Developing Trends in the North American Market Joseph P. Simrany, President Tea Association of the...
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Transcript of Developing Trends in the North American Market Joseph P. Simrany, President Tea Association of the...
Developing TrendsDeveloping Trends in the in the
North American Market North American Market
Joseph P. Simrany, PresidentJoseph P. Simrany, PresidentTea Association of the USATea Association of the USA
Colombo International Tea ConventionColombo International Tea ConventionAugust 29August 29thth-September 1-September 1stst , 2007 , 2007
22
Introductory CommentsIntroductory Comments
Grateful to the Conference Organizers for Grateful to the Conference Organizers for the invitation to be herethe invitation to be here
Conference Chairman – Mr. Michael de Conference Chairman – Mr. Michael de Zoysa; Chairman of the Sri Lanka Tea Zoysa; Chairman of the Sri Lanka Tea Board – Mr. Lalith Hettiarachchi; and the Board – Mr. Lalith Hettiarachchi; and the Chairman of the Colombo Tea Traders Chairman of the Colombo Tea Traders Association – Mr. Tyeab AkbarallyAssociation – Mr. Tyeab Akbarally
Working together all things are possibleWorking together all things are possible
33
Sri Lanka is one of the most Sri Lanka is one of the most beautiful Places on Earth!beautiful Places on Earth!
The USA is learning The USA is learning to appreciate to appreciate Specialty TeaSpecialty Tea
Sri Lanka Needs Sri Lanka Needs More consumer More consumer awarenessawareness
More work needs More work needs to be doneto be done
Let’s make it Let’s make it happen!happen!
44
Objectives of this PresentationObjectives of this Presentation
Review Tea Trends in the North Review Tea Trends in the North American MarketAmerican Market
Explore strategies that Sri Lanka Explore strategies that Sri Lanka could employ to increase the could employ to increase the popularity of their tea in this marketpopularity of their tea in this market
55
Tea has Diverse AppealTea has Diverse Appeal
Tea appeals to Tea appeals to many people in many people in many different many different waysways
Tea is perhaps the Tea is perhaps the most versatile most versatile beverage on the beverage on the planetplanet
66
The North American Tea Market is The North American Tea Market is Amongst the Most Diverse in the Amongst the Most Diverse in the
WorldWorld
85% of Tea in the USA is consumed 85% of Tea in the USA is consumed over iceover ice
As a result of that as well as the As a result of that as well as the popularity of instant tea and herbal popularity of instant tea and herbal tea, it is generally assumed that USA tea, it is generally assumed that USA tea consumers do not have an tea consumers do not have an appreciation for “real” teaappreciation for “real” tea
77
Tea Imports into the USA (Kilos)Tea Imports into the USA (Kilos)
1996-19981996-1998 2004-20062004-2006 % Inc/ % Inc/ decdec
Black Black TeaTea
85,875,28885,875,288 87,572,70087,572,700 1.91.9
Green Green TeaTea
5,424,2075,424,207 14,795,40014,795,400 172.8172.8
Total TeaTotal Tea 91,299,49591,299,495 102,368.2102,368.2 12.112.1
88
Tea Imports into the USA in 2006Tea Imports into the USA in 2006
The USA imported 240 million The USA imported 240 million pounds of tea or 108 million Kg.pounds of tea or 108 million Kg.
83% of which was Black with most of 83% of which was Black with most of the remainder Green Teathe remainder Green Tea
Total tea imports were up over 7.5% Total tea imports were up over 7.5% over the fullyear 2005over the fullyear 2005
99
Size of the Tea Market in U.S.Size of the Tea Market in U.S.
1990 $Value by 1990 $Value by TypeType
Trad. $0.87 BillionTrad. $0.87 Billion RTD 0.20 “RTD 0.20 “ Fd Srv 0.50 “Fd Srv 0.50 “ Special 0.27Special 0.27 Total $1.84 BillionTotal $1.84 Billion
• Green $20 MillionGreen $20 Million
2006 $Value by 2006 $Value by TypeType
Trad. $1.90Trad. $1.90 RTD 2.65RTD 2.65 Fd Srv 1.0Fd Srv 1.0 Special .95Special .95 Total $6.50 BillionTotal $6.50 Billion
–Green $200+ Green $200+ MillionMillion
1010
Consumer Issues Driving Consumer Issues Driving TrendsTrends
Growing number of scientific studies Growing number of scientific studies suggesting tea plays a role in the inhibition of suggesting tea plays a role in the inhibition of many chronic human diseasesmany chronic human diseases
Widespread acceptance by the scientific and Widespread acceptance by the scientific and medical communities that tea is a healthy medical communities that tea is a healthy beveragebeverage
Widespread awareness by the media that tea Widespread awareness by the media that tea is proven to be a healthy beverageis proven to be a healthy beverage
Tea enjoys positive imagery regarding its Tea enjoys positive imagery regarding its contributions to health versus alternative contributions to health versus alternative beveragesbeverages
1111
Tea & Health StrategyTea & Health Strategy
Sales results from focusing on the Sales results from focusing on the health benefits of tea exceeded our health benefits of tea exceeded our most optimistic expectationsmost optimistic expectations
Consumers already believe tea is Consumers already believe tea is healthy and their perceptions are healthy and their perceptions are reinforced by scientific studiesreinforced by scientific studies
Long term trend in the USA is to eat Long term trend in the USA is to eat and drink healthier foods & and drink healthier foods & beveragesbeverages
1212
Green Tea Sales Prove Health Green Tea Sales Prove Health Strategy is WorkingStrategy is Working
Green Tea has moved from 3% of Green Tea has moved from 3% of total imports 15 years ago to over total imports 15 years ago to over 17% of total imports in 200617% of total imports in 2006
This is an increase of over 500%This is an increase of over 500% The increase in popularity is almost The increase in popularity is almost
entirely due to the association with entirely due to the association with health benefitshealth benefits
1313
Black Tea Will Benefit NextBlack Tea Will Benefit Next
As more scientific information As more scientific information emerges regarding the health emerges regarding the health benefits of Black Tea, it is entirely benefits of Black Tea, it is entirely possible that it too will surge in possible that it too will surge in popularitypopularity
1414
Future Health PlansFuture Health Plans
The Tea Council of the USA remains The Tea Council of the USA remains committed to the health messagecommitted to the health message
Another Scientific Symposium is planned Another Scientific Symposium is planned for September 18, 2007 in Washington DCfor September 18, 2007 in Washington DC
The Tea Council of the USA is grateful to The Tea Council of the USA is grateful to its Producing Country members (India, its Producing Country members (India, Kenya, Malawi, & Sri Lanka) whose Kenya, Malawi, & Sri Lanka) whose generous contributions make these kinds generous contributions make these kinds of events possibleof events possible
1515
Other Consumer Trends Driving the Other Consumer Trends Driving the Popularity of Tea in the USAPopularity of Tea in the USA
A desire for more convenienceA desire for more convenience Ease of preparationEase of preparation Ready availabilityReady availability
1616
Third Major Trend Driving the Third Major Trend Driving the Increased Popularity of TeaIncreased Popularity of Tea
Growing appeal of Specialty TeaGrowing appeal of Specialty Tea Sri Lanka has a tremendous Sri Lanka has a tremendous
opportunity in this areaopportunity in this area This is the most profitable segment This is the most profitable segment
of the Tea Industryof the Tea Industry
1717
Forth Trend Responsible for the Forth Trend Responsible for the Popularity of Tea in the USAPopularity of Tea in the USA
Promise of high profitability is Promise of high profitability is drawing thousands of entrepreneurs drawing thousands of entrepreneurs to sell various forms of teato sell various forms of tea
The number of tea rooms has grown The number of tea rooms has grown from 200 to 2200 over the last 10 from 200 to 2200 over the last 10 years in Americayears in America
Thousands of Coffee Houses have Thousands of Coffee Houses have added Specialty Teaadded Specialty Tea
1818
USA Market is ExcitingUSA Market is Exciting
Market is Vibrant & one of the few in Market is Vibrant & one of the few in the world where tea sales are the world where tea sales are growinggrowing
The market forces in place are strong The market forces in place are strong and long termand long term
The health message will drive The health message will drive increased consumption for many increased consumption for many years to comeyears to come
1919
Tea is Finding its Way into Many Tea is Finding its Way into Many Other ProductsOther Products
CosmeticsCosmetics MedicinesMedicines Blends with JuiceBlends with Juice Food PreparationFood Preparation Pet FoodsPet Foods Candies & gumsCandies & gums ToothpasteToothpaste Alcoholic Alcoholic
BeveragesBeverages
2020
Sri Lanka Has Tremendous Tea Sri Lanka Has Tremendous Tea PotentialPotential
It is only a matter It is only a matter of time before Sri of time before Sri Lanka realizes its Lanka realizes its true tea potential true tea potential in the USA & the in the USA & the rest of the worldrest of the world
Sri Lanka produces Sri Lanka produces some of the best some of the best tasting tea in the tasting tea in the world.world.
2121
Sri Lanka Has Tremendous Tea Sri Lanka Has Tremendous Tea PotentialPotential
A wide variety of high A wide variety of high quality specialty teasquality specialty teas
Awareness in the Awareness in the North American North American market is low and market is low and needs to be improvedneeds to be improved
There are many There are many relatively inexpensive relatively inexpensive ways to improve ways to improve awarenessawareness
2222
Sri Lanka has Tremendous Sri Lanka has Tremendous PotentialPotential
Increase Trade Media CoverageIncrease Trade Media Coverage• Hire a domestic PR AgencyHire a domestic PR Agency• Coordinate programs with targeted Coordinate programs with targeted
consuming county tea councilsconsuming county tea councils• Accent the positiveAccent the positive
Capitalize on the rich heritage and Capitalize on the rich heritage and romance of tea from Sri Lankaromance of tea from Sri Lanka
2323
Strategies for SuccessStrategies for Success
Make your website more user-Make your website more user-friendlyfriendly
Create links to all consuming Create links to all consuming countriescountries
Encourage foreign tea councils to Encourage foreign tea councils to disseminate you merchandising disseminate you merchandising materials to their membershipmaterials to their membership
Attend International Trade ShowsAttend International Trade Shows
2424
Strategies for SuccessStrategies for Success
Create an electronic newsletter that Create an electronic newsletter that targets key buyers regularlytargets key buyers regularly
Create an interactive segment of Create an interactive segment of your website to entertain and your website to entertain and educate visitorseducate visitors
Hire dedicated professionals Hire dedicated professionals responsible for country performance responsible for country performance and give them the tools to make it and give them the tools to make it happenhappen
2525
Strategies for SuccessStrategies for Success
Assume a leadership role in industry Assume a leadership role in industry wide initiatives such as:wide initiatives such as:• Global Pesticide InitiativeGlobal Pesticide Initiative• Adoption of a Universal Code of ConductAdoption of a Universal Code of Conduct• Elimination of inferior teas from the Elimination of inferior teas from the
supply chainsupply chain• Share your Knowledge through Seminars Share your Knowledge through Seminars
and Tea Classesand Tea Classes• Contribute to Scientific SymposiaContribute to Scientific Symposia
2626
Strategies for SuccessStrategies for Success
Talk regularly with your key Talk regularly with your key customers to ensure that you are customers to ensure that you are aware of their ongoing needs.aware of their ongoing needs.
2727
Sri Lanka Has Tremendous Tea Sri Lanka Has Tremendous Tea PotentialPotential
The Tea Association The Tea Association of the USA and each of the USA and each of its divisions stand of its divisions stand ready to assist Sri ready to assist Sri Lanka to realize this Lanka to realize this potentialpotential
Thank you for the Thank you for the opportunity to opportunity to spend some time spend some time with you.with you.
2828
Sincere Gratitude to the OrganizersSincere Gratitude to the Organizers
It has been a sincere pleasure to It has been a sincere pleasure to spend some time with you.spend some time with you.
Coming back to Sri Lanka is like Coming back to Sri Lanka is like coming back to a second home.coming back to a second home.
Thank you for your kind hospitality!Thank you for your kind hospitality!