Tea Biz
Tea Biz

Episode · 5 months ago

Tea News and Biz Insights - November 25, 2021

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HEAR THE HEADLINES – In the Black: Holiday Sales are Surging | CVC Capital Pays $5.1 Billion for Unilever’s Tea Portfolio | A Climate Change Adaptation Essential for Tea | NEWSMAKER – Evy Chen, founder of newly rebranded Evy Tea, Boston, Mass.| GUEST - Kym Cooper, co-founder of East Forged tea in Brisbane, Australia.| FEATURES – This week Tea Biz travels to Brisbane, Australia where East Forged Tea co-founder Kym Cooper reminds us that innovation need not be at the expense of the timeless taste of tea. East Forged preserves that taste ― with no sugar, coloring, or artificial flavoring ― in a convenient, slightly fizzy, nitro-infused, cold-brewed iced tea that pours a craft-brew-like head of foam. … and then to Boston, Mass. to learn how Evy Chen, facing an 82% decline in foodservice sales of her signature cold-brewed tea, reformulated, rebranded, and relaunched online as a successful direct-to-consumer brand. The Timeless Taste of TeaEast Forged tea co-founder Kym Cooper explains that innovation need not be at the expense of the timeless essence of tea. East Forged preserves tea’s delicate taste ― by avoiding sugar, coloring, or artificial flavoring ― in a convenient, slightly fizzy, nitro-infused, cold-brewed iced tea that pours a craft-brew-like head of foam.Resilient & Resourceful: Evy ChenIn 2020 US restaurant and foodservice sales fell by $240 billion placing unprecedented stress on food and beverage suppliers. Evy’s Tea, a pioneering cold-brewed, ready-to-drink tea manufactured in Boston since 2014 nearly failed when the pandemic altered long-established consumer buying habits. Short on money and with a skeletal staff, founder Evy Chen’s resourcefulness led her to develop a tea concentrate in cans, enabling the company to pivot online as a direct-to-consumer brand now known as Evy Tea. Chen’s story is the first in a series of articles describing how resilient individuals arrived at pandemic-inspired workarounds that exceeded expectations.

The tee Biz podcast delivers a recap of the week's major tea news headlines, with commentary and cultural trends. Hosted by Dan Bolton. Te Biz is the voice of origin for tea professionals and enthusiasts world wot 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 head lunch in the black holiday sales or surgeon. The CBC capital pays five point one billion for inner leaver's tea portfolio and a climate change adaptation essential to 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, Tellawaki, Lee, Bogajan, Thalawa, Harana and Elyptia tea estates. Support Save the children. Sri Lanka, shoppers are exceeding expectations for the holidays. Consumer spending online rose twenty percent in the first three weeks of November, according to Adobe Digital Economy Index, which predicts a record two hundred and seven billion, and e commerce sales this holiday season up ten percent compared to two thousand and twenty. The US Census Bureau tally two hundred and fifteen billion in third quarter e commerce sales, which now account for thirteen percent of total US retail sales. The National Retail Federation Projects Holiday sales will increase eight point five percent, totaling eight hundred and fifty nine billion over the forecast period, compared to two thousand and twenty. Pre pandemic US holiday shoppers spent an average eight hundred and seventy four dollars on gifts and entertainment during the two thousand and nineteen holiday season, a number that is expected to be exceeded in two thousand and twenty one. Americans will spend in between five point one and five point nine billion on black Friday. Consumers appear to be heating the advice to shop early. Toy sales are up two hundred and fifty six percent. Amazon reported a twelve percent surge in sales, and retail sales in October were twenty one point four percent above their pre pandemic level. The as economy is now operating at seventy five percent of normal. According to forms, consumers say they are comfortable returning to mass however, rising rates of infection and local lockdowns continue to damp and food service sales. The sales at restaurants except fast food and grocery daily counters remain below two thousand and nineteen totals, and operators are now experiencing inflationary pressures and labor shortages. Spending at hotels and restaurants rose in the third quarter as consumers say they are eager to dine out. Tea is prominent on the menu and popular, but until diners are seated again, sales will lag. Meanwhile, tea sales and grocery remain stable. Ready to drink tea is rebounding. Very few consumers include beverage orders would take away, but sales of ICED tea at drive throughs have fully recovered. Business inside logistics is the retail Achilles heel. ...

Department stores confirm that low inventory due to sluggish and, in some clothing categories, moribum. Supply chains, clawboard, Nordstrom's, the gap, coals and macy's, target and Walmart charted a fleet of cargo she tips to guarantee shelves will remain well stocked, paying an enormous amount to bypass ship jams, only to encounter across country truck jams and local delivery delays. This year marks the lowest black Friday discount penetration since two thousand and sixteen. Promotions are much less generous a year, down from twenty one percent to an average fifteen percent, due to the unusually high cost of goods. Luxembourg based SEBC capital partners last week paid five point one billion to acquire legendary Tea Brands Lipton, peg tips, broke bond lions, bashells and red rows, as well as relative newcomers Tozzo, Tetoo and pooka herbs, culminating Unilever's yearlong corporate carve out. The deal follows a year of organizing ectarity as a separate division, and effort that involved thirty five hundred employees in ninety offices and factories and simplified the hundred and fifty year old supply chain of tea gardens, tea processing and packaging factories, as well as distribution facilities. Of six months transition is under way before the transaction closes in mid two thousand and twenty two bold, big scale investments in tea companies are rare. Five years ago, you Labor spent a combined five hundred million acquiring retail chain t two and two thousand and thirteen, completing the roll up in two thousand and seventeen when it bought the touzo brand and PUCA herbs. But these acquisitions were tactical and defensive, designed to stimulate revenue and light of a more of an black tea category by diversing an aging stable of legacy brands from Lipton to lions. The five point one billion deal announced by CBC Capital This Week is ten times greater. Signaling and intend to revitalize and elevate the portfolio. In Labor spent the past year shaping the new corporate and model for the large scale production of sustainable tea, but was unwilling to finance it at COUTARA's vision could only be realized if the corporate carve out attracted aggressive bidding. Fortunately it did. Finalists CBC capital, Carlisle and advent international each spent time in money evaluating the potential rewards boards for investors. The low bid of four billion dollars demonstrates that independently. They agree that echoter is headed in the right direction. CBC's winning bid was fourteen times Ebidah, a measure of the portfolio's basic contribution to, you know, leavers earnings. All three bids embrace the complexity of reimagining tea at scale. Insiders say CBC one the day with determination and grit. The Glasgow Climate Pad calls for doubling the developed world's investment in climate adaptations for poor nations. Farm level mitigation is under way as...

Tea Gardens Dig Ponds to capture rainwater and plant trees for shade. But generalized weather forecasts focus on changes in average conditions and are of little help alerting growers to heat waves and frost. Africa has only one eighth the minimum density of weather stations recommended by the World Meteorological Organization, leading to inaccurate forecasts and unreliable early warning systems. Kenya's government currently maintains only twenty two rainfall stations in a country spanning two hundred and twenty five thousand square miles. As it turns out, the gardens themselves are repository of great volumes of hidden weather data used by the University of Leeds to develop high tech computer simulations capable of providing climate information that is both useful and usable for tea growers in Kenya and Malawi. The conversation explains that understanding what future conditions will be like is particularly important for tea growers because the tea plant has a lifespan of more than eighty years. Quote. That means it is critical to take decisions now that will continue to be sound in the future, like replanting with better and resilient cultivars, planting shade trees and crop diversification and, quote, according to researchers business inside, in January, the Kenya Agricultural and Live Stock Research Organization signed a two year contract with aware ink of Denver, Colorado. The contract permits them to monitor six thousand, seven hundred and eighty seven virtual weather stations in Kenya that provide advanced weathered an a an analytics. The Support Climate Smart Agricultural Assertions awhere maintains one point seven million virtual weather stations worldwide. According to CEO John Corbett, our vendor and and the man in Bengaluru reports on this week's tea auction prices. India tea price support for the weekend in November Twenty, two thousand and twenty one. Looking at the auctions this week, called Kata saw good demand for CTC, Orthodox and dusty. In the Stun Uni Lever was active for CTC, while Middle East was active for Orthodox. Have have a few out lots of CTC and dust the quantity of that. jeelings and offer this week was higher prices, but up marginally. Gohatti also saw good demand, with major blenders active. In the Sun Unilever was also active. Prices remain largely the same as the previous week. However, the better than corresponding prices from two thousand and nineteen. In the South, coaching saw better demand for Orthodox Leaf. The demand from domestic bias. Comparison with twenty twenty, prices, however, show a decrease. The CFO state number forty six and could not CTC leaf continue to see good demand, with fewer out lots. Also in Cono, two hundred forty four kilos of green tie and office sold for an average price of two hundred piece per kilo. And now a word from our sponsor. You trade understands that a successful table and goes beyond the creative fusion of appearance, a Roma 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. When the pricing structure that supports a safe, regulated, profitable and scalable bland, q trade meets every...

...brand's retail, food service and ECOMMERCE need. For more information visit our website, que trade teascom. This week, tabs travels to Brusbane, Australia, where East for Tea Cofounder Kim Cooper reminds us that the taste of tea is timeless. No sugar coloring or artificial flavoring is required. East forges innovation preserves the simple goodness of tea, made conveniently available as a natral infused cold brewed ice tea in cams the poor of craft like head of foam. And then to Boston, Massachusetts, to learn how every chain facing an eighty two percent decline and food service sales of her signature cold brewed tea reformulated and relaunched online as so successful director consumer brand. These stories the first in our resilient and resourceful series east forged teas or cold brewed from organic coal leaf green black and white teas blended with Nonalcoholic, low sugar alamancie and Musa juice. The teas are then packaged in cans with a shot of Cotwo for fizz and nitrogen to add texture and a creamy head when bored. Let's talk today about innovation and the timeless essence of tea. What do you like most about tea? I love the taste of tea, and the taste it's really clean and pure, described frequently by tea drinkers is being very delicate and light and I think if we can agree that this is the natural taste or the baseline of tea, you can then start to find really enjoyment. I mean learning more about the plant, it's newance, complexity, mass feel and the process by which it is being created. And these are all qualities that actually make other agricultural products and ingredients really appealing. But somehow it it's just not bridged across the tea and I think our perception and understanding of the taste has been largely shaped over the years, bobbed by what we can access conveniently in supermarkets. The the food and drinks start to become dominated by enhancers, which then can the taste appeals to a mass audience, and then you can also achieve commercial reality such as maximum shelf life, and by becoming accustomed to these sort of synthesize tastes that are more developed in flavor houses and then enhanced by sugars and sweetness that still go under the guise of being natural. They don't reflect any more the original ingredients, clean and untainted taste. It is actually quite a real challenge to find tea beverages, both in the hot and the ICED tiles, that that are this true representation of unadulteratency. Kim, you said that you encourage a broad to tasting experience, so let's start with that. How do you interest consumers and tasting better tea? I think that the best way is really to make it approachable and accessible. In my view, the goal of interesting people in tea is and is not necessarily to demand that their tastes are not refined enough. It's about really trying to encourage people to be able to have a wider tasting experience. We can best interest people by drawing on some of the really simple and natural benefits of the tea taste and allowing them to enjoy it in that way. When I teach people educate people on tea, it's...

...just to take that first step and to pick up the cup and taste it and not have any predefined thoughts about what that should be before you sort of move on and then decide what you stuck to like really enjoy for cold tea drinks that they're a long way from representing that natural taste. To really start to help consumers and introduce consumers, I think if we approach making tea beverages using a quality leaf tea that meet a production standard that still retains that natural taste of the leaf, what I would love to see as we continue to introduce more of this natural tea language and they expectation of taste. It's about reaching a point with tea where it may matter or we believe the tea drinking experience is being enhanced if we reach for a different type of tea, if we reach to a Japanese growing Yabow key to centure over an Australian growing Yabow key de Centure, depending on how we're experiencing it, what we're eating with that tea experience is being enhanced in some way, just as we might reach for something like a Granny Smith or the green apples here in Australia to create a baked apple tart over a red, delicious apple, for as an example. In full, and this is as much about as understanding seasons and harvests that we see across all agricultural products, that can be drawn into the world of tea. What is the best way to preserve the natural goodness of tea? Tanya, who's my cofounder and he's forged and I we have this strong belief, is tea specialist, that we want to leave the tea industry in a better way than what we left it. We're very uniquely position to solve the problem of this underrepresented natural tea taste in the ice tea market. We do use simple and natural ingredients, we use our wide network of tea growers and farmers that we've worked with over the years to source directly from them and then we really minimumly brew and preserve the tea plants and it's most delicate properties to be able to continue delivering on that tea taste, some mix of bringing the tea knowledge and the craft techniques. In the Australia market, craft beer is huge. What we love looking at in terms of any upcraft industry is is sort of the techniques they're using to to highlight the natural ingredient. So what we've then done with taken this simple and natural ingredient. We are just a small amount of fruit juice to elevate the flavor profile. We've played around with the gases that we use within our drinks, so they're a small amount of COTWO. We use largely nitrogen in our beverages to retain the best flavors of tea, because each gas works slightly differently in the flavor profile. But at the end of the day is still undeniably that taste of tea and it's this really short ingredient lists that highlights our east forge difference. The brilliant in this short ingredient list is that it actually punches above its weight, I would say, in terms of the taste. And we do do that by delivering a refreshingly social new style of craft ice tea refreshment that actually looks deceptively like a beer, completely non alcoholic with the natural and health benefits that come with tea he's forged. Here we're very much about creating this new wave of ready to drink craft ice tea, but for tea drinkers that are really expecting that provenance of tea in every dog drop that they drink, and it's a cold brew that I think any suber curious person will be surprised that it's tea. The tea industry demonstrated its resilience during two years of disruption. But let's is...

...said about individuals overcoming pandemic related obstacles and the resourcefulness of people who grow, process and trade tea. To remedy that tab is a sharing stories of clever workarounds that exceeded expectations. In Two thousand and twenty US restaurants and food service sales fell by two hundred and forty billion dollars, roughly twenty two percent for the year, placing unprecedented stress on food and beverage suppliers. Covid log bounds led to a surgeon online transactions and altered long established consumer buying habits that continue to impact the beverage industry. Everybody was freaking out right. People were scared, people were bene eating and the so. So it's a lot of people's insecurities came out during coldd but that's be my world for you know, the past ten years I didn't have a lot to work with. I thought I had to be resourceful, being a woman of Color and immigrant, a younger person, I think that quality was just was always there, and so cold a really brought in more of a focus and say this is my this is my game. I did this better than anybody else. So it really was to say, okay, now it's chaos. But within the chaos, where is the virginity and what kind of resources do I need to surround myself with? Listen, this is the heads down, the hardest thing I've ever done. Everything I've established in the past ten years gone, products, gone, clients gone, people gone. I practically had to rebuild a company with not much money during covid well, let's get granular, for starting from retail pricing. You want to keep your costs at twenty five percent, right, so you have to keep your margin at a certain level. Then it's reverse engineering back in everything, right. So we do a Apack right now on Amazon and vtcom and that's one single flavor. So for us, shipping costs exactly the same, whether you'll buy one or two packs, and math becomes very simple. It's not necessarily about cutting weight per se. It it's about, within that particular package, what kind of product and services you can provide to add on of the value all that, because your cost is fixed from a shipping perspective. Where we caught cost wasn't necessarily at the very end of shipping to consumers. It start is chasing all the way back to the beginning of supply team and say, okay, the containers now costs, you know, fifteen times more than what it was before. So how do we engineer within this map and say whose truck can we get on that's already coming this way, instead of hiring our own trucks? We got really, really creative. We had to figure out a way to raise more capital up front and work out a contractual deal with our suppliers. You lock in cost where you can control. So it's a lot of those very specifically, you know, tweaking the P and now tweaking the cock structure, tweaking the entire engineering within we're hearts the most you describe the listeners. Your innovation and brewing a base concentration to trim costs. We developed our own teabates. That is a concentration. It's one thing I'm the most most proud of it as a food scientist. To scale the exact sensory experience of the craft tea, with the stability,...

...the shelf life and everything you can imagine about being a larger manufacture and captured a marginal opportunity. So shipping less water, shipping it less often, make more of it at one go and then just figuring out what is stress that supply throughout a year. Every single drop of it is heavy ice. I engineered it from the very, the very gecko. But from now on, to US scaling to a hundred million gallons, the the product quality will remain consistent, exactly the same, and the sensory experience it's just as, if not better, than when I made you a cup of tea at my key bar. How are your rebranding and direct to consumer sales on fold in two thousand and twenty two? I'm not interested in capturing ten million people next year. That and that's a typical play right. You raise a lot of money. You troll stuff against the wall and see which one sticks and it doesn't work and you move on. I will like to capture people and keep them and engage them. I want to keep that person as a lifetime friend, because this is a long journey for me. The velocity of how we work with our retail partners, online offline, to really tell that story and say and prove a point of storycentric marketing works. I'm looking at it as sour dough starters. I am naturally feeding. This is the best fee and by see in the world. Pens down. I don't have to sell them on that. Oh, I need to do is to get the products to them and get them interested enough to taste it for the first time. It's a wonderful ingredient. So it has a huge amount of history and culture and humanity and story within. Why is t sugar water? Why are we only worth twenty cents a pound? Rapes can be sold for a hundred forty a pound. It's not lesson labor intensive, it's even more labor intensive. Right. So why do we do all this work and and still when we don't get the same value? And I realize the only difference is that we're not vocal that we don't think we're worth it. Anybody that you taught to, any tea farmers and it distributors, anybody you talk to, the most humble human beings on earth, right or really nerdy. We're serious. We would truly love us. But who is out there that's talking about it in a bigger platform? Who is listening? That's the work we've been doing and being putting in. We need to start figuring out how to tell the same story in a different way, in a shorter format, in the more heartfelt, emotionally felt format and more truthful format, and throw that against the wall against all the other big companies who are nothing but marketing. So I've got nothing but simply decided that I'm worth more. Intrigued by what you heard in today's podcast, would you like to learn more from our global network of TB is journalists and t experts? Remember to visit the Te Biz website for more comprehensive coverage. That's Wawwt Biz bizcom. Thanks for listening. Farewell, till next week.

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