Notes from Tea & Coffee World Cup in Vienna
A brief account of the Tea and Coffee World Cup that was held in Vienna, Austria, and why the participants are excited about the prospects of gourmet tea in Europe.
The Tea & Coffee World Cup Europe has always held a special place on the trade show calendar. It is the only large specialized tea exhibition in Europe and also the only one that attracts an international crowd of exhibitors and attendees. However, the principal reason why this trade show is worth visiting is the fact that it is aimed towards business-to-business trade. Contrary to most other expos during the year on both sides of the Atlantic, attended mainly by exhibiting tea manufacturers (or marketers, as they are known in some circles) and visiting gourmet food retailers and buyers, the stands at this event are populated by suppliers of goods and services for every stage of tea commercialization process. It is the insiders trade show, where the pavilion buzzes with tea growers from four corners of the globe, tea and herb wholesalers, packaging material, machinery and flavor suppliers, and many other related organizations and companies
Benefiting from Viennas central location between Eastern and Western Europe and a backdrop of astounding architecture, from classicist buildings to modern structures scattered over the former capital of the Austro-Hungarian Empire, this show left no boxes unchecked in terms of the variety of exhibitors and special events. To complement the wide array of companies present, Lockwood Publications, the organizer of the event, put together a comprehensive program of seminars, cuppings and even a symbolic tea auction in partnership with the Indian Tea Association.
After a sober event last year, mainly due to the credit crunch that had gripped the economy and affected the tea trade, this years attendees were humming with cautious optimism, which, keeping in mind the uncertain situation of some European economies (sovereign debt concerns in Greece, Spain, Ireland, Italy and Portugal spring to mind), did not seem that cautious at all. One source of enthusiasm was a gradual recovery of the European consumer, who is finally prepared to reopen his pockets and spend more on everyday luxuries like tea. This was particularly evident on many curious faces of store managers and buyers, tirelessly scavenging the stands for novel products and ideas with added value for their customers. Whether it was a new tea blend, an exotic herb or a novel packaging solution, it seemed like tea fever had gripped them all.
The unusual fact was that a large portion of those buyers did not come from Western European countries, typically known for higher disposable incomes and greater premium tea consumption, but from countries like Hungary, Czech Republic, Poland and Romania. Gone were the days when clients from ex-Soviet countries would arrive accompanied by bodyguards to buy tea directly at the show paying in cash, of course. The new buyer from Eastern Europe is entrepreneurial and open-minded, looking to source sophisticated products that would invigorate an aspiring class of shoppers, which was left out for too long behind the iron curtain without a good cuppa. This can be seen as a clear signal that the balance of gourmet tea consumption is shifting eastwards, opening up new growth-driven markets that have been slipping under the radar for quite some time now.
But the main cause for cheerful mood among the exhibitors had less to do with economy - it was really all about the resurging popularity of gourmet tea across Europe. The most somber predictions depicting customers scaling down on the quality of their tea amidst the economic uncertainty have turned out to be false, as specialty tea sales have blossomed. For example, the United Kingdom, one of the highest per capita consumers of tea in the world, experienced a 7% rise in sales in value of premium tea last year, compared with a mere 0.4% expansion of the overall tea market (which is already over-saturated with poor quality produce). It seems that offer diversification, product innovation and increased health awareness, three pillars of the gourmet tea trade that have been perfected during several years, are finally paying dividends. Granted, the Europeans are about a decade behind their American counterparts when it comes to embracing a beverage that is so multifaceted, great tasting and cheap (on a per cup basis), yet only few could have predicted that this would happen during one of the worst economic recessions in recent history.
So how does this good news affect the various players in the tea arena? Naturally, tea growers and suppliers are finding more clients for their crops. They are also sourcing better teas and insisting on higher quality standards that the modern shopper has grown accustomed to. But it doesnt stop there. Tea packing machine manufacturers and pyramid tea bag makers (a large triangular bag is necessary to allow the large leaves that characterize whole-leaf tea to expand correctly) are more than happy to see clients ordering better equipment and accessories to cater to drinkers who like to enjoy gourmet tea, while not compromising on the convenience of a tea bag. Same goes for flavor and herb suppliers, whose services are widely used by manufacturers to recruit new drinkers by means of enticing or exotic blends that unflavored tea leaves do not possess. Finally, there is an array of auxiliary companies orbiting the tea microcosm, from manufacturers of niche varieties such as Matcha or Rooibos, to organic and ethical standards organizations, to various tea boards and associations all looking to add their touch to the diversity of the universe of tea.
And it is clearly the end-consumer who is benefiting from this situation the most. Every company in the tea trade is bending over backwards to satisfy his every desire with an eye on keeping the nascent specialty tea trend alive and kicking, which will inevitably lead to more innovation, choice and ultimately better prices. Considering the Greek debt crisis taking place simultaneously, and its effects on the Euro and other Euro-bloc nations in similar situation, the sight of all of the participants pulling off such a difficult act in good mood and with a positive spirit on the exhibition floor in Vienna was truly inspiring.
Stepas Parulis is TeaTrend's editor and oversees Adagio's operations in Europe. He analyzes the tea industry through the prism of market and consumer trends.