tea production - Tea Biz

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Hear the Headlines

| India Adopts Tea Industry Reforms
| US Considers Granting Exemptions from Chinese Tariffs
| A Tribute to Nepal Tea Maker Morris Orchard

Seven-minute Tea News Recap

India Tea Price Watch

India Tea Price Watch | Aravinda Anantharaman
The Tea Board of India announced a mechanization subsidy for smallholders to address the problem of labor shortages in tea gardens. India’s Ministry of Commerce and Industry extended its tea development and promotion program through 2025-26 discontinuing subsidies for Orthodox production that includes $40 million for clearing subsidies in the tea sector. Learn more…

Aravinda Anantharaman

Features

This week Tea Biz travels to Alberta, Canada, high in the Canadian Rockies to visit one of several Swiss-inspired tea houses designed to provide high-mountain trekkers shelter and warmth.

… and then we visit Tokyo, Japan to meet tech and tea entrepreneur Hiroshi Takatoh whose Teatis blends of brown seaweed and matcha and seaweed and botanicals are formulated to help diabetics control high blood sugar levels.

Jolene’s Tea House

By Jessica Natale Woollard

The rugged Canadian Rocky Mountains thrust nearly 20,000 feet into the sky, a haven for hikers that inspired a unique style of high-mountain tea houses built to provide warmth and shelter along the trail. In Banff, Alberta, Tea Biz correspondent Jessica Natale Woollard visits Jolene’s Tea House – a refuge for mind and body. Read more…

Listen to the Interview

Jolene Brewster on the launch of Jolene’s Tea House

Hiroshi Takatoh, CEO Teatis Tea — Hiroshi Takatoh, CEO and Founder Teatis Tea

A Medicinal Tea from the Sea

By Dan Bolton

Tea has an ancient history of medicinal applications, many of which have been validated by scientific research. The same is true of seaweed which contains antioxidants (vitamins A, C, and E) as well as trace minerals and protective pigments. Joining us from Tokyo for this week’s podcast is Hiroshi Takatoh, CEO, founder, and blender at Japan-based Teatis Tea. Takatoh is exploring, with his team of food scientists and doctors, tea formulations to assist diabetics and pre-diabetics control their blood sugar levels. Read more…

Listen to the Interview

Teatis Tea founder Hiroshi Takatoh discusses the medicinal benefits of blending brown seaweed and tea.

News

India will no longer require permits to grow tea, one of several reforms gradually deregulating the tea industry.

India Adopts Tea Industry Reforms

By Dan Bolton

Facing continuing declines in export revenue, India’s Ministry of Commerce and Industry has funded several programs and instituted fundamental reforms in tea.

In September the Tea Board of India said it will suspend seven sections of the Tea Act of 1953 following the commerce ministry’s decision to amend regulations governing the sector. Seventeen of the Act’s 51 provisions are no longer enforced as India gradually deregulates the tea sector.

Permits to grow tea will no longer be required, a decision that is likely to increase unregulated production by smallholders who now account for 52% of India’s tea by volume. Tea production has rebounded in 2021, up 18% compared to the first eight months of 2020 to total 792 million kilos. Read more…

A Tribute to Teamaker Morris Orchard

The death of Nepal teamaker Morris Orchard due to COVID-19 is a sad reminder of the pandemic’s toll on the global tea community. Orchard, general manager at Jun Chiyabari Tea Estate and a third-generation tea man, was 58. Kevin Gascoyne, a partner at Montreal’s Camellia Sinensis tea company and a long-time buyer of Nepal tea shares how Orchard advanced tea making in his lifetime. View on YouTube.

Jun Chiyabari Teamaker Morris Orchard (1963-2021)

Listen to the Interview

Montreal-based Camellia Sinensis tea buyer Kevin Gascoyne pays tribute to teamaker Morris Orchard

US Considers Exemptions from Chinese Tariffs

Trade talks between the US and China will resume but there is little hope the Biden Administration will do away with tariffs that have depressed tea imports from China for the past three years. However, US Trade Representative Katherine Tai announced the US will resume a program that allows companies importing some product categories to apply for exemptions, relieving them from paying the tariff.

Applications for exclusions were suspended in 2018. USTR writes that of the initial 2,200 exclusions granted, 549 were extended through Dec. 31, 2020. Criteria to qualify is based on economic hardship and whether the product is available only from China, which is true of several categories of tea.

The US currently charges duties on $350 billion of Chinese goods, penalizing importers who often pass the added expense to consumers. Tariffs add 7.5% to the price of Chinese tea. Tai said the US “does not want to inflame trade tensions with China” but made it clear additional duties and restrictions could be imposed.

Biz Insight – Tariffs on tea are insignificant compared to those levied on steel, agricultural food products and create no hardship for the Chinese who annually export $2 billion worth of tea. The 50-day public comment period on why the USTR should reinstate exemptions opens on Oct. 12. The list of previous exemptions is posted on the USTR website. None of the 549 exemptions were granted to tea companies but companies importing ink cartridges, submersible pumps, lampshades, bottle caps, and electric motors all made the list.

— Dan Bolton

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Upcoming Events

October 2021
Duyun Maojian International Forum for Tea Lovers | Dunyun, Guizhou, China |
6th Annual Conference for China Tea Import and Export Trade | Oct. 21-22
The co-located events showcase the production of Maojian green tea. China quarantine and travel restrictions apply. Website | Brochure (PDF)

December 2021

World Tea & Coffee Expo | Gandhinagar, India | December 2-4
Launched in 2013 and now operated by Messe Muenchen India, this hybrid virtual and in-person event for tea and coffee professionals is now scheduled for the Helipad Exhibition Centre, Gandhinagar, Gujarat, India. Website | Register

Click to view more upcoming events.

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News Archive

Tea Journey

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

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| Kenya Exports Saturate Black Tea Market
| COVID Depresses Japanese Tea Business in Unique Ways
| Unilever is Recognized as the Top Food and Agriculture Benchmark

Seven-minute Tea News Recap

India Tea Price Watch

Aravinda Anantharaman

Features

This week Tea Biz travels to Monte Metilile in Mozambique, a country along the southern coast of East Africa where Mohit Agarwal, Director of the Asian Tea Group, has revived an abandoned 15,000-acre tea estate to demonstrate the viability of organic farming at scale.

… and then we talk with supply chain and procurement expert John Snell about what makes Mozambique such an exceptional tea-producing region.

Monte Metilile, TE Mozambique — Monte Metilile Tea Estate in Mozambique is the world’s largest certified organic tea plantation.

Organic Tea Farming at Scale

By Dan Bolton

Mozambique is the best-kept secret in the tea world, says Mohit Agarwal, Director of the Asian Tea Group, the company that owns Cha de Magoma and the Monte Metilile brand. Mohit is walking the garden as we speak via Zoom, describing the organic dairy herd, a forest of renewable eucalyptus used for fuel, the hydroelectric turbines that power the plantation’s three factories. Pointing to the brilliant green tea bushes that stretch as far as the eye can see he explains that during 15 years of civil war from 1977 until 1992 Mozambique’s tea plantations were abandoned. Read more…

Listen to the Interview

Mohit Agarwal, Managing Director at the Asia Tea Group, discusses the advantages of scale.

John Snell: Mozambique is God’s Country for Tea

By Dan Bolton

A century ago, when the Portuguese first planted tea in Gurúè, Mozambique they found gentle, well-drained slopes of rich red volcanic soils at 1,500 to 3,600 feet elevation – the same altitude as India’s Darjeeling mid-tier gardens. The climate there is cool and dry from May to September and hot and humid between October and April. Annual rainfall averages more than 3,000 millimeters. By 1950 production exceeded 20,000 metric tons a year and there was more land under tea in Mozambique than any country in Africa. Listen as procurement and supply chain expert John Snell explains why Mozambique is such a great place to source tea. Read more…

Listen to the Interview

John Snell on why Mozambique is a great place to source tea.

News

Kenya increased pay for green leaf and provided smallholders 65,000 metric tons of fertilizer to increase production.

Kenya Exports Saturate Black Tea Market

By Dan Bolton

Kenya reported a 19% increase in exports totaling almost 300 million kilos through June despite falling production totals. In September Kenya increased fertilizer subsidies following an August increase in payments for green leaf sold to Kenya Tea Development Agency (KTDA) factories. The combination will spur tea production and likely increase Kenya’s share of the global black tea market. Low prices led India to import 5 million kilos of Kenyan tea in the first half of 2021, compared to 1.5 million kilos during the previous year. Worldwide, tea supply continues to outstrip demand, continuing a downward trend dating to 2018. Read more…

Japanese funerals involved tea and generous tea gifting. Funeral directors note a steep decline since COVID-19.

COVID Depresses Japanese Tea Market in Unique Ways

By Dan Bolton

Like the rest of the world, Japanese tea growers suffered as restaurants closed, social gatherings were canceled, and safety precautions limited harvest days and processing.

The pandemic also inflicted setbacks unique to the market including a sharp decline in the gifting of tea at funerals.

Japan’s Agriculture, Forestry and Fisheries Ministry, reports that production of unrefined “aracha” declined by 15% in 2021 compared to the previous year. Year-on-year sales of first flush teas fell by 20% in Shizuoka prefecture and by 17% in Kagoshima, according to ministry figures.

The Japanese Association of Tea Production reports that total production of sencha declined by 15% in 2020, compared to 2019.

Japanese office workers are teleworking and drinking tea at home but tourism dollars are down 79% compared to 2019, despite the Olympiad and Japan’s popular rural ryokan inns are shuttered, according to the Japan Times.

An article published in Japan News identifies money spent on gifting tea at funeral services is down 90% from a peak of 13.6 million yen in 2015.

The publication quoted a tea association spokesperson, PAUSE “Even if the pandemic is brought under control, I doubt funeral services will ever go back to the way they were before.”

Biz Insight – To boost sales city and regional governments in tea growing regions are providing subsidies. Shizuoka’s prefectural government is offering producers ¥5 million yen (about $30,000) to develop new tea products and ¥3 million yen (about $45,000) to develop new sales channels.

Unilever Named Top Food and Agriculture Company by World Benchmarking Alliance

The World Benchmarking Alliance has named Unilever its top Food and Agricultural Benchmark. The alliance, established in 2018, encourages seven transformations considered essential to put society and the worldwide economy on a more sustainable path.

Annually the group evaluates 2000 of the world’s most influential businesses against its benchmarks.

In a first, the alliance assessed transformation in the Food and Agriculture system globally, ranking 350 companies from farm to fork. Criteria include transforming nutrition, addressing environmental issues, and social inclusion. According to the Alliance, the findings reveal worrying gaps in the industry’s adaptation to climate change, progress on human rights, and contribute to healthy diets.

“Only 26 of the 350 companies are working to reduce emissions from their direct activities through science-based targets set by the Paris Agreement,” writes the Alliance.

Unilever Benchmarks

Unilever, one of the world’s largest food companies, received a combined score of 71.7 out of 100, ranking ahead of Nestlé (which scored 68.5) and Danone (which scored 63.6). Retailer Tesco and beverage companies PepsiCo and Anheuser-Busch InBev were among the top 10. No foodservice company made it into the top 10. One hundred and nineteen companies scored between 10 and 25 points and 110 companies scored below 10 points out of 100.

Download Unilever’s World Benchmarking Scores (PDF)

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Hear the Headlines

| Retail Sales Forecast Happy Holidays
| Restaurant Reticence is Declining
| A Restructured DAVIDsTEA Expands into Pharmacies

Seven-minute Tea News Recap

India Tea Price Watch

India Tea Price Watch | Aravinda Anantharaman
The Indian Tea Association has asked the government to introduce a minimum import price for teas imported into India, to ensure they meet the requirements of the Food Safety and Standards Authority of India and to see that these teas are not sold in India as domestic tea. Learn more….

Aravinda Anantharaman

Features

This week Tea Biz travels to Guwahati in Assam, India where the co-founders of Folklore Tea discuss how they engage customers at an unusual level of intimacy.

Processing raw leaves at Folklore Tea in Assam

Exceptionally Local Teas that Connect with Consumers

By Aravinda Anantharaman

A recent development in tea in India has been the rise of new brands, many that have their roots in tea regions. Almost all of them seek to bridge producers and consumers. Most rely on the narrative that accompanies a product from its place of origin. For consumers, it’s in part vicarious living and a window to another world. Folklore Tea is as good as it gets for those who want to know who made their tea and where it comes from. Read more…

Listen to the Interview

Folklore Tea introduces the growers, village and even includes an original poem describing its teas.

News

Shoppers weary of COVID lockdowns say they are eager to splurge.

Retail Forecasters Predict Happy Holidays

By Dan Bolton

Marketers anticipate strong holiday sales despite fewer footfalls at physical outlets due to surging sales online.

Projections range from $1.28 to $1.3 trillion during the November to January gifting season. Mastercard’s SpendingPulse projects a 7.4% holiday sales increase, and the widely cited Deloitte annual holiday forecast estimates US holiday spending will grow between 7% and 9% in 2021. Ecommerce sales are anticipated to be between $210 and $218 billion, a gain of 11% to 15%, according to Deloitte.

Last year’s holiday sales came in higher than expected, increasing by 5.8%, according to Deloitte. The consensus is that consumers have spent down debt and are eager to counter a gloomy summer that curtailed entertainment, dining out, and travel as COVID restrictions forced many to vacation close to home. In the US consumers have an estimated $1.5 trillion in extra savings to splurge, according to Bloomberg.

As restrictions lift, retail marketing group Shopper, in Australia, predicts consumers will embark on what has been coined as “revenge spending” sprees.

The publication AdNews writes that Australian households squirreled away more than $100 billion (AUD$140 billion) during the COVID pandemic, with 26% of Australians saying their families are better off financially than this time last year. Shopper’s Urge to Splurge Post-Pandemic Revenge Spending Study, conducted in August, revealed that during the holidays:

47% of shoppers are planning on making a major purchase (a third indicated they would spend $500-$2000);
40% of Australians are looking forward to spending on dining out and entertainment and 19% will book holiday travel
35% say that now is a good time to buy major household items.

A consumer survey by AlexPartners found 88% of US consumers plan to spend the same or more this holiday season, up 12%, as reported by Chain Store Age. “There’s unprecedented pent-up demand out there, consumers have lots of money in their pockets, in part due to recent government programs,” according to the firm.

Countering that optimism is the fact that in September new COVID cases are averaging 145,000 a day in the US with more than 2000 deaths. Consumer confidence declined mid-summer during the latest wave of infections. Market research firm Numerator reported that in July and August consumers expressed big concerns over the Delta variant with 46% reporting they were “highly concerned” a number that grew 10% between July and August as hospitals filled. The majority (51%) cited the Delta variant with 66% of vaccinated adults expressing worries about family and friends becoming infected.

Vaccination mandates and more widespread use of masks are working to bring down case loads. California, a state with 39.5 million people that reported 65,000 cases a day last December, is now reporting fewer than 8,000 daily with an infection rate of 22 cases per 100,000. In contrast, Texas reported 44 cases per 100,000 the first week of September and Florida is experiencing 42 cases per 100,000.

Deloitte vice chairman Rod Sides, the company’s US retail and distribution sector leader, writes that “While consumer concerns about health and safety have eased since the last holiday season, pandemic-influenced shopping behaviors continue to gain traction.”

Biz Insight – The big question now is which channel will outperform? The majority of shoppers say they want to get out of the house and visit stores but that depends on local outbreaks. A big concern for online buyers is on-time delivery. Savvy tea retailers finalized preparations before September, borrowing in the spring to stock teaware and gift selections for the holidays. Manufacturing was in full swing across Asia all summer but shipping delays and the extraordinary spike in container charges make it imperative that holiday promotions begin early this year. MasterCard suggests Oct. 11 as a start date for a 75-day sales season. The president of international operations at UPS advises consumers to “Order your Christmas presents now because otherwise on Christmas day, there may just be a picture of something that’s not coming until February or March.”

Proof of vaccination at restaurants is encouraging frequent diners to venture out

Restaurant Reticence is Declining

By Dan Bolton

Frequent diners are determined to return to their normal routine of dining out.

OpenTable’s most recent quarterly survey of 20,000 restaurant fans finds that 62% are now dining out at least once a week. During the first quarter, only 39% of frequent diners were eating out at least weekly. Takeout remains the most popular alternative to dining in with 34% of respondents ordering takeout at least once a week. In 2020 35% of all restaurant orders were from drive-throughs, according to NPD Group.

OpenTable reported a pronounced decline in July and August over concerns about the spread of the Delta variant. Seated dining at US restaurants is down about 11% below 2019 levels. In August the National Restaurant Association found that 60% of restaurant-goers had changed their use during the pandemic with most opting to eat outdoors and 19% saying they completely stopped going out to restaurants.

OpenTable found that 27% of Canadians intend on eating out more frequently than before the pandemic, citing a need to take a break from home cooking (40%) and support for local restaurants. Diners were more likely to have dined solo (33%) in 2020 and now eat earlier, making reservations for 5:30 and 6 pm.

Proof of vaccination should be a requirement for staff, according to 46% of OpenTable diners, up from 25% during the first quarter. A 71% majority are willing to show their vaccine cards and 23% say that restaurants must require proof of vaccination before they will dine indoors. In the San Francisco Bay Area 37% say proof of vaccination is a must.

Overall, 48% of frequent diners are willing to show proof of vaccination, but mandatory proof of vaccination isn’t necessary for them to dine in. Nationally 15% of respondents say they will refuse to show proof of vaccination if required for dining-in. In Florida, Nevada, and Arizona 23% say they are unwilling to show proof of vaccination*.

Biz Insight – When asked what they miss, 93% of frequent diners cite dining at their favorite restaurant, another (42%) are longing for their favorite menu items with (39%) hoping to attend happy hours with friends and (26%) looking forward to wine and beer tastings.

*Footnote: San Francisco Bay Area: 37% say vaccination proof is a must, the highest of any region. In Canada: 34% say vaccination proof is a must. In Vegas, Orlando, and Phoenix: 23% say they’re not willing to show vaccination cards, the highest of any region

Restructured DAVIDsTEA
Expands into Pharmacies

North America’s largest tea retail chain has emerged from bankruptcy, named a new chairman to replace co-founder Hershel Segal and is now “moving forward with a number of initiatives,” according to CEO and Chief Brand Officer Sarah Segal.

Jane Silverstone Segal, Herschel Segal’s spouse, was named director and chair of the board on Sept. 14. Hershel remains a strategic advisor and retains 46% of the company’s stock.

During an earnings webcast Sarah Segal said that DAVIDsTEA is “successfully transitioning to a digital-first company.” The company is laying the groundwork for a successful omni-channel presence that retains key retail stores, a strong and growing online business and new emphasis on placing our products on the shelves of well-place retail partners, she said.

In a release following the quarterly disclosure, Sarah Segal announced the expansion of a store-within-a-store concept to 156 Rexall pharmacies. The four-foot in-store displays showcase 25 SKUs. The Montreal-based chain offers a mix of tea and herbal infusions at 18 stand-alone locations with 3,300 retail partners including Canada’s major grocery outlets.

Sales declined 18.6% or $4.3 million to $18.7 million during the quarter ending July 31. Pandemic-driven sales were $23 million during the same period in 2020.

Biz Insight – During the earnings webcast, Sarah Segal said that “After a period of dramatic changes and transformation to our business over the past nearly 18 months, we are eager to connect with our customers in new ways.” “We are laying the foundation to scale and expand to become a truly global tea company,” she said.

— Dan Bolton

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Upcoming Events

September 2021

Level Up, Virtual
September 29 | The Tea & Herbal Association of Canada will host a mid-year Meet-Up from 10 am to noon. Admission $55 (CAD) Members $50. Agenda | Register

Click to view more upcoming events.

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News Archive

Tea Journey

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

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Listen on your favorite player

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Hear the Headlines

| Bids Top $4 Billion for Unilever Tea Portfolio
| India Considers Halting Imports of Nepal Tea
| Sales of Herbal Supplements in US Top $10 Billion

Seven-minute Tea News Recap

India Tea Price Watch

Growers no longer must seek permission to plant tea in India, a move that could encourage new tea regions to add tea cultivation, increase the number of small growers cultivating tea, and possibly increase the volume of production. Circulars from the Tea Board follow the Commerce Ministry’s announcement of new rules regarding permits. In Darjeeling, planters are calling for a ban on Nepal tea imports. Learn more….

By Aravinda Anantharaman

Features

This week Tea Biz travels to Switzerland to learn from Caroline Giacomin at ETH Zurich the physics behind that colorful sheen that rises to the surface of black tea. Is tea scum just that or a revealing indication of goodness in the cup?

… and then we travel to New Delhi, India where the Rainforest Alliance’s Madhuri Nanda reveals how practitioners of RA’s sustainable farming practices are evolving toward broader, more holistic ecosystems in Part 2 of our series on Regenerative Agriculture.

Interfacial surface film that forms on black tea.

The Physics of the Film that Forms on Black Tea

By Dan Bolton

Have you ever noticed a colorful sheen on the surface of your tea? It appears to break like ice floes in the arctic as the tea cools. Researchers once thought tea film was due to waxy substances contained in tea leaves released during steeping. That is not the case. The delicate film is an interfacial interaction of oxygen, tea polyphenols and calcium carbonate ions in water. It does not form on white, yellow, green, or lightly processed oolong teas, only black tea. In many parts of the world, soft water prevents the film from forming. Is tea film a fleeting glimmer of color to enjoy or an ugly scum to quickly dissipate with a squeeze of lemon? Caroline Giacomin, a physicist at ETH in Zürich, Switzerland joins us to explain the physics of tea film from a study she and colleague Peter Fischer recently published in the Physics of Fluids. Learn more…

Listen to the Interview

Physicist Caroline Giacomin explains the physics of black tea film

Madhuri Nanda, Rainforest Director, South Asia

Regenerative Agriculture: A Holistic Approach

By Dan Bolton

Madhuri Nanda, the Rainforest Alliance’s director, South Asia, explains that while sustainable farming ensures that agricultural practices do not negatively impact and degrade the environmental, social, and economic aspects of the surrounding ecosystem ? the focus shifts in regenerative agriculture toward adopting a broader holistic approach that enhances biodiversity and improves soil health through increased microbial activities that build resilient systems capable of withstanding adverse climatic scenarios. Read more…

Listen to the interview

Madhuri Nanda Rainforest Director, South Asia, on the evolution of sustainable farming.

News

Bidding for Unilever’s tea portfolio underway. Photo Photo © Vladimir Akin`shin | Dreamstime.com

Advent International Will Bid $4 Billion for Unilever’s Tea Portfolio

By Dan Bolton

Advent International and the Singapore Government Investment Corporation (GIC) will bid $4 billion in a joint offer for Unilever’s tea portfolio, according to a report by Sky News.

The Advent-GIC consortium is competing with at least six other large private equity firms that hope to acquire fabled brands Lipton Yellow Label, PG Tips, Lipton Iced Tea, Australia-based T2, TAZO, Pukka Herbs and several other regional brands.

Unilever will retain its most profitable tea holdings in India and Indonesia as well as the Lipton-PepsiCo partnership in the US.

Bloomberg estimates Unilever’s entire tea business to be worth $5.7 billion. Other bidders expected to meet next week’s deadline are the Dhabi Investment Authority, KKR and Clayton, Dubilier & Rice.

Biz Insight – In a July earnings call, Unilever CEO Alan Jope said “The balance of Unilever’s tea brands and geographies and all of our tea estates have a very exciting future, but this potential can be best achieved we believe as a separate entity.”

The divestiture is expected to conclude by the end of the year.

India Considers Halting Imports of Nepal Tea

By Dan Bolton

The Terai Indian Planters’ Association (TIPA) and the Darjeeling Tea Association (DTA) are seeking a “blanket ban” on the import of Nepal tea.

DTA Chairman BK Saria complained to the West Bengal Chief Minister Mamata Banerjee that a decline in production from 9.5 million kilos to 6 million kilos in 2020, and rising costs of production have affected both the domestic market and exports. He writes that “The crisis has been further compounded by the sale of deceptive Nepal tea being sold in the Indian market as ‘Darjeeling Tea’.” Immediate action is essential to save the industry’s 87 registered gardens, he said.

Nepal is a landlocked tea producer that relies on India’s much more developed tea industry for re-export, shipping about 69.4 million kilos there in the past four years, according to the Tea Board of India. Tea board data shows that only 26.6 million kilos have been re-exported during this time, making it likely that 42.8 million kilos were sold domestically, exempt from import duties, and in direct competition with Darjeeling producers. Teas exported from India pay a 40% tariff to enter Nepal but Nepal pays no tariffs to ship tea to India due to terms of the South Asian Free Trade Agreement.

Imports of tea to India are up a surprising 176% year-on-year, according to the Tea Board of India. Growers in Nepal and Kenya shipped 12 million kilos to India during the first six months of 2021, more than three-fourths of the full-year average for 2019. Traders pay as little as $1.70 per kilo for Kenyan tea, compared to the $2.50 per kilo all-India average. India’s thirst for tea has increased as COVID restrictions and drought significantly lowered yields of tea grown in India. Since there is no country of origin labeling requirements, it is likely the imported tea is being blended and marketed domestically as Indian tea.

“Nepal tea is sold at a much cheaper rate than the Darjeeling cuppa as its cost of production is very low owing to rampant use of child labor and gross violation of labor laws,” according to DTA.

DTA Advisor Sandeep Mukherjee told the Times of India, that “unless import of Nepal Tea into India is banned, the livelihood of those dependent on it would be at risk and may reach a point of no return, where more tea gardens in the Hill would shut down.”

Biz Insight – Indian efforts to limit Nepal tea imports have ebbed and flowed over the past decade. In May 2020 India halted tea shipments from Nepal for several weeks by imposing non-tariff barriers tied to sanitation and quality control. India growers complain that bulk tea shipments do not require a label of origin, FSSAI (food safety compliance), or rigorous customs checks. Low prices induce tea brands such as Tata Consumer Products (TCP) and bulk exporters to rely on Nepal to supply India’s domestic blenders, but do not purchase direct.

US Herbal Supplement Sales Set Record $10 Billion in 2020

Sales of herbal supplements in the US grew a record 17.3% in 2020 exceeding $10 billion for the first time. The total excludes brewed teas but includes green tea powders marketed as supplements.

The 2020 Herbal Market Report, released annually by the American Botanical Council, using transaction data from SPINS, reveals sales in the mass market channel grew by 25.1% to $2.1 billion in 2020. Direct sales, including online, grew 23.7% about twice the rate reported in 2019. Sales in traditional natural and health food stores grew 1.6% to $2.95 billion. Total supplement sales were $11.26 billion.

Elderberry, known for its immune boosting properties was the top seller along with apple cider vinegar and ashwagandha. Sales of Elderberry grew by 150% to $275 million in mass market and $54 million in the natural food channel.

CBD sales plummeted 36.9% to $57 million in the natural channel and declined 30% in mainstream outlets during the first year of the pandemic, the first decline in sales since 2017.

Sales of dry and bottled green tea soared in mainstream outlets last year, but sales of green tea supplements declined 7.9% in 2020, falling to $31 million to rank 13^th among the top-selling herbal supplements, according to SPINS.

Biz Insight – “US consumers spent more than ever on herbal dietary supplements for immune health and stress relief in 2020,” according to the report. “During a year in which much was out of control, many consumers seemed to take control of their own health and prioritized selfcare with herbal and fungi-based dietary supplements. As the pandemic stretches into its 20^th month it remains to be seen whether these trends and record-breaking sales will continue in 2021.”

Click to download 2020 Herbal Market Report PDF

— Dan Bolton

Read more… links indicate the article continues. Learn more… links to additional information from sources.

Upcoming Events

September 2021

Level Up, Virtual
September 29 | The Tea & Herbal Association of Canada will host a mid-year Meet-Up from 10 am to noon. Admission $55 (CAD) Members $50. Agenda | Register

Click to view more upcoming events.

Share this episode with your friends in tea.

News Archives

Tea Journey

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

Subtext

Subscribe to Subtext

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Hear the Headlines

| Sri Lanka Tea Yields Feared to Decline
| McLeod Russel Settlement Resolves Insolvency
| Bangladesh Tea Sector Returns to Pre-Pandemic Production Levels

Seven-minute Tea News Recap

India Tea Price Watch

The South India Tea Exporters Association, led by Chairman Dipak Shah, identified twin problems that have continued to be a significant challenge this year: one is the rising cost of ocean freight, and the second is the problem of pesticides in tea where the onus of testing for permissible residue levels lies with the producers. But the liability – should tea be rejected by the buyer – rests with the exporter. Learn more…. – Aravinda Anantharaman

Features

This week Tea Biz visits with Rare Tea Lady Henrietta Lovell whose passion for tea is exceeded only by her commitment to bettering the lives of those who make it.

… and then we travel to Banbury, UK to learn how the Tea History Collection is digitizing tea history one tome at a time.

Since founding The Rare Tea Co. in 2004, Henrietta Lovell has charted her own course in tea.

Henrietta Leads the Way

By Kyle Whittington | TeaBookClub

Since founding the Rare Tea Co., in London in 2004 Henrietta Lovell has traveled the globe sourcing direct for the world’s five-star dining rooms and developing relationships at the farm level where her commitment to fair pricing for the finest tea and charitable work set a standard. “If I can make people appreciate tea, it will change the world,” she says. Rear more…

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Rare Tea Lady Henrietta Lovell.

Tea History Collection founder Denys C. Shortt OBE

Tea History Collection

By Dananjaya Silva | PMD Silva & Sons

The Tea History Collection in Banbury, UK, founded by Denys Shortt OBE has hosted a full calendar of events since opening in May. This tea industry resource is now undertaking the daunting task of digitizing bound volumes recording the trademark and ownership of colonial gardens from the early days of tea. Listen as Shortt discusses the importance of preserving tea company heritage online to be shared by all. Learn more…

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Denys Shortt on the importance of digitizing tea history for all to share.

News

A monument known as the Tea Daughter at the entrance of Moulvibazar district at Srimangal, Bangladesh. Photo courtesy Faizi Tea Estate, credit: Shomoyeralo.com

Bangladesh Tea Rebounds

By Dan Bolton

The tea sector in Bangladesh is expected to return to near pre-pandemic production levels after setbacks in 2020. Like neighboring Assam, Bangladesh experienced a spring drought, high temperatures, aggressive pests, and the onslaught of the pandemic. Despite these challenges production through July is ahead of last year’s totals and estimated to reach 86 million kilos. Read more…

Spring bounty could become a fall shortfall as synthetic fertilizer supplies dwindle. Kandy tea garden in morning light by © Luboslav Ivanko | Dreamstime.com

Sri Lanka Tea Yields Feared to Decline

By Dan Bolton

Sri Lankan tea growers are experiencing the first effects of the country-wide ban on chemical fertilizers and plant protection chemicals (PPC).

After a productive spring, the fall harvest is predicted to decline beginning in October.

Herman Gunaratne, one of 46 experts picked by President Gotabaya Rajapaksa to guide the transition to organic-only inputs told Agency Press France (AFP) that “The ban has drawn the tea industry into complete disarray.”

Gunaratne who manages the Ahangama Tea Estate, said “The consequences for the country are unimaginable.” was removed from the Green Socio-Economy after disagreeing with the president, according to AFP.

President Gotabaya ordered a halt to inbound shipments of fertilizers used to cultivate food crops such as rice and cash crops including cinnamon and pepper. Growers are concerned that plants accustomed to a rich diet of nitrogen and phosphate will take time to adjust to organic compost and manure.

Tea is the nation’s highest-earning export, generating $1.25 billion in foreign currency from the sale of 300 million kilos of tea annually. Sri Lanka harvested 187.8 million kilos through July. Mid-year crop yields were 20% ahead of the half-year mark set in 2020 but prices were higher on average last year.

Meanwhile, the fiscal crisis facing the country worsened as the Sri Lankan rupee depreciated 20% against the US dollar and British Pound. Food inflation is at 11.5% and long queues at food markets signal shortages. The government has invoked rules that fix prices and prohibit the hoarding of staples such as paddy, finished rice and sugar which briefly increased to SLRs 200 per kilo.

Sri Lanka’s economy, heavily dependent on tourism, declined 3.6% in 2020 and foreign reserves are at record lows.

Biz Insight – During the next month Tea Biz will interview several key decision-makers, tea researchers, and non-government agricultural experts to discuss the pros and cons of switching Sri Lanka to organic-only cultivation.

McLeod Russel Settlement Resolves Insolvency

India’s largest bulk tea producer has settled with creditors to resolve financial peril.

PP Gupta, managing director of Techno Electric & Engineering, agreed to terms for repayment of a delinquent INRs 100 crore ($14 million) loan by McLeod Russel India, saying “this is now behind us, and we wish the company good luck.”

Techno triggered the insolvency on Aug. 6 by filing a formal application with the National Company Law Tribunal (NCLT) for redress.

McLeod borrowed the funds in 2018 and failed to make timely payments due to shortfalls in revenue from tea. The company sold several tea gardens to meet its obligations, but the sums were insufficient to satisfy creditors. McLeod currently owes its lenders approximately INRs 1800 crore (about $245 million). A resolution process, led by the Reserve Bank of India (RBI) will now proceed.

The company operates 31 tea estates in Assam and two in West Bengal, producing a combined 44 million kilos of Indian tea annually with additional holdings in Africa and Vietnam.

— Dan Bolton

Read more… links indicate the article continues. Learn more… links to additional information from sources.

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September 2021

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Tea Biz Podcast | Episode 38

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| India Adopts Tea Industry Reforms| US Considers Granting Exemptions from Chinese Tariffs| A Tribute to Nepal Tea Maker Morris Orchard

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India Adopts Tea Industry Reforms

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| Kenya Exports Saturate Black Tea Market| COVID Depresses Japanese Tea Business in Unique Ways| Unilever is Recognized as the Top Food and Agriculture Benchmark

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John Snell: Mozambique is God’s Country for Tea

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Tea Biz Podcast | Episode 36

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| Retail Sales Forecast Happy Holidays| Restaurant Reticence is Declining| A Restructured DAVIDsTEA Expands into Pharmacies

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Exceptionally Local Teas that Connect with Consumers

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Retail Forecasters Predict Happy Holidays

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Tea Biz Podcast | Episode 35

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Hear the Headlines

| Bids Top $4 Billion for Unilever Tea Portfolio| India Considers Halting Imports of Nepal Tea| Sales of Herbal Supplements in US Top $10 Billion

India Tea Price Watch

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The Physics of the Film that Forms on Black Tea

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Regenerative Agriculture: A Holistic Approach

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Advent International Will Bid $4 Billion for Unilever’s Tea Portfolio

India Considers Halting Imports of Nepal Tea

US Herbal Supplement Sales Set Record $10 Billion in 2020

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Subtext

Tea Biz Podcast | Episode 34

Listen on your favorite player

Hear the Headlines

| Sri Lanka Tea Yields Feared to Decline| McLeod Russel Settlement Resolves Insolvency| Bangladesh Tea Sector Returns to Pre-Pandemic Production Levels

India Tea Price Watch

Features

Henrietta Leads the Way

Listen to the Interview

Tea History Collection

Listen to the interview

News

Bangladesh Tea Rebounds

Sri Lanka Tea Yields Feared to Decline

McLeod Russel Settlement Resolves Insolvency

Upcoming Events

Subtext

| India Adopts Tea Industry Reforms
| US Considers Granting Exemptions from Chinese Tariffs
| A Tribute to Nepal Tea Maker Morris Orchard

| Kenya Exports Saturate Black Tea Market
| COVID Depresses Japanese Tea Business in Unique Ways
| Unilever is Recognized as the Top Food and Agriculture Benchmark

| Retail Sales Forecast Happy Holidays
| Restaurant Reticence is Declining
| A Restructured DAVIDsTEA Expands into Pharmacies

Restructured DAVIDsTEA
Expands into Pharmacies

| Bids Top $4 Billion for Unilever Tea Portfolio
| India Considers Halting Imports of Nepal Tea
| Sales of Herbal Supplements in US Top $10 Billion

| Sri Lanka Tea Yields Feared to Decline
| McLeod Russel Settlement Resolves Insolvency
| Bangladesh Tea Sector Returns to Pre-Pandemic Production Levels