Tea Biz
Tea Biz

Episode · 1 year ago

Tea News and Biz Insight - April 9, 2021

ABOUT THIS EPISODE

HEAR THE HEADLINES – A Sparkling Future for Fizzy Tea | Bubble Tea Drinkers Froth Over Drinking Straw Ban

| Vahdam Tea Partners with Goodricke Group | Starbucks Introduces Rent-a-Cup

| GUEST – Supriya Sahu, managing director of INDCOSERVE, a cooperative of 30,000 tea farmers producing 14 million kilos of tea annual in the Indian State of Tamil Nadu.

| FEATURES – This week Tea Biz visits the Nilgiri tea growing region in South India where the INDCOSERVE tea farmer’s co-operative has harnessed the creative and collective energy of 30,000 small farmers....and we discuss the challenges of timely tea delivery in the new harvest year with Jason Walker, spokesperson for Firsd Tea, the US division of the largest green tea supplier in the world.

Waking a Sleeping Giant

A money-losing federation of small grower co-operatives in Tamil Nadu, the largest of its kind in India with a history dating to 1965, languished for decades before a leader emerged with a singular message: produce tea that builds the lives of farmers and a better future, she said. “That’s our ambition to transform an organization that was a sleeping giant into one that can show the world that a small growers’ organization can be the best among the best.”

Tea Delivery

Early harvests in China, India, and Kenya sent new teas to market early this year – a fortunate head-start. Unlike last year, labor availability is good despite COVID-19 restraints, tea regions report fine weather, and orderly processing is raising expectations of a bountiful crop. Two obstacles remain. Transport is stretched to the breaking point as reinvigorated economies stir from pandemic weariness. The second hurdle is cost. Wholesalers, retailers, and importers that last year bore the weight of spiking prices must now make up for lost earnings. Expect significant price increases for both specialty and commodity teas for the foreseeable future. In this segment Jason Walker, spokesperson for Firsd Tea, the US division of the largest green tea supplier in the world, discusses challenges impeding timely tea delivery.

The Tea Bis podcast delivers tea news that you need to know, a recap of the week's major headlines, with commentary and cultural trends. Hosted by Danhol it is the voice of origin for tea professionals and enthusiasts work by think of us as a digital caravan of storytellers, bringing authentic, authoritative, exotic and exclusive stories to you weekly from the tea lands. Each week, the tea bis podcast summarizes news with the greatest impact on the tea industry. But Tea requires far more nuanced coverage than the recitation of production volumes and commodity prices. That is why the tea bis podcast is paired with the more inclusive tea Biz blog and tea journey magazine. The podcast offers a weekly mix of news and features. It is innovative and interactive, permitting listeners to conveniently contact reporters at origin to ask questions that are answered via text messages that are delivered privately to their phone. Welcome to this week's podcast. Here are the headlines. There's a sparkling future for phizzy tea. Bubble tea drinkers froth over drinking straw band bottom tea partners with Goudrit group and starboaks introduces. Run took up more'n a minute. But first this important message. Avani empowers rural women practicing sustainable agriculture, including tea, and crafts such as weaving with natural fiber and plant based dyes. Up in the towering hilalayas. CUMAN is one of India's oldest tea regions. Today we raise our cups in the name of Avani Cumane, a non profit dedicated to strengthening farming communities. Cheers to a brighter future for all. To donate, visit Avani Dash cuman dot org. Actor bread pit is all fired up about fizzy tea, specifically small bash cold brewed, certified organic sparkling tea launched by root in five flavors. It invested in the twenty five calorie botanically diverse bottled blends of teas, herbs, fruits and spices inspired by cofounder Christine and Padua's grandmother in the Philippedes, marketed as wellnessed tonics that relax, re energized eyes, revitalize, rejuvenate and revived. The teas are made without sweeten nerves or flavors and bottled in plastic free packaging. Sparkling teas of...

...a small volume niche that grew nearly ten percent each year, from two thousand and seventeen to two thousand and twenty one. According to three hundred and sixty market updates, the category has matured in the past fifteen years to include high end Gourmey non alcohol versions by Copenhagen, Sparkling Tea, a brand sold at the legendary Fort Lman Mason store in London, and innovative, soon to launch versions like no mad tea soda, a concentrate for bartenders and fans of Soda Stream and at home carbonation appliance business inside retail sales of ready to drink tea in the US total seven point nine billion in two thousand and nineteen. According to beverage and I just volume has steadily increased for the past seven years to eight hundred and sixty million hundred ninety two ounce cases. Sales globally of our TDS are estimated to reach twenty five point six billion in two thousand and twenty one, rising to twenty nine point seven billion in two thousand and twenty four. According to market researchers, M R F R. This makes our t d the most lucrative segment in tea carbonated beverages of all types. This year will generated estimated two hundred and fifty five billion in sales, with our t d t now contributing about ten percent of global relative learn more on the tea Biz blog. Bubble tea drinkers are frothing over a drinking straw band. In twenty twenty, China adopted several policies to make the Earth a better place, one of which is a band on plastic straws in restaurants. The well intension directive, however, drew the eye of bubble tea lovers forced to SLURP tapiocaballs through saggy paper straws. Alternatives include reusable metal, glass and bamboo straws, but bubble tea lovers complain, is just not the same. Plant based plastics made of corn or sugar, cane or emerging as an acceptable compromise. P La decomposes into carbon dioxide and water, and China's King of straws now uses P la exclusively. Melt tea chain, a tea, which operates four hundred and fifty stores in thirty five cities there made the switch to more expensive PLA, said one satisfied customer. We welcome the green shift, but not at the expense of spoiling our experience business. Inside April twenty two is Earth Day. This year's theme is restore the earth, of concern shared globally. In China, plastic bags and plastic cutlery are next on the list to be faced...

...out. China News Service reports that by two thousand and twenty five, China's degradable plastics market will grow to thirty five point five billion one, about five point five billion dollars us, according to analysts at walk see securities. Direct to consumer e commerce retailer Vodom tea and garden owner good ric group announced they are teaming up to distribute single estate teas from the wellknown Castleton Margaret's hope and their Bo estates and Dars Ling and a psama states, harmony, Boor Patra and De Joux. Bottom founder Balasada, said the relationship goes beyond procurement. Good ric CEO a tool Astana said he is delighted to partner with a Dynamic and fast growing new age start up that has successfully created an Indian home grown brand and more than a hundred international markets. Business insight. Vottom, founded in two thousand and fifteen, reports annual turnover of twenty six point eight million. The company has expanded its distribution network to include many tea related products. Value addition is done at origin and delivery, eliminates much of the cost and delay of multiple supply chain handoffs. Sarda has been adept at securing outside financing to grow the company he started at twenty three years of age. Vannom earns ninety nine percent of its sales outside India. Starbucks introduces rent a cup take away tea drinkers experiencing remorse after beverer's retailers refuse to fill reusable cups last year will be pleased to learn that starbucks is launching a borrow a cup option. The trial at five Seattle area stores allows customers to order their drinks in a reusable cup with a one dollar deposit. When they return the cups at a contactless kiosk at the store or from home using the ridwell closed loop service, they get their dollar back and ten points rewards through the chain's loyalty program. Ridwell professionally cleans and sterilizes the cups replenishing stores. Steadies show that circulating a single Reusable Cup replaces up to thirty disposable cups. The reusable is then recycle business inside Americans described a hundred and twenty billion disposable cups a year. According to the Clean Water Action Fund. Plastic coatings that line hard cups often prevent them from being recycled. Starbucks has publicly committed to a circular economy that recovers...

...and repurposes waste, pledging to reduce by fifty percent the billions of pounds of waste generated annually. Are Vinda and in Theremin in Bengaluru brings us this week's t price report. This is Advan Downe and tramond reporting from Bengaluru, India. Sale thirteen the week ending April third twenty twenty one. Last week began with holy the festival that marks the beginning of spring, but sale thirteen continue to focus on the south Indian auctions. However, there was no sale in coachy and only CTC was offered on tea serve. So we looking at Kuno and Coimbato prices. In Kunova hire for Orthodox Leaf at hundred and forty six to piece, thirty one passie as against hundred seventeen to peace, twenty four pass for CTC leaf. Does prices were closed with hundred and twenty six to piece, twenty two pass Orthodox Dust and hundred and twenty two peace, twenty six pass for CTC dust. In Coimbatoor, two Orthodox leafty fetched higher prices at hundred and twenty to P is see pass as opposed to a hundred and sixteen to piece fifty three pass for CTC leaf. However, CTC dust did better at hundred thirty nine to piece at pass, as opposed to hundred and twelve to piece fifty four pass for Orthodox dust. The total sale was expectedly lower, at seventy percent in sale thirteen, down from eighty percent and sale twelve. This was seen more cutely in the dust sales where, out of one thousand two hundred and twenty lots on offer, four hundred and ninety five left and sold. Even Green Tea, of which two hundred and six kilos were on offer, remained unsold. But this week the focus is on Coolcutta, as the Orthodox auctions are going to be on and the sale fourteen and expectations are high on production, on quality and on prices. And now or word from our sponsor. Q trade teas works with tea purveyors and every scale, from promising startups to the world's largest multi national beverage brands in the hot, iced and Barrow Tea Segments. With US based formulation, blending and packaging services, que trade can help you innovate, scale up and grow your specialty t brand. For more information, visit our website, que trade tascom. This week te BIS visits the Nilgary t growing region in south India, where the incoserved tea farmers cooperative of his harness the creative and collective energy of thirtyzero small farmers, and we discuss the challenges of timely tea delivery in the new harvest year. But Jason Walker, spokesman for first tea, the US division of the largest green tea supplier in the world, waking a sleeping giant, a money losing federation of Small Grower Cooperatives and Tami, I'll now do. The largest of its kind in India, with a history dating to one thousand nine hundred and sixty five, languished for decades before a leader emerged with a...

...singular message. Produced tea that builds the lives of farmers and a better future. She said. Well, that's our ambition, to transform and organization that was a sleeping giant into one that can show the world that a small growers organization can be the best among the best. An officer of the Indian administrative services, so PRIASA, who arrived in the melegaries in two thousand and nineteen to head Incos of a cooperative of tea farmers started by the government of them and ladder back in one thousand nine hundred and sixty five and on the two years she is still this last making corporative into a profitable one. Inca serves thirtyzero small farmers and sixteen three factories are producing fourteen million kilos of three per year, which includes a newly launched retail range marketed through food trucks and tree houses. We talked of Supray, about how she pulled off this a vicious and audacious plan, about how she's broken stereotypes about cooperatives, but the perception of anything that is government run and also by the nilgarity, except from the interviewer here, pgning, with what incluserver was like when she arrived. No, INCUSA. Basically it's like a sleeping joint. That's the word I'm going and telling my team all the time. We are awakening it slowly. It has a huge potential and it could be a game changer in the tea industry. What does it incursive story you set out to narrate. So, if I put myself in my farmer shoes, for whom we are working, I think then our story would be that we want to produce tea which is sustainable, which is ethical. I think these words are very, very commonly used, like empowerment and this and that, but we really mean that we want to produce a tea which kind of, you know, base the lives of our farmers for up towards a better future. That is the story. So from an organization that was like a skeeping giant to an organization that I can show to the world that a small growers organization can be the best among the best. That is what our ambitionous, her significant instrument, profitable build. We are profitable. We have turned profitable, as I told you that my most of my factories have turned profitable. But I think we are not only looking at profitability in terms of money, because you know, a lot depends upon the market for tea. Also we are looking at profitability in terms of what role as an organization, as a cooperative, we played for the people for home we were established, we were made. For example, are we aligned with the sustainable development goods? I think for US profitability would be more...

...in those areas. So look at the UN sustainability goal. One, poverty, second, one, hunger. Then you have eight, nine, ten, which is did you provide livelihood opportunities? Did you reduce their vulnerability to situations like covid? Yes, we did. During the covert period we were the only fact only cooperative, only factories. We were operating with all precautions because there was a huge demand for tea from various other states, especially from Kerala, and two thousand tons of tea, which we normally apply in a year, we supplied in twenty one days to carry during the covid time. None of our farmers had to borrow, none of our farmers had to face the the brunt of covid that is where our profitability, that is where our existence matters. Did you reduce the vulnerability of your farmer too, unprecedented crisis like a pandemic like covid. That is where we played a very important rule. We are very proud about the fact that when this order was asked, whether you will be able to do it within three days, all the farmers, they sprung to action. We opened our factories thanks to the support by government of them Nadu, we were the only people working. We walked entire covid period and we fulfilled our the commitment and we earned twenty one crows which we distributed to our farmers. I think the real profitability or the success of an organization lies when you are able to support your farmers in situations like this. Early harvests in China, India and can use and new teach to market early this year, a fortunate head start. Unlike last year. Labor availability is good. Despike covid nineteen restraints. Tea Regions report fine weather and orderly processing is raising expectations of a boutiful crop. Two obstacles remain. Transport is stretched to the breaking point as reinvigorated economy stir from pandemic weariness. The second hurdle is cost. Wholesalers, retailers and importers that last year bore the weight of spiking prices must now make up for lost earnings. Expect significant price increases for both specialty and commodity teas for the foreseeable future in this segment. Jason Walker, spokesperson for First Tea, the US division of the largest green tea supplier in the world, discusses challenges impeding timely tea delivery. Jason Covid Nineteen,...

...in the chaos of lockdowns this time last year presented unique delivery challenges. Describe how the logistics hurdles differ for the two thousand and twenty one harvest. We did see locations and origins that either could not get any tea out at all or we saw that they could not get anything out on their regular schedules. There were multiple verys of disruption that were happening last year. This year we are seeing a more steady flow. We are seeing harvests started earlier compared to last year. Things look like they're much more on track. In October the dollar costs of shipping really started to ratchet up. Things were behind schedule, but then we started to see there was just an inadequate supply of either ships or containers. Things were piled up because of ports that had been closed. Then you had increased demand for online retail. Lots of new equipment and personal items that were getting shipped. People who used to spend their money on a dinner out are now buying exercise equipment and things like that. So you just have more stuff trying to get on the water. At the same time, containers not even available. For weeks, you saw containers sit at ports waiting for days or weeks just to get a loaded onto a ship, and then we were hearing stories that some of those ships were returning straight away empty handed because they the rates for, Say, East Asia into Western us were four times, sometimes the regular going rate. We are seeing, still seeing some of that. We had to share are some of that burden of cost with with our customers in two thousand and twenty importers, wholesalers and retailers. He's the price shock for consumers by absorbing some of the sharp increases in transportation costs. This year prices are expected to rise, with retailers promoting pre orders and fewer free shipping offers. What advice can you offer to reduce the cost of transporting tea, but if you know roughly when you need it, that helps everybody along the line prioritizing this order. Then you had increased demand for online retail. Lots of new equipment and personal items that were getting shipped over. Personal Retail, I should say, that type of thing where people who used to spend their money on a dinner out are now buying exercise equipment and things like that. So you just have more stuff trying to get on the water at the same time. Then you saw ocean freight where, from say, Shunghai to Long Beach or Los Angeles, that ship and we track some...

...of our orders and and ships going from say, October and later on even into this early spring, here you saw the ships waiting off the port in the water for five days, sometimes more, before it could even get into a harbor or to actually get unloaded. It also kind of helps average out. You may pay higher now, but you may be able to kind of all set that later as shipping goes down and we all can adjust our price. Intrigued by what you heard in today's podcast, would you like to learn more from our global network of Tbiz journalists and t experts? Contact them direct through subtext private message based platform. Avoid the chaos of social media and start a conversation that matters. Subtext message based platform let's you privately ask meaningful questions of the Texperts, academics, t Biz journalists reporting from the tea. Lets you see their responses via SMS texts which are sent to wrect your phone. visit our website subscribe to subtext that instantly connected the most connected people in tea. Remember to visit the t Biz website for more comprehensive coverage. That's wwwft Biz bizcom. Thanks for listening. Farewell, till next week.

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