are now at 1 million, according to the Union Health Ministry.

    Buyers at auction are finding it difficult to arrange for transport despite the fact tea is listed as an essential commodity. Drivers are in short supply and enforcement of restrictions that prohibit inter-district transport is inconsistent. The immediate impact is a spike in retail prices above records set in 2020. Buyers at auction are spending an average of INRs211 per kilogram in Assam and INRs125 per kilo in Tamil Nadu.

    Biz Insight – There is no slack in demand for tea. Tata Consumer Products reports that revenue from its beverage segment (which includes coffee) grew by 59.6% during the period January-March 2021. Volume was up 23% largely due to an increase in at-home consumption. India’s packaged tea market is estimated at $2.26 billion. An additional $1.3 billion is spent on tea from unbranded suppliers, according to ICICI Securities.

    Share this episode with your friends in tea.



    https://teabiz.sounder.fm/episode/news-01212021

    Subtext

    Avoid the chaos of social media and start a conversation that matters. Subtext’s message-based platform lets you privately ask meaningful questions of the tea experts, academics and Tea Biz journalists reporting from the tea lands. You see their responses via SMS texts which are sent direct to your phone. Visit our website and subscribe to Subtext to instantly connect with the most connected people in tea.

    Subscribe to Subtext

    Subscribe and receive Tea Biz weekly in your inbox.

  • Tea Biz Podcast | Episode 20

    Hear the Headlines

    | Pandemic Powers Organic Sales
    | Tea Cafes Cautiously Re-opening
    | Tata Expands Direct-to-Customer Range
    | Buyers Spend Big at Chinese International Tea Expo

    Seven-minute News Recap

    India Tea Price Watch | Sale 21

    Features

    Tea Biz this week travels to Japan where the Japan Tea Central Council and the Global Japanese Tea Association are organizing a Tea Marathon during the Tokyo Olympics so that enthusiasts worldwide can better appreciate the great variety of tea grown there

    … and then onto Vancouver, British Columbia, where Jessica Woollard leads a virtual tour of Chinatown, a Canadian National Historic Site, and the location of the Treasure Green Tea Company and the Chinese Tea Shop ? two of the best places to find authentic Chinese tea

    Japan Tea Maraton
    Discover new teas during the Japan Tea Virtual Marathon from July 23 through Aug. 8

    Japan Tea Marathon

    Virtual tour of 15 tea producing regions tracks Tokyo Olympics

    By Jessica Woollard

    The Japan Tea Marathon is a series of live online events featuring teas from 15 of Japan’s tea-producing regions. Zoom sessions begin July 23 and are held twice daily, concluding Aug. 8. Two hundred competing brewers and 1,000 regular admissions give the entire world of tea an opportunity to cheer their favorite to victory.

    Learn more…

    Simona Suzuki, née Zavadckyte, president of Global Japan Tea Association describes the upcoming marathon.
    Chinese Tea Shop
    The Chinese Tea Shop, Vancouver, BC

    The Charm of Vancouver’s Chinatown

    By Jessica Natale Woollard

    In 1981, Kwok Sun Cheung, an immigrant from Hong Kong, opened the first premium teashop in recent memory in Vancouver, British Columbia, on Canada’s West Coast.

    Catering primarily to immigrants from China, Mr. Cheung chose Vancouver’s Chinatown for the location of his shop. Now a National Historic Site, Vancouver’s Chinatown spans around six blocks and is located a short walk from Vancouver Harbour and the cauldron from the 2010 Winter Olympic games. It is the third-largest Chinatown in North America, after New York and San Francisco.

    Today we are speaking with Olivia Chan, Mr. Cheung’s daughter at the Treasure Green Tea Co. and with Daniel Liu, owner of The Chinese Tea Shop.

    Read more…

    Jessica Natale Woollard takes listeners on a virtual of Vancouver’s Chinatwon

    Tea News you Need to Know

    Pandemic Powers Organic Food Growth
    Pandemic Powers Organic Food Growth

    Pandemic Powers Organic Sales

    By Dan Bolton

    The Organic Trade Association reports that US sales of organic food and beverages set a record in 2020, growing 12.4% to $62 billion. The total includes organic food, which grew by 12.8% to $56.4 billion. Import values for green tea also spiked, increasing 28% compared to 2019. Organically certified foods now account for almost 6% of total US food sales.

    The pandemic caused consumer dollars to shift almost overnight from restaurants and carry-out to groceries, with traditional staples and pantry and freezer items flying off the shelves, according to OTA, “the only thing that constrained growth in the organic food sector was supply.”

    Read more….

    Bettys Harrogate
    Century-old Bettys Harrogate as featured on Extraordinary Places To Eat by BBC Select

    Tea Retailers are Cautiously Re-Opening

    A tearoom in Texas, a tea café in Portland, and the Samovar Tea Lounge in San Francisco are now open for business. In Portland, the menu at the new Smith Teamaker Café features tea as a spice, an ingredient, and a beverage. In Montreal cafes with terraces opened May 28 and sit-down restrictions ended in Britain on June 2. Irish pubs, Dublin bars, and restaurants are open for outdoor dining on June 7. In Montreal the Café Myriade, Café Parvis, and Café Olimpico drew urban street crowds. Quaint tea rooms in small towns, like The Charleston Tea Room in Friendswood, Tex., a city of 39,000 near Houston, are seating guests after a year. Sadly, many did not survive the financial hardship caused by extended lockdowns. In many cases, these shops, like the one in Friendswood, will open with new owners. Möge Tee, a franchise bubble tea venture, will open two shops in New York City. Drive-thru HTeaO announced 11 new ice-tea franchise locations bringing its total to 41.

    Biz Insight – Sit-down restrictions ended in Britain this week, check out the video linked above from the series Extraordinary Places To Eat by BBC Select. The setting is afternoon tea at century-old Bettys Harrogate, one of six tea rooms in Yorkshire, UK.

    Tata Tea 1868
    Package illustrations for the Tata Tea 1868 collection

    Tata Expands Direct-to-Consumer Range

    Tata Consumer Products expanded its successful direct-to-consumer (DTC) range to include specialty coffee this week. The successful April launch of a DTC website featuring “1868 By Tata Tea” reinvigorated the 13-variety luxury tea selection, launched in January 2018 to commemorate the company’s 150th anniversary.  The teas are exclusively available online at www.tatatea1868.com

    Tata’s Puneet Das, president of packaged beverages for India and South Asia, said, “This is our entry into the direct to consumer commerce ecosystem which is a small but emerging space,” adding that “1868 is an example of our continuing investment in our brands as we innovate to create quality and distinctive products for our consumers.”

    Teas in the 1868 collection are sold in premium tins organized by origin and type. The 1868 Darjeeling Rare Wonder is priced at INRs 1,500 (about $20) for 50 grams, the Nilgiri Green Twirl at INRs 500.

    In February 2020 Tata reorganized how it brings its products to market, creating Tata Consumer Products, a Bengaluru-based integrated food, and beverage company that offers tea, coffee, bottled water, salt, pulses, spices, breakfast cereals, snacks, and ready-to-cook mixes.

    Biz Insight – Tata’s new DTC specialty coffee line is called Sonnets. It is sourced from the company’s south India farms. India is mainly an instant coffee filter market, says Tata’s Puneet Das who explains that Sonnets is targeted to QUOTE “a more discerning consumer looking for freshly ground roasted coffee delivered to their doorstep,” he said, adding, “With the prolonged COVID-19 lockdowns, consumers are seeking more coffee drinking occasions at home. This is especially true as cafes and coffee shops have remained off bounds during the pandemic.”

    Hubei Pavilion at China International Tea Expo

    China International Tea Expo

    Live tea expositions, seminars, and tradeshows are returning with vigor in China. The five-day China International Tea Expo (CTE) that opened in Hangzhou on International Tea Day (May 21) drew a crowd of 152,000 mainly domestic tea buyers. In aggregate they spent RMB6.4 billion purchasing 254 million tons of tea, a 14% increase compared to the previous event. The average value of transactions was up 20% to RMB223 million and orders topped 13,000.

    CTE is the largest tea exposition in China. Buyers collectively spent RMB6.4 billion purchasing 254 million tons of tea, a 14% increase compared to the previous event. The average value of transactions was up 20% to RMB223 million and the number of on-site orders topped 13,000. In 2019 there were 10,787 transactions, suggesting pent-up demand.

    The 2019 expo attracted 3,425 foreign buyers from 46 countries. In addition, there were nearly 200 foreign VIPs from 42 countries and international organizations. In 2021 only a few in-country foreign buyers attended as travel restrictions apply.

    Biz Insight – China’s borders remain closed to all but residents of these 23 countries. Travelers must provide proof of receiving a second of two shots at least 14 days prior to entry and they must present two negative tests PCR and antibody tests, taken within 48 hours of travel. Travelers are checked once again on arrival. Anyone failing the test will be isolated at a government facility. All others were quarantined for 14 days, often at home, an approved hotel, or a government facility. In some regions, the requirement is 14+7 (with the last seven days monitored by local community health officials). Entry restrictions are not likely to ease until February 2022 just before the Beijing Winter Olympics. The events are scheduled for February 4-20. Read more…

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  • Tea Biz Podcast | Episode 19

    Hear the Headlines

    | Tea History Collection Unveiled
    | Indian Commodities Logjam
    | THIRST Undertakes a Tea Human Rights Analysis
    | A Series of Major Quakes Rattle Yunnan

    Seven-minute News Recap

    India Tea Price Watch | Sale 19

    Features

    Tea Biz this week travels to Nepal to meet Aasha Bhandari the newly named International Trade and Promotion Executive at the Himalayan Tea Producers Cooperative

    …and to the North Carolina campus of Wake Forest University to learn from student William Liu why ancient teas and rituals retain their appeal with young people.

    Nepal Tea Garden
    Nepal is expanding the country’s tea growing regions to produce more specialty loose leaf tea.

    Himalaya Tea Opportunity

    Nepal Increases Production of Quality Specialty Teas

    By Aravinda Anantharaman | Bengaluru

    Nepal’s tea industry reported record sales in 2020. The fabled tea land is growing greater quantities and greater varieties of loose and broken leaf teas thanks to a government-initiated expansion of the industry to high altitude gardens in non-traditional growing areas. Rural agrarian entrepreneurs are redefining offerings for an international market thirsty for the distinct taste of Himalayan grown oolongs, white teas, and premium black whole leaf. In this segment Aasha Bhandari, newly named to promote trade at the Himalayan Tea Producers Cooperative, discusses her plans for HIMCOOP.

    Read more…

    Aasha Bhandari discusses Nepal’s tea industry in transition.
    William Liu
    College sophomore William Liu founded the World Tea Association and To Tea Together podcast.

    Why Ancient Tea Appeals to Young People

    By Dan Bolton

    William Liu is a 20-year-old sophomore at Wake Forest University so inspired by tea that he and his classmates established the World Tea Association on campus and online. The group offers tea discovery and tasting sessions weekly and hosts occasional tea panels with presentations by tea professionals, tea scholars, and tea explorers. The events bring together many who are new to tea, says William “we aim to redefine the tea experience through an interdisciplinary approach and expose the true leaf to a greater audience.”

    In this discussion he describes why tea appeals to young people and explains his view that tea learning is ongoing. “The tea journey has no destination, he says, it involves only intention and lifelong learning.”

    Read more…

    William Liu on advancing our knowledge of the leaf.

    Tea News you Need to Know

    By Dan Bolton

    An extensive private collection of historical tea artifacts and modern facilities for meetings and tea research were unveiled on International Tea Day by Tea Ambassador Mike Bunston, OBE.

    The Tea History Collection, located in Banbury, Oxfordshire in the DCS Group complex, is the inspired work of entrepreneur Denys Shortt, OBE (Officer of the Most Excellent Order of the British Empire). The facility, valued at £100,000 ($140,000) is open by appointment to tea-related organizations and academia. It is equipped with a tasting bar, high-speed internet, archive cabinets, a video-conference room and work areas.

    Shortt, who founded DCS in 1994, grew up on a tea estate in Assam. His family worked at gardens there for 20 years before moving to Africa where his father managed the Ikumbi Tea Factory in Thika, Kenya.

    “We do not believe there is anything like this in the world,” says Shortt. “We have items from Plantation House (now demolished) which was where the London Tea Auctions were held.” The collection of more than 500 items includes teas, books,  and sample cabinet with 200 tins containing teas dating to 1904. The collection will be maintained as a non-profit.

    Learn more….

    Commodities Logjam

    Fifty thousand in West Bengal are homeless this week due to a tropical cyclone that halted air traffic and port activity in Calcutta. Every link of India’s tea supply chain is under stress. Restrictions to stop the spread of COVID-19 are once again limiting the number of harvest workers in the gardens and reducing by half staffing at factories processing tea, while simultaneously forcing the cancellation of tea auctions… delaying transport and causing local warehouses to overflow.

    Truckers essential to transporting tea were virtually halted last year and while many delivering to cities face delays due to curfews that prevent unloading at night, local transport is much less problematic in 2021.

    The weak link in the commodities supply chain during the second wave are buyers who cannot easily judge what quantities are required for manufacturers and to meet varying retail demand. For example, Kochi-based spices trader Kishor Shamji told the Hindu Businessline that a lack of buying interest from masala manufacturers in upcountry markets has affected the sales of almost all spices, including pepper, cardamom, ginger, nutmeg, and cloves. Meanwhile, traders worry that the tea they purchase to send overseas will experience costly shipping fees and delays. Last year’s first wave dealt urban areas the hardest blow but in 2021 it is rural areas that suffer.

    Biz Insight – In India, as in many countries, mandatory lockdowns and health concerns have accelerated sales of tea. A survey of 22,000 rural small market stores known collectively as Kirana revealed a 140% increase in tea sales. Sales of hand sanitizers that appeared near the top of the list last year are flat but sales of soap increased by 50%, according to StoreKing. Pest and mosquito repellent experienced a 200% increase and comfort snacks and biscuits are up 83%.

    Assessing Human Rights in Tea

    THIRST The International Round Table for Sustainable Tea, is launching a three-year program to analyze the root causes of human rights breaches in the tea industry and come up with an action plan for how to solve them.

    Founder Sabita Banerji objects to “rights assessments” which have a negative connotation she favors an “impact analysis.” Banerji calls it a ‘constructive solution-oriented approach’.

    The program will document conditions for workers and farmers and identify problems “but more importantly, what can be done to address these problems,” said Banerji. The first step is to consolidate existing research and then conduct in-depth studies where there are gaps, providing a global picture of the interdependencies of tea.

    Read more on the Tea Biz blog.

    A Series of Major Quakes Rattle Yunnan

    Three major earthquakes and hundreds of aftershocks damaged 14,000 structures, killed three people and seriously injured 28 in Yunnan Province last week. The first in the series struck Dali located near the heart of the tea growing region. That deadly 6.0 magnitude quake on Tuesday was followed Friday by a much stronger 6.4 quake that damaged homes and forced rescuers to pull several people from under debris. Five hours later a 7.4 temblor located in adjacent Yangbi [YANg BY] rattled Yunnan again.

    The steep mountainous region, subject to landslides, is jittery about quakes. In 2008 a 7.9 earthquake centered in Sichuan province killed 87,000 people and left 4.2 million homeless, causing $150 billion in damage.

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