Tea Biz
Tea Biz

Episode · 9 months ago

Tea Biz News and Insight - April 29, 2022


HEAR THE HEADLINES – Health Symposium Reveals a Plethora of Science-based Benefits of Tea | COVID-Influenced Consumer Behaviors Present New Opportunities for the Tea Industry | Sri Lanka Tea Exports Decline 10%

| GUEST – Jagjeet Kandal, country head, IDH, The Sustainable Trade Initiative

| FEATURE INTRO – This week, Tea Biz travels to Bengaluru, where South Asia Editor and Producer Aravinda Anantharaman begins a two-part series on Realigning the Marketing of Indian Tea.

Realigning the Marketing of Indian Tea – India produces 20% of the world’s tea. Production, however, has stagnated for years. Costs are up prices flat. Professional tasters report sharp declines in quality. Marketing tea to domestic consumers is complicated -- but promising. Indians consume 90% of the tea grown there but mainly purchase lower grades. Per capita consumption is modest at 840 grams due to a preference for tea in blends, but tea is stocked in every household, and Indians drink two cups per day. Until recently, India exported virtually all its best teas. Tea discovery is discouraged as imports from China, Taiwan, and Japan are expensive due to high tariffs, but rising affluence is overcoming these obstacles.

Indian legislators are currently considering a draft Tea (Promotion and Development) Bill to remove colonial-era provisions regulating tea and re-direct the Tea Board of India’s resources to expand existing markets and promote tea domestically.

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 Bolton. 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 every one. This week's headlines. Health Symposium reveals a Plethora of science based benefits of tea. COVID influenced consumer behaviors present new opportunities for the tea industry and Scharlonca. Tea exports decline ten percent plus South Asia. Editor and producer are Venda Nantheramen begins a two part series on realigning the marketing of Indian tea. 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, tellawackilee, Bogajan, Thalawa, run up and ELYPTIAC t estates. Support Save the Children Sri Lanka, a thirty year series of scientific symposiums on tea and human health periodically showcase astounding advances in global research on the benefits of tea. Symposium Chair Dr Jeffrey Bloomberg said that evidence presented during the sixth symposium this week reveals results ranging from suggestive to compelling, about the benefits of tea on cancer, Cardio Metabolic disease, cognitive performance and immune function. Quote. There is a growing body of research from around the world demonstrating the drinking tea can enhance human health in many ways, said Bloomberg, Ph d and active professor emeritus at the Freedman School of Nutrition, science and policy at Tufts University. Quote. True Tis, which include black, green, white, blog and dark can contribute significantly to the promotion of Public Health and quote. The online event hosted by the Tea Council of the US was attended by six hundred and sixty globally and is available for review on law. Quote. Sponsors include the American Cancer Society, American Institute for Cancer Research, American Nutrition Association, American Herbal Products Association, the Osher's Center for Integrative Medicine at Harvard Medical School and the lightness palling institute at Oregon State University. Findings in brief by condition include immunity. Quote. Tea May help support your immune system and increase your bodies resistance to illness. And quote, finds the Young Woo at Tufts University. He said, in the event you do become sick, tea can help your body respond to illness in a more efficient way by ridding itself of the infection and may also alleviate its severity when they happen. and quote. Cognitive function. There...

...is strong evidence that tea and its constituents seem to be beneficial under conditions of stress. Explains Professor Louise Die at the University of Leeds. The most profound cognitive domain that tea seems to act upon is attention and alertness, she says. With these effects on attention, t is an optimal beverage of choice during a time of elevated stress and burn out. Worldwide, prevention of cognitive decline, it is estimated that forty to fifty percent of dementia could be prevented through changes in lifestyle factors. In a review of published research on tea and cognitive decline, Jonathan Hudson at Edith Cohen University explains that quote. There is growing evidence that as little as one to two cups of tea daily could significantly reduce risk of vascular dementia and, potentially, Alzheimer's disease and, quote. Cancer Prevention. Higher intakes of tea may reduce the risk of some cancers. There is evidence that tea flavonoids may act as antioxidant and Pi Angionesis and anti inflammatory mechanisms, as well modifying the profile of the Gut Microbiota. Tea is a beverage rich in flavonoids, which are bioactive compounds with several anti carcinogenic properties. In experimental studies, suggestive evidence indicates tea consumption may reduce the risk of bilial tract, breast, Endometril, liver and oral cancer. Quote. While more research needs to be done to determine the exact dosage, the conclusion we can share is that higher intakes of tea consumption may reduce the risk of some forms of cancers. As raouls and moral at Ada Bell Research Institute and Barcelona, Spain, tea and cardiovascular health, tea consumption may be inversely associated with adverse cardio metabolic outcomes. According to results from population studies based on an extensive variety of scientific research, designs two cups of unsweetened tea per day as the potential to mitigate cardio metabolic disease risk and progression in adults. Quote. When you look at all the different bio markers and mechanisms that tea is affecting, this bountiful beverage is one which consumers can easily add to better their diet and create a healthier and longer life for themselves, explains Professor Taylor Wallace at George Mason University. We CEO of the think healthy group. Visit Ta Bizcom for more detailed information on the above business insight. In February, the United Nations Food and agricultural organizations inner governmental group on tea established a new working group on tea and health, codhaired by China and Canada, with members that include representatives from India, Indonesia, Kenya, Shri, Lanka, the United Kingdom and the US. COVID presents new opportunities for tea. By Ruepak Kaswamy. Long term changes in consumer behavior brought by Covid nineteen offer new opportunities for the tea sectors,...

...say experts. This was the general consensus of panelists that the recently concluded twenty fourth session of the United Nations Food and agricultural organizations inner governmental group on tea. Government and association leaders from Within Two dozen countries participated in a virtual meeting in February to assess the current state of affairs of the global tea market and to discuss emerging issues, market developments in selected tea producing and consuming countries and the impact of Covid nineteen on tea. The covid nineteen pandemic in the measures that were taken by governments to contain it, harmed both tea supply and demand. Farmers were affected by disruptions and obtaining critical inputs and with fewer plucking rounds, that saw a reduced output and a thousands of retailers close tea shops and restaurants, and those surviving sold much less tea worldwide during extended lockdowns. The pandemic also fostered the widespread adoption of digital solutions, which range from buyers and sellers arranging virtual garden tours due to travel restrictions and brokers joining virtual tea auctions, to the expansion of online tea education. Tea Brands that previously sold tea in bolk embrace direct to consumer marketing globally, increasing selections online. In a report, IGG t rights that quote. While the COVID nineteen pandemic and the measures taken to contain it head only limited effects on tea markets, namely in terms of production and trade, there appear to be longer term shifts and consumer preferences. With increasing incomes per capita, demand for tea is increasing in many development and emerging economies. However, more mature markets can be characterized by three main trends and tea consumption. First, increasing competition from herbal teas, second, demand from more variety in the traditional tea market and third, increasing demand for sustainably sourced products. Pejr F Goji, president of the Tea Association of the U S A, told Te Biz quote. As far as tea is concerned, the pandemic was a mixed blessing. As reported last year, a qualitative study sponsored by the Tea Association found that consumers turned to tea during those difficult times. This trend continued in twenty twenty one. Tea's perception as being an enabler for distressing as well as providing a feeling of centeredness occurred during these anxious times. Quote. This compliments tea's perception as a plant based, healthful drink, consumed for its variety of benefits rooted in its high flavonoid content. In fact, several new research papers were published in twenty twenty, in two thousand and twenty one, illustrating tea's extraordinary ability to act as a booster of the human immune system. He said the demographic groups embracing these trends were college age Eugen's Z and millennials. Quote. These two cohorts are the largest and most influential, so we anticipate these trends supporting tea consumption going forward, said Goji. True, Longa reported at ten percent decline and t exports in...

March due to a combination of lower production and disruptions and logistics following Russia's invasion of Ukraine. Export volume was down by six point two million kilos to sixty three point seven million kilos for the quarter ending March, and eight point nine percent decline compared to the same period last year. Shipments to Russia fell fifteen percent by volume during the first quarter and shipments to Ukraine ceased. Iraq increased imports by seventy five percent and is now the top importer of celone tea, followed by the United Arab Emirates, which increased tea imports by fifty seven percent. Prices were deceptively high, as the FOB average in March was a record onezero forty five rupees per kilo, the highest in any calendar month and topping February two thousand and twenty two's average of nine hundred and sixty two per kilo. Prices a year ago, in March two thousand and twenty one average nine hundred and fifty rupees. Tea Trades in the US dollars, however, making one thousand worth of rupees this year only two course and ninety four cents per kilo. In March, the country central bank in Colombo imposed an upper exchange limit of two hundred and thirty rupeas to the dollar, effectively devaluing the currency by about fifteen percent, and at the same time imposed limits on hundreds of imported products. The government is experiencing an unprecedented financial crisis that has led to mass protests, as food inflation hit thirty percent in March, after averaging less than seven percent for the past thirteen years. There is no shortage of buyers of the roughly thirty million kilos of tea that Shi Lanka normally sells to Russia and the four million kilos imported annually by Ukraine. shipments to Azerbaijan increased by seventeen percent and imports to Iran increased by twenty seven percent. According to those Lanka Exporters Association, shipments to Turkey, Libya, China, Saudi Arabia in Germany also helped to offset the quantities normally imported by the Russian Federation and Ukraine. Back at tea experience the sharpest decline. Both tea exports increased and exports of tea bags were down slightly. Vender and Enteromn and Bengaluru reports on this week to ocean prices. India tea price report for the week ending April Twenty third twenty twenty two. A comparison between sales sixteen for Twenty twenty two and twenty one for north India shows a marked decrease in the volume of tea soul this year, and this is seen most significantly in CTC leaf and dust and to some extent in Orthodox leaf and dust. The exceptions dogeling tea, which has seen higher volumes. For Seal Sixteen this year will carry over from two thousand and twenty one. The average prices are higher than last year, most significantly for CITC dust and dudgelling tea, and All India. Comparison for Sale Week Sixteen between twenty twenty one and twenty twenty two shows a significant decrease for CTC dost alone in prices seal sixteen. So strong demand for Orthodox tea in Calcutta, with the Middle East actively participating. Buyers were active for daggling tea as well, and average prices for top dagelings when the range of thirteen dollars...

...to twenty one dollars, an increase from last week. God is so good demand for leaf all the prices dropped from sale fifteen in the south coach in so good demand for Orthodox and CTC, both leaf and dust. Who knows? Good uptake of old types, with the sale average of eighty four percent, and exporters and major packeteers were active. And now a word from our sponsor. You. Trade understands that a successful tea blend goes beyond the creative fusion of appearance, Aroma and flavor. Are Multi Award winning product development team is passionate about converting natural ingredients its sensory experiences that customers crave. Every recipe is formulated with a commercial backbone of dependable quality sourcing, with a pricing structure that supports a safe, regulated, profitable and scalable land. Q trade meets every brand's retail, food service and ECOMMERCE need. For more information, visit our website, que trade teascom. This week, Teab is travels to Bingaluru, where South Asia editor and producer are venda an etheromen begins a two part series on realigning the marketing of Indian tea. India produces twenty percent of the world's tea. Production, however, has stagnated for years. Costs or up, prices are flat. Professional tasters reporter sharp decline and qual of you. Marketing Tea to domestic consumers is complicated but promising. Indians consume ninety percent of the tea grow in there, but mainly purchase lower grades for capital. Consumption is modest, at eight hundred forty grams, due to a preference for tea in blends, but tea is stocked and nearly every household and Indians drink average of two cups of tea per day. Till recently, India exported virtually all its best teas. Tea Discovery there is discouraged as imports from China, Taiwan and Japan are expensive due to high tariffs, but rising affluence is overcoming these obstacles. Indian legislators are currently considering a draft tea promotion and development bill that will remove colonial era provisions regulating tea and redirect the tea board of India's resources to expand existing markets and promote tea domestically. In this report, Teab is explores the challenges and opportunities of marketing Indian tea by examining a legacy of marketing tea as a blended, heavily spice slow quality quanity beverage for the masses, the rise of hundreds of direct consumer DT seed tea brands that rely on e commerce as promising and accessible retail platform and expanding choices available to tea lovers, and how those preferences have moved beyond hi. We end the two part series with the questions needed to solve the mammoth task of rebranding the industry and real learning the ball strict market porte quality t we spoke to several industry stakeholders, industry veterans, tea producers, startup founders, the room owners and brand historians to understand how tea marketing has been shaped in the past and where we stand now. This is what juck teeth, candal industry veteran and currently country head...

Idh the sustainable trade initiative, has to say about the problem of perception. What has changed in tea market? And that's the question between need to ask themselves and and to me there has been no great, major earth shattering change. Right. Yeah, we went from the bus boxes to polly packs and stuff like that, but really the image of team has not changed at all and that's I think that's the pieces of a lot of the problems that the industry has. Price became a factor in sales, trumping. Taste branch fought on price. I think market the has need to take some of that play because what they have done to be is they made a common man's dream. If they have, it's been marketing as the cheapest drink right now, when you market anything is cheap, it's going to be very difficult to take that perception people's wine and then tell them coming PA more or it so because a short terms turning here whenever this whole marketing film starting. But that's the bes of what needs to change. Across the country. ORTHODOXITY is not consumed by the masses. South Indian and particular favors dust creates, but every producer and every brand owner talks about how the perk up cost between the mediocrety and a higher quality tea differs by only a few roupees. The point is convincing, but that message has not been communicated to consumers. Seventy years ago, few Indians had ever tasted tea. In contrast, the Chinese have kept tea in their homes for five thousand years. Like other plantation colonies, tea was cultivated in India to cater to demand in Europe. Wars and economic slumps disrupted trade, leading to a glut of teeth that forced England to find new markets. The British turn expertly to India's domestic population, marketing aggressively and creating a culture of tea. It's was so successful that he is now an Indian legacy with deep cultural connotations. In one thousand nine hundred and sixty, India exported a hundred ninety five million kilos of tea and consumed a hundred and fifteen million kilos. Ten years later, exports from plateaued at two hundred million kilos, while domestic consumption doubled to two hundred and twelve million kilos. Today, India produces over onezero million kilos per year and Indian consumers during ninety percent of the tea it produces. One would expect that this is reduced produces dependence on the export market. It has not, but given how the pandemic, Climate Change, marketing costs and now war have impacted trade, freight costs and exports, the need to cultivate and nurture the domestic market has never been most significant. There's a need to nudge consumers towards better quality, higher price teas and even specialty t what producers seek is one. Can the consumers look beyond what producers seek is one. Can the consumer look beyond CTC and Chai? And even if they must stick stick to CTC, can the aim for a better quality product and to how can we increase per capita consumption by at least one hundred grams from the current seven fifty to eight fifty grams? There has been us of change brewing, with the Tea Board of India finally saying they will no longer be a regulator but instead become a body that will market and promote tea. It's a return to the board's original mandate, lost along the way and resurfacing now due to producers continuous demands. The tea bows challenge will be to address India's complex market, and there have been lessons from the past the rise of packaged in branded tea. In the s television emerged as a mass media platform financed by consumer interests in packaged goods. In the S, television in India emerged as a mass media platform. In the same decade, data t went from being a largely t plantation owning company into branded t and there have been lessons from the past. In the rise of packaged in branded t in the s television emerged as a mass media platform financed by consumer interest in packaged goods.

In the same decade, data te went from being a largely tea plantation owning company into branded tea and they decided that since they had their own gardens, they could offer their own tea. In nineteen eighty four, Rooke bond, which is probably the most popular tea brand, certainly the oldest, joined uni lever, which had already acquired lipped in by nineteen ninety seven. Nineteen seventy seven. In nineteen eighty four, Brooke Bond, which is probably the most popular tea brand, certainly the oldest, joined uni lever, which are already acquired lifted in in nineteen seventy seven and privately held Buckley, based in and a bad good rat crew, to become India's third nationally distributed package tea brand. In nineteen eighty five at Lastana, currently managing director, joined the good rig group. The group was formed in Nineteen Seventy eight and now owns twenty nine gardens in darjeeling, Assam and the doors. Some of the most prized teas in the world come from the good rig portfolio, including Margaret soap and Castleton and a Jule. Good rig had to diversify, says, at the LASTANNA. At first the company started packaging tea in two hundred and fifty grams and five hundred gram packets, with each garden keeping aside a percentage of production to go into retail. The market was not in east east India Gardens hads fantastic advantage for Retayer, for going direct to consumer and by by passing the auctions, they could bring consumers a fresher tea. And this was already leveraged by brands like Lipton, whose tag line was direct from tea garden to the teapot. And is surprising that more gardens did not take this up and aggressively brand and market the teas. The reason is that the whole sale market was robust in the nineteen Eighti s a hey day for the tea industry. Demand outstrip supply. As Astana says, everything that was being produced found a market. The Soviet Union absorbed all the tea produced in India and few gardens found a need to retail to a domestic market. But with the disintegration of the Soviet Union, the tea industry, which had expanded to produce large volumes of tea, now struggle. The share of exports declined and the domestic market discovered tea was inexpensive, widely available and a tea was a daily beverage that was easy to make and reasonably addictive. But before packaged tease vendors sold loose leaf in broken grades as blends customized to suit customer preferences. But what packaged plens offered and delivered was consistent taste, they were cleaner, they remained fresh and storage were more appealing and definitely more convenient. Sales increased during the nineteen s and nineteen nine s as preference for branded tea grew. Ultimately, a combination of factors, including higher disposable income, proliferation of television and other forms of advertising and also the move towards trade liberalization, helped increase sales. And the only hitch worse that this market was still extremely priced sensitive. Stay tuned for Parto next week, when we speak to stakeholders in the Indian tea industry to explore the various marketing initiatives they have undered. Can as we attempt to understand the problem and we forward 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 t Biz website from more comprehensive coverage. That's wwwt Biz Bi Zlcol thanks for listening. Farewell Till Next Week.

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