The Dubai Tea Trade Centre defies traditional business practices according to an article in the Dubai-based Gulf News. The article pointed out that the Dubai Tea Trade Centre challenges more traditional ways of conducting business, seeking to replace it with a more efficient model. While the tea trade has been conducted through auctions for decades, the center seeks to get buyer and seller together on the same platform, rather than try to set prices or take part in the negotiations.

The United States specialty tea marketplace is growing by double digits across most categories, according to the new version of the Tea Is "Hot" Report. The fully updated study goes on to observe new generation of tea-related products, technologies and services being rolled into the nation's stores and web sites at a very brisk pace. The generally stellar media image for all things 'tea' has carried over into every type of consumer product with a powerful, positive connotation that is boosting category sales. This bristling activity has now gotten the attention of major financial players pondering the perfect timing for investments, mergers and acquisitions.

The specialty tea market is still in a germinal, emerging phase of its growth cycle and the vibrancy of early stage entrepreneurial ventures has captured the attention of previously uninterested capital sources.

• Green, Rooibos (herbal tea), Organic & Flavored teas are steaming past most other specialty categories with sustainable, double-digit growth. Many specialty tea companies are reporting that the usual summer cycle slowdown was minimal and fall activity is already in high gear.
• Tea rooms, shops and cafes of every conceivable type are opening nationwide, but closures also remain consistent for smaller "mon-n-pop" operations. The iron-clad formula for the perfect US retail / food service tea operation remains elusive. A never ending search for the perfect balance between a relaxing environment and speedy brewing times for customers in a hurry remains pinnacle.
• Tea related technology, especially brewing and serving related, are driving consumers into the specialty tea category as innovation is improving brewed tea quality and reducing time needed to prepare the perfect cup of tea.
• Green / White Tea Sales 2003 vs. 2004: 15.9% Growth (natural supermarkets & food, drug and mass market retailers) Source: SPINS

What's new in Version 5.1: fully updated market sales channel & packaging type statistics, tea product types & more. View table of contents.

© 2005 Sage Group

A new mechanism has been found that might explain green tea's protective effects against cancer. A "promiscuous chaperone protein" has been discovered - so-called because it binds to many different cells and receptors in the body-known as hsp90, is involved in conferring green tea's protective effects.

A new study conducted by researchers at the University of Scranton suggests that tea might prevent diabetes and its ensuing complications, including cataracts. This new research has found that both green and black teas have been shown to decrease glucose levels which, in turn, affects other biochemical pathways that accelerate diabetic complications such as cataracts.

Merrill J. Fernando's, founder of leading Sri Lankan tea brand Dimlah Tea, is enjoying success in many international markets, especially Australia. Reportedly the brand imported $35 million worth of tea last year into the Australian market, thereby ranking it third in size only behind Lipton and Twinings. Dimlah proactively promotes not only the brand, but Ceylon teas and corporate social responsibility, including recent donations to the Tsunami relief efforts.

Lipton is introducing Premium Tea Pods, a new line of teas specially formulated for the Home Café single-cup brewing system. The new system purports to deliver a single cup of gourmet tea in less than a minute. The new pods are available in four flavors: English Estate, Vanilla Hazelnut, Raspberry Truffle and Citrus Blossom Green Tea.

Nestea, a subsidiary of the Coca-Cola Company, has rolled out a new product that contains an ingredient that delivers a colder taste than conventional soft drinks. The manufacturer claims that the beverage "refreshes from the inside out" and is targeted at younger consumers. The novel products are available in the US in two flavors, lemon green tea and lime. In Europe, Unilever Bestfoods has introduced a range of herbal teas in France spiced up with exotic flavors including licorice, orange peel and wild rose in the Maroc variety, mango in the Indes blend, and mocha in the Mexique offering.

A new generation of ultra-high technology "elder-tech" devices targeted at the world's senior citizen population is making waves. In Japan, an electronic teapot called the I-pot, is connected to the internet and notifies friends or relatives if a daily routine is skipped, thereby noting a possible problem; sort of a safety check-in for seniors living on their own without assisted care. The device was created by electronics-maker Zojirushi, Fujitsu Corp. and phone giant NTT.

Affinitea Brewing Technologies has released its patented Affinitea Tea Caddy. This revolutionary patented technology enables any espresso machine to brew high quality loose leaf tea. The novel technology enables foodservice companies the ability to brew loose-leaf tea beverages within 45 seconds. The Affinitea Beverage Infuser is a patented apparatus similar to an espresso machine coffee filter that allows the operator to provide customers either hot or iced brews in 30-45 seconds.

Rishi Tea has clearly positioned itself as a leader in the organic and fair-trade segment. Has this been the company's focus from inception?

From the start, Rishi's mission has been to deal directly with smallholder producers of connoisseur caliber teas and botanicals. The path of our mission led us to organic teas as we found that the best tasting and purest teas from most origins are organic.

Many people in our industry swore up and down that organic teas are inferior and more expensive than conventional teas. We never believed this and quickly realized that commonly held idea to be a fallacy only true to those brands and wholesalers dependent on the standard stocks of domestic brokers. Dealing directly with Asian producers allowed us to keep our organic prices in line with conventional premium tea prices by cutting out the middle men.

We also felt that much of the increased demand for tea was riding on the heels of medical reports. We recognized that our teas should not only taste good but should have a positive impact on the health of society and our environment. Fair Trade and Organic was a perfect fit with our philosophy and the demands of our customers.

Has anyone studied the affect of the pesticides found in conventional teas on the human body? Some have argued that the caffeine in tea might be more harmful. Is there any data to reconcile these views?

There have been reports that synthetic pesticides and chemical residues found in conventional tea "are not so bad" due to the fact that many are not water soluble and do not get into your cup. I think it is total rubbish. It only perpetuates the sort of non-sense that it is o.k. to go on polluting the environment and living conditions of the workers who pick our teas so long as the damage does not flow into our cups a world away.

We must think about the planet and those that live in the areas that make our teas. Even if synthetic chemicals (i.e. pesticides used in tea) do not cause "so much harm" to us we must think about the tea regions where the agri-chemical pollution truly takes its toll. These chemicals are not good for the land or the water supply so how could they be OK for us? There exists a choice and I think organic is the right choice for us and the planet.

US tea drinkers should be aware of the following before buying into the idea that chemical residues in tea are o.k. The EU has regulations on allowable residue levels in conventional teas that cover a broad range of common and not so common chemicals. The US does not have any regulations thereby teas that can not enter the EU because of high residue or impurity make their way into our cups in America. I think the US needs to regulate residues on imported food products like the EU. Tea is food and we should learn from the EU regulation. Until such time, I will stick with organic and low residue tested teas.

I think caffeine is a choice and can be a good thing or a bad thing based on your rate of consumption, diet and body constitution.

Tea has a more mild caffeine effect when compared to coffee. Tea also contains an amino acid known as L-theanine that relaxes the nervous system and contributes to the more relaxing effects of tea. It is known as a counter balance to caffeine and many feel that this is the key difference between the calm energy from tea and the hard coffee buzz. This is well noted in Japan and explains why most people do not fear the caffeine that comes with moderate tea consumption.

The idea that caffeine is as hazardous as chemical residues found in conventional tea seems crazy to me. I do not think anyone that knows the true facts about chemical pesticides and their impact on the planet and farm workers can say that the caffeine in tea is equally worrisome. I think that argument is weak.

Concern for the environment is luxury that the West adopted relatively recently. Are we being fair to the aspirations of the world's poor by applying our high standards to them so early in their development?

We have decimated forests and extracted resources with reckless abandon to achieve technological and economic dominance. Why should those in the so-called Third World not be allowed to follow our path?

I think it is pompous and totally unfair for the various illuminati to demand that people in the developing world remain in the Stone Age while our society continues to sacrifice the global environment to fuel our growth. These effete intellectuals continue to buy up tracts of virgin forests for their "natural preserves" that produce little more than a trickle of tourist cash for local people. This shallowness is quite different from the economic incentives offered by the organic trade movement.

I think organic trade will bolster growth for the developing world and not retard it. The organic movement encourages development and offers financial premiums and incentives for those in the developing world to produce what we, the rich Westerners, seem to want. The trend in US is toward organic and the producers must respond.

I think it is right for consumers to demand what they want from producers. Now, the market demands organic and many of the producing nations must deliver to survive and grow within the trend.

Maybe it is not fair but that is the way it is. I do not think that demanding organic is holding back the developing world's producers in any way. In fact, I see the opposite. Small holders that go organic tend to band together in order to strengthen their positions. Small holders that work together for organic production have a better chance at survival through joint networking and building long-term relationships with organic specific buyers. We have seen this within the Rishi supply chain and have never felt that demanding organic holds poor farmers back. Our organic farmers seem to have a more stable position and dependable prices than many of the conventional producers who are always at the whim of the spot buyers who are without loyalty or long-term relationships.

Organic certification of the farm and facilities is in many cases paid for by companies like Rishi and not the farmers. This encourages long-term relationships with farmers and helps to secure the farmers prices, position and sustainable development.

We as tea buyers or consumers can define quality as more than taste, aroma and leaf style. We can demand strict control of the agricultural inputs such as chemical pesticides and fertilizers. We can demand "organic", "shade grown" or "Fair Trade" products if that is what we want. The producers will provide the consumers what they demand, that is the nature of the marketplace, and I do not think we should feel guilty about that.

We are using the laws of economics to force change, conservation and organic development. The producers are getting paid for their goods. It is not the same as the tree huggers who demand that the cute, little, poor indigenous people remain stuck in their thatch huts only to preserve the Rainforests as theme parks and their so called "noble, un-spoiled identities" for rich tourists. Must they remain poor to be noble and true to their culture? I do not think so!

Most of the "utopian visionaries" in the conservation movement offer no economic development programs or viable means for the local people to enjoy sustainable economic growth. The organic movement offers much more than that. You can conserve natural resources and develop non-timber forestry products to bring economic prosperity to the developing world. In fact, many organic players like Rishi Tea, Forestrade and Guayaki Yerba Mate are able to use the revenue from organic, non-timber forestry products to support on-going conservation and sustainable development programs in the developing world. The organic movement, in my experience in fair and well suited to the needs of poor farmers.

A Napa Valley distillery has introduced a vodka infused with Chinese tea. The new product, called 'Charbay Tea Time', contains extractions of four tea varieties from China's Anhwei province. Master distiller Miles Karakasevic apparently spent three years sourcing the teas and perfecting his techniques for extracting and distilling them. "I wanted to highlight the delicacy, lightness and flavor of green tea, but in a martini or rocks glass," said Mr Karakasevic. "It was no small feat to combine the two distinctive worlds of tea and vodka."

East Indies Tea Co. has reportedly merged with German-based tea importer and blender Florapharm GmbH. According to an article in Gourmet News, groundwork for the merger began brewing at the first World Tea Expo in 2003. Both companies offer loose-leaf, bulk teas and also craft proprietary blends upon request. East Indies Tea was previously known as East Indies Coffee & Tea. East Indies Coffee Co., also does small-batch coffee roasting, and remains a separate entity based in Lebanon, Pennsylvania.

Starbucks Corp., noting a solid boost in its new green tea line and food-program enhancements, reported 7% growth in August same-store sales. The coffee-retailing giant said total sales for the four weeks ended Aug. 28 rose 21% to $508 million from $418 million a year earlier. For the 47 weeks of the fiscal year to date, Starbucks' same-store sales rose 8%. Total sales increased 22% to $5.7 billion from $4.7 billion for the same period in fiscal 2004.

Corporate conglomerate Tata Tea is close to acquiring two brands in North America in the range of $100 million each. Sources close to the development said the company has shortened their candidate list to a number of brands in the beverage industry, including flavored and herbal tea, with two deals reportedly very close. If closed, the takeovers would be part of the company’s broad acquisition plan, eventually costing as much as $1 billion, surpassing its $475 million acquisition of Tetley five years ago.

DSM Nutritional Products, the world’s leading producer of vitamins and carotenoids, has developed a patented process to further purify green tea extracts. This process permits concentration of the most important active principle of green tea, EGCG. EGCG is the most abundant catechin in green tea, and most of the scientifically validated health effects are attributed to this constituent. DSM offers this extract under the brand name TEAVIGO as an ingredient for foods, beverages and supplements. The company claims that while TEAVIGO contains the major benefits of pure green tea, it does not significantly alter color and taste of the food or beverage.

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.

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.

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.

Choice Organic Teas is introducing organic Fair Trade Certified White Tea to US consumers this October in tea bags and loose leaf. According to the company this is the first Fair Trade Certified White Tea to reach US consumers in tea bag form. Choice Organic White Tea is produced in the unique style known as White Peony. Choice Organic Teas became the first tea crafter in the US to Fair Trade certify all qualifying teas.

Teaology tea has introduced four organic hot tea flavors to compliment its line of travel iced tea mixes. Teaology hot teas, soon to be rolled out nationwide, will be available in recyclable boxes of 20 oxygen bleached tea bags, individually wrapped in biodegradable packaging, printed with soy based inks, and certified kosher. The four varieties include lemon myrtle kiwi green tea, grapefruit ginger yerba mate, pomegranate peach blueberry green tea, and zinc echinacea peppermint.

Celestial Seasonings introduces a new line of Organic Teas with four unique flavors: Decaf Lemon Myrtle Green Tea, Mango Darjeeling Black Tea, Vanilla Apple White Tea, and Sweet Clementine Chamomile Herb Tea. The company is also adding the organic version of its traditional Black and Green teas. Packaged in boxes of 10 tea bags, the new teas will be available in stores in the Fall of 2005. The new teas bring the overall number of varieties offered by Celestial Seasonings, a brand of The Hain Celestial Group, to more than 90.

a conversation about where the industry has been, where it's going, and the pitfalls to avoid along the way.

Tea's conquest of America has often been predicted. Earlier expectation, unfortunately, proved greatly exaggerated. Are we now finally seeing the fulfillment of this prophesy?

The word "conquest" seems much too strong when talking about tea. Tea influences; tea suggests; tea invites new consumers to discover its wonders. Tea appeals to the intellect, to consumers sensibilities. Like its flavor profile, tea takes a more subtle approach to market expansion. Tea prefers gradual gains to explosive growth and it prefers to win over consumer's minds & bodies as opposed to attacking its competitors.

It is a strategy that is a bit more "plodding" (deliberate) than many would like but it is steady and it is lasting. Over the last decade or two, tea has made many inroads into America driven by new forms, new availability, the promise of health benefits, the appeal of its varied flavor profiles, the promise of profitability, and its tremendous versatility.

While significant gains have already been made, the industry remains under-appreciated by many consumers and the "fight" to expand its presence in America has a very long way to go.

Political Science students have a saying that Brazil is the country of the future, and always will be. Are you not worried that tea's "civilized" pace may consign it to a similar role?

It has long been my contention that if our competitors had only half as much going for them that tea has going for it then they would command the marketplace. The Tea Industry is a conservative industry and has been since the beginnings of recorded time. While this has served to slow down its rate of growth it should be noted, with a bit of surprise, that next to water - tea is the most popular drink in the world.

Over the last decade or so tea has become more popular in the US as well spurred by new product innovations, the promise of health benefits, as well as the discovery of myriad flavors and variations from around the globe. Growth is not explosive but it has been steady and promises to be long lived.

So while the Tea Industry has virtually unlimited potential, it is also making solid gains in the area of beverage popularity. As time passes the very nature of the Tea Industry will change as non-traditional tea companies begin to market tea beverages or use tea as an ingredient in other products. As these changes occur, the speed of progress will inevitably increase spurred by entrepreneurs and innovators who have few, if any, ties to the traditions or culture of the old-line industry.

The entrepreneurs and innovators you describe are primarily engaged in the specialty tea segment. How much of that energy and vigor is reflected among the industry's more traditional players?

The Specialty Tea segment is fortunate to have its share of innovators and entrepreneurs although it accounts for only about 10% of the volume of the total market. It is interesting to note that one of the fastest growing segments of the market for tea and the single largest segment of the mass market is Ready-To-Drink. It accounts for about 40% of the market with an impressive amount of innovation and marketing pizzazz coming from traditional players and their soft drink partners as well as newly formed companies seeking to come into the marketplace.

The efforts on the part of the traditional marketers to capitalize on the health message for tea far out-pace anything that is happening on the Specialty side of the business. In fact, the health effort, which is credited for the revitalization of the tea industry, is entirely due to the efforts of the traditional tea industry.

The traditional segment is also responsible for establishing a selling environment that is conducive for the entire tea industry to flourish including the appeal of specialty teas. Were it not for their stabilization effect, today's market for tea would not be nearly as vibrant.

The Tea Industry is made up of many parts and its overall success or failure is dependent upon each of the component parts contributing to the well-being of the total entity.

Are there any pitfalls that you would advise the industry to avoid in order to realize the glorious future that is so often predicted?

While the future looks very bright for the entire Tea Industry, there are certainly issues that must be addressed if it is to continue to gain sales momentum and consumer interest.

The first cautionary note concerns the tea & health message. It has multiple parts.

1. The trade must exercise restraint in how it communicates that message to consumers.

a. It is dangerous to over-promise. If ever the industries conservative nature could serve it well, it is here. By making extravagant claims about the health contributions attributed to tea the message becomes watered down and becomes unbelievable. Stick to the facts and, whenever possible, quote some other medical authority, the Association, a specific study, or a particular article as opposed to embellishing what you think you know.

b. Be very careful about what you say on your packaging. By law, the only thing that we can currently say is to factually state what the antioxidant levels are on a per saving basis. No other comments about the health benefits of tea are approved by the government for use on packaging other than some very generic comments about the role of antioxidants in the diet. Companies going beyond these limits do so at their own risk but, more importantly, they risk generating negative publicity which could affect the entire industry - not just their own company.

c. Don't convert tea from a pleasurable beverage into a medicine. Remember the primary reason why consumers drink tea is because they like the taste or how it makes them feel. In all of your marketing efforts, the sensory appeal of tea should be the priority message with health playing an important secondary role.

d. Don't attempt to diagnose your consumer's medical conditions or offer advice about how tea may play a role in alleviating any condition. The only advice that is suitable under these conditions is to suggest that they follow the advice of their own medical doctors.

e. Whenever possible let the medical professionals and scientists talk to the media about the health benefits of tea as the message is perceived to be much more credible than if coming from someone with a vested interest in selling tea.

2. The second concern is relative to tea being sold away from home. I am not talking about the quality of tea being served in tea rooms because presumably it is of high quality and properly prepared. I am referring to the quality, preparation, and presentation of tea sold in diners, restaurants, hotels, and institutions across the US. In many cases it is far from ideal and serves to constrain the consumption of tea in these outlets.

The entire tea industry needs to be concerned with this issue and needs to be part of the solution; either directly through educational materials or indirectly through their complaints as consumers.

3. The next issue is one of social responsibility. In the past, allegations of the abuses of the rights of workers, especially children, have been made by various authorities. While the allegations have never been proven they could generate negative publicity which is never good. The key here is to make sure you know who you are buying your tea from and that you have challenged your suppliers to certify that they are abiding by all applicable laws of their respective countries. This is one area where it pays to do your homework to ensure that each one of us and the industry in general is on solid ground.

This does not mean that you should necessarily obtain your tea from some sort of third party organization (this is more of a marketing decision than anything else) simply that you have an obligation to ensure that you are dealing with reputable suppliers.

4. The forth and final concern is one of education of the trade and consumers. Many people are coming into the tea industry with little or no formal training in the business of selling tea. True, they are bringing a passion which propels them forward and is transmitted to their customers but passion alone is not enough. It is important for each of us to be communicating the same information about tea whether we are talking about health benefits, types of tea, caffeine levels, preparation method, storage conditions, nuances of taste, or any other question that may come up. By communicating the wrong information or half information, consumers become confused which could easily translate into reduced consumption.

The Tea Association of the USA and the Specialty Tea Institute offer several opportunities throughout the course of the year for newcomers to tea to obtain a formal education through our Certification program. Now there is no excuse for anyone within the tea trade not to have at least a fundamental knowledge of tea to ensure that consumers will hear a consistent message.

No one coming into the industry should expect that these Certification Programs will entitle them to be called a Tea Master (a title which is probably properly applied to only a handful of people in the entire world). However, it will certainly help them to achieve a level of professionalism that will increase their credibility amongst the peers in the trade as well as their customers.

These are the major concerns that come to mind and the areas where the entire Tea Industry needs to pay close attention to ensure that positive momentum for tea continues uninterrupted.

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.

Celestial Seasonings announced two TeaHouse Chai flavors: Vanilla Ginger Green Tea, a combination of black and green tea spiced with vanilla, ginger and cinnamon, and Sweet Coconut Thai Decaf, combining decaffeinated black tea, with rooibos and Thai spices. Both products - available in teabags - will be available in stores beginning Fall 2005, where they'll join four existing Chais: Original India Spice, Decaf Original India Spice, Honey Vanilla White Tea and Chocolate Caramel Enchantment.

The Health Tea Wand™ is a hand crafted glass straw that brews and filters tea leaves through specially designed strainer holes in the convenience of your own cup. The new device is packaged in a transparent carry case that contains a compartment to transport your favorite loose tea.

At the recent Natural Products Expo East trade show, OM Organics was honored with a 2005 Socially Responsible Business Award. Based in Boulder, Colorado, OM Organics is the exclusive North American distribution and marketing company for Organic India.

The awards are presented to companies or individuals that have demonstrated excellence in nine categories of values derived from the Social Venture Network’s Standards of Corporate Responsibility. The award recognizes the Organic India and OM Organics organization as a leader in the global movement to promote organic farming and improve the economic and social outlook for small family farmers and their communities.

Britannia Industries, a large British food and beverage company is reportedly preparing a bid to acquire Premier Foods Typhoo tea brand, the UK's third-largest tea brand. Should Britannia be successful in its acquisition attempt, it will follow in the footsteps of Tata Tea Ltd., which bought UK's Tetley for $432 million in 2000, becoming the world's second-biggest branded tea firm.

Although Indian tea giant Tata Tea is rumored to have concluded its negotiations to acquire the US specialty tea brand Good Earth, company executives with both companies have not yet confirmed that a deal has been solidified or a purchase actually gone through. Tata Tea is one of the largest tea companies operating globally and competes with mega-brands internationally. Should Tata successfully acquire one or more major specialty tea brands in the United States it will help jump-start the company in its efforts to leverage the company into the fastest growing specialty tea market.

Tea industry veteran Bruce Richardson recently was elected to the Advisory Board of the Specialty Tea Institute (STI), internationally recognized as the voice of the specialty tea industry. The noted author and owner of Elmwood Inn Fine Teas in Perryville, Kentucky will serve a two-year term of office, working with the nine-member Advisory Board to govern and represent the organization. Based in New York City, STI provides educational and networking resources to the specialty tea industry.

US tea authority and author James Norwood Pratt served as an international juror for India's Southern Tea Competition 2005, organized by the United Planters Association of South India (UPASI) and the Tea Board of India. Teas from various south India growing districts including Nilgiris, Wynaad, Anamallais, Travancore, High Ranges, and Karnataka were included in the competition. The goal of the competition is to recognize and encourage excellence by showcasing South India's best quality teas, along with India teas in general.

Your first teahouse has recently celebrated its twelfth anniversary. Has the popularity of tea in this country matched your original expectation, or have there been surprised along the way?

The growth of tea and our business has certainly exceeded my expectation since I didn't really know what to expect 12 years ago. It has been a wonderful twelve years (actually thirteen since it took one year to open the store).

You now have a second location in the Ferry Building. What changes in format have you made based on your experience with the first?

We try to offer a pure tea experience in our original store and after 12 years, we are somewhat successful. The second location offers more traditional food items to be served along with tea to ease the initial "shock" for new comers to tea since food are easier to understand, and to Chinese, food and tea are both art forms to be presented. We are in the process of opening a third location in Berkeley, CA, which will explore even further the idea of food and tea presentations.

Mixing tea and food is a formula that's working well for Ten Ren's Cha for Tea. Might the efforts of those trying to be the Starbucks of tea be misplaced, and the tea-inspired restaurant prove the formula that prevails in bringing tea to the masses?

I am not sure, but it seems to work for our Gerry Building store. I am sure some people only come for the food but it opens the door.

How do you traverse the fine line between keeping the experience of tea pure and tinkering with tradition so as to broaden its appeal?

I don't feel there's any problems since Chinese view tea and food as part of everyday life and there's never a wrong time to have tea or food. However, the sensible use of tea and food items not only compliments but help appeal as well.

The bubble tea phenomenon is most pronounced in your state. Do you find yourself tempted to appeal to this audience by sacrificing some of your products' authenticity?

I do not believe that you need to sacrifice anything, if I choose to do bubble tea it will be done well, if I am making teabags or flavor tea it doesn't mean a good job can not be done. I never have any issues with others using or doing things that are not the "best" or "traditional", I just do not agree with people who decides NOT to do a good job simply because of a price issue etc.

So might we one day see an Imperial Teappuccino?

I am trying to decide if I want to live in the US or China as I get older. If I continue business here, you will certainly see something different from me, however, I won't go as far as a "Teappuccino", there's plenty to do with good taste and within tradition.

If you return to China, might you consider developing a Chinese tea brand? Consumers are sure to pay extra to be assured of consistent quality from one year to the next.

it is a possibility, I am not sure what I will be doing just yet but I wanted to live near a tea farm some time in my life to really be in tune with tea and nature, it's impossible here in the US but I can virtually make it happen the next day I arrived China if I so choose. I am not a marketing person, rather I want to be a tea "artist."

How does the tea artist in you react to China's rapid development and urbanization? Will modernity adversely affect the art of tea?

If it's not one thing it's another, the current rapid development brings opportunities and distractions. I feel like there's so much to do that there's no time to worry about it. In due time, I just put my head down and go forward.

That doesn't sound very optimistic. Given your keen sense of the Chinese tea industry, what positive developments do you observe that give you cause for optimism?

Certainly the fact that people are willing and able to pay for high quality teas as well as all the new tea enterprises that are going up everyday are all good news. All of these things bring tea to a more important place in peoples' lives. There are also obviously many problems like pollution and overproduction, but those are facts of life. I choose to deal with it and let the chips fall where they may...

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.

Seabourn Cruise Line has introduced a family of rare estate teas gathered from around the world. Known as the "Seabourn to a Tea" menu, the selection features exotic teas, freshly loose-brewed to order, and served to guests during daily afternoon tea service. The loose teas are presented in glass vials and in a wooden tea chest, allowing guests to contemplate tea aromas before selecting one to be brewed. A printed menu details other tea components and ingredients of each brew, including caffeine content, antioxidants, vitamins and other elements.

Dallas, Texas based Tempest Tea has launched a line of premium quality iced organic, fair trade certified iced teas come in black, green, white, and decaf varieties. Each blend is specially formulated for iced tea using only organically grown leaves, fruits and flavorings, and all are delicious and healthy. The new iced tea flavors include Black Ginger Peach, Decaf Mango, Green Tropical, and Green Berry Jasmine.

Bigelow Tea (Fairfield, Connecticut) has signed New York Yankees manager Joe Torre to tout its green tea in print and radio ads. Print ads feature Torre sitting in New York's Central Park, sipping the tea. Headline: "Look Who's Drinking Bigelow Green Tea Now." The new campaign breaks this week in The New York Times, The Wall Street Journal, as well as various sports-oriented magazines.

One of the world's busiest online tea stores, Adagio Teas, is introducing a new line of gourmet teabags delivering the superior flavors of loose teas within the convenience of a disposable tea bag. The new bags have a pyramid shape, thereby allowing plenty of room for expansion of large leaves during the brewing process as was previously only available in finer, loose gourmet teas. The company notes its new bags are in sharp contrast to typical teabags containing what the industry terms "dust," the least expensive tea grade.

China’s largest drink maker Wahaha Group has announced the launch of a new soft drink, to hit stores by July, without the participation of Danone Group. Wahaha wants Danone, that didn’t take part in the project, to be “expelled” from the brand. The French giant has accused the Chinese side of undermining joint-ventures by selling Wahaha products in competing companies.

A new laboratory study suggests that EGCG, one of the main components of green tea, is a powerful medicine against severe sepsis, an abnormal immune system response to a bacterial infection. Researchers found that a dose equivalent to ten cups of green tea raised the survival rate in mice by nearly 30%. The findings could pave way to clinical trails in search for a cure for a disease that is known to cause death in half of medical cases.

An Australian study suggests that drinking tea may help strengthen hips in older female patients. Patients who drank about three cups of tea per day showed a higher bone density compared to non-drinkers. Antioxidant flavanoids are believed to contribute towards bone mineral density by a stimulatory effect on new cells that build bone. Hip fractures and osteoporosis remain a major cause of disability for older women.

Mighty Leaf Tea, producer of premium gourmet tea, has received an equity investment from VMG Partners, a private equity firm specializing in building branded consumer products companies, for a reported 20% stake in the company. The tea manufacturer from San Rafael, CA offers a wide range of artisan teas distributed primarily through specialty retailers, restaurants and hotels. VMG hopes that improved demand in premium products and increased awareness of tea’s health benefits will drive future growth in this niche sector.

The Healthy Beverage Company introduces its line of Steaz Sparkling Green Tea drinks set to promote healthier drinking habits and offer an alternative to regular sodas. Unlike the majority of soft drinks containing high fructose corn syrup, which is thought to contribute towards ailments like diabetes, heart disease and osteoporosis, it is sweetened using organic sugar cane and provides the usual health benefits associated with green tea - antioxidants and polyphenols. To reinforce products’ appeal to the young - and their more grown-up and increasingly health-conscious entourage - the company simultaneously launches a program promoting healthier dietary habits at schools. Taking advantage of growing skepticism towards the availability of junk food on educational premises, the company from Newton, PA has found a promising niche for beverages that ally the sweet taste that kids are used with the health benefits that their parents care for.

Coca-Cola is close to investing in Honest Tea - the up-and-coming healthy drink maker. With sales of $13.5 million last year, the company from Bethesda, MD is the soft drink giant’s latest target in search of diversification into the growing non-carbonated beverage industry. The appeal of Honest Tea lies in its comprehensive range of products that includes tea drinks and juices, as well as a line low-sugar thirst quenchers aimed at children - all of them certified organic and Fair Trade. The acquisition would give the company, in its 10th year of existence, strategic access to the mainstream market, whereas Coca-Cola would gain exposure to the booming ready-to-drink tea and coffee category with an estimated 28% annual growth.

Neville Isdell, CEO of Coca-Cola, identified tea as a “priority area” in context of lagging soft drink sales, indicating that the company is looking for acquisitions to bolster its offer of drinks oriented towards health-conscious consumers.

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.

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.

Coca-Cola has announced on Tuesday that it reached an agreement to acquire 40% of privately-held tea maker Honest Tea. The deal, worth $40 million, values the company from Bethesda, MD at $100 million and includes an option for the soft drink giant to purchase the remaining stake in the healthy beverage company after three years.

The Atlanta-based company will thereby bolster its portfolio of non-carbonated drinks, which includes Fuze and Gold Peak tea brands, Nestea and Enviga tea drinks and Glacéau’s VitaminWater, which it bought last year for $4.1 billion. The latest move is a clear indication of where Coke sees future growth: as traditional soft drink sales declined by six percent in the first nine months of 2007, bottled tea volume was up a healthy 24% in the same period compared to 2006, according to Beverage Digest.

Despite its small size, Honest Tea has recorded a noteworthy growth of 70% in 2007, grossing $23 million in sales. The company’s appeal lies in its comprehensive range of teas and other healthy beverages with a low-calorie profile, organic certification and premium brand image. However, an important obstacle for the expansion of the company, in its 10th year of existence, has been a relatively restricted presence in mainstream outlets, limited mostly to natural-food and specialty retailers like Whole Foods Market, Inc. A partnership with Coca-Cola gives Honest Tea exposure to a much wider distribution network in universities, restaurants and grocery stores, where Coke has exclusive relationships.

While the agreement clearly makes strategic sense for both parties, questions remain about its ethical aspect. Will the deal be seen as yet another case of a small company selling out to a giant or will it be viewed as a multinational’s new (and healthier) approach to doing business? The increasingly principled consumers, at the core of the hip brand, have three years to make up their minds. So does Coke.

Latest research from the University of Dundee, Scotland suggests that black tea may help prevent type 2 diabetes, which develops when the body fails to produce enough insulin. The researchers have discovered that several components of black tea, namely theaflavins and thearubigins, mimicked insulin action and could have beneficial effects on the most widespread form of the disease.

Peet’s Coffee & Tea, Inc. has announced the retirement of two of its long-time board members, Gordon Bowker and H. William Jesse, Jr., who have served the specialty coffee and tea company from Emeryville, CA for 25 and 10 years respectively.

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.

As the Natural Products Expo West opens its doors to an expected record number of participants, healthy and organic goods are to take center stage at the country’s largest trade show, held in Anaheim, California. The event, taking place from March 13 to 16, welcomes a broad field of trade professionals and experts with a focus on the complete value chain of this expanding industry.

While food and beverages (anything from raw ingredients to frozen meals) continue to dominate the stands, the show also features personal care and sustainable living goods, as well as speakers from multiple disciplines, indicating the scope of buzz surrounding publics ever-growing interest in healthy and sustainable produce. And as the R-word resurfaces across the US, the event also highlights the positive prospects for the broader sector. For example, the natural products’ sales in the US have jumped a healthy 9.7% across all retail channels in 2006.

The trend clearly reflects consumer’s increased awareness and concern for natural goods and equitable production methods. What was once considered a fad is becoming part of pop culture, because behind the good numbers and the rosy scenarios lies a genuine shift in the way people relate to products and to companies that produce them. It’s become a question of lifestyle now.

A case in point is the Expo West. Staying true to California’s involvement with green issues, the event supports various renewable energy projects during the show. Hollywood has always been so mainstream.

A recent French study suggests that women who drink three or more cups of tea per day reduce their exposure to heart attacks and strokes. The study examined the thickness of plaques in blood vessels, which are build-ups of fat or cholesterol and are linked to an increased risk of heart complications, and found those plaques were less frequent with increasing tea consumption in women. Strangely, no benefits were recorded among women who drank less than three cups of tea a day or for men.

A study, published in the American Journal of Clinical Nutrition, suggests that green tea can not only prevent heart diseases, but also help to burn fat. The authors of the study found that green tea extracts increased the rate at which the body metabolizes fat, enhancing the amount of generated energy by up to 17 percent.

Researchers in Egypt found that green tea enhances the effects of antibiotics up to threefold in fighting drug-resistant bacteria. The study, carried out by the Alexandria University, suggests that in almost every case and for all types of antibiotics they tested, drinking green tea at the same time as taking the antibiotics appeared to increase the action of the antibiotics and reduce drug resistance in bacteria.

Sweet Leaf Tea, maker of ready-to-drink iced teas and lemonades, has announced a huge $18 million capital injection from Catterton Partners, a private equity firm. The company from Beaumont, TX plans to use the investment to increase its marketing and distribution efforts across the US, thereby gaining greater exposure in a market worth $2.8 billion and growing at a whopping 25% annual rate. The sales of Sweet Leaf Tea have nearly doubled every year for the past five years and the company hopes the latest move will solidify its position in what is expected to become a $4.4 billion industry by 2011.

A Brazilian study measuring the effects of green tea on athletes undertaking resistance training indicates that its consumption increases body's antioxidant defense capacity. Researchers say that if the results can be confirmed on a larger scale, the antioxidant-rich beverage could be proven valuable in fighting oxidative damage caused by exercise. The findings may pave the way for green tea to gain access to the energy drinks market, which is valued at £137 million in the UK and almost $3 billion in the US.

Suntory Ltd, a Japanese drink manufacturer, plans to team up with Swiss food giant Nestle to offer its green tea drinks in the US. The deal covers exclusive rights to Iyemon green tea brand, which will be initially sold on the West coast, and will commence in May. The companies are looking to tap into America's booming tea market, expected to double in size and reach nearly $15 billion in sales by 2012. The ready-to-drink teas come with a price tag of $2.50 per 12oz/360ml bottle and are anticipated to generate annual sales of $19.4 million.

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.

Green tea has come a long way from its humble beginnings in ancient China. Not only has it become the prevalent variety in many Asian countries, where it is now considered part of the cultural heritage; it has also recently enjoyed a growing number of followers in unexpected places like the US and Europe, historically more accustomed to black tea. The reasons behind its rise to fame in the West are evident: numerous health benefits and a pure, yet sophisticated taste. Nowadays, it even comes conveniently packaged and is enjoyed as a refreshment. The antioxidant-rich beverage is in a way a symbol for the renaissance of Epicureanism and crystallizes the modern consumers - level of implication in everyday health and wellbeing.

The health credentials of green tea are quite impressive: studies suggest potential uses in fighting different types of cancer, diabetes and heart diseases. It is effective against allergies, arthritis and even bad breath. Recently, a Japanese study found that green tea catechins may inhibit the loss of reference and working memory linked to plaque formation in the brain, which could help combat Alzheimer's disease, the most common form of dementia, affecting over 13 million people worldwide. It seems it's as close to an elixir of youth as it can get for aging baby-boomers and jaded urbanites.

The enthusiasm surrounding the green beverage can be felt in the boardrooms as well. With summer fast approaching, the ready-to-drink products are once again in the spotlight, with Nestle and the Japanese drink manufacturer Suntory teaming up to begin sales of upscale green tea drinks in an attempt to challenge the dominance of Ito En in the unsweetened green tea market.

For those with a sweet tooth, Coca-Cola has announced a facelift for the Nestea product line by means of improved packaging and new flavors in order to distinguish the range from its carbonated peers and improve its market position. Nestea is ranked fourth in the US, with eight and a half percent of the market, behind leaders Lipton, Arizona Tea and Snapple - which indicates only one thing: Americans like their tea sweet and the beverage still has a long way to go before it is enjoyed in its natural form.

The current situation suggests a clear split between two very different conceptions of ready-to-drink tea that coexist on the market today: the purist one, that focuses on traditional features like leaf quality, subtle flavor and brewing know-how, and the pragmatic one, which is about conciliating the health benefits of green tea (usually from concentrate) with the appeal of sweet flavors that many people are used to (usually from fructose or corn syrup).

The purist conception is certainly at risk of falling out of favor with people turned off by the "dull" taste and the relatively high purchase price. On the other hand, the pragmatic proposition carries a much greater danger of inducing the belief that antioxidants can somehow compensate for the typically mediocre nutritional profile of the drinks (similar to having a diet Coke with a super-sized McDonald's meal). For example, Canada Dry's Green Tea ginger ale contains beneficial green tea antioxidants, yet a 20oz. (600ml) drink represents 60 grams of sugar. The irony of it is that antioxidants are supposed to fight some of the very consequences of sugar-laden diets such as diabetes and cardiovascular diseases.

Health considerations aside, this dual identity touches upon an important question for everyone that enjoys the drink: what is the essence of green tea? Is it a mix of certain functional attributes that can be diluted and altered according to market trends or is it a "sovereign" beverage representing specific standards in provenance, quality and taste, and reflecting a lifestyle centered on physical and mental wellbeing?

The answer remains unclear and the customer's nutritional karma will certainly have the final word. In the meantime, fast food will continue to taste better with sparkling soft drinks.

Revolution Teas is teaming up with Kraft Foodservice for national distribution in the foodservice channel. Kraft's catering arm will distribute Revolution's premium iced tea beverages and individually-packaged teas in restaurants, hotels and other eating establishments starting in May. The two companies note increased demand for high-quality tea and hope to replicate growth patterns of other premium beverages like coffee.

Hampstead Tea has been a pioneer of biodynamic products from its beginnings in 1995. How did the adventure start and what was the company's vision at the time?

I was looking for something to do that related with food - I was a strategic management consultant and had 2 small children and was becoming very concerned with the quality of food available in the UK. In 1987, I had a chance meeting with Rajah Banerjee, the owner, manager of Makaibari and was so inspired with his story that I was determined to tell people about it. I began by selling Makaibari tea in bulk to tea packers in Germany, Japan and the US and soon decided to launch my own brand, Hampstead Tea. Hampstead was named after the hillside town in London where we first met. Having seen how Makaibari had evolved using the principles of Rudolph Steiner (biodynamics), I was determined to remain true to these origins even though it has proved challenging over the years..

What do biodynamic farming practices consist of and how do they differ from organic agriculture as it is commonly known?

The best way to describe biodynamic farming is that it is organic plus i.e. a more proactive system of agriculture using inputs in the composting that dynamise the farm. It is also a far more holistic way of farming. See the Demeter website for more details.

You describe your agricultural practices as organic plus. How big of a challenge has it been differentiating your philosophy from "standard" organic products and how has the consumer responded?

It has been very challenging without big advertising budgets to communicate the differences but we do have a strong following amongst communities where biodynamic is recognized as a higher quality standard. The problem has been in our interusage of the terms biodynamic with organic as the consumer has become aware of the organic standards far earlier than biodynamic.

We've witnessed amazing gains of awareness and interest in organic farming standards these past few years. Have you experienced a similar buzz in the biodynamic arena?

The organic trend has benefited us hugely as it has helped us to capture the attention of environmentally conscious consumers. And as biodynamic is also organic there is no inconsistency in our message.

Do you feel there is a danger of biodynamic standards being overwhelmed by organic ones in a "war of formats" (as we've experienced with video and DVD)?

No I don't thinks so - biodynamics is a totally different and unique philosophy.

Hampstead evokes a beautiful town in London and pays homage to the company's roots. What role does "britishness" play in your company's identity and where else does Hampstead Teas draw its inspiration from?

The roots of Hampstead are in the bohemian Hampstead town. This is where Karl Marx, Daphne du Maurier, Keats, Shelley all lived parts of their creative lives. It is a town where free and unfettered thinking and progressive ideas are encouraged and prosper. Makaibari, our partner estate, in Darjeeling, has also been a deep source of inspiration for me personally - to see what Rajah Banerjee, the owner, has achieved there is truly life changing.

Hampstead Teas continues to grow on an international level and can be found in faraway countries such as Japan and Australia. How receptive have foreign audiences been to your message and commitments?

As with all markets, you win some and lose some... we try and seek out the "Hampstead customer" wherever we are present and this is the most exciting and challenging part of venturing overseas!

Speaking of overseas, your exposure to the US has thus far been limited. What challenges does this market represent in your experience and how receptive has the American audience been to your philosophy?

It is a challenging market as the area is so diverse and consumers trained to buy on deal - something we at Hampstead avoid doing. We believe that our products already represent great value as they contain the very best in class and we therefore stay away from discounts and promotions. We cant really justify these as we believe in ethical behavior throughout the supply chain and that includes the consumer.

Finally, looking forward, how do you plan to reach the "Hampstead customer" in such a vast and competitive market?

We are working on it slowly building relationships with retail groups who support our philosophy.

The year started on a busy note for the natural drinks' sector. Two deals, on both sides of the Atlantic, have confirmed the positive outlook for the industry. In February, Coca Cola acquired a 40% stake in Honest Tea, an organic and Fair Trade certified ready-to-drink tea company, for a fee of $43 million. Across the pond, McDonald's recently confirmed plans to ditch its current provider of teas - Tetley of India's Tata Teas - in its 1200 outlets across the UK for the more sustainable produce of PG Tips, owned by Unilever and certified by the Rainforest Alliance.

While the nature and the scope of those deals are quite different, they clearly indicate where the sector is heading: whereas the state of the overall economy remains fragile (in the US, as well as in the UK), the sustainable and organic phenomenon looks more promising than ever. Better yet, it seems to have reached a tipping point as big business is taking it to the mass audience.

However, good numbers and growth trends are only part of the story. In fact, we are currently experiencing a shift in the way people approach food. New habits are discovered and there is a newfound passion for all things tasty and fit. But while the broader picture is encouraging indeed, it is unclear how the presence of such food juggernauts will impact the organic/sustainable trend.

First, it remains to be seen how mainstream exposure will affect the way companies do business. For example, while Coke assures that it wants to be "more like Honest Tea", the latter prepares to launch a mass-market line of its bottled teas containing more sweeteners. Particularly to the health-conscious crowd, such news serves as an uncomfortable reminder of the unwholesome diet they reject and suggests a step in the wrong direction for the firm from Bethesda, MD. Being more accessible does usually mean making concessions in terms of products' nutritional and gustatory features, which in turn have ramifications for the company’s ethos. And that’s a challenge most small companies haven’t faced before.

Secondly, and maybe most importantly, it appears that the latest trend is becoming more frequently based on labels and certifications than a genuine passion for change or quality improvement. It is understandable that a company like McDonald’s can only benefit from offering Rainforest Alliance certified teas, but, given its track record, switching suppliers only on that basis does seem a little hypocritical. After all, what you are offering your customers is, first and foremost, a tea of certain quality and taste. Production standards and company ethics undoubtedly matter, but it would be dangerous to reduce the overall selective criteria to a mere juggle of labels. That is especially true when only fifty percent of PG Tips produce actually comes from sustainable sources. Or, to put it in another way, half doesn't.

The implications for the abovementioned issues are more important than they appear at first glance. The reputation of a whole industry is at stake, because increasing the (mis)use of labels and certificates as keys to peoples’ hearts and minds (as well as their wallets) diminishes their effect in the long run. The various symbols appear to be en route to becoming somewhat of a commodity - a seal that you can simply acquire and pin to almost anything. It is called "green washing" - and it represents a potential "shot in the foot" for the entire industry, especially in the context of a developing mass-market.

Also, there is a risk of establishing a false distinction between relevant product features. Indeed, one of the main benefits of labels that is rarely mentioned is not only that they certify certain product's characteristics or production methods, but that they simultaneously seem to retrograde the vast majority of "conventional" products that do not comply with them. It fosters a perilous "us vs. them" mentality. In fact, it is important to remember that if a product is not certified organic or sustainable, it doesn't mean it isn’t intrinsically either or both. Gourmet tea is a good example. Organic or ethically harvested produce does not necessarily translate into better tasting tea or increased health benefits, whereas "conventional" tea producers may adhere – on their own initiative or through other schemes - to the strictest of production standards.

Compliance with standards that are relevant to consumers and producers is not the subject of discussion and big companies can certainly contribute in preaching the message to the masses. However, the issue remains that certain concepts – that may not be of primary concern to a particular type of business - might carry a stronger connotation for certain consumers. It is therefore in the interest of the entire industry of specialty products to prevent organic farming or particular business ethics from becoming some sort of get-out-of-jail-free card for products of mediocre quality and taste.

The word dog doesn’t bark.

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.

TBL Capital is injecting $1.8 million into Numi Tea with its sights on expanding the premium tea company's operations across the board. The capital venture fund that invests in socially responsible companies says the resources are intended to support penetration into new markets, drive new product development and increase firm's marketing activity. TBL Capital's move is the latest in a series of bids by investor groups and large companies to capitalize on health- and sustainability-promise driven brands that continue to fuel growth in the natural drink sector.

The World Tea Expo is known as the definitive annual rendezvous for the entire tea industry. It gives the attendees a complete overview of the market and let's them keep a finger on the pulse of this evolving industry. This year was no different, as the show, held from May 27th to June 1st in Las Vegas, NV attracted a large crowd of industry professionals (everyone from tea room owners and distributors, to high-profile keynote speakers and young entrepreneurs) to talk everything tea at the Mandalay Bay convention center.

It's no secret that the expo is an ideal place to hunt for latest market trends that will shape the industry in the upcoming years. Behind the glitz, a more insightful eye can spot certain reoccurring themes that give an indication as to the future of a beverage so recently discovered by the masses.

An aspect of tea that benefited from a lot of attention this year was definitely its visual appeal. Similarly to wine, tea is usually judged by the bouche and the nez, yet the current emphasis on the robe proves that tea can be something to be admired by the eyes as well.

The visual splendour is highlighted either by beautifully expanded leaves or radiant colors of infused water - both of which vary dramatically from variety to variety. This makes the visual dimension relevant for tea vendors and tearoom managers alike. Whether to drink or display tea, clear top containers (introduced by Adagio Teas several years ago) and transparent tea ware were a clear hit with both exhibitors and attendees, and are bound to make an impact on the way tea is displayed and packaged in the future.

The expo also offered the opportunity to showcase the unconventional side of tea: as an ingredient in various drinks and foods. For example, Suntory's Zen green tea liqueur stood out as a novel interpretation of a cocktail drink with a sweet green tea flavor, and which, by the way, was one of only a few tea drinks to be enjoyed responsibly at the show.

Likewise, tea continues to be successfully used in small treats like biscuits, chocolates and mints - with, for example, Biscotea, Choclatea and Sencha mints playing with different notes of every possible variety. It feels exciting to witness that tea is appreciated just as much for its taste, as for its numerous health benefits. It can be enjoyed, as well as used. The beverage seems to be regarded not only as an antioxidant quick fix, but also as a flavoursome drink fit for every palate.

Finally, it was hard to ignore the increasing sophistication associated with the tea making process, as a plethora of devices (everything from variable temperature kettles to complete water-purifying systems) attests to the level of skill and detail expected from a superior cuppa. Indeed, premium teas necessitate additional attention to be paid to water composition and temperature, as well as the steeping times - and that's becoming reflected in the quality of instruments used for their preparation.

This is good news for gourmet tea businesses, which again have a chance to capitalize on their premium products and extensive know-how in order to accommodate the needs of a growing number of initiated tea lovers.

The overall verdict of the show? With the market booming with fresh ideas and innovative people, an optimistic feeling accompanied by healthy and flavorsome tea, in whatever shape or form it may be.

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.

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.

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.

A new study by a group of Swedish scientists suggests that coffee and tea consumption may reduce the risk of stroke caused by a blockage. The study, carried out on over 26,000 Finnish male smokers, examines ties between diet and risks of different types of strokes caused by bleeding in the brain and artery blockage. The results show that men who drink two or more cups of tea per day have a 21% lower risk of this type of stroke compared to non-drinkers. Scientists suggest tea's phenolic compounds may be instrumental in preventing cerebral infarction and hope to confirm the results among women and non-smokers.

Research from the University of Singapore shows that drinking two to three cups of tea a day can halve the risk of early signs of dementia. In a study of lifestyle habits of 2,500 people aged 55 and over, it was found that sipping through a couple of cups of black tea per day can cut the risk of cognitive decline by 55%, and up to 63% for heavy tea drinkers. According to scientists, no protective effects on the brain were noted for caffeine, which indicates that polyphenols found in tea were responsible for increased brain function. It is believed that polyphenols prevent oxidation of brain cells and block build-up of plaques in the brain.

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.

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.

Following the acquisition of a forty percent stake in Honest Tea last February, Coca-Cola Enterprises will start distributing Honest Tea and Honest Aid drinks in parts of western US in late September. Atlanta-based soft drink giant plans to carry the complete range of organic teas and fruit juices in pilot markets such as Norther California, Arizona and Las Vegas. Coca-Cola hopes Honest Tea will strengthen its portfolio in the rapidly growing organic beverage business and help challenge its archrival Pepsi Co., whose Lipton brand leads the ready-to-drink tea category in the US.

A new study has found that greet tea catechins encapsulated in nanoparticles may be released in a controlled manner. In vitro research showed that chitosan nanoparticles had an encapsulation efficiency of over fifty percent and thus a controlled release of antioxidant-rich polyphenols was achievable. Nanotechnology is already being used in food and packaging industries and focuses on altering matter at an atomic or molecular scale. A more effective delivery system could pave the way for a more widespread use of green tea catechins.

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.

One of the most important factors defining the current popularity of tea, particularly in the West, is undoubtedly the teabag. In retrospect, the (albeit accidental) invention of pouches that can be dunked directly into hot water has strongly impacted the spread of the beverage in the industrialized world. It made tea consumption possible in an urban setting and created a format fit for existing retail environments. It must be said that convenience came at the expense of quality, with mediocre tea grades becoming standard for most of the twentieth century.

The teabag was later improved upon by adding an individual wrapper, making it even more portable and versatile, whilst at the same time preserving contents' freshness. Curiously enough, these covers have become a collectible item for a small, yet vibrant group of tea aficionados. Especially in countries like the Netherlands and the Czech Republic, collecting tea bag covers has become a popular pastime, with sporadic fairs organized amongst these scattered communities. The fact that they are sometimes swapped online between unfamiliar collectors certainly adds to the flair.

While collecting tea bag wrappers or any other forms of packaging might not qualify as a trend itself - a trend being a more profound and noticeable socioeconomic shift in attitude and behavior - it has the merit of diligently reflecting the evolution of trends in the way tea is represented in the western society. In other words, it encapsulates the filiation of different themes and designs associated with the beverage.

For example, one recurrent theme is aristocracy - tea historically being considered a luxury beverage in the West- with references to (fictional) aristocratic and royal figures being a common leitmotif. Even industrially manufactured, tea still has the power to take us back to the eighteenth century England, where dukes and duchesses enjoyed the exquisite refreshment in fabulous palaces. Who wouldn't want a piece of blue-blooded luxury?

Another theme widely used through the years is nature, thanks to various motives of plants, animals or exotic landscapes, all telling in some way or form the story of tea's exotic provenance from places untouched by man. Tea is a natural drink after all and every possible image (tea leaf, mountains, elephants, berries, etc) has been used to reinforce tea's intimate link with nature.

So teabag covers, like other mediums of expression, can give a good idea of how tea was perceived and marketed through the years and should not be considered as mere historic artifacts. They are rich sources of "persuasive techniques" used in the past and are a fun way to look back at the evolution of this unique beverage in our society. The fact that such covers come from all over the world and are mainly suited for local audiences adds even more variety to an already diverse drink and certainly increases the "collectability" factor. It is also a great way for teabag "archaeologists" to compare the differences in the way tea is represented and drunk worldwide. And that's another way to enjoy tea!

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.

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 Tata Tea has announced at the company's annual general meeting that it is looking for strategic mergers and acquisitions in the US and Russia to strengthen its presence abroad and access new customer segments. Tata Tea, which owns 42 brands in 45 countries, has acknowledged its transformation from a plantation to a global beverage company and stated plans to further expand into FMCG markets such as juice manufacturing, as well as a possible name change to better reflect the current complexion of the company. Tata Tea, owned by Tata Group, is the world's second largest manufacturer and distributor of tea.

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.

Starbucks has agreed to a licensing agreement with the Pepsi and Unilever to manufacture, market and distribute its Tazo brand of ready-to-drink beverages in the US and Canada. Tazo's range consists of over a hundred of tea, fruit and herbal beverages in bottled, filterbag, full leaf and tea latte concentrate varieties. It will be integrated into the Pepsi/Lipton Tea Partnership, the leading distributor of RTD tea products in the U.S., expanding the joint venture between PepsiCo and Unilever created in 1994. Acquired by Starbucks in 1999, Tazo is the exclusive tea brand offered at Starbucks coffeehouses worldwide and Seattle's Best Coffee cafes in the U.S.

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.

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.

The shares of Ito En Ltd., Japans largest manufacturer of green tea beverages, fell as much as 16 percent in Tokyo after a severe dip in company's profits. The shares lost 273 yen ($2.52) after the company reported a net income of 1.08 billion yen - a drop of 59 percent - for the three months ending on July 31. It cited higher costs for promotions and plastic bottles, as well as slowing sales of vegetable drinks. The stock has declined 33 percent in 2008, compared with a 19 percent drop in the benchmark Topix index in the same period.

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.

The first-ever human clinical trial on the effects of rooibos tea on the cardiovascular system was carried out in South Africa. The research, conducted by a group of scientists from the Cape Peninsula University of Technology, shows that short-term consumption of rooibos tea is safe for the liver and kidneys while keeping various blood parameters in a normal range. Provisional results from the study indicate that "red bush" tea protects the body against oxidative damage, as seen by the 21 percent decrease in conjugated dienes in the blood.

The Hungarian branch of Sara Lee Corporation has announced plans to invest over €4 million ($5.7 million) in its local production facilities. The investment concerns the Rákospalota plant, company's second-biggest tea packaging unit in Europe, and will be used to modernize tea production lines in order to make them suitable for applying new packaging techniques. According to AC Nielsen data, Sara Lee Hungary has become the market leader in the national coffee and tea segments with 41% and 43% market shares respectively.

According to recent research, drinking chamomile tea daily may help prevent the complications of type 2 diabetes, such as loss of vision and nerve and kidney damage. In laboratory tests on rats, UK and Japanese scientists found that chamomile extract appears to cut blood sugar levels and block activity of an enzyme associated with the development of diabetic complications. Scientists cautioned that further research would be needed to confirm the plant's role in fighting diabetes-related complications, yet noted that the study raised hopes of a new anti-diabetes drug.

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.

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.

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.

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.

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.

The Anglo-Dutch food giant Unilever is recalling several milk tea powder products in Hong Kong after tests found them contaminated with melamine. In a public statement, the firm said the recalled products were made using locally-manufactured milk powder with traces of melamine, a chemical used for making plastics and fertilizer. This comes just a week after the company had to proceed to similar actions in Taiwan. Powdered formulas with melamine, ingredient used to boost products' protein levels, were blamed for killing four babies and sickening more than 50,000 others in China.

Honest Tea introduced the latest addition to its line of Honest Ade drinks, the Superfruit Punch, at the National Association for Convenience and Petroleum Retailer's annual showcase in Chicago. Superfruit Punch contains two antioxidant-rich berries - Yummberries and Goji Berries - which have proven popular amongst health-conscious consumers in the New York area, where the product was on trial since August. Superfruit Punch is available in a 16.9 fl. oz. (500 ml), fully-recyclable PET 1 bottle with a suggested retail price of $1.59 and is expected to roll out in other markets in the coming months.

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.

Scientists at the Medical College of Georgia found that green tea antioxidants may slow or even prevent the development of type 1 diabetes. The study, carried out on laboratory mice, tested the effects of green tea's predominate antioxidant, known as EGCG, on type 1 diabetes and Sjogren's syndrome, which damages moisture-producing glands causing dry mouth and eyes. It was discovered that the antioxidant compound reduced the severity and delayed the onset of salivary gland damage associated with Sjogren's syndrome - a condition with no known cure. EGCG also dramatically slowed the development of type 1 diabetes in the rodents.

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.

According to a recent study, drinking hibiscus tea lowered blood pressure in a clinical trial of 65 pre-hypertensive and mildly hypertensive adults, aged 30 to 70 years. For six weeks, about half the group was randomly selected to drink three cups of hibiscus tea daily while others drank a placebo beverage containing artificial hibiscus flavoring and color. The findings show that the volunteers who drank hibiscus tea had a 7.2 point drop in their systolic blood pressure, compared to a 1.3 point drop in the volunteers who drank the placebo beverage. The study was co-sponsored by Celestial Seasonings tea company.

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.

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.

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.

In a novel approach to determining the next packaging design of their products, the UK-based Lancashire Tea has decided to let its customers decide what they should look like. The Rehab Agency, a local design firm in charge of the project, has asked Facebook users to vote for their favorite packaging from three possible concepts or to retain the old design. The new design options include a brightly-colored range of Lancashire faces, a postcard montage and black-and-white photos of old-fashioned scenes such as women in bathing suits. The original packaging carries a map of the region.

The shares of Ito En Ltd. dropped the most in three months in Tokyo after reports of a profit decline. Japan's largest maker of green tea beverages lost 103 yen, or 6.7 percent, and closed at 1426 yen due to declining operating profit from higher promotion costs and sluggish sales of vegetable and green tea beverages. At the same time, Goldman Sachs lowered its rating on the company from "neutral" to "sell" with a price target of 1000 yen.

Nestea recently added a Red Tea Pomegranate Passion Fruit flavored drink to its ready-to-drink iced tea range in the US. The beverage is derived from the South African Rooibos, or red bush, plant and is mixed with the sweet taste of Pomegranate and Passion Fruit juice. It boasts no artificial colors and all-natural fruit flavors. The new drink, licensed by The Coca-Cola Company, will be available nationwide in 20oz (600 ml) and 16.9oz (500 ml) PET bottles from February 2009.

A study on the effects of drinks on teeth has found that brewed tea possesses much less negative erosive properties compared to other soft drinks. According to research published in General Dentistry journal, tea poses virtually no risk to the hard part of teeth, or enamel, whereas refined sugars and acids found in soda and citrus juice promote tooth erosion, which is irreversible. Academy of General Dentistry spokesperson has therefore highly recommended patients to choose tea as an alternative to more erosive drinks like soda and fruit juice.

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.

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.

Steaz Organic Iced Teaz picked up top honors in BevNet's Best of 2008 Best Tea category. Facing a large field of contestants, from Arizona to ZT Tea, the product line was singled out as high-quality, organic and Fair Trade certified canned tea, with a balanced amount of sweetness and rich fruit flavors. As a symbol of company's commitment to fair trade practices, the front of each can features photographs of fair trade farmers from Sri Lanka, China and Africa where Steaz sources its tea. Steaz also tied for first place in Best Organic Beverage rankings.

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.

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.

Similarly to stock markets worldwide, the Chinese speculative bubble on the price of Pu Erh tea, driven in large part by China's new rich for whom it has been a status symbol of sorts, has recently crashed. The fermented variety from the country's southwestern Yunnan province has reportedly dropped by up to 85% since peaking in May last year, due to overproduction and a diminished appetite for exotic assets. A 100g brick of 60-year-old Pu Erh sold for 300,000 yuan ($39,400) last February.

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.

After growing only 19 percent in November, the North American sales of Honest Tea beverages should pick up in December, according to CEO Seth Goldman. Goldman, who co-founded the start-up beverage company, expects sales growth to climb to 85 percent in December - giving the Bethesda, Maryland-based company annual sales growth of roughly 70 percent. Honest Tea expects gross revenue to amount to $39 million in 2008, compared with $23 million the previous year. The company, partly owned by The Coca-Cola Company, projects to double sales in 2009 to about $80 million.

The latest addition to Numi Tea's range of organic teas comes in the form of Pu Erh, a tea with a unique fermentation and ripening process from the Yunnan region in China. Promising health benefits and an age-long tradition that characterize Pu Erh tea, mixed with Numi's innovative spirit, have inspired four flavors: Emperor's, Chocolate, Magnolia and Mint. A box containing 16 tea bags retails for $9.99.

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.

The CEO of PepsiCo, the second largest soft drink manufacturer in the US, has revealed that the company plans no new acquisitions in the current economic climate, despite sales of carbonated soft drinks falling three percent in North America. Instead, the New York-based PepsiCo will focus on acquisitions in the growing snacks sector. Before the economic slump, the company purchased beverage companies Izze, Naked Juice and a major juice maker in Russia. It also owns Tropicana, SoBe LifeWater and Gatorade brands.

Whittard of Chelsea, a British chain of tea shops, is near administration according to latest reports. The owners of the business, which sells tea, coffee and accessories, are actively seeking a buyer, while accounting firm Ernst & Young are already on standby as administrators. Whittard is owned by an Icelandic investment company Baugur and was purchased in 2005 for about £21m ($31.8m). Baugur was hit by turmoil in Iceland's economy earlier this year. Whittard, founded in 1886 by Walter Whittard, has 130 stores in the UK.

According to new research, people who consume tea, wine or chocolate have higher brain performance than those who do not. An international team of scientists examined the relation between cognitive performance and the intake of those three substances. They found that those who consumed chocolate, wine, or tea had significantly better mean test scores and lower prevalence of poor cognitive performance than those who did not. The active ingredients studied were flavonoids, micronutrients found in plant-derived foods.

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.

Aiya Co. Ltd., the world's leading manufacturer of Matcha green tea, has earned the respected ISO 22000 certification for food safety management. The accreditation, issued by International Organization of Standardization, guarantees a high level of food safety practices in the entire manufacturing chain, thereby providing a seal of quality to buyers and retailers. Aiya is the first in the Matcha industry to receive such certification.

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.

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.

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.

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.

In an attempt to widen its offer of healthy beverages, Starbucks is launching three new tea-based lattes and two tea drinks. The new lattes are made with steamed milk and Tazo full-leaf tea bags, whereas Tazo Tea Infusions will feature a mix of black tea and fruit juice. The latte drinks cost between $2.85 and $3.50 for a tall. The infusions will be priced at $2.40 to $2.70 for the same size.

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.

Mighty Leaf Tea has announced that it is teaming up with James Beard Foundation as the official tea supplier. James Beard Foundation, a nonprofit organization based in New York City and dedicated to preserving and promoting American food heritage, will use Mighty Leaf teas for their chefs' cooking. The donations are part of the recently launched Mighty Leaf Tea Foundation aimed at supporting artisans in their communities.

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.

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.

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.

Research from Finland suggests coffee and tea consumption in midlife may protect against the risk of dementia and Alzheimer's disease later on in life. The study tried to look at the long-term impact of caffeine on the central nervous system, as the pathological processes leading to Alzheimer's disease are believed to start decades before the clinical manifestation of the illness. Although the findings need to be confirmed by other studies, they point towards the possibility that dietary interventions could modify the risk of these diseases.

Twinings, one of UK's top tea brands, has reported that sales of premium teas have fallen in face of the current economic slowdown. The company, which has been around for more than 300 years, says that tea drinkers in the UK and the US were more likely to choose "everyday" tea instead of more expensive brands. Responding to this trend, Twinings will expand its offer of low priced teas as UK's major supermarket chains launch their own budget ranges.

The Center for Science in the Public Interest, a nutrition advocacy group based in Washington, DC., has sued Coca-Cola over "deceptive" health claims relating to VitaminWater drinks. It accuses Coke of selling sugar water using false claims about vitamin content that is supposed to boost immunity and reduce the risk of disease. Coca-Cola spokesperson has dismissed the lawsuit as "ridiculous and ludicrous". Coca-Cola bought Glaceau's VitaminWater for $4.1 billion in June 2007.

The company behind Lancashire Tea says the future of the brand is under threat after it was removed from most Sainsbury's stores - one of the biggest supermarket chains in the UK. Sainsbury's reduced the company's exposure to 33 stores compared with more than 300 previously. Lancashire Tea, which has lost money since it was founded three years ago, could face collapse within 12 weeks unless sales rise. The founders plan a "save Lancashire Tea campaign" and hope local people will help save the brand.

The second annual HealthSaver Caffeinated Cities Survey analyzed 20 metropolitan cities in the United States to rank them based on overall levels of consumption of caffeine, as well as specific categories, with regard to coffee, cola, tea, sweets containing chocolate, pain relievers, energy drinks, and caffeine pills. The Tampa / St. Petersburg / Clearwater area of Florida ranked first in the United States, after having come in second in the 2007 survey. Seattle ranked second in 2008, though when broken down into the coffee category alone, the city ranked a solid first. According to the survey, tea represents 20% of the overall caffeine intake.

Clipper tea has come out with a re-branded look after nearly a decade. The company that pioneered organic and Fairtrade teas in the UK hopes to highlight its commitment to great tasting tea through a clearer and more attractive packaging. Before introducing the new look, Clipper included over one million inserts in its tea range to give consumers a sneak preview of the new design. Clipper is the UK's biggest Organic tea brand, and the number one selling Fairtrade tea brand. It also has the second largest share of the Green Tea market.

Frito-Lay Japan is turning towards tea and coffee for a more exciting alternative to the conventional snacking concept. The Caramel Macchiatto and Green Tea Latte flavor corn chips, recently introduced in Japan, are made of puffed corn and contain real coffee, chocolate, tea and milk. The chips, dubbed caffeine snacks, pack 150 mg of caffeine, the equivalent of two cups of coffee. Previously the Japanese arm of the company has introduced unusual snack flavors such as Strawberry Cheetos and Honey-Butter Doritos.

The European Union has announced plans to crack down on foods that advertise health benefits without scientific backing. The EU has decided claims must be based primarily on human clinical trials. Animal studies can be used, with a few exceptions, only as supporting evidence. Moreover, the evidence must in most cases be "convincing," not merely plausible. The EU's rules are the strictest in the world, industry experts say, and may affect food giants such as Danone and Nestlé, as well as hundreds of smaller manufacturers.

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.

Tata Tea has started a huge restructuring plan of its US operations to scale down costs and grow revenues in a challenging environment. The company has shut down Tetley's office in Shelton, Connecticut, and is also in process of relocating the administrative, marketing and sales offices of Good Earth Corp, a specialty tea company it purchased in 2005. Tata thereby hopes to take full advantage of economies of scale from a join venture with Harris Tea Company, the largest blender and packer of private label teas in North America.

A study by the University of Southern California found that green tea may negate the effects of bortezomib, a drug used for treatments of certain types of blood cancer. The cancer drug, sold under the brand name Velcade, is said to be countered by green tea polyphenols, and could be entirely blocked by green tea supplements, containing up to 50 times as much polyphenol as a single cup of tea. Velcade is used to treat multiple myeloma, the second most common blood cancer.

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.

BG restaurant at Bergdorf Goodman in New York City is looking to add a little flair to its tea menu during the New York Fashion Week. From 13 to 20 February, the restaurant, located on the top floor of the Fifth Avenue luxury store, will launch its version of Prêt-à-Portea, an afternoon tea originally conceived by the Berkeley Hotel in London. The restaurant will serve cookies, petits fours and layered desserts based on the creations of various fashion designers, available for sale in the store below.

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.

Revolution Tea is introducing a new line of premium iced teas aimed at restaurant businesses in the US. The teas will be packed in unique one-gallon (3.8 l) containers that enable shelf-stable liquids to be dispensed safely over extended time without refrigeration, and will be available in five flavors, including Classic Iced and Golden Peach. The products will be distributed nationally by Revolution Tea and through the company’s distribution agreement with Kraft Foodservice North America.

Twinings is opting for a sustainable and compostable packaging film for its Everyday tea range in the UK. The material, called NatureFlex, is a cellulose-based film, made from renewable wood pulp and metallised in-house. The company behind it, Innovia Films, claims the biodegradable film breaks down in a home compost bin within a matter of weeks because of its low metal content. According to the manufacturer, the packaging also offers high gloss and transparency, resistance to grease and oil, as well as good barrier to gases and aromas.

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.

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.

Gong Fu Tea, a Des Moines, Iowa-based tea shop, was among the very few companies selected to supply gifts to Hollywood's elite at this year's Oscar pre-party. The tea samplers, included with other five products, were given to every guest at a fundraiser for research on cancer and Alzheimer's disease, which included many A-list celebrities. The party planners in Hollywood found the shop online using Google and contacted them directly to see if they'd be interested in contributing to the gift bags.

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.

The share price of Whole Foods Market, America's largest premium grocery chain, rose 37% on Thursday after two upgrades from analysts assessing its earnings report. The Austin, Texas-based company reported a better-than-expected 17% decline in first quarter income due to slowing store traffic. Yet analysts were encouraged by more value offerings and many internal expenditure cuts to reverse the decline in its operating performance. Sales for the 16 weeks up to January 18 were unchanged at $2.5 billion.

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.

An agreement has been reached by the Coca-Cola Co. and joint-venture partner Nestle to settle a dispute with 27 states over claims that Enviga green tea burns calories, resulting in weight loss. The companies will pay $650,000 for the settlement and have agreed to re-label Enviga to add disclosures and disclaim weight-loss benefits. Any marketing of Enviga or a similar beverage that uses the terms "the calorie burner," "negative calories" or "drink negative" must clearly disclose that the product doesn't lead to weight loss without diet and exercise. Coca-Cola introduced Enviga in the U.S. in November 2006.

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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.

Latest research suggests tea and coffee really do taste better from a favorite cup or mug. Scientists from the UK found that a person's brain is trained to believe the daily ritual of making coffee or tea should be done in a certain way in order to derive maximum enjoyment. The study indicates that caffeine is a drug of reward and people develop preferences as to how the drug is delivered. According to research, 65 percent of British have a favorite cup or mug they use for their morning cuppa.

Dr Pepper Snapple Group Inc. chief executive officer Larry Young has revealed that Snapple tea brand is currently getting a makeover. Products will be sweetened with sugar instead of high-fructose corn syrup, with bottle and label designs evolving as well. Young believes that the timing is right to invest in a makeover now, in order to take full advantage of the economic upswing later on. Speaking about the state of the beverage industry and the broader US economy, Young expects for things to pick up in the second half of 2009, with "a new start" occurring in 2010.

New research suggests that green tea can improve the health of teeth and gums. The study, carried out on 940 men in Japan, found that people who regularly drank green tea had very healthy teeth and gums, compared to those who did not routinely drink it. According to research, the anti-inflammatory effects of green tea catechins reduce the risk of periodontal disease - less bleeding with probing, decreased depth of periodontal pocket and decreased clinical loss of attachment of tooth to gum.

Ito En, the world’s largest manufacturer of green tea products and beverages, added a line of Naturally Sweet iced teas to its Tea's Tea range at Expo West 2009 in Anaheim, California. The new beverages are targeted at consumers looking to switch from sweetened to unsweetened tea. They contain only 8 grams of natural cane sugar and 40 calories per serving, and come in Blueberry Green, Citrus Black and Mango Oolong flavors. The range retails for $1.99 per unit and is available at grocery and specialty food stores nationwide.

Beverages and Beyond Brands Inc., a subsidiary of Coca-Cola Bottling Co., has recently bought Bazza High-Energy Tea brand, a company specializing in new and alternative beverages, from Louisville-based Cooper Tea Company. Bazza High-Energy Tea is a blend of green tea, guarana and yerba mate, containing a high concentration of epigallocatechin gallate, or EGCG, antioxidants. The deal gives Beverages and Beyond the rights to North American, Mexican, Canadian and Caribbean markets.

A study of eating habits among Chinese women found that mushrooms and green tea have the potential to cut breast cancer risk by up to 90 percent. Women who ate at least 10g (0.3 oz.) of fresh mushrooms daily were 64% less likely to develop breast cancer. And those who combined mushrooms with green tea saw an even greater risk reduction. Researchers suspect chemicals in the foods block tumor growth and boost the body's natural defenses against cancer.

Iranian scientists have discovered that drinking steaming hot tea may increase the risk of oesophageal, or food tube, cancer. They found that drinking black tea at temperatures of 70C (158F) or higher increased the risk of cancer in the muscular tube that carries food from the throat to the stomach. Compared with drinking warm or lukewarm tea (65C or less), drinking very hot tea (70C or more) was associated with an eight-fold increased risk. Oesophagus cancers kill more than 500,000 people worldwide each year and oesophageal squamous cell carcinoma (OSCC) is the most common type of the disease.

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.

Tata Tea, part of Tata group, is reportedly planning to consolidate its vast beverage business under a single entity to enhance operational performance and reduce costs. Tea, water and soft drink units would likely be housed by Tata International, resulting in a clear holding, operating and reporting structure. The group is also looking at merging Mt Everest Mineral Water and Himalayan brands with Tata Tea. Financial experts believe that a single consolidated entity could also be used to raise money for future expansion needs and to reduce the group’s debt.

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.

Inko has debuted its eleventh low-calorie, low-caffeine ready-to-drink white tea beverage. Inko’s Lemon White Tea has 56 calories and only 5.8 milligrams of caffeine per bottle, which makes it one of the lowest calorie-sweetened teas on the North American market. Medical studies suggest that white tea, at the center of Inko's brand, may prevent certain forms of cancer, hence the company's continued support for definitive cancer research in that area.

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%.

Nestle Waters North America, a subsidiary of Swiss food giant Nestle, has invested $15.6 million in Sweet Leaf Tea Co. with an option to buy the entire company in three years. The funding should help Austin-based Sweet Leaf expand its distribution nationwide within the next two years. Sales of ready-to-drink teas have slowed in the recession, although the category has held up better than sodas, rising 1.3% in 2008, after double-digit growth in previous years. Sweet Leaf Tea was founded in 1998 and today carries a line of 10 classic iced-tea flavors and one lemonade flavor.

Innocent Drinks, the UK-based smoothie drinks company, has sold a minority stake to the Coca-Cola Company for £30m ($44m). Under the terms of the deal, the beverage giant will receive 10 to 20 percent stake in the ethically-minded smoothie company founded in 1998 by four mates after a successful try-out at a music festival with £500 worth of fruit. Innocent Drinks, which operates in 13 European countries and had a turnover of £100m ($145m) last year, will use the funds to bolster its presence across key European markets.

Yerba mate tea, made from a shrub widespread in South America, is causing discord among scientists regarding its health benefits. While the plant contains many vitamins, minerals and antioxidants, experts caution on comparisons with green tea. A recent review of existing studies confirmed that people who regularly drink large amounts of the tea, as much as a liter or more each day, had significantly increased risk of cancers of the esophagus, lungs, mouth, pharynx and larynx. Although the studies remain inconclusive, researhers urge to enjoy yerba mate in moderation.

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.

New research on antioxidant activity in commercially available green tea bags reveals steep drops take place within the first six months if products remain unopened and unexposed to light or moisture. Scientists, who analyzed eight teas sold in different countries, discovered a slight drop-off in catechin antioxidant content early on in the storage process, and went on to observe a significant decline of 32% by the end of six months. They hope this preliminary study will prompt more research into the antioxidant storage conditions.

Bigelow Tea has partnered with Van Houtte, a Canadian gourmet coffee maker, to develop the US K-Cup market. A K-Cup is a plastic container with a filter inside, allowing a brewing machine to force hot water through it into a mug. For Bigelow, the business has expanded at a 45% annual rate since its beginnings four years ago. The Bigelow K-Cups include English Breakfast, Green Tea, Earl Grey, Cozy Chamomile, Mint Medley, and Green Tea with Pomegranate varieties.

The founding site of Peet's Coffee and Tea Company has reopened after renovation. The Vine Street shop was opened in 1966 by Alfred Peet in North Berkeley, bringing the aroma of coffee beans he roasted himself to the neighborhood. The renovations were focused on a new room dedicated to the nationwide chain, with antique coffee roaster, tasting supplies, ledgers and original Peet's coffee bags on display.

A new study suggests a link between caffeine intake during pregnancy and heart growth and cardiac function later in life. The experiment, carried out on mice, showed that even small amounts of caffeine delivered during development may negatively impact the heart. While the preliminary findings may not be directly relevant to human health or disease, they shed light on the question of prenatal caffeine exposure, as approximately 60 percent of women say they have consumed coffee during the first month of pregnancy.

Arizona Beverages has recently introduced three new varieties of organically-produced iced teas. Green Tea, Yumberry Green Tea and Pomegranate Green tea varieties use organic sweeteners such as honey and cane juice, and contain no artificial colors, flavors or preservatives. The new products will be available in the northeast US this spring and countrywide shortly thereafter. The suggested retail is $1.79 per 20oz. / 600ml bottle.

According to latest research, women who drink a few cups of tea or coffee each day benefit from a lower risk of endometrial cancer, which arises in the lining of the uterus. Women who drank more than two cups of tea per day had a 44 percent lower risk of the disease, caused mainly by older age, obesity and higher levels of estrogen. Scientists point to caffeine as a possible explanation, as it induces certain enzymes that help neutralize potentially cancer-causing substances in the body. Underscoring this theory was also the absence of any link between decaffeinated coffee and cancer risk in the study.

The new line of Tea Etc's loose leaf teas has won the 2009 "Best New Product" award, the World Tea Expo has announced. Get Real Get Loose tea range was singled out as creative and eco-friendly. The packaging is made of pre and post consumer recycled steel, water based inks, environmentally friendly adhesives and recycled paper. Compostable brew filters are included on the outside of each package, offering a novel way to brew loose tea. The range features twelve types of organic and conventional varieties.

A study published in Clinical Nutrition suggests that green tea may help people lose weight by enhancing the feeling of satiety and preventing hunger. 27 persons were subject to three weeks of negative and three weeks of positive energy balance, during which bioactive ingredients such as capsaicin and green tea were ingested on 10 separate test days while the effects on appetite, energy intake, body weight and heart rate were assessed. The Danish study indicates that a combination of capsaicin and green tea may be helpful in reducing energy intake and might support weight loss periods by relatively sustaining satiety and suppressing hunger.

Researchers from the University of Missouri-Columbia found that chemicals in tea produce consistent, biologically safe gold nanoparticles, which show promising anticancer properties. Scientists discovered that nontoxic formation of gold nanoparticles can be achieved by adding gold salts to a simple cup of tea. Gold nanoparticles have many potential medicinal and technological uses, such as targeted anticancer drugs, but currently their synthesis needs toxic reagents that make them unsuitable for use in the body. The natural chemicals used in this new method are harmless in the body and produce no toxic byproducts.

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.

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.

White tea, made from the youngest and most tender buds of the plant, is capable of breaking down fat cells and preventing new ones from forming, according to latest research. Scientists from Germany tested extracts of white tea on human fat cells and found that they reduced the amount of genes associated with the growth of new fat cells and prompted existing cells to break down the fat they contain. In the US, a third of the population is categorized as obese, compared to a quarter in the UK.

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, 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.

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.

Lipton is beginning to sell Rainforest Alliance-certified tea in the US this month. The Anglo-Dutch food giant, which launched the sustainable teas two years ago in Europe, expects all of its teas to sport the sustainable logo by 2015. Rainforest Alliance certifies farms that meet specific criteria for worker welfare, farm management and environmental protection. Unilever accounts for approximately 12% of the world's tea.

Honest Tea will be the first company to use a new lightweight bottle in the hot-fill category, developed by Graham Packaging Company. The new packs are on average 20% lighter than similar PET bottles on the market today, which means they necessitate less resources to make the bottle and fewer energy to transport it. While the bottle initially will be used for teas, juices, and isotonic drinks, it is also suitable for jellies, jams, and salsas.

Coca-Cola, the world's largest beverage maker, is said to abandon its bid for Chinese Huiyuan Juice Group, after a full $2.5 billion (£1.65 bn) takeover was blocked by Chinese regulators. The Atlanta-based US company was set to take a compromise minority shareholding, but sources now say that Coke wants complete control of the company or no involvement at all. Huiyuan Juice has a 44 percent share of China's pure juice market.

A conversation about the state of the Specialty Tea industry, impact of current economic downturn and broader picture for US businesses with Joseph P. Simrany, President of the US Tea Association.

Specialty tea has done extremely well over the last decade, evolving from niche to mass market status. How would you describe the state of the industry at the moment and what were some of the key drivers in its rise to popularity over the past few years?

Tea has been a relatively late bloomer in the United States. For the first 200 years or so it has maintained a sedentary existence and remained in the shadow of other more popular beverages such as coffee, soft drinks, and water.

In the face of this stagnation the industry, through its trade associations; the Tea Association of the USA and the Tea Council of the USA, was challenged to do something to jolt the beverage out of its morass. What ensued was a strategy and series of programs designed to associate tea consumption with a great many health benefits. These programs remain in force today and are in lock step with an ever expanding consumer desire to eat healthier. Over the last 20 years the Tea Council of the USA has spent millions of dollars to reinforce the message that tea is perhaps the healthiest beverage that consumers could drink and what started as a USA initiative has become the rallying call for the entire global tea industry.

While the health message was critical to taking the industry off life-support it certainly is not the only reason why tea has been transformed from mediocrity to vibrancy. The health message has served to make consumers and entrepreneurs more aware of tea and has allowed the industry to flourish by introducing new and exciting product formats such as RTD teas and Specialty Teas. These new forms are also in line with consumer needs and desires and should allow the industry to maintain its momentum despite the troubling economic times we find ourselves in.

Scientists have played a crucial role in identifying various health benefits of tea in fighting cardiovascular diseases, Alzheimer's and diabetes. Despite hundreds of studies on the beverage's health benefits, why is conclusive evidence still hard to come by in the scientific community and what positive steps could the Association take in light of increasing evidence on that subject?

There is no shortage of "conclusive evidence" amongst the thousands of scientific studies that have investigated the health benefits of tea. What are missing are clinical studies (studies conducted with real people as opposed to laboratory tests). Since these studies can cost many hundreds of thousands of dollars to conduct, in some cases millions of dollars and several years to complete, there is little that the Association could do with its current budget. During the interim, the Tea Association and Tea Council of the USA is maximizing the coverage of what we have to work with and routinely identifies between 600 million and one billion positive consumer impressions directly resulting from our PR efforts. We are convinced that it is only a matter of time before we will have the clinical studies required to petition for an official health claim.

The Specialty Tea industry was founded on consumers' desire for healthy, natural and high quality products. How might the current economic climate affect the playing field in the market and what measures are at the Association's disposal to bolster the sector during these tough times?

These are troubling times that we find ourselves in and the bad economy is likely to negatively affect every business segment in every country in the world. There is hardly anything that the Association might have in its arsenal to offset the damage done by the very institutions that we look to for stabilization.

Despite these troubling times, tea is inherently better positioned than most industries in that consumers always have a need for food, health, and tranquility all of which tea is uniquely qualified to deliver. It will call for some creativity on the part of specialty tea purveyors and perhaps a flexible approach to pricing to help reduce concerns of affordability.

Government regulators in the US and abroad have so far been quite stoic towards the plethora of scientific studies highlighting tea's potential. Is such a stance justified given the abundance of scientific evidence and how could a more favorable FDA position help the tea industry?

US regulators are reluctant players when it comes to the dissemination of food health claims beyond the traditional Food Pyramid Guidelines. They are very concerned that too many specific health guidelines will only serve to confuse consumers and distract them from the primary message. As a result of that inherent mind set, they have put together very specific requirements that must be met before they will even consider additional, product specific health claims. They apply these requirements consistently and very infrequently grant new health claims to specific classes of food.

Of course the Tea Industry would benefit greatly from a clearly worded, consumer friendly, health claim but in its absence there is still much that the Tea Council and the industry could do to reinforce the consumer perception that tea is indeed a healthy beverage.

Experts often cite America's capacity to innovate as a key to overcome crises and ensure economic prosperity. Which sector of the industry looks most dynamic in the current environment and where do you see the growth coming from in the foreseeable future?

Somewhere along the way to greatness the USA has lost its way to a point where there is precious little (except freedom and opportunity), that we excel at. The obvious area that we need to regain leadership in is in the area of innovation. Here we have the opportunity to set the pace for the rest of the world and lead the rest of the world from where we are today to where we could be in the future.

While innovation could play an important role in almost all industries, it is particularly important in the fields of energy, food, transportation, communications, medicine, micro & nano technology and the environment. These are all industries that are critical to our very existence and to the sustainability of the human race. The USA needs to beef up its educational facilities to ensure that we steer more of our young people into these important fields. Also we need to take such other actions to ensure that we remain a haven for the world's brightest minds to encourage them to learn here and work here towards breakthrough discoveries in each of these fields. Then and only then will we be in a position to regain our former prominence and respect.

While we are on the road to recapturing our former greatness we need to also provide political leadership from a standpoint of our actions both at home and abroad. We need to breathe new life into the United Nations and to help transform it from an impotent artifact to a vibrant humanitarian and peacekeeping force that operates on consensus flowing from old fashioned diplomacy. We have the resources to make this happen and all we need now is the resolve. Let us all hope for a good start in 2009.

A green tea compound is found to inhibit sexual transmission of HIV virus when used as an ingredient in vaginal creams. German researchers discovered that the green tea polyphenol, called epigallocatechin-3-gallate (EGCG), is capable of neutralizing a protein in sperm which serves as a vector for viral transmission during sex. Scientists believe that EGCG could provide a simple and affordable prevention method for poor and developing nations, and would also enable women to ensure proper protection during sexual intercourse.

In an attempt to create the next generation of energy drinks, companies are increasingly looking into an amino acid found in tea, called L-theanine, to enhance concentration and focus. Preliminary studies suggest the substance might calm the brain to increase concentration and mental stamina, instead of a quick energy boost currently provided by caffeine and taurine. L-theanine is readily absorbed in large quantities, crosses the blood-brain barrier and gets into the brain fast. Products such as SoBe lifewater, Vitamin Water, ViB and new Gatorade drink Tiger, all contain L-theanine.

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.

Arizona Beverages and Bigelow Tea have formed a partnership to introduce a new line of organic ready-to-drink iced teas. The new line of 20 oz. (600ml) green tea beverages will benefit from Bigelow's expertise in the specialty tea sector, whereas Arizona will supply its know-how in packaging and distribution. The range includes the following flavors: Acai White Cranberry, Original Green, Lemon Ginger and Mango Lychee.

Scientists found that high doses of a chemical found in green tea could kill cancer cells and reduce symptoms of leukemia, a blood or bone marrow cancer. Preliminary results suggest that humans are tolerant to very high doses of an active ingredient in green tea, epigallocatechin gallate (EGCG), and that many trial patients saw a regression of the disease. Researchers believe that the treatment would not be potent enough on its own, but could make other anti-cancer treatments like chemotherapy more successful.

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.

Ito En, the Japanese beverage manufacturer, is expected to announce a 46% drop in consolidated operating profit to about 10.3 billion yen ($108.7 million) for the fiscal year ending in April 30. Causes for the unexpected fall include higher materials costs, concerns about produce grown in China and weak consumer spending, which forced the company to sell more products at discounted rates. Overall sales are expected to remain unchanged at 328 billion yen ($3.45 billion) even though the firm had anticipated a 3 percent increase.

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.

A conversation about Specialty Tea market in the UK, its similarities to the wine industry and the modern conception of tea business with Jane Pettigrew, writer and consultant based in London, UK.

Specialty tea has done extremely well over the last decade, evolving from niche to mass market status. How would you describe the state of the industry in the UK at the moment and what were some of the key drivers in its rise to popularity over the past few years?

Tea in the UK is still very much an everyday brew that many people take for granted and really don't know very much about. They don't realise, for example that most tea bags are filled with a blend of teas from Vietnam, Indonesia, Rwanda, Malawi and other small African countries as well as the better known India and Kenya. In fact, most people have probably never stopped to think about where their tea comes from or how it is blended with such practised skill.

However, if you liken our tea trade to the wine trade in Britain about 30 years ago, it becomes clear that with the right sort of marketing, the right marketing language that makes some sense to the consumer, the placing of tea (or indeed any product) into a more classy and stylish (possibly more expensive) category, and with a more adventurous range of products available in normal high street shops where everybody shops, British consumers will begin to show an interest. The wines on offer in the UK in the 1960s and 70s were limited and of pretty poor quality, but today, everyone knows their grapes, their origins and their preferences. The same thing is now happening with speciality tea - more people now know that there are greens and whites as well as blacks - they may even be aware of oolongs and puerhs. More teashops are to be found in mainstream shopping centres and high streets, more varieties of traditional and more unusual teas are on show on the shelves, marketing material, menus and packaging carry much more inspirational descriptions and tasting notes, staff in hotel lounges, tea rooms and tea retails stores are better trained, brewing methods and presentation have improved and prices per pot or per kilo have gone up - thus placing the product into a connoisseur category and making tea more than just a brown coloured liquid. It is no longer considered 'naff' to drink tea after dinner, it is chic and stylish and such a good choice! Even the Financial Times now includes long articles in praise of speciality teas from China, Taiwan, India and other far off exotic places.

Other reasons for the new upward trend are all the health messages that appear in daily newspapers and glossy magazines almost every day of the year. Tea is now seen as a healthful beverage, an excellent alternative to coffee, carbonated drinks and alcohol. Many people now recognise that it's fun, young, cool to meet friends in a tearoom; it's fashionable to take afternoon tea; it's a relatively low-priced treat to buy good quality loose leaf tea to brew at home; and beautifully packaged tea makes a great gift. And after all we now grow our own, very expensive, very exclusive tea in Cornwall. That has really made people sit up and take notice.

The Specialty Tea category in Great Britain is relatively new. What are the reasons behind this delay in a country historically associated with tea culture?

I think firstly, that the British have never been particularly adventurous about or even interested in their food and drink. We have a very pragmatic approach I think and have no historical culture as in France or Italy where food and drink is seen much more as one of the essential pleasures of life on which a great deal of time and thought is spent.

Added to that is the fact that, since the introduction of the teabag, most people's understanding of what tea is and where it comes from has been lost. So, if you talk to people now in their 60s, 70s and 80s, they tend to have a much better knowledge about different types of tea and will choose a tea by its origin rather than just accepting tea (although that does depend on background and 'class' etc). They probably know that teas are different and why, and may well have visited tea gardens or some may even have grown up on a tea plantation. People of a younger generation, on the other hand, will be used to simply drinking 'tea' usually made with a tea bag, but will not have a clue about where the tea inside has been grown or that the tea inside the tea bag is a blend.

Because tea is so much a part of our culture, people tend not to stop and ask where it comes from, what it is etc. It's a little like any other everyday commodity - it's something you need, something you take for granted and so, when you pick up a packet from the supermarket shelf, you may choose a particular brand or be aware of the price but that's about all most people think about while shopping. Even buyers in the big supermarkets don't have a clue what they are putting out onto the shelves - to them it's just 'tea' - imagine them doing the same with wine today!

Quality tea usually comes at a price. With the UK experiencing one of the most severe recessions in modern history, how will this newfound appeal for luxury produce likely be affected?

I don't think we can know this yet. If enough people have already started choosing speciality teas from speciality suppliers and are hooked on the quality and the taste, then they will perhaps stay with their choice. Others will inevitably cut back and perhaps return to cheaper types of tea that they can pick up for less in the supermarket.

You are a leading authority on tea and consult many businesses in the UK and abroad on various aspects of this unique beverage. Have you already noticed a shift in the way clients feel about the tea business given current market conditions and what are some of the concerns that are being raised?

No. I think obviously people are aware of what is happening and will be concerned as to how it will affect them but so far, most tea businesses seem to be doing well. Apart, that is, from Whittard who has recently announced to be going into receivership. I'm not sure that that is anything to do with the recession though.

Where is the tea industry likely to be heading in the foreseeable future, and what consumer / product trends may we expect to move the category forward in these troubled times?

So far, despite the economic downturn, established tea rooms and tea bars do not seem to be suffering. The general feeling seems to be that quality tea is a relatively low-priced treat and, as people need treats during a recession, those peaceful, recuperative, calming moments with friends or alone over a pot of tea will continue to be part of people's lives. The individual success or otherwise of any business will obviously depend on how well it matches expectations of customers. But as with wine, once a tea drinker has refined his or her palate to the appreciation of top quality, fine world teas, they will not easily turn back to cheap tea bags that perhaps they drank previously.

I think we will see more and more of the bright, young style of the more modern tea shops where friendliness, service, great offerings, and a really special atmosphere brings customers back and back. In some cases that will be funky, buzzy, connected to the lively atmosphere of city life; in others it will be a more traditional, calmer, quieter but still stylish and contemporary. I think we will see more innovative brewing methods and more thoughtful presentation, lots of glass and more quirky designs, less of the old fashioned Victoriana. People want to feel they are moving forward not back. More people now recognise that tea does have valuable connections to our past but also to our future and they do not care for the stuffy, over-flowery, backward-looking approach to tea. Now they want a freshness, a lightness of touch and a creative spirit. I also think tea drinkers will continue to show an interest in more unusual origins - perhaps Korea, Taiwan, hand made teas from Africa, etc. They will be captivated and hooked by the stories that connect them to the people who make the teas they like to drink.

After 12 years as a language and communications trainer, Jane opened the well-known tea-shop, Tea-Time, in Clapham, south west London with two friends. As the shop became a thriving success, Jane also started writing and lecturing about tea and eventually sold the shop to become a freelance editor, writer and consultant to a number of tea companies and organisations including Tea International, journal to the Tea Trade, the UK Tea Council, The UK Tea Club, Tea and Coffee Trade Journal, Tea and Coffee Asia, and the Indian Tea Board. She has also trained staff and given presentations in a number of five start hotels and top tea rooms around the world and now gives tea masterclasses in London under the auspices of The UK Tea Council.

She has written 13 books on tea, 18 other books on food and food history, and articles and essays on various tea-related subjects have appeared in newspapers and magazines both in the UK and overseas. She appears regularly on television and radio to discuss the various aspects of tea and tea history.

www.janepettigrew.com

In a new study, Australian scientists have found that frequent tea consumption can significantly reduce the risk of suffering a stroke. Researchers discovered that long-term consumption of green tea, at least once a week, substantially decreases ischemic stroke risk. The study looked into green tea consumption of Chinese patients who suffered a stroke and found encouraging news when comparing frequent drinkers with infrequent or nondrinkers. Major inverse dose-response relationships were also found for years of drinking and the amount of dried tea leaves brewed.

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 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.

Numi Tea has recently partnered with Big Tree Climate Fund to offset its carbon footprint. The partnership is based on a twofold offsetting program, which includes purchasing renewable energy certificates and carbon offsets. The Oakland-based company underwent an annual emissions audit through calculations of carbon output in electricity and natural gas usage, employee air travel, use of company car, pounds of landfill use and overall shipping for 2008. Big Tree will then source and supply the equivalent amount of carbon offsets and renewable energy certificates.

A conversation about the Chinese tea market, the differences in consuming tea between China and the West, and the actions that the government is taking to boost the industry with Lydia Liu, renown tea buyer from China.

China has historically been a large producer and consumer of tea. How would you describe the state of the tea industry at the moment and has it yet felt the effects of the global economic slowdown?

China is indeed a large tea producer and consumer of tea. Chinese teas are famous in China and overseas. There are many Chinese people like to spend money on high quality traditional Chinese teas such as Ti Kuan Yin, Mao Feng, Long Jing, Jasmime tea and Pu Erh tea. Higher grade and early spring teas can be sold at a very expensive level which is double or treble that of a foreign price. Most Chinese people enjoy the pleasant taste of teas with beautiful tea sets. People also like to use nicely packaged teas as presents during festivals. So tea is very important for Chinese daily life. As a result, the production is large to meet the huge demand of tea drinkers that has been around for so many years.

At the moment due to the economic slowdown, Chinese market is quiet. There are less people that go out to eat and consume. So the tea market is difficult to maintian. Many people have scaled back on the quality of tea they drink. Some have abandoned tea entirely and drink water instead. On the other hand, lots of people in China have lost jobs and new graduates cannot find work as well, which makes the situation worse. So generally speaking, Chinese tea has been effected by the present economic slowdown.

The Chinese market is hard to penetrate for foreign tea companies. What differences exist in local preferences of tea compared to the Western world and what are some of the major trends in the market right now?

1.Chinese people prefer traditional Chinese teas such as Ti Kuan Yin, early spring Long Jing and green tea, jasmine tea etc. All these teas are natural teas without any added flavor. Some good Ti Kuan Yin can be brewed for more than ten rounds. These teas are popular everywhere in China. Western people also like certain high quality traditional Chinese teas such as Ti Kuan Yin and Long Lung, but they pay more attention to the appearance while Chinese like the endosarc.

2.Chinese people do not like white tea. As they think it is too light. Western people like white tea with beautiful appearance such as Flowery Pekoe and Pai Mu Tan.

3. Chinese people do not like flavored teas, while the western people like different kinds of flavor teas with various essences and flower notes.

4.Chinese people seldom drink tea from teabags, as local tea lovers use tea sets to enjoy tea, whereas people in the West prefer the convenience of teabags.

5.Chinese people sedlom drink black teas while the Westerners love different kinds of black tea with milk.

Due to the aforementioned differences in tea taste, I think this is why foreign teas have found it difficult to come to China. At the moment only Lipton brand is widely present Chinese supermarkets, as they have spent a lot of money on advertisement and shelf space in supermarkets.

The trend driving the tea market now is the Chinese young people, who are ready to accept foreign teas such as flowery teas, black teas and bottled teas. Maybe after some time these teas will become popular in China, given that the economic situation improves as well. But I still believe that most of Chinese people will keep on drinking traditional Chinese teas such as Ti Kuan Yin and Long Jing. Unlike Western people, Chinese are rather conservative and traditional.

Consumers seem to be tightening their belts in China as well. How has this affected tea producers across the country and how do they cope with a falling demand of their produce? Will the negative influence be felt more in domestic demand or on exports?

This situation has affected the tea producers. In early April this year I went to visit some tea gardens and factories. During my trip, we heard lots of stories about factories being closed or in bankruptcy. In Zhejiang, I also saw a famous factory which was empty, with many morden machines not operating any more. April is normally the busiest month to produce teas. I was so surprised to see the effects of the recession in tea factory. I don't think many factories have plans to face the falling demand for tea. Some are just waiting to see if things can be changed or if the government can give some assistance. Some have to switch the tea factory to other uses or rent the sapce out for others. Some cannot afford the cost and have to close.

Exports will be more hurt than the domestic market. Of course there are many reasons. First, Chinese import and export regulations ase always very strict and complicated. Only the import and export companies can import and export goods. An local foreign company office cannot import or export - they must trade through another company. Also, the procedure of importing and exporting is very complicated. Secondly, exported teas require to be inspected by local authorities in the tea factory. The factory must be in line with the strict rules. New guidelines were introduced last year for producing factories, so many had to shut their doors because they couldn't comply with them. This means that not every tea factory can apply for inspection for export. Finally, in the past two years, the US dollar exchange rate has been low compared to other foreign currencies, which made the cost in Chinese Yuan high and foreign payment low.

You mention Lipton as the only major Western player to have penetrated the Chinese market. What are the some of the local brands that are encountering success in the marketplace and what distinguishes them from the rest?

Lipton has penetrated the Chinese market successfully after many years of hard promotion and advertising activity. In China the most famours brand is Tian Fu. They have opened multiple tea shops across the country and sell teas only through the shops. In fact, Chinese tea names are more popular than brand names. For example, if a person wants to buy a Ti Kuan Yin, he won't care about the brand, but he will try to taste the teas before he buys. This is the most popular way selling tea in China

The government plays a central role in defining business policies of many Chinese industries. Is it aware of the current malaise in the tea industry and what plans does it have to support tea producers and businesses during this difficult period?

The government has been aware, these past two years, of big drop in exports and of the recent recession. They are trying to implement many policies recently, with the aim of encouraging consumption inside China. If the percentage of consumption becomes greater than the savings rate, the economy will recover. So many policies such as reducing the interest rate and stabilizing the stock market are based on this, because China doesn't rely on exports to bolster its economy. From this point of view, it is also something that can impact the tea industry, even though there is no tea-specific policy, as many industries are facing the same problems as tea growers. So at the moment it is not simple to ease the difficult situation of tea producers. It will take time to recover.

As a tea buyer, you have the unique advantage of being in touch with many producers and brokers across the country. How would you describe the current sentiment in the marketplace and what do insiders expect for the year ahead?

I had many chances to talk to tea producers and brokers. The business is now not doing well, which is quite upsetting to them. The tea markets are very quiet. Many people lost jobs or receive no salary due to a reduction in business and income. Most of them are waiting. I hope next year will be better. The future is difficult to predict, but the government is doing the best it can to stimulate the economy. So I think maybe in middle of this year things will be recovered and start improving. We should not be too gloomy.

Lydia is a tea lover from China and has dealt with Chinese tea exports for 15 years. She has a thorough knowledge for various kinds of Chinese teas and her favourite tea is Chinese Lung Jing.

Coca Cola has recently released a green tea flavored beverage in Japan. Coca Cola Light Plus Catechin contains green tea antioxidants, called catechins, and is aimed at young, health conscious women. Its arch-rival, Pepsi, also plans to bring a similar health-focused drink on the market, which will go by the name of Pepsi Shiso and is based on basil.

Scientists from Arizona are conducting a clinical study to analyze if green tea can help prevent cervical cancer. The research, funded by the National Cancer Institute, is testing a green-tea extract's effect on viruses that can cause cervical cancer in hopes of finding the first non-surgical way of preventing the disease. The group of viruses, commonly known as HPV, is the most common sexually transmitted infection in the United States, with an estimated 20 million people carrying the virus.

India's Tata Tea has reported a staggering 55 percent fall in consolidated net profit for 2008-2009 period. Net profit came in at Rs. 700.55 crore ($148m) for the year ending March 31, 2009 against Rs. 1,542.55 crore in the previous year. A sharp rise in input costs and fluctuations in the commodity and currency markets have negatively impacted the results, according to the company.

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.

The Brazilian Justice Ministry approved the acquisition of local bottled-tea maker Leao Junior by US beverage giant Coca-Cola. However, to avoid market concentration, Coke must sell its local Nestea brand for the deal to go through. Matte Leao is Brazil's leading maker of bottled teas. At the end of 2006, the latest data available, Matte Leao held a 45.7% share of the bottled-tea market, compared with AmBev-distributed Lipton, at 24.7%, and Nestea at 24.4%.

Findings of a recent study into the effects of green tea on prostate cancer found that certain compounds have an influence on the progression of the disease. The studied substance, polyphenon, was found to significantly reduce the serum markers predictive of prostate cancer progression. In collaboration with Columbia University in New York City, the researchers are currently conducting a comparable trial among patients with breast cancer.

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.

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.

Narien Teas introduces Hawaii-grown tea and thereby becomes the first US mainland tea retailer to offer tea from the exotic island. The Florida-based company started selling Kilinoe, or "misty rain", green tea sourced from Hawaii's Big Island Tea. The company believes that Hawaii's fertile volcanic soil, wafting mists and unique island weather patterns make it an ideal spot for tea farming. The price for spring-harvest tea will start at $9 for five grams.

Lipton has teamed up with National Geographic to accentuate its sustainability efforts during the launch of its Rainforest Alliance-certified teas in the US. National Geographic will create photographs and videos documenting the company's journey and commitment to sustainability. The material will feature images from Lipton's Tea Estate in Kericho, Kenya and will be distributed via multiple National Geographic media platforms.

The price of afternoon tea at Dublin's exclusive Gresham hotel has been cut by nearly 30% due to a decrease in customer spending. The tea, served with a three-tier cake, will be available for €18 ($25), instead of the previous price of €25. This comes in stark contrast to Britain, where prices for such treats remain high due to a comeback of this typically British pastime, with one in ten Britons planning to succumb to the pleasures of afternoon tea.

Peet's Coffee & Tea introduced a new line of ready-to-drink iced teas made from whole tea leaves. The new range includes five lightly sweetened beverages with natural flavors such as peach, mint or honey, and an unflavored version. The teas are initially available at 25 Peet's retail outlets in California, as well as select gourmet food stores in the region. According to the company, cold tea is the primary way in which people consume tea in the U.S. and the bottled tea market has grown steadily at about 15 percent in recent years.

Arizona Beverages has teamed up with Nestlé Waters North America Inc. to create a line of tea-infused waters. Arizona Tea Waters is an organic low-calorie, tea-infused beverage line made using spring water, green tea, sugar cane and fruit extracts. The drinks will start off using Nestlé's Poland Spring water and will later be made from company's other regional water sources. The 20-ounce (600ml) amber PET plastic bottles with an oxygen barrier retail for $1.49.

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.

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.

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.

Scientists have discovered that a spray made from green tea could offer powerful protection against skin cancer. Researchers from Cleveland, Ohio say the tea spray has the capability to enhance skin's in-built immune system and reduce the damage caused by sun's ultraviolet light. It is believed that this blend can not only protect the skin, but prevent cellular damage that leads to skin cancer. Antioxidants known as polyphenols are thought to explain these beneficial effects.

Lipton has been confirmed as the biggest buyer of tea during the first half of the year at weekly auctions held in Mombasa, Kenya. The company, owned by anglo-dutch conglomerate Unilever, bought 32 million kilograms of tea in that period, according to the founding brokerage firm of the auction. The amount represents a fifth of all tea sold in Mumbasa. Global Tea Commodities Ltd. came in distant second with 14 million kg, followed by James Finlay Ltd. with 13.5 million kg. Kenya is the world’s biggest exporter of black tea.

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.

A wide ranging new Cochrane review of studies that examined the affects of green tea on various cancers, including breast, lung and prostate, has yielded conflicting results. The review, compiling 51 studies that included more than 1.6 million participants and were conducted from 1985 through 2008, found that green tea alone couldn't account for cancer prevention in most cases. Researchers believe further studies are needed to investigate its health benefits, yet remain optimistic about green tea's potential to fight off certain types of the disease.

Arizona beverages has just launched a line of compact beverages comprising of two energy shots and one relaxation shot. Scientifically formulated Fast Shots are based on green tea and mixed with ingredients such as vitamins, minerals and taurine in order to give a jitter-free boost of energy or to help relax. The products contain no chemical preservatives, no artificial flavors or colors and come in 2 oz. (60 ml) PET bottles.

Japanese scientists discovered that prolonged consumption of tea could weaken bones due to high content of toxic fluorine. Particularly black and oolong tea are known to hold large amounts of the substance. According to the study, tea beverages contain up to 70% more fluorine than standard tap water, which typically has 0.8 milligrams per liter. Researchers concede that there is no immediate risk to human health, yet they call for a standard to be set and displayed on tea-based products in order to reduce the risk of bone rupture.

Starbucks, owner of Tazo Tea, is experimenting with a new store concept in its home town of Seattle. One of the stores will reopen under the name "15th Avenue Coffee and Tea", featuring live music performances and poetry readings to give the premises a more local and grassroots touch. Also, beverage menu will be enlarged to include alcoholic drinks such as beer and wine. This comes as a response to customers reigning in spending during the recession and rival businesses upgrading their coffee menus.

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.

Red Mango, a manufacturer of frozen yogurt, will be the first retailer to sell made-to-order iced teas fortified with probiotics. The new beverage line contains a patented strain of probiotic shown to help support the immune system and regulate the digestive system. Probiotics are dietary supplements of live microorganisms that aim to improve intestinal microbial balance. The range contains three flavors: lemonade green tea, vanilla black tea and wildberry hibiscus tea, all sweetened with natural cane sugar.

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.

According to a study published in Journal of Food Science, black tea has the potential of managing the development of diabetes. Chinese scientists, examining the polysaccharide levels of different tea varieties, found that polysaccharides in black tea had the most glucose-inhibiting properties. Polysaccharides are a type of carbohydrate that may benefit people with diabetes because they help retard absorption of glucose. Black tea polysaccharides are also shown to have the highest scavenging effect on free radicals, which are involved in the onset of diseases such as cancer and rheumatoid arthritis.

The world's largest tea producer, India's McLeod Russel, has set its sight on African tea plantations, according to a company official. The company, which produces approximately 80 million kilograms of tea annually and exports around 30 million kilograms, is focusing primarily on Kenya and hopes the acquisitions can add 5 to 10 million kilograms in the near future. McLeod Russel plans to source between 20 and 30 percent of its production from outside India in the next five years.

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.

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.

In a move to cut costs and boost profits, PepsiCo agreed to buy bottlers Pepsi Bottling Group and PepsiAmericas in a $7.8 billion (EUR 5.4 bn/£4.6 bn) deal. The second-largest soft drink maker in the U.S. will pay a premium of about 45% to the bottlers' closing prices the day before Pepsi launched unsolicited bids in April. Buying the bottlers will consolidate 80% of Pepsi's North American beverage volume, which will speed decision-making and eliminate friction between the companies.

Scientist found that tea-making can reduce stress levels by up to a quarter. The findings reveal that even a single cup of tea can significantly reduce anxiety levels after suffering a stressful experience. Moreover, psychologists discovered that the act of putting the kettle on also helped by tapping into a collective conscious and symbolism. The study showed a 25% increase in anxiety for those that did not receive tea immediately after the stress-inducing test, whereas those who were given tea actually demonstrated a four per cent reduction in stress.

Latest study from Kingston University in the UK suggests white tea reduces age-associated wrinkles. Results showed white tea prevented the activities of the enzymes which breakdown elastin and collagen which can lead to wrinkles that accompany aging. The findings also indicate that white tea reduces the risk of inflammation which is characteristic of rheumatoid arthritis and some cancers.

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.

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.

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.

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.

McLeod Russel, the world's largest tea producer, has purchased a controlling stake in Gisovu Tea Company via its UK arm. The Rwandan tea company has an annual output of 1.7 million kilograms of tea, which would bring McLeod’s annual production capacity close to 82 million kg. Borelli Tea Holdings Ltd, a wholly-owned subsidiary of McLeod Russel in the UK, will pay $2.75 million for a 60% stake in the company, with the rest of the shares owned by the Rwandan government and local co-operatives.

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.

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.

American Heart Association has issued guidelines on daily sugar consumption aimed at cutting sugar intake drastically from current levels. An average American consumes 22 teaspoons of sugar each day, whereas the new guidelines suggest 6 teaspoons for women and 10 for men. The guidelines include added sugar, commonly found in soft drinks, candy, cakes, and cookies. Some of the most common added sugars are corn sweetener, corn syrup, dextrose, glucose, high fructose corn syrup and honey. The biggest source of extra sugar in a typical diet are soft drinks and other sugar-sweetened beverages.

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.

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%.

A study from Purdue University found that including sucrose and vitamin C in ready-to-drink green tea beverages may boost their health profile. Research suggests that adding sugar and vitamin C increases the absorption of green tea compounds, epigallocatechin (EGC) and epigallocatechin gallate (EGCG), by up to 200%. A separate study from Hong Kong has recently discovered that the cells of regular tea drinkers may have a younger biological age than cells from non-drinkers - difference being about 5 years of life.

A study from Scotland and France indicates that green and black tea may lower the risk of heart disease by preventing fatty deposits from building up in arteries. The research, carried out on hamsters with a high-fat diet, found a "remarkable" reduction in fatty build-ups of up to 96%. Scientists believe similar effects can be replicated in human trials, as the administered amounts were equal to a cup of tea per day. The protective effect apparently comes from plant-derived chemicals known as phenolic compounds and flavonoids found in tea and some juices.

Celestial Seasonings celebrated its 40th anniversary this week at its headquarters in Boulder, Colorado. Over the years, the company, specialized in teas, herbs and coffee, and focused on social responsibility and sustainability, has grown from a small supplier of herbs to a major player in the tea business, with sales over $100 million worldwide. Celestial Seasonings' products are currently sold in 60 countries and ingredients are sourced from over 35 countries.

Whittard of Chelsea was forced to withdraw some of its products recently due to their macadamia and almond nut content, which was not specified on the label. UK's major tea manufacturer had to pull Rooibos Cream Caramel Flavored Tea, Sticky Toffee Pudding Tea and Spiced Chai Green Tea products off the shelves to prevent complaints from people allergic or intolerant to nuts. The company is in touch with relevant allergy support organizations, which will inform their members of the withdrawal.

One of Britain’s award-winning tearooms is claiming to be the first tearoom to offer teas from five continents. Peacocks, owned and run by George Peacock and Rachel Lemkov, has been operating for five years in Ely, Cambridgeshire, and has won several awards from the UK's Tea Guild. In 2007, it was named Tea Guild's Top Tea Place. The menu contains 66 teas from around the world, including varieties from Brazil and Australia.

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.

After a two-year effort, Lipton's tea plant in Suffolk, Virginia has been announced as "zero landfill". The plant, which produces tea bags and other products, recycles 70% of the waste, with the remainder being composted or converted into renewable energy. Initiatives include eliminating plastic strapping on pallets, replacing non-recyclable cleaning wipes with reusable rags and using reusable plastic pallets instead of wooden ones. Suffolk's plant, Lipton's only plant in the U.S., is the largest plant in the country.

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.

Scientists from Hong Kong have found that chemicals in green tea may help strengthen bones by stimulating their formation and slowing the process of weakening them. In a laboratory experiment on rat cells, they have noted that the ingredient epigallocatechin (EGC) in green tea boosted the level of a key enzyme that promotes bone growth by nearly 79 percent. Also, they found that EGC increased the density of bone minerals in the cells, thereby reducing the risk of pain and fracture.

According to a new Chinese study, funded by Lipton Institute of Tea, regular consumption of green tea was shown to promote weight loss and improve body composition in moderately overweight individuals. This study analyzed the effects of green tea consumption on body weight, body fat mass, as well as the distribution of fat. It found that body weight, waist circumference, intra-abdominal fat and the total lean mass all decreased after 90 days in the group that drank the tea with the highest concentration of catechins, equivalent to 6 to 10 daily cups of green tea.

Scientists at the National Cancer Center in Tokyo examined six studies involving links between tea consumption and stomach cancer, and noted a 20 percent decrease in stomach cancer risk for women drinking 5 or more cups of green tea per day. The results remain true, even when smoking was taken into account. However, the researchers found no correlation between tea drinking and stomach cancer among men.

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.

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.

Honest Tea announced the hiring of a Coca-Cola executive to expand its distribution. The Bethesda-based company, part-owned by Coca-Cola, will tap the experience of Chuck Muth, a 30-year veteran of the bottling industry, who most recently worked as senior vice president of sales and marketing for the Philadelphia Coca-Cola Bottling Co. Coca-Cola bought a 40% stake in the company for $43m in 2008. Honest Tea is on track to make $50 million in sales this year, up from $38 million the year before.

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.

Coca-Cola, the world’s largest soft-drink maker, is testing a machine for restaurants that can brew more than 18 different kinds of iced tea. The device, called the Flex Fresh, can make tea by the glass, pitcher or gallon, with a possibility to add sweeteners and flavors. The move is aimed at boosting sales volume by offering more variety, as Coca-Cola continues to trail PepsiCo on the ready-to-drink tea market. PepsiCo has 39 percent of the ready-to-drink tea market in the US, compared to Coke's 9.6%.

A human trial studying the relationship between green tea and body weight has found that men receiving catechin-enriched green tea showed a significant reduction in body weight, waist circumference and body fat as compared to men given catechin-depleted green tea. Average weight loss in catechin-enriched group was 5.3 lbs (2.4 kg), as compared to 2.9 lbs (1.3 kg) in subjects ingesting catechin-depleted product. In a separate study, scientists discovered that consumption of green tea catechins increased energy expenditure, by boosting the total amount of fat burned at rest and increasing the total number of calories burned on a daily basis.

A new study by Japanese scientists has shown that green tea may prove highly beneficial for health and cut down the risk of developing blood cancer. Drinking 5 cups of tea per day was found to slow down the growth of cancer-causing viruses and micro-organisms. The study, carried out on more than forty thousand adults in Japan, suggests that those who regularly consume 5 cups of green tea have 42% lower chances of developing all types of blood cancer than those who drink one or fewer cups of the green tea.

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.

Japanese scientists have found that green tea helps women reduce the risk of suffering from pneumonia. According to the study, drinking 5 cups or more of green tea daily has shown to cut the risk by up to 47%. However, even small amounts of green tea have a positive impact, researchers say. Drinking as little as one cup of tea or less per day was associated with a 41% decrease in risk.

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.

Researchers at University Medical School in Arizona are looking for test subjects to participate in a study on green tea's potential in preventing the human papilloma virus, a virus that can lead to cervical cancer in women. Previous experiments have shown that green tea extract helps clear up cervical lesions created by the virus. The goal of the study is to see if more women who receive treatment with Polyphenon E, a chemical present in green tea, clear the HPV than those receiving the placebo.

A tea room in Fort Collins, Co. opens with an aim to support international activism and social awareness while enjoying a nice cuppa. Happy Lucky's Teahouse and Treasures, which serves almost a hundred varieties of loose-leaf tea, is selling a range of Cambodian-made merchandise such as bags, scarves and purses. The tea room is also donating 10% of its sales to a charitable organization founded by its owners and focused on creating and sustaining schools in Cambodia.

New Leaf Brands, Inc., a company selling ready-to-drink iced teas, is expanding its distribution into Whole Foods Market in the Northeast and Mid-Atlantic regions of the US. The beverage line, containing only natural ingredients, will be available in additional 22 stores. According to New Leaf's demo manager, the target audience at Whole Foods fits the niche of people looking for something sweeter without having to choose something with high fructose corn syrup.

Twinings, the famous British tea company, is planning to move a large part of its domestic operations to Poland and China. The company, owned by Associated British Foods, is consulting employees over plans to reorganize its tea operations, with up to 400 employees, or half of its UK staff, predicted to lose jobs. Under the plan, the company's existing Chinese factory would be doubled in size and a new factory would be built in Poland, to cater for the growing taste for tea in continental Europe.

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.

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.

Yorkshire Tea brand, part of British-based Taylors of Harrogate coffee and tea manufacturer, is launching a new range of seasonal tea varieties. The range is meant to underscore the brand's specialist tea knowledge and cater to customers' demand for seasonal produce. Yorkshire Gold Season’s Pick line includes Assam Gold, Rwanda Gold and Kenya Gold, with each tea available for select four month seasonal periods. Retail price is £2.99 for a box of 80 tea bags.

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.

Drinking up to eight cups of tea a day may offer significant health benefits, according to a dietician from London's King's College. A review of 47 published studies suggests that a daily intake of 400mg of caffeine, equivalent to eight cups, delivers key benefits in terms of mental function and heart health without any adverse consequences. The scientist found that regular tea drinking could help lead to reduced mortality, a lower risk of heart attack and lower cholesterol.

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.

The Wellness Group Tea, a Singapore-based tea company which opened last year, is creating a line of teas inspired by fashion trends worldwide. The luxury tea range integrates colors and trends of fashion lines into tea blends. The concept was developed by the company's chairman, who previously worked as a brand-building executive at US designer label Tommy Hilfiger. TWG Tea is already working on its autumn/winter 2010 "collection". It will be available at luxury stores like Harrods in London and Dean and Deluca in the US.

Sweet Leaf Tea, maker of natural and organic beverages, is launching a new line of 16oz. (0.5l) aluminum cans to complement its bottled range. The new ready-to-drink offerings include four classic Sweet Leaf Tea flavors and two new flavors - Lemon Iced Tea and Citrus Green Tea. All six varieties are USDA Certified Organic and the two newest flavors are scheduled to launch in January 2010. The cans have a suggested retail price of $1.29, or 99 cents on promotion.

The CEO of Honest Tea, Seth Goldman, assured attendees of 2009 Net Impact Conference that the company's commitment to produce healthy, organic and less sweet drinks has not changed since Coca-Cola became a majority stakeholder in his company last year. Some clients were put off by this partnership, including New York University, who had banned all Coke-related drinks to protest the company’s human rights record. Goldman pointed out that the deal allowed a healthy product to be made available to more customers.

Looking for new ways to attract customers, a New York restaurant started catering to a new clientele: kids. The Russian Tea Room, a high-end establishment with more than 80 years of history, offers tea and snack menus for children in order to attract visitors that have been neglected during better economic times. The goal is to make the lavish venue less pretentious and more welcoming to the average consumer. The city's fine dining establishments suffered a nearly 5% decline, with 30 closing in the past year.

A large scale study in Japan reveals that green tea can relieve stress from overworking. The study was carried out on over forty thousand individuals and found that green tea was beneficial for those who suffered from psychological stress. Those who drank five cups of green tea per day showed considerably less psychological distress than those who drank less than a cup a day. These results were calculated after making adjustments for variables such as age, diet, cigarette smoking, alcohol consumption and disease histories.

Research carried out by scientists form University of Texas found green tea may prevent the onset of oral cancer. Subjects with pre-malignant lesions were given green tea extracts, equivalent to eight to ten cups of tea, and were more clinically responsive than those given the placebo. Although at the end of the two-year study period there was no difference in oral cancer development overall between those who took green tea and those who did not, patients who presented with mild to moderate dysplasia had a longer time to develop oral cancer if they took green tea extract.

A UK study suggests that Brazilian mint tea has pain relieving qualities to match those of commercially available analgesics. Research, which was carried out on mice, indicates that when the mint was given at a dose similar to that prescribed by traditional healers, the medicine was as effective at relieving pain as a synthetic aspirin-style drug called Indometacin. Scientists plan to launch clinical trials to find out how effective the mint is as a pain relief for people.

Following similar moves from its competitors, Bigelow Tea is expanding its online presence with a revamped web platform. It features a redesigned website and a blog, which is meant to keep customers up-to-date on company's latest developments. Bigelow Tea is also increasing the use of social networking sites such as Facebook and Twitter, aiming to boost contact points with its customers. Several short "Tea-V" videos on tea preparation and enjoyment will be featured on Youtube.

New Leaf Brands, makers of ready-to-drink iced teas, has announced the completion of a $1.5 million private debt financing. The financing will be used for working capital and inventory to meet New Leaf's existing product demand in 2010 and execute on its plans for expansion. According to the company's CEO, the deal will help meet all existing orders and expand its footprint nationally by growing the distribution network.

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.

Green Mountain Coffee has secured a deal to buy Diedrich Coffee for $290 million or $35 a share. It also agreed to pay an $8.5 million termination fee to Peet's Coffee & Tea, which had agreed to buy Diedrich before Green Mountain stepped in. Diedrich makes single-serving coffee and tea packets, also known K- Cups, used in Green Mountain's Keurig coffee makers. Diedrich is Green Mountain's third significant acquisition in the last nine months, after Tully's Coffee brand and Canada-based Timothy's Coffees of the World.

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.

Steaz and Guayaki products were singled out at this year's BevNet 'Best of 2009' awards. Steaz Zero Calorie Sparkling Green Tea won in the 'Best New Organic Beverage' and 'Best New Carbonated Beverage' categories, whereas Guayaki Lemon Elation claimed the 'Best New Tea' and 'Best Packaging Design' awards. Coconut water was declared product of the year for the strongest track record in terms of evolving into a new category.

Choice Organic Teas is the first tea company to enroll as an official participant in the Non-GMO Project's Verification Program. The Non-GMO Project is a non-profit organization establishing a consistent non-GMO choice for organic and natural products that are produced without genetic engineering or recombinant DNA technologies. The Project verifies all types of products, including those (like tea) that are not yet produced commercially in GMO form.

An Australian study found that regular tea and coffee consumption lowers the risk of developing type II diabetes. In a review of 18 studies including more that 450000 people, scientists noted that drinking three to four cups of tea each day lowered their risk of diabetes by about twenty percent, whereas three to four daily cups of coffee accounted for a 25 percent reduction in the risk of developing the disease. The beneficial effects include better blood sugar regulation and insulin secretion. They are believed to stem not from caffeine, as previously thought, but from other components, such as magnesium, lignans and chlorogenic acids.

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.

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.

Cynthia Fazekas, Adagio's US Sales Manager, shares her thoughts on retail and consumer trends for the holiday season and gives some tips to stay ahead of the game in the tea business.

The current year is drawing to a close with the crucial Christmas season upon us. What are some of the trends you have witnessed this year what impact will these may have for the trade in the future?

Emphasis seems to be on quality but affordable teas, and practically reigns supreme in tea wares. Tea shoppers are buying by price point and are seeking less exotics, more tried and true favorites preferable in smartly priced gift sets. They seem to want good looking items, not too expensive and certainly not frivolous.

Gourmet items that the gift receiver might not otherwise splurge on for themselves are trending. Plus the "good health" aspect of tea shows care and concern.

With the US being in the midst of a severe economic crisis this year, how has the broader economic environment affected the tea industry and, more specifically, the retailers that you deal with on a daily basis?

In the current economic environment, we are seeing that retailers are carrying less stock initially, preferring to order more frequently than to risk sitting on product should the season fall flat. We will likely see more "emergency" and last minute orders.

Also, we've seen promos starting earlier than in previous years, as retailers expect consumers to more carefully ration their holiday budgets and want to capture the potential sale as early as possible.

As shoppers opt for more affordable and pragmatic choices, what are some of the traditional products that tend to do well now and might there be any exotic items that may have been overlooked? And given the current context of "smart" shopping, what are some of practical tips you would give to retailers in terms of tea selection and presentation?

Comfort teas such as English and Irish Breakfast blends and dessert-like flavored teas do well, especially paired with modestly price tea gadgets or brew ware.

Smaller amounts of exotic teas could have more impact, especially novelties like hand tied blooming teas that can be sold "by-the-bloom." A small pack of a single estate high elevation variety is also an option, as something unique and intriguing is sure to attract connoisseur customer attention.

As you note, retailers are more carefully apportioning their stock levels. What are some of the pitfalls to avoid in this approach and how should one ideally manage the process?

Pitfalls to avoid are underestimating customer turnout and product needs. This could result in lost opportunities, as once the customer leaves because you did not have a product they wanted, the odds of them returning when the item is back in stock decrease dramatically.

More frequent orders of small shipment could lead to additional shipping/handling charges that eat a bit more of the bottom line. Overstock issues can easily be handled by January sales events. Plus tea still mostly is a cool weather beverage and sells well all winter!

Economic worries will continue impacting sales for some time and businesses are still adjusting to the current situation as we head into 2010. Which business models and practices may find it the most difficult to survive in this environment and which ones have the ability to counter the trend?

Those that emphasize value and service will likely survive and perhaps even excel. Businesses that have not learned to trim their excess or have taken on too much debt will likely fall victim to the economic trend.

The online platform has a bright future in my opinion. People feel increasingly comfortable shopping online and appreciate the convenience associated with ordering from home or office. Smart and relevant use of vast possibilities that the web offers remains a challenge for many businesses.

Looking at the broader tea industry in the years ahead, what will be the (new) market drivers that will lift the sector and expand its reach once the economic situation improves?

My belief is that market drivers will be those that place the emphasis on the customer, their needs and individuality, while still exposing a jaded consumer to the new, exciting and exotic - all while remaining practical!

In terms of categories, it will be intriguing to see the RTD sector develop, as many multinational companies have taken a keen interest in it and are providing funding and distribution opportunities. It remains to be seen how convenience will shape product quality and taste.

Cynthia has an extensive experience in the US gourmet tea industry, consulting businesses large and small on all issues relating to tea for many years. She is currently managing Adagio's US sales. Her day always starts with a cup of Golden Yunnan tea.

The founder of Sweet Leaf Tea, who started the tea company in 1998, is replaced by the company's current president, a former executive at Nestle Waters North America. Clayton Christofer is stepping down and being replaced by Dan Costello as CEO, who began managing Sweet Leaf's day-to-day operations last year when the unit of Nestle invested $15.6 million in the Austin, Texas-based company (with an option to buy it in the next three years). Christopher will stay on as a member of the Sweet Leaf Tea board of directors. Nestle and private equity firm Catterton Partners are Sweet Leaf's biggest shareholders. Catterton invested $18 million in Sweet Leaf in 2008.

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.

Japanese scientists have found that green tea has the potential to cut the risk of developing depression among elderly people. Tohoku University researchers discovered that 44% of elderly men and women studied were less likely to have depression symptoms if they drank four or more cups of green tea daily. The researchers established the link even after considering such factors as social and economic status, gender, diet, history of medical problems, and the use of antidepressants. There was not a similar effect found with other teas, such as black or oolong tea, or coffee.

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.

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.

McLeod Russel of India, the world's largest tea manufacturer, has acquired a 100% stake in James Finlay's Ugandan tea plantation. Mcleod's subsidiary Borelli Tea Holdings Ltd is picking up the stake for $25 million. The acquired firm is involved in growing, processing and marketing of black tea and owns six tea estates with annual production around 15 million kilograms of black tea. The new acquisition will help McLeod Russel expand its yearly capacity to 96 million kilograms.

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.

Drinking green tea may offer some protection against lung cancer, according to Taiwanese scientists. In as study of more than 500 people, they discovered that among smokers, those who did not drink green tea at all were more than 12 times as likely to develop lung cancer than those who drank at least a cup a day. Researchers also analyzed the DNA of people in the study and found certain genes appeared to play a role in the risk reduction.

A Chinese review of studies found that tea may help prevent endometrial cancer. The researchers noted that an increase in tea consumption of two cups per day was associated with a 25% reduced risk of developing the disease. The association was significant for green tea, but not for black tea. Endometrial cancer - which forms in the lining of the uterus - is the fourth most common cancer in American women. The National Cancer Institute says there are 42,000 new cases in the United States each year, and nearly 7,800 deaths.

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.

Starbucks Corporation announced that it will enter the ready-to-drink coffee category in Europe. The coffee giant has signed an agreement with Arla Foods, one of the largest dairy companies in the world, for the manufacture, distribution and marketing of Starbucks-branded premium RTD coffee beverages in Europe. The market is worth approximately $550 million (€368 million). The company hopes to extend the "Starbucks experience" to consumers beyond its retail stores, while broadening global distribution channels.

Newby Teas, a UK-based premium tea company, plans a further expansion in India's premium tea market. The manufacturer is looking to strengthen its position in the HoReCa sector and aims to enter the retail market thereafter. Newby plans to establish its presence more than twenty Indian cities in the first three years of operations, with Kolkata serving as a base for distribution and logistics. The company is known for its novel methods of tea preservation and quality control during the entire supply process.

Kehe Food Distributors, the leading distributor of natural and specialty food products in the US, has agreed the purchase its main rival, Tree of Life North America, from Netherlands-based Royal Wessanen for $190 million. The deal will allow Royal Wessanen to reduce its debt and focus on its European business, and will consolidate distribution opportunities for food and beverage companies aiming at the US natural foods channel. The consolidation of Tree of Life into Kehe will also extend Kehe's presence in neighboring Canada.

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.

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.

According to a new study by London's Imperial College, drinking at least five cups of coffee or tea every day could help prevent brain tumors. Scientists, analyzing over 300 cases of glioma brain tumor in men and women, found that people who consumed five or more cups of coffee or tea a day had a 40% smaller chance of developing the cancer. Men benefited more from the protective effects of caffeine, although the exact cause of that could not be pinpointed. Decaffeinated tea or coffee was not associated with the same benefits.

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.

Latest research shows that men who drink at least two cups of tea per day have slimmer waistlines than those who drink coffee or nothing at all. The study, which examined links between tea and coffee consumption and obesity among 3,823 adults in the US, also noted that men who use sugar in their tea have smaller waistlines compared to men who use artificial sweeteners. The benefits of drinking tea did were not found among women. However, the exact connection between tea and a thinner waistline isn't exactly understood.

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New Leaf Tea expands into Arizona

According to a press release, New Leaf Brands, Inc. will soon be available across Arizona. The company, which manufactures flavored ready-to-drink iced teas, has reached a distribution deal with Crescent Crown Distributing. Crescent Crown sells and delivers over 26 million cases annually throughout their distribution territories in Arizona and Louisiana. Additionally, Quick Trip Convenience Stores will stock New Leaf Teas in all of its 70 Phoenix Metro convenience stores.

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.

EcoTeas, a small organic tea company from Ashland, Oregon, has achieved Fair Trade certification for its entire range. Known for its unsmoked yerba mate products, the company now boasts an accreditation for its entire operations, including rights of workers, environmental management and trade relationships. EcoTeas also uses only organic ingredients, participates in reforestation efforts in Argentina and is on its way to 100% biodegradable / recyclable packaging.

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.

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.

Bigelow Tea Company has enlisted the services of Wayne Gretzky to become the company's spokesperson in the US and Canada. Gretzky, who won 4 NHL championships and multiple other awards, is regarded as the best player in the history of the NHL. According to the company, Gretzky was chosen for the embodiment of sports excellence and wholesome vitality, as a perfect fit with the Bigelow Green Tea "story".

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.

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.

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.

Whole Foods Market reported quarterly profits 71% higher from a year ago and boosted its financial targets for 2010. Sales rose 7% to $2.6 billion and net income for the fiscal first quarter was $55.1 million, compared to $32.3 million for the same period last year. The surprising numbers are a result of managing expenses and pushing effective promotions. Identical-store sales, a key barometer of grocer health, rose 2.5% for the quarter. Whole Foods now forecasts annual sales growth of around 10%. 16 new stores are expected to open their doors in 2010.

Latest research has confirmed that green tea may protect against glaucoma and other eye diseases. Scientists have found that green tea catechins, known for their antioxidant properties, penetrate into tissues of the eye and are absorbed by the lens, retina, and other tissues. In a study on rats, it was shown beyond a doubt that eye structures absorbed significant amounts of individual catechins and that the effects in reducing harmful oxidative stress in the eye lasted for up to 20 hours.

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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.

Tetley, the world's second biggest tea company, has announced plans to source all of its branded tea from Rainforest Alliance certified farms by 2016. The company, owned by Tata Beverage Group, will start supplying sustainable teas in the UK foodservice sector by this April and in Canada by early 2011. The project will be rolled out to the US, Australia and mainland Europe in 2012. Tetley sells black, green, red, flavored and decaffeinated teas, and has a presence in 70 countries. The majority of Tetley tea comes from Kenya, Malawi and North India.

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.

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.

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.

New Leaf Brands, the manufacturer of sweetened ready-to-drink iced teas, has announced three new deals with Anheuser-Busch distributors in North Carolina. RH Barringer, City Beverage Company, and Harris Incorporated of Henderson, all distributors of alcoholic beverages and soft drinks, have begun distributing New Leaf Tea in their respective regions in North Carolina. New Leaf Tea comes in 14 unique flavors and is available in over 8,000 outlets including restaurants, delis, health food stores and other retail establishments.

Sweet Leaf Tea, a manufacturer of organic iced teas from Austin, TX, is launching three new extensions of its ready-to-drink line. Lemon Iced Tea is a mix of black tea and lemons, Citrus Green Tea offers a mix of green tea and citrus flavors of orange, lemon, and lime, whereas Diet Citrus Green contains the same ingredients with less calories. The three new flavors are available in 16oz. (500ml) cans or glass bottles, 20oz. (600ml) plastic bottles or 64oz. (2l) multi-serve plastic containers.

A study, conducted by researchers at the University of Washington, has revealed that consumption of black or green tea on a daily basis reduces the risk of ovarian cancer. It analyzed the lifestyle of around 2000 women in different professions. One daily cup of green tea was shown to reduce the risk of suffering from ovarian cancer by 54 percent. Antioxidants found in tea are thought to be responsible for stalling cancer cell growth by substantially reducing the production of numerous proteins that are believed to promote the cells’ survival. Ovarian cancer is the fifth most common cancer among women and fourth leading cause of deaths in women due to cancers.

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.

Starbucks has announced the launch of nine ready-to-drink bottled tea beverages aimed at the huge Chinese tea drinks market. The products include three original-leaf Chinese-style tea drinks, four original-leaf foreign tea drinks, and two handmade special tea drinks. Apart from the beverages, Starbucks has also launched related accessory products such as tea cups and teapots. The launch of tea drinks is in response to the demands of local consumers, according to the company. China is the world's biggest tea market, with around 200 million regular tea drinkers.

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.

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.

Tazo Tea, owned by Starbucks, is expanding its bottled tea line with a new range of naturally sweetened zero calorie teas. The Zero Calorie Naturally Sweetened iced teas come in three varieties: Zen (lemongrass and spearmint), Passion (hibiscus flowers and exotic fruits) and Refresh (peppermint and spearmint). They are sweetened using stevia leaves, whose extracts have up to 300 times the sweetness of sugar. The range will be available in Whole Foods and other natural food markets in the US beginning in April 2010.

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.

A conversation about the beginnings of a grass-roots company with an unique ethos, the growing popularity of yerba mate and why it may be the next big thing.

Yerba mate is quite an obscure concept for the average consumer, yet is continuously gaining in popularity. What are some of the features of yerba mate and how does it differ from the usual varieties of tea?

Botanically speaking, yerba mate is not related to Camellia sinensis (Asian tea) at all. A member of the holly family, yerba mate is known to botanists as Ilex paraguariensis. It grows as a small understory tree in the subtropical forests of eastern Paraguay, northern Argentina, and southern Brazil.

Yerba mate has a rich history of use by the indigenous Guarani people of the region. The Guarani first developed the method of pouring hot water over dried yerba mate leaves in a hollow gourd and sipping the infusion through a filter-tipped bamboo straw called a bombilla (bom-bee-ya). European colonists learned to drink mate from the Guarani in the 16th century. For millions of South Americans, sharing yerba mate with a bombilla 'traditional-style' has come to symbolize hospitality, friendship, and cultural identity.

Although yerba mate is technically an herbal tea or tisane, it does contain caffeine. The level of caffeine varies greatly depending on the method of preparation. A brewed cup of yerba mate contains slightly less caffeine than a typical cup of black tea. However, these levels increase dramatically when yerba mate is prepared 'traditional-style' with a bombilla.

It's important to note that yerba mate contains a medley of the three forms of caffeine found in coffee, green tea, and chocolate (caffeine, theophyllene, and theobromine, respectively). In addition, yerba mate supplies abundant B vitamins and minerals. Many people find the stimulation from mate less edgy and more physical than coffee or tea. Partly due to its appetite-suppressant qualities, yerba mate is often touted as a weight-loss aid.

Yerba mate is a rich source of antioxidants. The ORAC value of a cup of EcoTeas mate is 60% higher than an average cup of green tea.

The taste of yerba mate has been described as bitter or smoky. Some people find it objectionable, especially at first. However, brewing mate requires a bit of skill. To brew good mate, avoid using boiling water (170F / 75C is perfect), moisten the herb with cool water first, and steep for no longer than five minutes. When these instructions are followed, mate tastes great. The flavor is like green tea with gumption. Also, EcoTeas yerba mate is dried with warm air instead of the usual smoke, and this imparts a cleaner unsmoked flavor that many people prefer at first taste.

EcoTeas is a grassroots company on a niche market. How did you get into this business and what were some of the key steps in your company's development in recent years?

We started EcoTeas in the kitchen of a small house in Ashland, Oregon back in March of 2000. It was originally Stefan Schachter's idea to found a company to spread the availability of organically grown yerba mate in the US. He had learned about the tea while volunteering in Paraguay as a teenager.

Early on, he enlisted the help of long-time friends Brendan Girard and myself. Brendan was a social worker at the time, and I was a high-school English teacher. We shared a passion for organic gardening and healthy living. We blended teas in our back yard and served mate at regional farmers' markets and music festivals. In June of 2000, we acquired our first wholesale account in a local grocery store. We soon found ourselves traveling up and down the west coast of the U.S. promoting our brand in natural food stores.

The next leap forward came when we formed an exclusive partnership with the Kraus family farm in Misiones, Argentina. Their unique 'unsmoked' yerba mate was simply the best we'd ever tasted. It had a vibrant flavor and a rich, mellow body. The Kraus farm invested in us in the form of two full container loads of yerba mate, which was enough raw material to launch what turned out to be our top-selling product, a one-pound bag of pure leaf yerba.

We had witnessed the success of the loose-tea format in Argentine grocery stores, but even we were taken aback by the incredible success of this product in North America. The US tea market is largely driven by tea bags, but our loose one-pounder now ranks consistently among the top-selling tea products in the natural products industry nationwide. We still encounter skeptics in the industry who don't believe that our loose tea can succeed in their stores, but a brief glance at the numbers usually changes their minds. By streamlining our operation and maintaining focus, we've been able to offer a unique combination of value and quality that really appeals to the natural food shopper.

We've recently been pleased to achieve official recognition for our fair trade business practices. Swiss-based IMO (Institute for Marketecology) visited our farm, audited our books, and granted us their 'Fair for Life' status. We consider this a key achievement as we seek to keep pace with the evolving natural tea market. The USDA organic label has lost some of its luster in recent years, so we knew we needed to provide our customers with additional assurances that our tea is grown in a way that is sustainable and responsible. 'Fair for Life' was a great opportunity to do just that.

As you have pointed out, a major trend in the tea industry is convenience, with tea bags and ready-to-drink beverages dominating the market. Is yerba mate suited for this role and, alternatively, how can the category evolve to satisfy this need?

Actually, yerba mate is an ideal ingredient for the ready-to-drink energy beverage category. It is unique among stimulants for its 'triple-punch' of nutrition, antioxidants, and balanced physical stimulation. In the current functional beverage environment, it's only a matter of time before yerba mate awareness explodes in this country the way it has in South America.

Rather than getting into the complex business of selling bottled teas, we made a conscious decision from the beginning to become active in the supply business. To meet this need, we currently maintain a large quantity of 40-pound bags of our signature pure-leaf, unsmoked yerba mate in a warehouse in California. We also import full container loads of yerba mate of a variety of cuts, ages, and drying/roasting methods and ship directly to manufacturing plants.

Beverage manufacturers choose our yerba mate supply for a host of reasons. Our pure leaf cut is not only potent, it is also very clean and dust-free. Meanwhile, our unsmoked taste is versatile and neutral. We are also 100% certified organic, fair trade, and kosher. We have an active reforestation program creating shade and protecting biodiversity, and of course we give our customers full access to this positive marketing story. At this point we have a decade of experience importing yerba mate from Argentina.

As the category evolves to include the bigger players, we'd love to maintain the association that yerba mate has with organic agriculture, fair trade, and rainforest restoration. Like chocolate and coffee, yerba mate can be grown in so many ways, from small subsistence plots to huge mechanized operations with lots of agricultural chemicals. Unlike those two major commodities, yerba mate has acquired a reputation from the outset in our country as an ecological tea. As awareness of yerba mate continues to expand, we intend to do all we can to keep yerba mate's product integrity intact.

The story behind EcoTeas is very inspiring. What are some of the features that distinguish EcoTeas from other players on the market and how do you foresee the company’s vision developing in the future in terms of business practices, product innovations, marketing and other initiatives?

Thanks for the encouraging words! In the day-to-day grind of running a business, it can be easy to forget all the grace we've received along the way.

As far as what distinguishes EcoTeas, I believe we have a unique combination of common traits. For instance, lots of companies sell organic and fair trade teas. Likewise, many companies focus on providing high-quality loose teas. There are also quite a few tea companies that aim to attract customers through everyday low pricing. Some of these 'EDLP' brands may even state as an explicit point in their marketing plan that they want to be on people's shopping lists the same way that people buy eggs, milk, or bread. However, I don't know of too many other brands that combine all these traits into one product line the way we have. That's what makes us unique.

To elaborate, we would rather see our products in 10 shopping baskets than 100 gift baskets. Have you ever noticed how gift-oriented loose teas often migrate to the dark back corners of cupboards where they slowly go stale until they finally get thrown out when people move? I have no desire to see my own products languishing back there among the bamboo canisters of oolong and macha that sell for $20 an ounce! It's no wonder the market is dominated by tea bags and bottles when the alternatives are so expensive and obscure. We want to bring tea to the masses in a healthy, sustainable, affordable way.

Going forward, we want to do more of the same. We want to continue to increase the presence of our top-selling one-pounder. It's the kind of product that really ought to be everywhere coffee or tea is sold. We are systematically switching to compostable packaging for our entire product line. We are also excited to continue to supply the rest of the tea industry with yerba mate for all their tea bag and bottled beverage needs.

Sustainable practices are very important to EcoTeas. How do such initiatives tangibly contribute to improve the conditions of plantation workers and the environment?

This is a great question. I think about it a lot, actually. If fair trade certification doesn't produce tangible results for the workers and the environment, it's just a hollow logo affixed to the front of package labels. We're glad to finally achieve the certification, but we can't be complacent now that we have it.

First of all, the fair trade model provides farmers not only with a better price, but also a guaranteed price. Before they even start planting, farmers know exactly what they will be paid for their goods. Farmers working outside the fair trade model must often contend with fluctuating prices on the world market. This makes it very difficult to run a successful operation, pay employees, invest in the future, etc. With stabilized pricing, our farmers can turn their attention to growing the best yerba mate in the world.

We also provide our farmers with technical assistance for certifications and logistics. We have helped them acquire more land and expand their organic certification to this land. With our assistance they built a new warehouse to age their tea. Our farmers themselves have contributed to the construction of a local school and health clinic for their workers. Rather than treating our farmers like mere producers of an ingredient, we see the relationship as a long-term, mutually-beneficial collaboration. As they thrive, so do we.

A new innovation that arose through the certification process was the development of a special fair trade fund. A portion of the sale of each kilo of tea we purchase from our farmers goes directly into a special fund for the workers. The workers actually get to vote on how this fund will be used. For my part, I'm super curious to see how this fund bears fruit in the coming years!

The final piece of our fair trade puzzle is our reforestation program. We plant thousands of diverse native trees on our partner farm each year. These trees provide shade, protect soil, enhance biodiversity, and generate additional income through fruit and timber. We've experienced a steep learning curve about what, when, where, and how to plant, but we've had some great assistance from universities and NGO's along the way.

When you consider it from a broad perspective, fair trade is more than simply a cost of doing business in the natural marketplace. It's an investment in a superior product from an assured long-term source.

And from your company's perspective, how has the interest in Fair Trade and Organic products, which usually carry a heftier price tag, been impacted by the economic downturn?

I don't think anyone has really thrived in the recession, but the natural products industry has weathered it better than many other industries. In general, the economic downturn slowed the expansion of natural products into new demographics that have not traditionally enjoyed them. We saw fewer new store openings. Foot traffic in existing stores seemed to slow a bit. Meanwhile, many of our supply customers grew cautious about launching new products. A major supply customer of ours actually went out of business due to their inability to find new sources of venture capital during the height of the crunch.

Fortunately, the recession didn't really hurt us among our core customers. Due to our pricing structure, product format, and explicit brand message, our products generally appeal to the segment of the natural market that is deeply committed to the organic lifestyle. These are not people who are exploring organic foods because they recently read an article about growth hormones in milk, for instance. Our core demographic is younger, more highly motivated, and less affluent to begin with than the new wave of natural shoppers. They hold a deep concern for the health of their bodies and the planet. They likely grew enthusiastic about natural foods while they were still adolescents or in college, and at this point natural foods are an integral component of their identity. The economy would have to get a lot worse for these folks to give up on organics.

Our sales actually stayed steady during the recession. We didn't grow as quickly as we had been growing, but the slow-down gave us a chance to catch our breath, tighten our business model, and get ready for the next big growth spurt.

Looking ahead, how do you see the Yerba Mate market evolving several years from now both domestically and internationally? What trends will drive the market?

I have no doubt that yerba mate is going to continue to expand in popularity in this country and beyond. It has so much going for it, and it appeals to so many different people for different reasons.

Yerba mate has been flying under the radar in the US for decades. It has gained a firm foothold in US college towns, urban centers, and other progressive bastions. In the coming months and years, ready to drink beverages are going to help yerba mate spread beyond this core into the suburbs. I bet we see it showing up as a stand-alone or flagship ingredient in bottled tea flavors from the major conventional brands in the next few years. Also, I foresee big growth in yerba mate powder used as an ingredient in supplements for weight loss and natural energy.

A lot of this initial growth is going to leave our EcoTeas brand behind, but we're excited to help supply the companies that do expand into these niches. And as the ready-to-drink and supplement sectors expand, we'll be there to provide high-quality loose yerba to the recently converted.

Combining his love of healthy living, travel, and organic agriculture, Stefan Schachter founded EcoTeas in the year 2000 in the kitchen of a small house in Ashland, Oregon. EcoTeas' winning formula of great price, superior quality, and unwavering commitment to organic agriculture and fair trade has propelled their one pound bag of yerba mate into the upper echelons of the US natural tea market. Year after year, it consistently ranks among the top-selling organic tea SKUs in the nation.

Inko's, a beverage company focused on ready-to-drink white teas, has launched two new flavors aimed at New York City's Public High School vending machines. Inko’s Blueberry and Inko’s Strawberry White Teas meet the requirements of NYC's Wellness policy, which mandates to improve the quality and nutritional value of foods and beverages that are available to children. Drinks available in schools must not contain any artificial flavors, colors, or sweeteners, and contain a maximum of 25 calories per 8oz. (25ml) serving. For the launch, totally new graphic art, including a new logo, was created to appeal to a younger audience.

Coffeewiz, an e-retailer of single-serve coffee and tea, has added Tavalon gourmet loose teas to its range. The online store, based in Moonachie, NJ., will source a wide range of premium loose varieties to complement its lineup of single-serve products in K-cups, Pods and T-discs. This move comes after the introduction of infuser mugs and teapots, allowing easy brewing of loose leaf tea. Tavalon, a New York City based tea company, will supply varieties such as Earl Grey Reserve, NYC Breakfast, Kama Chai Sutra and Jasmine Dream.

Lipton Ice Tea is scaling back its TV ad campaign in the UK as industry experts question brand's prospects on the market. The TV commercial, featuring global brand ambassador Hugh Jackman, will only be available online, despite running on TV in other countries. According to market specialists, this is due to the fact that Lipton Ice Tea does not make sense culturally in the same way as it does in the US and in other parts of Europe, because tea is consumed hot in the UK. Also, they note that Lipton's consistent marketing support over the past five years has yielded limited impact on the highly competitive UK soft drinks market.

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.

The Coca Cola Company, the world's leading beverage manufacturer, has introduced a tea-flavored version of its Sprite brand to try to tap into the huge Chinese soft drinks market. The drink, called Spritea, contains a carbonated blend of local green tea flavors. The product has undergone a massive consumer testing to define the right amount of sweetness and percentage of bubbles. Ready-to-drink tea consumption in China has increased over 30 percent annually in recent years, with tea and sparkling beverages representing over 20 percent of the entire Chinese beverage sector.

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.

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.

Sweet Leaf Tea, the Austin-based ready-to-drink iced tea manufacturer, has purchased Tradewinds Beverage Co., a competitor from Cincinnati. Tradewinds, founded in 1993, makes teas and juices kettle-brewed in Ohio, and will continue daily operations as normal until the label is integrated into Sweet Leaf marketing. Sweet Leaf hopes the acquisition will expand market reach in the Midwest where Tradewinds has strong distribution channels. Sweet Leaf, founded in 1998, bottles about 10,000 gallons of tea a day and is distributed in every US state.

The company has announced the successful completion of several business and product development milestones, as well as substantial volume growth in 2009. The iced tea maker sold its wholly-owned subsidiary Nutritional Specialties Inc., thereby reducing its debt to $2.7m, compared with $11m in 2008. Case volumes increased by 38% to 401'000, as the distribution network grew to 100 distributors in 35 states. New Leaf has also recently added a new product line of lemonades in three flavors and one half-and-half flavor. These new products complement its range of 14 ready-to-drink iced teas.

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.

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.

Tata Tea, India's largest tea company, and Pepsi Co. are planning a joint venture to make non-carbonated, ready-to-drink beverages. The initiative, aimed at health-conscious consumers, would give a significant boost to Tata's international ambitions and help Pepsi diversify into healthier beverage sectors. This comes as the Indian company is planning to broaden its brand portfolio and expand into new product categories and markets. It is in talks with several players, including Pepsi and Coca-Cola for distribution joint ventures on a global scale.

Cooper Tea has struck a deal with 7-Eleven stores to offer its organic iced tea on beverage fountain machines in many retail points across the US. The organic iced tea was developed by international tea master Barry W. Cooper and the Cooper Tea Co. The tea concentrate, with no artificial colors or added flavors, has received USDA organic certification earlier this year. It will be available on the Big Gulp fountain machine in nearly 70% of 7-Eleven stores that have previously carried its conventional variety.

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.

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.

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.

Hydro One Beverages, manufacturer of premium functional drinks, has unveiled an new category of green tea beverages. Hydro One TRUE Green Teas will be available in three flavors: Naturally Sweetened Green Tea, Sugar Free Green Tea and Sugar Free Organic Green Tea. The products are scientifically formulated with natural plant sterols, scientifically proven to help lower your cholesterol. Hence, the beverage line has achieved the Heart Choice Certification. The products will be available online and in The Fresh Market and other gourmet health stores across the US.

Sweet Leaf Tea, a producer of organic ready-to-drink iced teas, is participating in an initiative to support the entrepreneurs of tomorrow. Lemonade Day, taking place on May 2nd in several US cities, is an event dedicated to teaching children the basics of building a business by having them create their own lemonade stand and unique lemonade flavors. The company, that started from scratch in Austin, Texas more than a decade ago, is playing an active role in this year's festivities and will be sponsoring several smaller fundraisers and contests in addition to the main event.

A research paper suggests that drinking green tea increases dental health. Researchers found that people aged 40 to 64 who drank one cup of green tea a day were less likely to lose teeth. They found that men who drank at least one cup of tea a day were 19% less likely to have fewer than 20 teeth than those who did not drink green tea. Tea drinking women had 13% lower odds. Scientists suspect that antimicrobial molecules called catechins present in green tea and, in lesser amounts in other tea varieties, kill mouth bacteria associated with tooth decay and gum disease.

Lipton is redesigning its pyramid tea bag range to give it a more premium and upscale feel on the US market. Moxie TM, an international brand design and development firm, has created new visuals with vibrant colors, real photography, and flavor imagery to help fulfill the tea’s promise of indulgence, excitement and affordability. Lipton is thereby trying to position its products in the gourmet category tea and capitalize on the growing awareness about the health benefits of tea drinking. According to a market research firm, US tea sales will double from $7.4 billion in 2007 to $15 billion by 2012.

Coca-Cola is focusing on strongly expanding the availability of Honest Tea throughout the US. The soft drinks giant, that purchased a 40% stake in Honest Tea in 2008, says the majority of franchise distributors have committed to the expansion, including retail giant Wal-Mart. Coca-Cola has also helped finance a $1 million tea brewer at one of its bottling plants to process Honest Tea, which steeps tea leaves in hot water rather than mixing a manufactured powder. Honest Tea sold about 5 million cases last year, for revenue of $47 million.

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.

Tata Tea has chosen a new company name, Tata Global Beverages Ltd., to better reflect its diversified portfolio and global ambitions. The Indian company, worth $1.07 billion, has branched out into products like coffee, energy drinks and mineral water. Tata Tea, which has a presence in 60 countries, had acquired several global companies in the past years such as Eight O'Clock Coffee and Tetley, expanding is business from a pure tea and related plantation company to a beverages major across the spectrum. It will remain part of the Tata Group, with 357'000 employees worldwide and total revenue of $70.8 billion.

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.

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.

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.

Eric Schnell, co-founder and president of the Healthy Beverage Company and creator of the Steaz brand, has exited the company. During his eight year stay, he is credited with creating the company's tea-based product innovations including the first organic soft drink in 2002, first organic energy drink in 2007 and first complete line of organic and fair trade certified canned iced tea products in 2008. Schnell's departure comes amidst ownership and management changes at Steaz, including majority ownership shifting to Switzerland-based private equity group Inventages. Schnell will retain a significant equity position in the company.

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 insider’s 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 Vienna’s 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 year’s 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 doesn’t 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.

Scientists from Chinese Academy of Sciences have found a way to use tea to inhibit nicotine addiction. They identified theanine, an amino acid commonly found in tea, as an active ingredient to help reduce addiction to cigarettes with better efficacy and fewer side effects. The study, carried on over 100 male smokers, found that the participants' average daily cigarette consumption decreased by about 50% after using filters containing theanine for one month, with additional drops in consumption after prolonged use. Toxicological studies also showed that the tea filters could significantly reduce the intake of carcinogenic materials such as tar and free radicals generated by cigarette smoking.

McLeod Russel India Ltd., the world's biggest tea grower, plans to use rising prices to build a 'war chest' of as much as $250 million to acquire companies. After buying plantations in Uganda, Vietnam and Rwanda, the company is looking to buy more companies in India and Africa as it targets a 50% increase in production to 150 million kilograms in three to four years. McLeod Russel expects India’s demand for tea to rise 3.5 percent annually, outpacing the estimated 1.5% increase in production this year. Prices in North India, which accounts for 70% of the nation’s output, may rise as much as 15 percent as demand for the beverage grows and costs increase.

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.

The Healthy Beverage Company, the manufacturer of Steaz iced tea brand, has redesigned the packaging of its Steaz Sparkling Green Tea line. The goal of the new look, created by Wallace Church branding firm, was to create a design that expressed the very essence of the brand: vitality, energy and passion. The central element of the new design is a lotus flower constructed of repeating tea leaves, an icon that radiates energy and vitality while embodying the brand's holistic sensibility. Adding to the impact of the brand on shelf is the color of each label, which mirrors the color of the teas themselves.

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%.

In a move that is likely to have a huge impact on the tea industry, Nestlé has announced plans to sell a line of premium tea and tea brewing machines. Nestlé, the world's largest food company, plans to sell 25 'Special.T' tea varieties and a Nespresso-style tea making machine in France from September. Tea machines will cost €89 ($110) and tea pods will cost €0.35. 'Special.T' line will be available in green, black, red and blue varieties, as well as Earl Grey lime and blueberry muffin flavors. The machines will be able to "read" each capsule and brew the tea at different temperatures and speeds, depending on the variety. The western European tea market is worth €4 billion, whereas the coffee market is estimated at almost €13bn, according to Nestlé.

Sweet Leaf Tea Co., a manufacturer of flavored iced teas, has increased the amount it received in its latest round of funding from $14 million to $19 million. According to the latest filing with the US Securities and Exchange Commission, the company received $19 million from 17 investors, with Nestlé Waters North America investing $15.6m last year. Sweet Leaf, founded in 1998, bottles about 10'000 gallons (38'000 liters) of tea a day and is distributed in every state in the US. It employs about 36 workers.

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.

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.

After rebranding its tea subsidiary to Tata Global Beverages, the company has now unveiled three brands which will lead its global branding initiative. Tetley, Good Earth and Himalayan will be taken to developed markets such as the US, Canada and Europe, and the emerging ones of Africa and the CIS countries. The move is seen as a clear indication that tea, coffee and water are to become Tata's core segments. Company's flagship Tata Tea marque, as well as Eight O'Clock brand will continue to be managed on a regional level for the time being, with the possibility to roll them out globally later on.

The Healthy Beverage Company, owner of Steaz ready-to-drink tea brand, has reported a 38% increase in sales for the first quarter of this year compared to the same period in 2009. The company also announced the appointment of Jim DePietro, a former executive from Unilever and Pepsi Lipton Partnership, as CEO and Steven Kessler as President. According to DePietro, Steaz's growth is a result of increased consumer demand for the brand, distribution gains into strategic grocery accounts and successful targeted direct-store-delivery expansion in Southern California. The company has also received a further cash injection from its current investment group led by Switzerland-based Inventages Venture Capital.

Green tea extracts may be instrumental in reducing cancer cells in the blood of patients with a form of leukemia and may slow the progression of the disease. According to findings from Mayo Clinic in the US, two thirds of patients in the early stages of the most common form of leukemia showed a significant reduction in the number of leukemia cells in their blood. The active ingredient is epigallocatechin galeate (EGCG), an antioxidant found abundantly in green tea and already associated with many beneficial effects. Although these findings will require more research to confirm the results, the lead author of the study believes this non-toxic treatment may be useful for stabilizing this form of leukemia and potentially slowing it down.

Scientists from Australia announced a study that indicates that drinking tea may lead to a reduction of the risk of ovarian cancer. The study looked at food and lifestyle habits of about 2700 women, half of whom had a history of ovarian cancer. Total tea intake emerged as the key factor, as women who drank four or more cups of tea per day were linked with a 30 percent reduction of the risk of ovarian cancer. It is interesting to note that the decrease in risk is associated with all varieties of tea (black, green and herbal) and there was no added benefit from drinking green tea. Although the reasons for the findings remain unclear, scientists suspect that antioxidants in tea are responsible for these effects.

In a breakthrough study, American researchers have figured out how polyphenols contained in green tea and red wine inhibit cancer growth. The experiment, carried out on mice genetically altered to develop a human prostate cancer tumour, shows that green tea compounds EGCG and polyphenol E disrupt a specific cell-signaling pathway that is often responsible for cancer growth. The finding is important because it may lead to the development of drugs that could stop or slow cancer progression, or improve current treatments. Scientists working on the study are convinced that as long as they are taken in moderation, tea and wine may be ranked among the most potent 'health foods'.

Organizers of the World Tea Championships announced winners of the 2010 North American Tea Championship Iced Tea Class competition. The first place winners in 13 different categories, ranging from unflavored to herbal varieties in ready-to-drink and food service sectors, go to: Adagio Teas, Ito En, China Mist Brands, New Leaf Brands, The Republic of Tea, Rishi Tea, S&D Coffee, Shangri-La Tea Company, TeaGschwendner and True Brew. The championship, held for the third year in a row, received more than 80 applications from premium tea manufacturers. According to market research, ready-to-drink teas were the fastest-growing category of refreshment beverage in the U.S. last year.

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.

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.

Charleston Tea Plantation, the only tea plantation in the US, has introduced a range of bottled ready-to-drink iced teas. American Classic Tea comes after more than a decade without bottled drinks from the company. Three flavors are available: original(made with cane sugar), sweet with lemon and sweet green tea. The plantation, located in South Carolina, also announced a 15% rise of visitors and plans to offer a greenhouse stop on its trolley ride, where people can see in closer detail how tea grows. Its grounds include 127 acres of tea plants, a working tea factory and a gift shoppe. Charleston Tea Plantation is owned by Bigelow Teas since 2003.

A Dutch study has found that daily tea intake can significantly lower the risk of dying from a heart disease. In one of the largest and longest studies ever, researchers followed more than 37,000 people for 13 years in order to establish the impact of tea and coffee on heart health. It turns out that people who drank three to six cups of tea per day had a 45% lower risk of death from heart disease than people who drank less than one cup of tea a day. The association held up even when other lifestyle factors associated with heart disease, including smoking and exercise level, were taken into account. Scientists believe that antioxidants called flavonoids found in tea and other beverages and "super foods" may explain the protective effect seen in the study.

Whole Foods is removing all kombucha teas from its stores because of concerns over slightly elevated alcohol levels. Data indicates that kombucha, a fermented and sweetened tea, may contain levels of alcohol above 0.5% ABV, which would require a government warning in the US. According to the grocery giant, a couple dozen kombucha suppliers have agreed to voluntarily withdraw the products, available in bottles and on tap, to review these potential labeling issues for a swift resolution. Kombucha is one of the best-selling beverages available at Whole Foods, which has more than 290 stores in the US, Canada and the United Kingdom.

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.

Inc. Magazine and Winning Workplaces, a non-profit organization committed to helping small and mid-sized businesses create high-performance workplaces, have singled out Honest Tea in their 40 Top Small Company Workplaces of 2010. The ready-to-drink tea manufacturer was honored for its telecommuting policies (60% of employees work from home and the rest are allowed to telecommute when the need arises) and for its health and wellness programs, which provide employees with wellness intranet, alternative transportation subsidies, healthy snack packs and wellness coaches. The finalists were judged based on specific metrics and qualitative assessments of their success in creating the kind of workplaces that engage employees and deliver successful results.

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.

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.

After several years in the pipeline, Honest Tea is launching the first ready-to-drink organic bottled tea naturally sweetened with organic stevia. Passion Fruit Green Tea with Maqui Berry combines sweet and tart notes of passion fruit with maqui berry, the South American superfruit. It is the first zero calorie tea naturally sweetened with organic stevia extract,a leafy plant native to South America that is sweeter than sugar, but does not contain any calories. According to the company's CEO, the drink took a while to develop, because the ingredient was not allowed as an ingredient in beverages and it was hard to formulate a drink with the right taste and function. The 16.9oz (500ml) bottle will retail for $1.79.

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.

A brief analysis of the US ready-to-drink iced tea market, which has been steadily growing thanks to innovative products and visionary leadership.

June is the official iced tea month in the US, with ice-cold jugs having long replaced steaming cuppas. It offers a fitting opportunity to reflect on latest developments in the industry behind this beverage discovered more than a century ago. Making its way from mother’s garden table to sleek supermarket shelves, iced tea has transformed itself from a summer refreshment to a multi-billion dollar industry. Ready-to-drink (RTD) iced tea has also become a promising alternative to other soft drinks of today.

Despite its longevity, the ready-to-drink iced tea market is relatively small and new, buzzing with creative manufacturers and innovative concepts. This is an exciting prospect for the category, because it signifies that the secret (market) formula has not yet been discovered. There are hundreds of brands competing with very diverse product and business ideas, and nothing looks certain as it stands. Granted, there are marques like Lipton, Nestea, Arizona or Snapple that have found a sure footing, but they usually are only extensions of a soft drink conception that has been losing ground for quite a few years now. Indeed, the new face of RTD iced tea is smarter, fresher and greener. It is as much about business practices, sustainability and assessment of market trends, as it is about the drink itself. In many ways it reflects the transformations that have changed the appearance of the broader tea industry.

However, before moving forward, it is essential to establish a distinction between hot and iced tea in order to better grasp the nature of the game. Iced tea is quite different from its hot cousin, not least by its physical attributes. Tea comes in form of leaves that are light, easy to transport and command a higher premium. The leaves necessitate certain tools and time for preparation and enjoyment. In this respect, ready-to-drink iced teas are quite the opposite: they are heavy to transport and supply, have much lower margins (on a per unit or volume basis) and are consumed on the spot or on the go. All of this means that RTDs are much closer to the fast moving consumer goods industry than the gourmet market. This implies a denser distribution network, stiffer competition from all sides (including flavored waters, energy drinks, carbonated soft drinks, sports drinks, etc) and, last but not least, more investment upfront.

Whichever way you look at it, iced tea is more than tea on the rocks, even though growth in this category was as awe-inspiring as the take-off of gourmet tea. According to market research, the US ready-to-drink tea industry was valued at $7 bn in 2007 and is expected to reach $10 bn this year. And the fact that such growth was achieved during a severe global economic downturn should put things into perspective. Furthermore, even though the overall US beverage category declined over 3% in volume in 2009 (having dropped 2.1% the previous year – first time on record) as customers continued to shun packaged beverages, the RTD tea market was the only segment to record a sizeable gain of 1.2%.

So the question on everybody’s mind is how did such a relatively small industry achieve such stellar growth in these difficult times? One of the main reasons is a major social shift towards increasing health awareness. Modern zeitgeist dictates that it is possible to control and influence your wellbeing (both physical and psychological) by what you eat and drink. From this perspective, tea and its wide array of antioxidants and other beneficial compounds appears as an increasingly appealing fix for a crowd in search of nutritional balance in their lives. The fact that the beverage is brewed naturally, as opposed to artificially enriched with additives (as is usually the case for packaged beverages), adds further clout. And then there are literally thousands of scientific studies that have found their way into the mainstream media, confirming tea’s health benefits ranging from reducing risk of heart strokes to improving dental health. Unfortunately, continued reluctance on behalf of the FDA and its European counterpart to acknowledge those findings in some way or form remains a headache for this developing category.

There are other features in sync with the état d’esprit of modern shoppers that iced tea manufacturers have harnessed very successfully. This paradigm includes concepts like organic faming, sustainable business practices and environmental concerns. Iced teas available on the market today score high in those areas. In fact, these factors have become ideal drivers in positioning RTD iced teas as a credible alternative to traditional soft drinks. Most notable steps that the category has taken are to source organic tealeaves, replace sweeteners such as high fructose corn syrup with sugar cane or honey, improve livelihoods of farmers that supply the crops and strive to reduce its environmental impact. As figures show, shoppers appreciate those initiatives and reward such companies with a greater “share of throat”.

As can be expected, these efforts have not gone unnoticed amongst the big players in the beverage industry. Giants like Coca-Cola and Nestlé, as well as private equity firms, have been snapping up promising start-ups in the RTD iced tea category for some time. For example, Coca-Cola invested $43 m in 2008 to acquire a 40% stake in Honest Tea, whereas Nestlé recently agreed to provide $15 m of funding to Sweet Leaf Tea. Although the numbers look ridiculously small next to the revenue generated by these global conglomerates, they are still a clear indication that the tide is shifting in the beverage sector. The sooner you jump on the bandwagon, the smoother the ride. However, it has to be noted that these partnerships rely on more than just funding and the drinks giants are not just making a wild bet at a roulette table. They know perfectly well that success lies in their vast distribution network, established over decades of acquisitions and aggressive marketing techniques. As long as they remain the gatekeepers to this vital aspect of the supply chain, they have the home-court advantage with any new brand they are willing to take aboard.

Nonetheless, the most exciting aspect of the RTD iced tea sector is precisely the fact that there are so many underdogs competing for their share of limelight. Each brand has a unique interpretation of what constitutes the best iced tea and the jury is still out. This can be compared to the birth of the automobile over a century ago, when engineers were experimenting with diesel, petrol, steam, electrical and even hydrogen engines, all of which were coexisting before the winning formula emerged.

The easiest way to analyze this burgeoning category is to divide it into two subgroups: flavored and unflavored. The former encompasses teas mixed with fruit juices or flavored with other sweeteners, whereas the latter refers to pure naturally brewed iced teas. It is no wonder that flavored versions are more abundant, given the predominance of sweet-toothed customers, yet both subgroups address different consumer needs and have the potential to develop into huge markets.

Flavored iced teas are much closer to soft drinks than naturally brewed tea. In that sense they are more familiar to the taste buds of the average consumer and can be considered as beverages that bridge the gap between the traditional soft drinks and natural tea. In this respect they benefit from a lot of flexibility in terms of ingredients and formulas. For example, the leading brand in this subcategory, Honest Tea, boasts a range flavored with dozens of ingredients like berries, superfruits, exotic fruits and natural sweeteners. Similarly, Steaz iced teas are not only flavored with fruit juices and sugar cane, but are also brewed using sparkling water, making them not-too-distant cousins of carbonated soft drinks. Such features are helpful indeed if you are, say, a Dr. Pepper addict trying to adopt a more balanced lifestyle. And in the US there are millions of such sinners trying to redeem themselves from the excesses of high fructose corn syrup, hence the demand.

However, what about those who are actually into tea? Those who would like to experience the same complexity and richness of taste associated with gourmet tea, only in a bottle? That is where the other subgroup comes into play. Instead of accommodating “mass market” needs, these niche companies are providing connoisseur consumers with something that resembles a cup freshly brewed. Naturally, the priorities are quite different here. Quality of the tealeaves and complexity of the infusion are the main factors. Obtaining an accurate balance of aroma, taste notes and refreshment that reflects the properties of each tea variety is paramount. A fine example of this approach is the anTEAdote iced tea by Adagio Teas. The range contains five varieties (black, green, jasmine, oolong and white) of gourmet iced teas designed to highlight the features of each tea type. Tea aficionados can opt for the subtle and delicate flavor of white tea or choose a more complex and floral bouche of oolong tea.

There are opportunities for both subgroups to continue their expansion, as interest for healthy beverages and gourmet tea is still rather nascent across the western world. Nonetheless, the success of the multitude of players in the RTD iced tea arena cannot be attributed to market trends alone. A lot has to do with people behind the brands who infuse them with energy and visionary leadership. Most, if not all, of the companies started by brewing their first batches in basements and sheds across the country, which gives them a unique edge in understanding the amount of effort and experience needed to make things work. It is this empirical approach and the energy and innovation that stem from it that is the main asset against established marques. The spirit behind healthier beverages goes beyond product development and transpires into everything that these companies do: from the way they treat their customers and employees to new business practices that are changing the way companies are run.

It is difficult to predict which concepts will survive and which will have to suffer the consequences of natural selection. There are quite a few challenges that lie ahead for the category, not least the morose economic situation and continued pressure from traditional soft drink industry. In the meantime, those who are able and willing to adapt, react and innovate accordingly will have an edge.

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.

Following a recent removal of raw kombucha from shelves of several grocery chains such as Whole Foods due to elevated levels of alcohol, manufacturers of pasteurized kombucha are expected to cash in. Kombucha Wonder Drink, a company that was amongst the first to launch the category in the US almost a decade ago, is one of the few brands to offer a pasteurized version of the beverage, which ensures that it is consistently safe, stable and under the 0.5 percent alcohol limit set by the US authorities. Kombucha Wonder Drink is now likely to become the one of the fastest growing brands in the $300 million kombucha category as its products remain on shelves nationwide. On a separate note, the US authorities raised the possibility of treating the beverage like an alcoholic drink in terms of regulation and taxes.

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.

People who regularly drink tea are less likely to suffer from memory loss later in life, according to a new study. Researchers from the University of California in Los Angeles have established a link between tea consumption and cognitive function in individuals over 65 years old. Data from over 4800 senior citizens shows that regular tea consumption reduces the likelihood to develop memory problems by 17 to 37 percent. Scientists working on the study point out that the protective effect is unlikely to be linked to caffeine, and suggest that it may be attributed to flavonoids or theanine contained in tea. The research was supported by the Lipton Institute of Tea.

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.

The Tea Spot, a company manufacturing a patent pending compostable tea infuser, has received a US government grant to help bring the product to market. The Small Business Innovation Research grant, awarded by the US Department of Agriculture, aims to stimulate technological innovation in the private sector and help address important scientific problems. The bio-based disposable loose tea infuser, called ecosteep, fits in standard to-go cups and allows tea leaves enough room to fully infuse. The grant will allow the manufacturer to select a fitting renewable and biodegradable material and help determine the life-cycle environmental impact of the infuser.

The Food and Drug Administration has issued stern warnings to two large beverage manufacturers for making unsubstantiated health claims about their green tea drinks. Canada Dry Sparking Green Tea Ginger Ale, owned by Dr. Pepper Snapple Group, and Unilever's Lipton Green Tea drinks were found to make claims that do not follow agency's guidelines. Food processors increasingly have been adding vitamins and nutrients to their products to make them more appealing to health-conscious consumers. However, the FDA considers that the soft drinks, categorized as food snacks, do not meet federal requirements to claim antioxidant or disease-preventing properties. The FDA generally endorses health claims on foods only after government researchers have verified that the products help prevent actual disease.

Scientists have discovered that black tea contains far more fluoride than previously thought. Early studies suggested that black tea had 1 to 5 milligrams of fluoride per liter, but a new study by Medical College of Georgia found that the beverage can hold up to 9 milligrams of fluoride. A couple of daily cups is thought to prevent dental cavities, yet high intake or long term ingestion can lead to bone health problems. According to the study, it is safe to consume 2 to 3 milligrams of fluoride per day (through water, toothpaste and food), whereas ingesting 20 milligrams per day for more than 10 years may lead to serious bone deficiencies.

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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.

Honest Tea is undertaking a novel social experiment to test the honesty of people living in big cities across the US. The guerrilla marketing coup consists of an unmanned pop-up store offering iced tea in return for 1 dollar placed in a glass box, with cameras recording how people behave. The experiment was carried out some of the biggest cities in the US such as New York City, Washington, DC, Boston and Chicago to test the honesty of their respective inhabitants. It turns out that Boston came first in the ranking, with 93% of people paying for their drink, followed by New York and Atlanta at 89%. Chicago fared the worst, attracting only 78% of paying customers. The money collected during this experiment will go to charity.

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.

Campbell Soup Company is expanding its lineup of V8 V-Fusion beverages, which combine fruit and vegetable juices, with new products containing green tea. According to the manufacturer, V8 V-Fusion + Tea provides a combined serving of vegetables and fruit (1/4 cup vegetables and 1/4 cup of fruit) in each 8-oz (250ml) serving, along with antioxidants from natural green tea. The line extension includes 3 flavors: Raspberry Green Tea, Pomegranate Green Tea and Pineapple Mango Green Tea. The drinks will be available in the US from October.

A new report by the US Department of Agriculture has reaffirmed the link between carbonated soft drink consumption and obesity. This puts further pressure on the beverage industry, whose previous strategies have not yielded sufficient results. Furthermore, the USDA report endorses the idea of taxing beverages with high levels of sweeteners that may lead to excess weight. It estimates that a 20% tax on sweetened beverages could result in "savings" of 38 calories per day for the average American, adding up to 3.8lbs (2kg) weight reduction per year. Experts say that even though the reduction in caloric intake from such an initiative would be relatively small, it may lead to a change in consumer behavior with long-term effects on health and medical bills.

Kombucha manufacturer Vibranz is the first company to have its organic fermented tea back on the shelves of Whole Foods. The grocer pulled the probiotic products from its stores over worries they contained too much alcohol. Vibranz has created a new formula that reduces alcohol to fall within the limits of 0.5% alcohol by volume. Prior to last month's recall, kombucha tea was experiencing unprecedented popularity among organic beverage enthusiasts. According to market research, sales of kombucha and other "functional" juices in the US topped $295 million last year, up 25 percent over a two-year period. Vibranz Kombucha Teas retail between $4.69 and $3.89 and are available in eight flavors including Original, Blood Orange and Raspberry.

New Mexico Tea Co., a bulk tea supplier, has turned to its customers to secure a loan through microfinancing. Its co-owner decided to appeal to their customers when his bank turned him down for a line of credit recently. He sent an email to the 3'800 people on his newsletter list with the aim to raise $5'000. To his surprise, he had raised $10'000 within the first 48 hours. The capital was made up of $4'500 in “microloans” and $5'500 in gift cards. The extra funds will allow the company to pay in advance for tea from vendors and to stock more tea, teapots, and other accessories.

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.

East India Company, the world's first multinational company founded more than 400 years ago, has been resurrected as a luxury brand. The company, which lay dormant for more than a century, started selling gourmet tea and other specialty products. The "tea library" at its flagship store in London features more than 100 different types of brew, including green, black, herbal, and flavored teas. The East India Co. began as a trading monopoly under Queen Elizabeth I in 1600 to ship commodities to the West from India and China. It controlled the trade in indigo dye, cotton, silk, opium and tea. The owner has so far invested $20 million in the project and estimates that another $100 million will be needed to increase the number of retail outlets and expand into other areas of trade.

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.

Starbucks, the world's largest coffeehouse chain, has requested a license from the Tea Board of India to import and sell Darjeeling tea. This move indicates that the company may be planning to serve tea from the Darjeeling region, dubbed the Champagne of tea, in its 17'000 outlets across 49 countries. According to local regulations, a Certification of Trade Mark license is necessary for all producers, manufacturers, packagers, blenders, exporters, and traders who wish to sell tea labeled as Darjeeling tea. Starbucks, which bought Tazo Tea for $8.1 million in 1999, subsequently teamed up with McLeod Russel, Apeejay Tea, Warren Tea and Chamong Tee Exports to source other Indian teas for the international market.

Comparing brewed and bottled tea, scientists have discovered that home-made versions have more antioxidants than bottled ones. The experiment found that brewed tea contains between 50 and 150 mg of polyphenols, whereas bottled tea holds anywhere from 81 to 3 mg of polyphenols per 16oz. (500ml) unit. Researchers say that polyphenol content in bottled teas is extremely variable and low due to added sugar and high dilution, in an attempt to keep bitterness and astringency low. Authors of the study warn that polyophenol levels on labels of bottled teas may not be correct because of lack of government regulations for measuring and listing the compounds.

Donald Trump, the famous businessman known for many audacious business ventures, has launched a gourmet tea line bearing his name. Trump Tea stems from a partnership between Talbott Teas, a purveyor of upscale teas, and The Trump Organization. The range, comprised of exclusively formulated whole leaf tea blends, includes four varieties: The Park Avenue, The Union Square, The Mar-a-Lago and The Westchester. The premium tea blends are packaged in a keepsake tins, filled with pyramid sachets of whole leaf tea and organic ingredients. The Trump Tea collection will be available at select retailers starting this fall.

Hall of Fame Beverages, makers of functional and energy drinks, is the latest company to create a ready-to-drink iced tea. Grand Ma Ma's Sweet Southern Tea is based on the character of Grand Ma Ma from Converse shoe commercials, played by former basketball star Larry Johnson. This line of flavored teas is currently in development and will come in sweetened natural flavors. The beverage is produced in Tampa, Florida and will be distributed initially by Elmira Distributing Company of New York, as well as by direct store delivery process. The launch campaign will be supported by Larry Johnson himself.

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.

Honest Tea has reintroduced its kombucha products to store shelves at Whole Foods Market across the US. Following a voluntary withdrawal of all brands of raw kombucha from store shelves in June due to high alcohol content, Honest Tea has developed a proprietary process to brew Honest Kombucha that allows for the benefits of raw, unpasteurized kombucha while ensuring lower, more stable alcohol levels. Honest Kombucha is available in five low sugar varieties: Berry Hibiscus, Lemon Ginger, Peach Mango, Maqui Berry Grapefruit and Apple Jasmine with 35 calories and 7 grams of sugar per serving. Honest Kombucha will be available at Whole Foods Market stores and other natural food stores nationwide the last week in August 2010 at a suggested retail price of $3.49 - $3.99.

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.

Tetley Tea, part of Tata Global Beverages, has unveiled its new packaging design destined for more than 70 countries. The modernized graphics were designed to evoke the warm feelings and stirring actions associated with tea drinking, to further draw consumers in to the Tetley experience at the point of purchase. The packs will retain the signature blue color of the brand. Tetley Tea packaging introduction will begin in Australia and the UK, and will hit US store shelves starting in September. All Tetley branded tea, including flavored and decaffeinated varieties, are planned to be part of the Rainforest Alliance certification program by 2016.

According to South African Rooibos Council, the local rooibos industry registered a landmark growth last year, contributing $70 million to the country's national domestic product. This has made rooibos the only segment of the local tea market that has grown consistently both locally and internationally, with international consumption outstripping local demand. International exports to more than 30 countries reached about 6000 tons last year, which represents a threefold growth since 2000. Top importers of rooibos tea are Germany, the Netherlands, Japan, the UK and the US. About 15000 tons of rooibos are produced each year, of which between 4500 and 5000 tons are sold domestically and the rest is either exported or used for the production of various products for skin care, baby care, herbal tea, lifestyle programs and color cosmetics.

As predicted, the Darjeeling region is suffering heavy output shortfalls due to adverse weather conditions. Production is down 12 percent between January and August of this year and may end up with an annual figure below 8 million kilograms. The shortfall is also attributed to deteriorating productivity of tea bushes, which are 80 years old on average, and a shift towards less yielding organic farming methods. Production of first flush tea, harvested around mid-May, was down 35% and the second flush crop was also lower than expected. The Darjeeling Tea Association predicts 2010 to generate one of the lowest crops in the last 40 years.

The Canadian Coffee & Tea Show, the largest coffee and tea exhibition in the country, is set to take place in Toronto on September 26 and 27. The event, held at the International Centre, will highlight the latest in coffee and tea trends and feature the latest equipment, services and products from leading regional, national and global suppliers. It will include an extensive educational program geared for new entrepreneurs, independents and chain operators. The exhibition will also host the Canadian Barista Championship and the first annual Canadian Cup Taster Championship.

Scientists from the UK and Spain have discovered a compound found in green tea that inhibits the growth of cancer cells. The joint in vitro study confirmed that naturally occurring polyphenol EGCG prevents cancer cells from growing by binding to a specific enzyme, thereby stopping this enzyme from making DNA. According to scientists, this helps explain decreased rates of certain cancers in regular tea drinkers. Concentrations used in the test are equivalent to those found in the blood of people who drink 2 or 3 cups of green tea a day. Researchers hope that this breakthrough will lead to new anti-cancer drugs based on the structure of the EGCG molecule.

Coca-Cola is introducing a new blended tea drink originating from Japan. Sokenbicha, an unsweetened bottled tea with no calories, is aimed at people who are open to alternative health remedies. The drink will be available in 5 varieties, including green tea and a blend of cinnamon and ginger. Besides low-key marketing, there are plans to promote the beverage to chiropractors, acupuncturists and spa operators. It will hit store shelves at Whole Foods from October. Sokenbicha is Coke's largest tea brand in Japan. The idea behind the project stems from a small group inside Coca-Cola charged with finding and marketing niche products.

Guayaki, a yerba mate manufacturer from California, has established a novel supply chain aimed at improving the sustainability and livelihood of its suppliers. The 14-year old company, currently growing at 30% a year, is creating sustainable, fair trade agricultural enterprises in Brazil, Paraguay, and Argentina. With a turnover of $12 million, Guayaki has set its sight on creating 1000 jobs and restoring 200'000 acres of rainforest by 2020. To achieve this ambitious goal, it will have to become ten times bigger than it is today, increasing revenue by 25% annually for the next decade. It has 28 different varieties of dry and liquid products on the market. Guayaki's business model is being featured at this week's Clinton Global Initiative.

India's Tata Global Beverages, owner of Tetley Tea, is attempting to sell a minority stake in the tea company in order to fund an international acquisition spree. The parent company is in talks with several private equity firms, including Advent International and Blackstone, but the transaction is not expected to be completed anytime soon. Tata Global Beverages is a major international player, with large market shares in countries such as Australia, Britain, Poland and the US. It has recently announced plans to acquire companies in eastern Europe and the US which would expand its share of the tea market as well as diversify its portfolio of products.

Adagio Teas, the leading online retailer of gourmet tea, has opened its first retail outlet in Naperville, IL. The flagship retail store provides an ideal environment for introducing new customers to the full range of Adagio's gourmet teas and engaging existing customers in a more personal and sensory-rich setting. The store carries more than 200 tea varieties and many imaginative tea accessories. Adagio's retail operations are headed by Charles Cain, who previously managed the US subsidiary of TeaGschwendner, the world’s largest tea retailer. A second store is currently being finalized in Skokie, IL. with more outlets planned for 2011.

Coffee and tea drinkers may have a decreased likelihood of developing the most common form of malignant brain tumor in adults, a new study suggests. A study of 500'000 adults in Europe linked higher coffee and tea intake to a lower risk of gliomas, a group of brain tumors that makes up about 80 percent of malignant brain cancers in adults. People who consume more than a cup of tea or coffee per day were one-third less likely to be diagnosed with glioma, with factors such as age and smoking history taken into account. However, scientists conceded that the reasons behind these findings remain unknown, because little is understood about what actually causes brain cancer.

Two Leaves and a Bud Co. has overhauled its website to share stories and knowledge acquired through journeys abroad. The online store contains photographs taken during trips to tea gardens, giving shoppers a glimpse of where their tea is produced. The gourmet tea manufacturer from Colorado is also looking to lessen the intimidation factor that comes with tea - a comprehensive knowledge center is aimed to provide educational information on any tea-related topic. Other new site features include a reward points program for frequent cuppers, along with a referral program, integration with Facebook’s "like" button, and a running feed for Twitter, Facebook, tea reviews and the company’s blog.

During the National Breast Cancer Awareness month scientists have highlighted the health benefits of green tea on the metabolism of overweight breast cancer survivors. A recent study from University of Arizona suggests that drinking decaffeinated green tea helps breast cancer survivors improve metabolic biomarkers. Overweight breast cancer survivors who drank decaffeinated green tea reduced their energy intake leading to some weight loss and improved their good cholesterol levels. Each year 175'000 women are diagnosed with breast cancer in the US and 50'000 die from the disease. Authors of the study note that being overweight after breast cancer treatment may increase a woman's risk for recurrent disease and early onset cardiovascular disease.

Researchers at the University of Western Australia have found that drinking three cups of tea a day can protect against heart attacks and strokes. Their wide-ranging study, which did not find any difference between green and black varieties, suggests that regular tea consumption can reduce the risk of cardiac problems by 11 percent. Flavonoids, a type of antioxidant, are thought to cut the formation of plaque - a combination of fat an cholesterol - in the arteries. Two cups of tea are equivalent to five portions of vegetables in terms of antioxidant delivery.

Stash Tea, a manufacturer of gourmet teas, released seven new tea blends featuring a rare herbal tea called Guayusa. The naturally caffeinated herbal tea stems from the Amazon rainforest of Ecuador where it has been consumed for more than 2000 years. It has a rich and earthy aroma with a sweet finish. According to the company, Guayusa is naturally caffeinated and has an energizing effect similar to coffee or Yerba Mate, but provides a slow release of caffeine for alertness and energy, without the jitters or sudden caffeine crash. The lineup includes blends with green, black, rooibos and several other tea varieties.

PG Tips, owned by Anglo-Dutch conglomerate Unilever, has announced that its loose leaf and tea bag ranges sold in the UK are fully certified by the Rainforest Alliance. This certification ensures that crops are grown using sustainable farming methods by workers who earn a decent living and have good working conditions. According to PG Tips, the company has improved standards of living for 75'000 workers by providing free housing, medical care and schools. Furthermore, the company has planted over 870'000 trees since 2000 and uses energy from renewable sources.

India's tea regions continue to suffer from fluctuating weather conditions and experts now predict this year's production to come in 70 to 80 million kilograms lower than last year. A crop of 108 million kgs in September had given hope to growers in Assam and Bengal regions of India, which account for the majority of country's tea production. However, October dampened those expectations due to erratic weather conditions and the festive season that had impacted plucking. The shortage is expected to keep tea prices high for the upcoming months. India has suffered from unfavorable weather and pest attacks during first and second flush periods earlier this year.

Researchers linked regular coffee and tea intake to a steep reduction in glioma, a type of brain tumor. A study of 410'000 European citizens during a period of eight and a half years found that drinking about a half cup or more of coffee or tea per day was associated with a 34% reduction in risk of suffering from glioma. The research was not designed to establish a causal effect, but a potential connection was observed from questionnaires about coffee and tea intake. Male drinkers benefited from a greater reduction than women. Tea consumption was highest in the UK and lowest in Spain. Scientists believe that antioxidants found in tea may explain the protective effect.

Honest Tea announced its commitment to have the entire range of bottled teas Fair Trade certified by 2011. Over the past three years, Honest Tea expanded its Fair Trade offerings from seven to 19 varieties and with this new initiative, all 28 of its teas will become Fair Trade certified by early 2011. A Fair Trade seal requires tea gardens to comply with workplace standards and to ensure safety, equality and fairness for all workers. This month Honest Tea is also publishing its first annual mission report that details its social and environmental initiatives related to its products, packaging, employees and partners.

Cooper Tea has announced the launch of B.W. Cooper's Iced Brew Tea in 4oz. / 120ml mini-bottles. The tea concentrate is made from real brewed tea leaves and contains no artificial flavors or colors. It is also environmentally-friendly, with significantly less packaging than eight single-serve 16 ounce bottles of tea. Each pocket-sized mini-bottle makes 4 quarts (3.8l) of tea. Initially, the product can be found in select Sheetz convenience stores across the US. The retail price is set at $1.99.

A large study from Japan has found no significant link between green tea consumption and reduced risk of breast cancer. Nearly 54'000 women were questioned about their green tea intake and researchers found no difference in breast cancer rates between women who consumed the most green tea and women who drank the least. The findings call into question in vitro and animal-based studies that have suggested that green tea may have beneficial protective effects against the disease. Animal studies have suggested that the polyphenols and antioxidants found in green tea may be protective against cancer, including breast cancer. Breast cancer remains one of the most common cancers among American women.

Teavana, a specialty tea retailer with over 150 stores in the US, has unveiled a new collection of teas and blends for the upcoming year. The current range of more than 100 varieties will benefit from 2 new flavored white teas, 6 new green teas, 5 oolongs and many black varieties. Herbal category will be expanded with several yerba mate and rooibos blends. In conjunction with the tea launch, Teavana is adding new gift collections, teapots, and other accessories in time for the upcoming holiday season.

The biannual SIAL expo in Paris is one of the biggest of its kind in Europe. This year, it featured a tea pavilion filled with many international companies looking to penetrate into the European market, as well as a few players with a home court advantage. There was a lot of interest generated by premium tea purveyors showcasing exciting brands and products. Find out some of the highlights of the show, what buyers were looking for and catch up on some of the trends that are making an impact in Europe!

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A rendez-vous with tea in Paris

Every two years the food industry gathers in Paris for the SIAL food expo, one of the biggest of its kind in Europe. This year was no different, with thousands of professionals attending the event, despite major strikes that had partially paralyzed France and its transport system.

Tea companies had a dedicated tea pavilion in the gourmet food hall, underscoring the growing importance of the sector within the fine food industry. Although traffic during the five-day event was not stellar, the ‘quality’ of attendees was impressive nonetheless – many of the top supermarket buyers (Auchan, Carrefour, Casino) and key distributors showed up to scour the stands for ideas and trends, as did thousands of independent retailers.

Scattered among several suppliers of bottom-of-the-barrel leaves were many exciting brands from France (Palais des Thés, Thés Georges Cannon, Kusmi Tea), the US (Adagio Teas, Boston Tea Company, Harvey & Sons) and from around the world showcasing inspiring produce. This matched the attitudes of many buyers on the floor (including large chain buyers usually conservative when it comes to premium tea), who were nothing short of amazed by the appearance of exotic varieties and aromas of surprising blends, and expressed confidence in introducing premium leaves to a larger audience at the expense of prevalent supermarket brands. Indeed, the local market seems to be following in the footsteps of the US, en route to a refined tea experience. It seems quite paradoxical that a continent so in love with gourmet food has deprived itself of such a wonderful beverage for so long!

Apart from improving quality and variety of teas available, the other major trend was a notable shift in how companies market the product. For decades, if not centuries, tea trade went hand in hand with a deep sense of tradition and heritage, relying on colonial and Asian themes to anchor tea in an ancient, aristocratic setting. Some European companies, Marriage Frères or Taylors of Harrogate to name just a couple, are still attached to this leitmotif today. For them tea remains something old rather than new; serious rather than fun.

It was therefore refreshing to see companies break away from this convention by adopting colorful, modern and ultimately lighthearted themes to cut through the clutter and make tea relevant for modern consumers. One such enterprise was Kusmi Tea, a company more than a century old that seeks to continually infuse its products with a touch of sophistication and modernity, without being weighed down by its considerable heritage. Its sister brand of organic tea Løv (‘leaf’ in Norwegian), launched at the expo, was even more disruptive, showcasing a minimalist, eco-friendly and no-fuss interpretation of tea. It seems even in France, attached to its traditional ways of life, slowly but surely, tea is beginning to get rid of its old complexion with its sights on the future ahead.

Adagio's products were also in the spotlight, particularly the Anteadote ready-to-drink iced tea range. Its pure and refreshing taste made a considerable impact on attendees' palates, since this product line remains the only one across Europe that is brewed with real tea leaves and does not contain any added sugar or sweeteners.

Finally, SIAL was a great occasion to meet many customers and colleagues that are dispersed throughout the world. It is often difficult to keep a close link with the tea community on different continents as daily life continues its course, despite the omnipresence of technological tools today. No surprise that this event, during which everyone sacrifices a certain amount of time to rub elbows with its peers and exchange past experiences and future plans, felt more like a friend gathering at times. Next rendez-vous in 2012!

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.

New Leaf Brands, manufacturer of sweetened tea and fruit beverages, has signed an endorsement agreement with football pro Steve Smith. The wide receiver for the New York Giants, who also becomes a New Leaf shareholder, is company's first celebrity endorsement. Smith, a life-long iced tea fan, was introduced to New Leaf at a promotional signing appearance in 2009, where a variety of beverages were being sampled. According to the company, he was chosen for his notable performance on the field and his involvement in many charitable organizations.

Fuze and Gold Peak brands, owned by Coca-Cola, are rolling out two new tea beverages each. Fuze will launch a raspberry flavored tea and an unsweetened version of green tea in December 2010. Gold Peak tea will have tropical and green tea flavors available in early 2011. Both additions, developed over a period of 6 moths, reflect high demand for tropical and raspberry flavors in foodservice, while green tea has seen a significant increase in popularity over the past two years because of its health benefits. According to Coca-Cola, as the fresh-brewed tea market continues to grow, operators are seeking new options to satisfy health-conscious customers with a variety of taste preferences.

According to a report by the Chinese tea industry, China's tea exports will increase by 2% compared to last year. China, the world's largest tea producer, saw foreign trade exceed 300'000 tons in 2009 and its tea planting area has now reached 1.86 million hectares, about half of the world's total. Green tea remains the clear front-runner in terms of export volume with over two-thirds, or 230'000 tons, sold to foreign markets. On the other hand, exports of flower tea and pu erh tea have begun to fall. China surpassed India to become the world's largest tea producer in 2005. Output reached 1.3 million tons last year, accounting for 31 percent of global tea production.

Samovar, a tea retailer with three stores in San Francisco, has introduced containers made entirely from compostable material for its full line of teas. The new packaging uses post-consumer recycled cardboard for its exterior shell, water based inks, and wood-based fiber material. Samovar is the first tea company to introduce a sustainable container that, if composted, would turn to soil within a couple of months. According to owner Jesse Jacobs, the idea was to find a packaging solution that would biodegrade just like the tea leaves, with a vastly smaller carbon footprint than conventional containers.

Harney & Sons, a tea manufacturer from Salisbury, CT, is opening its flagship tea store in Soho, New York City. The tea shop houses over 250 varieties of tea from around the world and features a large tasting bar. Teas are brewed and served by master brewers using water calibrated to the exact degree necessary for each type of tea. The store also offers a range of tea kettles and other accessories. A kitchen menu will be available in the future to compliment the tea selection.

Snapple, owned by Dr. Pepper Snapple Group, faces lawsuits for false and misleading claims about the health benefits of its Acai Mixed Berry Red Tea beverage. Advertising for the product claims it is caffeine-free, with antioxidants and Vitamin C to support a healthy immune system. However, the attorney who filed the lawsuits in California and Florida believes the company did not have scientific studies supporting such claims. The beverage line was discontinued earlier this year due to low sales, but the company continues selling the remaining supplies. Since 2007, there were at least 3 earlier cases where Dr Pepper Snapple Group was sued in relation to health claims made about its Snapple product.

According to the Indian Tea Association, India's share of world tea exports dropped by 2 percent from 15% to 13% between 2005 and 2009. High labor costs, heavy dependence on weather and remoteness of tea estates from ports were identified as the main causes. In the same period, China and Kenya continued to expand their tea exports. China, the world's largest tea producer, saw its share grow from 16 to 19 percent, whereas Kenya's chunk increased form 19 to 22 percent. To counter the trend, India aims to improve the quality of its tea and increase the production of orthodox and organic tea. The major buyers of Indian tea are Iraq and CIS countries (21% each), followed by United Arab Emirates (13%) and the UK (11%). The US and Canada account for 4% of exports.

Cyntha Gold, a tea sommelier from Arlington, MA, has published a book about cooking with tea. The first section of the cookbook focuses on tea itself, with flavor profiles, culinary applications and pairings, and concepts of cooking with tea. Part two features more than 150 recipes. "Culinary Tea: More Than 150 Recipes Steeped in Tradition from Around the World" details a diversity of culinary techniques that are very approachable, using ingredients that would be easy to find. According to the author, the goal of using tea in the kitchen is not to make food taste like tea, but to balance sweetness or richness, add depth of flavor, or layers of complexity.

Adagio Teas is continuing its expansion into the retail market with a second store opening in Skokie, IL. The tea shop, located in the Old Orchard Mall, features a wide variety of gourmet tea varieties and creative tea accessories. The Old Orchard Mall underwent a $50 million in 2007 and is the third largest mall in Illinois. According to the company, the store is designed as a playground for tea, where customers are encouraged to create custom tea blends, brew samples of any tea available, and test tea accessories on the Cupping Table. Adagio's first store opened in Naperville, IL in October. Further locations across the US are planned for 2011.

The Tea Spot has donated over $20'000 in loose leaf tea and tea accessories in November, after pledging to give 10% of every sale as in-kind donation to cancer wellness and community programs. This marks their largest monthly in-kind contribution from the company since starting the initiative a year ago. The Tea Spot, a Boulder-based loose leaf tea and teaware producer, seeks to support cancer survivors and facilitate healthy habits to decrease cancer risks. The company was founded in 2004 by Maria Uspenski, a cancer survivor.

According to reports, Honest Tea is quitting the kombucha market due to ambiguities in the regulatory framework. The company is concerned that the future of this category is uncertain given the continuous scrutiny from the US Trade and Taxation Bureau. Unpasteurized kombucha, a type of fermented tea, has attracted attention this summer due to the discovery of alcohol levels beyond legal limits for products sold as non-alcoholic beverages. Many companies scrambled to find solutions to get the alcohol levels below the 0.5% ABV limit after the drinks were pulled from supermarket shelves nationwide. Honest Tea was sourcing its kombucha beverages from High Country Kombucha, based in Colorado.

Golden Temple, a tea and cereal manufacturer founded by a Sikh community in 1960s, has found itself in a legal battle over the use of the word "Yogi", which stems from the Sikh spiritual leader Yogi Bhajan. After selling its cereal business to Hearthside Food Solutions, Golden Temple has decided to focus exclusively on Yogi Tea brand, which has 50 employees in Oregon and about 100 employees in Europe. However, the widow of Yogi Bhajan is suing Golden Temple over the use of Yogi trademark. The widow considers that as a successor to her husband’s estate, she controls the trademarks used by or connected with her husband, while Golden Temple says that it owns the rights to Yogi trademarks. If she prevails, she plans to license the brand to another tea manufacturer.

Sanctuary T, a tea manufacturer from New York City, is launching a line of portable tea pouches. Dubbed BYOT (bring your own tea), the product consists of a plastic pouch containing disposable unbleached paper teabags filled with whole-leaf loose tea. According to the company, it is a convenient solution to enjoy premium loose tea anywhere. BYOT range is comprised of 10 varieties, including signature Sanctuary T blends and gourmet varieties such as Tiekwanyen and Genmaicha. Each pack holds 10 pouches and retails for $6.99.

According to McLeod Russel, India's largest tea plantation owner, tea prices in India may rise up to 20% in the coming months due to low output and rising demand. Average prices in Assam, which accounts for more than half of production, may reach $4 per kilogram by April from current levels of approximately $3.30. The company attributes the rise to inconsistency in weather or cropping pattern, as well as continuing past attacks. Price rises are set to boost profits of tea growers including McLeod and Jayshree Tea, and raise costs for tea buyers like Unilever or Tata Global Beverages.

A study has found that British workers lose 24 minutes a day preparing and drinking tea and coffee. The survey discovered that four in ten workers make a hot drink for more than one colleague every day. Assuming an average yearly wage of £26'000, this adds up to £400 ($625) a year in lost man hours per employee, so for a company of 35 people, that equals to more than £14,500 lost a year, while for a company of 600 it's £250'000. Scientists say that such rituals are an essential part of coping with sedentary office life in front of a computer. However, researchers of various fields are still debating the effects of caffeine on actual performance at work.

Scientists say that regular consumption of polyphenol-rich drinks can boost astringent sensations and our sensitivity to acids. They have also discovered that varying levels of polyphenols are already stored in the saliva - with huge differences between green tea or red wine drinkers and non drinkers. The study found that regular tea drinkers are more sensitive to astringency in acid solutions, which means that more polyphenol compounds are stored in their saliva. Given that the liquid in the saliva comes from the blood, it indicates that there may be a long-term build-up of polyphenols inside our blood system. This may help explain "the French paradox" - the observation that French people have a relatively low incidence of heart disease, despite their diet rich in saturated fats.

Kenya's tea industry is looking for ways to improve the recognition and value of its products. The main concern is that the vast majority of Kenya's tea is currently exported in bulk - it is then blended with other teas and sold under foreign brands, thereby losing its identity. The industry is suggesting to encourage a more favorable tax environment for packaging equipment and material imports (which are currently taxed by 25%) and to scrap VAT for tea producers. The goal is to attract companies who manufacture tea in packets, tea bags, instant tea and other forms inside the country. As an example, experts cite Sri Lanka, which has earned 76% more from its exports in 2009 despite lower output.

Latest research from Japan suggests that tea may prevent weight gain caused by a diet rich in fats. In a study on mice, regular green or black tea consumption suppressed body weight gain and the build-up of belly fat linked to a fatty diet. Furthermore, scientists found that black tea, the most popular variety in many Western countries, counteracts symptoms associated with the onset of type 2 diabetes, such as increases in cholesterol, high blood glucose and insulin resistance. Rising obesity levels in Western countries have resulted in many more people having insulin resistance. Experts hope that these findings can be confirmed in studies on humans.

Sri Lanka has lodged a local claim for intellectual property protection for Ceylon tea under global Geographical Indicators rules. It is the first step necessary to obtain a Geographical Indicators recognition and protection under World Trade Organisation intellectual property rights rules. Seven of the island's tea growing areas will seek registration. The rules for geographical indicators enable registration of products based on defined growing areas as well as distinct product characteristics. Sri Lanka hopes that this feature can be used for marketing purposes on the international market.

Once Upon a Tea Cup, a tea store in London, Canada, is starting a luxury line of gourmet teas called LovaTea. The range, packaged in sleek steel tins, currently features 26 varieties including many flavored black, herbal and rooibos varieties and is expected to expand to 67. The company is also seeking support from celebrities to promote new varieties of tea in return for proceeds being directed to the charity of their choice. Their first charitable tea is in support of the Breast Cancer Society of Canada. LovaTea is available in select retail outlets in the US and Canada. Retail price for a 50 gram tin is between $6 and $8.

A scientist team from the UK claims that regular green tea consumption could protect the brain against dementia and could also help prevent certain forms of cancer. The study centers around the finding that chemicals created when tea is digested are more effective against triggers of certain diseases than undigested form of the tea. The anti-cancer properties of these digested compounds protect the cells, preventing the toxins from destroying them. Although scientists working on the project admit that many factors influence diseases like dementia and cancer, they recommend to drink at least one cup of green tea per day.

Tea Forte, a gourmet tea manufacturer, is introducing a line of herbal relaxation teas. The caffeine-free range is certified organic and FairTrade, and aims to combat the negative effects of daily stress. The range also benefits from recyclable packaging and biodegradable sachets. Varieties include mixes of rooibos tea and various herbs, fruits and berries. A tin of Herbal Retreat Relaxation Teas has a suggested retail price of $8.95.

Growers in India's Assam region, which accounts for more than half of the country's output, are concerned about the bland taste of their brew. The taste of Assam tea, which is known for its strength and body, and is often used in "breakfast" blends, has weakened over the years, mainly due to climate change. According to local researchers, temperatures in the region have increased by 2 degrees Celsius (3.6 degrees Fahrenheit) in the last 80 years. Climate change has also had an impact on output, with dampness negatively affecting tea growth and encouraging bug attacks. The region produced 564'000 tons of tea in 2007. This figure fell to an estimated 460'000 tons in 2010.

The current issue of Food Technology magazine claims that tea, coffee and low-fat milk surpass sports drinks and enhanced waters when it comes to nutrition and workout recovery. Evidence suggests that physically active individuals who regularly consume tea experience accelerated body-fat reduction and increased endurance and recovery. Scientists also point out that coffee, the primary source of antioxidants in the US diet, is packed with polyphenols and actually has a higher antioxidant content than tea or fruit and vegetable juices. Milk is thought to aid in weight management and weight loss, accelerating the loss of body fat around the waistline.

Sri Lanka Tea Board expects tea production to exceed 320 million kilograms in 2010 - an all-time high. Previous record was achieved in 2008 with 318 million kilograms. Low-grown tea makes up almost two-thirds of the volume, whereas the superior high-grown crop constitutes a quarter of the total output. Revenue generated by tea exports is also expected to reach a new record at approximately $1.5 billion. Major export regions for Sri Lankan tea are Middle East, accounting for half of the volume, and the Russian Federation at 25%. The Tea Board plans to target the US and China markets in 2011.

Arizona Beverage Co., a soft beverage and iced tea manufacturer, is introducing a line of enhanced waters, infused with a proprietary blend of Twinlab vitamins and antioxidants. All products contain Arizona's classic green tea extract as an antioxidant packed base. In addition to this, each flavor has its own function. For example, Berry Blend, that contains L-Theanine and lemon balm extract, claims to help the body deal with daily stress. The Rescue Water range is available in 20.5oz. (0.6l) PET bottles and retails $1.39-$1.89 per bottle.

The Federal Trade Commission has announced that Coca-Cola's deal to purchase Honest Tea would meet antitrust approval. The beverage giant bought a 40% stake in the bottled tea and juice company for $43 million in 2008, with an option to buy the remaining share this year. This allowed Honest Tea to benefit from Coke's nationwide distribution network. According to sources close to the matter, discussions are now under way, although no deal has been reached so far. This deal was the first major acquisition by Coke's Venturing and Emerging Brands unit, which oversees several other similar projects. Seth Goldman, the founder of Honest Tea, is expected to stay at the company after the purchase is completed.

TeaGschwendner, the largest gourmet tea retailer in the world, has decided to ditch its brick and mortar business in the US. The Germany-based company, with 145 outlets in nine countries on four continents, has 4 stores in the US - two in New York City and two in Illinois. The company was hoping to expand its reach by means of franchise stores. However, there appears to be insufficient interest in this business model from American entrepreneurs. Approximately 60 stores were planned to open until 2012. The US arm of TeaGschwendner will now concentrate solely on its online business.

Retraction and Apology: TeaGschwendner not leaving US tea retail market
Adagio Teas apologizes to TeaGschwendner and the tea community at large for recently publishing a story inaccurately indicating that TeaGschwendner is pulling out of the US tea retail market. In fact, it has come to our attention that TeaGschwendner is not pulling out of the US tea retail market and it continues to grow its brick and mortar business in the US.

Kenya’s tea output rose by 27% in 2010, reaching a new record of 399 million kilograms, compared to 314 million kilograms in 2009. Production was mainly boosted by favorable weather conditions and generous rainfall. Kenya's earnings from tea reached $1.21 billion in 2010. According to the local tea board, tea is now the leading export earner in the country. But despite the good numbers, the tea board expects production to fall in 2011 due to unreliable rainfall.

The Healthy Beverage Company, manufacturers of Steaz iced teas, has introduced four new varieties of zero calorie drinks. The Zero Calorie Iced Teaz are made with organic and FairTrade green tea and are sweetened with stevia. The four new flavors are Citrus, Raspberry, Peach Mango and a Half and Half (Green Tea and Lemonade).The new line will be available at Whole Foods Market, Kroger and other stores nationwide beginning in mid-February 2011.

World Tea Expo, the largest and most prominent trade show for the US tea industry, has unveiled many educational and networking opportunities for this year's event. The expo, which takes place June 24 - 26 at the Las Vegas Convention Center, will feature more than 200 exposition booths and host the North American Tea Championship winners' tasting circle. Also, more than 60 conference sessions are scheduled, including hands-on skill building workshops, focused tea tastings, technical education and insightful industry round tables. Adagio Teas will be represented by three of its team members - Cynthia Fazekas will discuss tea blending, Charles Cain will present an advanced seminar on the business of tea and Suzette Hammond will demonstrate proven cupping techniques.

In recognition of February American Heart Month, Tea Forte, a gourmet tea manufacturer, has launched a special collection of teas to highlight the issue of heart disease among women. The company has teamed up with WomenHeart (the National Coalition for Women with Heart Disease) to introduce a heart shaped box filled with antioxidant-rich green teas to combat heart problems. The special boxes come in small and large sizes and retail for $12 and $20 respectively. According to the company, 42 million women are currently living with or at risk for heart disease in the US and 60 percent of younger women, ages 20-39, have one or more of the risk factors for developing heart disease.

A new report by Global Industry Analysts, Inc. predicts that global tea and coffee sales will reach $70 billion by 2015. The key factors driving growth are health, quality and premiumization. The popularity of tea in particular depends on a greater awareness of its health benefits, according to the report. In terms of production, India and China account for more than half of the world's tea output, with a quarter destined for export. Whereas the economic crisis boosted the sales of low priced varieties of green tea, it had no impact on the growth of the iced tea sector, which remains strong in the US and Japan. In fact, the ready-to-drink tea sector grew faster than soft drinks segment in 2008 due to the impact of increasingly health conscious consumers. Despite a smaller market size, tea is expected to overtake coffee in the long run thanks to price, new flavors and a healthy image.

According to Kim Jage, executive vice president of World Tea Expo, the US tea industry is in line for a busy 2011, with several major trends that will likely have a lasting impact on the market. Some of those trends include modern and user-friendly tea accessories, tea lines created by celebrities and the rise of tea-specific outlets. The hottest demographic is expected to be men and millennials, which are beginning to be targeted with specific product lines and marketing strategies. A shift from specialty to a quality-oriented premium tea category is likely to help manufacturers maximize value. Finally, social media is predicted to play an increasingly important role in marketing and interacting with customers.

The managing director of McLeod Russel, one of the largest tea growers in the world, says that ongoing droughts in Kenya will weigh heavily on the country's tea production. After a record year in 2010, the world's largest black tea exporter is expected to shed as much as 12% of its harvest this year. Prices are set to firm up as a result, especially when the political turmoil in Egypt, one of the major buyers, settles. As far as India is concerned, the country is running very low on inventory and will likely see price rises in the region of 5% to 7%. Quality teas are especially scarce and the demand from various export regions will remain strong throughout the year.

One of the first American herbal tea companies, Good Earth Tea, is closing its main production unit in Santa Cruz, CA. The company, founded in 1972, is relocating to New Jersey and laying off 47 employees, according to the plant manager. Good Earth Tea was purchased in 2005 by a subsidiary of Tata Global Beverages, the world's second largest tea manufacturer. At the time of purchase, the buyer was committed to stay, citing the moderate climate of Santa Cruz as an excellent place to blend and pack tea. Six years on, only one employee decided to relocate.

The South African Rooibos Council expects low yields for the country's huge rooibos tea industry in 2011 due to poor rains that may lead to smaller harvests. Oversupply also played a role in the past three years, as export volumes declined dramatically from 7200 tons in 2007 to approximately 6000 tons in 2010. This resulted in a surplus of about 3000 tons last year and prompted farmers to plant less bushes. Despite this, domestic demand has increased by about 5% in 2010 and it is the only tea sector that is growing in South Africa. On a separate note, the council is working on an initiative that would introduce common standards and measures for local farmers to sustainably produce rooibos products, which would be a marketing advantage in foreign markets.

According to the Wall Street Journal, tea is becoming increasingly popular with chefs and bartenders. A big educational push by tea manufacturers and sommeliers has made cooks and customers realize that gourmet tea can be used outside the cup as an ingredient in dishes and drinks. There are now many restaurants and bars across the US that are successfully experimenting with gourmet tea. For example, genmaicha, a Japanese green tea, can be ground with a pinch of salt to create a seasoning for grilled vegetables or meat. Another of Japan's most popular green teas, Sencha, is used by a New York bartender as a base for an alcohol-infused tea punch.

The Darjeeling region of India is currently experiencing a political stalemate that may severely disrupt its production of first flush tea. A political party seeking a separate Darjeeling state has introduced a plucking ban as a sign of protest. It is an attempt to drain local government's coffers, which rely heavily on foreign trade of Darjeeling tea. First flush teas, highly prized in export markets, attract highest prices for their lighter liquor and muscatel flavor. Almost 70% of Darjeeling's output is destined for export and the first flush represents a sizable portion of annual income. Darjeeling is home to 85 gardens spread over 18,000 hectares, with an annual production of around 7 million kilograms.

Coca-Cola has finally bought out Honest Tea for an undisclosed amount, after having acquired a 40% stake in the organic beverage company in 2008. The move is seen as an opportunity for Coke to expand its presence in the ready-to-drink tea market, where it lags its main competitor PepsiCo. Since the beverage giant bought into the company three years ago, the number of retail outlets stocking Honest Tea has multiplied by five and now stands at 75'000. Its sales have tripled in the same period to reach $72 million. Despite the expansion, the company plans to continue to rely on "guerrilla" marketing tactics, which have been proven effective in the past. This strategy involves field marketing, innovative demos, genuine media coverage and a strong social media presence. Honest Tea will continue to operate as a separate business within Coke's Venturing and Emerging Brands unit.

According to a study carried out by Dutch scientists, drinking tea improves brain performance and reduces tiredness. The research focused on caffeine and L-theanine, an amino acid found in tea, and discovered that their combination can prove beneficial in improving cognitive performance. The effects were tested on a group of 44 young volunteers using various mental tasks like word recognition and attention switching. The speed and accuracy of these tasks were significantly improved by the active ingredients, compared to the placebo group. Scientists also found that drinking tea reduced tiredness and fatigue in the group. The research was conducted on behalf of Unilever, the owner of Lipton tea brand.

Teavana Corporation has announced a voluntary recall of 2659 lbs of its peppermint herbal tea, because of possible contamination with Salmonella. Aromatics Inc., a company that produces and distributes the product on behalf of Teavana, issued a notification of a possible contamination after a sample test. Salmonella is a bacteria that may cause serious and sometimes fatal infections in people with weakened immune systems, such as children and elderly. Teavana has ceased to sell and distribute the product, and is investigating the circumstances of the contamination with the FDA. The peppermint tea was distributed nationwide in Teavana retail stores, through mail orders and online.

A former dentist is launching a ready-to-drink iced tea that can help prevent tooth decay. Tropical Breeze Beverages combines naturally caffeine-free rooibos tea with all-natural flavoring and xylitol, a key ingredient that prevents tooth decay. Xylitol fights the cause of tooth decay by significantly reducing bacteria that is responsible for increased acids in the mouth. Xylitol is naturally present in some fibrous fruits and vegetables, corncobs and stalks. The range, sold under Banks's Sun Tea brand, is available in banana, pomegranate, coconut and apple spice flavors. According to the manufacturer, there are no additives, preservatives or colorants in the tea.

Scientists are reviewing scientific data to establish the health benefits of herbal infusions. The US Department of Agriculture has requested a study of the potential health benefits of the three most popular herbal teas. After reviewing previous studies, scientists noted that chamomile tea has moderate antimicrobial activity and significant antiplatelet-clumping activity. Peppermint tea has been found to have significant antimicrobial and antiviral activities. Finally, hibiscus tea is thought to lower blood pressure. And while these studies were not carried out on humans, researchers concluded that there is enough evidence to suggest further clinical studies.

Honest Tea has launched a new line of cocoa beverages, days after being bought out by the Coca-Cola company. Honest CocoaNova is a low-calorie cacao infusion that contains antioxidants and 50mg of theobromine, a bitter powder naturally found in dark chocolate. It is made using organic and FairTrade certified cacao beans and contains 50 calories per 10oz bottle. The range is made up of Mint Cacao, Mocha Cacao and Cherry Cacao and will be available from April 2011. The retail price is set at $1.99. According to the organic beverage maker, the company has been working on the concept since 2006.

A Japanese tea company based in the UK has vowed to donate a percentage of its profits to help with relief efforts in Japan. Vitalife Matcha, a tea company that specializes in a Japanese green tea called matcha, will donate 25% of its profits over the next 4 months to the victims of the Japanese earthquake and tsunami. According to the company, the farms where it sources its tea have not been affected, yet the response to the initiative has been tremendous. Global Giving, the organization that Vitalife is using to donate their profits, have already helped to raise over £200,000 for the cause. Thousands of people have died in the disaster and thousands more are reported missing.

The continuing export embargo in the Darjeeling region of India is expected to divert large customers to the neighboring Nepal and severely bring down prices. Exporters fear that buyers from Germany, Japan and UK will shift to Nepalese tea if the prohibition is not resolved. Around 0.5 million kilograms of first flush Darjeeling tea is produced in March, followed by another 1.50 million kg in April, and 90% of the crop is exported. According to insiders, prices may drop from approximately $130 to $20 per kilo. The embargo, in force since March 4, was imposed by a trade union seeking higher wages for garden workers.

New research suggests that tea can help lose weight, although adding milk neutralizes this ability. Scientists have identified two compounds, theaflavins and thearubigins, which help reduce the amount of fat absorbed by the gut and can cut cholesterol. However, if milk is added to the cup, its proteins cancel out these beneficial effects. British researchers have gone further and found that the type of milk added also matters. Skimmed milk decreases the levels of active compounds present in tea far more than whole or semi-skimmed milk. Scientists believe this can explain why the British people do not benefit from positive effects of tea despite being heavy consumers.

Starbucks has revealed plans to offer single-serve brewing machines to rival the popular Keurig system. Keurig, the most popular brand, currently holds more than 80 percent of the market share. The brewing machines are destined to make Starbucks and Seattle's Best coffee, and Tazo tea infusions. This comes on the heels of a previous agreement between the coffee giant and Green Mountain Coffee, maker of single-cups for the Keurig system, to sell Starbucks coffee and Tazo tea pods for those machines. On a separate note, Starbucks has signed a deal to supply its products to over 500'000 luxury hotel rooms across the US.

The tea industry across the world is stepping up efforts to help the victims of the disaster in Japan. Sri Lanka's tea companies have donated 3 million tea bags for the people affected by the tsunami and earthquake. The country has also donated $1 million and has requested the state-run airlines to continue flying to Japan. In the US, private enterprises in the tea sector have created initiatives to contribute to the relief effort. Online tea retailer Adagio Teas is donating 15% of sales of Japanese teas to the Red Cross. Rishi Tea has pledged 10% of its overall sales to the same cause. Teavana has promised to match all customers' donations up to $50'000 to a relief fund. Japan grows some of the most famous green tea varieties, such as Gyokuro, Sencha, Genmaicha and Kukicha.

Ajiri Tea, a small tea company with a social mission of creating employment in Kenya, has been awarded the best black tea award in the 2011 North American Tea Championship. The tea, which competed against nearly 200 teas in 18 different categories, won for best brewed color, aroma, flavor and harmony. Ajiri Tea sells Kenyan tea to provide jobs for Kenyan women and pay school fees for orphans in western Kenya through the nonprofit Ajiri Foundation. The product packaging is handcrafted by local women from dried banana leaves. A pack of loose tea retails for $10, whereas 16 tea bags cost $9. Ajiri Tea is sold in nearly 200 outlets in the US. Other notable winners from the 2011 North American Tea Championship include Teagschwendner and Rishi Tea.

Despite an 8 percent rise in volume terms between 2008 and 2010, a leading market research firm has warned of a bleak future for mass market tea in the UK. The rise is attributed to more people staying in during the economic crisis and two successive cold winters. The traditional British cuppa is enjoyed by the vast majority of senior people (88% penetration), yet that figure drops to 73% for young adults. And while standard tea accounts for 89% of the £647m ($1,04bn) market, it has failed to resonate with the younger generation, who are more inclined to consume herbal or specialty teas. The research also found that a third of tea consumers do not believe in its health benefits.

Authentic Teas, a boutique tea company based in Ontario, Canada, has launched a range of herbal teas sourced from Armenia. The teas are grown exclusively in the wild, without chemicals. The plants are then harvested and blended by hand using traditional methods, some of which were found in ancient Armenian manuscripts. The manufacturing takes place in indigenous village areas, where most of the economic benefits are returned to local artisans. The range has 6 varieties with blends of thyme, linden flowers, wild oregano and mint. A 1.75oz / 50g bag retails for approximately $11.

The Darjeeling Tea Association has signed a deal with the Gorkha Janmukti Morcha and other unions to end an embargo on tea from the region. Under the three-year deal, tea garden workers will receive a 30% wage hike. This increase is the highest one in the history of the Darjeeling tea industry. The daily salary will be $2 from now on, although unions' initial demand was closer to $3 per day. This deal covers 62 out of 85 gardens in Darjeeling and experts expect the remaining ones to hammer out a deal shortly, as a situation where different wages are paid to workers in the same region is unlikely. The Gorkha Janmukti Morcha union had set up an embargo on first flush Darjeeling tea export in the beginning of March.

Tetley, one of the largest tea brands in the world, has introduced a tea-scented perfume in the UK. Le Brew was created in response to tea being one of the favorite smells for UK consumers. According to research, people find the smell of tea relaxing. It comes fourth, after fresh bread, cut grass and clean laundry. Tetley's senior taster suggests that the fragrance is reminiscent of freshly cut tea and the tropical scents in a tea plantation. The limited edition Le Brew perfume is available from Tetley Tea Store and is priced at £15 ($25).

Tea prices in India, the world's second largest producer, have jumped this week, tracking global cues. Reports from auctions indicate that new season quality tea sold 29% higher, while the average quality rose 15%, compared to the same period last year. This comes after several major auctions around the world reported high tea prices. Top-grade tea gained 10% in Kenya over the last week, and similar rises were reported in Sri Lanka. Despite India ranking second in tea production after China, its per capita consumption of the beverage is only 0.8 kg compared with 2.5 kg in the UK and 1.5 kg in Ireland. However, there has been a steady annual growth of about 3% in domestic consumption and local consumers are increasingly willing to spend more for a good quality tea.

World Tea Expo, a specialty tea trade show, has announced the latest and most noteworthy products that will be showcased during the event. 2011 Best New Product Awards cover a wide range of categories in the sector - from ready-to-drink beverages to tea accessories. Winners include a tie between a body lotion infused with tea by Indie Tea and low-calorie iced teas by Ito En in the Tea as an Ingredient category. Best innovative product is a no-fuss filter by Sugimoto America designed to extract the perfect flavor of green tea. One-Touch Teapot by TeaTime Trading scooped the Tea Ware award with a novel glass teapot that allows to control the strength of the brew with the touch of a button. Best Accessory was a double-walled porcelain mug by Dethlefsen & Balk. World Tea Expo 2011 takes place at the Las Vegas Convention Center, June 24 - 26.

A new study suggests that green tea, when combined with a fitness activity known as tai chi, may improve bone health and reduce inflammation in postmenopausal women. Tai chi is a Chinese martial art known for its slow movements. Scientists at Texas Tech University probed the potential for green tea to work synergistically with tai chi in enhancing bone strength. The six-month, double-blind, placebo-controlled, intervention trial involved 171 postmenopausal women with a median age of 57. It found that women who consumed an equivalent of four to six daily cups of green tea and participated in tai chi showed enhanced bone health and increased muscle strength after six months. The combination of green tea and tai chi also had a substantial effect on biological markers of oxidative stress, which is a precursor to inflammation.

The US tea market is estimated at $8 billion and encompasses more than 3000 specialty tea rooms and retail outlets across the country. According to experts, it increasingly relies on alternatives to the classic Victorian conception of tea. In fact, tea businesses are shifting away from Victorian-style tearooms into smaller, tea-concentrated urban models. Businesses have also begun adding other services such as bakeries or in-store dining. Some tea stores have branched off to related services like online sales and business-to-business tea consulting. This plethora of strategies is aiding the development of the category and recruiting a new customer base. Despite baby boomers being the most populous target group so far, businesses increasingly seek younger customers who are attracted by tea's unique culture.

Lipton Iced Tea, a product of Pepsi Lipton Tea Partnership, is adding 4 new all-natural products to its range. The beverages contain only simple and natural ingredients: tea, sugar and natural flavors. The 100% Natural range will be available from April 2011 in four varieties: Green Tea with Citrus, Iced Tea with Lemon, Iced Tea with Blueberry Pomegranate and Green Tea with Passionfruit Mango. The 20oz bottles will retail for $0.99 to $1.59. Their launch will be supported by a national advertising campaign. The company seeks to benefit from growth in the natural beverage category and tap into the natural ingredient trend, which consumers associate with health and wellness. In 2010, ready-to-drink tea was the fastest growing category in the liquid refreshment beverage market.

Tea garden workers in Nepal are continuing their face-off against tea manufacturers for the second week. Their indefinite protest is tied to demands made-up of 28 points that include wage increases and social security. Earlier, both parties agreed to a 10 member taskforce comprised of union leaders, manufacturers and government officials. In the latest twist, talks ended without any positive outcome, as the two sides were divided over the wording for the formation of the taskforce to resolve the issue. Because of the strike, works in tea gardens and manufacturing plants came to a grinding halt in many districts across Nepal.

Rishi Tea, a manufacturer of organic gourmet teas, has been sent a warning letter from the FDA for promoting certain teas as drugs. According to the agency, Rishi Tea website claims establish certain products as drugs, because they are described as intended for use in the cure, mitigation, treatment or prevention of disease. The company was also notified that particular teas may not be marketed without prior approval from the FDA. Furthermore, Rishi Tea was warned about nutrient content claims and the use of the term "antioxidant", which did not meet FDA guidelines. The agency urges the company to review its website, product labels, and other labeling and promotional materials to ensure claims fall in line with current regulations.

Teavana Holdings, Inc., a specialty tea retailer, has filled an initial public offering for up to $100 million last week with the Securities and Exchange Commission. Founded in 1997, the company now owns 146 stores in 34 states and 15 franchise stores, primarily in Mexico. Its net sales grew 38% in 2010, while comparable-store sales increased 8.7% compared to the same period in 2009. Net income was $12 million in fiscal 2010, up 126% from 2009. According to Teavana, its average transaction size is $35 and operating margins stand at 19%. The company plans to have 500 stores in the US by 2015 and expects to open 50 outlets in 2011. The share size and price, as well as the IPO date are yet to be announced.

Nestlé Waters North America, Inc., a subsidiary of the food giant Nestlé, has signed an agreement to acquire the Austin-based Sweet Leaf Tea Company, which owns Sweet Leaf and Tradewinds ready-to-drink iced tea brands. Its turnover is reported to total more than $53 million in 2010. Sweet Leaf Tea was founded in 1998 and sells naturally sweetened organic iced teas. Tradewinds, founded in 1993, specializes in brewed iced teas and tropical fruit juice drinks. This acquisition, which remains subject to applicable regulatory approval, will bolster Nestlé's beverage portfolio of bottled water to include high-quality iced teas, lemonades and juice drinks. Sales for Nestlé Waters North America topped $4 billion in 2010.

Sri Lanka has launched new logos to protect the island's best known brand under the Geographical Indicators (GI) international trade regime and promote it as ozone friendly. The project is aimed to market the island's teas as premium products, similar to French champagne. The new GI logos will denote seven specific agro-climatic regions where tea is grown: Nuwara Eliya, Dimbula, Uva, Udapussella, Kandy, Ruhuna and Sabaragamuwa in the central hills and southern region. Sri Lanka is also the only country qualified to use the 'ozone friendly' logo for tea after it gave up using Methyl Bromide, an ozone depleting substance in tea production.

According to industry insiders, Kenya's tea sector is undergoing an unusually difficult time. Majors threats include adverse weather, piracy and political instability in some of its north Africa and Middle East markets. Kenya, the world's biggest exporter of black tea, has experienced very poor rainfall these past few months and the outlook for May remains the same. Oil price increases have affected operational costs, which have gone up by 10%, whereas the threat of piracy in the Indian Ocean has lengthened the time taken to deliver cargoes, further raising costs. Finally, instability in Egypt and several other large importing countries has impacted exports. Due to these factors, Kenya’s tea output may decline by as much as 12% in 2011, according to the nation’s tea board.

Tea growers in Darjeeling are optimistic about this year's prospects, due to greater crop output and booming overseas interest. After suffering from adverse weather conditions that caused a steep production decline last year, India's famous tea region is looking to bounce back with a 25% rise in production. The region is also enjoying increased interest from foreign buyers looking to purchase premium first and second flush teas. Furthermore, growers are set to benefit from a favorable currency exchange with the European Union, where much of their produce is exported to. Perhaps most importantly, experts note an emerging domestic market for Darjeeling tea. Last year, Darjeeling produced 8 million kg of tea, the lowest figure in the past decade. Output is expected to reach around 10 million kg this year.

After being fully acquired by Nestlé last week, Sweet Leaf Tea management claims that the move will mark a new era for the beverage company. The deal will grant Sweet Leaf access to Nestlé’s distribution channels and a powerful, 700 people strong sales and marketing force. The company claims there will be no immediate changes in staffing, but may consider consolidating operations as synergies between Nestlé's many brands arise. According to the company's founder, despite high commodity prices, the deal will ensure no retail price increases due to Nestlé's huge purchasing power. Nestlé hopes to double Sweet Leaf's combined turnover of $53 million in one to two years.

Japan has reported its first case of excessive radiation levels detected in domestic tea leaves. The discovery was made in Kanagawa prefecture, just south of Tokyo, and represents the first incident in over a month of an agricultural product found to be contaminated by radiation outside the Fukushima Daiichi's home prefecture. According to officials, tests found between 550 and 570 becquerels of cesium per kilogram of tea. The leaves were tested as farmers prepared to ship this year's first crop. The prefecture had previously been testing other agricultural products, but had not found any problems of excessive contamination. All tea shipments from the prefecture were suspended since the discovery.

An Australian biomedical professor has discovered that green tea, onions and olive leaf extract can combat obesity and associated diseases like diabetes, heart disease and fatty liver. And this holds true even for diets high in fats and carbohydrates. Tests on rodents showed that green tea helped prevent the growth of inflammatory cells in the animals' fat pads, located in the abdomen, which take fat from the blood stream and store it. The rodents' liver and heart function also saw improvements. The flavanoid responsible for these effects is called rutin. It reversed or prevented metabolic changes in rats that had been fed a diet high in sugar and fat.

Although Seattle is usually associated with coffee rather than tea, a tea and spice shop in the Pike Place Market is celebrating its 100th anniversary. The outlet opened its doors in 1911 and remained in the same premises for the entire period. MarketSpice offers more than 100 different teas and more than 200 spices, along with coffee, candles and accessories. Apart from in-store sales, the teas are shipped across the US and internationally, as well as sold in certain retail locations. Not much is known about MarketSpice's early history, because most of the store's records were kept in a storage area that was flooded about 10 years ago.

The Japanese tea industry is still feeling the aftereffects of the radiation leak at Fukushima power station, as government restricts tea shipments from four prefectures. The restriction applies on dried tea leaves containing more than 500 becquerels of radioactive cesium per kilogram. Shizuoka prefecture, which accounts for about 40% of the country's output, has declared its fresh leaves safe, although questions remain about cesium levels in dried leaves, which may be up to 5 times higher than in fresh crops. Experts expect higher prices as a result, and a shift by local consumers towards cheaper alternatives such as barley or oolong tea. Japan's tea output was worth $1.3 billion in 2009.

Cooper Tea Co. and Third Street Chai, makers of concentrated beverages, have agreed to merge operations. Third Street sells chai and lemonade concentrates under Third Street and Pixie Mate brands. Cooper Teas specializes in iced tea concentrates. The Boulder County-based companies hope to leverage their manufacturing capabilities and expand distribution. Both operate on different markets: Cooper Tea distributes primarily to the food service and convenience store channel, whereas Third Street is established in the retail sector. The companies will operate independently under DrinkWorks umbrella brand. Third Street has 22 employees and Cooper Tea has 18. The financial details of the deal were not disclosed.

After recently targeting Rishi Tea for improper use of health claims related to tea, the FDA has now warned Ten Ren Tea about a similar matter. According to a letter sent to the company's CEO, Ten Ren Tea is promoting its products as unapproved drugs on its website and product labels. The company, based in San Francisco, claims that possible health benefits of green tea include a reduction in blood pressure and a decreased risk of suffering from heart attacks and cancer. Those claims are scientifically unsubstantiated according to the FDA. In February 2011, FDA authorized one qualified health claim for green tea: "Drinking green tea may reduce the risk of breast or prostate cancer. FDA does not agree that green tea may reduce that risk because there is very little scientific evidence for the claim."

Argo Tea, a chain of tea cafés founded in Chicago, has opened its fifth New York City location in just over a year. The outlet, located in the Chelsea district, will replicate the "Argo experience" of all natural tea-based signature drinks, over 30 varieties of loose leaf teas, FairTrade organic coffee, fresh-baked pastries, specialty foods, and a selection of teaware and accessories. According to Argo Tea, the company relies on natural high quality products, earth-friendly and sustainable business practices, and industry-leading innovations. It has further 15 locations in the Chicago area and one in St. Louis. The retailer employs over 250 people.

According to Euromonitor, a market research firm, tea industry must try to find ways to replicate the success of coffee companies in unlocking the potential in the premium market. Data suggests that a liter of coffee commands three times the value of its tea equivalent on the global market. This means that coffee companies have been much more successful in sniffing out profitable niche markets. Examples of such innovative strategies include the meteoric rise of Starbucks in the US and the recent boom in coffee pods in Europe. The research firm expects premium categories such as white and rooibos tea to drive the tea market in the future. Figures show that in terms of constant value growth between 2005 and 2010, the global coffee market has expanded by 14% compared to 16% for tea, albeit the latter has grown from much lower levels.

Every year, the US tea aficionados celebrate the National Iced Tea Month in June. The country consumed more than 65 billion servings of tea, or over 3 billion gallons, in 2010. Of that, approximately 85% in form of iced tea, which is a hydrating alternative to sugary beverages like soda and may help boost weight loss efforts. According to a recent study, drinking 2 cups of tea daily is associated with a lower percentage of body fat and weight control. Iced tea also remains a great tasting beverage and is virtually calorie-free and contains no sodium, fat, carbonation, or sugar. 2010 Dietary Guidelines for Americans recommend eating a diet with less sugar and have singled out tea as the beverage of choice.

The organizers of the North American Tea Championship have announced 14 first-place winners in their annual Iced Tea Class competition. The event is aimed to highlight the best tasting teas available on the North American market. Winners include Milo's Tea Company, Numi Tea, The Republic of Tea and Teas Etc. Ito En's Tea's Tea Low Calorie Mango Oolong received the highest marks. According to the organizers, 43 tea companies of various sizes participated in the event and showcased more than 130 premium iced teas - almost twice as many as a year ago.

Magwa Tea plantation in South Africa, the largest tea garden in the southern hemisphere, is facing an uncertain future after worker unrest has led to looting and abandonment. The 1803 hectare plantation provided jobs and career training for 1200 permanent and 2300 seasonal workers. In February, the plantation was shut down after workers went on a rampage due to a refusal to increase wages by 104%. Magwa Tea workers earn one of the highest salaries in the tea industry, five times more than their counterparts in the Republic of Malawi. Tea bushes have not been pruned since February and this year's crop is lost. A special task force has been appointed by the local governement to find a solution to the crisis and get one of the most successful tea gardens back on track.

According to the US Tea Association, the US iced tea market has come a long way since its humble beginnings. In fact, about 85 to 90 percent of all tea consumed in the US comes chilled. And the country has now surpassed the UK in terms of import volumes: in 2010, the US imported a record 280 million pounds of tea. Over the last 20 years, the iced tea market has undergone a massive transformation, evolving from a $200 million market in 1990 to a $3 billion one in 2010. As the president of the US Tea association explains, this boom in popularity is largely due to increased awareness about its many health benefits. Experts suggest brewing iced tea yourself in order to get the most health benefits and value.

According to the brand ambassador of Twinings, a British tea manufacturer, the company is considering entering the tea retail market in the UK. Twinings plans to open a store with a contemporary twist in central London. More retail outlets would then follow. However, the company admits that it is still unsure how to tackle this project. It is especially cautious about the idea of selling cups of tea that can be taken away, akin to coffee. But an area for sampling would definitely be available, because any outlets would be designed to fit into the company's strategy, which is aimed at encouraging people to broaden their tastes. Twinings, owned by Associated British Foods, currently stocks about 250 varieties of tea.

Dubai, part of the United Arab Emirates, hopes to host the largest tea manufacturing plant by 2015, as Unilever's Jebel Ali tea blending and packing facility starts expanding next year. The factory, which currently produces 1.1 million tea bags an hour every day all year round, aims to double its output in four years and become the world's largest tea production facility. According to Unilever, the Middle East tea market has undergone a major shift in the past few years, with green tea gaining a lot of awareness and popularity. And the market has huge growth potential, because per capita consumption is very high. Unilever expects the global tea market to grow by up to seven percent annually in the next few years.

DavidsTea is a young and dynamic tea retailer that is transforming the landscape of Canadian tea market. Founded in 2008, it aims to reinvent the tea shopping experience, moving it from a British or Asian to a North American and modern decor. It offers more than 120 tea varieties in stores with a bright, streamlined Scandinavian aesthetic. Last year, DavidsTea went from 8 retail locations to 40, and it plans to open 20 more this year. Although the retail chain does not reveal its sales figures, it claims that each store is profitable and the business as a whole is extremely profitable. This comes as no surprise, because tea has been one of the fastest-growing menu items in Canada for the past 6 years. Out-of-home consumption has grown from 500 to 584 million servings since 2007. A recent Agriculture Canada food-trends study predicted tea consumption will jump 40% by 2020.

The US tea industry gathers this week in Las Vegas for the World Tea Expo. The annual event, held at the Las Vegas Convention Center, boasts the most comprehensive educational program and will focus on the hottest tea topics, latest trends and most relevant education for tea professionals. Courses cover subjects on professional tea cupping, rare tea varieties, creating custom tea blends and top trends in retail and marketing. The show will also host an interactive tour of the most important tea-growing regions in the world, such as India, China and Taiwan. World Tea Expo takes place June 24-26.

Japan's famous tea industry continues to be plagued by ongoing alerts about radiation levels in tea leaves. In fact, industry insiders claim that this may be the worst crisis in the country's centuries-long tea farming history. Japan's Tea Exporters Association concedes that foreign and domestic demand has dropped dramatically, even before these radiation discoveries. However, the industry body is now going on the offensive by protesting government regulations in respect to radioactive contamination of tea leaves, that it deems far too strict. According to current regulations, a person would have to eat a pound of green tea leaves per day for a year before hurting his health.

Two new studies have revealed new mechanisms by which tea could help in cancer prevention. In one study, researchers from New Jersey studied theaflavin-2, a compound found in black and oolong teas. They discovered that it activates genes that kill cancer cells, while simultaneously reducing molecules responsible for inflammation. The second study from India examined the effects of tea polyphenols on the development of breast cancer in female rats. They found that black and green tea polyphenols significantly lowered the number of mammary tumours by 77% and 92% respectively, and reduced their growth. These findings shed new light on the ability of tea components to regulate genes and reduce inflammatory mechanisms.

The governor of Shizuoka prefecture, the largest tea producing region in Japan, is urging authorities to revise the provisional limit of radioactive substances in tea leaves. He cited recent tests which showed tea leaves and processed tea to be safe, despite exceeding radiation limits of 500 becquerels per kilogram. The dispute stems from the fact that same limits that apply to food also apply to tea, even though 95% of it is consumed as a drink. The authorities are currently carrying out further tests to verify the safety of the tea leaves and have promised to make a formal announcement about the safety of Shizuoka tea soon.

Kenya, the world's biggest exporter of black tea, is facing a mixed bag of results from its tea industry. Output fell 7 percent in May compared to the same period last year on depressed and poorly distributed rainfall patterns in most tea-growing regions. Tea production in 2011 is already down a staggering 18% due to poor weather conditions. This trend is also reflected on the auction floor in Mombasa, where sales fell 23% in May. There are however positive signs for the industry, with export volumes picking up by 11% year on year, as buyers stock up on supplies. Egypt was the leading export destination for Kenyan tea in May, having imported 6.4 million kilograms of tea or 19% of total exports.

Research from the University of South Florida reveals new insights on how green tea may help prevent Alzheimer's disease. The study shows that tea-based flavonoids and other bioactive chemicals like Epigallocatechin-3-gallate and luteolin help improve in vitro some biomarkers associated with Alzheimer's. While flavonoids have already been known to be helpful against the disease, this was the first study to identify how they correct dysfunctions in cells' energy-producing structures. According to researchers, the results of this study lend further credence to the notion that EGCG and other flavonoids can be described as "multipotent therapeutic agents". Five million Americans may live with Alzheimer's disease, according to the National Institute on Aging.

Visitor and exhibitor participation at the World Tea Expo, held in Las Vegas last week, remained broadly unchanged from last year's event. The largest trade show in the tea industry drew 4679 attendees and 204 exhibitors, compared to 4700 attendees and 200 exhibitors last year. Despite the stagnating attendance, organizers and exhibitors remain upbeat about the state of the industry that is projected to double from its current size of $8.7 billion, with specialty and premium tea markets outperforming the field. To highlight this optimistic outlook, World Tea Expo East was announced to cater to local audiences on the East Coast. It will be held in Philadelphia on September 9-10. More than 2000 attendees and 100 exhibitors are expected at the inaugural event.

Sri Lanka plans to establish a distinct identity for Ceylon tea by creating a globally recognized industry standard. The standard is aimed at addressing major customer concerns in areas such as ethical trade and environmental impact. International recognition will then be sought to promote Ceylon tea in Western countries, where shoppers are more sensitive to high environmental and labor standards. Tea grown in Sri Lanka will be compliant with international environmental sustainability regimes and the Ethical Tea Partnership. An independent international agency will periodically audit the industry for compliance. The local tea board expects to launch the program at the international tea convention in Colombo, Sri Lanka early next year.

The Tea Spot, a manufacturer of tea steeping and serving products, is introducing a biodegradable tea infuser for loose leaf tea. Brewlux filter fits standard 16 oz disposable hot drink cups and allows room for tea leaves to fully expand and infuse. Brewlux is made from renewable US-grown corn resin and is fully compostable. Combined with a biodegradable cup and lid, the tea brewing process becomes environmentally sustainable. Consumer research conducted as part of the USDA Small Business Innovation Research grant showed that consumers are willing to pay a premium for the device over bagged tea. Brewlux was awarded "Best New Product" in the innovation category at the 2010 World Tea Expo.

According to several inside sources, food behemoth Nestle SA and tea giant Tata Global Beverages may be looking to acquire AriZona Beverage Co. Both companies held private talks with AriZona management recently, although the deal does not seem to be imminent. Nestle owns Nestea and Sweet Leaf Tea brands in the US, whereas Tata operates under Tetley Tea and several other marques. Founded in 1971, AriZona makes a wide variety of tea, juice and other types of beverages. It is currently one of the biggest brands in the US and is on par with Lipton Iced Tea, owned by Unilever-Pepsico, with about a third of the iced tea market. Coca-Cola Co, which lags rivals in the US tea market, was not mentioned by any sources as having a recent interest, according to Beverage Digest. Sources cite an estimated valuation for AriZona raging from $3bn to $4.25bn.

Tea Forte, a manufacturer of gourmet teas, is introducing a range of products designed to improve skin condition and appearance. The company hopes to tap the booming "beauty from within" trend, one of the hottest ones in the $45 billion beauty business. Tea Forte claims that polyphenols and catechins in the new range promote a more youthful looking and feeling skin appearance. The range carries a Brunswick Lab’s ORAC seal, which attests to the potency of antioxidants found in foods and beverages that protect cells and their components from damage by oxidative stress, a major factor in the progression of aging. The range includes flavored green, white and red teas. A pack of 16 filter bags retails for $5.95.

A tea company from Denver, CO., is succeeding in combining business and social responsibility. Teatulia has its sights on lifting a village out of poverty on the other side of the globe, while making a profit at home. The company teamed up with a tea garden in the Tetulia region in Bangladesh to source its organic tea. Teatulia also oversees initiatives that improve quality of life for 1200 tea garden employees and the surrounding community. For example, it encourages education programs and loans to farmers. The company started selling its products in a single Whole Foods grocery store in 2009 and is now present in 115 Whole Foods locations across the US. The start-up hopes to become profitable next year.

The stock price of Teavana, the largest premium tea retail chain in the US, has shot up on its first day of trading. Shares of Teavana, priced at $17, opened more than 60% higher at $28.95 on the New York Stock Exchange last Thursday. Experts say that investors are attracted to companies like Teavana, because they are growing incredibly fast. The Atlanta-based retailer has tripled the number of stores in the last 5 years. The company now owns 161 stores in 35 states and has more than a dozen franchise outlets in Mexico. According to a recent filing, Teavana plans to have "at least 500 stores" in the US. It has recorded profits of $12 million on sales of $124.7 million last year, with the average transaction amounting to $36.

Tea and coffee drinkers are less likely to carry the methicillin-resistant Staphylococcus aureus (MRSA) in their noses. MRSA is a superbug that is resistant to antibiotics and may cause severe diseases in people with weak immune systems. According to a study from Medical University of South Carolina, drinking either beverage reduces the risk of carrying MRSA by about 50%, whereas drinking both is associated with a 67% decline. While the study did not establish a causal relationship between tea and nasal MRSA carriage, authors of the study suggest that antimicrobial properties of tannic acid and catechins may be responsible. Iced tea drinkers did not benefit from same effects as hot tea drinkers.

India signed a landmark deal granting the Gorkha people autonomy over their homeland in the Himalayan tea-growing region. Indian Gorkhas, who are ethnic Nepalese, have led a violent campaign since the 1980s demanding that the separate state of Gorkhaland be carved out of the mountainous district of Darjeeling. The deal means that the new Gorkhaland Territorial Administration has been vested with powers to manage public works, social welfare, education, health and the famous tea plantations of Darjeeling. Locals hope that this will give new life to the tea industry, with leases of around 30 gardens planned to be resolved. The regional tea industry comprises over 80 gardens and at least 50'000 permanent workers.

Harris Tea is looking for new ways to offset the company's carbon footprint and will rely on solar power to reduce its impact on the environment. The tea company has announced that a solar panel system will power its New Jersey facility. The system will generate an estimated 600,000 kilowatt hours annually, which represents approximately 60% of the site's annual power needs. This is equal to a 300 million ton reduction in carbon emissions per year, or the combustion of 137'000 liters of petrol. In the future, Harris Tea aims for zero land fill. It plans to introduce self-sealing cartons eliminating plastic overwraps and install motion sensors for all warehouse lighting. Harris Tea also participates in the Carbon Disclosure Project.

Details are emerging about legal disputes that are brewing between the owners of AriZona Beverage Co. The business partnership between John Ferolito and Domenick Vultaggio has turned sour a while ago and the two owners are currently involved in a legal feud. In the past, they have clashed over management styles. The key issue now is the control of the company and the attempted sale of shares to Tata Global Beverages, the world's second-largest tea manufacturer and distributor. AriZona claims a third of the US ready-to-drink tea market and tops the likes of Lipton, Nestea and Snapple. According to court documents, it's annual revenue is nearly $1 billion and it employs approximately 1000 people.

The Tea Board of Kenya has forecast a 25% decline in exports due to severe droughts. Foreign trade in Kenya, the biggest black tea exporter in the world, will likely amount to 330 million kilograms in 2011, compared with 441 million kilograms last year. The main cause was unseasonably dry weather in the beginning of the year. Kenya accounts for about a quarter of global tea exports. More than 70 percent of Kenya’s tea is exported to five destinations including Egypt, the UK, Pakistan, Afghanistan and Sudan. Domestic consumption accounts for about 5 percent of total output.

Research by New York high school students has uncovered unlisted ingredients in several herbal teas. Weeds, grass, parsley, ferns or bits of tree were found in about a third of 70 tea products that were tested. None of them were listed as ingredients on the labels. According to the authors, some may have accidentally been picked during harvest, whereas others, like chamomile or parsley, may have been added to provide flavor or color, or to act as fillers. While none of the ingredients are outright poisonous, some of them, for example chamomile, may cause allergic reactions to some people. This study hopes to help regulators tighten labeling rules and encourage manufacturers to improve the quality of their products.

A review of studies on health benefits of green and black teas found that both are equally effective. Both varieties come from the same plant, camellia sinensis. The difference is how the leaves are processed: green tea leaves are steamed and dried, while black tea leaves are fully oxidized. According to the researcher, studies that have looked at those two types of tea have confirmed similar improvements in vascular function, leading to significant reductions in stroke risk. The average intake in those studies was 4 cups per day for black tea and 5 to 6 cups per day for green tea (due to the smaller cup traditionally used). The study was commissioned by the UK Tea Advisory Panel.

A wage hike demanded by workers in the tea growing region of Dooars in India is reportedly threatening the profitability of its two biggest companies. Tea workers want a raise of approximately 50% in response to a similar goal achieved by fellow workers in Darjeeling. Two of India's biggest tea companies, Goodricke Group Ltd and Duncans Industries Ltd, claim the pay rise, backed by key political parties and labor unions, is likely to plunge them into losses. Between them they produce about 34 million kilograms of tea a year and do not have too many gardens in other regions. Dooars is home to about 3100 tea plantations. It produces around 145 million kg of tea a year and employs at least 171'000 people on a daily basis.

Ugandan tea exporters have requested the removal of several barriers to trade with neighboring Kenya. According to the Uganda Tea Association, current receipts, verification and clearing procedures put their produce at a disadvantage at the Mombasa tea auction, one of the biggest in the world. Importers of Ugandan tea also want a permit levy charged on shipments to the Mombasa auction scrapped to improve the competitiveness of the commodity. Uganda is the second largest player at the Mombasa auction after Kenya and produced 59 million kilos of tea least year. Tea producing countries in East and Central Africa, with the exception of Malawi which runs its own auction, sell their produce at the Mombasa auction.

Adagio Teas, a gourmet tea manufacturer, has announced the location of its third retail outlet. Adagio's Tea Experience Retail Store will be located in downtown Chicago, IL and will complete the original intent of piloting stores in three strategic locations: downtown, suburban street-level and high-end suburban mall. The retail space measures approximately 1000 square feet and is in a land-marked building a couple of blocks away from Michigan Avenue. Opening is planned for October 2011. The two previous stores in Naperville, IL and Old Orchard Mall in Skokie, IL opened their doors in late 2010. Adagio's further expansion in gourmet tea retailing will be guided by the results from these three stores.

Following in the footsteps of the UK and China, a tea association in India is urging the country to embrace tea as its national beverage. In order to achieve that, the local government of Assam, which produces half of India's tea, is encouraged to declare tea its state drink. Assam is the largest area under tea plantation in the world and its tea industry is the largest employer of women in the region. Tea plantations in Assam hire approximately a million people throughout the year. As a country, India is the biggest consumer of tea in the world and absorbs around 80% of its total output. According to the proponents of the issue, a drink can become a national drink because of its wide popularity, cultural heritage or local production. It also forms a nation’s identity and self-image.

The North American Tea Championship, the only independent and professionally-judged tea competition in the US, announced winners in its annual Hot Tea Class. The contest identified the highest quality and best tasting teas from the spring harvest of 2011. QTrade Teas & Herbs took home a total of seven awards, which included three first-place honors. Other first-place winners include Dethlefsen & Balk, Tao Tea Leaf and Teas Etc. The highest-rated tea in 2011 was Sri Lankan Silver Beauty, also from QTrade. According to judges, the submissions were fewer, but of higher quality than last year. Generally, the Black Tea category was described as the most modest, due to dry weather conditions in many growing areas, whereas the Flavor and Herbal Blend categories were the most exciting this year.

Kenya, the world's biggest black tea exporter, has authorized the commercial cultivation of a new variety of purple tea with high medicinal value. The country hopes the new variety will help growers diversify their products through value-addition and penetrate the specialty tea market. The new purple variety, or clone, has higher medicinal properties than green and black tea and its seeds produce oil suitable for cooking, cosmetics and the pharmaceutical industries. Kenya hopes to match last year's record-setting earnings from tea exports, thanks to stable prices and favorable exchange rates. Production is expected to fall by approximately 10% this year, because of bad weather in several tea growing areas.

The government of Eastern Cape, a province of South Africa, is looking for ways to boost its honeybush production. Honeybush tea, also known as bush tea, grows naturally in the mountain ranges of the southern Cape and is a sister to rooibos. The region cultivates only 30% of the crop, with the rest being harvested in the wild. According to an expert, this situation is unsustainable and a cultivation of honeybush on a larger scale will not only help supply the growing demand for the plant, but will also relieve the pressure on wild honeybush populations. At the moment, international demand far outstrips the supply and the industry has the potential to increase output from 150 tons to 1500 tons by involving small and emerging farmers.

A recent US foodservice and retail market survey conducted by Technomic found that 60 percent of consumers reported drinking coffee or tea in the last month. Only non-diet carbonated beverages fared slightly better with 62%. 10 percent of respondents also said that they drink more iced tea now than two years ago. Green tea was cited as the most appealing variety for hot or iced tea by nearly three out of four consumers, due to its health credentials. Lemon and honey were the other two flavors that were highlighted by 60% of tea drinkers. According to Technomic, hot and iced tea products have increased in price, from an average of $2.40 in 2008 to $2.57 two years later. In recent years, the number of green tea products has grown significantly on restaurant chain menus across the country.

Honest Tea, the best-selling organic bottled tea in the US, unveiled a redesign of its Honest Tea and Honest Ade product lines. The new designs feature a white background and images of fresh tea leaves and large cut-open fruit. The packaging also highlights the authenticity of the ingredients by specifying that the beverages are brewed with organic tea leaves. The label review was initiated over three years ago after a series of consumer insights suggested that the brand could be making a bigger visual impact on store shelves. According to the company, the new designs were created to stand out on store shelves and drive appetite appeal. Honest's new designs will be available starting in September.

Ten Fu Tea, China's largest tea producer in terms of sales, is planning to list its shares on the Hong Kong stock exchange. The initial public offering is expected to raise approximately $300 million. Ten Fu Tea is looking to use the funding for further domestic expansion. It currently operates more than 1'100 chain stores in mainland China, up from 543 in early 2006. The company is involved in tea packaging, sales, research and development, tea culture and education and traveling. According to industry experts, Ten Fu Tea has made breakthroughs in terms of profitability and cross-regional development. Both are difficult for Chinese tea firms to achieve, because the majority of them are small- and medium-sized businesses. Insiders say that Chinese tea companies trail their international counterparts and need to adopt modern management and business models in order to compete.

Sri Lanka's Tea Exporters Association gathered to discuss some of the underlying issues facing the industry, such as increased costs of production and lessening international demand for Ceylon tea. One of the main challenges that the country faces is the inability to meet growing demand for extremely low priced produce such as from Kenya or Vietnam. Sri Lanka is also facing decreasing demand due to changing tastes and young people turning away from the beverage. Finally, experts discussed the need to radically rethink the way the industry works. They suggested creating a $1 billion fund to create a Sri Lankan multinational to rival Unilever and Tata. They also advocated the idea of marketing Sri Lanka as a global tea hub and creating favorable conditions for importing, exporting and blending.

Hain Celestial, owner of Celestial Seasonings brand, has unveiled the first line of refrigerated energy shot drinks. Celestial Seasonings Kombucha Energy Shots are made with raw kombucha, a type of fermented tea. They combine two hot trends in the ready-to-drink beverage category: kombucha and natural energy drinks. The 2oz (59ml) bottles will be available in natural retailers in October. Hain Celestial also revealed that new products added more than $30m in sales in 2011 and that next year the company expects to match or exceed these numbers. According to the CEO, Hain Celestial is looking at acquisitions to drive growth and hopes that international operations will contribute more to the bottom line in the future. Hain Celestial saw sales rise by 23% to $1.13bn in the year ending on June 30, with net income jumping 92% to $55m.

UK tea drinkers are voicing their dissatisfaction with Twinings, the company that is generally acknowledged to have been the first one to sell Earl Grey tea, because it has altered the traditional flavoring of the blend. Critics liken the taste to "lemon cleaning product" and "foul-tasting dishwater". Some go as far as comparing Twining's move to the 1985 'New Coke' fiasco when Coca-Cola changed its world-famous drink, then performed a hasty U-turn after customer outrage. According to the company's website, the product has been refreshed with an additional hint of bergamot. Twinings has also carried out extensive market research before implementing the changes and claims to have received strong positive feedback over the previous blend.

Zealong, New Zealand's only premium oolong tea grower, hopes to capitalize on recent health and radiation scares from Japan and elsewhere. The Taiwanese family-owned company, which has invested $10 million in its plantation and tourist and export venture, cultivates tea that is free of chemical sprays, fertilizers and additives. It claims to grow the purest oolong tea in the world. Until now, Zealong has exported its crop mainly to Taiwan, where oolong tea is prized as a corporate gift and for socializing. But the company is now attracting increasing interest from buyers from Germany, Japan and other countries due to recent radiation fears. There are also plans to go on a marketing offensive in New Zealand and stimulate domestic demand. Owners plan to invest at least another $10 million in the venture over the next few years, despite not yet making a profit since launching early last year.

Teavana Holdings, the largest chain of specialty tea stores in the US, has reported second quarter sales of $31.3 million, up 36%. Net profit rose 72% to $1 million during the same period. Teavana reiterated strong growth expectations and anticipates full year sales to amount to approximately $160 million versus $90 million last year. Annual profits are expected to hit $16 million. The company has been opening new stores and growing its e-commerce business, as well as looking to expand into new markets. Teavana recently signed a 10 year franchise deal to develop stores in the Middle East, in Bahrain, Kuwait, Saudi Arabia, Qatar, United Arab Emirates, Egypt, Lebanon and Jordan. The Atlanta, Georgia-based retailer also aims to enter the Canadian market in the near future.

Organizers of the World Tea Expo are hosting their first trade show on the East Coast in Philadelphia this weekend. The event will feature 100 exhibitors and many new products, as well as various conferences, tea tastings and workshops for tea professionals. According to the organizers, the trade show is aimed at providing professionals the tools needed to drive business and increase sales in tea and related products. In addition, World Tea East debuts the Cha Jing Lifetime Achievement Award, which will be presented to distinguished tea leader John Harney, founder of Harney & Sons Fine Teas, for his significant contributions to the industry. The trade show will be held at the Pennsylvania Convention Center on September 9 - 10.

India has seen its tea output rise by 8 percent to 133 million kilograms in July, compared to the same period last year. According to numbers from India's Tea Board, production for the first six months of 2011 has also grown by 6% to 491 million kg. This is mainly attributed to healthy growth figures from the region of Assam, which accounts for more than 50% of total Indian output. However, the country has seen a drop in exports with a decline of 8% to just above 15 million kg in July 2011. Foreign trade numbers are even worse for the first six months of the year, as India's exports fell by 16% to 89 million kg. India is the world's second largest producer and the biggest consumer of tea.

Sri Lanka's tea industry is facing a production slowdown due to employees protesting against pressures on working conditions and wages. Workers staged a "go-slow" campaign, plucking 5 kilograms of tea per day, instead of the usual 10 to 15 kg. Proponents of the campaign claim they are protesting against a possible cut in wages and disproportionate plucking requirements. A 18-20 kg requirement is seen by many as excessive during a period of drought. Sri Lanka's tea industry is already facing difficult times with reduced tea prices, volatile market conditions in the Middle East and significant cost increases.

Tens of thousands of tea producers in Uganda are expected to suffer from eroding weather conditions. According to a report by the International Center for Tropical Agriculture, some of Uganda’s most lucrative tea-producing areas could be completely wiped off the map by 2050, if the temperature rises by an expected 2.3 degrees Celsius. The report found that even an expected one-degree rise by 2020 in average temperature could significantly reduce productivity, even as cooler areas are likely to experience improved tea growing conditions. Uganda's multi-million dollar tea industry employs over 60,000 small farmers and supports the livelihoods of up to half a million people along the supply chain.

A specialty tea company is opening its flagship store together with a real estate agency in Manhattan. Tavalon will open its tea bar in October right next to the offices of Blu Realty Group. Businesses will be separated by a glass wall, but customers of both will be able to interact and enjoy tea while browsing through real estate offers. According to Tavalon, the Riverside Boulevard, where the company will open the tea store, has an untapped client base and is short on basic amenities like coffee shops, restaurants and grocery stores. The combination real estate office and tea cafe is to be called Blu Cafe by Tavalon. Tavalon Tea had a retail store in Union Square, in lower Manhattan, until 2009.

Guizhou province in China is set to become the capital of the tea industry. The region benefits from ideal conditions for cultivation of tea, cool and pleasant monsoon climate, and high altitudes. It currently stands as China's second largest tea-producing province and is ranked number one in green tea production. More than $60 million have been invested in tea plantations in recent years, with the tea-growing area expanding by 30,000 hectares each year. The province plans to devote more than 300,000 hectares to ecological tea plantations by 2020. According to the local tea association, six types of most famous Chinese teas are grown and more than 600 varieties in total.

Peet's Coffee & Tea, one of the largest coffee and tea retail chains in the US, is opening its ninth store in Berkeley, CA. This is about 45 years after the company's first store was launched by its founder Alfred Peet. Peet's store will replace a tea shop, A'Cuppa Tea, which is moving down two blocks. According to Peet's, the company has been trying to open up shop in the neighborhood for ten years. When the building landlord informed Peet's that the lot was vacant, they took the opportunity to move in right away. The store, located at 3200 College Ave., will replicate the chain's nationwide look and feel.

A recent report by IMARC Group suggests good times ahead for India's domestic tea market. National tea consumption, which is already the highest in the world, is expected to reach $7.2 billion by 2016. This represents a compounded annual growth rate of 11%. High penetration of tea in both rural and urban areas will push companies to create value-added products and increase differentiation. According to the report, penetration of tea in the cold beverage segment will also drive the market. So far, tea is considered to be a predominantly hot beverage in India, yet popularity of iced tea has started to gain pace in recent years. The report expects iced tea to account for more than 10% of the entire cold beverage sector in the coming years.

Two heavyweights of the ready-to-drink iced tea category are locked in a marketing war over the number one spot in the US market. According to first-half figures, AriZona and Lipton are neck and neck in sales with 39% and 34.8% of market share respectively. Year-to-date sales of Arizona brands are $595 million, compared to $559 million for Lipton brands. These numbers are particularly astounding, given that AriZona is an independent company and has built its reputation without the help of above-the-line marketing, whereas Lipton is investing heavily in marketing for its Lipton Brisk, Lipton Iced Tea and Lipton Pure leaf brands. AriZona relies on an aggressive pricing strategy and bold flavors, and plans to combat Lipton with new partnerships and event sponsorships.

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Tea output and exports dwindle in Kenya

According to latest numbers, Kenya is facing declining tea production and exports. Tea output fell 12% to 229 million kilograms in the January-August period, compared with the same period last year. The country also expects its full year production to come in 9% lower than last year. The Tea Board of Kenya blames the decline on hot and dry weather conditions, as well as depressed rainfall during the first half of the year. Exports also declined by 2% during the same period and amounted to 286 million kilograms due to political unrest in a number of Middle East and North African countries, which are some of Kenya's biggest markets. However, Kenya expects full year export earnings to exceed the $1 billion mark, up 9% over last year.

The United Kingdom, one of the biggest consumers of tea in the world, is facing an alarming decline in young tea drinkers. According to a survey, more than half of British tea drinkers are over 45 years of age, while just four per cent are under 25. Young people usually drink just one variety of tea and often opt for other types of beverages, such as soft drinks, bottled water or fruit juice. Time constraints in the workplace were mentioned as one of the major causes for the declining numbers. The survey, commissioned by Typhoo tea company, also found that the UK population is increasingly sipping on healthier and trendier varieties, like green, jasmine or mint teas. While 80% of Britons still enjoy at least one cuppa per day, the traditional English Breakfast tea currently accounts for only 40% of the volume.

A new trial in Germany is aiming to find out whether green tea can prevent colon cancer. The study will investigate the effects of green tea on the formation and recurrence of colon polyps, sometimes seen as precancerous. According to the authors behind the study, it is the biggest of its kind in the world. It will rely on 3000 participants and results should be available after six years. Scientists will focus on the effects of plant hormone epigallocatechin 3-gallate (EGCG), which was shown to inhibit the formation of tumors of the prostate, breast and uterus. The dosage will be equivalent of about five to ten cups of tea, depending on the method of preparation. The project, which costs €2.1 million ($2.8 million), is entirely sponsored by a German non-profit organisation.

The Tea Spot, a specialty tea company, was recently awarded a $460,000 Small Business Innovation Research Grant by the US Department of Agriculture for market research on Brewlux, a patent pending tea filter. The grant is for marketing research in support of the commercialization of compostable bioplastic tea filters for making loose leaf tea to-go in mass-foodservice. Brewlux is made of a compostable resin made of US corn. Research will be headed by company employees and a team from the Marketing Department at the University of Colorado. A prototype of this product was awarded 'Best Innovation' at the 2010 World Tea Expo in Las Vegas.

According to data from the Indian Tea Association, total tea production in India is likely to exceed one billion kilograms this year and reach its highest level ever. The current record stands at 984 million kilograms achieved in 2008. Reaching the symbolic mark appears realistic after August output figures came in 33 million kg higher than a year ago and experts believe this trend will continue for the next months. Domestic consumption typically rises by 30 million kg per year, so the growth will barely compensate for the increased demand. Last year, production had suffered significantly and was at 966 million kg, primarily due to adverse weather conditions and pest attacks.

The Republic of Tea has announced that it has donated over $1 million to Susan G. Komen for the Cure, the largest source of nonprofit funds dedicated to the fight against breast cancer in the world. The company donates $1 for every item purchased from its Sip for the Cure tea collection. Sip for the Cure brand encompasses tea in tins, bulk bags, single-serve overwrapped tea bags, iced tea and mugs. The Republic of Tea makes all products in the Sip for the Cure collection available year-around, not just for a limited time during October, which is the National Breast Cancer Awareness Month. This year, The Republic of Tea has added a new Strawberry Hibiscus flavor to the collection.

Hi-T, a manufacturer of hemp iced teas, has signed an important distribution deal in D.C. on the back of growing popularity of this unique beverage. The company, based in Las Vegas, started selling the drink in the Washington area only since September and has already built up a presence in 400 stores. According to the manager, Hi-T iced tea has created a lot of buzz in the industry thanks to a big cannabis leaf on the packaging. Perhaps more importantly, hemp tea has been gaining awareness among health food aficionados for its possible potential in lowering high cholesterol and reducing arthritis.

Food and beverage giant Sara Lee Corp. sold a large part of its foodservice coffee and tea operations to J.M. Smucker Co. for $350 million. The acquisition will put J.M.Smucker, owner of Folger's and Dunkin' Donuts coffee brands, at the forefront of the US coffee market. The deal will also see both companies enter a long-term partnership to develop liquid coffee drinks and Sara Lee is set to pocket $50 million and growth-related royalties over the next 10 years. Sara Lee plans to focus on core food and beverage brands, but expects to wind down the rest of its North American beverage business. It looks to split into two companies in the first half of next year in order to separate North American and international brands.

This week witnessed the launch of a new tea company that aims to cater to true tea connoisseurs. Rare Tea Republic sources all of its teas directly from artisan producers from single estates throughout Northern India and the Himalayan Mountain region. The initial product range is made up of nineteen varieties that include black, green, oolong and white teas from places like Darjeeling, Kangra, Sikkam, Assam, Bihar and Nepal. Rare Tea Republic teas range from $6 to $30 for 50 grams. The young company plans to update its offer regularly to deliver the freshest, most unique selection of single estate full-leaf teas to connoisseurs. The teas care only sold online or via the telephone.

Steeped Tea is a Canadian direct sales tea company that relies on a unique business model to drive sales. The idea was born accidentally after a suggestion to organize a tea party led to adopt a business strategy based on independent partners throwing tea parties in people’s homes. Steeped Tea opted to sell their tea though independent consultants, mostly women looking for a part-time income, rather than by building up their own sales force. The company, with annual operating costs of $250,000, currently employs eight people and has 400 affiliated consultants who sell their tea across Canada. Each tea party yields an average of $500 in sales. The owners are now contemplating on expanding into the US market.

Atlanta Bread, a Georgia-based bakery and sandwich shop chain, has chosen Mighty Leaf to supply its hot and iced teas. The company will offer six varieties of Mighty Leaf iced teas, as well as a dozen varieties of hot teas, each packaged in sustainable silken pouches. According to Atlanta Bread, Mighty Leaf teas were chosen first and foremost for their taste, but also thanks to the company's involvement in sustainable farming and production methods in tea-growing regions. Atlanta Bread has started a coffee service in its 110 locations earlier this year by partnering with Italian Lavazza coffee brand. The bakery café chain also serves a variety sandwiches, salads, soups, bagels, breads, pastries and desserts.

Scientists have discovered a novel way to fight Alzheimer's disease using a mix of green tea and red light. The laser light pushes water out of the cells and when the laser is switched off, the cells absorb water and any other molecules, including drugs, from their surroundings. The combination of green tea and red laser light was found to destroy Alzheimer's plaques that crowd the brains of people with the disease. Researchers from Germany bathed brain cells with EGCG, an extract found in green tea, while stimulating the cells with red light. This method reduced the amount of plaques that cause loss of memory and other symptoms by 60 percent.

The price of tea in the UK may go up by as much as 7% next year, if an anticipated drought in Kenya wipes out a sizable amount of the crop. The droughts that have affected over 13 million people across this part of Africa have also devastated export crops like tea. According to an analyst from the market research firm Mintec, tea prices had resisted the recent turmoil in global commodities markets, but they are bound to be affected by droughts in tea-producing countries and rising demand. There are hopes that increased production in China and India may offset some of the price rise. Tea drinkers in the UK consume 165 million cups per day, or 62 billion per year. Kenya supplies over half of the UK's tea.

India's tea region of Darjeeling has been granted the coveted Protected Geographical Indication (PGI) by the European Union. Protected Geographical Status is a law that protects the names of regional foods and eliminates unfair competition or misleading of consumers by non-genuine products. The status implies that tea produced only in the Darjeeling region can be sold as Darjeeling Tea in the European Union countries. The seal will also apply to blends of Darjeeling and non-Darjeeling tea for a transitional period of five years. Darjeeling tea is the first Indian commodity to achieve this feat and only the seventh non-EU product receiving the protected status, following one from Colombia and five from China.

Labor unions, estate managers and government officials have reached an agreement to increase the wages of tea workers by 27%. This came as a response to massive movements in tea-growing regions of Dooars and Terai, which had resulted in strikes and embargo on tea trading. The local government took an active role in brokering the deal, because the situation had crippled the massive tea industry. Officials also announced plans to reopen five state-owned gardens, as well as to improve living conditions of workers. There are 153 tea gardens in Dooars and 42 gardens in Terai, which respectively produce 180 million kg and 50 million kg of tea annually. Together that represents approximately a quarter of India's total output.

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Teavana introduces Perfect Tea Touch App for Android

Teavana, a gourmet tea retail chain, launched its Perfect Tea Touch App for Android phones and tablets. The app contains information on company's selection of teas and offers many useful tools for tea lovers. One feature is a musical tea timer that contains suggested brew settings for each type of tea, paired with a soundtrack that reflects the culture and harmony of the place where that tea is grown. Perfect Tea Touch App also has a custom tea blender, Teavana store locator and the functionality to save your favorite teas and tea blends. The app links seamlessly to Teavana's mobile site to shop for tea or tea blends.

The fiasco involving excessive alcohol content in Kombucha beverages will likely come to an end for Millennium Products and Honest Tea, after both companies settled class-action lawsuits claiming that they misled consumers about the alcohol content in their Kombucha beverages. The manufacturers, who were forced to pull their fermented teas from shelves last year due to high alcohol levels, agreed to provide cash refunds and coupons to avoid further litigation. Millennium Products and Honest Tea maintain that they did not intentionally mislead consumers. Honest Tea dropped out of the category in December 2010, while Millennium Products has thrived on the popularity of GT Kombucha and GT Synergy. According to market data, sales of Kombucha drinks grew by 28 percent in 2010 and are projected to jump 60 percent this year to reach $200 million.

A medical study from Japan shows evidence of a clear link between green tea consumption and reduced odds of catching the influenza virus. Scientists studied the effects of green tea on influenza in 2600 kids and found that children who drank five cups of green tea per week had significantly fewer cases of flu, compared to those who drank almost no green tea. Children who drank about one cup of green tea per day also had significantly fewer sick days from school. Green tea compounds catechins and theanine were found to enhance systemic immunity and interfere with viral replication. In fact, the results were so conclusive that scientists established that regular consumption of green tea is protective against influenza infections during the influenza season.

A report by market research firm IBISWorld predicts that healthy eating and living trends will drive growth for the US tea industry in the years ahead. As consumers change their dietary patterns and seek healthy alternatives to soft drinks and coffee, the tea industry is expected to reach $1.1 billion in sales by 2016. The gourmet and specialty tea segments will likely be the largest beneficiaries of these trends, because they cater specifically to fragmented consumer needs. Other growth drivers will be the increasing variety of flavors, strengths and sweeteners, as well as marketing messages based on various health benefits of tea consumption.

A US study suggests that green tea may reduce LDL, or "bad" cholesterol by a few points. It shows that green tea catechins, taken in a capsule or drunk in the form of tea, may trim 5 to 6 points more from people's total cholesterol and "bad" LDL cholesterol levels. Brewed green tea was more effective than capsules, though the benefits overall were fairly small. The drink did not show any effectiveness in boosting "good" HDL cholesterol, or cut triglycerides, another type of blood fat. The trials that lasted between three weeks and six months involved over 1400 adults who were randomly assigned to either use green tea every day, as a beverage or capsule, or be part of "control" groups that used placebo capsules or liquids.

A Netherlands-based non-governmental group claims that Unilever has not stopped abuses of tea workers, despite committing to source its teas sustainably. Center for Research on Multinational Corporations alleges that Unilever, which manufactures the famous Lipton brand, has failed to stop abuses of workers on Unilever’s Kenyan estate, including sexual harassment and poor housing conditions. It also purchases tea from estates in India where workers are kept permanently on rolling short-term contracts, denying them health and pension benefits, and are often exposed to dangerous pesticides while working. Unilever calls the claims unsubstantiated and relies on independent audits of its tea plantations by the Rainforest Alliance, a US-based nonprofit environmental group.

Iced tea has been gaining ground in quick-service restaurants, with many big-name eateries expanding their offer of sweet tea. According to the US Tea Association, chains like McDonald's and Subway are embracing tea like never before. In fact, tea sales have grown by 3 to 5 percent in foodservice and tea accounted for 15% of restaurant beverage menu items during the fourth quarter of 2010, making it the third most-available type of nonalcoholic beverage. Market research firm Mintel estimates that 39 percent of restaurant-goers drink cold tea, about twice as many that have hot tea. Restaurants are increasingly using their tea offer to differentiate themselves and create a unique experience.

The cultivation of redbush, also known as rooibos, is being threatened by climate change in its native country of the Republic of South Africa. According to the Intergovernmental Panel on Climate Change, the region is particularly susceptible to changes in climate and its redbush tea industry will be severely affected by extreme weather such as droughts and floods. Local farmers say that if rainfall is delayed even by a month, output may plunge by as much as 50%. In fact, farmers are already struggling to keep crops alive amid droughts and erratic rainfall. One solution that experts suggest is developing of the wild redbush plant, which is more heat resistant and forgiving. Rooibos tea grows exclusively in the region of South Africa and all attempts to cultivate the bush in other, more forgiving landscapes have failed so far.

Holiday weekend was very busy for online retailers, with both Friday and Monday sales exceeding last year's numbers. According to preliminary data, Black Friday saw a 24 percent increase in online sales with a total value of $816 million. E-commerce sales on Cyber Monday were up 33 percent over 2010, and up 29% over Black Friday. Mobile devices accounted for 10% of online visits this year, up from 4% the previous year, and mobile sales accounted for 6.6% of the total, versus 2.3% in 2010. According to IBM, the average order amount was slightly up this year from $193.24 to $198.26. An increasing number of retailers lured shoppers with steep discounts and free shipping offers. Exact figures are expected to become available in the coming days.

Adagio Teas, a manufacturer of gourmet teas, has opened its third location in the Chicago area. A year after launching its brick-and-mortar tea business with two stores in Naperville and Skokie, the online retailer brings the concept of "playground for tea" to downtown Chicago. The store features over seventy kinds of tea and herbal tisanes from countries like China, India, South Africa, New Zealand, Egypt and Japan. A long bar table extends the length of the store, encouraging customers to experience the teas, interacting with Adagio’s experts and each other. According to the company, the goal was to create a setting where customers would feel comfortable having fun experimenting with tea and creating something uniquely theirs.

During the inauguration of the three-day World Tea Science Congress in Assam, India, the chief minister of Assam declared tea as the State Drink. According to him, this would help increase its value and promote Assam tea as a brand. The region of Assam represents 51% of India's tea output and 13% of global production. Local industry employs over 500,000 permanent workers and approximately the same amount of seasonal staff. Also speaking at the event was former president of India, Dr APJ Abdul Kalam, who suggested that the next step would be to declare tea the national drink of India. He also recommended to diversify into value-added areas, such as medicinal tea, organic tea and flavored tea in order to grow the industry.

German researchers have found that a flavanoid, or one of the active ingredients in green tea, inhibits hepatitis C virus from entering the liver, following a transplant. For patients receiving transplants due to complication from hepatitis C, the antioxidant called epigallocatechin-3-gallate, or EGCG, may prevent the reinfection of the healthy donor liver. The World Health Organization estimates that up to 170 million people worldwide are affected by hepatitis C, which is one of the most common causes of chronic liver disease and a primary indication for liver transplantation. The antioxidant EGCG was found to possess antiviral properties and inhibit the rapid spread of hepatitis C.

Zealong Tea, New Zealand's only oolong tea grower and exporter, is looking at new ways to create awareness and promote the brand. Zealong Tea relies on tourism to spread the message across Asia-Pacific region. The manufacturer organizes tea walks, as well as tea ceremonies and tastings at its plantation in Waikato, New Zealand. Around 500 tourists visit the 50ha plantation each week. Also, the company is promoting itself abroad and has established ties with TeeGschwendner, Germany's biggest tea retailer, thanks to a sale of 200kg of its oolong tea. Zealong Tea has also penetrated Japanese and American markets, although both remain tough to break into. Owners plan to invest a further $10 million in the plantation over the next years to add a larger tea house and luxury accommodation.

A CNN poll established a list of world's most delicious drinks with tea being mentioned several times in the survey. Tea, the world's second-most widely consumed beverage, was ranked fifth overall in the poll. The main reason was how the drink is consumed around the world, in a diversity of forms and flavors specific to each region. Other honorable mentions include bubble tea from Taiwan, a concoction made of tea, milk, fruit juice and chewy balls, and thai iced tea, comprised of black tea, condensed milk and spices. While not technically tea, South American herbal tea yerba mate claimed the 35th spot. Water was crowned as the most delicious drink, followed by Coca-Cola, coffee and beer.

Dilmah, the world's largest purveyor of single origin Ceylon tea, is moving forward with plans to expand its leisure brand. Ceylon Tea Trails, Dilmah's most lucrative sector, will see the addition of a fifth $2.5 million bungalow and a $25 million beach resort in 2013. The company, which already owns several luxury bungalows in Sri Lanka's tea-growing districts, plans to add further 5 or 6 boutique resorts in the coming years. Dilmah is also looking to increase capacity of its tea packaging facility in Peliyagoda. It will invest approximately $20 million to expand production volume and support increased demand for Dilmah tea. The company hopes these measures will allow it to reach a turnover of $200 million.