Starbucks on course to serve Darjeeling tea
Starbucks, the world's largest coffeehouse chain, has requested a license from the Tea Board of India to import and sell Darjeeling tea. This move indicates that the company may be planning to serve tea from the Darjeeling region, dubbed the Champagne of tea, in its 17'000 outlets across 49 countries. According to local regulations, a Certification of Trade Mark license is necessary for all producers, manufacturers, packagers, blenders, exporters, and traders who wish to sell tea labeled as Darjeeling tea. Starbucks, which bought Tazo Tea for $8.1 million in 1999, subsequently teamed up with McLeod Russel, Apeejay Tea, Warren Tea and Chamong Tee Exports to source other Indian teas for the international market.
East India Company relaunched after more than a century
East India Company, the world's first multinational company founded more than 400 years ago, has been resurrected as a luxury brand. The company, which lay dormant for more than a century, started selling gourmet tea and other specialty products. The "tea library" at its flagship store in London features more than 100 different types of brew, including green, black, herbal, and flavored teas. The East India Co. began as a trading monopoly under Queen Elizabeth I in 1600 to ship commodities to the West from India and China. It controlled the trade in indigo dye, cotton, silk, opium and tea. The owner has so far invested $20 million in the project and estimates that another $100 million will be needed to increase the number of retail outlets and expand into other areas of trade.
Tea company turns to microfinancing for loans
New Mexico Tea Co., a bulk tea supplier, has turned to its customers to secure a loan through microfinancing. Its co-owner decided to appeal to their customers when his bank turned him down for a line of credit recently. He sent an email to the 3'800 people on his newsletter list with the aim to raise $5'000. To his surprise, he had raised $10'000 within the first 48 hours. The capital was made up of $4'500 in “microloans” and $5'500 in gift cards. The extra funds will allow the company to pay in advance for tea from vendors and to stock more tea, teapots, and other accessories.
Vibranz is first kombucha back on shelves
Kombucha manufacturer Vibranz is the first company to have its organic fermented tea back on the shelves of Whole Foods. The grocer pulled the probiotic products from its stores over worries they contained too much alcohol. Vibranz has created a new formula that reduces alcohol to fall within the limits of 0.5% alcohol by volume. Prior to last month's recall, kombucha tea was experiencing unprecedented popularity among organic beverage enthusiasts. According to market research, sales of kombucha and other "functional" juices in the US topped $295 million last year, up 25 percent over a two-year period. Vibranz Kombucha Teas retail between $4.69 and $3.89 and are available in eight flavors including Original, Blood Orange and Raspberry.
Honest Tea out to test people's honesty
Honest Tea is undertaking a novel social experiment to test the honesty of people living in big cities across the US. The guerrilla marketing coup consists of an unmanned pop-up store offering iced tea in return for 1 dollar placed in a glass box, with cameras recording how people behave. The experiment was carried out some of the biggest cities in the US such as New York City, Washington, DC, Boston and Chicago to test the honesty of their respective inhabitants. It turns out that Boston came first in the ranking, with 93% of people paying for their drink, followed by New York and Atlanta at 89%. Chicago fared the worst, attracting only 78% of paying customers. The money collected during this experiment will go to charity.
Pasteurized kombucha shines after removal of raw varieties
Following a recent removal of raw kombucha from shelves of several grocery chains such as Whole Foods due to elevated levels of alcohol, manufacturers of pasteurized kombucha are expected to cash in. Kombucha Wonder Drink, a company that was amongst the first to launch the category in the US almost a decade ago, is one of the few brands to offer a pasteurized version of the beverage, which ensures that it is consistently safe, stable and under the 0.5 percent alcohol limit set by the US authorities. Kombucha Wonder Drink is now likely to become the one of the fastest growing brands in the $300 million kombucha category as its products remain on shelves nationwide. On a separate note, the US authorities raised the possibility of treating the beverage like an alcoholic drink in terms of regulation and taxes.
Charleston Tea turns to RTDs after decade
Charleston Tea Plantation, the only tea plantation in the US, has introduced a range of bottled ready-to-drink iced teas. American Classic Tea comes after more than a decade without bottled drinks from the company. Three flavors are available: original(made with cane sugar), sweet with lemon and sweet green tea. The plantation, located in South Carolina, also announced a 15% rise of visitors and plans to offer a greenhouse stop on its trolley ride, where people can see in closer detail how tea grows. Its grounds include 127 acres of tea plants, a working tea factory and a gift shoppe. Charleston Tea Plantation is owned by Bigelow Teas since 2003.
Honest picks up exceptional workplace award
Inc. Magazine and Winning Workplaces, a non-profit organization committed to helping small and mid-sized businesses create high-performance workplaces, have singled out Honest Tea in their 40 Top Small Company Workplaces of 2010. The ready-to-drink tea manufacturer was honored for its telecommuting policies (60% of employees work from home and the rest are allowed to telecommute when the need arises) and for its health and wellness programs, which provide employees with wellness intranet, alternative transportation subsidies, healthy snack packs and wellness coaches. The finalists were judged based on specific metrics and qualitative assessments of their success in creating the kind of workplaces that engage employees and deliver successful results.
Steaz continues growth, appoints new management
The Healthy Beverage Company, owner of Steaz ready-to-drink tea brand, has reported a 38% increase in sales for the first quarter of this year compared to the same period in 2009. The company also announced the appointment of Jim DePietro, a former executive from Unilever and Pepsi Lipton Partnership, as CEO and Steven Kessler as President. According to DePietro, Steaz's growth is a result of increased consumer demand for the brand, distribution gains into strategic grocery accounts and successful targeted direct-store-delivery expansion in Southern California. The company has also received a further cash injection from its current investment group led by Switzerland-based Inventages Venture Capital.
Tata selects three global power brands
After rebranding its tea subsidiary to Tata Global Beverages, the company has now unveiled three brands which will lead its global branding initiative. Tetley, Good Earth and Himalayan will be taken to developed markets such as the US, Canada and Europe, and the emerging ones of Africa and the CIS countries. The move is seen as a clear indication that tea, coffee and water are to become Tata's core segments. Company's flagship Tata Tea marque, as well as Eight O'Clock brand will continue to be managed on a regional level for the time being, with the possibility to roll them out globally later on.
Sweet Leaf increases funding to $19m
Sweet Leaf Tea Co., a manufacturer of flavored iced teas, has increased the amount it received in its latest round of funding from $14 million to $19 million. According to the latest filing with the US Securities and Exchange Commission, the company received $19 million from 17 investors, with Nestlé Waters North America investing $15.6m last year. Sweet Leaf, founded in 1998, bottles about 10'000 gallons (38'000 liters) of tea a day and is distributed in every state in the US. It employs about 36 workers.
Nespresso tea version announced by Nestlé
In a move that is likely to have a huge impact on the tea industry, Nestlé has announced plans to sell a line of premium tea and tea brewing machines. Nestlé, the world's largest food company, plans to sell 25 'Special.T' tea varieties and a Nespresso-style tea making machine in France from September. Tea machines will cost €89 ($110) and tea pods will cost €0.35. 'Special.T' line will be available in green, black, red and blue varieties, as well as Earl Grey lime and blueberry muffin flavors. The machines will be able to "read" each capsule and brew the tea at different temperatures and speeds, depending on the variety. The western European tea market is worth €4 billion, whereas the coffee market is estimated at almost €13bn, according to Nestlé.
Tea juggernaut looking for more acquisitions
McLeod Russel India Ltd., the world's biggest tea grower, plans to use rising prices to build a 'war chest' of as much as $250 million to acquire companies. After buying plantations in Uganda, Vietnam and Rwanda, the company is looking to buy more companies in India and Africa as it targets a 50% increase in production to 150 million kilograms in three to four years. McLeod Russel expects India’s demand for tea to rise 3.5 percent annually, outpacing the estimated 1.5% increase in production this year. Prices in North India, which accounts for 70% of the nation’s output, may rise as much as 15 percent as demand for the beverage grows and costs increase.
Co-founder and president of Steaz quits post
Eric Schnell, co-founder and president of the Healthy Beverage Company and creator of the Steaz brand, has exited the company. During his eight year stay, he is credited with creating the company's tea-based product innovations including the first organic soft drink in 2002, first organic energy drink in 2007 and first complete line of organic and fair trade certified canned iced tea products in 2008. Schnell's departure comes amidst ownership and management changes at Steaz, including majority ownership shifting to Switzerland-based private equity group Inventages. Schnell will retain a significant equity position in the company.
Tata Tea opts for new company name
Tata Tea has chosen a new company name, Tata Global Beverages Ltd., to better reflect its diversified portfolio and global ambitions. The Indian company, worth $1.07 billion, has branched out into products like coffee, energy drinks and mineral water. Tata Tea, which has a presence in 60 countries, had acquired several global companies in the past years such as Eight O'Clock Coffee and Tetley, expanding is business from a pure tea and related plantation company to a beverages major across the spectrum. It will remain part of the Tata Group, with 357'000 employees worldwide and total revenue of $70.8 billion.
Coke to broaden Honest Tea distribution
Coca-Cola is focusing on strongly expanding the availability of Honest Tea throughout the US. The soft drinks giant, that purchased a 40% stake in Honest Tea in 2008, says the majority of franchise distributors have committed to the expansion, including retail giant Wal-Mart. Coca-Cola has also helped finance a $1 million tea brewer at one of its bottling plants to process Honest Tea, which steeps tea leaves in hot water rather than mixing a manufactured powder. Honest Tea sold about 5 million cases last year, for revenue of $47 million.
Sweet Leaf encourages young entrepreneurs
Sweet Leaf Tea, a producer of organic ready-to-drink iced teas, is participating in an initiative to support the entrepreneurs of tomorrow. Lemonade Day, taking place on May 2nd in several US cities, is an event dedicated to teaching children the basics of building a business by having them create their own lemonade stand and unique lemonade flavors. The company, that started from scratch in Austin, Texas more than a decade ago, is playing an active role in this year's festivities and will be sponsoring several smaller fundraisers and contests in addition to the main event.
Tata Tea and Pepsi plan joint venture
Tata Tea, India's largest tea company, and Pepsi Co. are planning a joint venture to make non-carbonated, ready-to-drink beverages. The initiative, aimed at health-conscious consumers, would give a significant boost to Tata's international ambitions and help Pepsi diversify into healthier beverage sectors. This comes as the Indian company is planning to broaden its brand portfolio and expand into new product categories and markets. It is in talks with several players, including Pepsi and Coca-Cola for distribution joint ventures on a global scale.
New Leaf Brands reports good results and outlook
The company has announced the successful completion of several business and product development milestones, as well as substantial volume growth in 2009. The iced tea maker sold its wholly-owned subsidiary Nutritional Specialties Inc., thereby reducing its debt to $2.7m, compared with $11m in 2008. Case volumes increased by 38% to 401'000, as the distribution network grew to 100 distributors in 35 states. New Leaf has also recently added a new product line of lemonades in three flavors and one half-and-half flavor. These new products complement its range of 14 ready-to-drink iced teas.
Sweet Leaf acquires Tradewinds Beverage Co.
Sweet Leaf Tea, the Austin-based ready-to-drink iced tea manufacturer, has purchased Tradewinds Beverage Co., a competitor from Cincinnati. Tradewinds, founded in 1993, makes teas and juices kettle-brewed in Ohio, and will continue daily operations as normal until the label is integrated into Sweet Leaf marketing. Sweet Leaf hopes the acquisition will expand market reach in the Midwest where Tradewinds has strong distribution channels. Sweet Leaf, founded in 1998, bottles about 10,000 gallons of tea a day and is distributed in every US state.
Lipton pulls ad amid doubts of brand success in UK
Lipton Ice Tea is scaling back its TV ad campaign in the UK as industry experts question brand's prospects on the market. The TV commercial, featuring global brand ambassador Hugh Jackman, will only be available online, despite running on TV in other countries. According to market specialists, this is due to the fact that Lipton Ice Tea does not make sense culturally in the same way as it does in the US and in other parts of Europe, because tea is consumed hot in the UK. Also, they note that Lipton's consistent marketing support over the past five years has yielded limited impact on the highly competitive UK soft drinks market.
Coffeewiz expands range with Tavalon teas
Coffeewiz, an e-retailer of single-serve coffee and tea, has added Tavalon gourmet loose teas to its range. The online store, based in Moonachie, NJ., will source a wide range of premium loose varieties to complement its lineup of single-serve products in K-cups, Pods and T-discs. This move comes after the introduction of infuser mugs and teapots, allowing easy brewing of loose leaf tea. Tavalon, a New York City based tea company, will supply varieties such as Earl Grey Reserve, NYC Breakfast, Kama Chai Sutra and Jasmine Dream.
Sweet Leaf founder replaced by Nestle
The founder of Sweet Leaf Tea, who started the tea company in 1998, is replaced by the company's current president, a former executive at Nestle Waters North America. Clayton Christofer is stepping down and being replaced by Dan Costello as CEO, who began managing Sweet Leaf's day-to-day operations last year when the unit of Nestle invested $15.6 million in the Austin, Texas-based company (with an option to buy it in the next three years). Christopher will stay on as a member of the Sweet Leaf Tea board of directors. Nestle and private equity firm Catterton Partners are Sweet Leaf's biggest shareholders. Catterton invested $18 million in Sweet Leaf in 2008.
Starbucks enters Chinese tea drinks market
Starbucks has announced the launch of nine ready-to-drink bottled tea beverages aimed at the huge Chinese tea drinks market. The products include three original-leaf Chinese-style tea drinks, four original-leaf foreign tea drinks, and two handmade special tea drinks. Apart from the beverages, Starbucks has also launched related accessory products such as tea cups and teapots. The launch of tea drinks is in response to the demands of local consumers, according to the company. China is the world's biggest tea market, with around 200 million regular tea drinkers.
New Leaf Brands agrees distribution deals in NC
New Leaf Brands, the manufacturer of sweetened ready-to-drink iced teas, has announced three new deals with Anheuser-Busch distributors in North Carolina. RH Barringer, City Beverage Company, and Harris Incorporated of Henderson, all distributors of alcoholic beverages and soft drinks, have begun distributing New Leaf Tea in their respective regions in North Carolina. New Leaf Tea comes in 14 unique flavors and is available in over 8,000 outlets including restaurants, delis, health food stores and other retail establishments.
Tetley to source only sustainable teas by 2016
Tetley, the world's second biggest tea company, has announced plans to source all of its branded tea from Rainforest Alliance certified farms by 2016. The company, owned by Tata Beverage Group, will start supplying sustainable teas in the UK foodservice sector by this April and in Canada by early 2011. The project will be rolled out to the US, Australia and mainland Europe in 2012. Tetley sells black, green, red, flavored and decaffeinated teas, and has a presence in 70 countries. The majority of Tetley tea comes from Kenya, Malawi and North India.
Whole Foods profit and outlook get a boost
Whole Foods Market reported quarterly profits 71% higher from a year ago and boosted its financial targets for 2010. Sales rose 7% to $2.6 billion and net income for the fiscal first quarter was $55.1 million, compared to $32.3 million for the same period last year. The surprising numbers are a result of managing expenses and pushing effective promotions. Identical-store sales, a key barometer of grocer health, rose 2.5% for the quarter. Whole Foods now forecasts annual sales growth of around 10%. 16 new stores are expected to open their doors in 2010.
Bigelow Tea hires Wayne Gretzky as spokesperson
Bigelow Tea Company has enlisted the services of Wayne Gretzky to become the company's spokesperson in the US and Canada. Gretzky, who won 4 NHL championships and multiple other awards, is regarded as the best player in the history of the NHL. According to the company, Gretzky was chosen for the embodiment of sports excellence and wholesome vitality, as a perfect fit with the Bigelow Green Tea "story".
EcoTeas obtain Fair Trade certicifation
EcoTeas, a small organic tea company from Ashland, Oregon, has achieved Fair Trade certification for its entire range. Known for its unsmoked yerba mate products, the company now boasts an accreditation for its entire operations, including rights of workers, environmental management and trade relationships. EcoTeas also uses only organic ingredients, participates in reforestation efforts in Argentina and is on its way to 100% biodegradable / recyclable packaging.
New Leaf Tea expands into Arizona
According to a press release, New Leaf Brands, Inc. will soon be available across Arizona. The company, which manufactures flavored ready-to-drink iced teas, has reached a distribution deal with Crescent Crown Distributing. Crescent Crown sells and delivers over 26 million cases annually throughout their distribution territories in Arizona and Louisiana. Additionally, Quick Trip Convenience Stores will stock New Leaf Teas in all of its 70 Phoenix Metro convenience stores.
Kehe acquires Tree of Life operations in the US
Kehe Food Distributors, the leading distributor of natural and specialty food products in the US, has agreed the purchase its main rival, Tree of Life North America, from Netherlands-based Royal Wessanen for $190 million. The deal will allow Royal Wessanen to reduce its debt and focus on its European business, and will consolidate distribution opportunities for food and beverage companies aiming at the US natural foods channel. The consolidation of Tree of Life into Kehe will also extend Kehe's presence in neighboring Canada.
Newby to strengthen presence in India
Newby Teas, a UK-based premium tea company, plans a further expansion in India's premium tea market. The manufacturer is looking to strengthen its position in the HoReCa sector and aims to enter the retail market thereafter. Newby plans to establish its presence more than twenty Indian cities in the first three years of operations, with Kolkata serving as a base for distribution and logistics. The company is known for its novel methods of tea preservation and quality control during the entire supply process.
Starbucks moves into European RTD coffee market
Starbucks Corporation announced that it will enter the ready-to-drink coffee category in Europe. The coffee giant has signed an agreement with Arla Foods, one of the largest dairy companies in the world, for the manufacture, distribution and marketing of Starbucks-branded premium RTD coffee beverages in Europe. The market is worth approximately $550 million (€368 million). The company hopes to extend the "Starbucks experience" to consumers beyond its retail stores, while broadening global distribution channels.
McLeod Russel buys Uganda tea plantations
McLeod Russel of India, the world's largest tea manufacturer, has acquired a 100% stake in James Finlay's Ugandan tea plantation. Mcleod's subsidiary Borelli Tea Holdings Ltd is picking up the stake for $25 million. The acquired firm is involved in growing, processing and marketing of black tea and owns six tea estates with annual production around 15 million kilograms of black tea. The new acquisition will help McLeod Russel expand its yearly capacity to 96 million kilograms.
Choice Organic enrolls in Non-GMO project
Choice Organic Teas is the first tea company to enroll as an official participant in the Non-GMO Project's Verification Program. The Non-GMO Project is a non-profit organization establishing a consistent non-GMO choice for organic and natural products that are produced without genetic engineering or recombinant DNA technologies. The Project verifies all types of products, including those (like tea) that are not yet produced commercially in GMO form.
Green Mountain seals Diedrich deal
Green Mountain Coffee has secured a deal to buy Diedrich Coffee for $290 million or $35 a share. It also agreed to pay an $8.5 million termination fee to Peet's Coffee & Tea, which had agreed to buy Diedrich before Green Mountain stepped in. Diedrich makes single-serving coffee and tea packets, also known K- Cups, used in Green Mountain's Keurig coffee makers. Diedrich is Green Mountain's third significant acquisition in the last nine months, after Tully's Coffee brand and Canada-based Timothy's Coffees of the World.
New Leaf completes debt financing deal
New Leaf Brands, makers of ready-to-drink iced teas, has announced the completion of a $1.5 million private debt financing. The financing will be used for working capital and inventory to meet New Leaf's existing product demand in 2010 and execute on its plans for expansion. According to the company's CEO, the deal will help meet all existing orders and expand its footprint nationally by growing the distribution network.
Bigelow Tea expands online presence
Following similar moves from its competitors, Bigelow Tea is expanding its online presence with a revamped web platform. It features a redesigned website and a blog, which is meant to keep customers up-to-date on company's latest developments. Bigelow Tea is also increasing the use of social networking sites such as Facebook and Twitter, aiming to boost contact points with its customers. Several short "Tea-V" videos on tea preparation and enjoyment will be featured on Youtube.
NYC's top restaurant targets children with tea
Looking for new ways to attract customers, a New York restaurant started catering to a new clientele: kids. The Russian Tea Room, a high-end establishment with more than 80 years of history, offers tea and snack menus for children in order to attract visitors that have been neglected during better economic times. The goal is to make the lavish venue less pretentious and more welcoming to the average consumer. The city's fine dining establishments suffered a nearly 5% decline, with 30 closing in the past year.
Honest Tea to stay honest despite Coke's stake
The CEO of Honest Tea, Seth Goldman, assured attendees of 2009 Net Impact Conference that the company's commitment to produce healthy, organic and less sweet drinks has not changed since Coca-Cola became a majority stakeholder in his company last year. Some clients were put off by this partnership, including New York University, who had banned all Coke-related drinks to protest the company’s human rights record. Goldman pointed out that the deal allowed a healthy product to be made available to more customers.
Tea company creates range inspired by fashion
The Wellness Group Tea, a Singapore-based tea company which opened last year, is creating a line of teas inspired by fashion trends worldwide. The luxury tea range integrates colors and trends of fashion lines into tea blends. The concept was developed by the company's chairman, who previously worked as a brand-building executive at US designer label Tommy Hilfiger. TWG Tea is already working on its autumn/winter 2010 "collection". It will be available at luxury stores like Harrods in London and Dean and Deluca in the US.
Twinings to shed several hundred jobs
Twinings, the famous British tea company, is planning to move a large part of its domestic operations to Poland and China. The company, owned by Associated British Foods, is consulting employees over plans to reorganize its tea operations, with up to 400 employees, or half of its UK staff, predicted to lose jobs. Under the plan, the company's existing Chinese factory would be doubled in size and a new factory would be built in Poland, to cater for the growing taste for tea in continental Europe.
New Leaf Tea poised for expansion at Whole Foods
New Leaf Brands, Inc., a company selling ready-to-drink iced teas, is expanding its distribution into Whole Foods Market in the Northeast and Mid-Atlantic regions of the US. The beverage line, containing only natural ingredients, will be available in additional 22 stores. According to New Leaf's demo manager, the target audience at Whole Foods fits the niche of people looking for something sweeter without having to choose something with high fructose corn syrup.
Tea room steeped in international activism opens
A tea room in Fort Collins, Co. opens with an aim to support international activism and social awareness while enjoying a nice cuppa. Happy Lucky's Teahouse and Treasures, which serves almost a hundred varieties of loose-leaf tea, is selling a range of Cambodian-made merchandise such as bags, scarves and purses. The tea room is also donating 10% of its sales to a charitable organization founded by its owners and focused on creating and sustaining schools in Cambodia.
Honest Tea hires Coke exec to head distribution
Honest Tea announced the hiring of a Coca-Cola executive to expand its distribution. The Bethesda-based company, part-owned by Coca-Cola, will tap the experience of Chuck Muth, a 30-year veteran of the bottling industry, who most recently worked as senior vice president of sales and marketing for the Philadelphia Coca-Cola Bottling Co. Coca-Cola bought a 40% stake in the company for $43m in 2008. Honest Tea is on track to make $50 million in sales this year, up from $38 million the year before.
Coca-Cola tests tea brewer for restaurants
Coca-Cola, the world’s largest soft-drink maker, is testing a machine for restaurants that can brew more than 18 different kinds of iced tea. The device, called the Flex Fresh, can make tea by the glass, pitcher or gallon, with a possibility to add sweeteners and flavors. The move is aimed at boosting sales volume by offering more variety, as Coca-Cola continues to trail PepsiCo on the ready-to-drink tea market. PepsiCo has 39 percent of the ready-to-drink tea market in the US, compared to Coke's 9.6%.
Lipton plant completely avoids landfill waste
After a two-year effort, Lipton's tea plant in Suffolk, Virginia has been announced as "zero landfill". The plant, which produces tea bags and other products, recycles 70% of the waste, with the remainder being composted or converted into renewable energy. Initiatives include eliminating plastic strapping on pallets, replacing non-recyclable cleaning wipes with reusable rags and using reusable plastic pallets instead of wooden ones. Suffolk's plant, Lipton's only plant in the U.S., is the largest plant in the country.
UK tea room offers teas from 5 continents
One of Britain’s award-winning tearooms is claiming to be the first tearoom to offer teas from five continents. Peacocks, owned and run by George Peacock and Rachel Lemkov, has been operating for five years in Ely, Cambridgeshire, and has won several awards from the UK's Tea Guild. In 2007, it was named Tea Guild's Top Tea Place. The menu contains 66 teas from around the world, including varieties from Brazil and Australia.
Celestial Seasonings celebrates 40th anniversary
Celestial Seasonings celebrated its 40th anniversary this week at its headquarters in Boulder, Colorado. Over the years, the company, specialized in teas, herbs and coffee, and focused on social responsibility and sustainability, has grown from a small supplier of herbs to a major player in the tea business, with sales over $100 million worldwide. Celestial Seasonings' products are currently sold in 60 countries and ingredients are sourced from over 35 countries.
McLeod Russel buys Rwandan tea factory
McLeod Russel, the world's largest tea producer, has purchased a controlling stake in Gisovu Tea Company via its UK arm. The Rwandan tea company has an annual output of 1.7 million kilograms of tea, which would bring McLeod’s annual production capacity close to 82 million kg. Borelli Tea Holdings Ltd, a wholly-owned subsidiary of McLeod Russel in the UK, will pay $2.75 million for a 60% stake in the company, with the rest of the shares owned by the Rwandan government and local co-operatives.
PepsiCo buys bottlers to consolidate business
In a move to cut costs and boost profits, PepsiCo agreed to buy bottlers Pepsi Bottling Group and PepsiAmericas in a $7.8 billion (EUR 5.4 bn/£4.6 bn) deal. The second-largest soft drink maker in the U.S. will pay a premium of about 45% to the bottlers' closing prices the day before Pepsi launched unsolicited bids in April. Buying the bottlers will consolidate 80% of Pepsi's North American beverage volume, which will speed decision-making and eliminate friction between the companies.
McLeod Russel looking for acquisitions in Africa
The world's largest tea producer, India's McLeod Russel, has set its sight on African tea plantations, according to a company official. The company, which produces approximately 80 million kilograms of tea annually and exports around 30 million kilograms, is focusing primarily on Kenya and hopes the acquisitions can add 5 to 10 million kilograms in the near future. McLeod Russel plans to source between 20 and 30 percent of its production from outside India in the next five years.
Starbucks tests new coffee and tea store concept
Starbucks, owner of Tazo Tea, is experimenting with a new store concept in its home town of Seattle. One of the stores will reopen under the name "15th Avenue Coffee and Tea", featuring live music performances and poetry readings to give the premises a more local and grassroots touch. Also, beverage menu will be enlarged to include alcoholic drinks such as beer and wine. This comes as a response to customers reigning in spending during the recession and rival businesses upgrading their coffee menus.
Lipton tops buyers' list in Kenya's auction
Lipton has been confirmed as the biggest buyer of tea during the first half of the year at weekly auctions held in Mombasa, Kenya. The company, owned by anglo-dutch conglomerate Unilever, bought 32 million kilograms of tea in that period, according to the founding brokerage firm of the auction. The amount represents a fifth of all tea sold in Mumbasa. Global Tea Commodities Ltd. came in distant second with 14 million kg, followed by James Finlay Ltd. with 13.5 million kg. Kenya is the world’s biggest exporter of black tea.
Top Irish hotel cuts price of afternoon tea
The price of afternoon tea at Dublin's exclusive Gresham hotel has been cut by nearly 30% due to a decrease in customer spending. The tea, served with a three-tier cake, will be available for €18 ($25), instead of the previous price of €25. This comes in stark contrast to Britain, where prices for such treats remain high due to a comeback of this typically British pastime, with one in ten Britons planning to succumb to the pleasures of afternoon tea.
Lipton to highlight its sustainability practices
Lipton has teamed up with National Geographic to accentuate its sustainability efforts during the launch of its Rainforest Alliance-certified teas in the US. National Geographic will create photographs and videos documenting the company's journey and commitment to sustainability. The material will feature images from Lipton's Tea Estate in Kericho, Kenya and will be distributed via multiple National Geographic media platforms.
Narien Teas debuts premium Hawaian tea
Narien Teas introduces Hawaii-grown tea and thereby becomes the first US mainland tea retailer to offer tea from the exotic island. The Florida-based company started selling Kilinoe, or "misty rain", green tea sourced from Hawaii's Big Island Tea. The company believes that Hawaii's fertile volcanic soil, wafting mists and unique island weather patterns make it an ideal spot for tea farming. The price for spring-harvest tea will start at $9 for five grams.
Brazil approves Coke's acquisition of Matte Leao
The Brazilian Justice Ministry approved the acquisition of local bottled-tea maker Leao Junior by US beverage giant Coca-Cola. However, to avoid market concentration, Coke must sell its local Nestea brand for the deal to go through. Matte Leao is Brazil's leading maker of bottled teas. At the end of 2006, the latest data available, Matte Leao held a 45.7% share of the bottled-tea market, compared with AmBev-distributed Lipton, at 24.7%, and Nestea at 24.4%.
Tata Tea's latest net profit in free fall
India's Tata Tea has reported a staggering 55 percent fall in consolidated net profit for 2008-2009 period. Net profit came in at Rs. 700.55 crore ($148m) for the year ending March 31, 2009 against Rs. 1,542.55 crore in the previous year. A sharp rise in input costs and fluctuations in the commodity and currency markets have negatively impacted the results, according to the company.
Numi aims to offset emissions in 2009
Numi Tea has recently partnered with Big Tree Climate Fund to offset its carbon footprint. The partnership is based on a twofold offsetting program, which includes purchasing renewable energy certificates and carbon offsets. The Oakland-based company underwent an annual emissions audit through calculations of carbon output in electricity and natural gas usage, employee air travel, use of company car, pounds of landfill use and overall shipping for 2008. Big Tree will then source and supply the equivalent amount of carbon offsets and renewable energy certificates.
Ito En operating profit set to fall sharply
Ito En, the Japanese beverage manufacturer, is expected to announce a 46% drop in consolidated operating profit to about 10.3 billion yen ($108.7 million) for the fiscal year ending in April 30. Causes for the unexpected fall include higher materials costs, concerns about produce grown in China and weak consumer spending, which forced the company to sell more products at discounted rates. Overall sales are expected to remain unchanged at 328 billion yen ($3.45 billion) even though the firm had anticipated a 3 percent increase.
Coca-Cola cool on Huiyuan takeover
Coca-Cola, the world's largest beverage maker, is said to abandon its bid for Chinese Huiyuan Juice Group, after a full $2.5 billion (£1.65 bn) takeover was blocked by Chinese regulators. The Atlanta-based US company was set to take a compromise minority shareholding, but sources now say that Coke wants complete control of the company or no involvement at all. Huiyuan Juice has a 44 percent share of China's pure juice market.
Honest Tea adopts new lightweight packaging
Honest Tea will be the first company to use a new lightweight bottle in the hot-fill category, developed by Graham Packaging Company. The new packs are on average 20% lighter than similar PET bottles on the market today, which means they necessitate less resources to make the bottle and fewer energy to transport it. While the bottle initially will be used for teas, juices, and isotonic drinks, it is also suitable for jellies, jams, and salsas.
Peet's original shop reopens its doors
The founding site of Peet's Coffee and Tea Company has reopened after renovation. The Vine Street shop was opened in 1966 by Alfred Peet in North Berkeley, bringing the aroma of coffee beans he roasted himself to the neighborhood. The renovations were focused on a new room dedicated to the nationwide chain, with antique coffee roaster, tasting supplies, ledgers and original Peet's coffee bags on display.
Bigelow Tea teams up with Van Houtte for K-Cups
Bigelow Tea has partnered with Van Houtte, a Canadian gourmet coffee maker, to develop the US K-Cup market. A K-Cup is a plastic container with a filter inside, allowing a brewing machine to force hot water through it into a mug. For Bigelow, the business has expanded at a 45% annual rate since its beginnings four years ago. The Bigelow K-Cups include English Breakfast, Green Tea, Earl Grey, Cozy Chamomile, Mint Medley, and Green Tea with Pomegranate varieties.
Coca-Cola buys stake in Innocent Drinks
Innocent Drinks, the UK-based smoothie drinks company, has sold a minority stake to the Coca-Cola Company for £30m ($44m). Under the terms of the deal, the beverage giant will receive 10 to 20 percent stake in the ethically-minded smoothie company founded in 1998 by four mates after a successful try-out at a music festival with £500 worth of fruit. Innocent Drinks, which operates in 13 European countries and had a turnover of £100m ($145m) last year, will use the funds to bolster its presence across key European markets.
Sweet Leaf Tea gets Nestle cash infusion
Nestle Waters North America, a subsidiary of Swiss food giant Nestle, has invested $15.6 million in Sweet Leaf Tea Co. with an option to buy the entire company in three years. The funding should help Austin-based Sweet Leaf expand its distribution nationwide within the next two years. Sales of ready-to-drink teas have slowed in the recession, although the category has held up better than sodas, rising 1.3% in 2008, after double-digit growth in previous years. Sweet Leaf Tea was founded in 1998 and today carries a line of 10 classic iced-tea flavors and one lemonade flavor.
Tata Tea in major beverage unit consolidation
Tata Tea, part of Tata group, is reportedly planning to consolidate its vast beverage business under a single entity to enhance operational performance and reduce costs. Tea, water and soft drink units would likely be housed by Tata International, resulting in a clear holding, operating and reporting structure. The group is also looking at merging Mt Everest Mineral Water and Himalayan brands with Tata Tea. Financial experts believe that a single consolidated entity could also be used to raise money for future expansion needs and to reduce the group’s debt.
Coca-Cola acquires Bazza tea beverage brand
Beverages and Beyond Brands Inc., a subsidiary of Coca-Cola Bottling Co., has recently bought Bazza High-Energy Tea brand, a company specializing in new and alternative beverages, from Louisville-based Cooper Tea Company. Bazza High-Energy Tea is a blend of green tea, guarana and yerba mate, containing a high concentration of epigallocatechin gallate, or EGCG, antioxidants. The deal gives Beverages and Beyond the rights to North American, Mexican, Canadian and Caribbean markets.
Gong Fu Tea featured in the Oscars
Gong Fu Tea, a Des Moines, Iowa-based tea shop, was among the very few companies selected to supply gifts to Hollywood's elite at this year's Oscar pre-party. The tea samplers, included with other five products, were given to every guest at a fundraiser for research on cancer and Alzheimer's disease, which included many A-list celebrities. The party planners in Hollywood found the shop online using Google and contacted them directly to see if they'd be interested in contributing to the gift bags.
Whole Foods shares surge after upgrade
The share price of Whole Foods Market, America's largest premium grocery chain, rose 37% on Thursday after two upgrades from analysts assessing its earnings report. The Austin, Texas-based company reported a better-than-expected 17% decline in first quarter income due to slowing store traffic. Yet analysts were encouraged by more value offerings and many internal expenditure cuts to reverse the decline in its operating performance. Sales for the 16 weeks up to January 18 were unchanged at $2.5 billion.
Restaurant launches Prêt-à-Portea for NY Fashion Week
BG restaurant at Bergdorf Goodman in New York City is looking to add a little flair to its tea menu during the New York Fashion Week. From 13 to 20 February, the restaurant, located on the top floor of the Fifth Avenue luxury store, will launch its version of Prêt-à-Portea, an afternoon tea originally conceived by the Berkeley Hotel in London. The restaurant will serve cookies, petits fours and layered desserts based on the creations of various fashion designers, available for sale in the store below.
Tata undertakes major restructuring in the US
Tata Tea has started a huge restructuring plan of its US operations to scale down costs and grow revenues in a challenging environment. The company has shut down Tetley's office in Shelton, Connecticut, and is also in process of relocating the administrative, marketing and sales offices of Good Earth Corp, a specialty tea company it purchased in 2005. Tata thereby hopes to take full advantage of economies of scale from a join venture with Harris Tea Company, the largest blender and packer of private label teas in North America.
Makeover for Clipper tea after a decade
Clipper tea has come out with a re-branded look after nearly a decade. The company that pioneered organic and Fairtrade teas in the UK hopes to highlight its commitment to great tasting tea through a clearer and more attractive packaging. Before introducing the new look, Clipper included over one million inserts in its tea range to give consumers a sneak preview of the new design. Clipper is the UK's biggest Organic tea brand, and the number one selling Fairtrade tea brand. It also has the second largest share of the Green Tea market.
Lancashire Tea struggles for survival
The company behind Lancashire Tea says the future of the brand is under threat after it was removed from most Sainsbury's stores - one of the biggest supermarket chains in the UK. Sainsbury's reduced the company's exposure to 33 stores compared with more than 300 previously. Lancashire Tea, which has lost money since it was founded three years ago, could face collapse within 12 weeks unless sales rise. The founders plan a "save Lancashire Tea campaign" and hope local people will help save the brand.
Advocacy group sues Coke over VitaminWater claims
The Center for Science in the Public Interest, a nutrition advocacy group based in Washington, DC., has sued Coca-Cola over "deceptive" health claims relating to VitaminWater drinks. It accuses Coke of selling sugar water using false claims about vitamin content that is supposed to boost immunity and reduce the risk of disease. Coca-Cola spokesperson has dismissed the lawsuit as "ridiculous and ludicrous". Coca-Cola bought Glaceau's VitaminWater for $4.1 billion in June 2007.
Drinkers opt for cheaper alternatives - Twinings
Twinings, one of UK's top tea brands, has reported that sales of premium teas have fallen in face of the current economic slowdown. The company, which has been around for more than 300 years, says that tea drinkers in the UK and the US were more likely to choose "everyday" tea instead of more expensive brands. Responding to this trend, Twinings will expand its offer of low priced teas as UK's major supermarket chains launch their own budget ranges.
Mighty Leaf partners with James Beard Foundation
Mighty Leaf Tea has announced that it is teaming up with James Beard Foundation as the official tea supplier. James Beard Foundation, a nonprofit organization based in New York City and dedicated to preserving and promoting American food heritage, will use Mighty Leaf teas for their chefs' cooking. The donations are part of the recently launched Mighty Leaf Tea Foundation aimed at supporting artisans in their communities.
Starbucks opts for more tea-based drinks
In an attempt to widen its offer of healthy beverages, Starbucks is launching three new tea-based lattes and two tea drinks. The new lattes are made with steamed milk and Tazo full-leaf tea bags, whereas Tazo Tea Infusions will feature a mix of black tea and fruit juice. The latte drinks cost between $2.85 and $3.50 for a tall. The infusions will be priced at $2.40 to $2.70 for the same size.
Aiya receives ISO 22000 certification
Aiya Co. Ltd., the world's leading manufacturer of Matcha green tea, has earned the respected ISO 22000 certification for food safety management. The accreditation, issued by International Organization of Standardization, guarantees a high level of food safety practices in the entire manufacturing chain, thereby providing a seal of quality to buyers and retailers. Aiya is the first in the Matcha industry to receive such certification.
Whittard close to administration
Whittard of Chelsea, a British chain of tea shops, is near administration according to latest reports. The owners of the business, which sells tea, coffee and accessories, are actively seeking a buyer, while accounting firm Ernst & Young are already on standby as administrators. Whittard is owned by an Icelandic investment company Baugur and was purchased in 2005 for about £21m ($31.8m). Baugur was hit by turmoil in Iceland's economy earlier this year. Whittard, founded in 1886 by Walter Whittard, has 130 stores in the UK.
PepsiCo: no new acquisitions in drinks sector
The CEO of PepsiCo, the second largest soft drink manufacturer in the US, has revealed that the company plans no new acquisitions in the current economic climate, despite sales of carbonated soft drinks falling three percent in North America. Instead, the New York-based PepsiCo will focus on acquisitions in the growing snacks sector. Before the economic slump, the company purchased beverage companies Izze, Naked Juice and a major juice maker in Russia. It also owns Tropicana, SoBe LifeWater and Gatorade brands.
Honest Tea sees robust growth ahead
After growing only 19 percent in November, the North American sales of Honest Tea beverages should pick up in December, according to CEO Seth Goldman. Goldman, who co-founded the start-up beverage company, expects sales growth to climb to 85 percent in December - giving the Bethesda, Maryland-based company annual sales growth of roughly 70 percent. Honest Tea expects gross revenue to amount to $39 million in 2008, compared with $23 million the previous year. The company, partly owned by The Coca-Cola Company, projects to double sales in 2009 to about $80 million.
Lancashire Tea puts packaging up for vote
In a novel approach to determining the next packaging design of their products, the UK-based Lancashire Tea has decided to let its customers decide what they should look like. The Rehab Agency, a local design firm in charge of the project, has asked Facebook users to vote for their favorite packaging from three possible concepts or to retain the old design. The new design options include a brightly-colored range of Lancashire faces, a postcard montage and black-and-white photos of old-fashioned scenes such as women in bathing suits. The original packaging carries a map of the region.
Ito En shares slide after latest profit decline
The shares of Ito En Ltd. dropped the most in three months in Tokyo after reports of a profit decline. Japan's largest maker of green tea beverages lost 103 yen, or 6.7 percent, and closed at 1426 yen due to declining operating profit from higher promotion costs and sluggish sales of vegetable and green tea beverages. At the same time, Goldman Sachs lowered its rating on the company from "neutral" to "sell" with a price target of 1000 yen.
Sara Lee bolsters Hungary plant
The Hungarian branch of Sara Lee Corporation has announced plans to invest over €4 million ($5.7 million) in its local production facilities. The investment concerns the Rákospalota plant, company's second-biggest tea packaging unit in Europe, and will be used to modernize tea production lines in order to make them suitable for applying new packaging techniques. According to AC Nielsen data, Sara Lee Hungary has become the market leader in the national coffee and tea segments with 41% and 43% market shares respectively.
Ito En shares fall as profit plunges
The shares of Ito En Ltd., Japans largest manufacturer of green tea beverages, fell as much as 16 percent in Tokyo after a severe dip in company's profits. The shares lost 273 yen ($2.52) after the company reported a net income of 1.08 billion yen - a drop of 59 percent - for the three months ending on July 31. It cited higher costs for promotions and plastic bottles, as well as slowing sales of vegetable drinks. The stock has declined 33 percent in 2008, compared with a 19 percent drop in the benchmark Topix index in the same period.
Tata Tea looking for expansion abroad
India's Tata Tea has announced at the company's annual general meeting that it is looking for strategic mergers and acquisitions in the US and Russia to strengthen its presence abroad and access new customer segments. Tata Tea, which owns 42 brands in 45 countries, has acknowledged its transformation from a plantation to a global beverage company and stated plans to further expand into FMCG markets such as juice manufacturing, as well as a possible name change to better reflect the current complexion of the company. Tata Tea, owned by Tata Group, is the world's second largest manufacturer and distributor of tea.
Coca Cola to start distributing Honest Tea
Following the acquisition of a forty percent stake in Honest Tea last February, Coca-Cola Enterprises will start distributing Honest Tea and Honest Aid drinks in parts of western US in late September. Atlanta-based soft drink giant plans to carry the complete range of organic teas and fruit juices in pilot markets such as Norther California, Arizona and Las Vegas. Coca-Cola hopes Honest Tea will strengthen its portfolio in the rapidly growing organic beverage business and help challenge its archrival Pepsi Co., whose Lipton brand leads the ready-to-drink tea category in the US.
Revolution partners with Kraft in foodservice
Revolution Teas is teaming up with Kraft Foodservice for national distribution in the foodservice channel. Kraft's catering arm will distribute Revolution's premium iced tea beverages and individually-packaged teas in restaurants, hotels and other eating establishments starting in May. The two companies note increased demand for high-quality tea and hope to replicate growth patterns of other premium beverages like coffee.
Numi gets backing from TBL Capital
TBL Capital is injecting $1.8 million into Numi Tea with its sights on expanding the premium tea company's operations across the board. The capital venture fund that invests in socially responsible companies says the resources are intended to support penetration into new markets, drive new product development and increase firm's marketing activity. TBL Capital's move is the latest in a series of bids by investor groups and large companies to capitalize on health- and sustainability-promise driven brands that continue to fuel growth in the natural drink sector.
Sweet Leaf Tea gets $18 million
Sweet Leaf Tea, maker of ready-to-drink iced teas and lemonades, has announced a huge $18 million capital injection from Catterton Partners, a private equity firm. The company from Beaumont, TX plans to use the investment to increase its marketing and distribution efforts across the US, thereby gaining greater exposure in a market worth $2.8 billion and growing at a whopping 25% annual rate. The sales of Sweet Leaf Tea have nearly doubled every year for the past five years and the company hopes the latest move will solidify its position in what is expected to become a $4.4 billion industry by 2011.
Two retire from Peet’s board
Peet’s Coffee & Tea, Inc. has announced the retirement of two of its long-time board members, Gordon Bowker and H. William Jesse, Jr., who have served the specialty coffee and tea company from Emeryville, CA for 25 and 10 years respectively.
Coca-Cola looking for Honest Tea
Coca-Cola is close to investing in Honest Tea - the up-and-coming healthy drink maker. With sales of $13.5 million last year, the company from Bethesda, MD is the soft drink giant’s latest target in search of diversification into the growing non-carbonated beverage industry. The appeal of Honest Tea lies in its comprehensive range of products that includes tea drinks and juices, as well as a line low-sugar thirst quenchers aimed at children - all of them certified organic and Fair Trade. The acquisition would give the company, in its 10th year of existence, strategic access to the mainstream market, whereas Coca-Cola would gain exposure to the booming ready-to-drink tea and coffee category with an estimated 28% annual growth.
Neville Isdell, CEO of Coca-Cola, identified tea as a “priority area” in context of lagging soft drink sales, indicating that the company is looking for acquisitions to bolster its offer of drinks oriented towards health-conscious consumers.
Mighty Leaf gets equity investment funding
Mighty Leaf Tea, producer of premium gourmet tea, has received an equity investment from VMG Partners, a private equity firm specializing in building branded consumer products companies, for a reported 20% stake in the company. The tea manufacturer from San Rafael, CA offers a wide range of artisan teas distributed primarily through specialty retailers, restaurants and hotels. VMG hopes that improved demand in premium products and increased awareness of tea’s health benefits will drive future growth in this niche sector.
Tata Tea may acquire Arizona Beverages for $2bn
Honest Tea gets cash huge infusion
Coca-Cola to acquire Energy Brands for $4.1 bn
Wahaha launches new tea drink without Danone
China’s largest drink maker Wahaha Group has announced the launch of a new soft drink, to hit stores by July, without the participation of Danone Group. Wahaha wants Danone, that didn’t take part in the project, to be “expelled” from the brand. The French giant has accused the Chinese side of undermining joint-ventures by selling Wahaha products in competing companies.
Celestial Seasonings brews up a new look
Unilever to sell only environmentally friendly tea
Tata Tea agrees to a 30% stake in Energy Brands
America’s only tea plantation reopens
Apeejay brings Typhoo back to India
India's Tata Tea buys Good Earth
Mighty Leaf is 143 on Inc. 500
Coffee Bean & Tea Leaf Brews in Dubai
Stash Tea Dabbles in Bricks and Mortar
Starbucks Lures Brits from Tea to Coffee
Bigelow Tea Serves Up A Promotional Cup of 'Joe'
Bigelow Tea (Fairfield, Connecticut) has signed New York Yankees manager Joe Torre to tout its green tea in print and radio ads. Print ads feature Torre sitting in New York's Central Park, sipping the tea. Headline: "Look Who's Drinking Bigelow Green Tea Now." The new campaign breaks this week in The New York Times, The Wall Street Journal, as well as various sports-oriented magazines.
Organic, Fair Trade, Iced Tea Program Launched
Dallas, Texas based Tempest Tea has launched a line of premium quality iced organic, fair trade certified iced teas come in black, green, white, and decaf varieties. Each blend is specially formulated for iced tea using only organically grown leaves, fruits and flavorings, and all are delicious and healthy. The new iced tea flavors include Black Ginger Peach, Decaf Mango, Green Tropical, and Green Berry Jasmine.
Cruise Line Offers Passengers Selection of Rare Teas
Seabourn Cruise Line has introduced a family of rare estate teas gathered from around the world. Known as the "Seabourn to a Tea" menu, the selection features exotic teas, freshly loose-brewed to order, and served to guests during daily afternoon tea service. The loose teas are presented in glass vials and in a wooden tea chest, allowing guests to contemplate tea aromas before selecting one to be brewed. A printed menu details other tea components and ingredients of each brew, including caffeine content, antioxidants, vitamins and other elements.
India Tea Giant US Acquisition Not Confirmed
Although Indian tea giant Tata Tea is rumored to have concluded its negotiations to acquire the US specialty tea brand Good Earth, company executives with both companies have not yet confirmed that a deal has been solidified or a purchase actually gone through. Tata Tea is one of the largest tea companies operating globally and competes with mega-brands internationally. Should Tata successfully acquire one or more major specialty tea brands in the United States it will help jump-start the company in its efforts to leverage the company into the fastest growing specialty tea market.
Britannia Industries Planning Bid for Typhoo
Britannia Industries, a large British food and beverage company is reportedly preparing a bid to acquire Premier Foods Typhoo tea brand, the UK's third-largest tea brand. Should Britannia be successful in its acquisition attempt, it will follow in the footsteps of Tata Tea Ltd., which bought UK's Tetley for $432 million in 2000, becoming the world's second-biggest branded tea firm.
OM Organics Wins Award at Natural Products Show
At the recent Natural Products Expo East trade show, OM Organics was honored with a 2005 Socially Responsible Business Award. Based in Boulder, Colorado, OM Organics is the exclusive North American distribution and marketing company for Organic India.
The awards are presented to companies or individuals that have demonstrated excellence in nine categories of values derived from the Social Venture Network’s Standards of Corporate Responsibility. The award recognizes the Organic India and OM Organics organization as a leader in the global movement to promote organic farming and improve the economic and social outlook for small family farmers and their communities.
East India Tea Merges with German Company
East Indies Tea Co. has reportedly merged with German-based tea importer and blender Florapharm GmbH. According to an article in Gourmet News, groundwork for the merger began brewing at the first World Tea Expo in 2003. Both companies offer loose-leaf, bulk teas and also craft proprietary blends upon request. East Indies Tea was previously known as East Indies Coffee & Tea. East Indies Coffee Co., also does small-batch coffee roasting, and remains a separate entity based in Lebanon, Pennsylvania.
Green Tea Fuels Starbucks Growth
Starbucks Corp., noting a solid boost in its new green tea line and food-program enhancements, reported 7% growth in August same-store sales. The coffee-retailing giant said total sales for the four weeks ended Aug. 28 rose 21% to $508 million from $418 million a year earlier. For the 47 weeks of the fiscal year to date, Starbucks' same-store sales rose 8%. Total sales increased 22% to $5.7 billion from $4.7 billion for the same period in fiscal 2004.
Tata Close to Acquiring Two Tea Brands
Corporate conglomerate Tata Tea is close to acquiring two brands in North America in the range of $100 million each. Sources close to the development said the company has shortened their candidate list to a number of brands in the beverage industry, including flavored and herbal tea, with two deals reportedly very close. If closed, the takeovers would be part of the company’s broad acquisition plan, eventually costing as much as $1 billion, surpassing its $475 million acquisition of Tetley five years ago.
Nestea Offers Colder Taste
Nestea, a subsidiary of the Coca-Cola Company, has rolled out a new product that contains an ingredient that delivers a colder taste than conventional soft drinks. The manufacturer claims that the beverage "refreshes from the inside out" and is targeted at younger consumers. The novel products are available in the US in two flavors, lemon green tea and lime. In Europe, Unilever Bestfoods has introduced a range of herbal teas in France spiced up with exotic flavors including licorice, orange peel and wild rose in the Maroc variety, mango in the Indes blend, and mocha in the Mexique offering.
Premium Tea Pods from Lipton
Lipton is introducing Premium Tea Pods, a new line of teas specially formulated for the Home Café single-cup brewing system. The new system purports to deliver a single cup of gourmet tea in less than a minute. The new pods are available in four flavors: English Estate, Vanilla Hazelnut, Raspberry Truffle and Citrus Blossom Green Tea.
Dimlah Tea Well Steeped in Australian Market
Merrill J. Fernando's, founder of leading Sri Lankan tea brand Dimlah Tea, is enjoying success in many international markets, especially Australia. Reportedly the brand imported $35 million worth of tea last year into the Australian market, thereby ranking it third in size only behind Lipton and Twinings. Dimlah proactively promotes not only the brand, but Ceylon teas and corporate social responsibility, including recent donations to the Tsunami relief efforts.
New Technology for Decaffeinating Tea & Coffee
Dubai Tea Trade Centre Eschews Tradition
The Dubai Tea Trade Centre defies traditional business practices according to an article in the Dubai-based Gulf News. The article pointed out that the Dubai Tea Trade Centre challenges more traditional ways of conducting business, seeking to replace it with a more efficient model. While the tea trade has been conducted through auctions for decades, the center seeks to get buyer and seller together on the same platform, rather than try to set prices or take part in the negotiations.
Standardized Tea Extract GRAS Status Confirmed
TEAVIGO, a green tea extract from DSM Nutritional Products, has achieved GRAS (Generally Recognized As Safe) affirmation, enabling food and beverage manufacturers to expand the use of the ingredient in their product development offerings. DSM reports their green tea extract is nearly colorless, odorless and caffeine-free.
Tata To Grow Through Acquisitions
India’s super-conglomerate Tata Tea Ltd., which purchased London-based Tetley Group for $475 million a few years ago, may be scouting for additional acquisitions. With the global demand for black teas relatively soft, speculation is that Tata may be seeking to expand its market presence into specialty herbal, fruit and other novel tea markets. Market researchers report that the demand for specialty teas within the UK and USA are booming compared to conventional tea offerings. The profit margins for specialty teas are also reportedly luring Tetely Group into assessment of new tea markets and potential, tea-related acquisitions.
Republic of Tea Doubles the Antioxidants
The Republic of Tea and POM Wonderful have teamed up to create a unique Pomegranate flavored green tea. It’s a blend of all natural POM WONDERFUL Pomegranate juice and green tea from China. Recent studies show both green tea and pomegranates to be robust in some of nature's most effective antioxidants known as polyphenols. A tin of 50 bags retails for $9.
Green Tea Beverages at Starbucks
Starbucks Coffee Company has begun offering an assortment of new green tea-based beverages made with Tazo green teas. The line-up includes the new Tazo Green Tea Frappuccino blended creme, made with real matcha tea, in addtition to Tazo Shaken Green Iced Tea and Tazo Shaken Green Tea Lemonade. All three beverages will be available at Starbucks stores in the United States and Canada through September 30, 2005.
Coca Cola In Talks with Arizona Teas
Beverage maker Arizona, whose products include Raspberry Tea, Diet Green Tea and Botanical Red Tea, may soon be part of Coca-Cola's lineup. The Atlanta-based company is looking for products that may appeal to health-conscious consumers. Possibilities include an outright acquisition or a distribution deal, though both would be complicated by an existing partnership that Coke has with Nestlé to jointly sell tea products.
Typhoo Tea Up For Sale
Premier Foods has put its Typhoo unit tea up for sale for up to 100 million pounds. The company is understood to be unhappy with the performance of the business. Premier acquired Typhoo, a brand that is more than 100 years old, when it bought the tea and foods operations of Cadbury Schweppes in 1986. Typhoo is the third-biggest brand in the UK tea market after Unilever's (PG Tips and Tata Tea's Tetley tea.
Jay Shree Acquires 2 Estates
B K Birla flagship company Jay Shree Tea and Industries Ltd is planning to acquire Singoli and Balasan tea estates in Darjeeling. Annual capacity of the two estates is 4,75,000 tons, bringing Jay Shree Tea’s total capacity in Darjeeling to over 20 million tons.
UK Tea Shop Making Waves
UK-based Tea Palace, touted as ‘the UK's first specialist tea emporium’, recently opened in Notting Hill, West London. The new shop and café offers 150 varieties of tea served in fine china by specially trained "tea masters." The Tea Palace also claims to have the widest selection of green teas in the country, and teas are rated for their caffeine content.
Fair Trade Rooibos From Choice Organic
Choice Organic Teas, a brand of Granum, Inc. (Seattle, Washington), has announced that all of their Rooibos offerings will be certified organic and Fair Trade Certified™ as of August 2005. Choice Organic Teas offers plain Rooibos and Rooibos with Vanilla, available in loose leaf, 16-teabag and 20-teabag boxes.
Lipton's New Antioxidant Mark
Third Street Chai
Third Street Chai based in Boulder, Colorado has added Fair Trade Certification to its product line, in addition to using certified organic and kosher ingredients. The company notes its full line of liquid tea chai concentrates, including Chai Tea, Green Tea, Rooibos and Yerba Maté, is now Certified Fair Trade™.