Tea Biz
Tea Biz

Episode · 3 months ago

Tea News and Biz Insight - September 24, 2021

ABOUT THIS EPISODE

HEAR THE HEADLINES – Retail Forecasters Predict Happy Holidays | Restaurant Reticence is in Decline 

| A Restructured DAVIDsTEA Expands into Pharmacies

| NEWSMAKER – Subhasish Borah, Urbanist and Tea Enthusiast, Co-founder Folklore Tea, Guwahati, Assam

| FEATURES – This week Tea Biz travels to Guwahati in Assam, India where the co-founders of Folklore Tea engage customers with an unusual level of intimacy. 

Folklore Intimately Engages Tea Customers 

Folklore Tea is anchored in storytelling. Marketing is simple and sincere. Packets are numbered with a handwritten note acknowledging the farmer who grew and hand-processed the company’s selection of small-batch Assamica wulongs and black teas, including premium organic CTC. The year-old artisan brand christens its teas with local words that carry a special meaning and includes in every packet an original poem describing the story of the tea.

The Tea Biz podcast delivers tea newsthat you need to know, a recap of the week's major headlines, withcommentary and cultural trends. Hosted by Dan Bolton. It is the voice oforigin for tea professionals and enthusiasts worldwide. Think of us as a digital caravanof storyteller, bringing authentic, authoritative and exclusive stories to you weekly from thepea length. Hello everyone who this week's headlines. Retail sales forecast happy holidays. Restaurant reticence is in decline and restructured. David's tea expands into pharmacies. Morein a minute, but first this important message. What makes a PerfectCup of Ceylon tea? The Perfect Cup is from the tea businesses that ensurethe protection of all the children living within their tea estates. We Salute KailaniValley, tell Awackilee, Bogajan, Thalawa, Harana and Elyptia tea estates. SupportSave the children. Sri Lanka marketers anticipate strong holidays sales, despite fewerfootballs that physical outlets do to surging demand. Online projections range from one point twoeight to one point three trillion during the November to January gifting season.Master cards spending pulse projects a seven point four percent holiday sales increase, andthe widely cited deloit annual holiday forecast estimates US holiday spending will grow between sevenpercent and nine percent. In Two thousand and twenty one e commerce sales areanticipated to be between two hundred and ten...

...and two hundred eighteen billion, again of between eleven and fifteen percent, according to deloyd. Last year's holidaysales came in higher than expected, increasing by five point eight percent, accordingto deloy. The consensus is that consumers have spent down dead and have somecash to counter a gloomy summer would travel curtailed and vacations forced close to home. The consumer survey by Alex Partners Found Eighty eight percent of consumers plan tospend the same or more this holiday season, up twelve percent, as reported inchain store age quote, there's unprecedented pent up demand out there. Consumershave lots of money in their pockets, in part due to recent government programs. According to the first countering that optimism is the fact that in the US, new covid cases are averaging a hundred and forty five thousand a day.With more than twozero deaths its summer. Confidence decline midsummer during the latest waveof infections. Market Research for numerator reported that in July and August, consumersexpress big concerns over the Delta variant, with forty six percent reporting they were, quote, highly concerned and quote, a number that grew ten percent betweenJuly and August as hospitals filled the majority. Fifty one percent cited the Delta variant, with sixty six percent of vaccinated adults expressing worries about family and friendsbecoming infected. Increased vaccinations and more widespread use of masks are working to bringdown case loads. California, a state with thirty nine point five million peoplethat reported sixty five thousand cases a day last December, is now reporting fewerthan eight thousand daily, with an infection...

...rate of twenty two cases per hundredthousand. In contrast, Texas reports forty four cases per hundred thousand this weekand Florida is experiencing forty two cases per hundred thousand. Deloit, vice chairmanrods sides, the come Anas US retail and distribution sector leader, writes that, quote, while consumer concerns about health and safety have ease since the lastholiday season. Handemic influence shopping behaviors continue to gain traction and quote Biz inside. Savvy tea retailers finalized preparations before September, borrowing in the spring to stocks teaware and Gift Selections for the holidays. Manufacturing was in full swing across Asiaall summer, but shipping delays and the extraordinary spike and container charges makeit imperative that holiday promotions begin early this year. The president of international operationsat ups and fises consumers to quote order your Christmas presents now, because otherwise, on Christmas Day there may just be a picture of something that's not cominguntil February or March. and quote. Frequent diners are determined to return totheir normal routine of dining out open tables. Most recent quarterly survey of Twentyzero restaurantfans find sixty two percent are now dining out at least once a week. During the first quarter, only thirty nine percent of frequent diners were eatingout at least weekly. Take out remains the most popular alternative to dining in, with thirty four percent of respondence ordering take out at least once a week, proof of vaccination should be a requirement...

...for staff. According to forty sixpercent of open table diners, up from twenty five percent during the first quarter. A seventy one percent majority are willing to show their vaccine cards, andtwenty three percent say that restaurants must require proof of vaccination before they will dineindoors. In the San Francisco Bar area, thirty seven percent say proof of vaccinationis a must. Overall, forty eight percent of frequent diners are willingto show proof of vaccination, but mandatory proof of vaccination isn't necessary for themto die out. Nationally, fifteen percent of respondents say they will refuse toshow proof of vaccination as a requirement for dining. In Florida, the Vadaand Arizona. That number rises to twenty three percent who are unwilling to showproof of vaccination busins in sight. When asked what they miss, Ninety threepercent of frequent diner site dining at their favorite us roun another forty two percentor longing for their favorite menu items, with thirty nine percent hoping to attendhappy hours with friends and twenty six percent looking forward to wine and beer tastings. North America's largest t retail chain has emerged from bankruptcy, named a newchairman to replace co founder Herschel Siegel and is now, quote, moving forwardwith a number of initiatives and, quote, according to CEO and Chief Brand OfficerSarah Seegl, Jane Silverston Seagull, personal seagull spouse, was named directorand chair of the Board on September fourteen. Herschell remains a strategic adviser and retainsforty six percent of the company.

Stop. During an earnings webcast,Sarah Segal said that David's tea is successfully transitioning to a digital first company.In a release following the quarterly disclosure, Sarah Seegal announced the expansion of astore within a store concept to a hundred and fifty six rex Al Pharmacies.The four foot in store displays showcase twenty five skews of teas. Sales declinedeighteen point six percent, or four point three million, to eighteen point sevenmillion during a quarter ending July thirty. First Endemic driven sales were twenty threemillion during the same period in twenty twenty business inside. During the earnings webcast, Sarah Siegal said that, quote, after a period of dramatic changes andtransformation to our business over the past nearly eighteen months, we are eager toconnect with our customers in new ways. We are laying the foundation to scaleand expand to become a truly global tea company. She said. NDA andantherman in Bengaluroo reports on India's tea auction prices. INDIETEA price support for theweek ending Eighteen September twenty twenty one. The focus continue to be on theissue of cheap tea imports from Kenya and Nepal. Indian media deported that Indianimports what up a hundred seventy six percent yea Onia and that between January andJune twenty twenty one, India imported twelve point one six million kilos, alreadysaid to be the total import of Twenty nineteen. Tata Consumer Products Limited hasbeen flagged for adding Nepalty to their blends without proper lyabling the Indidia Association haswritten to the goverment asking them to intervene. In other developments. On Seventeen September, the tea board of India had...

...the virtual meeting with teap producers andmanufacturers to hear their views on the contentious the act of one thousand nine hundredand fifty three. Recently, seven sections of the act was suspended. Furtherchanges following this meeting remain to be seen in auctions sale thirty seven. Sosubdued demand for tea in south India, as both up country and corporate biashave focused on norst Indian auctions in the north called cutasaw good demand Middle EastinCIAs countries by active for Orthodox Tea, Tata consumer products and Hindustan Unilivo,active for badge link. The monsoon flush, which is out now, is largelyconsumed in the domestic market. Prices did not vary much from the previousweek and now or word from our sponsor. Huge trade understands that a successful teablend goes beyond the creative fusion of appearance, a Roma and flavor.Are Multi Award winning product development team is passionate about converting natural ingredients with sensoryexperiences that customers grave. Every recipe is formulated with a commercial backbone of dependablequality sourcing, with a pricing structure that supports as safe, regulated, profitableand scalable bland que trade meets every brand's retail, food service and ECOMMERCE need. For more information, visit our website, huge trade teascom. This week,tea Biz travels to Guaha tea in Assam, India with the CO foundersof folklore tea engage customers at an unusual level of intimacy. Folklore tea isanchored in story telling. Marketing is simple and sincere. Packets are numbered witha handwritten note acknowledging the farmer who grew in hand processed the company's selection ofsmall bats or samachoulongs and black teas,...

...including premium organic C TC. Theyear old artisan brand christens its tea with local words that carry special meaning andincludes in every packet an original poem describing the story of the tea. Arecent development in tea in India has been the rise of new brands, manythat have the roots in tea regions. Almost all of them seek a bridge. Produces and consumers most rely on the narrative that a companies a product fromits place of origin. For Consumers, it's in part vicarious living and alsoa window to another world. This is as good as it gets for thosewho want to know, who meet the tea and where it comes from.A few of these brands choose to actively work with farmers and become more thana marketing platform for the produce. One such brand is folklore tea, basedin Gohati and started by Subashij Bora, an urban planner, and Badisha Das, a management Grad also in Ghati. They round the Cohu are, collectivespace that comes with a slow food cafe and tea room, ideas that seemedto drive their work. They launched folklore in early two thousand and twenty and, as a brand, are keen to carry the farmers stories foe close anchoredin the idea of storytelling and connecting to consumers intimately. Each ta acknowledges thefarmer who grew it. Each t is given a name and a poem accompaniesit. Each packet is numbered with a handwritten note addressing the recipient, andwhile these help connect with the drinker, it's not forek closed unique sales proposition. That lies in the experiments and the work they do with their farmers.Currently, folklow works with three small growers, Biman, Barrinc and Tarun, whocollectively cultivate on about three hectares. These three growers also round. Britsbee, a farmer producer company which now includes fifty six members with farms ranging insize from point two to three hectares. All the growers are geographically located closeto each other, making this a community...

...enterprise of sorts. Beman, BARRINCand Taroun have chosen organic farming and have been working with other members of pritweetto convert in organic farms to organic. This process takes a long time,up to five years, during which farmers have to face a loss and neeledand income. PRISBEE supports them by way of small scholarships for the children andalso has a vermicom posting unit in a PSAM. Smallti growers typically sell thegreen leaves to bodily factories who manufacture and selty. Most of these factories makeC TCIT which is bought and blended for the domestic market. CITC factories arenot always organic and here the tea is mixed in the sources. Style ofcultivation is lost, with no advantage as to producing as organic. The farmerhas no incentive to stay the course and this is something for close trying toaddress. Currently they have six small units. Whether t is made. These unitsare not heavily equipped with machinery and even the CITC is made using traditionalwooden tools. So by she's talks about a proposed project from mini community factorythat will be used to manufacture organic CTC. That leaves source from their own farmercommunity. So right now there are fifty six rowers who have joined theso collectively, whenever we will be able to set up the factory, thenwe have a huge leaf bank to produce organic CTC. If we get thefund then of course we go for CTC. We will be under personal organic CITYCand managed by this fifty six people. That is something completely community based factory. Whatever we can do in terms of acting, design or maybe marketingwill anyway help them. If we get this opportunity and if we get thisfun which I'm not sure if we get, then of course we go for CITYC. It will help not only the three people but all the fifty sixfamilies. So that way is like almost money. People will be benefited withthis entry would be huge change in the village, for close association with threeis a close and mutually beneficial one. They bring knowledge of cultivars and teammakingalong with market intelligence. As Abashi says,...

...most of the small tea growers withwhom they're working started back in the early s. They planted whatever teabushes they could get from nearby tea gardens. The knowledge of cultivars was not veryprominent at that time, so folklore team decided to study about tea anddrought knowledge and the willingness to experiment in teammaking. The experiments are with clones, with leaf to bud ratio, with rolling techniques and processing methods such asPan Roasting and naturally scenting tea. They've also taken on the immense challenge ofmaking Oolong's only a small volume of May tea, not more than three hundredthree fifty kilos, is sold under the folklore brand, and it's mostly blackwoolong and CTC. What isnal teamaking is still a niche market within India.Folklore seems conscious of this, taking a B Toc Approach for India and aBTP platform that caters to a global market with customers in the US, Canada, UK and Australia. Since the scale is still small, the brand cansustain its relationship and customer base. As Sebashi says there are two main challengesand opportunities the Sams Tea Industry today. One, people who live here inthe tea areas of the state don't know enough about loose leaf tease and tothere is a strong culture of teeth that's drunk without milk. And yet thechoice of tea main city see through and through the irony of producing one ofthe finest teas and yet sending them to far away markets is a story acrossIndia stea growing regions. It's very sad because people in their own region,especially the villages or maybe the towns which are surrounded by the key gardens,the people they also don't know much about the loose liftis. Marketing loose leafeeshere with a little bit higher price is difficult because the it's it takes alot of effort to make loosely tea. And then if you're selling it forlet's say, three hundred four hundred roupees a keg, when it's not givingyou anything contrary to that, like you'll get city see one kg for ninetyhundred repeas. So with milk tea,...

...everyone is going to city C ina some big culture milk keys. There of course, but the culture ofwater based te also very high, but that water based is made using CITYCnot loose lifts. The economic status of this state is not very high.I mean people have collectively less money, so buying five hundred rupees kg oneit is not a thing. Most of the growers face difficulties here. Theydon't have the human resource or definancially sohos to go somewhere and to do marketingor to do packaging and these things. So many people who start making teasthey go back to selling their fresh leaves so that they don't have to thinkabout marketing again. And many people go back to in organic stay because ifthey find comunately have to sell their leaves to bottle refectories, then no pointof maintaining organic. As much as the conversation is on branding and experimentation,ultimately what will make a brand like folklovework because it's impact on the community.Already there are plans to set up a bamboo cottage on one of the teafarms that will be open for experiential travel. Assam has a lot and offer,from textiles to food and, of course, tea. We want tobring people says Sebashi. Should we want to show the things that are goingon here, that it's not only tea but a lot of associated cultural elements. He talks about the vision to turn the area into an open museum wherethe entire place can act as a museum, of the houses can act as amuseum and the traditional tools which are used in the processing of tea aredisplayed as a living heritage. so by she's just scraps fo close a passionproject. Perhaps that's what Assam needs more of passionate marketers who can join handswith farmers to create quality ties and find a market for the greater good ofthe community. And if it includes nudging local preferences towards better tea for theirown consumption, that's an added bonus. So the black tea name is forWail. I just read it, though people have found stories on my genesis. Was it a monk who discovered me,...

...or was it a king who droppedme in boiling water? Yet my origin is unknown. Since then Ihave grown and grow and doing some more, moving across spaces and borders and aliving chronicle of several cultures. I'm for will. I was found forbuilds. Agreeing by what you heard in today's podcast, would you like tolearn more from our global network of TBIS journalists and P experts? Contact themdirectly through subtect, private message based but avoid the chaos of social media andstart a conversation that matters. Subtext message based platform let's you privately ask meaningfulquestions of the t experts, academics and t Biz journalists reporting from the TeaLens. You see their responses via SMS text, which are sent to wrectto your phone. visit our website subscribe to subtext to instantly connect with themost connected people in tea. Remember to visit the TV is website for morecomprehensive coverage. That's wwwt bizcom. Thanks for listening. Fare well. We'lldo.

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