Tea Biz
Tea Biz

Episode · 4 months ago

Tea Biz News and Insight - February 11, 2022

ABOUT THIS EPISODE

HEAR THE HEADLINES – Restaurants are Clawing Back to Normal | Nepal Tea Exports Plunge | Tea is a Bit Tepid in Grocery, a TEAIN22 Forecast 

| NEWSMAKER – Elizeth R.S. van der Vorst, Consultora de Negócios do Chá, Certified TAC Tea Sommelier

| FEATURES – This week Tea Biz travels to South America where tea lovers from across Brazil are organizing the country’s first Tea Culture Week scheduled for early August 2022. Amigos dos Cha founder Elizeth R.S. van der Vorst, Eli to her friends, and Yuri Hayashi, founder of Escola de Chá Embahú in São Paulo announced the event. Eli joins us this week to discuss tea culture in Brazil. 

Brazil Announces a National Celebration of Tea Culture –Tea Culture Week, scheduled for August 1-7, 2022 will feature online and in-person activities across the country. Retailers, marketers, tea educators, and volunteer enthusiasts have been planning the event for months according to Eli. Events include special tastings, formal afternoon tea, gift offers, and discounts to encourage sampling as well as public presentations, workshops, and gatherings in parks and tea houses. The more than 200 million people living in Brazil, a country hard-hit during the pandemic, are traversing a familiar path as health-conscious consumers seek plant-based foods and beverages. During the period 2013 to 2020 tea consumption increased 25%, “almost double the world average of 13%” according to market research firm Euromonitor. In the past five years specialty tea cafes and franchised tea emporiums have flourished, says Eli.

The Tea Biz podcast delivers tea news that you need to know, a recap of the week's major headlines, with commentary and cultural trends. Hosted by Dan Bolt. It is the voice of origin for tea professionals and enthusiasts worldwide. Think of us as a digital caravan of storytellers, bringing authentic, authoritative and exclusive stories to you weekly from the tea lands. Hello everyone here. This week's headlines. Restaurants are clawing and went back to normal. Tea is a bit tepid and Grocery Tea in twenty two forecast and the PAL tea exports plunge. More in a minute, but first this important message. What makes a Perfect Cup of Ceylon tea? The Perfect Cup is from the tea businesses that ensure the protection of all the children living within their tea estates. We Salute Kailani Valley, tell Awackilee, Bogajan, Thalawa, Harana and Elyptia tea estates support Save the children. Sri Lanka, despite easing lockdowns, customer counts continue to lag, leading to sloggish tea sales and US restaurants and cafes. Winter normally boosts hot tea sales to seasonal highs, but steep pikes and menu prices, reduced hours of operation and fears of covid infection kept customers home. After the holidays, tea sales and food service to clined and estimated forty percent in two thousand and twenty according to market research firm global market insights in Selbyville, Delaware. Recovering those lost dollars is closely tied to a return to normal that is gaining momentum. In Two thousand and twenty two food service employments surged a hundred eight thousand in January as restrictions on indoor dining east ic tea sales at lunch, which account for the majority of US t sales and food service are still suffering, however, because office workers remain at home. The future forms. January survey of Elevenzero knowledge workers in the US, UK, Australia, France and Germany found that only thirty percent currently work from their office each day. In Canada, in January, almost twenty five percent of office workers were still working from home, with forty percent at home in Ottawa and thirty four point seven percent in Toronto. Unemployment is at eight point two percent in leisure and hospitality and more than double the national US average. January, however,...

...marks the thirteen consecutive month of job gains at eating and drinking establishments. Leisure and hospitality employment are still ten percent below February two thousand and twenty. According to the US Bureau of Labor Statistics business insight, turnover and restaurants and cafes is unusually high right now, at seventy three percent. The all worker average is normally forty six percent per year, and in two thousand and fourteen, the National Restaurant Association calculated normal turnover and restaurants at sixty six percent per year. Mask mandates are one example of how covid is changed working conditions. Hourly Food Service Workers, Forty four percent is say that dealing with rude inappropriate consumer behavior is the biggest drawback to employment. According to market research firm data central restaurant workers, eighty one percent say they bear the brunt of customers frustrations. With how covid affects the country almost half. Forty seven percent of restaurant customers also say that customers have become more rude and inappropriate. A majority of food service workers sixty two percent say that customers act like the pandemic is over for them. Many, thirty eight percent, fear contracting coronavirus from customers or coal workers. Tea is a bit tepid in grocery the tea in twenty two forecast. This is the ninth of twelve ty and twenty two forecasts for the New Year. Since packaged hot drinks are comparably priced, category buyers and Grocery in department stores pay close attention to unit turnover, not labels. In Two thousand and twenty consumer demand was insatiable, as both tens of tea and boxes of botanicals flew off the shelves, but that equivalency has since diverged. Except for ready to drink and refrigerated teas. Sales of packaged tea in grocery stores are in decline. botanicles continue to surge persistence. Market Research estimates that the global market for botanical infusions will expand at a compound annual growth rate of eight percent through two thousand and thirty one. The European market for botanical infusions is growing at six point seven percent per year. Europeans consumed threezero metric tons of botanicals in two thousand and twenty one, a total expected to rise to five thousand four hundred and twenty seven metric tons by twenty thirty one. In contrast,...

...according to a Chicago based market research firm I R I, sales of package tea in US grocery, convenience and apartment stores decline six percent in twenty twenty one to one point four billion. The price per unit increased by seven cents to three dollars in fifty three cents, in step with inflation. But unit sales of tea bags and loose leaf tea declined seven point eight percent. Sales value of canned and bottle teas grew four point four percent to four point three billion. But here two unit sales decline two point eight percent, mainly due to food service closures. Quote. Black Tea has been consistently losing share to other formats, above all fruit and herbal tea, which appeared to better address consumer concerns and quote. Writes Euro Monitor in its tea in the US report. When grouped as a single category, that includes teas, Tissans, roibos in Urbamonte, spending on plant base botanicles is sufficient to lift the largest tea category to positive growth. People are drinking more, not less, tea and teassans. Their preference in retail channels, however, is shifting. Sales of specialty t online grew by triple digits during the early days of the pandemic and continue to gain share. Consumer surveys indicate seventy one percent of US tea drinkers purchase their tea at grocery outlets, with twenty percent choosing discounters, but more than fifteen percent are now buying online. Business insight consumers continue to overstock a bit when shopping, but hoarding is no longer common. US Grocer shelves remained bare. Beverage out of stocks remain frequent in two thousand and twenty one, although generally short lived, according to Iriz CPG supply index. The II dashboard uses point of sale data and algorithms to dynamically calculate the percentage of in stock items by category, including beverages, by region or by state. Trucking and shipping delays, a shortage of labor, bad weather and disruptions due to the spread of the omicron variant are largely responsible for current out of stocks. This week, out of stocks to average nineteen percent for beverages, including our TDT, up from sixteen percent the weekending January thirty the IRI index, so seventy eight percent availability for all package goods, edible and non edibles, without a stocks running as high as forty six percent in some categories. The service is...

...free. Napole tea exports plunged by a third. Is India exerted greater control over a porous border, while simultaneously cracking down on packeteers that illegally blended tea passed off as Indian grown. The CATHMANDU post reports that during the period July two thousand and twenty one through mid January, two thousand and twenty two, tea shipments to climb by more than thirty three percent. Volume fell to six thousand five hundred and ninety metric tons. Value Decline by nine hundred and twenty thousand rupees to one point eight five billion rupees, about fifteen point four million US dollars. Last November, Indian notified Nepal producers that it would suspend their import license if it found they had exported low quality teas, teas that did not meet food safety standards and teas that did not list the country of origin. Nepal imports are often priced well below nearly identical teas grown in India. India also refuse shipment of Nepal Tea riving from countries other than the Paul. Indiana Paul Trade under a tariff free agreement, but that does not preclude India from stopping shipments under different pretexts. According to DPAC Canal, Nepal's director of the National Tea and Coffee Development Board. Canal told the newspaper that quote unauthentic rumors besmirching the quality of tea contributed to the decline. He cited the fact that India and post requirement for two separate laboratory tests instead of the previous requirement for one lamp certification, a policy that stranded six thousand metric tones of export ready tea and Yapa. Business inside complains about the restrictive import policies led the talks between the two governments in January, resulting in less onerous enforcement. Nepal's domestic market consumes most of the twenty fivezero metric tones of tea grown there. The remaining forty percent is exported, with eighty percent of that total, mainly CTC cut the air curl destined for India. The remaining tea, mainly Orthodox, is traded with Germany, Russia and the Czech Republic, as well as Japan, Arabinda and and there men in Bengaluru reports on this week's t auction prices. India tea price report for the Week Ending Fifth February, twenty twenty two. It's snowing and a jeeling the first time since two thousand and seven, yet another sign of climate change. Gardens remain closed in dudgeling and the...

...rest of north India for winter, but planters said the sweather points to a good first flush to be expected next months. Meanwhile, the discussions on policies, prices reforms continues. This week the Indian Tea Association is proposed a minimum flow price for both made tea and green leaf. The group is saw the government's not to implement this. The price they propose will be linked to the cost of production plus quality of tea. In Assam, the Chief Minister, Himantabis, fast summer announced that a Samti industry special incentive scheme to help forty t gardens develop resorts in a bit to build ty tourism as added Avenue in Auctions Save Five coaching. So good demand for both leaf ty and us, with over eighty percent and office sold. EXPORTERS TO CIS in the Middle East were active for Orthodox leave, while up country buyers were active for CTC. Leaf blenders were active for CTC does, despite the subdued interest from big buyers, which is increserve and supply co good. No, saw good demand for quality tease as well. And now a word from our sponsor. Huge trade understands as a successful tea blend goes beyond the creative fusion of appearance or Roma and flavor. Are Multi Award winning product. Development team is passionate about convert natural ingredients. It's sensory experiences that customers grave. Every recipe is formulated with a commercial backbone of dependable quality sourcing, with a pricing structure that supports a safe, regulated, profitable and scalable plant. Que Trade meets every brand's retail, food service and ECOMMERCE need. For more information visit our website, que trade tea'scom This Week, tea bis travels to South America, where tea lovers from across Brazil or organizing the countries. First Tea Culture Week, scheduled for early August. Two Thousand and twenty two imiges, those Chawa founder Elizabeth Vandervorst Ella to her friends, and Yuri Hayashi, founder of a school of detraw in Salt Polo, announce the event. LA JOINS US this week to discuss tea culture in Brazil. The more than two hundred million people living in Brazil, of country hard hit during the pandemic, are traversing a familiar path as health conscious consumer seat plant based foods and beverages. Brazilians traditionally consume great quantities of coffee and herbal infusions, but will, for the first time this year, celebrate one of South America's least wellknown tea cultures, which dates to the early eighteen hundreds. Brazilians drink and average of ten cups of tea annually, a quantity that has increased from a mere eighteen grams per person consumed in two...

...thousand and sixteen, well below Chile seven hundred and thirty grams per head and much less than Ireland's two two Kilo per person average. The popularity of ready to drink tea is growing alongside Brazil's thirst for those leaf camellia sinensis, but averages, lesten, one lead per person per year. You're a Monte remains popular in the south of Brazil. During the period two thousand and thirteen to two thousand and twenty, tea consumption increased twenty five percent, quote, almost double the world average of thirteen percent. End Quote, according to market research firm Oral Monitor, in the past five years, specially tea cafes and franchise temporiums of flourish, says Ellie Elly. Will you describe for listeners the tea market in Brazil? When we start to our at tivats in Brazil and ninety s e Bar to two years from the Netherlands, El Dif front Germany, the team markets did not exist yet. We didn't have the marketing tools we have to day. We had to work in this way, face to face and directly. Sales be to be it was going is slowly, but we knew that one day this couldn't change it. We can say that today team marketing Brazil really started five years ago, when there was a boom of new tea shops, specialized stories and new teams, especialist so many years enthusiastics and Tia courses and, addition to the cursing, two thousand and thirteen we had the first official institution of tea teaching, College, is Collar de Shine in Baul, founded by you, the Ayash and her husband, cloud Jubirizi Kalo. In parallel, and we see this leap in the market, we saw the growth of a tea community on social networks, which motivated a great number of consumers, anti lovers. I have to say that was on in two thousand and twenty, with depend emyk, that we felt a great demand for a health in lifestyle, generating a significant increase in the health food and beverage sector, including, of course, Tis blends and t suns. We feel...

...that this the market is growing, still growing, and do the versality that we have whis the Kamla Se NACIS and, according new tendence with thing mixology and culinary we are gaining strength to dispel the meets that the tea is just a hot drink to have in a hinter season. Today, our mark have growing number of team portant and it's words to mention that Brazil has a little tea producers community aiming for quality tea. By the way, do you know that Brazil was the first counter to produce tea in the Occident? The introduction of t cultivation begun in eighty ten with the rival of seating seeds and Chinese is to Brazil. Tea Culture Week schedule for August first to seven will feature online and in person activities across the country. Retailers, marketers, t educators and volunteer enthusiasts have been planning the event for months. According to Eli, events include special tastings, formal after and tea gift offers and discounts to encourage sampling, as well as public presentations, workshops and gatherings in parks and tea houses. Will you describe the goal you have in mind? Our Focus? It's so we spendy. It is market and bringing a minimum of knowledge to Brazilian own the top key. We want also to keep it the cuture alive. We will be a little contribution for our team market. How do you see the future of you in Brazil? This is the question that I am excited to us, sir, because I am a very positiv in the the tea market. Always I have been postive. I am to eighty seven years and the team market here in Brazil. I pass not so eas time and I am still here and I have a lot of project is to I have. So I can say that, with the help of such engaged and serious people who have knowledge and such a clear vision of our team market, all deeseergy can only give us a lot of openness for our future. I believe that in order to be ten a well instructure market, it's necessary to create...

...aronness and consistence with our Brazilian consumer. The consumer is the key. Teaching them is necessary in order to spread this uncient culture. Education needs to be a Certtiev because in the future we will be thankful Crete results and then the Brazilian market can be visible to the rest of the world. Of course, there is a needed for help from various government agencies, with the benefits and assistance to t producers, farmers and greater openness to importers, who suffer from various impediments. We have a great challenge ahead of us. The t movement is just beginning, a tip of the great iceberg which is to spread titut in Brazil, but they must touch and imparts. Thing is that the t bring us together in a passionate way, steering our sense. This what we like to show and teach for those who have not yet experienced this delightful beverage, and to those who already know. We asked them to help us to spread this culture around our country. Intrigued by what you heard in today's podcast, would you like to learn more from our global network of Tebis journalists and t experts? Remember the visit the tebiz website for more comprehensive coverage. That's wwwt Biz bizcom. Thanks for listening. Farewell, till next week.

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