MARKET PARTICIPANTS COME TOGETHER FOR UCTIE 2014 TEA MASTERS CUP: IN THE MOOD FOR TEA FOR THE 100TH TIME, THE CUP OF EXELLENCE SELECT THE BEST COFFEE THE BASIC SITUATION OF CHINESE TEA INDUSTRY
15–17 MARCH 2016 — MOSCOW
№ 1(118)’2015
11-13 SEPTEMBER 2015
MOSCOW – SOKOLNIKI
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contents
№ 1’2015
20 Waking Up to a New Aroma: CafJ Culture in the Asia-Pacific Region
22 Current Market Situation and Medium Term Outlook
38
Russian Coffee Market to 2030: Possible Development Scenarios
20
Waking up to a New Aroma: CafJ Culture in the Asia-Pacific Region
HORECA
22
Current Market Situation and Medium Term Outlook
38
The First Tea Masters Cup in the Ukraine
30
The Basic Situation of Chinese Tea Industry
40
In Russia Was Announced the Winner of Ultimate Barista Challenge
40
Korean Coffee Shops Moving into China Challenge Starbucks
40
Silvio Leite Becomes the New President of BSCA
42
For the 100th Time, the Cup of Excellence Selects the Best Coffee
WHO IS WHO?
44
India that Tastes Like Tea
OPTIMA Consumer up to 1,500 Portion packs/min
48 ADVERTISER INDEX
HISTORY 16
India that Tastes Like Tea
ECONOMICS
4 NEWS REVIEW&STATISTICS
44
In Russia Was Announced the Winner of Ultimate Barista Challenge
EDITORIAL
3 CALENDAR OF EVENTS
The Tea Business of Wissotsky & Co.: the Past and the Present
40
The first Tea Masters Cup in the Ukraine
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The Tea Business of Wissotzky & Co.: the Past and the Present
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EDITORIAL
Founder ZAO INTERNATIONAL TEA HOUSE
№ 1‘2015
is promising to be an interesting and quite challenging year for the coffee and tea industry. We are witnessing a period of low oil prices; this will definitely have an impact on the world economy, and most experts are busy trying to anticipate the coming changes. Without going into too much detail, we can note that there is a broad consensus among experts: the economies of developed countries will grow faster, while countries such as China, Brazil and Russia will see a slowdown (the falling oil prices will hit Russia especially hard). Depending on their current role in the world of coffee and tea (China is a major producer and consumer of green tea, and at the same time – the most promising market for coffee in the last few years; Brazil is the largest coffee producer in the world and also a major coffee market; Russia is the world’s biggest tea importer and also an important market for coffee), each of these three countries will have to face the coming challenges in one way or another. As the year progresses, we will keep a close eye on these markets and will try to make sure that our readers stay informed about all major changes. As soon as in May of this year, we are expecting World Tea Summit, a major tea industry conference, to take place in Turkey; the participants will pay close attention to the market dynamics in the region (Eastern Europe, Russia/CIS, Middle East). I am sure that the coming market developments will be a hot topic at any major industry gathering this year (Upakovka/Upak Ilatia, ProdExpo, Africa Fine Coffee, India International Tea & Coffee Expo, IFFF, Cafй Asia & ICT Expo, World of Coffee etc.). 2015 will also see the continuing development of the Tea Masters Cup (TMC), an international competition of tea industry professionals. National qualifying rounds have already taken place in Belarus, Latvia, Russia, Ukraine, and are soon to be held in the Czech Republic, Italy, South Korea and Turkey. It is expected that the first International Tea Masters Cup will take place as part of the World Tea Summit. The participants will have an opportunity not only to demonstrate their skills, but also to become familiar with the Turkish tea industry. This project is beginning to attract the attention of tea experts in many countries, and because of this, I am inviting everyone to attend the first International TMC: you will be able to see for yourself the exceptionally high caliber of the competition, as well as take part in discussing the future of this exciting new tea industry event. You can always get the latest news about the TMC at the event’s website, www.teamasterscup.com.
Publisher ZAO INTERNATIONAL TEA HOUSE
EDITORIAL
2015
Respectfully, Editor-in-Chief
Ramaz Chanturiya
Editor-in-Chief RAMAZ CHANTURIYA Deputy Editor-in-Chief SVETLANA BELIKOVA Computer-Aided Design VALENTINA GUSKOVA Advertising Director JULIA CHANTURIYA Advertising Manager YANA AFTANDILOVA Promotion Managerr JULIA PRAVDOLYUBOVA
THE EDITORIAL BOARD Chairman of the Editorial Board R.O. CHANTURIYA, General Director, Rusteacoffee Association
Members of the Editorial Board S.G. BELIKOVA, Ph.D. Deputy Editor-in-Chief, Coffee&Tea in Russia Editorial Board Secretary
A.V. ELSON, General Director, KLD Coffee Importers
S.V. KASIANENKO, Chairman, Board of Directors, Orimi Trade
A. MALCHIC, Chief Executive Officer, Montana Kofe
R.D. PANZHAVA, Georgian Tea Producers Association
M. PEYRIS, International Tea Committee
D. SHUMAKOV, Head Judge and Member of the Tea Masters Cup Organizing Committee
I.A. SOKOLOV, Ph.D. in History
V.A. TUTELIAN, Director, Institute of Nutrition of the Russian Academy of Medical Sciences, Member,Russian Academy of Medical Sciences
Editorial Address: Russia, 123060, Moscow, Berzarina str., 36, building 2, of. 214 tel./fax: +7 495 935-87-07 Email: magazine@coffeetea.ru, www.coffeetea.ru Printed in APC Petrovsky Park LLC
Distributed worldwide among coffee and tea producers,wholesale companies, shops, and restaurants. Printed in Russia. According to the registration certificate of mass media ПИ №777213 from 30th January, 2001. Reprinting of materials is allowed only by permission of the magazine. The reference to the magazine «Coffee and tea in Russia» is obligatory. The editors don't bear any responsibility for reliability of data placed in advertising blocks or announcements. The editor's point of view may not coincide with the author's point of view. All provided materials will not be returned or reviewed. Coffee & Tea International magazine has been included in the VINITI (All Russian Institute of Scientific and Technical Information of the Academy of Sciences Vserossiisky Institut Nauchnoi i Tekhnicheskoi Informatsii (VINITI)) list of synopsis journals and the institute's data base. Information about the magazine will be annually published in the «Ulrich's Periodicals Directory», international handbook of periodic magazines and ongoing publications. Coffee & Tea International is an appendix to the Coffee & Tea in Russia magazine.
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COFFEE&TEA INTERNATIONAL # 1/2015
– advertising materials
CALENDAR OF EVENTS January – September 2015
All materials are provided by support of WWW.COFFEETEA.RU
27–30 January 2015
27 February – 1 March 2015
30 March – 2 April 2015
UPAKOVKA/UPAK ITALIA
RUSSIAN BARISTA DAYS
HOTELEX Country: China City: Shanghai Company Page: www.hotelex.cn
9–12 April 2015
COFFEE EXPO SEOUL
Country: Russia City: Moscow Company Page: www.upakowka.ru
Country: Russia City: Moscow Company Page: www.baristabattle.ru
Country: South Korea City: Seoul Company Page: www.coffeexpo.info
3–5 March 2015
22–24 April 2015
IFFF MOSCOW
MODERN BAKERY Country: Russia City: Moscow Company Page: www.modernbakery-moscow.com
9–13 February 2015 20–24 May 2015
PRODEXPO
WORLD OF COFFEE & TEA Country: Russia City: Moscow Company Page: www.fastfoodexpo.ru
19–21 March 2015
CAFE ASIA & ICT EXPO Country: Russia City: Moscow Company Page: www.prod-expo.ru
Country: Singapore City: Singapore Company Page: www.cafeasia.com.sg
Country: Thailand City: Bangkok Company Page: www.world-of-coffeeandtea.com
4–6 June 2015
CHINA INTERNATIONAL COFFEE INDUSTRY EXPO Country: China City: Guangzhou Company Page: www.coffeexpo.org
12–14 February 2015
24–27 марта 2015
16–18 June 2015
AFRICA FINE COFFEE
EXPOHORECA
SCAE WORLD OF COFFEE
Country: Kenya City: Nayrobi Company Page: www.eafca.org
Country: Sweden City: Gothenburg Company Page: www.worldofcoffee-nordic.com
26 February – 1 March 2015
11–13 September 2015
INDIA INTERNATIONAL TEA & COFFEE EXPO
TASTY FEST COFFEE & TEA
Country: India City: Kalkutta Company Page: www.teacoffeeexpo.in
Country: Russia City: Moscow Company Page: www.farexpo.ru
Country: Russia City: Moscow Company Page: www.coffeeteafest.ru
— An indication of exhibitions in which Coffee and Tea International' and 'Coffee and Tea in Russia' magazines take part.
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MARKET PARTICIPANTS COME TOGETHER FOR
UCTIE 2014 he 5th Moscow International Coffee Forum and the 4th Moscow International Tea Symposium, which are held under the UCTIE umbrella, starting last year, offered their guests a busy work schedule. Russian and foreign specialists conducted more than 30 seminars, presentations and training sessions, in addition to degustations of plantation-grown coffee and tea varieties. All UCTIE events are focused on various stages of the production process, from cultivation to the filling of the con-
T
sumer’s cup, aiming to disseminate as much useful information as possible. This year’s schedule included a large number of seminars on evaluating coffee quality and on various coffee-roasting technologies. Representatives from KLD Coffee Importers taught visitors about common defects in green coffee beans and held several open cupping sessions featuring the best coffee varieties from many corners of the world. Another no table presenter was Asli Yaman, Chief Roaster of the Soyuz Coffee Roasting Company; she shared her professional expertise on several roasting profiles. She also taught a SCAE course on the foun-
4 COFFEE&TEA INTERNATIONAL # 1/2015
EA.RU FFEET O C D E W.UNIT T AT WW O REPOR T O H P L L SEE FU
The United Coffee & Tea Industry Event (UCTIE), a major convention for coffee and tea professionals in the Russian Federation and other CIS countries, took place in Moscow on September 15-16, 2014. The UCTIE is a joint coffee-tea industry exhibition and conference, covering all aspects of the production process, from beans and leaves to the cup. This year, the event welcomed around 60 Russian and foreign companies as both partners and exhibitors, plus around 2,000 industry professionals from more than 20 countries as visitors.
dations of sensory evaluation of coffee. Many guests took part in an interactive discussion of roasting equipment, facilitated by a representative from Bhhler, who not only described various roaster designs but also helped participants understand the basics of coffee roasting. One of the highlights of the event was a seminar that surveyed the coffee-growing regions of Brazil, a country that has been actively developing its specialty coffee segment. Representatives of the Brazil Specialty Coffee Association (BSCA) brought the best samples from the latest coffee harvest exclusively for the
5
UCTIE, and held several days of cupping sessions at the Taste Lab. Another interesting item was an educational session prepared and conducted for the UCTIE guests by representatives from Paulig. Certified professional training experts Emmi Kinnunen and Ulla Suoraniemi walked the audience through every stage of the production process, from roasting to brewing, focusing on creating the ideal cup of drip coffee. All session participants received certificates of completion. The tea side of the event was no less engaging and illuminating. It opened with a discussion about the new drivers of the tea market.
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EA.RU FFEET O C D E W.UNIT T AT WW O REPOR T O H P L L SEE FU
One of those drivers is gourmet tea; Denis Shumakov conducted a seminar that focused on creative ways of serving such teas, paying special attention to puerh tea. Vladimir Pankov, director-coordinator of the Puerh Tea Institute, introduced different varieties and flavors of puerh by region, as well as The Library of Puerh, an innovative product for tea consumers; he also shared with the audience a series of marketing steps for promoting this unique tea. At any time of day, visitors to the Taste Lab had an opportunity to sample unique tea varieties from Vietnam, Indonesia, Laos, Republic of Georgia, Tanzania, as well as different varieties of puerh tea. But the tea itself was not the only product showcased at the UCTIE. Kai Wulff, General Sales Manager for Glatfelter, told the audience about the ecological properties of filter paper used for tea packaging. Representatives from the China Chamber of Commerce for Import and Export of
Foodstuffs (CFNA) sponsored a meeting of Russian and Chinese tea professionals aimed at stimulating discussions on such topics as bilateral trade, tea market development, etc. There was an opportunity to get familiar with the latest analytical research data on the coffee and tea market, presented by Nielsen; Marija Milasevic from Euromonitor International unveiled a coffee market development forecast prepared exclusively for the UCTIE (see her article on page 16–19). In addition to traditional formats – seminars and lectures – the UCTIE hosted a variety of other events and competitions. At any time during the event, guests could visit the Roasting Factory, a special area where they could roast coffee according to their chosen roasting profile, get valuable advice from experts and observe roasting equipment in action. Representatives from Vollers held a coffee bean bag stacking competition, a timed race that tested par-
ticipants’ strength and dexterity. Among other event highlights: the Russian qualifying finals for the Ultimate Barista Challenge, the finals for the 2nd National Tea Masters Cup, as well as the Cezve/Ibrik Championsip, a Turkish coffee brewing competition. The traditional evening reception featured the presentation ofthe “Person of the Year” awards in the coffee and tea industry, given by the Coffee and Tea in Russia magazine. Tatiana Lukhminskaya (Gourmet Style) became the Coffee Person of the Year; the tea title went to Denis Shumakov (Turquoise Tea). The UCTIE was sponsored by the Coffee and Tea in Russia / Coffee & Tea International trade publications and the Rusteacoffee Association. The organizing committee has already started planning the 2016 UCTIE, which will feature coffee and tea specialists from all over the world and a multitude of new and exciting events.
THE ORGANIZING COMMITTEE OF UCTIE EXPRESSES GRATITUDE TO: OFFICIAL PARTNERS
OFFICIAL COFFEE
OFFICIAL TEA
TECHNICAL PARTNERS
WITH THE SUPPORT OF
PROGRAM PARTNERS
PARTNERS OF ROASTING FACTORY
The Organizing Committee is particularly grateful to the Institute of Hospitality and Tourism RUDN represented by Deputy Director Tatiana Vladimirovna Maksimenkova for organizing help of studentsvolunteers during all events of UCTIE.
7
Aliona Velichko
Tea Masters Cup: In the mood for tea
The Tea Championship is like a child who has just turned one: it has gotten stronger and has gained a lot of weight, both within the tea community and outside of it. Of course, being a toddler, the Championship isn’t too secure on its feet yet, and has had a few tumbles; but every time the wise and caring judges, like loving parents, managed to save it from getting hurt in unfamiliar surroundings. And we are all starting to realize that this child is destined to grow and become something good and important – a real, “grown-up” industry-wide competition.
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CHALLENGING THE MASTERS The goal of the competition was to determine winners in the following three categories: • Tea Preparation • Tea Presentation • Tea Degustation The final competition of the National Tea Championship gathered tea professionals from various regions of the country. Each one of them had rich experience in the world of tea – preparation, presentation or testing – and they also embodied the experience of the communities that nurtured, supported and enriched them. Their main goal was to share their expertise and to learn what they could from their colleagues. Longer careers mean
greater experience, of course; but the length of a career didn’t figure prominently in selecting contestants or in judging their performance. There were people with ten years of experience who did not perform too well; on the other hand, there were those who had started their careers in the industry just six months earlier, but fared much better. Another thing that did not matter to judges is whether a competitor had already won in one or more other categories during the qualifying rounds:
tivated the audience constantly. The contestants pushed boundaries, leaving behind the conventional and the familiar, breathing new life into tea, demonstrating their unique individual approaches. The challenge was to use any method of the contestant’s choice to prepare two teas in 15 minutes: one selected by the contestant and one from a list announced by the judges. During the preparation
another and then into glasses that were prefilled with smoke from burning herbs – a real magic show! The second place went to the beautiful Natalia Lomaeva from Ekaterinburg: the judges were impressed with her elegant presentation, a carefully selected color palette and, of course, the wonderful taste of her tea. After the competition ended,
NATIONAL WINNERS OF TEA MASTERS CUP
Vladislav Lebedev, Category «Tea Brewing»
Natalya Lomaeva, Category «Tea Brewing»
each participant stepped into the ring as if it were his or her first and only chance to win. DAY ONE Seven contestants battled for the award in the Tea Preparation category: Anna Pleshakova (Chajnaja Obitel'), Ustin’ya Kosterkina (Chajnaja Vysota), Diana Belitskaya (Chajnyj Labirint), Nikita Osokin (Chajnaja Imperija), Natalia Lomaeva (Chaism.pro), Evgenia Yarchenko (Zheleznyj Feniks), Vladislav Lebedev (Makao Club). In the recent years, the art of brewing tea in Russia has been greatly inspired and informed by the Chinese tradition. Its influence was evident everywhere during the competition, and its grace and beauty cap-
Darya Mikheeva, Category «Tea Set»
process, the contestants answered questions from the host of the competition, explaining the steps they were taking and paying special attention to any unique features and critical details. Each contestant managed to captivate the audience with a unique and personal approach to preparing tea; but the most exciting performance was by Vladislav Lebedev (who ended up winning the competition), a professional barista from Tomsk. He was able to combine traditional techniques with professional barista-style “tricks” for handling glassware and teapots. Steaming, bubbling water magically poured from one pot precisely into
Anna Pleshakova, Category «Tea Tasting»
the judges had a brief conference and decided that Vladislav and Natalia deserved to share the first place, because each of them demonstrated a unique expertise that could not readily be compared to the other’s. This means that both of them will represent Russia at international competitions in the Tea Preparation category. The third place went to Ustin’ya Kosterkina, who impressed the judges by an unusual pairing of puerh tea with Crimean truffle. Ustin’ya’s passion is the traditional Russian glass holders: she has a
9
whole collection of them, and she brought a portion of it to show the judges, using the tops of teapots as glasses. DAY TWO While the first day could accommodate competitions in only a single category, the second day brought the Tea Cup contestants together to compete in two categories.
The most delicious category – Tea Presentation – came first. Here, the victory trumpet sounded for Daria Mikheeva (Chaism.pro). One of the judges, Sergei Kosheverov, noted after Daria’s performance, “As soon as Daria began her presentation, I knew that she wouldn’t settle for anything but the first place”. Daria’s style can be described as subtly Oriental, exquisite and disciplined. She managed to use only two colors for all the elements of her presentation: black and white. The judges delighted in flavorful tea, cleansing their palates between tastings with bites of fruits and nuts served on food picks. In the Tea Degustation category, there were six contestants, perfectly gender-balanced: three men and three women. The competition consisted of two stages: during the first stage, the contestants had to memorize taste and flavor characteristics of ten tea varieties (8
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Taiwanese oolongs and 2 Darjeelings); during the second stage, the task was to identify the varieties of five out of those ten teas selected by the judges. The number of correct responses and the speed of identification both counted towards victory. The first place went to Anna Pleshakova
(Chajnaja Obitel', Perm), who correctly identified 3 out of 5 tea varieties. In the past, the winners were typically those who had answered first; but not this time! Although Anna was the fourth out of six to give her answer, she beat others in terms of the number of correctly identified varieties, scoring just a single point above Evgeni Roldugin (Chajnaja Karta) and Natalia Lomaeva (Chaism.pro). The difference between the first and the third place was a mere 9 seconds! This proximity kept the spectators in suspense until the very end, making this category the most competitive and exciting. THE JURY The Magnificent Five, a jury of five judges, consisted of accomplished professionals and was chaired by Denis Shumakov. The sheer number and variety of teas and desserts made the judges’ task difficult, but they handled it well. Most of the judges had participated in the qualifying rounds, and already knew many of the
contestants. To match the diversity of strategies employed by the contestants and the multitude of tea varieties, each judge brought his or her unique approach to the task. The wisdom of the jury was the product of a truly synergistic blend: the discerning palate of wine sommelier Tatiana Selivanova, the scientific approach and knowledge of Chinese tea of
THE ORGANIZING COMMITTEE WISHES TO THANK THE FOLLOWING SPONSORS: GENERAL SPONSOR
TECHNICAL SPONSOR
Sergei Kosheverov, the magnanimity and perceptiveness of the true professional David Chanturiya, the uncompromising and rigorous stance of tea expert Pavel Shvedov, the erudition and creativity of Denis Shumakov. THE NEXT CHALLENGE FOR THE VICTORS… In May of 2015, the winners will travel to Turkey to compete in the Tea Masters Cup International, and will have to prove their mastery once again, this time facing contestants from other countries. THE CUP IS AN OPPORTUNITY… … to meet colleagues, to share expertise, to contribute to the worthy cause of promoting the knowledge and appreciation of tea and tea culture. THE CUP IS A CHALLENGE… … and we are grateful to those who have risen to it!
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NEWS
Rosselkhoznadzor supported Russian tea business 1
coffeetea.ru
n 10th November 2014 the supply of some species of regulated products with codes HS TS 0813 and TS 1211 HS resumed to the Russian Federation from the territory of Georgia. As reported by the Association Rusteacoffee this decision is welcomed by tea market partic-
O
ipants. According to them, it can significantly increase the supply of these products in the domestic market, including a segment of the ingredients used to create the popular multitea beverages. In addition, the resumption of this supply allows to balance the prices of raw materials, thus contributing to control rise in prices for finished products.
1 Rosselkhoznadzor — Federal Service for Veterinary and Phytosanitary Surveillance.
thejakartapost.com
Tea production needs boost as growing areas shrink
ith reduced availability of land hampering productivity, tea production in Indonesia, the world’s seventh-largest tea producer, needs to be stimulated, the Agriculture Ministry says. Conversion of land from tea plantations to other uses has reached a high of 2,000 hectares per year in the last five years, resulting in a decline in the country’s tea output to 146,682 tons last year from 156,604 tons in 2010, according to the Ministry.“It is unfortunate that this has happened. Our tea actually has a very good potential,” the Ministry’s spice and herbs director, Azwar Abu Bakar, said recently. Indonesia’s tea has the highest catechin (a natural antioxidant) content in the world. China, India, Kenya, Sri Lanka, Vietnam and Turkey, respectively, ranked first- to the sixthlargest tea producers ahead of Indonesia.The country exported 70,841 tons of tea valued at US$157.5 million in 2013, lower than the 87,100 tons worth $178.5 million recorded in 2010. Gamal Nasir, Director General of Plantations at the Agriculture Ministry, said that the ministry would double the budget to revitalize tea
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plantations in the country, expecting a significant surge in tea production.The ministry had allocated Rp 50 billion ($4.32 million) to revitalize a 3,200 ha of tea plantations in West Java this year, with a target of 147,704 tons in tea output.“We chose West Java because 60 percent of the country’s tea plantations are located in the province. In addition, the province’s tea output is among the best,” Mr. Abu Bakar said. The allocated budget would be for carrying out an intensification program for 1,700 ha of tea plantations and a rehabilitation program for another 1,500 ha of tea plantations, according to Mr. Nasir. The intensification program includes providing fertilizers and experts to help the tea farmers, while the rehabilitation program includes providing new tea seeds as well as fertilizers. The Agriculture Ministry has a total budget of Rp 1.57 trillion to develop plantations of 12 commodities this year, including tea, spices, cacao and coffee, with only 18.89 percent having been disbursed as of July 11.Of the total, Rp 1.2 trillion will be for planting programs and other plantation developing programs, according to Gamal Nasir.
COFFEE&TEA INTERNATIONAL # 1/2015
White cup makes your coffee more intense People who drank from the white mug rated the coffee as more intense and less sweet than when served the same beverage in a blue or transparent cup. New York: Can the colour of the mug influence the taste of your coffee? Yes, say researchers, suggesting that coffee tastes more intense when served in a white cup. The idea for the study came to Australian researcher George Van Doorn who was told by Barista Lavazza, one of the biggest coffee restaurant chains, that “when coffee is consumed from a white, ceramic mug, it tastes more bitter than when drunk from a clear, glass mug”. Van Doorn and his colleagues put the theory to test by offering 36 volunteers coffee drink made with espresso and steamed milk in three different coloured mugs - white, blue and transparent. People who drank from the white mug rated the coffee as more intense and less sweet than when served the same beverage in a blue or transparent cup. ”These results support the view that the colour of the mug should be considered by those serving coffee as it can influence the consumer’s multisensory coffee drinking experience,” Van Doorn pointed out. The authors concluded that colour contrast between the coffee and the white cup offers one explanation for the results: When coffee was perceived as darker it could influence how people found the taste to be stronger. The results of the study were published in the journal Flavour.
khaleejtimes.com
NEWS
America is becoming a nation of tea drinkers washingtonpost.com he U.S. market for tea has more T than quadrupled during the past twenty-plus years — from just under $2 billion in 1990 to just over $10 billion last year. By volume, Americans now drink almost 20 percent more of the beverage than they did in 2000. America's favorite is black tea, which accounts for more than half of all tea consumed in the country, followed by fruit and herbal teas. However, fruit and herbal tea consumption has risen by only 7 percent in the U.S. since 2000, while black tea consumption has fallen by nearly 2.5 percent over the same period.
Meanwhile, green tea, which accounts for just over 11 percent of the tea Americans drink, has been growing much faster: the U.S. downs over 40 percent more than it did in 2000. On the other hand, consumption of fringe and artisanal teas (rooibos, oolong, white tea) has grown by nearly 8,000 percent over the past 10 years and now accounts for roughly 6 percent of U.S. tea consumption. Beverage companies nationwide are throwing billions of dollars into the budding industry. Starbucks has been working to expand its tea offerings ever since it acquired Teavana, a seller of high-end teas, in 2012. Dunkin’ Donuts has referred to iced tea as one of its “key products”. And Unilever, the biggest seller of tea products in the U.S., has doubled down on its market share by introducing new tea offerings, like instant tea K-Cups.
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REVIEW&STATISTICS
RUSSIAN COFFEE MARKET TO
2030:
POSSIBLE DEVELOPMENT SCENARIOS 1
Marija Milasevic, Research Analyst, Euromonitor International
FULL ARTICLE IS AVALUABLE FOR SUBSCRIBERS
Fig. 1
Fig. 2
1 C&TI presents an article version of the presentation by the author at the Moscow
International Coffee Forum (UCTIE 2014, Moscow, Russia, September 15-16, 2014).
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REVIEW&STATISTICS
Fig. 3
Fig. 4
FULL ARTICLE IS AVALUABLE FOR SUBSCRIBERS
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Fig. 8
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REVIEW&STATISTICS
Fig. 10
Fig. 9
FULL ARTICLE IS AVALUABLE FOR SUBSCRIBERS
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REVIEW&STATISTICS
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FULL ARTICLE IS AVALUABLE FOR SUBSCRIBERS
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WAKING UP TO A NEW AROMA: CAFI CULTURE IN THE ASIA-PACIFIC AS REGION 1
Daphne Kasriel-Alexander , Consumers Editor at Euromonitor International
While caf J culture is already established in Japan and Australia, other countries in the AsiaPacific region are just catching up – quickly. Why do they have a penchant for cafJs? And how much are they exactly drinking and spending?
FULL ARTICLE IS AVALUABLE FOR SUBSCRIBERS
1
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daphne.kasriel@euromonitor.com
REVIEW&STATISTICS
CONSUMER EXPENDITURE ON COFFEE, TEA AND COCOA IN THE ASIA-PACIFIC REGION AND AUSTRALASIA: 2009-2013
FULL ARTICLE IS AVALUABLE FOR SUBSCRIBERS
SALES OF COFFEE MACHINES IN AUSTRALASIA: 2008-2013
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ECONOMICS
CURRENT MARKET SITUATION AND MEDIUM TERM OUTLOOK 1
Kaison Chang, Intergovernmental Group on Tea, Secretary
FULL ARTICLE IS AVALUABLE FOR SUBSCRIBERS
1
Twenty-first session of the Intergovernmental Group on Tea, 5 - 7 November 2014, Bandung, Indonesia. The FAO Intergovernmental Group (IGG) on Tea represents a forum for intergovernmental consultation and exchange on trends in production, consumption, trade and prices of tea, including regular appraisal of the global market situation and short term outlook. The Group, under FAO auspices, considers changes in national policies and examines their international effects as pertaining to the current and prospective market situation.
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ECONOMICS
Figure 1
WORLD TEA PRODUCTION
FULL ARTICLE IS AVALUABLE FOR SUBSCRIBERS Figure 2
WORLD TEA EXPORTS
Figure 3
WORLD TEA CONSUMPTION
Figure 4
FAO TEA COMPOSITE PRICE
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ECONOMICS
Figure 5
PROJECTED PRODUCTION: BLACK TEA
FULL ARTICLE IS AVALUABLE FOR SUBSCRIBERS
Figure 6
PROJECTED PRODUCTION: GREEN TEA
Figure 7
PROJECTED CONSUMPTION – BLACK TEA
Figure 8
PROJECTED EXPORT - BLACK TEA
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ECONOMICS
Figure 9
PROJECTED EXPORTS - GREEN TEA
FULL ARTICLE IS AVALUABLE FOR SUBSCRIBERS
Figure 10
BASELINE PROJECTIONS TO USD 2.023 PER KG
Figure 11
PRODUCTION INCREASES 5 PERCENT OVER THE BASELINE
Figure 12
PRODUCTION DECREASES BY 5 PERCENT LESS THAN THE BASELINE
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ECONOMICS
FULL ARTICLE IS AVALUABLE FOR SUBSCRIBERS
ANNEX TABLES EXPORTING COUNTRIES: DOMESTIC CONSUMPTION 2006-08
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2009
2010
Table 1 2011
2012
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2013
WORLD TEA EXPORTS (THOUSAND TONNES)
Table 2 2006-08
2009
2010
2011
2012
2013
ECONOMICS
WORLD TEA IMPORTS (THOUSAND TONNES) 2006-08
Table 3
2009
2010
2011
2012
TEA CONSUMPTION (THOUSAND TONNES) 2006-08
2013
Table 4
2009
2010
2011
2012
2013
FULL ARTICLE IS AVALUABLE FOR SUBSCRIBERS
FAO COMPOSITE PRICE (USD PER KG) Year
Jan
Feb
Mar
Apr
Table 5
May
June
July
Aug
Sept
Oct
Nov
Dec
Average
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ECONOMICS
BLACK TEA : ACTUAL AND PROJECTED PRODUCTION
Table 6
PRODUCTION Countries / Regions
PRODUCTION
Estimated
Projected
Growth Rates
2013
2023
2004/2013 2014/2023
Tonnes
Countries / Regions
Estimated
Projected
Growth Rates
2013
2023
2004/2013 2014/2023
Percent per year
Tonnes
Percent per year
FULL ARTICLE IS AVALUABLE FOR SUBSCRIBERS
GREEN TEA : ACTUAL AND PROJECTED PRODUCTION AND EXPORTS PRODUCTION Regions Estimated Projected 2013
2023
BLACK TEA: CONSUMPTION Table 7
EXPORTS
Growth Estimated Projected Growth Rates Rates 2023 2004 2014 2004 2014 2013 /13 /23 /13 /23
BLACK TEA : EXPORTS, ACTUAL AND PROJECTED
Table 8 EXPORTS
Countries / Regions
Estimated
Projected
Growth Rates
2013
2023
2004/2013 2014/2023
Tonnes
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Percent per year
COFFEE&TEA INTERNATIONAL # 1/2015
Table 9
CONSUMPTION Countries / Regions
Estimated
Projected
Growth Rates
2013
2023
2004/2013 2014/2023
Tonnes
Percent per year
NO BETTER WAY FOR A HEALTHY TEA CUP
ECONOMICS
THE BASIC SITUATION OF CHINESE TEA INDUSTRY Cai Jun, Secretary-General China Chamber of Tea, CFNA
It is well-known that China is the origin of tea, it has a long history and profound culture of tea drinking. Tea is the best gift that our ancestors bring to the world. In recent years, Chinese tea industry is developing rapidly, tea export achieves remarkable results. China is becoming the most promising country of tea foreign trade growth in the world.
2007-2013, THE NATIONAL TEA PRODUCTION (UNIT: TEN THOUSAND TONS) 250 200 150
FULL ARTICLE IS AVALUABLE FOR SUBSCRIBERS 100
50 0 2007
2008
2009
2010
2011
2012
2013
Statistics of Tea export to Africa since 2004 年度(Year)
1
30
Chinese measure of area: 1 mu = 666,66… m2
COFFEE&TEA INTERNATIONAL # 1/2015
出口数量（公斤） Export(Kg.)
出口金额（美元） Exports (USD)
平均单价 Average unit price
ECONOMICS
PROPORTION OF VARIOUS KINDS OF TEA EXPORT TO ASIA IN 2013
Green Tea Oolong Tea Black Tea Pu’er Tea
FULL ARTICLE IS AVALUABLE FOR SUBSCRIBERS Scented Tea
CHART OF TEA EXPORT TO AFRICA FROM 2004 TO 2013 (UNIT: TON) 180000 160000 140000 120000 100000 80000 60000 40000 20000 0 2004ᐕ 2005ᐕ 2006ᐕ 2007ᐕ 2008ᐕ 2009ᐕ 2010ᐕ 2011ᐕ 2012ᐕ 2013ᐕ
Tea Import Situation in China Since 2004 年度(Year)
进口数量（公斤） Import(Kg.)
进口金额（美元） Imports(USD)
均价 Average Price
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HISTORY
THE TEA BUSINESS OF WISSOTZKY & CO.: the past and the present Ivan Sokolov, Ph.D.,History
The name 'Wissotzky' ('Visotsky') was a household name in Russia during the first two decades of the 20th century. Wissotzky was often mentioned as one of the most powerful men in Russia for a reason: he was a millionaire, the owner of the second largest tea trading company in the country, and his name remained synonymous with tea long after his death in 1904.
An excellent collectible packaging label, Ceylon tea, “Wissotzky & Co.”
Ararepackaginglabel, “D. Wissotzky, R. Gots & Co.”
A packaging label, Indian tea, “V. Wissotzky & Co.”
The title page of an annual shareholder report, Wissotzky & Co.
THE ORIGINS OF THE “TEA MIRACLE” The tea trading partnership “W. Wissotzky & Co.” took the Russian tea industry by surprise. Most tea companies labored for half a century – and some even for a whole century – to reach the summit of the Russian tea trade. But the company founded by Kalonimos Wolff (Wulff) Wissotzky traveled that road in a mere two decades, and entered the competition for market dominance at the end of the 19th – the beginning of the 20th century. What were the circumstances and the events that drove the phenomenal success of the Wissotzky tea business? This will be the topic of our article. The detailed biography of Wissotzky himself, his family members, and the details about his company can be found elsewhere1; this article, written on the occasion of the 190th anniversary of Wissotzky’s birth and the 110th anniversary of his death, will give a relatively brief overview.
1
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A tea packaging facility owned by the industrial-commercial partner ship “Alexandr Kuznetsov & Co, Successors of Alexei Gubkin”, Moscow. The packaging is done manually by women an dadoles cents.
A mechanized packaging facility owned by the tea trading partnership “Wissotzky & Co.” Manual labor is minimized.
K.W. Wissotzky was born to a Jewish family in 1824 in a small town near Kovno (now Kaunas, Lithuania). He got married early, studied in a theological seminary. After realizing that the countryside was too small for his
Sokolov I.А. “Who’s Who in the Tea Industry (People of Tea)”. Moscow, International Tea House Publishers, 2014,ISBN 5-93880-001-3 (5-93880-001-4). A detailed account of the Wissotzky tea business is given in: Sokolov I.А., Russian and foreign tea trading companies on the Russian tea market, 1790 – 1920. Мoscow, 2013,ISBN 978-5-9973-2501-5
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HISTORY
ambitions, Wissotzky moved to Moscow and found a job at a tea shop that belonged to by Pyotr Kononovich Botkin, one of the founders of a large wholesale trading operation with China and the owner of the famous Botkin Tea Company. Here the young Wissotzky learned the specific A rare seal, “Wissotzky & Co.” The trademark image of the ship aspects of the tea is visible, front. trade and established some useful connections. His honesty and religiosity allowed him to climb the professional ladder quickly, from a delivery man to a manager. After saving some money working for Botkin, Wissotzky decided to go into business on his own. Market conditions at the time were favorable to newcomers, as the monopoly of the Kyakhta traders on imports of fine tea from China was beginning to unravel.2
“Wissotzky & Co.” trademark, a sailing ship. Image from a company seal.
A trademark, “Wissotzky & Co.”
A trademark for the Polish market, “Wissotzky & Co.”
NEW HORIZONS, GREATER FLEXIBILITY
A rare seal with the Wissotzky trademark ship symbol, front.
Starting in 1861, the laws restricting tea imports into Russia to routes that crossed the Eastern border of the Russian Empire were relaxed, and imports across the Western border became possible. These new imports consisted chiefly of “Cantonese” tea, which was cheaper and of lower quality; “respectable” tea traders spurned this tea, as well as the new tea varieties coming from India and Sri Lanka, deeming them inferior in quality to the traditional Chinese tea. However, some companies were willing to bet on this cheaper tea, gradually increasing their trading volumes. Wissotzky’s company was among those who decided to ignore the prejudices of the tea industry establishment: it put its money on cheap, low quality tea, increasing the product’s appeal by advertising.
ADVERTISING AND THE WISSOTZKY TRADEMARK
A rare seal with the Wissotzky trademark ship symbol, back.
2
A rare seal, “Wissotzky & Co.” The trademark image of the ship is visible, back.
Wissotzky’s choice of trademark proved to be very shrewd: the firm’s symbol, a ship carrying tea, remained in use for the lifetime of the company. At first, Wissotzky followed others in the tea business by exploiting “colonial” motifs, emphasizing the “exotic” nature of tea. At the turn of the 20th century, when the consumers’ preoccupation with the Orient started to wane, there was a rise in the patriotic sentiment; Wissotzky noticed
A rare trademark variant, “Wissotzky & Co”.
the shift and used it to his advantage. Whereas early advertisements and product packaging featured a Chinese ship and merchants, the later ones switched to a traditional Russian lad’ya (wooden boat). The ship trademark used by Wissotzky & Co. achieved such brand recognition that it became the target of imitations – and not just by competitors. After the revolution of 1917, “Centrochai”, the tea ministry of the Communist government of Russia, attempted to use the ship on its own packaging and other materials.
THE EVOLUTION OF THE FIRM: BRINGING IN NEW PARTNERS In 1881, Wissotzky’s company was reorganized as a trading partnership “Wissotzky & Son”. Further expansion – opening new branches in Odessa and Simferopol – required additional capital and new partners. The Zetlin, Gavronsky and Gots families joined the business. The partnership “Wissotzky & Co” was founded in Moscow in 1897-1898. The company owned tea packaging factories in Moscow, Saint Petersburg, Chelyabinsk, Kokand; later, additional facilities were built in other cities. The firm had offices in 32 cities, including Odessa, Saint Petersburg, Warsaw (now in Poland), Ekaterinburg, Saratov, Samara, Kazan, Rostov-na-Donu, Tiflis (now Tbilisi, Republic of Georgia), Simferopol, Vil’no (now Vilnius, Latvia) Khar’kov, Tashkent
Translator’s Note: Kyakhta is a town in the Russian Siberia, near Lake Baikal, on the border of Russia and Mongolia; during Wissotzky’s time, it was the principal entry point for importing Chinese goods into Russia by land.
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HISTORY
Wissotzky & Co. store, Astrakhan. A pre-1917 postcard, detail.
Wissotzky & Co. store, Saratov. A pre-1917 postcard.
Wissotzky & Co. store, Nizhni Novgorod; the street sareflooded. A pre-1917 postcard, detail.
A former Wissotzky & Co. packaging factory, present day. Photo by the author.
Wissotzky family mansion, Moscow. Photo by the author.
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(now in Uzbekistan), and trading spaces at fairs in Nizhni Novgorod and Irbit. Every major division of the company was in charge of operations across a significant geographical area: the Odessa branch was responsible for the entire southern portion of the Russian Empire; the Simferopol branch coordinated the trade in the Crimean peninsula; Tiflis – throughout Caucasus; the Warsaw branch oversaw Poland (which was a part of the Russian Empire at the time). The Vil’no branch traded in the western part of the Empire (excepting Poland), and the Ekaterinburg branch supplied tea to the Ural region and Siberia. At the turn of the 20th century, the Wissotzky & Co. partnership had two offices in the USA: in New York and in Philadelphia. Annual trading volumes were significant, around 40 million rubles at the turn of the 20th century. For several years, the company paid a significant dividend of 1112% on its shares. In terms of their profitability, the shares of Wissotzky & Co were second only to the shares of the Pyotr Botkin’s company. Thus, the Wissotzky & Co partnership became the second largest tea trading company in Russia. Wissotzky himself was the Chairman; the principal shareholders were his son-in-law, Esel Zetlin (he was married to Wissotzky’s daughter, Anna), and his other daughter, Liba Gavronskaya. Among other major shareholders were Wissotzky’s son David, another one of his sons-in-law, Rafail Gots (married to Wissotzky’s daughter, Rachel), and Wissotzky grandson, Ber Gavronski.
THE “SCALE EFFECT”: PRAGMATISM AGAINST PREJUDICE To grow his business, Wissotzky actively solicited investments from his relatives and from people of Jewish faith. The owners of the traditional, “respectable” tea trading firms were afraid to “dilute” their ownership, and the companies remained de-facto family businesses. Having only relatives as major investors reduced the risk of capital loss. Shares of major firms were not sold on exchanges and had many other restrictions on ownership and transfer specified in company charters. Ownership of many firms was prohibited for people of certain religions; only the firm itself could buy back its own shares; the cost of a share could go as high as 1,000, 3,000, 5,000 or even 10,000 rubles. This high price was thought to be a guarantee against the shares falling into the “unreliable” hands. Wissotzky, on the other hand, issued shares that were mostly restriction-free and priced relatively affordably, at 500 rubles. This allowed rank-and-file investors, such as small business owners, to become co-owners of the firm and to receive a dividend. Wissotzky, in turn, was able to tap into vast credit reserves. Small investors were not a threat as far as control over the company was concerned, but they
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provided much needed capital. After a while, the competitors started to catch on, but it was too late: they were left in the wake as the Wissotzky ship sailed on. Later on, the partnership purchased large stakes in the Russian IndustrialCommercial Bank and in the Bank of Moscow, solidifying its position on the market. Having large amounts of capital allowed the firm to buy large volumes of tea and sell it at lower prices. This strategy was profitable because of the “scale effect”: large volumes compensated for low profit margins. The mass consumer – the primary market of Wissotzky & Co. – seemed content about the price-quality ratio. Soon, the “old-timers” – traditional, family-owned tea companies with impressive pedigrees – discovered to their dismay that selling large volumes of low-quality tea was more profitable than focusing on the elites. Unfortunately for them, they missed the window of opportunity, and market leadership shifted into the hands of the newcomers.
INCOME AND EXPENSES By the start of World War I (1914-1917), the company’s sales exceeded 50 million rubles. Even during the hostilities, volumes were in the tens of millions of rubles, as can be seen in the company’s annual report for 1914-1915. The official figure given there was 72 million rubles. Wissotzky & Co. was one of the purveyors of tea for the Russian army. The partnership Vysotsly & Co. became the official supplier of the Russian Imperial Court, as well as the Court of the Shah of Persia. Although at the time, such “titles” could be purchased easily and at a relatively low cost, they had a miraculous effect on the consumers. Enormous profits from the tea trade allowed Wissotzky to engage in broadreaching philanthropic activity among Russian Jews in Palestine. He generously supported schools (especially religious schools), orphanages, hospitals and shelters for the poor. Big sums were directed towards publishing literature in Hebrew, and truly enormous – towards purchasing land in Palestine. Through his charitable foundations, Wissotzky financed a number of educational institutions in Palestine: The Jewish Academy, The University for Jewish Studies and a university in Jerusalem. In 1908, as stipulated in Wissotzky’s will, a large sum went to a technical school in Haifa – one of the best in the Near East at the time, and even to this day. Contemporary Israeli scholars count Wissotzky as one of the more prominent representatives of the late 19th century political movement for creating a Jewish homeland in Palestine.
CRISES AND UPHEAVALS After its founder’s death in 1904, the company entered a turbulent period in its history. Major shareholders started fighting each other for control of the company. Some of the partners in the original “V.
HISTORY
A seal, “Wissotzky & Co.”, front.
A seal, “Wissotzky & Co.”, back.
Wissotzky & Co.” partnership even started their separate tea trading business using the family name – “D. Wissotzky, R. Gots & Co.”. The new firm faced big obstacles right from the start: it had to create and promote its own trademark, a cannon, which was not received favorably by the consumer. The reputation of the firm was repeatedly damaged by scandals. A lawsuit alleged that the firm was evading the payment of tariffs on the tea imported into Russia; but the suit was dismissed for lack of evidence. And there were even bigger problems. On November 19, 1913, the “Russkoe Slovo” (“Russian Word”) newspaper published a story: “Yesterday, a rumor spread in the financial circles: a prominent businessman M. R. Gots has disappeared. It is said that he has incurred large losses speculating on the stock exchange, and has left the country. These rumors have been confirmed…The father of M. R. Gots is on the board of directors of “V. Wissotzky & Co.”, with personal capital of several million rubles… His son took up speculation on the exchange…” All that we know today about the story is that M. R. Gots died in Geneva much earlier, in 1906; the rumors may have been about his brother, who had returned to Russia. It is also possible that the death had been staged to fool the public. Finally, the whole story may have been an outright fabrication. Maybe some unrelated person has been mistakenly connected to one of the largest tea trading companies in Russian history. But, regardless of the truth, the reputation of the firm was seriously damaged.
IGNITING THE REVOLUTION. A TEA TRADER’S SON ON THE POLITICAL ARENA The Gots brothers – Abram Rafailovich and Mikhail Rafailovich – used family money to take part in revolutionary activities, causing serious problems for their father’s business. Abram Gots (1882–1940) was an active member of the Socialist-Revolutionary Party since 1906; in 1907, he was convicted of planning a political assassination and sentenced to 8
A seal with a ship, A seal with a ship, “Wissotzky & Co.”, front. “Wissotzky & Co.”, back. A ligature with the company name is seen in the middle.
A seal, “Wissotzky & Co.”, A seal, “Wissotzky & Co.”, front. back.
years of hard labor. After the revolution of 1917, Abram Gots briefly became the leader of his party’s fraction in the Petersburg City Council – thus, a descendant of the Wissotzky tea family was, for a brief moment, at the helm of the new Russian regime! Soon after the events of 1917, Abram Gots joined the opposition to the new government; he engaged in planning acts of terrorism against the leaders of the new Russia. In 1922, he was arrested and sentenced to death; the sentence was later commuted to 5 years in prison. After his time behind bars, Abram Gots lead a quiet life in the provinces until his death in 1940.
TECHNOLOGIES AND HUMAN RESOURCES
Many traditional tea trading companies in Russia were in no rush to implement the latest technologies for weighing, processing and packaging tea. The state-of-the-art equipment was expensive, while manual labor (primarily of women and adolescents) was cheap, even for night shifts. The Russian Empire did not have a social safety net at the time: there were no unemployment payments and no public pensions. Many prominent companies believed that they played an important social role by providing employment to large numbers of people, enabling them to survive. All tea companies, including Wissotzky & Co., used manual labor at their facilities. However, the times were changing, and developments in the tea industry and beyond pushed the market leaders towards implementing new technologies. It became clear that those who were the first to see the need for change would cement their position as leaders of the market. Managers of Wissotzky & Co. packaging facilities strove to cut costs as much as possible; part of this strategy was reducing the amount of manual labor by introducing machines. At first, the savings were not very significant, but they did manage to bring the price of the product down. And the cheaper the product, the happier the consumer. At the end of the 19th century,
A seal, “Wissotzky & Son”, A seal, “Wissotzky & Son”, front. back.
A seal, “D. Wissotzky & R. Gots”, front.
A seal, “D. Wissotzky & R. Gots”, back.
Russian society was still developing very rapidly and becoming more prosperous; but the market no longer had room for every player who wished to remain in the tea business. Some adjustments were inevitable. One only has to compare the photographs of the Wissotzky & Co. packaging facilities and the photographs of the facilities of other industry leaders: the difference in their approaches to packaging can be seen immediately. This is not to say that Wissotzky & Co. were at the technological cutting edge: the firm had many facilities all over the country, and the majority of them used the old technology. Even the Moscow plant relied on manual labor for a very long time. Wissotzky was ahead of his competitors only by a step or two; but this was enough to secure a market leader position in the span of only a few years.
THE SHIP FINALLY SINKS… The business of Wissotzky & Co., including all its facilities, was nationalized in September of 1919. The remnants of the company survived in Poland, the Baltic states, Palestine, USA, England. The Palestine branch of the firm continues its operations to this day: it has changed owners, but it has retained its loyal customers and to its famous trademark.
A cannon, trademark of “D. Wissotzky & R. Gots”
The lid of a rare tea carton, “Wissotzky & Co.”
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WHO IS WHO?
OPTIMA CONSUMER Up to 1,500 portion packs/min
A
A new generation of production and packaging systems for coffee and tea pods assures productivity benefits. With the OPTIMA CFL4-10/D an output of up to 1,500 pods/min is achieved, a performance representing the highest currently available on the market. Both asymmetrical and symmetrical pods and capsules can be made with the OPTIMA CFL410/D – optionally also ESE Pods (Easy-Serving-Espresso).
he machine has ten lanes and – a new and crucial feature – two processing points per function, the socalled “double index”. With this the machine processes 20 paper pods simultaneously at each “station”. It is an advantage that the filler unit is fitted vertically and can be ideally positioned over the pods depending on product weight and density. In addition, in
T
the design of this machine type, the shortest possible transport path for the product within the machine line up to the packaging was also taken into account. A further advantage of the design are the function modules fitted overhead in the machine frame and easy to pull out for use. Whether for cleaning or maintenance of for conversion work on the machine, all the modules are easily accessible even though at the same time they are compactly fitted. The floor area requirement is thus kept low, particular when one considers the space to output ratio. The packaging line can also be coupled with secondary packaging machines. The OPTIMA packaging group GmbH Sabine Gauger Marketing Director +49 (0)791 / 506-1410 sabine.gauger@optima-ger.com
interface is the compact and safe pod transfer with a counting device and stacking. The cost aspect: In general, a new high performance system which replaces several older machines takes up considerably less space. There is less expense involved in materials handling and for interfaces if only one line needs to be fed with materials and operated instead of several. It is possible that in addition the product-giveaway is substantially reduced. The sum of the cost benefits in many cases leads to a rapid payoff of a new high performance line – and soon to higher profit margins! Characters: 2,024 OPTIMA packaging group GmbH Felix Henning Public Relations +49 (0)791 / 506-1464 felix.henning@optima-ger.com
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Photos are gratuitously provided by their author Dmitry Litvin and they are property of him.
HoReCa
AlionaVelichko
HoReCa
THE FIRST TEA MASTERS CUP IN THE UKRAINE The first Ukrainian Tea Masters Cup took place in Kiev, the country’s capital, on November 6, 2014. The principal organizer of the event was the Ukrainian company Teahouse. Ukraine was the second country to support the idea of holding this competition; the first Cup took place in Russia in September of 2013. Konstantin Mazurik, Head Judge and organizer of the Ukrainian competition, said that he had been thinking about organizing an event like this in his country for a long time, and as soon as he had heard about the one in Russia, he decided to do the same in the Ukraine. A year after he made his decision, nine Ukrainian Tea Masters Cup contestants gathered at KievExpoPlaza. “It was hard to bring together our domestic tea professionals; but I am glad that we have managed to do it and to hold the first Ukrainian Cup. We have shown people not only that this can be done, but also that this can be a really exciting event”, said Mazurik at the close of the competition. The first event of this type in a country almost always ends up having some wrinkles that need to be ironed out, but this gives organizers and participants valuable experience for organizing future events. The Ukrainian Tea Masters Cup 2015 will be held next spring; the winners will represent Ukraine at the Tea Masters Cup International in Turkey.
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COFFEE&TEA INTERNATIONAL # 1/2015
TAKING RESPONSIBILITY AND BEING REALISTIC If you decide to plan and host such a unique event, you need to understand that once you start, you have to press on until the project is complete. And, after all obstacles have been overcome, you realize: this was just the beginning… Teahouse took on a formidable task: based in Dnepropetrovsk, the company was organizing a competition that would take place in Kiev. Given these challenges, the organizers mad every possible (and sometimes impossible) effort to make sure that the event would take place.
THE PROS AND CONS OF CONTINUITY: EXPECTATIONS AND RESERVATIONS All tea championships that have taken place in Russia, including both the qualifying rounds and the finals, had a common thread running through them. The ideological continuity preserved by the “founding fathers” of this event – the brothers Chanturiya and the Tea Masters Cup Head Judge Denis Shumakov – provided a great deal of support to those who helped organize qualifying rounds in new regions and countries. Every once in a while, written rules and standards are just not enough, and need to be supplemented and clarified by someone who has been there… The continuity was evident at the Kiev event as well, and this was one of its main advantages. At the same time, previous competitions have “set the bar” in terms of the level of expertise and professionalism of the contestants, and this created a set of very high expectations for the Kiev event. Maybe this was the reason why many of those who were not so confident about their own abilities (or the abilities of the organizers) decided not to participate in this competition. “I will not compete this time; I’ll wait and see how things go, and then maybe participate the next time”,
after adding up all the points, the victory was awarded to Diana Kutafina. A few years ago, Diana took a “tea road” from Ekaterinburg (Russia) to Kiev (Ukraine); now she lives in Kiev. Thus, without realizing it, she became another “thread” connecting the competitions in these two countries (contestants from Ekaterinburg made a great showing at the second Tea Masters Cup in Russia). Diana remarked that the Tea Cup was a good sign that the tea culture in the Ukraine is “officially” starting to develop. She considers the competition to be a great opportunity to test her own skills and to get to know those who share her passion for tea. The Tea Degustation category generated great excitement: you could feel it in the air as you observed the contestants trying to identify the five tea varieties presented to them during the second stage of the competition. The pool of ten teas included teas from India, Sri Lanka and China; the Indian varieties proved to be the most difficult for the contestants to identify. Most contestants made three correct identifications out of five. But when it came to the second rubric, the speed of identification, the best time was shown by Elena Lazukina.
A JUDGE’S JOB IS A BALANCING ACT… The judges at the event all brought with them a high level of expertise: Taras Barabash (Monomah, Ukraine), Aleksei Bogdanov (TM Lovare, Ukraine), Maksim Lipko (Svіtchaju, Ukraine), Aliona Velichko (Chajnaja studija, Belarus), Konstantin Mazurik (TM Teahouse, Ukraine). All judges were experienced tea testers and had previous competition experience; this ensured that the scoring in both categories was fair and balanced. The judges had their own challenges during the event: to judge fairly, to
was a common reaction among prospective contestants. But such candidates need to understand: a competition like this is not a jump into the unknown, but a positive challenge, an opportunity to grow professionally and to share your expertise with others.
TWO OUT OF THREE The contestants at the Kiev Cup demonstrated their skills in two categories: Tea Preparation and Tea Degustation. Those who registered for the third category, Tea Presentation, unfortunately, did not arrive for the event… In the first category (Tea Preparation) there were four contestants; all of them demonstrated preparation techniques from the Chinese tea tradition. All contestants were experienced professionals from different corners of the country; during their performances, they shared their knowledge of tea with the audience. In this they were assisted by Marina, the cheerful host of the competition: Marina asked the contestants questions at the critical stages of the process, helping to make clear specific brewing methods and reasons for selecting particular tea varieties. These varieties included primarily such teas as Feng Huang Dan Jun, Tie Guan Yin, Da Hong Pao and shupuerh. The judges had a difficult task before them, but
give all due credit for the taste and the presentation of teas, to gauge one’s overall impressions of the contestants’ style and personality. “This is an extremely important event for the tea community, and a good way to show what the market can support”, said Maksim Lipko. “I think the event has been a success, especially given all the challenges that had to be overcome. This jury is ready for the next competition!”, Taras Barabash summarized. Both the organizers and the participants of the Tea Masters Cup Ukraine hope that November 6 will become a memorable date for the Ukrainian tea community, and that many more competitions will follow.
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HoReCa
In Russia was announced the winner of Ultimate Barista Challenge Kafema.ru
n Moscow 15–16 September 2014 during United Coffee & Tea Industry Event (UCTIE) at Kafema Forum was successfully held Ultimate Barista Challenge Russia – 2014. In the semifinals participated: Nikolai Tolmachev (Kirov), Stepanchuk Sergey (Laboratory of taste,
I
Moscow), Melihov Maxim (Gustov & Gustov, Khabarovsk), Lyahova Tatiana (Revolution of coffee, Zheleznodorognyii), Anton Sinebryukhov (Jamie`s Italian, St. Petersburg), Alexander Kowalski (Kafema, Moscow). In the category «Espresso cocktail» in the finals was Stepanchuk Sergey and he won in the final battle with the Korean champion Young Min Lee. In the category «Latte Art» in the finals was Stepanchuk Sergei who lost to Nika Alekseeva, the defending champion UBC Russia in 2013. In the category «Best of Brew» in the finals also was Stepanchuk Sergey who won in the battle of siphons with micro lots from Ethiopia with Nika Alekseeva. According to the results of the championship Sergei Stepanchuk has become the winner and he will represent our country at UBC – 2014 in Shanghai, China.
Korean coffee shops moving into China challenge Starbucks wantchinatimes.com The growing consumption of coffee in China has prompted a significant rise in the number of new coffee shops, including some opened by South Korean operators. According to Shanghai's China Business News, as of the end of 2013, about 28,000 new coffee shops have opened, nearly doubling the number of shops that existed five years ago. The franchise industry has reported a 25% growth rate, the report said, citing a business website www.sqw.cn. In a market largely dominated by European, American and traditional Taiwanese coffee shops, Korean-style outlets are trying to distinguish themselves by focusing on unique interior design and on celebrity endorsements. Korean coffee shops cater primarily to young women; in addition, their product lines are usually simpler than those provided by their Taiwanese counterparts: they do not serve pizza, porridge, rice or steak. Despite a favorable response from some young Chinese women, most of the Korean coffee shops are located in areas where Koreans living in China are concentrated.
Silvio Leite becomes the new President of BSCA
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Kafema.ru On December 1, 2014, the Board of Directors of the Brazilian Specialty Coffee Association (BSCA) elected Silvio Leiteas the President of the organization. The term is from December 2014 to November 2015. The new President stated that his objective is to boost the promotion of Brazilian specialty coffee in domestic and foreign markets. He also believes that organic coffee has a huge potential in the specialty market in Brazil, making it one of the pillars of the BSCA’s long-term strategy. About the new President Silvio Leite is one of the most prominent coffee cuppers in Brazil. He is the founder of the Cup of Excellence competition, and continues to work as the Head Judge of this contest. Mr. Leite is an expert in coffee quality control, with more than 30 years of industry experience. He has worked for corporations such asthe Bozzo group and Agribahia, where he was in charge of improving coffee quality. Mr. Leite’s work has contributed to the development of the coffee market in the state of Bahia, where he is the president of the local Coffee Producers Association.
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Photo: ITH
HoReCa FOR THE 100th TIME,
THE CUP OF EXCELLENCE SELECTS THE BEST COFFEE
Julia Chanturiya
Twenty three specially invited professional judges from many countries of the world came together in a unique place in the eastern part of the Brazilian state of Minas Gerais, the Matas de Minas region, in order to take part in the 100th Cup of Excellence® competition (Brazil Pulped Naturals, Early Harvest). The choice of venue was not accidental: it was here in Brazil that the Cup of Excellence got its start in 1999, when the first batch of the best coffee lots was auctioned on eBay. Few people knew back then that the country was capable of producing specialty coffee… ince then, the Cup of Excellence has vastly extended its reach, and today the competition is held in eleven countries. In Brazil, the Cup takes place in a different region every year. The Brazilian Specialty Coffee Association (BSCA), together with the Alliance for Cup of Excellence, decided to hold the “jubilee” Cup in Matas de Minas because the coffee growing industry here is dominat-
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ed by small farms (65% of all producers) that are located at altitudes of 600 to 1000 meters above sea level, an ideal elevation for growing coffee. “The competition has several aims”, says Susie Spindler, one of the founders of the Cup of Excellence. “The main one is to show the world new regions and farms that are growing truly excellent
coffee. And the proceeds from the auction go directly to farmers, providing an additional stimulus to the growth of their plantations.” This time, 346 lots were competing for a place in the auction, with only 60 of them open to degustation by foreign experts. The challenge was tough: to make it to the auction, a lot had to score 85 points or above. But for those that make it, the bids can go as high as 80 dollars per pound. Of course, the farmers who own these lots not only make money, but also get international recognition and the attention of the most well-known coffee traders. Thanks to a very kind invitation from the BSCA, I had the opportunity to observe the work of the expert jury and to taste the best coffee varieties. We lived all together in the small town of ViHosa, about 200 kilometers from Belo Horizonte, in the very heart of Minas Gerais. The town is known mostly for its University, where they have a Department of Coffee Studies. The University also has its own greenhouses and a “coffee nursery” – a facility where students can study young coffee plants. In the state-of-the-art laboratory faculty and students work together to solve real-life problems, such as crossbreeding of different coffee varieties to make them more drought- and disease-resistant (both droughts and disease are serious threats to coffee harvests in Brazil). While the jurors were busy selecting the best lots for sale at the auction, the rest of us had the luxury of visiting the farms and enjoying the beautiful countryside. The most amazing experience was listening to farmers lovingly describe their coffee (which, by the way, is
harvested entirely by hand – every single berry). Coffee is their life, and now, with the advent of the Cup of Excellence, they are inspired to pursue true perfection – and the bar is rising higher and higher every year… After several days of exhausting cupping, it was time for the award ceremony. Only farmers whose lots scored higher than 85 points were invited to participate. The host of the ceremony was Vanusia Nogueira, the Executive Director of the BSCA, an amazing woman whose enthusiasm inspires everyone who works with coffee.
FINALLY, THE MOMENT CAME TO ANNOUNCE THE WINNER…
… and the top score went to Candido Vladimir Ladeira Rosa, a two-time winner of the Cup and the owner of the Ouro Verdefazenda (plantation). His coffee scored 94,05 points and was judged this season’s best. Overall, 21 lots made it to the auction and were sold on November 27. It is important to remember that 83% of the proceeds go to the farmers, with only 17% going to the BSCA. And the total revenue from the last 97 auctions exceeded US$ 43 million. I would like to once again thank the professional team from the BSCA and personally Mr. Silvio Leite, the Head Judge of the competition, Sherri Johns and Susie Spindler from the Alliance for Cup of Excellence, as well as the charming owners of the Araponga, Pedra Redonda and Braunafazendas, for the opportunity to taste a truly excellent cup of coffee.
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INDIA THAT TASTES LIKE TEA Aliona Velichko (text & photos)
Tea taster is a very rare and unique professionwhose representatives being very scarce in a tea country are very highlyvalued for their experience. But to get this experience one has to walk a long way from an apprenticeship to a mastership. In Indian tea sector, most of the tea tasters are trained by in-service trainers, who have trained and learnt from field and senior tea tasters within professional and experiential learning. So an Institution that specializes in training tea tasters is not easy to find. But I was lucky to find one and then I was honoured to study there. Deep in the heart of Bangalore there is Indian Institute of Plantation Management that 5 years ago started PCP-TTM course.
COFFEE&TEA INTERNATIONAL # 1/2015
PCP-TTM In India, most of the tea companies have tea tasting facilities. Certain NGOs and private groups are conducting short term training programmes ranging from a week to one month. Indian Institute for Plantational management (IIPM) is the first-of-its-kind Institute in the country that decided to offer holistic and unique TTM programme with a focus on marketing and professional tea tasting aspects.It is offered in collaboration with the Board of India and recogniased by them as well. This is a Professional Certificate Programme which has academic interface and a high emphasis on practice. When the decision to make course was shaped IIPM identified available recognized academic and industry-led tea tasters to initiate programme within the country. Then Institute submitted the proposal to Tea Board of India highlighting the importance of encouraging younger generation to become better tea tasters with state-of-the-art of existing IIPM laboratory. And now the existing laboratory is likely to obtain certification under ISO 17025 / ISO 17024 for tea tasting / tea taster certification. The program was designed in cooperation of IIPM faculty and experts of tea industry to meet the demands of the market. The studies of the-
ory are very well combined with practical classes. Courses are taught and conducted by IIPM faculty, industry representatives and well experienced tea tasters with blend of theory, practice and marketing / blending aspects of tea. A special focus on tea tasting with multi-country samples to predict tea profile of the tea tasting were provided for the participants. Young managers of corporate and inherent are participating in TTM to learn advances aspects of tea tasting.. One of the biggest highlights (no, not the final exams!) is the field and factory visits when a group of students goes for a week to the tea gardens and factories and they see with their own eyes all they have been taught about – from plucking tea leaves to the auction, meet different tea professionals in different spheres. What makes PCP-TTM special is also its openness for the public as well as tea professionals from different countries where tea professionals are needed. It doesn’t mean that any person will fit. An applicant has to go through a certain procedure of admission – filling in an application form with motivation letter, submitting copy of diploma as well certificate about level of English. There are three streams based on the background of the program participants: freshers to tea industry, experience in tea manufacturing, and experience in tea tasting. The technical,
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functional and marketing aspects of tea tasting are blended differently in every stream in order to fill the skill gaps of the participants. That was the case when my university diploma with distinction plus my experience with tea for about ten years and my knowledge of English worked for me and gave me enough points to be offered the place in the program. The program is not free of charge and its price starts from 65 000 Rs plus all expences for board and lodging. But the knowledge one gets is worth it. In 2014 it was the fifth time the Professional certificate Programme on Tea Tasting and Manrketing (PCP-TTM) was run. And we were 5.
OUR 45 DAYS PROGRAMME
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The groups at the course are quite small. Approximately 10 to 15 students per batch per year enroll for the programme. This year there were only 5 of us, lucky ones who got the place in the programmeand all the attention of our teachers and tutors. Enrollment of the students happens during the whole year, through the site and a word of mounth but sometimes those who plan to come don’t come
for some reasons. We were missing couple of people who had to come but some work prevented them. It is hard to count how many cups or better say spoons of tea we tasted during the training trying to identify quality and region of the tea tasted. Our teacher Mr. K. G. Nanda, one the distinguished specialists in tea gave us very good lesson that I will remember for a long time “Don’t say good or bad tea. It is just tea that you like or don’t like. But smb may love what you don’t like.” So we learned to differentiate the tea from one another, different height, origin, year. Learned how to make blends. “Anybody can become a good tea taster, but you need to love tea and to work hard,” – kept saying Mr. K.G. Nanda, a person who made his career from tea garden manager to vice president of Tata tea company.He values honesty and reliability in peopleand he didn’t teach us only tea, he taught us much more with his own way of life. 45 days of course is not enough to become an excellent tea taster, minimum severalyears of everyday tasting are needed for this. But it is a very good start. Three young Indian men in our group were the ones who inherit their family tea business and they wanted to learn everything they could about the tea. I am sure that the tea family companies that invest in the tea education of their future top management will definitely succeed. There was one woman in our group, Pompy Gosh, an
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expert in organic tea and her studies were supported by organic farmers and also the IIPM. This course gave her more opportunities to find a better job placementafterwards. On successful completion of the program with eligible credits, all my groupmates were awarded with the Certificate. Examination time was challenging and included practical and theoretic parts. We all came from different places and from different background but tea united us. During our field trip we met some former students of IIPM who worked at such places as tea auction, tea factory and were very happy about their job placements. A certain percentage of the previous course batches was small tea farmers who wanted to increase the quality of their tea and after finishing the course they kept informing the staff about their success in improving the quality of their tea. Usually most of the alumni students of tea tasting are recruited by the tea-based industries in India as tea tasters. Few students have joined as Assistant Managers-cum-Tea Tasters in tea factory and few have established their own tea tasting outlet. IIPM helps the alumni with placement.
PERSPECTIVES AND CHALLENGES Will IIPM manage to make this programme as one year Post Graduate Academic Programme in near future, with recognition of the Ministry of Human Resource Development (AICTE), Government of India? I hope so because the ambition and experience to make it as a first-of-its-kind academic programme on tea tasting and marketing, in the country is high. Speaking what could make this programme better, it is may be 3 things. There could be a broader variety of tea samples that are provided by the tea companies or tea gardens for the course participants. The information about the markets that are constantly changing should be updated regularly in the presentations. And cooperation with similar courses and schools in other countries could be fruitful to share experience. This course at IIPM is a wonderful opportunity for many tea companies from different countries to improve the skills and knowledge of their tea tasters and to learn more about Indian tea. With deep respect and gratitude to Shri. K. G. Nanda, Fr. Senior Vice President, Tata Tea Ltd., Shri. V. Ramaswamy, Fr. Executive Director, Carritt Moran, Dr. V. G. Dhanakumar, Director, IIPM and all other wonderful people that I met at IIPM.
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