Tea Biz
Tea Biz

Episode · 10 months ago

Tea News and Biz Insight - February 26, 2021

ABOUT THIS EPISODE

NEWS HEADLINES – Retail Sales Thawed in January | Restaurant Reticence Persists | Kenya's Tea Export Earnings Surged in 2020 | Assam Increases Daily Wages by 30 Percent for Tea Workers.

FEATURES – This week Tea Biz visits London for a chat with David Veal about the European Speciality Tea Association’s newly launched training program for tea professionals… and we travel to India for a discussion on the future of handcrafted speciality and indigenous tea.

Collaborative Training Program - The tea industry lacks a good, consistent, authoritative, recognized educational program that offers a universally acknowledged certification, writes ESTA's David Veal. Tea Biz asked what makes the association’s new training program unique? "The aspiration of our program is that not only knowledge and skills, but professionalism and passion will be stimulated by those participating in the program, and that the overall results will be an ability and desire to buy, brew, serve and promote better quality tea, and in so doing, educate consumers and encourage them to experiment with new and different teas," says Veal.

Speciality and Indigenous Teas - India’s tea industry has for long, been about two types of tea, CTC and Orthodox. But in recent years, we are seeing the emergence of the specialty tea segment, which includes new tea types, and handmade and artisanal teas, and also wild and indigenous teas. Bengaluru-based Aravinda Anantharaman speaks with Parag Hatibarua, a tea consultant who works closely with these teas and their makers.

The teabe is podcast delivers tea newsthat you need to know, a recap of the week's major headlines, withcommentary and cultural trends. Hosted by Dandol, it is the voice of origin fortea professionals enthusis the world. Byle think of us as a digital caravanof storytellers, bringing authentic, authoritative, exotic and exclusive stories to you weeklyfrom the tea lands. Each week, the tea Bi is podcast summarizes newswith the greatest impact on the tea industry. But Tea requires far more nuanced coveragethan the recitation of production volumes and commodity prices. That is why thetea Bi is podcast is paired with the more inclusive teabe is blog and teajourney magazine. The podcast offers a weekly mix of news and features. Itis innovative and interactive, permitting listeners to conveniently contact reporters at origin to askquestions that are answered via text messages that are delivered privately to their phone.Welcome the two thousand and twenty one tea harvest is under way in Jiuzu,the Chinese province with the most acreage under tea. Warm spring weather enabled pluckersand poo on to start, about twenty days us before the rest of China'sdeep producing regions. Here are the headlines. Retail falls a bit, restaurant reticence. Kenya's tea earning surged in two thousand and twenty and a Psalmn increasesdaily wages by thirty percent for tea workers. More in a minute, but firstthis important message. Up in the towering Himalayas, Kumo is one ofIndia's lost te regions. Today we raise...

...our cups in the name of ofany, the Kumoun nonprofit dedicated to strengthening farming communities. Cheers to a bragof future for all. Strong January sales signal a retail fall in the US, despite high unemployment and Covid lockdowns, retail sales grew by five percent inJanuary, the strongest performance since June, according to the US Census Bureau,which found that eighty eight percent of those receiving federal stimulus checks immediately spent themoney. Construction and manufacturing workers are returning to job sites. As the vaccinerollout gains momentum. Rates of infection and hospitalizations are down seventy two percent.From a January peak. Bus Inside Congress is debating an addition one fourteen hundreddollar payout that will boost sales through the spring and summer. Economists at Bankof America predicts stellar growth, but the Federal Reserve cautions at the recovery isuneven and incomplete, with hospitality and entertainment experiencing the slowest return to normal inthe US. The National Restaurant Association reports that eighty three percent of American adultsso they are not eating in a restaurant as often as they would like.Market research firm data cential has routinely surveyed consumers on behalf of restaurant owners sinceMarch two thousand and twenty. Last week, forty three percent of consumer said theystill definitely avoid eating out fear of visiting restaurants peaked in April at sixtyeight percent. Ask whether their greatest concern...

...is public health or the economic crisis, fifty four percent said they are more concerned about public health, but that'sdown from sixty one percent in January. Starbucks, a proxy for the retailbeverage segment, reported same store sales were down five percent in the latest quarter, an improvement over the nine percent decline in same sore sales. Last fallstarbucks locations in China turned positive for the first time since the panic began.Nur a predicts a ten percent jump and sails at eating and drinking places intwo thousand and twenty one, largely due to pent up demand. In themeantime, there are still dark days ahead for tea themed restaurants. Business insideSeattle's Queen Mary Tea Room Faces Permanent Closure. Rights owner Mary Gringo Gringo is operatedto Seattle tea landmark for thirty three years. Last marsh she was forcedto close the dining room and now she is out of options. In Seattlewe're only allowed to seat at a twenty five percent capacity. The Queen MaryTea Room is located on a hill with no available space to do any outdoordining. We're so small it just really doesn't make sense for us to openunless we are at full capacity. We've shut off our phones, our Internet, stop the garbage, just about everything. It's all we can do. Ourtea emporium across the street from the restaurant has remained open. We've builta small deck and started serving cups of tea to go and crumpets. Westarted a go funding campaign to ward off a permanent closure of the Queen MaryTea Room, and donors of sense contributed thirtyzero dollars. That clock is ticking. Kenya was handsomely rewarded for a bountiful...

...two thousand and twenty crop that filledthe global gap in black tea exports. The Canyon Tea Directorate reports more thanone billion in sales and increase of nearly three billion shillings compared to two thousandand nineteen. Lockdowns curtailed India's harvest and logistics hampered black tea suppliers globally,enabling Kenya to export five hundred and eighteen million kilos last year, up fromfour hundred and ninety seven million kilos in two thousand and nineteen. Black teaproduction globally declined two point five percent in two thousand and twenty, according tothe Global Tea Ji Jest, which writes that the bulk of that decline wasin India, which was down a hundred and thirty five million kilos for theyear. Business inside Pakistan previously favored Indian Black Tea, but political tensions overthe cashmere region virtually halted trade. Pakistan purchased the largest quantity of Tenya's tea, followed by Egypt and then Russia. India tea sold to Dubai for reexports still find its way to Pakistan in blends. Last week, garden workersin a PSAM received a thirty percent increase in wages, equivalent to seventy cents, raising their daily rates from thirty to three dollars per day. Union leadersrepresenting garden workers say the fifty rupee increase is insufficient. Wages are an issuein the state elections this year. Congressional leader Rahul Gandhi promised an increase tothree hundred and sixty five rupees, the equivalent of five dollars per day,if the ruling BJP party is re elected. Separately, the federal government announced aten billion rupeat proposal to improve the...

...welfare of a psalms workers. Businessinside. Tribal workers comprise seventeen percent of a psalms population, a deciding factorin forty of the state assemblies, a hundred and twenty six seats. Thelong overdue in increase dates to two thousand and seventeen when a wage advisory boardrecommended an increase to three hundred and fifty rupees per day. T is laborintensive, with wages accounting for sixty five percent of the cost of production.The domestic price of tea rose in two thousand and twenty, giving growers additionalleeway. But many argue that the Coloni ill error plantation model is failing.And now a word from our sponsor. Q trade teas works with tea preveyorsat every scale, from promising startups to the world's largest multi national beverage brandsin the hot, iced and bottle tea segments. With US based formulation,blending and packaging services, q trade can help you innovate, scale up andgrow your specialty tea brand. For more information, visit our website, quetrade tea'scom this week tea business its London for a Chatwood David Veale about theEuropeans speciality t association's Newly Launched Training Program for tea professionals, and we travelto India for a discussion on the future of handcrafted, specialty and indigenous tea. The tea industry lax of good, consistent, authoritative, recognized educational programthat offers a universally acknowwledged certification rights.

David Bale, executive director of theEuropean speciality t association, Tea Biz as, you able to explain what makes theAssociation's New Training Program Unique. The aspiration of our program is that notonly knowledge and skills, but professionalism and passion will be stimulated by those participatingthe program and that the overall results will be an ability and design to buybrew, serve and promote better quality ty and, in so doing, educateconsumers and encourage them to experiment with new and different ties. You explain,their courses are founded on collaboration. So this collaboration has been delivered in twoways. Firstly, by working with a wide number of recognized industry professionals,using their skills, knowledge and experiences to create the curriculum for the various modules, and secondly, by delivering these modules and the resultant certification in in partnershipwith existing high quality individuals, educators and trainers, as well as with existingsuccessful schools and academies. Students developing their knowledge and skills will be able toadd European speciality association certification to their CVs and therefore enhance their career progression.And, conversely, those recruiting and promoting within the industry will be in aposition to demand European Speciality Association to certification from their staff and indeed sponsor theirstuff to become certified in the relevant disciplines. Of course, this will only workat the quality of the content and the delivery of the modules is consistentlyhigh as well as relevant, and we're absolutely certain that this model, basedon working with industry leaders, will be successful to enroll visit speciality to europecomtea consultant parogue Hoddy borrower writes that higher value teas are not easy to make. Takes a lot of love, he...

...serves, a lot of dedication,a lot of experimentation. You've got the first learn they are of making theseteas with love and then move slightly more mass market. The Indian tea industryhas prolonged been about two types of tea, CTC and Orthodox, but in recentyears we seeing the emergence of the speciality t segment, which includes newtea types and handmade in at his nualties and also viole in indigenous teas.This is Vanda an enthromon. In conversation with Paraghatti Barua, who works closelywith these teas and the makers. India traditionally has been a mass consumption market. Right people, particularly the new millennials, they are experimenting in the wish toexperiment on other tastes. That has also been a favorite of disposable income, if I might say so. People are trying a new kind of teas. This is one of the reasons where speciality tea has come up in India, Moret so, most specialty teas, that we might put it, whetherit's white tea, whether green tea or yellow tea, these are largely fromChina, Korea or Japan. Now, whenever we wanted, or the IndianIndians wanted to try these teas, we had to bring them in from exportthem into into India. Teas in Japan or China, these are way.These become very expensive. So there had been a few pioneers in the specialityt segment who started to work on special or speciality T, if I mightput it in that sense, which is not orthodox or CTC, not necessarilyblack tea. Now they have been teas from money pool which are coming out, which we well know, for a speaker has started to do some verygood work. Raj Borrower from from Rujani,...

...mind you, Rad friend of afriend of mine. I'm sure it's yours too. So Raj has beendoing some very good work in terms of speciality and indigenous ties. Donni Polo, which I work with very closely. It's like home. It's an experimentalstation for me. We've started in a very small way to experiment and tryingto bring out these speciality teas plus indigenous teas, to the market. I'mvery proud to say that these have been very well received. I teach tea, as you well know, and I have thirty four. I've had thirtyfour international students. A lot of my students are in the tea business.The work as tea so earliers. Some work is the tasters and international teafirms. They have shown a lot of interest in indigenous teas. In fact, full up. I have sent full up to Greece, I have sentfull up to America. I've sent full up a Canada silver needles. We'vealso made some Baimudan's golden needles. Even money poor fights and smoky and verywell received and gives me great pleasure that you know they have been real ordersagain and again asking for such teas here and again. When I say Orthodox, we are making a lot of handmade tippy Orthodox, which is very,very well received because it gives you the traditional strength and Maltiness, plus,because of the tips, it gives you that flavor and the flowery kind offlavors. So yes, it has been very well received. There is amarket and it's growing. How does this segment fit into the larger Indian teaindustry? It's a very micro industry because for the for the larger tea industry, it's the bulk tea which makes money.

Oh, you know, that's howthey say in it. But there is, there has been a shiftof from what a very small, little minuscule ship. But nevertheless, peoplewhen they've seen the kind of demand for it, the kind of popularity andalso, very interestingly, the price realization in the options. Golden needles,that seventyzero rupees in the auctions. Even silver needle a twenty twenty fivezero rupeesin the auction. So you know, the auction is a battlemeter. It'sthe best publicity for any garden. No Mark. So it has been noticed. The demand is a is a little slow because it's we are still veryit's a nascent market but as it at the Blos, I'm sure a lotof people will try and shift into higher value ties. But, as Isaid earlier, higher value ties are not so easy to make. It takesa lot of know how would be the wrong word. It takes a lotof love, a lot of dedication, a lot of experiments. So you'vegot a first learn the art of making this with love and then move alittle more into a slightly more mass market. Why Indigenous Tea? In a villagein Aru natchell when I was just walking around and I saw they making, drying some tea. So I went happen to ask. Well, Oh, mark was there? My friend grief, find no mark and I we werejust working at and so I asked what is this? This is athis is tee. I said, where is this from? This is thevillagers make it. So how do they make it? So then we walkthrough the forest and we saw these tea trees. So they pluck these teatrees, they chop it with thou, with the machette Sun Riot. That'sa traditional team. So I actually asked them, what do you do withthe CDU. Do you sell it?...

Is it a no, we don'tsell it. We the village brings it. So I said what? What if, if you can't set it is he said, so we feed itto the pigs. Then it's our duty because if I cannot take this out, this traditional indigenous steel be lost to his in history and that we thatwe tragic. What is the road blocks in promoting and creating a market forspeciality teas? Creating a tea is one thing, selling it as another.So the the biggest challenge that I find my interaction with socalled or small,marginal or small tea makers. I will call them small tip farmers, becausethat you go into, you know, Green Leaf, but small teammakers,is finding a market for it. They are small, they do not havethe capital to create at a marketing team or you know what it takes tomarket teas. So that's probably the biggest herder. They have a lot offees. But then again, you go to sell it and you have tobring it out to the modern D drinking world, which again is number onein India, and the challenge, and it's my dream to take it tothe global be drinking world intrigued by what you heard in today's podcast. Wouldyou like to learn more from our global network of TB is journalists and texperts? Contact them direct through subtext, private message based platform. Avoid thechaos of social media and start a conversation that matters. Sub Text Message basedplatform let's you privately ask meaningful questions of the t experts, academics and TBis journalists reporting from the telates. You see their responses via SMS text whichare sent to wrect to your phone.

...visit our website, subscribe to subjectsto instantly connected the most connected people and tea. Remember to visit the tBiz website for more comprehensive Covera Chra's wwwft Biz bizcom. Thanks for listening.Farewell. Till next week.

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