Tea Biz
Tea Biz

Episode · 6 months 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.

Folthe teep is podcast, delivers teanews that you need to know a recap of the week's major headlines withcommentary and cultural trends hosted by Danhoe is the voice of origin fortea professionals, enthusias, t rovine, think of Tessos a digital caravan ofstory, tellers, bringing authentic thoritative exotic and exclusivestories to you, weakly from the Te Ledce each week. The T bis podcast summarizesnews with the greatest impact on the tea industry, but tea requires far morenuwanced coverage than the recitation of production volumes and commodityprices. That is why the TA BIS podcast is paired with a more inclusive tea,Biz blog and T journey magazine. The podcast offers a weekly mix of news andfeatures. It is innovative and interactive, permitting listeners toconveniently contact reporters at origin to ask questions that areanswered via text messages that are delivered privately to their phone. Welcome to the sweet, podcast heree theheadlines, there's a sparkling future for phyzzy t bubble, tea drinkers,Sroth over drinking straw, band bottom ta partners with Godrit group andstarboks introduces runtocup more in a minute, but first this importantmessage: Avaney empowers rural women practicingsustainable agriculture, including tea and crafts such as weeving with naturalfibre and plant base dies up in the towering. Helilean Kuman isone of India's oldest teen regions. Today we raise our cups in the name ofAvani Quma, a non prophet dedicated to strengthening farming communities,cheers to a brighter future for all to donate visit. A vonney Dash, Qumon, dot,ork actor Brad pit is all fired up aboutphysic tea, specifically small Bash Cold Brood certified organic sparkling.Tea Lunch by inroot in five flavors hid invested in the twenty five calerybotanically diverse, bottle blends of teas herbs, fruits and spices. Inspiredby cofounder, Christinand PATOA's grandmother in the Philippines marketed as wellnes tonics that relax,reenergize, rebitalize, rejubinate and revive the teas are made withoutsweeteners or flavors, and bottled in plastic free packaging sparkling teasof a small volume niche that grew...

...nearly ten percent. Each year from twothousandand, seventeen to W thosandand, twenty one according to thre, sixtymarket updates. The category has matured in the past fifteen years toinclude high end gourmain on alcohol versions by coppenhagen sparkling tea,a brand sold at the legendary fortnemanmation store in London andinnovative soon to launch versions like nomad T, soda, concentrate forBartenders and fans of Soda Stream and at home, carbonation appliance asnes insiht retail sales of ready todrink tea in the US totaled seven point: Nine billion in two thousandandnineteen, according to beverage digest volume has steadily increased for thepast seven years to eight hundred and sixty million hundred ninety two ouncecases, sales globally of our TDS, are estimated to reach twenty five point:six billion and two thousand and Twenty One rising to twenty nine point: Sevenbillion in Wo Thosanty, twenty four. According to market researchers, Mr Fr,this makes r td the most lucrative segment in tea carbonated beverages ofall types this year well generate ad an estimated two hundred and fifty fivebillion in sales, with our TD t now contributing about ten per cent ofglobal revetue learn more on the tebiis blog bubble. Teo Drinkers are frothing overa drinking strawbad. In Two thousandand. Twenty China adopted several policiesto make the Earth a better place, one of which is a band on plastic straws inrestaurants. The well intention directive, however, drew the eye ofbubble tea lovers, forced to SLIRP tapioka balls through soggey paperstraws alternatives include reusable metal, glass and bamboo straws, butbubble tea lovers complain is just not the same plant based plastics made ofcorn or sugar Canar emerging as an acceptable compromise PLA dcomposesinto carbondioxide and water and Chinas. King of straws now uses PLA exclusivelymelt tea chain, a t which operates four hundred and fifty stores and thirtyfive cities. There made the switch to more expensive PLA said one satisfiedcustomer. We welcome the green shift, but not at the expense of spoiling ourexperience business in Siht April. Twenty secondis Earth Day this year's theme as restore the earth, a concern sharedglobally in China, plastic bags and...

...plastic cuppery are next on the list tobe phased out. Shinois news service reports that by T thsanty twenty five,China's degradeafla plastics market will grow to thirty five point: Fivebillion one about five point: five billion dollars US according toanalysts at walks, securities direct to consumer ECOMMERCE, retailer,Vanum, T and Gardenowner Gudrick group announce they are teaming up todistribute single estate teas from the well known Castleton, Margaret Hopeand,their bow estates and Darsling and Asama states, harmody, Borpatra andDuju bottom founder Balisara said the relationship goes beyond procurement. Biderick CEO Atuld Estana, said he isdelighted to partner with a Dynamic and fast growing new age startup that hassuccessfully created an Indian home, grown brand and more than a hundredinternational markets, business insight, Botam, founded in two thousand andfifteen reports, andual turnover of Twenty six point: Eight million thecompany has expanded its a distribution network to include many tea relatedproducts. Value O edition is done at origin and delivery. Eliminates much ofthe cost and delay of multiple supplied. Shane handoffs Sarda has been adept atsecuring outside financing to grow the company. He started at twenty threeyears of age. Vanem earns ninety nine per cent of its sales outside India. Starbucks introduces rent acup, takeaway. T drinkers experiencing remose after Bever's retailers refused to fillreasable cups last year will be pleased to learn that starbucks is launching aBorrower Cup option. The trial at five Seattle area stores allows customers toorder their drinks in a reusable cup with a one dollar deposit when theyreturn, the cub sat a conpactless Ciask at the store or from home, using theridwell close loop service. They get their dollar back and ten pointsrewards through the chain's loyalty program, ridwell professionally cleansand sterlizes. The cups replenishing stores steadie show that circulating asingle Reasable Cup replaces up to thirty disposable cups. The reasable isthen recycle business, insight, Americans, discarred,a hundred and twenty billion disposable cups of ear. According to the cleanwater action, fun plastic coatings that line hot cups, often prevent them frombeing recycled. Starbocks has publicly committed to a circular economy thatrecovers and repurposes waste pledging...

...to reduce by fifty per cent thebillions of pounds of waiste generated annually. Arvinda and entheroman in Benglurubrings us this week's tea prise report. This is Evendan and Ramon reportingfrom Bengalooro India sail thirteen for the week ending April Third WoThusandan twenty one last week began with holy the festival that marks thebegining of spring, but sail thirteen continue to focus on the Southendinauctions. However, there was no saile in Koche and only ct se was offered onTiserv, so we looking at Cunor and Crimbetho prices in Cunorwa Hiere forOrthodox Leaf at hundred forty six troupiece thirty one percy as againsthundred nd. Seventeen replease twenty four PAS for CTC Lef Tus prices wereclose with hundred twenty six Topece, twenty two PRC: Fortodox Tust andhundred twenty two Rupese twenty six PECV for CTC dust in Cimbethor, twoOrthodox leafte fetched Highe prices at Hundred Twenty eightapiece, three PRC,as opposed to hundred and sixteen topiece. Fifty three PAS for CT C Leif.However cit se dust did better at hundred thirty nine to piece eightyPercy, as opposed to hundred twelve o piece. Fifty four PAC for ofthetoxsdust, the total sale was expectedly lower at seventy per cent in sale.Thirteen down from eighty percent in sale, twelve. This was seen more cutelyin the dust sers, where out of one thousand two hundred twenty lots onoffer. Four hundred ninety five for left and sold, even green tea, of whichtwo hundred a d six killows were on offer, remained unsold. But this weekthe focus is on Colcata, as the Orthodox sactions are going to be on inthe sale. Fourteen and expectations are high on Troduction, on quality and inprices, and now a word from our sponsor to trade. Teas works with tea,perveyors and every scale from promising startups to the world'slargest multinational beverage brands in the hot ICED and Bot secents with us,based formulation, blending and macgaging services. Hu trade can helpyou innovate scale up and grow. Your specialty t brand for more informationvisit our website q trade tescom this week, tbiz visits the Nilgeritgruwing region in south India, where the incoserved t farmers cooperative,has harnessed the creative and collective energy of thirty thousandsmall farmers, and we discussed the challenges oftimely tea delivery in the new harvest year, with Jason Walker spokesman forfirst tea. The US division of the largest green tea supplier in the world waking a sleeping giant, a money losing federation of SmallGrower Cooperatives and Tomill Nadiu, the largest of its kind in India, witha history dating io, oe, thousandnine, hundren nd. Sixty five languished fordecades before a leader emerged with a...

...singular message produce tea that builds the lives offarmers and a better future. She said: that's our ambition to transform anorganization that was a sleeping giant into one that can show the world that asmall grower's organization can be the best among the best, an officer of the Indian administrativeservices. Suprazaho arrived in the lilgeris in two thusand and nineteen tohead incoasive, a coperative of twea farmers, satted by the government ofTameladu back in D, nine Tuneren, sixty five in under two years. She has turnedhis lostmaking corporative into a profitable one in cosers, thirtythousand small farmers and sixteen clifactories at producing fourteenmillion killows of teeper year, which includes a newly lunched retail rangemarketed through foortrucks and tea houses. We Tok was a prey about how she pulledoff this ambitious and audacious plan about how she broken stereotypes aboutCorpritus, but the perception of anything that his government run adalso, but an Ilgirity excepts im the interviewer here, biginning, with whatit cusel was like when she arrived. No incoster basically is like aslitting goint. That's the word, IAM GOING IM telling my team all the time.We are awakening it slowly. It has a huge potential and it could be a gamechanger in the TA industry. What is the incusive story you set out to Narrit? So if I put myself in my farmer shoesfor whom we are working, I think then our story would be that we want toproduce Te. Thic is sustainable, which is ECHICCL. I think these words arevery, very commonly used like empowerment and this in that, but wereally mean that we want to produce a tea, which kind of you know base thelives of our farmers for towards a better future, but in the Paso from an organizationthat was like a feeping giant to an organization that can show to the world,but a small grovous organization can be the best among the best. That is whatour camdition is, how significant as Ternin profitable being be Morcomfitable. We have done profitable, as I told you that my most of my pactisare termd prositable, but I think we are not only looking at profitabilityin terms of money, because you know a lot depends upon the market for tea.Also, we are looking at profitability interms of what role as an organization as a Copolati beep played for thepeople for Wor we were distablished. We were made, for example, are be alignedwith the sustainable development goods. I think for us, profitability would bemore in toose areas. Silok at the UN...

...sustanability Al One poverty. Second,one hunger, then you have eight nine ten, which is. Did you provide liwyhoodopportunities? Did you troduce thell vulnerability to situations like good?Yes, we did. During the oved period, we were the only fact, only coperative,only factories we were operating with all precautions, because there was ahuge demand for ta from various other states, especially from Carala out tothousand tons of tea, which we normally supply. In a year, we supplied I intwenty one days, togerer during the Ovit time. None of our farmers how tobotlow none of Fi fartners had to face the the bronth of COVID. That is, we AV profitability. That iswhere our existence matters. Did. You reduce the valurability ofyour farmer to unprecedented crisis like a Pandemici Povit. That is wherewe played a very important troth. The appeared proud about the fact that,when this odher wasn't passed, whether you wo be able to do it within threedays, Al the farmers, this Prung to actuall we opened US factorys, thinksto be support by government of Tamennadu. We were the only peopleworking, we wolked intired Gobet period and we pulleit ot the commitment and weearned twenty one crows which we distributed to ourwarmes. I think thereal profitability or the success of an organization lies when you are able tosupport your farmers in situations like early harvest in China, India and Kenyasent new teas to market early this year, a fortunate had start unlike last year.Labor availability is good. Despite Kovid nineteen restraints, he regions,report, fine weather and orderly processing is raising expectations of abountiful crop. Two obstacles remain transport is stretched to the breakingpoint as reinvigorated economies stir from pandemic weariness. The secondhurdle is cost hole. Sailors, retailers and importers that last year bore theweight of spaking. Prices must now make up for lost, sternings expectsignificant price increases for both specialty and commodity. Tease for theforsiable future in this segment, Jason Walkerspokesperson for first Ta, the US division of the largest green sitsupplier in the world, discusses challenges impeding timely t delivery,Jason, covidnineteen, Ind. The chaos of...

...lockdown Tis time last year presentedunique delivery challenges describe how the logistics hurdles differ, of thetwo thousandand twenty one harvest. We did see locations and origins thateither could not get any tea out at all, or we saw that they could not getanything out on their regular schedules. There were multiple variations ofdisruption that were happening last year. This year we are seeing a morecity 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 ofshipping really started to wrench it up. Things were behind schedule, but thenwe started to see. There was just an inadidiquate supply of either ships orcontainers. Things were piled up because of ports that had been closed.Then you had increased demand for online retail lots of new equipment andpersonal items that were getting shipd people who used to spend their money ona dinner out or now buying, exercise equipment, and things like that, so youjust have more stuff trying to get on the water. At the same time, containersnot even available for weeks. You saw containers, sit at ports waiting fordays or weeks just to get onloaded onto a shit, and then we were hearingstories that some of those ships were returning straight away empty handed because thethe race for say, East Asia into Western us were four times sometimesthe riglar going rate. We are seeing still seeing some of that. We had toshare some of that burden of cost with with our customers in two thousand andtwenty importers, wholesalers and retailers eased the price shock forconsumers by absorbing some of the sharp increases in transportation costs.This year, prices are expected to rise with retailers, promoting preorders andfewer freeshipping offers. What advice can you offer to reduce the cost oftransporting tea? But if you know roughly, when you need it that helpseverybody along the line prioritizing disorder, then you had increased demandfor online retail lots of new equipment and personal items that were gettingshipped over personal retail. I should say that type of thing were people whoused to spend their money on a dinner out or 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 toLalong beach or Los Angeles, that ship...

...and we track some of our orders and enships going from say, October and and later on, even into this early spring.Here you saw the ships wading off the port in the water for five days,sometimes more before could even get into a harbor to actually get unloaded.It also kind of helps average out. You may pay higher now, but you may be ableto kind of offset that later as shipping goes down and we all canadjust our price intrigue by what you heard in today'spondcast. Would you like to learn more from our global network of pebisjournalist and t experts contact them direct through subetext private messagebased flatfor avoid the chaos of socially and start aconversation that match subtext message based Platfum lets you privately askmeaningful questions of the txpers o academics, TVs, journalists, ere fortit you see their responses, t SMS text which Yor Send Directto your fam visitour website and subscribe to subtext an instantly connected. The most connectedpeople in ta remember to visit the tbis website formore comprehensive coverage. Thatwwwt hyphen, bizz, Biya, Zi Datcam, thanksfor listening farewell till next week,.

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