Tea Biz
Tea Biz

Episode · 3 months ago

Tea Biz News and Insight - October 7, 2022

ABOUT THIS EPISODE

HEAR THE HEADLINES – Kenya Announces a National Tea Brand | President William Ruto makes value addition in tea exports a priority and announces new tea processing and packaging facility in Mombasa | Euromonitor Report Advises Targeting Customers by Type | Lipton to Launch a Hard Tea Brand in 2023

| NEWSMAKER – Peris Mudida, CEO Kenya Tea Board

| FEATURE INTRO – Peris Mudida, chief executive officer of the newly re-established Kenya Tea Board in Nairobi, shares her vision and describes the tea board's mandate to regulate, sustainably develop, and promote the tea sub-sector.

Kenya Repositions its Tea Board to Meet Challenges – Founded in 1950 as an independent, public body responsible for developing, promoting, and regulating Kenya’s tea industry, in 2014, the Kenya Tea Board was dissolved in favor of a single Agricultural and Food Authority (AFA) housed within the Ministry of Agriculture. In 2021 the newly constituted Tea Board seated elected representatives of smallholder cooperatives and associations, factory operators, large producers, tea traders, and the Kenya Tea Development Agency – a private consortium representing tea farms and factories responsible for producing 60% of the country’s tea. As CEO, Peris Mudida works closely with the Ministry of Agriculture and the Ministry of Trade and is the official promoter of Kenya’s tea industry worldwide.

The Tea Biz Podcast delivers T 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 T 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 everyone here this week's headlines. Kenya announces a national tea brand. It's newly elected president makes value addition in T exports a priority. A Euromonitor report advises targeting customers by type. Lipton will launch a hard tea brand in plus. Paris. Medita, chief executive officer of the newly re established Keny Ty Board in Nairobi, describes kdb's mandate to regulate, sustainably, develop and promote the T subsector. Mourn a minute, but first this important message. What makes a perfect cup of Ceylon te 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, Telewaki, Lee Boga, wanthal Awa Harana and Eliptia te estates support Save the Children Sri Lanka. President William Roto, Kenya's new head of state, has directed the Ministry of Trade to develop a Kenya tea brand and to build processing and packaging facilities that maximize foreign exchange earnings and guarantee farmers good returns. Kenya is the...

...world's largest bolt black tea exporter, accounting for of the global total, but only five percent of tea exports are packaged or otherwise enhanced in value. President Ronto announced that the government would work with industry players to build a shared value addition facility at Dongle can Do in Mombasa to process and package tea. He set a five year goal for increasing the amount of value addity from five to fifty of total exports, which last year reached five hundred and fifty eight thousand metric tonts. On October five, he total crowd at the Kenyana International Convention Center that good quality Kenyan t has long held competitors improve their blends. Competitors that produce is far less tea earned three times more per kilo because they add value to their tea. The practice must change to enhance Kenya's earnings, which totaled a hundred and thirty six billion shillings or about one point three six billion US dollars in According to Kenya's Agricultural Authority, he contributes twenty three percent of Kenya's total foreign exchange earnings and supports the livelihood of more than five million people. Quote. He is one of the key drivers of the country's socioeconomic development and a pillar for economic growth and quote. According to the Tea Board of Kenya, foreign exchange revenue is critical to the government's Big Four Agenda success, specifically in enhancing manufacturings, contribution to GDP and support for food and nutrition secure.

Ruto said the first shipment of tea to Acragna into the African Continental Free Trade Area Agreement was historic, overcoming barriers to trade and opening markets on the continent. Quote. Today's action confirms that Kenya believed in active from day one. We asked fellow Africans to use this platform to actualize Africa's dream in trade in business in quote, he told Capital News. Business inside. Tea production in Kenya is growing by an average of five point three five percent annually, equivalent to twenty one metric tons land under tea is also increasing at an average of four percent per year, equivalent to ten thousand hectors and now totals two hundred and fifty thousand hectars nationwid roughly six hundred twenty thousand acres. The steady increase in supply is one reason that nees CTC sold for an average of only two dollars and ten cents per kilo at auction. Prominent contract Brewer announced it will team up with Lipston PepsiCo to launch low alcohol Lipton Hard Tea. Five Go USA and Buffalo, New York license the name to develop, manufacture, and market a line of Lipton teas to be sold through the Blue Cloud distribution network. The teas will be available in four flavors and contain five alcohol by volume. In a press release, five Code rights that its product development team quote stayed true to Lipton's high quality and great taste, and based on our...

...consumer research, we expect a strong brand launch and a great response from consumers end quote. Five Go will launch with rt D Lemon, Peach, strawberry, and half and half versions. Fifco produces Labat Genesee, Pyramid, Magic Hat and Sea Rooms escapes, which are flavored malt beverages. Blue Cloud as a subsidiary of PepsiCo that distributes hard mountain dew. Category leader Twisted Tea, which launched in twenty one, generates an estimated sixty million in annual sales for brand owner Boston Beer Company. Euro Monitors Understanding the Path to Purchase, a fifty seven page report within Sights drawn from the market research firm's ongoing Voice of the Consumer Lifestyles survey, is now available. Edition is the third in the series. Tea marketers heavily rely on demographics when targeting consumers. Millennials, for example, drink coffee and prefer sweet fruit flavored tea. Quote. I see almost a fifty fifty splits as Starbucks Tea development lead Christopher McNett gen Z Ages ten to twenty five is far more likely to drink mostly tea. Our gen z Zoomer demographic wants sweet herbal. They are very much more in the herbal space, preferring herbaceous blends. According to McNett, You're a Monitor cautions that demographics shouldn't be your soul directive when analyzing shopping behavior and purchase decisions. The marketer adds this information alone will view a skewed view of daily habits and long...

...term lifestyle choices. The report describes eight cohorts, shared beliefs and shopping behaviors. The most prevalent globally are secure traditionalists eighteen percent of the population and undaunted strivers representing sixteen percent of the global population. Balance optimists and empowered activists each makeup fourteen percent of the global population. Thirteen percent of the population are cautious spenders and ten percent are impulsive spenders. Minimalist seekers make up nine and conservative home bodies comprise six percent of the population. The report does not quantify which cohort drinks the most tea, but there are tea drinkers in every cohort, So how do you blend? For gen Z? Knowing the flavors they savor is a start, says McNitt. Researching their beliefs and behaviors offers additional insights. Empowered activists, for example, value authenticity and strongly advocates for social, environmental and political justice. According to Euromonitor, try to positively impact the environment and say they can make a difference in the world through their choices and actions. They are most influenced by family and friends. Consumer reviews product labels and packaging. Sixty regularly purchased products in store and forty seven shop online. They are least influenced by celebrity endorsements, bloggers or social media influencers. Business Inside...

Sternberg's MCNET notes that when blending tea for gen Z quote, what we need to account for in the data is that when we're talking about tea, we're talking not just about camelias andensis. We are primarily talking about herbs, he said. Are Benda, an entreman in Bengaluru, reports on this week's t auction prices India tea price support for the weekending October ONETO. The quarterly report from the Investment Research and Credit Rating Agency is just out. According to the report, the high prices of orthodox T that the Indian commodity market is enjoying will continue thanks to the demands supplime mis match emerging from the Sri Lankan T production instruction. Not in thea. CITC prices have been up five year on year, aided by a rise in auction prices August. The price premium for top n CTCT is expected to continue. According to the report, The prices of CTC from South and there for the period able to August twenty twenty two have the main lower than the previous two five months periods. The report also included exports. North Indian exports for the first half of twenty and twenty two were up eleven point three million kilos, which is about twenty while Southern an exposed reduced by point eight million kilos about two percent. In auction Sale thirty nine sow good demand for Orthodox and dust grades, with exporters active for orthodox ts and and blenders for dust GRADUALNDS averaged two eight two piece, which is lower than last week and much lower than the corresponding sale last year. Goaty software demand with major blenders actors for both leaf and dust crisis were similar to last week compared with the corresponding sale weeks last year. Twenty two improved prices but not as good as in South India. Seals and prices were similar to...

...the previous week and the meal. The team Boat has fixed the average relief price for September at now award from our sponsor. Q Trade understands that a successful tea blend goes beyond the creative fusion of appearance, aroma and flavor. Our multi award winning product development team is passionate about converting natural ingredients into sensory experiences that customers crave. Every recipe is formulated with a commercial backbone of dependable quality sourcing, with a pricing structure that supports as safe, regulated, profitable, and scalable blend. Q Trade meets every brand's retail, food service and e commerce need. For more information, visit our website que trade tease dot com. Last week, t B has talked with Paris Medita, chief executive Officer of the newly re established Kenya Tea Board in Nairobi. Paris led the first Tea Board delegation to visit the North American Tea Conference in nearly a decade since the disillusion of the regulatory body in twenty fourteen. Founded in nineteen fifty as an independent public body responsible for developing, promoting and regulating Kenya's tea industry, in twenty fourteen, the Kenya Tea Board was dissolved in favor of a single Agriculture and Food Authority housed within the Ministry of Agriculture. Paris Medita, trained in the law, was named head of the a f A S Tea Directorate in twenty after serving six years as the Ministry of Agriculture's Tea Regulation Legal Services Manager one, the newly reconstituted Tea Board seated elected representatives of smallholder cooperatives...

...and associations, factory operators, large producers, t traders, and the Kenya Tea Development Agency, a private consortium representing tea farms and factories responsible for producing six of the country's tea. As CEO, Harris works closely with the Ministry of Agriculture and the Ministry of Trade and is the official promoter of Kenya's tea industry worldwide. Joining us today is Kenya t Board Chief Executive Director Paris Medita. Welcome to the podcast. Thank you. Will you tell listeners a little bit about the history of the Tea Board and your thoughts on its reinstatement As Kenya's tea industry promoter and regulator. The Tea Board of Kenya is mandated by the Government of Kenyan to provide oversight over the tea sub sector in Kenya. The Table of Kenya is a new institution which came into operations in twenty twenty one after the government made a policy change and brought back the Table of Kenya. The table of Kenya used to exist previously up to around twenty thirteen, and at that point a decision was made by government to consolidate regulatory institutions under the CROUPS sub sector in Kenya and so the Teable was converted into the Agriculture and Food Authority. However, after about seven or eight years UM a decision was made to reverse that and to re establish the table of Kenya. So the TAPLE of Kenya is a state coppression established under the Tea Act. The...

...t Act was past in the year twenty Broadly, the mandate is to regulate, develop and promote the sub sector in Kenya. Tell me about your vision for the table word and your ambitions. Yes, the tablet of Kenya, as I have said, has a very broad mandate under the TAT to develop the sector, to promote the T sub sector and to regulate the T sub sector. As I'm sure many people who are conversant with tea now that Kenya is the that largest producer of tea in the world and actually the leading tea exporter in the world. Kenya exports most of what it produces, so for us at the Tablet of Kenya We want to ensure that the tea that we produce UM is produced UM in a sustainable manner, and that we are able to get that team into the markets out there, and that we're able to UM get the returns that we desire for escially the producers, the farmers who toil on the farms, are they able to make a living out of that tea UM and also of course for the foreign exchange that it ends our country. So we are looking at having an industry that meets the expectations of the farmers and also the other value chain players in the industry. We have buyers, we have the the persons who by the tea and the memberssarity auctions. We have other people who are involved delible chain. They packed the tea and...

...self. So we are looking at having everybody getting a fair return for whatever they do along the table chain and of course having an orderly industry where there's fair play and that everybody gets a chance to do what it is that they want to do. Our listeners share your level tea and they live in every country of the world. Seventy three different nations produced tea. What message would you like to leave them? Yes, my message to the tea consumers is that T is good. So we wanted to take more and more tea, and not only more motive, but more Kenyan tea. Kenyan tea is good tea. As you well know, it is produced in the highlands of Kenya where that is grown in a natural environment. There's no application of any sort of pesticide, and so you can be sure as you take cut that it is a pasty side free and it is good for your health. And as you consume that tea, would also like to ask you to remember that their producer of that T also needs a fair return, so that you also as you buy the tea, that you also pay a fair price for the tea. Intrigued by what you've heard in today's podcast, would you like to learn more from our global network of tv IS journalists and T experts. Remember to visit the tv IS website from more comprehensive coverage. That's w W W T hyphen biz bi z dolt Cohom. Thanks for listening, farewell till next week.

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