Tea Biz
Tea Biz

Episode · 10 months ago

Tea Biz News and Insight - March 25, 2022

ABOUT THIS EPISODE

HEAR THE HEADLINES – American Consumers say The Worst of the Coronavirus Pandemic has Passed | Expect Strong Venture Capital Support for Retail in 2022 | Join Tea Biz "On the Floor" at World Tea Conference + Expo| PLUS listen to how the Boba Guys are Building a Gateway to Tea

| NEWSMAKER – Andrew Chau, co-founder and CEO Boba Guys, bubble tea shops in San Francisco. Los Angeles and New York City

| FEATURE INTRO – This week Tea Biz traveled to Las Vegas for the World Tea Conference + Expo where Boba Tea CEO Andrew Chau, a featured speaker, explains how relentless attention to quality elevated a simple mix of milk tea and tapioca to a $3 billion global segment that is enticing a generation of non-tea drinkers to give tea a try.

'We Really Push the Envelope for Quality' – Boba Guys make their drinks with natural fruit, real milk, real foamed cheese, raw sugar, and natural tea, brewed from loose-leaf oolong and other quality varietals and served with tapioca balls made in their factory. The bustling chain, now with 20 locations in San Francisco, Los Angeles, and New York City, was co-founded by Andrew Chau and Bin Chen.

| ON THE FLOOR at World Tea Conference + Expo – Mackenzie Bailey is On the Floor with the Tea Biz podcast at the 20th anniversary of the World Tea Conference + Expo. She reports a high level of excitement with tea vendors, customers, and attendees of the adjacent Bar and Restaurant Expo. Mackenzie spoke with several tea vendors about how the event unfolded.

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 story tellers, bringing authentic, authoritative and exclusive stories to you weekly from the tea lands. Hello everyone. This week's headlines. American consumers say the worst for the coronavirus pandemic has passed. Expect strong venture capital support for retail in two thousand and twenty two. Come Join Tea Biz on the floor at World Tea Conference Plus Expo and listen how the Bulbo guys are building a gateway to tea. Moren 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 a Wacky Lee, Bogajan, Thalawa, Harana and Elyptia tea estates. Support Save the Children Sri Lanka. Since the onset of the pandemic surveys of restaurant operators and retail grocers and restaurant goers indicate their greatest fears have sea sawed between the economic crisis and public health crisis. COVID continues to threaten health and wealth on a massive scale. But in two thousand and twenty two the view is that covid is a greater threat to business than well being. In its latest study of consumers,...

...conducted March ninth and ten, market research firm data cential found that seventy one percent of Americans say, quote, the worst of the pandemic is behind us. In quote. Corsite Researches March Fourteenth Two thousand twenty two survey of US consumer behavior in expectations indicated that public avoidance is below fifty percent. As a return to normality gathers pace data essentials, CEO Jack Lee writes, quote, there may never be an official end to the coronavirus pandemic, but post covid life has to start sometime, somehow. In quote. Lee said that about one and five people no longer worry about getting covid, well below the sixty three percent on March fifth two thousand and twenty who that they were very concerned about. A quarter, twenty three percent definitely avoid dining out, and thirty four percent are nervous but will still eat out. The remaining forty two percent say they have no concerns whatsoever. At least a third of respondents consider going to a night club, eating at a buffet style restaurant, visiting a self service supersalad venue or having drinks at a pub or bar to still be too risky. A majority considered delivery, carry out and dining at outdoor patios as not risky at all. The prevalence of economic challenges is pushing public health feares to the side rights Lee. Currently, fifty six percent say the economic crisis is the greater threat, up three percentage points since February sixteen. Two thirds of workers who have not returned to an office would prefer to stay working...

...at home at least some of the time, a trend that will lower guest counts at lunch, the most valuable day part for te sales. While two and five consumers have resumed dining out the way they did before covid twenty seven percent say it will take one to two years for life in their local community to return to normal business inside. Investors frozen by uncertainty in two thousand and twenty are anticipating a rapid return to normal. In Two thousand and twenty one, overall value of venture capital funding transactions in the US retail and consumer goods industry more than doubled from two thousand and twenty to two five billion, despite a slight reduction in the number of transactions. According to corsight research, VC financing transactions include companies in the consumer discretionary and consumer stable sectors, such as breweries, food retailers, direct marketing retailers, package foods and beverage manufacturers and restaurants, among others. Quote. We expect the strong retail focus VC funding trends in terms of value in the US to continue in two thousand and twenty two, and quote. Rights courseit hi. This is Mackenzie Bailey on the floor with the key Biz podcast. We are here at the twenty anniversary of the World Txbo and boy is there a level of excitement on the floor. Who've got t venders, customers and attendees of the adjacent bar and restaurant show all mingling together, all excited about new products. We're going to speak with some of the Te venders on the floor and see how this event is going for them. This is Mackenzie on the floor with Tibez podcast, interviewing Thomas...

Sue, CEO of starry foods. What's new with your product line this year? We're a brand new company, so it's your other product line are new and we've been into the ballbote industry for three years, but we're just carrying whatever in turn from Asian market or trying to make it a popular in the US mark as well. All of them are very interesting to the mangle and the peach, those who are the most popular. What's new at the World Tex Bo this year? Everything is pretty much new. I love it. We have so many people asking us so many questions. The good thing is we're learning from others. This is Mackenzie Bailey on the floor with Tebez podcast, with Susumu from Marama to what's new with your product line this year? We bring Japanese te which is taste very career and very pure, and you're catering to the cold brute trend emerging in the North American market. Yeah, this is one way of the enjoy the Japanese te what's new at the World Texpo this year? Sharing the the new Japanese d to The people in the war. This time the one of the takes, Bo is to get out with the band. Restaurant I wave. That's meeting with the two industries. This is Mackenzie Bailey on the for for teepest podcast with pretty pretty crash all I okenzy. Thank you for stopping by our BOOT here. Bring some white t woolong Kumari Gold, which is a black tea and a shy. So this year we are planning to follow that well list trendom so we are looking forward to bring in more herbal blends, camomile and other blends like lemon grass and green tea. What's new at the world txpot this year? Um So. It's fascinating to see a lot of new tea brands coming in, like...

...the Chi box, was just featured out an opera. So it's amazing to see restaurants are coming in here to see if they can incorporate these into their bars or restaurant. So that's really great to see the collaboration that can eventually happen in the future. Michael Harney, what's new at the world t x Bo. Well, we're having an expo would be the first thing. Let's knew. We're seeing people we haven't seen in two years. It's been kind of fund to try to restart this thing after two years in the fridge. We had a little celebration last night for many luminaries, including my father John. It's looking like it's going to be a good season and tar jealing, but it's going to be a good year. Now at Harney and sons, we took advantage of the little hiatus we're on with retooled our food service a look and we've introduced a whole new wellness line. Everyone was interested in trying to survive and get better, and we just did over our bottles so they ready to drinks. You have a new look on them. It's a little bit more distinctive. We have the hemp division, which is our sister company. We've been doing CBD and just applied for a marijuana growing license, which became legal in the state of Kennetica, New York. We have a lot of stuff percolating around at Harney and son's. We're excited to be sort of the old guard here of this tea industry and welcome people into it. Best wishes, Dan. Y'All, coo, tell us a little bit about yourself. We just started heavily marketing our retail brand, Chadow Tea Room in two thousand and twenty. That was the perfect time to push and we saw a huge success doing that online. We've been in Forbes magazine and when we were in Forbes of the first couple of times we we saw an increase in our sales. We've managed to keep that those sales steady since they've happened. We've been very fortunate. We've had so many different like magazine outlets and and people coming up to us, and we've been on Ktla five from the La are eight. That's the new station to be on. We've been working with PR...

...agencies to bring these things to light. We have planned to continue growing our retail brand for the future. Chad has been around for thirty years and we're barely retouching the surface of what it could be. It is so important to stay up to date on the different methods of digital marketing and stay up to date on how marketing is changing. Frequently, you know all of the platforms that are there. It's crazy the kind of exposure that you get from those kind of things. So that's the importance of digital marketing. Honestly, it's world t expo has been wonderful because it supports the goal of getting more people interested in tea and tea tourism through all the tastings. The thing that I'm really seeing is there is a lot of interest in education and there's a lot of interest in exploration and buying trips at the world t expos a great place to be able to engage with people who are doing that. What's new at the world t expo this year? I'm definitely seeing a lot of new business building opportunities. A lot of people want to start tea companies and they do need to be empowered with more information, education and sourcing, and they're really able to get that here at the expo. This is Mackenzie Bailey with Tebezz podcast, here on the floor with manjieve Jaya Kumar. What's new with your product line this year? What's new for us at q trade teas and herbs is that many of our clients are looking for manufacturing credentials. We are focusing on providing manufacturing solutions for the supplement industry to support that segment because tea is increasingly sold as vitamins and not America. What's new at the world t expo this year? People are talking again. People are back with seeing many of our clients and vendors after two, just three years. Everybody is very enthusiastic about talking about the future. Who as in the past everybody was focused on survive? Ring are then an entire man and Bengaluru reports on this. Weeks...

...to auction prices. India tea price support for the week end in twelve March, two thousand and twenty two. All eyes remain on the Ukraine crisis. Concerns continue about exports out in the auctions did not take place last week. In the south, the Orthodox market suffered as exporters remain resistent. COACHINS only about fifty nine percent up takeoff orthodox leaf, with Hindstun Unilever ending much needed support. Kunu to saw a similar trend, with CITC LEAF performing vettersan Orthodox and dog link first flush teas have begun to make the entry into the market. We got of its Sunday trowsery of Ring Tong t state, who says crop and quality of the first flush should be decent and while exports, which tugeling is heavily dependent on, maybe affected, Sunja points out silver lining and he says there's a huge potential for good quality dadgeling teas which meet international food safety standards to be available to the domestic market, once again reiterating the need to build the Indian domestic market beyond try such as bigger concern is to see how mechanisms can be enforced to prevent non daggeling teas from selling. Is dadgeling a cause which has been fighting actively over the last year. And now a word from our sponsor. Hello, I'm Bogdan, a passionate tea drinker and the inventor of the ultimate tea machine, the broommaker. One preparation is keyed to making fine tea. Sequential steepings delivered the best taste possible and unlock the true value of whole leaf teas and botanicals. Brey automates that process without using any pots or capsules. The simple to operate smartphone control device stores steeping profiles to consistently make great tea at the push of a bottom were also reduces time, waste and energy. That's because I engineered the brew to Remember Control Settings...

...for temperature, brewing time and quantity. Using my patented process, lets you stack steep simply and conveniently. This week TB is travel to last Vegas for the World Tea Conference, plus ex Bo or Bobo t CEO Andrew Chow, the featured speaker, explains how relentless attention the quality elevated a simple mix of milk, tea and Tapioca to a three billion dollar global segment that is enticing a generation of ninety drinkers to give tea dry bobba guys make their drinks with real through, real mel, real shone cheese roll, sugar and real tea dude from loose lea food long and other quality of arrivals and serve would be alga balls made in their own factory. The bostling chain, now with twenty locations in San Francisco. Well, say angel this in New York City, was cool, founded by Andrew Chew and Bin Chin. Thanks for Julian US this weekendrew. Well, he is bubble tea a gateway for exploring tea and depth. Great Question. Thanks for having me on this podcast and asking already such tough questions. I hope I don't insult anybody by saying that you need Boba, you need what we're doing in order to experience tea. There's Millennia of history with tea, so I'm not saying that we're rewriting all of that history. I think it's the gateway now is because we do know. You know culture. That's what we do for leaving were. Tea is something that's drunk drank over thousands of years and it's basically a cultural product and certain countries...

...it's normal and certain places coffees normal. It's at certain places it's mate's normal. What makes something normal? What makes it kind of more accessible and ingested into the culture? So when I say it's a gateway drink, what I mean by that is it's how a lot of people get into tea. You get into the debt, the deep parts of tea. We're talking about basic things like knowing what a Wolong is, knowing the difference between what is poorer, where does he come from in the world? That type of depths kind of like a gate there's a drink that I really love in Taiwan, where my parents are from, and one it's called like a high mountain long, sometimes a don't think long, frozen summit Wolong, the kind of buttery, kind of similar taste profile, and then you put like a Crema on top. It's Kremas like a sometimes milk, or some people call it cheese, and sometimes you get that milk mustache and you're drinking it along with the tea. It's almost like a milk tea, but you're really tasting the body of the drink, which is primarily, in this case, an boolong base. We sell a tag winding, which is a iron goddess tea with them, with the milk cap or a foam, and that's how so many people get in. So the idea of you getting interested to even order a, you know, a frozen summit Bolong. Yes, you're having with milk, maybe there's some sugar in it, but you really are starting to understand the profile of that flavor when you probably would have just drank a Frappuccino ten years ago. That's what we do is we really push the envelope and we source our on tea. Our Tea brant also pushes kind of innovation, meaning we do nice row tea because with with Nitro and allows you to have kind of a more of a body on the tea and so you can taste more of the nuances of the tea that you wouldn't just get if you just kind of taste it on a hot water steep. So what we do then is get people involved. A gateway is basically like the beach had right. It's like where people enter. So you're going to enter by drinking a bowl milk oolong taboiing...

...oolong a, don't think along English breakfast tea, a Ceylon Tea, and then you put that in a Boba format. The bubble gateway you describe doesn't have a sign on it announcing no one over thirty five allowed. Bubba guy shops are filled with people of all ages eating and slurping and conversing. They are animated and interactors. They poke and play with their wide diameter straws. Bubus experiential of drinking occasion that mingles quality tea at a memorable experience. Will you talk about these aspects? A lot of people sometimes would say Boba's a fat and like, well, how is it a fat? Off Two billion people drinking milk tea or have tapy Yoga every day. When Bobba first came out, it was kind of dessert it right, because historically it was an island of Taiwan and in Taidzone, which is a city in Taiwan, and you know, you have kind of the dessert culture which you said, you grow up with Tapioca and in cassava, which is what it's made out of. Right, it's a planet and it's from natively, it's actually Brazil. So like the Portuguese and Spaniards brought it over the Southeast Asia, some people say, and that's why you have similar dessert culture, like fly on cassava, putting in cassava cake across Southeast Asia. We're talking about Malaysia, Philippines and and any of a Spanish colonies in Portuguese colonies. So you had ties there and then that that dessert, that putting, got put into a milk tea culture which had existed through whether it's in Europe there's milty culture and middle easters milty culture, and even in Asia, like Mongolia, Russia, there's milti culture culture. So I think what just happened was it caught on again in kind of like the modern times as a as a as a kids drink, because the teenagers drink it, and they did load it with a lot of sugar. I was one of those kids, but as I got older, I don't know about you, but I'm metals of kind of like sucks now, so I have to watch that. And so when we created, you know, both our brands, tea people and Bobba guys, we purposely...

...made it accessible. So the formats and the taste profiles taste it like what people would want in a Frappuccino or a Midmohito, but we kind of obviously lowered the sugar content. We use more natural sugars, more the raw sugars, our in our stores. So that is kind of how we need it accessible. How do we make it accessible, in this case to Americans? It's something I can just cal casually. Well, yeah, if you don't want to drink and you want to have like a slight like a tea buzz, and your or you're young and you just are not an alcohol drinker, go, go grab Boba. And that's what you're seeing now. It's now become like this this hangout spot for people and I just love talking about tea culture. You would never a decade ago here at a rate and every day American just talk about Ulong's. You just you would hear them talk about green team black teeth. That's it. I think we've come a long way. It's we wanted much more inclusive and intrigued by what you heard in today's podcast, would you like to learn more from our global network of TBZ journalists and t experts? Remember to visit the tviz website from more comprehensive coverage. That's wwwtz Bi zlcom. Thanks for listening. Farewell, till next week.

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