Middle East moving away from Ceylon Tea
According to the founder of Dilmah Tea, Middle East markets are moving away from Sri Lankan tea and prefer heavily promoted and cheaper international brand names. Mr Fernando, who turned Sri Lanka's tea industry upside down from a traditional bulk tea exporter to a growing value-added seller, is concerned about weak marketing efforts of the country’s traditional export. He argues that Sri Lanka should not follow market leaders with blended tea and CTC manufactured tea, but to re-launch traditional grades of Pure Ceylon tea and market them strongly. Exports to Saudi Arabia, a prolific consumer of Ceylon tea previously, have declined from 11.4 million kilos in the year 2000 to 4.7 million kilos in 2009.
Japanese region getting ready for tea festival
Local authorities and companies of Shizuoka, the heartland of Japan's tea industry, are gearing up for the fourth World O-Cha Festival. The four-day event, held from October 28 at the Shizuoka Convention and Arts Centre, will celebrate all things tea with a vast array of tea-related events. The Shizuoka festival will include exhibitions on tea culture from around the world, including a tasting area, as well as displays of tea utensils, machinery and confectionary that incorporates tea. An international competition for the best-tasting green tea will also be held. Shizuoka is the most important tea region in Japan accounting for almost half of country's output. Its inhabitants have far lower incidences of many forms of cancer, which some have linked with the relatively high amounts of green tea that they consume.
Hong Kong seeks global tea trade role
Hong Kong has reaffirmed its intention to become a global tea trade hub at this year's Hong Kong International Tea Fair, with over 300 exhibitors from 15 countries flocking to the Chinese port city. The fair featured an industry conference on market trends and branding, as well as a variety of tea forums, tea-tasting sessions and other activities showcasing the art and culture associated with tea. Exports of tea from Hong Kong increased significantly in the first half of 2010 to the equivalent of $8.78 million, up 46 percent from the same period last year. Hong Kong has the highest tea consumption of any city in Asia, with tea imports growing by 25 percent to $25.8 million in the first half of 2010.
Steep production drop in India's prime tea region
Tea production in India's northern region has dropped 16 percent in June after pest attacks damaged crops. The region, which accounts for more than two-thirds of total output, declined to 76.8 million kilograms from 91.9 million kilograms a year ago. The Assam region has experienced the biggest decline for its second flush teas, predicted to be close to 40%. The second flush pickings are typically the best quality leaves that fetch a premium from buyers overseas. On the bright side, India's total output in January to June grew 20%, totaling 339 million kilograms, compared with 333.9 million kilograms a year ago. Exports climbed to 83.9 million kilograms in the same period.
Sri Lanka expects record annual production
Sri Lanka, one of the world's biggest black tea exporters, is on track for a record tea crop in 2010 after a solid growth in the first half of the year. Tea production in the first six months increased by 27.8% to reach 166.9 million kilograms, according to the Sri Lanka Tea Board. This is attributed to favorable weather conditions, better fertilizer use and lack of labor unrest. The Tea Board predicts annual output to exceed 320 million kilos if conditions continue to improve. Sri Lanka is recovering from a steep decline in 2009 that saw production fall by almost 10% due to droughts. Tea prices in Colombo, the world's largest tea auction, recorded an average of $3.37 per kilo due to supply shortages in India.
Kenya's tea sector struggling against competitors
Kenya, the world's largest tea producer, is experiencing pressure from other tea-producing nations for its biggest crop: low-quality black tea. Despite a 50% growth in output for the first quarter of 2010 and improved prices, the country is struggling to diversify into the lucrative orthodox tea market and is hampered by shifting international trade policies. Most of Kenya's production consists of low-quality dust and fannings, mainly geared towards export markets in the UK, Pakistan and Egypt. Despite various incentives, the country is having troubles diversifying towards cultivation of orthodox tea. The African nation is also lacking a domestic market - it exports 95% of its 200 million kilogram production - making it vulnerable against more advantageous trade deals between other consuming and producing nations.
Assam continues to be plagued by weather, pests
Producers in the famous Assam region of India are continuing to experience huge production losses due to excessive rainfall and pest attacks. Region’s largest tea companies have suffered drops of 20% and up for the month of June, as rainfall continues to exceed season averages. In 2010, many key tea-growing areas reported an increase in cumulative rainfall of 50 to 120 percent. Extremely wet weather and inadequate sunshine impedes photosynthesis leading to a sharp drop in the crop. Furthermore, plantations in Assam have been affected by a tea mosquito bug that is particularly hard to eradicate, given the stringent rules of the European Union in regards to pesticide residue levels.
Tea bags not fully biodegradable, UK body warns
A report by a leading consumer organization in the UK has criticized the amount of tea bags that are not biodegradable. According to Which? Gardening, tea bags produced by UK's leading brands like Tetley, PG Tips and Twinings are only 70 to 80 percent biodegradable. The conventional tea bag is mainly produced using paper fiber, but the rest is usually made up of heat-resistant polypropylene, which is not biodegradable. Nonetheless, a government body overseeing sustainable practices advises people to compost tea bags even if they contain polypropylene. Tea drinkers in the UK consume 165 million cups of tea per day, with tea bags being used in 96% of them.
Kenyan tea set for market diversification, branding
According to the Tea Board of Kenya, the African country will seek new international markets for its second biggest source of foreign exchange. Kenya relies heavily on five key markets - Egypt, Pakistan, UK, Sudan and Afghanistan - and fears that any socio-economic instability in any of those countries may have a huge impact on exports. Over three quarters of exports are destined for these 5 countries. Regions in Asia, Middle East, North America and Africa are expected to help the world's largest tea exporter diversify its trade portfolio. Also, the Kenyan tea industry plans to create a "mark of origin", similar to those already developed by Assam and Darjeeling regions in India, that would ensure quality standards for end-consumers and increase visibility abroad.
Jan-May exports up nearly 20% in India
Figures from the Tea Board of India indicate that exports increased by 19% to 71 million kilograms in the first five months of 2010, compared with 59.5 million kg in the same period last year. Strong demand from the Middle East region and rapid price rises of Sri Lankan tea are considered as the two main factors behind this. However, the Tea Board warned that excessive rains in the prized Assam region may adversely affect crop yields and dampen future export growth rate. India expects to export approximately 200 million kilograms of tea in 2010. Its main competitors remain Kenya and other African nations for CTC (crush-tear-curl) tea, and Sri Lanka and Indonesia for orthodox varieties.
Producing nations must drink more tea - UN
According to UN's Food and Agriculture Organization, there is huge potential to market tea in producing countries, where consumption remains low. The agency urged tea producing nations to market the drink more heavily at home and to publicize its health benefits abroad, cautioning against increasing the size of tea plantations, which would dampen crop prices in the long run. Traditional import markets are said to be less lucrative than the countries where tea is produced, the per capita consumption is much lower. Consumers in tea-producing countries drink just one-tenth of the amount of tea compared to people in mature import markets, the report notes.
Attendance rockets by 68% at World Tea Expo
In a clear sign of recovery for the tea industry, the World Tea Expo 2010 saw its attendance jump by 68% compared to 2009. The organizers report 5800 attendees visited the specialty tea trade event, including more than 4700 tea industry professionals. According to official figures, more than two hundred companies exhibited at the show held in Las Vegas, with almost half of them not exhibiting at any other trade event in the US. New companies noted good levels of first-time customers' interest, whereas established brands were satisfied with the number of new business leads. The 2011 World Tea Expo will take place from 24 to 26 of June at the Las Vegas Convention Center in Las Vegas.
Attendance, innovation up at World Tea Expo
The World Tea Expo 2010, held in Las Vegas the past weekend, proved once again that it remains the quintessential event in North America to meet vendors, share business strategies and keep abreast of industry developments. Although the official figures are not out yet, the attendance has risen sharply compared to last year, with good traffic reported on all three days. The number of exhibitors has also increased with more than sixty new companies present. Finally, more than a hundred new products were showcased at the event. The most noteworthy ones were green oolongs from New Zealand, courtesy of Zealong, and very rare Hawaiian tea whose production is currently limited to a few kilos at a time.
Heavy rains damage crops, weigh on output in Assam
Heavy rainfall in the Assam region of India is causing damage to the crops and has cut output by up to 20%. Local authorities say that incessant rainy conditions, that have been affecting the area for the last two months, have pulled down the total production figure by almost three percent from January to May, as compared to the corresponding period last year. High levels of rainfall deprived crops of sufficient sunlight and a warm temperature during daytime in May. The ideal weather conditions for the tea crop are rainfall at night and warm weather during the daytime. The rainy weather threatens the second flush from the gardens of Assam.
World Tea Expo to kick off in Las Vegas
The 2010 World Tea Expo is once again taking place in Las Vegas, Nevada from the 11th to 13th of June. The annual trade show, dedicated to specialty / premium tea industry, will host a variety of events including educational conferences, tea championship awards and new business boot camp. More than 300 specialty tea wholesale suppliers and related vendors will exhibit new products, services and innovations. Organizers expect thousands of attendees from all sectors: retailers, tea room owners, F&B directors, spa managers, specialty grocers, mass merchants and other business professionals. The US tea industry was valued at $7 billion in 2008 and is thought to reach $10 billion by the end of the current year.
Sri Lanka boasts first Rainforest certified estate
Finlays estates in Passara, Uva Province have become the first to earn the Rainforest Alliance certification in Sri Lanka. The Rainforest Alliance certification indicates compliance with strict guidelines to protect the environment, wildlife, workers and local communities. Finlays, a large tea grower and packer, now boasts 2'500 acres of new rubber and timber plantations, with trees and creepers planted in these fields to improve soil structure. Also, integrated pest control systems are reducing the use of agrochemicals. Finlays employs over fifty thousand workers, mostly on plantations in Sri Lanka, Kenya and Uganda.
Tea is one of best industries for start-ups
Inc., a monthly magazine targeted at people who run growing companies, identified the US tea sector as one of the best industries for starting a business. Tea is the sixth most popular beverage in the US (after soft drinks, water, beer, milk and coffee) and has been growing by about 5 percent over the past five years because of increasing consumer health consciousness. The feature also notes that although the top four tea manufacturers make up 88% of industry revenue, the remaining 12% represents a $264 million market for small, independent manufacturers. The average profit margin of US tea companies is estimated at 18%.
Largest Darjeeling producer warns on output fall
According to Ashok Lohia, the largest Darjeeling tea producer with 13 tea estates under management, output of first flush Darjeeling tea has been adversely affected due to the lack of rain and drought conditions for the second year in a row. On average, he estimates that production will come in 25% lower than normal. In addition to this, the Indian region is dealing with a falling premium on organic teas, where costs are considerably higher and practices more complex, as more than 50% of organic produce is selling below the cost of production.
Kenya set for abundant crop and returns
Kenya, the world's largest tea exporter, is reporting continued high tea output and prices as the country enjoys good rains. Production for the first quarter of 2010 stood at 111 million kilograms, a 69 per cent increase over the 65.8 million kg recorded in the first quarter of last year, when the country was affected by severe droughts. Production was the highest for the first quarter in five years. The average price for Kenyan tea was 15% higher at $3.04 per kg compared with $2.31 recorded in the same period in 2009. Also on the increase is the number of countries buying Kenya’s tea, rising to 38 from 35 in 2009 and 2008 respectively.
Gossainbarie tea estate goes organic
The Gossainbarie tea estate in India's Assam region has gone organic and is following the principles of India's ancient plant medicine Vriksh Ayurveda. After seeing its output plummet from its peak 900'000 kilograms to 355'000, the new owner decided it was time to opt for something different in order to save the estate. Going organic can boost the market price of the tea and open up new niche markets in the West, helping to overcome the high production costs caused by rising wages and expensive chemical fertilizers. The estate hopes to produce 600'000 kilograms of tea this year.
ITC invites Pakistan to join its ranks
The International Tea Committee wants Pakistan, a large tea producer and importer, to become part of the organization. By becoming an associated member of the ITC, Pakistan would get more information about the tea industry and play a bigger role in discussing relevant issues. The ITC is an unbiased, non profit making organization, supported and recognized by many of the major tea producing and tea consuming nations as the official source for tea statistics. There are 85 percent tea producing countries who are full members and small tea growing states are the associate members of ITC.
Study reveals a diverse world beverage market
A new study by Euromonitor on global drinking habits highlights the increasingly heterogeneous nature of the global beverage market. It notes that traditional perceptions of how the world drinks have been challenged over the past decade, and this is reflected by a new generation of dynamic niche categories like functional drinks, soy beverages and ready-to-drink tea. For example, the ready-to-drink tea category in China has outsold its hot tea rival by 1bn liters in 2009, whereas ten years ago hot tea generated more than five times the consumption of ready-to-drink tea equivalent.
Tea & Coffee World Cup to take place in Vienna
This year's Tea & Coffee World Cup Europe will kick off this weekend in Vienna, Austria. The event, taking place from April 25 to 27, will feature exhibitors of every type of service: supplies, machinery and equipment, roasters, packers, tea & coffee traders. There will be interactive events such as coffee and tea cuppings, contests such as latte art and barista competitions and coffee and tea product competitions, as well as educational seminars led by industry notables covering the latest developments and topical subjects, all designed to increase attendance by adding value to the visitors' experience.
Study highlights organic consumers' mindset
According to a report on organic consumption trends, core organic consumers, those who are the most loyal to buying organics, are seeking more authentic, clean foods through farmers' markets and community support agriculture. The study, called State of the Organic Consumer 2010, estimates that these types of shoppers make up 24% of the organic market and sheds light on how they, and other types of shoppers, perceive organic and natural products. For example, core consumers are intensely involved in organics, whereas "peripheral" consumers tend to be motivated by price. Also, the study notes that shoppers see private-label products as being more authentic than mainstream organic products.
Weather lifts Assam first flush prospects
Generous rainfall in the past week has boosted tea planters' hopes of a good first flush harvest in the Assam region of India. First flush tea, picked from March to May, is known for its strong, fresh flavor and fetches highest prices at auctions. Nearly 20 percent of the total production of tea in Assam takes place during the first flush period. This comes as a blessing for the region, which experienced a dry spell last year and in the beginning of this year. However, local scientists warn that the state had witnessed a tremendous climatic change in recent times with a decrease of nearly 50% in annual rainfall in the last 15 years.
Greenopia signles out Honest as greenest drink
Honest Tea has been found to have the most eco-friendly products among 23 of America's most popular mass-market beverages. The independent study, published by Greenopia, highlighted which soda, juice, and energy drink brands are the greenest. Honest Tea was the only mass-distributed, retail beverage to earn the coveted Greenopia 4-Leaf rating. It was followed by Steaz and Santa Cruz Organic Sodas - both with 3-Leaf rating. Sales leaders Coke scored two leaves, while competitor Pepsi earned only 1-Leaf rating. Dr. Pepper, Vitaminwater and Red Bull scored a zero rating.
Rainforest Alliance sees robust growth
The Rainforest Alliance has seen continued growth in all of its programs despite the tough economic climate in 2009. The international non-profit organization, developing initiatives for sustainable forestry, agriculture, tourism and climate, reported an increase of 26% in the number of companies buying from certified farms and forests. According to Rainforest's president, four out of the five top tea companies worldwide have committed to buying tea from Rainforest Alliance Certified farms. Tea brands that source part of their crops from sustainable sources include Lipton, Peet's Coffee & Tea, The Tao of Tea, Dallmayr, Twinings and Taylors of Harrogate.
Sri Lanka introduces quality certification scheme
Sri Lanka has launched a quality certification program for tea destined for export, to ensure exported teas are devoid of stones and other contamination. Random test will be done on products to ensure they conform to the standards after certification is given and would help tea producers improve standards and act as an assurance of quality. A guarantee of quality is required as food safety standards are becoming increasingly strict in key markets like Europe, Japan and North America.
US soft drinks market declines - RTD tea grows
According to Beverage Marketing Corp, the US beverage category declined 3.1% in volume in 2009 due to economic woes. So-called value-added water and sports drinks, like Coke's Vitaminwater, were the two hardest hit categories, with volume declines of 12.5% and 12.3%, respectively. Carbonated soft drinks, the largest beverage category that includes Coca-Cola and Pepsi, declined 2.3% in volume. On the bright side, ready-to-drink tea segment recorded the biggest gain, posting a 1.2% rise in volume. 2009 marked the fifth consecutive year of declines in the soft drinks category.
February's tea output rockets in Sri Lanka
Figures for the month of February indicate that Sri Lanka's tea production rose by a whopping 68 percent. The country produced 23 million kilograms of tea in 2010, compared to 13 million in the corresponding month last year. This performance is attributed to correct application of fertilizer, improved weather conditions and a stable labor force. However, these numbers need to be put in perspective, as last year's figures were negatively affected by adverse weather conditions, which saw output sink by 44% in contrast to 2008. The Tea Board also noted a growing demand for low grown tea from the Middle East and Russia.
Suppliers experiment with takeway tea cups
In light of the success of takeaway coffee cup, making tea convenient for takeaway has been a major issue for some big players in the tea industry. The reason behind the impasse is the tea bag, which somehow needs to get disposed of. Several companies, including PG Tips, Halssen and Lyon and Mighty Leaf are working on different cup lid concepts, which lock in the tea bag into the lid after brewing. The most novel idea to enjoy whole-leaf tea on the go comes from UK's Tea2Fly in the form of a sip-through lid with a membrane that lets only the liquid to pass through while capturing the leaves.
Kombucha generates buzz at Expo West
This year's Natural Products Expo West, held in Anaheim, CA., witnessed a wave of kombucha fever. Honest Tea and Celestial Seasonings are some of the larger companies on the market that jumped onto the bandwagon. Both big tea makers showed off flavor and ingredient profiles that masked much of the vinegar bite in an attempt to attract new consumers. This is a clear indication that the sour product of tea fermentation, flavored with fruit juice for a more accessible taste, is rapidly gaining awareness across the US, mainly due to its health benefits.
Africa and Mideast: runners-up in tea consumption
During the third Global Dubai Tea Forum 2010 it was revealed that Africa and the Middle East account for 13.8 percent of global tea consumption. This puts the region in second place worldwide, after Asia. The biennial forum concluded with discussions of trends in innovation and current market developments, as well as the growing popularity of flavored tea globally. The Global Dubai Tea Forum took place from March 9-10, 2010, at the Westin Dubai Mina Seyahi. The event saw the attendance of over 360 delegates from more 35 countries worldwide.
Sri Lanka's tea exports break $1bn mark
Sri Lanka has surpassed the $1 billion mark in tea exports for the third consecutive year. As the largest exporter of pre-packaged branded tea, it is also the only country to exceed this symbolic figure. According to the country's Tea Board chairman, the industry will concentrate on re-planting efforts and upgrading tea production. Other initiatives include labor cost reduction and raising the per-head productivity. 96% of Sri Lanka's tea produce is exported.
Ethical Tea Partnership and Fairtrade unite
The Ethical Tea Partnership, an association monitoring the social and environmental conditions under which tea is produced, has linked up with The Fairtrade Labelling Organizations International, responsible for the strategic direction of Fairtrade and the Fairtrade standards, to improve the lives of tea workers and promote sustainability in the tea industry. The two bodies will work together to reduce duplication in auditing for tea growers, facilitate Fairtrade certification of producers in their supply chains and implement joint projects to address specific issues facing producers in the tea industry.
Kenayn tea output soars after rainfall
Tea production in Kenya, the world’s biggest exporter of black tea, rose 47% in January because of wet weather in the month’s first half. Output climbed to 37.7 million kilograms from 25.4 million kilograms a year earlier, according to the Nairobi-based Tea Board of Kenya. Kenyan tea prices rose last week before an expected decline in the crop as the pruning season starts. Average prices gained to a record $3.12 a kilogram in December after poor weather cut Kenyan output of the leaves, worsening a global shortage.
Dubai reports record tea trade in 2009
The Dubai Tea Trading Centre has revealed a record 7.5 million kilos of tea traded through the Centre in 2009, despite production shortfalls in main producing countries. Prices have also increased in 2009, fetching on average 12 percent more than in 2008. Sri Lanka, India and Kenya are Dubai’s top trading partners, contributing over 65 per cent of the total tea traded through the emirate. Other countries listed include Indonesia, Vietnam, Nepal, China and Iran.
Kenya eclipses Sri Lanka as largest tea exporter
According to the latest numbers from the Tea Board of Kenya, Kenya has overtaken Sri Lanka to become the number one tea exporter in the world. In 2009, the African country exported 342 million kilograms to 47 world markets, accounting for 22 per cent of the world tea exports. Out of the 40 percent of all global tea bags, at least 10 percent of its content are Kenyan. Tea is grown on about 150,000 hectares of land, yielding an average of 10,977 kg of green leaf per hectare.
African tea prices near record highs
The prices of top grade African tea are nearing record highs, as they shot up more than 7% at this week's auctions in Mombassa. Tea sold for as much as $3.09 a kilogram, compared with $2.88 last week. The record stands at $3.12 a kilogram reached last year. The rise is attributed to unfavorable weather damaging crops. Experts fear that a gradual rebound in output will still not be able to keep up with even quicker demand growth from around the world.
Lack of rainfall continues to plague India
Tea plantations in west Bengal and Assam continue to be affected by rain deficiency and erratic changes in the monsoon. Last year the country was plagued by lack of rain and thus experienced a plummeting output, as rain is needed for the pruned brushes to recover from stress. On average, the region should have three days of rainfall in January and February combined, yet the plantations are currently still waiting for the first showers. India is the world's largest producer of tea and has about 170,000 hectares of land under tea cultivation.
Calorie info to become more clear on packs
America's soft drink companies are making a push to make the calories in their products even more clear and consumer-friendly by putting the information on the front of all their packages, vending machines and fountain machines. This answers First Lady Michelle Obama's call for innovative industry initiatives that contribute to her efforts to help families make informed choices as part of a balanced lifestyle. The industry will start implementing the scheme, which goes beyond what is required by the federal agency's food labeling regulations, across the country this year with completion in 2012.
India's tea exports surge in December
Indian Tea Association estimates that the country's tea exports jumped 37% in December. The rise is attributed to improved demand driven an overseas recovery and a global production deficit, as other producing countries like Kenya and Sri Lanka are facing huge production deficits. Data released by the Tea Board showed total exports in December standing at 22.24 million kilograms, compared to 16.24 million kg a year ago. India's total exports in 2009 fell 5.7 percent to 191.5 million kg, the Tea Board said.
Green tea market to eclipse 1.2 million tons
Latest findings from market research firm GIA indicate that the global market for green tea is projected to exceed 1.2 million tons by 2015. The report cites growing health consciousness, increasing consumer awareness about the medicinal benefits of green tea and increasing incidence of obesity as some of the key factors driving green tea market. China is the largest producer of green tea worldwide and is also the leading exporter, while Morocco is the leading importer of green tea worldwide. Green tea is extensively consumed in Mainland China, Taiwan, Middle East, and Japan.
UK workers fear over their free cuppa
As reported by a survey in the UK, a quarter of workers claim that their employer had taken steps to cut the cost of refreshments over the past year. Many workers were now expected to provide their own beverages, pay for what they use or at least contribute towards the cost. A tenth of the participants admitted that cutbacks on refreshments had affected the atmosphere at work and 20% were left feeling uncertain about the future. On the other hand, a third claimed that such small perks boosted morale in the workplace.
Fancy Food Show brews up several new teas
The 2010 Winter Fancy Food Show, taking place in San Francisco last week, showcased several new products in the tea category. Honest Tea launched two new Kombucha flavor extensions, along with a new Honest Mate in Maqui Berry. Oooli Tea from Canada presented several fruit-infused iced teas brewed from green and oolong varieties. BevNovations, a Maryland-based company displayed its new Silence Tea range, geared towards the holistic segment. While there were fewer new brand introductions and product line extensions than last year’s show, the companies in attendance reported very favorable results over the course of the three days.
Kenya's exports rise despite falling output
Tea exports in Kenya have risen more than 10% in value in 2009, despite production being affected by severe droughts. The African country exported crops worth 69 billion shillings (approximately $1 billion), as the local currency depreciated against the US dollar. Average tea prices rose to $2.72 a kilogram from $2.33. Prices at the Mombasa tea auction were also the highest recorded in close to two-and-half decades, according to the Tea Board of Kenya. Export earnings for 2010 are expected to increase marginally.
Huge drop in product launches last year
As market research firm Mintel reports, there were 30% less product launches in the US food and beverage industry in 2009, compared to 2008. A number of small companies have slowed down product introductions due to the economic situation, whereas some segments have become over-saturated. This is the biggest decline in the last decade. Despite the trend, some categories experienced growth, for example ethical and environmental claims increased from 9% to 17% of all product launches in 2009. Products boasting an economy claim have increased by 72% compared to the previous year.
Kenya's tea output predicted to grow in 2010
Tea Board of Kenya predicts a more than fifteen percent growth for the country's tea output in 2010. Kenya has seen earnings from tea rise to $896 million in 2009 after prices climbed due to a global deficit caused by dry weather. It produced 315 million kilograms of tea in 2009, down from 345 million in the previous year. The East African nation is the largest grower and one of the leading exporters of black tea, which is an important source of foreign exchange in the region's largest economy.
India's tea exports shoot up in November
India, the world's largest tea producing country, has seen its exports increase by a whopping 24% in November. The rise is attributed to rainy weather that boosted crop levels. Shipments were 19.3 million kilograms, compared with 15.6 million kilograms a year earlier. Production in November climbed to 90.5 million kilograms from 89.7 million kilograms in 2008. On the flip side, output for past eleven months has dropped to 920.9 million kilograms from just above 922 million kg the previous year.
Ceylon tea to get Geographical Indication
Sri Lanka is preparing a claim for intellectual property protection over different types of Ceylon tea under global 'Geographical Indicators' rules. Like the wines of Bordeaux or the Tequila of Mexico, the term 'Ceylon Tea' would be attributable only to tea manufactured in Sri Lanka, and not blended anywhere else. A Geographical Indication is a name or sign used on certain products which corresponds to a specific geographical location or origin, for example a town, region, or country. The use of it may act as a certification that the product possesses certain qualities or enjoys a certain reputation due to its geographical origin.
Kombucha may be the next big thing
According to the latest report by the Sage Group, a tea industry think-tank and publisher, Kombucha is becoming one of the hottest selling bottled beverages at natural foods outlets across the United States. The comprehensive study notes that once considered a quirky product limited to hippies and natural foods purists, Kombucha has morphed into a commercially viable beverage category, with sales approaching $100 million per year. The fermented tea has a wide array of ingredients and active constituents — carbohydrates, caffeine, antioxidants, alcohol, various natural acids, and pre/probiotics.
Stable weather to increase tea output in 2010
Tea prices are due to come down in 2010 from their record highs this year, the United Nations Food and Agriculture Organisation predicts. A return of normal weather patterns in leading producer regions should alleviate tight supplies that have sent tea prices soaring in 2009, as major droughts have affected the growing regions in India, Sri Lanka and Kenya during Spring and Summer. The FAO tea composite, an indicative world price for black tea, reached a high of $3.18 a kilo in September compared with an average price of $2.38 in 2008.
Organic Darjeeling tea sees global rise in demand
According to Darjeeling's largest tea producer, premium organic tea from Darjeeling region of India is making grounds in new markets like Germany, Russia, Japan, China and the UAE. Germany is poised to become a major player, as a leading buyer, Projectwerkstatt GmbH, has decided to go for 100% organic Darjeeling tea in 2010. The organic movement is driven largely by the politically correct tone, tenor and mood of the consumer in developed markets such as the US and Europe. With big growth in demand, natural calamities remain the biggest worry for tea growers. This year the production of Darjeeling tea has been affected by drought resulting in a ten percent drop in production.
Tea guide selects top spots to enjoy a cuppa
Travel publishing firm Lonely Planet has revealed ten locations to experience tea in the most unusual places around the world. The new book '1000 Ultimate Experiences' awards the first place for tea experience to the city of London, suggesting the Ritz hotel for afternoon tea. The second place is the Trans-Siberian Railway, a six-day train from Moscow to Beijing, where travelers can enjoy tea brewed in samovars. Other destinations in the top 10 include several countries in Latin America, the Darjeeling region of India and Boston, US.
India's tea output recovers with a jump in October
According to the Tea Board of India, the country's tea production rose 6.2% in October due to crop boosts by post-monsoon rains in the nation's biggest growing region. Production was 133.6 million kilograms, compared with 125.8 million kilograms a year earlier, although total output year-to-date dropped to 830.4 million kilograms from 832.5 million in the same period last year. The world's largest tea grower also witnessed another month of dwindling exports in October, recording an eleven percent decline compared to October 2008.
India's tea industry to become globally branded
India's tea industry is planning to improve the image of its tea crop by creating a branded identity of Indian tea. The committee, headed by professionals from country's leading tea companies, will formulate a global branding strategy to market Indian teas worldwide. The commerce ministry plans to create an umbrella brand for Indian tea, similar to Sri Lankan "lion logo", under which all categories will be exported across world markets.
Uganda's tea industry enjoys continued growth
Uganda is expecting another record year for its tea exports, with an anticipated $90m worth of exports for 2009, according to Uganda Tea Association. The African country's exports have steadily increased by roughly 25% in the past several years and have become the nation's third largest foreign exchange earners. The country boasts 12 tea processing and exporting companies operating 21 processing factories, with 62,000 people employed throughout the tea industry. Uganda currently ranks 13th among the world's largest tea producers and third in the East and central Africa region after Kenya and Malawi.
Tea and Health World Congress will be held in Dubai
The third World Congress on Tea & Health: Nutraceutical and Pharmaceutical Applications will take place in Dubai from 3 to 4 December 2009. The event will attract participants from various fields: researchers and academic professors, R&D departments, clinicians, pharmaceutical companies, food supplement companies and cosmetics companies. The goal of the congress is to provide answers and to give a future vision of how tea polyphenols can enhance human nutrition and help in the prevention and treatment of many chronic diseases.
India's tea imports soar in 2009
India’s tea import bill has shot up by 46% in the first six months of 2009, as it increased imports from Nepal, Vietnam and Argentina. The Indian tea industry is importing these teas, which are primarily meant for re-export, to maintain a competitive advantage in the global export markets. As prices of tea continue to rise due to production shortages, the industry is resorting to imports of cheaper teas from other countries, which are then blended with Indian tea for export markets. In 2009, India has even started to buy tea from non-traditional countries like Canada, Iran and the US.
New study sheds light on global hot drinks market
A recent study by Euromonitor analyzes the hot drinks market in face of recessionary pressures on the global scale. It predicts that core markets of Japan, Germany, US, UK and France will all be seriously impacted by declines in consumer spending. Also, a shortfall in global tea production, in countries such as India and Kenya, in 2009 could push prices to an all time high. Finally, opportunity for consumption growth will be driven through emerging markets, especially the Asia-Pacific region, which is forecast to dethrone Western Europe as the highest spending region on hot drinks by 2010.
Assam tea to receive quality rating
The government of Assam, one of India's prime tea regions, plans to introduce a two-phase quality benchmark for its tea crop. These measures are aimed at improving product quality and attracting more global buyers. The first phase will consist of certification based on prices fetched at auctions under a four star rating system. Later, government will establish mandatory accreditation for all tea gardens, taking into account manufacturing, hygiene, pricing and pollution standards.
Darjeeling tea on track to get EU protection
Tea from the famous Darjeeling region in India is on course to obtain the European Union's Protected Geographical Indication seal. The European Commission has invited public opinion and comments on a proposal from India seeking patent protection for Darjeeling tea and has given six months’ time for any objections to register it. The Geographical Indication recognition makes it illegal for any country or company to use the Darjeeling brand for their teas if it has not been produced in that region. Darjeeling is India's best known tea-brand and one of the most popular varieties around the world.
Auction tea sales down in Kenya
According to statistics from Tea Brokers East Africa, Kenya's tea auction sold 212.9 million kilograms of tea in the first nine months of 2009, down from 219.8 million handled during the same period last year. Lipton was the leading exporter with 46.5 million kg, followed by Global Tea, which took up 18.7 million kg. Tea bushes across most of east Africa have suffered in the last few months because of a devastating drought but prices for the best quality tea have benefited, rising to a record $4.47. The auction, based in the port city of Mombasa, sells tea from Kenya and other African countries such as Rwanda, Tanzania and Madagascar.
Student duo picks up US Tea Council prize
The Tea Council of the USA has announced the winners of its annual national scholarship competition, aimed at promoting tea and its health benefits. The Tea Council received more than 1100 entries of original one-to-two minute videos, containing at least one valid message regarding tea’s health-related benefits. All video submissions were judged by a panel of Tea Council representatives. The prize of $15000 was picked up by aspiring actor Edan Freiberger and engineering student Nicholas Chen, who attend Stanford and UCLA, respectively.
Tea production falls sharply in Kenya
Kenya, the world's largest exporter of black tea, has seen its tea output plummet by 12% in the first eight months of the year, according to the Tea Board of Kenya. Production dropped to 182 million kilograms between January and August, and the full year output is predicted to fall by as much as 10 percent from a year ago. African tea prices rose to a record this month as poor weather hurt crops and are expected to continue the upward trend in the next months. Earnings from tea exports are to rise 22 percent this year.
World Tea Expo East kicks off today
The World Tea Expo East conference and exhibition starts today at the Boston Convention & Exhibition Center in Boston, Massachusetts. Co-located with Natural Products Expo East, the expo establishes itself as the industry hot spot on the east coast, with a wide range of conferences and tastings, as well as a show floor filled with leading retailers, suppliers and manufacturers. Educational conference starts today at 9.00am EST. Exhibition is open from Thursday to Saturday.
Tea trade jumps 60 percent in Dubai
Dubai Tea Trading Center has posted more than 60% increase in its tea trade in the first half of the year. The total amount of tea traded through the center reached 4.2 million kilos, an increase of 1.6 million kilos over the total volume of tea it handled during the same period last year. The 24,000 square meter facility comprises a 6000 square meter racked warehouse offering storage space to tea manufacturers and traders. The Middle East and neighboring countries account for about 25% of global tea imports.
Tea production slides on dry weather in India
Indian Tea Board has reported a 3% decline in country's output in July after continuing dry weather damaged crops. Total output in July was 127 million kilograms, compared with 131 million kilograms a year earlier, whereas production in the first seven months dropped 3.3% to 461 million kilograms, from 476.6 million kilograms a year ago. According to the Board's chairman, dry weather in the nation’s northeastern states, which grow more than half of the country’s tea crop, may lower output this year by at least 5%.
Global tea shortage predicted to rise
According to McLeod Russel, the world's largest tea plantation company, global tea shortage may increase by 10% next year due to droughts in Kenya, Sri Lanka and India. The company's managing director believes the deficit may widen to 110 million kilograms by May to June next year, compared with 100 million kilograms this year, and tea prices are likely to increase by another 15% over the next twelve months.
Unprecedented output expected in Assam for August
India's famous Assam region is looking forward to brighter days ahead as it has witnessed an "unprecedented" tea production in August. The region was marred by droughts in the first half of the year, but has been recovering steadily since June. According to planters, crop production in the second half of 2009 might even match the output for 2008, one of best years for Assam in recent history.
Tea prices predicted to stop rising, stay volatile
According to the chief executive of the London-based International Tea Committee, tea prices are unlikely to continue their rise after reaching record highs in several key auctions in recent weeks. Manuja Peiris cites better output in India, as well as an end to the panic buying before the holy month of Ramadan from Islamic countries. Although the production is expected to recover in early 2010, prices may remain somewhat volatile.
Tea prices soar on significant shortfall
Tea prices hit record highs this week, as simultaneous droughts in biggest producing countries tightened supplies. Prices are up 25% since January and auctions in Mombasa, Colombo and Calcutta continue to witness gains in value on the back of a healthy 4.8% rise in global consumption last year. Earlier this year, the United Nations' Food and Agriculture Organization said there was a "significant" shortfall in tea supply.
Hong Kong aims to become global tea hub
Hong Kong trade authorities are planning to make the Asian city a world center for tea. Talks are taking place with tea sellers and buyers to use the city to trade supplies. Hong Kong's advantages are developed port and logistics facilities, as well as proximity to mainland China - world's largest tea producer. The city plans to replicate the success of its wine industry, becoming world's third-biggest trading hub for wine a year after ending duties in 2008.
New governing board to boost tea sector in Kenya
New board of directors of Kenya's Tea Board has been inaugurated by the agriculture minister with the aim to boost the profile of this key industry. High on the agenda is product diversification towards green, flavored and ready-to-drink tea, as well as exploring new markets in the Far East and Russia. The Tea Board will also work on marketing campaigns aimed at increasing the local tea market as a means of diversifying the market for Kenyan tea.
International Tea Fair opens in Hong Kong
The Hong Kong International Tea Fair opened its doors today at the Hong Kong Convention and Exhibition Centre. The three-day event hosts over 250 exhibitors from 15 countries, including China, India, Sri Lanka and Japan. Exhibits on display include tea, processed tea and tea products, tea packaging, tea processing equipment and tasting services, tea ware, tea bar / organization, tea technology, tea art and tea media.
India's tea output rises 12% in June
India's Tea Board has reported a healthy increase in tea production in June, with output increasing 12 percent buoyed by monsoon weather, while exports showed a marginal rise on better availability. According to data, production increased to 118.1 million kilograms from 105.4 million kilograms during the same period a year ago, while exports rose to 14.95 million kg from 14.80 million kg. However, annual output and exports continue to remain lower than a year ago due recent droughts and civil unrest.
Kenyan tea shares at a 15-month peak
Shares in Kenyan tea companies rose to their highest levels since the beginning of 2008 after tea prices continued their upward trend at the Mombasa auctions. Financial experts say better tea prices and a weaker Kenyan shilling help local companies return to growth, yet companies remain cautious about their future due to unpredictable demand. At the auctions in Mombasa, prices averaged $2.66 a kilogram last week compared with $2.65 the week earlier.
Lipton's health claims rejected by EU watchdog
The European Food Standards Authority has slammed Lipton for making unproven claims on its packaging. It judged that there was no sufficient proof of Lipton's assertion that black tea can improve alertness. The EFSA has examined the science behind the health claims made by 66 foods or ingredients and rejected most of them. Other companies hit by this investigation include Ocean Spray cranberry juice and Equazen, producer of omega-3 fish oil.
India's output to improve due to good weather
Tea production in India is expected to recover after monsoons, bringing heavy rainfall, set into the tea growing regions. After months of severe droughts which have crippled production and damaged plantations, planters and traders predict the June crop to be higher than last year. They are less optimistic about July's crop, deeming it on par with last year's, as the rains, though heavy, didn't allow enough sunshine to ensure the sprouting of a new flush of leaves.
UK tea market set for better days ahead
Sales of tea in the UK are on the rise after a decade-long decline, as consumers shift from coffee to tea, tempted by its perceived health benefits. The UK Tea Council predicts overall sales of tea to increase by three percent this year, with the specialty tea category exploding by as much as 25%. Experts anticipate that this renewed interest will lead to a larger variety of teas available on the market and increased prices, as global consumption continues to grow.
Major reforms planned for tea farming in Kenya
Kenya's agriculture minister has announced plans to simplify the rules governing tea farming in order to streamline administration and boost production. The east African country, world's largest black tea exporter, aims to improve tea processing and invest in exploration of new markets, as well as reign in bureaucracy in the industry by reducing the number of directors in factories.
India's tea exports drop a hefty 19%
India's Tea Board has announced that country's exports have dropped by 19 percent in volume during the first five months of this year. Strong domestic demand and low output, caused by unfavorable weather conditions, have weighed on the exports. Total exports during January-May were 60 million kg compared with 73 million kg for the same period last year. However, during this period, the value of exports rose by 7 percent. Production during the first five months fell 10 percent to 215 million kg.
Wold Tea Expo East to be held in Boston
Organizers of the World Tea Expo are to hold an extra exhibition focused on tea on the east coast, reflecting increased interest and growth prospects of this $7 billion industry. The event will take place on 22-26 of October at Boston Convention and Exhibition Center, alongside Natural Products Expo East. It will feature an educational conference on tea purchasing, online sales channel and tea's health benefits, as well as a three-day boot camp covering many important aspects of the tea business.
Indian tea prices predicted to soar next year
Prices of Indian tea are expected to rise by as much as 30% next year, according to a senior industry official. Aditya Khaitan, managing director of McLeod Russel, one of India's biggest tea exporters, said severe droughts and crop shortages from major producers will drive up prices in the upcoming year. In 2009, he foresees the output of 965 million kg - a drop of 20 million kg compared to 2008. He also predicts the country's exports to fall by 10 million kg to 190 million kg in the same period, against 200 million kg in 2009.
India's tea production affected by weather
Tea production in India may decline at least 5 percent this year after dry weather damaged crops in the nation’s main growing regions of Darjeeling and Assam. Output is expected to drop to 930 million kilos and exports are anticipated to fall as much as 11 percent to 175 million kilograms, according to Tea Board of India. Tea output in Kenya, the world’s biggest exporter of black tea, fell 7 percent to 65.8 million kilograms in the three months to March because of dry, hot weather.
World tea prices soar on poor harvests
The Financial Times reports that tea prices have risen by as much as 35% in the past year due to adverse weather conditions in main exporting countries. Output falls in India, Kenya and Sri Lanka have driven prices above last year's record levels. The United Nations' Food and Agriculture Organisation, which tracks global tea supply and demand, says there is a "significant" shortfall in supply, whereas the demand is said to have grown by 4.8 percent last year.
Tea importers request Pakistan's tea duty axe
Tea importers in Pakistan have raised concerns about the falling market share of imported crops due to tea smuggling from Afghanistan. They have asked the Commerce minister to abolish a ten percent duty on imported tea. The price of tea has continuously risen in the international markets, due to low crop production in tea producing countries, but due to high import duty the importers are facing stiff competition from smugglers from neighboring Afghanistan.
Kenya aims to abolish tea auctions
Kenya's Agriculture Minister has announced that coffee and tea auctions will be disbanded by the end of the year. Instead, the crops will be sold as branded premium Kenyan products. According to officials, the move would improve prices and fortunes for farmers, who have been suffering from low prices in recent years. They also hope that quality and image of Kenya's tea will improve, as tea purchased at the auctions was being used to blend with other lowly products from other countries.
Tea & Coffee World Cup to take place in Seville
Tea & Coffee World Cup Exhibition and Symposiums will be held in Seville, Spain, at FIBES Exhibition and Convention Centre on June 7-9, 2009. The three-day event features over 200 exhibitors from every sector, including services, supplies, machinery equipment, roasters, packers, and tea/coffee traders to retail outlets, hotel chains and more. Tastings, workshops, social events, contests and a two-day tea and coffee symposium highlighting some of today’s most important topics will be held at the fair.
Sri Lankan tea output recovers after droughts
The Sri Lanka Tea Board has announced an increase in country's output in April 2009 compared to the same period last year, suggesting the sector is recovering from the effects of severe droughts that hit the industry earlier this year. Total tea production in April was 29.2 million kilos, up 4.8 percent from 27.8 million kilos in April 2008. However, cumulative production for the first months of 2009 has seen a huge drop with an output of 78.7 million kilos, 29% below the 111.3 million kilos made in the same 2008 period.
UK consumers face 15% tea price hike
The price of tea is expected to rise by up to 15 percent in the UK, as the impact of rising demand, crop failures and a weak pound takes its toll. Businesses blame severe droughts in Kenya and Sri Lanka, as well as a hefty 5% increase in international demand for tea. A weak pound also affects prices, as purchasing the produce becomes more expensive. PG Tips, a leading brand in the UK, says it can no longer absorb the extra costs and will shortly raise prices by up to 50p ($0.80) for a box of 160 tea bags.
2009 World Tea Champions announced in Las Vegas
At this year's World Tea Expo, held in Las Vegas, winners of the prestigious 2009 World Tea Championships were announced during a ceremony on Saturday, May 3. Most awards were picked up by Rishi Tea, mainly in Signature Famous Teas and General categories. Other notable winners included Qtrade Teas & Herbs, TeaGschwendner USA, Teas Etc and Peli Teas. Ito En dominated in the ready-to-drink iced teas category.
Kenyan tea output drops 7% on hot weather
Kenya, the world’s biggest exporter of black tea, recorded a 7% decline in output in the first quarter because of hot, dry weather in most tea-producing areas of the country. According to the Tea Board of Kenya, production declined to 65.8 million kilograms (145.1 million lbs) in the three months through March, from 70.7 million kilograms in the same period in 2008 due to continuing droughts. Exports from the east African country rose 14 percent to 93.8 million kilograms in the first quarter compared with the same period a year earlier.
India's soaring imports may impact image
The amount and value of tea imported to India has risen sharply this year, official figures show. In the first two months of 2009, India imported 3.4 million kilograms of tea from countries such as Indonesia, Sri Lanka or China, compared with 1.9 million kg in the earlier corresponding period. India imports tea for re-export to other countries, so the imported tea is not consumed in the domestic market. Industry insiders fear that poor quality tea, imported for re-exports, may tarnish the image of Indian tea in global markets.
Kenya faces earnings fall from droughts
Tea industry in Kenya is facing the worst year in a decade, as shortfalls in earnings and output take their toll on the entire sector. Tea production and revenue have fallen approximately ten percent, while the droughts are likely to continue. Farms and factories are experiencing shortage of leaves, with some factories considering temporary closures if conditions do not improve. At the Kericho-based Unilever Tea estates, one of the largest commercial enterprises in Kenya employing more than 20,000 people, only two out of the seven factories have been operational due to dwindling production of green leaf through out the first quarter of 2009.
China becomes world's largest tea producer
During the recent International Symposium on the Tea Industry's Scientific and Technological Innovation and Strategic Cooperation, China has announced that it has become the world's largest tea producer. According to China Tea Marketing Association, China produced 1.24 million tons of tea in 2008, with a steady annual output growth of 70,000 to 80,000 tons in recent years. The world's most populous country exports 290,000 tons of tea annually.
Credit crunch impacts price of premium Darjeelings
India's famous Darjeeling region is feeling the pinch of the global credit crisis, according to the Darjeeling Tea Association. The premium first flush teas, which become available in March, have fetched 25% lesser price in the European markets this year. Nearly 85% of high quality first flush tea is exported to European nations, with Germany being one of the biggest buyers of the produce. Regional tea planters depend on the first flush and second flush teas for their profitability, as these varieties are major revenue earners for Darjeeling tea industry.
Tea prices set to soar in face of droughts
The United Nations' Food and Agriculture Organization has forecast all-time high tea prices due to simultaneous droughts in key exporting countries. Dry weather in India, Kenya and Sri Lanka will lead to lower output, following last year's market deficit. Preliminary estimates for 2008 indicate that consumption rose to 3.85m tonnes, up 4.8% on the year, while production lagged behind at 3.78m tonnes, up 1.2%.
US tea imports jump by 7% in 2008
According to projected estimates by the US Tea Association, imports in the United States increased by 7% compared to 2007 due to a greater demand for green tea. US tea imports in 2008 are expected to be around 117 million kg (257 million lbs), up from 109 million kg (240 million lbs) in the previous year, with specialty tea being the fastest-growing segment of the industry. The United States is the world's seventh-biggest consumer of tea, behind China, India, the Russian Federation, Turkey, Japan and the United Kingdom.
Dry weather to impact Assam tea output
Assam, one of India's most famous tea producing regions, has seen its production falter in past months due to an ongoing dry weather spell. The region, accounting for half of India's total tea output, is coping with very limited rain since October 2008 and is expected to suffer a 75% drop in production during February and March. Tea gardens were caught off guard by this rare meteorological situation and have to rely on inadequate irrigation facilities to help the bushes withstand the drought. Industry insiders fear an overall dip in production and a consequent price escalation later in the year.
UK entrepreneurs keen on owning tea shops
According to a YouGov poll, nearly one in ten British entrepreneurs dream of opening a tea or coffee shop, more than wish to run a restaurant, pub or hotel. Whereas internet businesses, with 13% of the vote, were the most popular start-up choice in the survey of 2194 adults, tea and coffee shops came in respectable second with 9% of the poll. Primary reasons for the choice are financial rewards, followed by a better control over working hours.
Weather drags Kenyan tea production lower
Kenya, the world's biggest exporter of black tea, has seen its January tea output fall by 14% from a year earlier on poorer weather. Output from the East African country declined to 25.5 million kilograms from 29.7 million kilograms in 2008. Dry, sunny weather dampened output east of the Rift valley by more than a third to 10 million kilograms. The decline in Kenyan crops boosted average prices to a record $2.33 a kilogram last year from $1.76 a kilogram in 2007.
India's tea industry to weather recession
Tea Board of India chairman Basudeb Banerjee, speaking at the inauguration of India's International Tea Convention, assured attendees that global economic recession would not affect the country's tea industry. Stating previous experiences, he said though the economic slowdown would create some initial difficulties, it would be helpful for the industry at the end. In his speech, Banerjee stressed the need of government investments to develop tea processing and research. He also called for Geographical Indication protection for tea from Nilgiris and Wayanad regions.
International Tea Convention opens in India
The India International Tea Convention, an initiative of Tea Board of India in collaboration with various stakeholders of Indian tea industry, will be held from February 19 to 21 at Kochi. The event aims to highlight the quality and variety of Indian tea for domestic and international buyers. It will feature six business sessions, a tasting session, an award show and an exhibition, attracting leading international tea experts and businesses. India is the largest producer and one of the largest exporters of black tea in the world.
Assam tea producers look for tax relief
Tea producers of the famous Assam region in India have asked the local government for tax relief to counter rising production costs and low margins, which have plagued the industry in recent years. Indian Tea Association, representing leading planters of the region, has requested a total withdrawal of agricultural income tax on tea in Assam, or at least its suspension for at least six years. The industry is also seeking to decrease the VAT rate of tea, as well as food subsidies for its workers.
Russian tea imports poised for growth in 2009
Russia plans to increase its purchases of tea by 5% this year, as the economic slowdown takes its toll on beverage consumption patterns, according to an industry lobby group. The world's largest tea importer is said to raise imports from 178,000 to 187,000 tons in 2009 due to falling demand for more expensive drinks, such as juices and energy drinks. Russia hopes to increase export volumes by up to 2,000 tons in the same period.
Georgia in national tea brand push
Georgian government plans to revive the once vibrant tea industry by merging several tea companies to establish a renowned national brand. The Ministry of Agriculture hopes such a move will boost exports and produce higher revenues for the sector. Georgia's total output was a mere 5,000 tons in 2008, compared to 23,000 tons in 2001 and over 500,000 tons during the Soviet era, when it was the world's fourth largest tea producer. Currently, 90 percent of the tea consumed in Georgia is imported, according to official statistics.
Tea flavored ginger ale voted Product of the Year
The inaugural Product of the Year program, established in France 22 ago and being held in 28 different countries each year, has honored the Canada Dry Green Tea Ginger Ale as beverage of the year. The largest and most representative consumer-voted program in North America singled out 16 products from eight different consumer products goods companies that will have the right to display the distinctive Product of the Year logo in 2009. TNS, a leading market information group, polled the thoughts and opinions of more than 100,000 consumers, who voted on more than 40 entries from a variety of categories.
Vietnam sees robust growth ahead for its tea sector
Government officials plan to increase tea exports to 117 thousand tonnes in 2009, generating a revenue of $167 million, equal to a 13% jump. Despite the economic slowdown, new markets such as Germany, the Netherlands, Poland and the United Arab Emirates are expected to provide growth, as well as a research boost to diversify varieties and adapt to customer taste. Vietnam ranks fifth in the world in terms of tea output and exports, having exported over $140 million worth of tea last year.
Iran chooses the euro to pay for Indian tea
Iran has announced its intention to switch from US dollars to euros for tea imported from India. Iran imports around 12 million kg of tea every year from India at an average price of $2.22 or €1.64 per kilogram. The change will take effect on the 15th of January.
Pakistan's imports decline by a fifth
During the month of December 2008, Pakistan's imports declined by 19,8 percent, Pakistan Tea Association has reported. The world's third largest importer brought in 5332 metric tonnes of black tea worth $10 million, compared to 7982 metric tonnes a year earlier. However, it was noted that overall tea consumption has increased in the country during 2008. Pakistan imports the majority of its stock from Kenya.
Effectiveness of Fair Trade tea in doubt
The relevance of Fair Trade certification was cast into doubt after a study of several tea estates in various tea producing countries revealed deficiencies in management practices. The report, carried out by The Times newspaper, suggests that the Fairtrade Foundation is struggling to change entrenched practices on tea estates and tackle abuses of its certification standards.
Rwandan output to increase in 2009
Rwanda Tea Association predicts that country's tea production will grow by a healthy 28% in 2009 due to improved yields. Total production is likely to reach 23 million kg over the next twelve months, compared to 18 million kg this year. Export earnings may rise to $54 million, from $42 million a year earlier, helped by improved packaging. The central African country’s production is currently sold in bulk through the Mombasa Tea Auction in neighboring Kenya.
Uganda gets Danish funding to upgrade processing
Smallholder tea growers in Uganda have secured an $8 million interest-free loan from the Denmark to purchase tea processing machines. The loan, from the Danish International Development Agency, is expected to bolster the sector’s processing capacity, which has recently experienced increased harvest volumes, without having the necessary processing capabilities. Uganda currently has 24,000 hectares of tea plantations and has exported 41 million kg of tea in 2007.
India’s tea exports to the West drop
The Tea Association of India has announced that the global economic crisis has adversely affected the export of tea to the United Kingdom, Russia and other European countries. Although this year’s exports reached 156 million kg compared to 140 million kg last year, this upward trend has dramatically slowed down in the past couple of months owing to economic uncertainty. Domestic tea prices remain under pressure because of declining exports in the recent past, creating an oversupply in the domestic market.
Sri Lanka in commodities exchange program
In a push to bring down production costs, Sri Lankan government is in talks with Russia, Kazakhstan and countries in the Middle East to exchange tea for essential commodities. The country is looking for materials like oil and fertilizer to prop up the ailing smallholder tea industry, where the output of tea per hectare has fallen more than 50% in the last six months. There are more than 500,000 tea small holders, and more than three million Sri Lankans depend on the tea industry, directly or indirectly, for their livelihood.
India's tea trade with Pakistan not affected
The recent terrorist attacks in Mumbai have not caused a slowdown in tea trade between India and Pakistan as was previously expected, the Union Minister of State for Commerce and Power said. Jairam Ramesh pointed out that trade was continuing as usual and expressed his hopes to increase exports to Pakistan to at least 30 million kg, from the current 12 million kg. An invitation has also been extended to the Pakistan importers to participate in the India International Trade Fair, scheduled to be held in Kochi between February 19 and 21.
Production shortfall signals price rise in India
The Tea Association of India released figures which suggest a price increase due to a shortfall in production. Consumption is estimated at 825 million kg, exports at 200 million kg and imports at 20 million kg, whereas total output should only reach 962 million kg for the current year. That represents a deficit of around 40 million kg. However, the chairman of Indian Tea Association hopes tea prices will stabilize in 2009, pointing to a strong opening of the new season in Spring.
World Tea Expo looks to buck economic trend
Despite current economic climate, the World Tea Expo hopes to attract a record number of visitors to next year's event. Organizers are preparing for an unprecedented interest on behalf of entrepreneurs looking to start a business in the booming specialty and premium tea market in 2009 and beyond. The World Tea Expo, held in Las Vegas in May, will feature nearly 400 leading companies from the specialty tea sector, as well as various events and workshops.
Assam tea gets Geographical Indication
In a move to bolster the image and quality of Assam tea in foreign markets, a Geographical Indication was formally launched for Assam Orthodox variety in India. Accounting for ten percent of Assam's total tea output and almost entirely exported, Assam Orthodox tea will be guarded by an agreement protecting the quality and distinctiveness of this regional produce. India thereby expects to obtain a Geographical Indication registration in the European Union by 2010.
India's exports dip after fall in demand
India's exports fell 5% in October as demand from the West slowed down. Total exports during October were 16.55 million kg, compared with 17.45 million kg a year ago, due to shipment delays from countries like Russia, the UK and Germany. The dip is likely to be short lived and the Tea Board of India still expects yearly exports to meet the 200 million kg target. Country's plantations have also recorded a rise in production for October, with a yearly growth rate of 11% to reach 125.8 million kg.
Darjeeling tea expects EU protection nod
India is likely to gain the coveted EU regional food certification for one of its key exports - tea from the famous Darjeeling region in West Bengal. The European Union's protected designation of origin status encompasses more than 800 regional foods and only allows products produced in the relevant regions according to traditional methods to carry respective local names. India will be only the second non-EU country to posses such protection after in was granted to Colombian coffee in 2007.
India attacks dent Pakistan export target
After the attacks in Mumbai, India's target of tripling exports to the key market of Pakistan looks increasingly out of reach as trade ties are being threatened. India, the world's biggest producer, planned to boost sales to Pakistan to more than 20 million kilograms in the next three years to reach ten percent of total output. Yet amid rising tensions with Pakistan, the world's third largest buyer, the Tea Board of India admits that reaching this goal will be very difficult and could cause plans to diversify away from traditional market such as Russia to derail.
E-auctions of tea launched in India
The Tea Board of India has launched the first e-auction of tea in the headquarters of country’s largest tea auction firm, J Thomas & Co. The country has seven auction centers located at Guwahati, Siliguri, Jalpaiguri, Kolkata, Coimbatore, Coonoor and Kochi, where the online trading platform will be gradually introduced throughout December and January. Organizers hope the project will bring transparency in the auction system and guarantee fair prices for sellers. India has an export target of 210 million kilograms of tea for 2009.
Consecutive drop for Kenya's tea prices
Kenyan tea prices continued their fall for the fourth straight week in tea auctions, while demand showed signs of recovery in the port city of Mombasa. Kenya is the world's biggest exporter of black tea and has forecast a record 50 billion shillings worth of sales from the sector in 2008. Most active packers were from Afghanistan and Egypt.
Technology to help India prop up tea cultivation
The Tea Board of India is turning towards modern tea processing machines as a solution to the crisis that has gripped the country's tea industry. It is in talks with IIT Kharapgur, a technology institue, to help replace the 150 year old machines used for tea processing with modern equipment that will shorten the processing time in half, thereby reducing energy consumption. A report submitted by the Board to the institute mentions that many gardens in Darjeeling, Dooars and Assam regions are closing down due to high production costs.
Sri Lanka's exports dented by global slowdown
According to Sri Lanka's foreign minister, the country's plans to export $2 billion worth of tea in 2010 are looking increasingly out of reach as global economic slowdown takes its toll on its main agricultural export. The island's government is seeking support from "friendly" countries such as Egypt, Iran, Russia, Saudi Arabia and Iraq to promote tea exports and maintain price stability. The billion dollar industry accounts for more than two-thirds of the country's agricultural export earnings, contributing about 4 per cent to the GDP.
Sri Lanka to cut production amidst global slowdown
Sri Lanka, the world's fourth-biggest tea grower, announced plans to cut production due to the credit crisis and global economic slowdown. Tea prices have dropped by as much as 40 percent in the past month in Colombo as Russia and countries in the Middle East, Sri Lanka's biggest buyers, reduced purchases because of slowing demand. The Sri Lanka Tea Board has asked plantations to reduce production of cheaper grades of tea and is introducing plans to put forward 5 billion rupees ($46 million) to buy tea and support prices.
Electronic device to measure quality of tea
An electronic nose and vision (ENV) system is to be introduced to help manufacturers monitor the quality of their crop. The device, which is currently being tested in India and Kenya, is capable of measuring the aroma, color, appearance and other quality parameters of both finished and 'in-process' tea and is likely to be commercially launched within a year. Industry insiders hope such a system will help manufacturers reach uniform quality and enable proper grading of their produce.
Kenya aims for record tea earnings
According to the Tea Board of Kenya, tea earnings could reach $684 million in 2008, despite lower production and continuing tea uprooting. The world's leading exporter of black tea expects output to drop to 335 million kg this year, compared with 369 million produced last year, yet hopes higher prices and strong dollar will offset the fall in production. Also, the country is currently dealing with tea uprooting, where farmers are replacing tea bushes with other horticultural crops such as French beans and celery, which yield higher returns.
India's output predicted to drop in 2009
As announced by the chairman of India's Tea Association, country's plantations will experience a shortfall of at least 75 million kg of tea to kickstart the next tea season in April 2009. Production is forecast to remain stagnant, as both domestic and export demands are expected to rise by about 35 million kg. The association also pointed out that there would be no carryover stock for next year, which could drive up prices.
Record tea revenue for Sri Lanka
Sri Lanka's Tea Board predicts that 2008 will be a record year in terms of tea revenues with an estimated $1.4 billion in sales. According to officials, the world's highest average auction price (at $3.06 per kilo - a 31% yearly increase), a lack of labor problems and increased production will contribute to record earnings. Tea is Sri Lanka's largest agricultural export, totaling 147 million kg last year.
Tea Council awards scolarship to LA film student
The Tea Council of the USA has announced that John Ford, 26, of Los Angeles, CA won a $20,000 scholarship in a nationwide competition meant to educate America's young people on the health-related benefits of drinking tea, specifically black, green, white or oolong tea, all from the Camellia sinensis plant. John's video, called "Interrogation", was inspired by John's father, a retired FBI agent, who to this day can't seem to shake the habit of interrogating everyone, including the cat. It depicts two misinformed police detectives interrogating a cup of tea, thus creating the argument that drinking tea is bad while stating the health benefits and realizing in the process that tea is actually good for you.
India's tea goes green
India's Tea Board has announced plans to invest $2 million in green energy initiatives in the next four years. The goal is to cut carbon dioxide emissions by 20 percent by 2012 using solar thermal technology to reduce wood consumption, which is mainly used to generate heat to dry tea leaves. Currently about 120,000 tea estates in south India generate more than 750,000 tonnes of carbon dioxide emissions per year.
India and Sri Lanka sign import deal
India and Sri Lanka, two of the world's largest tea exporters, have reached an agreement on tea imports coming into both countries. The mutual recognition agreement for tea trade was signed between the Tea Board of India and Tea Board of Sri Lanka in Calcutta, India. The deal will allow free flow of tea between India and Sri Lanka without having to go through the process of testing (recognising tea tasting in the laboratories of the two countries) and will aim to facilitate blending, value-addition and re-export for their respective growers and manufacturers. Sri Lanka's orthodox tea exports were worth $1.2 billion last year, whereas India's total tea exports amounted to about $500 million in the same period.
West Bengal tea workers in wage hike deal
An agreement was reached between tea garden owners and workers organization in respect to higher wages for tea workers in West Bengal. About 300,000 workers in 350 tea gardens in Darjeeling, Dooar and Terai regions, which produce about one fifth of India's total output, will benefit from an additional 13.10 rupees ($0.30; £0.16) on their daily wage over the course of next three years starting from April 2008. The workers held a one-day token strike on August 11 demanding higher wages.
African tea prices soar to record highs
As reported by Mombasa-based African Tea Brokers Ltd., African tea prices jumped two percent to reach a record at this week's sale in Kenya. The average price rose to $2.58 a kilogram at the sale held on Aug. 11 and Aug. 12, from $2.53 a week earlier. The weekly auctions sell tea not only from Kenya, but from most African producers such as Uganda, Zaire or Zimbabwe, excluding South Africa and West African countries.
India's exports share falls
Indian tea production, which represents approximately 25 percent of global tea crop, is losing ground in almost every export market. A new study suggests it only amounts to ten percent of the global export market and has halved since 1994. In the early 1980s, India's tea exports accounted for 40 per cent of the domestic production, which subsequently declined to 20 per cent in 1994. Furthermore, the country's tea exports have taken a 29 percent dive in 2007-2008, triggered by a collapse of major global markets such as Iraq and a rise in production in countries like Kenya and Turkey.
India's exports decline in '08
The Tea Board of India has announced an unexpected decline in country's exports for the 2007-2008 period. According to statistics, the drop represents 32.83 million kg compared to the previous fiscal year and is due to lower exports to Iraq, Pakistan, Kenya, the U.K. and Afghanistan. The wide difference that was observed between the estimates and the final figures is attributed to non-submission of export information by tea exporters at the time of estimation of monthly exports for different months of the year.
Kenya's crop in 21% drop
The Tea Board of Kenya expects country's tea production to fall by 21 percent in the first six months of 2008 due to frosts and droughts in several growing areas. This year's output stands at 157 million kg so far, compared to 198 million in the same period last year. However, Kenya looks forward to only a nine percent decrease in full year of 2008 and hopes Autumn's rainy season will help buck the trend. Output in 2008 is expected to decrease to 335 million kg from a record 369 million last year.
Large beverage companies to look abroad for growth
According to a new report published by Fitch Ratings, a credit rating agency, weak US market trends will force large beverage companies to increasingly rely on international expansion, rather than on stagnating domestic demand. The agency notes that the US non-alcoholic beverage market is mature, with low volume growth and high pro capita consumption, and that current economic downturn represents a further blow to its future prospects. Fitch identified companies in booming energy drinks and tea segments as likely takeover candidates, although warned that the limited number of acquisition targets would make meaningful continued volume growth difficult to achieve.
Better branding for Kenyan tea
Kenyan government has pledged 200 million shillings ($3 m) in an attempt to bolster the ailing image of local tea. The goal is to improve the reputation of quality crops, which are sometimes blended with lower quality tea, and to focus on Kenyan tea as a brand. Farmers are thereby set to benefit directly from maximized earnings. A parliamentary motion calling for a fund to protect farmers from price fluctuations was also announced by the ministry of agriculture.
India opts for tougher export regulation
In an effort to stop low quality tea taking a toll on its exports, India has announced plans to put together a governmental policy aimed at ensuring a quality standard for tea exported abroad. The regulatory framework would set a benchmark price for tea exports in an effort to keep a check on quality. The move comes in response to a nearly 30% plunge in exports in 2007, mainly due to instability in Iraq and an appreciating Rupee. As the world's fourth largest tea exporter, India exports the bulk of its tea to Russia, United Arab Emirates and United Kingdom, and anticipates exports to reach 190 million kilograms in 2008.
Darjeeling production plumets
It is reported that tea production from the world-famous Darjeeling region of India has declined as much as 30% this year. The Darjeeling Tea Board, which announced the figure on Friday, cited bad weather and political unrest as the main causes for this severe dip in production.
Famous tea bags turn 100
The tea bag is celebrating it's 100th birthday this month. It was invented by Thomas Sullivan, albeit accidentally, in 1908. The tea merchant used leaves packaged in pouches to send out as samples to potential customers, who, in turn, steeped them directly in hot water. The process was later introduced to the mass-market by Tetley Teas and remains the prevalent method of consuming tea in the West.
India's tea trade goes digital
India's tea auctions are switching to digital trading in an initiative by India's Tea Board to modernize the industry and counter slumping tea prices. It sees it as a bold move to achieve higher volumes and help planters who have been hit hard by plummeting value of tea, since electronic trading is expected to ensure fairer prices and lower transaction costs. Such a platform also reduces the need to rely on brokers on the ground, enabling direct trade between plantations and buyers. As a result, companies like Tata Tea and Unilever, who collectively control nearly half of the market, are said to benefit from better purchasing coordination and savings on labor costs.
Sri Lanka's exports predicted to grow in 2008
Colombo Tea Traders' Association has recently announced that it expects Sri Lanka's tea exports to grow by fifteen percent in 2008. The optimistic projections come after a record-breaking year for the country, which saw increased demand from countries like Libya, Russia and Iran drive national exports past the $1 billion mark.
India moves to rejuvenate tea plantations
Tea Association of India and the Union Minister of State for Commerce have joined in an initiative to create a Special Purpose Tea Fund aimed at reviving India’s ailing tea plantations. This comes as a response to an estimated 38% of the country’s tea area relying on old aged tea bushes, which negatively affects tea output and quality. Large scale up-rooting and rejuvenation projects are planned to counter the trend, supported by bank loans at concessional rates and other subsidies.
World Tea Expo to focus on better education
World Tea Expo plans to expand its educational program at this year’s event held in Las Vegas, NV from May 30th to June 1st. In light of tea’s surging popularity as a hot or cold beverage and as an ingredient in areas ranging from food to cosmetics, the event will feature a conference on major topics related to the tea industry and will be accompanied by a series of specialized workshops and seminars designed for a wide audience of professionals. The educational program will include courses on management, tasting, brewing and serving tea for tea room owners and retailers, as well as content specifically designed for executives and researchers.
Political crisis to impact Kenya’s tea industry
After weeks of unrest, resulting from a political power struggle between the incumbent Kibaki and the opposition leader Odinga, rioting and displacement across Kenya are taking their toll on its vital tea industry. With workers fleeing the plantations and disruptions in the transport system, the recent turmoil comes as a further blow to Kenya’s tea industry, which already had to cope with crop failures caused by droughts in recent years. As the output of world’s largest tea exporter is set to be negatively affected in 2008, countries like India and Sri Lanka look to benefit from the shortfall to strengthen their exports.
Yunnan traditional tea to apply for heritage list
Global Tea Forum 2008 to be held in Dubai
India faces tea shortage due to surging demand
India announces huge package to revive tea industry
Indian tea exporters plan to cash in on droughts in Kenya
Russia agrees to scrap tea import duties
Lanka sees record tea crop, lower prices
STI Adds Third Level of Instruction
Indian Growers Eyeing Japanese Market
Harvesting Tourist Dollars in Tea Gardens
Vietnam's Tea Exports Down by Quarter
UK Coffee Overtakes Tea
For the first time, annual UK sales of instant coffee have marginally eclipsed those of standard tea. Some tea packers concede this is the latest development in a slow, but resolute decline in traditional (mostly black and unflavored) teas. Premier Foods, which owns the legendary Typhoo tea brand, announced tea sales in the first six months of the year were down 9%, noting this reflects a similar decline right across the mainstream tea market. Meanwhile the Typhoo brand has reportedly been put up for sale.
Vietnamese Tea Industry Growing Pains
Chinese Tea Consumption Slows, Coffee Gains Momentum
Nepalese Tea Industry Pushes for Branding and Sales
Major Indian Tea Producers Selling Estates to Focus on Brands
Some of India's top tea firms are spinning off their tea plantations to focus on their brands in a bid to boost profits. India which is one of the world’s top tea producers has been nagged by falling prices, labor troubles and competition from its main rivals, and relatively new producers including Vietnam. India's two top tea conglomerates are planning to revitalize brands such as Tetley, Lipton and Brooke Bond sold within India. Tata Tea Ltd., the world's second largest tea enterprise, has already off numerous factories and 7,000 hectares of gardens into separate wholly-owned entities.
Celebrities Help Green Tea Sales Boom
Green tea sales in the UK have soared due in part to celebrity endorsements from celebrity stars such as Jennifer Lopez and Gwyneth Paltrow. Combined with the widely publicized health benefits of drinking green tea sales of green tea are booming. American ready-to-drink giant AriZona has benefited most with sales in the UK climbing by 125 per cent in the past five months. Bill Gorman, executive director of the Tea Council notes UK consumers are interested in the health benefits of green tea and some boredom with bottled waters. Home delivery of AriZona teas is available in some part of the UK, making it exceptionally easy for consumers to obtain green tea beverages.
Competition Softens Some Indian Tea Exports
Severe competition in the world tea market from super-producers such as Kenya, Indonesia and Sri Lanka continue to soften some Indian tea exports without any signs of near-term improvement. Greater imports of low cost teas tea have also depressed the domestic market. For decades Indian producers reigned over many foreign markets where they now face very tough competition. Within Kerala favorable weather conditions and sophisticated farming technologies has raised production despite shutting down of a number of estates.
Coffee Claims Top Antioxidant Spot
Researchers at the University of Scranton, Pennsylvania, reveal coffee to be the main source of antioxidants in the American diet. The researchers looked at the antioxidant content of more than 100 different food items and at the consumption of each by the American public. According to this study coffee appears to be the number one source of antioxidants, being enjoyed by over half of the population each day. Tea came in at number two, followed by bananas, beans and corn.
Americans Don't Care for Green Tea
Surveys by the American Institute for Cancer Research show that green tea is the least popular nonalcoholic beverage in the United States. An AICR survey of 1,008 Americans telephoned at random found that green tea is the least popular non-alcoholic beverage in the United States. This was echoed by a separate AICR survey of 1,016 Americans which revealed that only 8 percent of Americans say they drink green tea regularly (5 or more times a week).
Specialty Tea Sales Driving $6.8 Billion Tea Market
U.S. consumers gravitating toward more exotic tea blends are fueling a tea market worth $6.8 billion, according to The U.S. Market for Tea and Ready-to-Drink Tea, a new report from market research publisher Packaged Facts. As traditional black tea sales decline, specialty tea sales continue to grow. The new report covers market share by company and brand, profiles major tea marketers and smaller up-and-comers, delves into the consumer behavior of the tea drinker, and forecasts trends that will affect the tea market over the next five years.
UK Tea Market Increasingly Complex & Competitive
The UK tea marketplace is increasingly complex and very competitive according to numerous reports. While traditional black tea is facing declining sales, specialty fruit, herbal and exotic black teas are rising. The major tea players who have long dominated the UK tea market are re-positioning brands, adding new varieties and reaching out to younger consumers with a variety of promotional schemes. Market share leader Tetley, accounts for 27% of retail sales.
Summer Heat Creating Iced Tea Wave
The Chicago Sun Times reports summer iced tea demand is brisk, and recipes for various iced teas are diverse and abundant. With an estimated 80 percent of the tea consumed in the United States prepared as iced tea (according to the Tea Council of the USA), demand for iced tea products and recipes is booming as temperatures rise across the nation. The article notes various celebrities, brewing methods and recipes for America's favorite form of brewed tea.
Black Tea Also Popular in Japan
Market analysts Paul Yamaguchi, president of Paul Yamaguchi & Associates, Inc., Tarrytown, New York, reports 'black foods' (vinegar, soy products, condiments, sesame seeds, etc.) including black tea, are a vibrant product category in Japan. Yamaguchi notes aged black (Pu-her) teas from China are very popular in Japan currently. Yamaguchi & Associates estimates the Japanese market for 'black foods' including teas at over $500 million annually.
Japanese RTD Market Heats Up
The intensely competitive marketplace for bottled teas, especially green teas, is getting hotter as competitors pull out the stops to boost market share. As ready-to-drink coffee and carbonated drinks have shown minimal growth recently, Japanese bottled tea offerings are focusing on their time-honored ingredient - green tea. Coca-Cola, Kirin, Ito En and other RTD beverage super-producers are predicted to enjoy sales volumes up 20 percent over last year with some analysts forecasting the market will expand to 1 trillion yen. Promotional budgets for RTD green tea offerings are also reaching record levels as manufacturers note that green tea has plenty of room to reach all Japanese consumers.
International Tea Conference
The 2005 China International Tea Conference is scheduled for September 28-29 in Hangzhou, capital of east China's Zhejiang Province. The event will host major tea producers and focus on the supply, demand, production and marketing of native teas, according to Cao Xumin, director of the China Chamber of Commerce of Importers and Exporters of Foodstuffs, Native Produce and Animal By-Products. Representatives and experts from the International Tea Commission, EU Tea Commission and the Japanese Trade Promotion Association will make keynote speeches at the upcoming conference.
World Tea Production a Record
According to information being presented this month at the Intergovernmental Group on Tea meeting in Bali (20-22 July 2005), global tea production continued to reach new highs in 2004, when output grew by 2 percent to reach an estimated 3.2 million metric tons. Government and tea industry officials are meeting to discuss the world tea industry, including findings from a new Food & Agricultural Organization of the United Nations report prepared for the meeting, and review the current world tea market and its medium-term outlook.
Retail Market: $1.7 Billion Plus
Marketing research company Mintel has published a new business report on the US tea industry. The report includes future forecasts combined with independently compiled data and unique consumer research. This information filled report is primarily focused on tea products sold through food, drug and mass market channels. According to Mintel, Tea is a $1.7 billion category whose growth is driven by health factors and continued innovation. Manufacturers have stepped up to the plate by offering consumers a vast range of choices in their tea beverages. Not only are RTD teas available in numerous formulas and flavors, but bag/loose tea has delved into the realm of higher quality. Tea has also become the hip and trendy new beverage, a “must-have” for any kitchen. With something for everybody, the tea category is estimated to grow even faster in 2005, as more consumers flock to this category, which is far from saturated.
Green Tea Booming in Korea
Koreans are consuming record levels of products made from green tea. More than 20 domestic beverage manufacturers are marketing over 30 types of green tea beverages, with annual sales estimated at $30 million. Baskin-Robbins and Hagen-Dazs in Korea are selling green tea ice crème, while other companies are marketing green tea cookies, candies, noodles, traditional liquors and cosmetics.
Rooibos Trademark Liberated
An expensive and stressful battle involving the word 'rooibos' has ended. Claimants have agreed to the 'voluntary and unconditional cancellation' of the registration of the word 'rooibos' in the US and in other countries around the world. "The tea industry is now free to use the word 'rooibos' on packaging and promotions without the threat of a lawsuit," says Hugh Lamond, California-based Rooibos importer.
Traditional Cuppa Lukewarm, Specialty Teas
According to the analysts at Mintel International Group, sales of standard tea bags in the U.K. sank by 16 per cent and loose tea by 9 per cent between 2002-2004, while sales of herbal and fruit teas rose by 30 per cent during the same period. Specialty varieties such as green tea sold a whopping 50 per cent more over the same period. While tea overall remains the U.K.’s beverage of choice, the Mintel findings suggests traditional tea varieties are facing tough competition from other hot beverages such as coffee, and also soft drinks, bottled waters and fruit juices.
Tea Futures Trade
An organization called "The Multi Commodity Exchange" (MCX) plans to launch futures trading in tea with support from United Planters' Association of Southern India (UPASI). Tea futures trade will afford tea companies, exporters and traders some safeguards against unwieldy price fluctuations. India is among the world's largest tea producers accounting for upwards of 28 per cent of global production. While a number of attempts at both futures trading – speculative buying and selling of a commodity based on future prices – and electronic tea exchanges ("B-2-B" business-to-business) have been launched in recent years, success so far has been nominal.