NEW REALITY FOR THE TEA MARKET:
THE WORLD’S LARGEST TEA IMPORTER HAS JOINED FORCES WITH ITS NEIGHBORS
VERY PURE AND VERY EXPENSIVE IS «SUMATRA» SYNONYMOUS WITH «SPECIALTY COFFEE» ? EVOLUTION AND PROSPECTS OF COLOMBIAN COFFEE PRODUCTION
# 2 (90) 2011
contents
№ 2’2011
22
26
Is Sumatra Synonymous with Specialty Coffee ?
Evolution and prospects of Colombian coffee production
2
Pharmacological effects of green tea on the gastrointestinal system
EDITORIAL
3 CALENDAR OF EVENTS
22
REVIEW&STATISTICS Nielsen statistics Customs cervice of Ukraine statistics
18
Hot drinks. Belarusian tea and coffee: smallyet resilient market with pockets of opportunity
20
Hot drinks. Tea and coffee face off as competition heats up within hot drinks in India
Is «Sumatra» synonymous with «Specialty Coffee»?
26
Evolution and prospects of Colombian coffee production
4 NEWS
14 16
The future of the tea market: innovations and traditions
42
37 The Organic Question or Why Don’t Consumers Have Access to Organic Coffee and Tea?
34
46 Tea and tea service in restaurants.9 roles for tea and the selection of tea strategy
WHO IS WHO? 38
ECONOMICS 30
New reality for the tea market: the world’s largest tea importer has joined forces with its neighbors
34
The future of the tea market: innovations and traditions
36
Very pure and very expensive in Russia today there is still a very limited demand for organic tea and coffee
37
The «Organic» question or why don’t consumers have access to organic coffee and tea?
Allegra’s fourth European Coffee Symposium to take place in Berlin on 23-24 November 2011
RESEARCH 42
Pharmacological effects of green tea on the gastrointestinal system
HoReCa 46
Tea and tea service in restaurants. 9 roles for tea and the selection of tea strategy
48 ADVERTISER INDEX 1
EDITORIAL
# 2 (90) 2011
hat are funda-
W
mental values? People give dif-
ferent answers to this ques-
Establisher ZAO INTERNATIONAL TEA HOUSE Publisher ZAO INTERNATIONAL TEA HOUSE Chief Editor RAMAZ CHANTURIYA
tion, depending on their age
Deputy Chief Editor SVETLANA BELIKOVA
and personality: they try to
Computer aided makeup VALENTINA GUSKOVA
give definitions, reflect on
Advertising Director JULIA CHANTURIYA
predestination,
Advertising Manager ELENA TREGUB
enumerate
and systematize, argue and philosophize… But it is prob-
Circulation Manager MARINA FOMINA
THE EDITORIAL BOARD
ably safe to say that everyone agrees on one thing: with-
Chairman of the Editorial Board
out this foundation human civilization will lose the core
general director of Rusteacoffee Association
power source that drives its development. In this rapidly
Members of the Editorial Board
changing world we keep measuring every innovation against the concept of the fundamental meaning of life
R.O. CHANTURIYA,
S.G. BELIKOVA, deputy editor in chief of Coffee&Tea in Russia magazine, PhD of Philology, Editorial Board Secretary
S.V. KASIANENKO, chairman of the board of directors of Orimi Trade company
that is genetically encoded in all of us… This allows us to make corrections to our course, avoid fatal mistakes and,
I.V. LISINENKO, general director of May Company
A. MALCHIC,
in general, make sense of what is happening around us.
Georgian Tea Producers Association
coffee and tea play in our lives? Unlike many
International Tea Committee
with us for many centuries, retaining the qualities that made them so dear to us. They
EDITORIAL
R.D. PANZHAVA,
Have you ever thought about the roles that
modern products, these beverages have been
are conduits into the depths of history, into
M. PEYRIS, V.A. TUTELIAN, Head of the Institute of Nutrition of Russian Academy of Medical Sciences, Member of the Academy
G.V. SMIRNOV, general director of SDC FOODS company
A.V. ELSON, general director of KLD Coffee Importers
Photo on a cover:
the traditions and worldviews of our ancestors (see C&TI (1) 2007). I am confident that the enduring history of coffee and tea exhibits the very principles that are among humanity’s fundamental values. And it really couldn’t be otherwise! I hope that our generation will make its contribution to the infinitely rich history of tea and coffee without compromising their very essence – an incomparable taste, aroma and healthful properties!
Ramaz Chanturiya Editor-in-Chief
2
chief executive of Montana kofe company
COFFEE&TEA INTERNATIONAL # 2/2011
Cappucino, author of the photo – Gary Kapluggin, winner of the competition Photograph on the cover
Editorial Address: Russia, 123060, Moscow, Berzarina str., 36, building 2, of. 214 tel./fax: +7 495 935-87-07 E mail: magazine@coffeetea.ru, www.coffeetea.ru Printed in Union Print, Nizhny Novgorod Distributed worldwide among coffee and tea producers, wholesale companies, shops, and restaurants. Printed in Russia. According to the registration certificate of mass media П И №77 7213 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 pub lished 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.
CALENDAR OF EVENTS September 2011 — March 2012
All materials are provided by support of WWW.COFFEETEA.RU
7–9 September 2011
20–23 October 2011
16–19 December 2011
WORLD COFFEE TRADE OUTLOOK
CHINA XIAMEN INTERNATIONAL COFFEE FAIR
TAIWAN INTERNATIONAL TEA EXPOSITION
Country: Belgium City: Antwerp Company Page: www.ibc-asia.com
Country: China City: Xiamen Company Page: www.coffeefair.cn
Country: Taiwan City: Taipei Company Page: www.tea.easa.com.tw/2011tea/
8–10 September 2011
21–25 October 2011
24–27 January 2012
COFFEENA INTERNATIONAL COFFEE FAIR
HOST.
UPAKOVKA / UPAK ITALIA
INTERNATIONAL EXHIBITION OF THE HOSPITALITY INDUSTRY Country: Italy City: Milan Company Page: www.host.fieramilano.it/en
25–27 October 2011
WORLD FOOD UKRAINE Country: Ukraine City: Kiev Company Page: www.worldfood.com.ua Country: Germany City: Cologne Company Page: www.coffeena.biz
13–16 September 2011
WORLD FOOD MOSCOW Country: Russia City: Moscow Company Page: www.world-food.ru
22–24 November 2011
WORLD TEA SCIENCE CONGRESS
Country: Russia City: Moscow Company Page: www.upakowka.ru
13–17 February 2012
PRODEXPO Country: Russia City: Moscow Company Page: www.prod-expo.ru/en
14–16 March 2012
INTERNATIONAL FAST FOOD FAIR
Country: India City: Jorhat Company Page: www.tocklai.net
23–24 November 2011 23–25 September 2011
COFFEE FEST SEATTLE Country: USA City: Seattle Company Page: www.coffeefest.com
EUROPEAN COFFEE SYMPOSIUM Country: Germany City: Berlin Company Page: www.europeancoffeesymposium.com
Country: Russia City: Moscow Company Page: www.tcworldcup.comwww.fastfoodexpo.ru
23–25 November 2011 27–30 September 2011
PIR. HOSPITALITY INDUSTRY
EEVEX. EAST-EUROPEAN VENDING EXHIBITION
Country: Russia City: Moscow Company Page: www.pir.ru
Country: Russia City: Moscow Company Page: www.eevex.ru
25–27 March 2012
TEA & COFFEE WORLD CUP EUROPE Country: Austria City: Vienna Company Page: www.tcworldcup.com
3
NEWS
dp.ru
The President of Sri Lanka meets with the head of the largest Russian importer of Ceylon tea he President of the Democratic Socialist Republic of Sri Lanka Mr Mahinda Rajapakse had an informal meeting with A.A.Yevnevich, the CEO of Orimi Trade, one of the leaders of the Russian tea market and the largest Russian importer of Ceylon tea. During the meeting, President Rajapakse thanked Orimi Trade for their longterm successful effort aimed at promoting Ceylon tea in Russia and expressed hope that the consumption of Ceylon tea, which is a very important part of Sri Lanka’s economy, will continue to grow in Russia.
T
May Company — to tea! maycompany.ru ast days of spring – always a landmark in our life. It is a transition to the long-awaited summer, and termination of a school academic year, and just an approach of good weather. It is a high time for a holiday. For this reason the May Company annually sponsors the World Tea and Coffee Festival in Moscow. This year during four days, from May 26th to May 29th, the hospitably open pavilions waited for the visitors in
L
British Rock Stars at the Ahmad Tea Music Festival in Moscow, Russia ahmadtea.ru hmad Tea has invited several British rock stars to Moscow to take part in the Ahmad
A
Tea Music Festival, which will take place in the Hermitage Garden on July 2.
Some famous British bands will take the stage on this day, conquerors of the national charts and regular participants in events on the scale of the Glastonbury Festival: The Klaxons, Erland & The Carnival and Maximo Park. Together they will present an unexpected and diverse musical “blend” of English and Scottish tunes as well as bright notes of British rock.
4
COFFEE&TEA INTERNATIONAL # 2/2011
Kolomna Park. While the children's small town pleased the little visitors with its attractions, grown up people could taste teas from different parts of the world, and there and then purchase the ones they liked. Daily performances on the main scene made the pleasant rest in the open air quite zestful. Possibility to sunbathe nearby on a grass and then to return to entertainments turned these days off into one long holiday for thousand Moscow families.
NEWS
PACKAGED TEA: Duties won't be zeroed
Columbia expects high coffee prices in 2012
foodmonitor.ru
Representatives of the Colombian National Coffee Growers Federation stated that in 2012 the supply is expected to fall short of meeting the demand, which will cause the price of Arabica coffee to stay within the US$2-US$3 per pound. finam.ru
Tea plantations shrinking in Azerbaijan
he Sub-Committee of the Russian government on customs and tariff policy recommended the Customs Union to reset import duties on some fruits and vegetables, said Andrei Slepnev, Deputy Minister of Economic Development to reporters on Friday, 18th 2011 at the international economic forum of CIS countries.
T
"At the last commission on customs and tariff policy, it was decided to reset the duties on tomatoes, cucumbers, pickles and apples" said Mr Slepnev. In addition, the Commission considered a proposal by resetting duties on milk powder and packaged tea. However, according to Slepnev, that decision was not supported, RIA News reported.
Delo.ua
The price of tea can go up 14% drought in Kenya, the largest black tea exporter in the world, and increased demand for tea in India, the second largest tea producer after China, can raise the price of
A
black Ceylon tea by 14%, according to H. D. Hemaratne, director of the Sri Lanka Tea Board. This year prices can go up toUS$4 per kilogram compared to US$3.5 per kilogram last year.
Tea plantations in Azerbaijan continue to shrink. Only last year, 26% of all tea plants were destroyed. As of the beginning of this year, Azerbaijan had a total of 567 hectares of tea plantations, compared to 794 hectares a year earlier; in 2007 this number was 1700 hectares. The highest level of tea production was reached in 1988, when tea plantations occupied 13.4 thousand hectares and the green tea leaf harvest was 34.4 thousand tons. contact.az
US sues Starbucks for firing dwarf from barista job The U.S. government is suing Starbucks, saying the coffee company fired a barista in El Paso, Texas because she is a dwarf. The U.S. Equal Employment Opportunity Commission, which filed the lawsuit on Monday, said that Starbucks violated federal law by denying a reasonable accommodation to the employee. Stacey Krum, a spokeswoman for Starbucks, said the woman was hired on a trial basis and after three days the store manager decided that the work was too physically demanding for her to perform. lenta.ru
Vietnam raises forecast for its coffee exports delo.ua he Agricultural Ministry of Vietnam raised its forecast for coffee exports in 2011. It is now expected that the country will export 1.2 million tons, earning US$2.6 billion. During the first 4 months of 2011 the sales of coffee abroad almost doubled, to US$1.4 billion, and the volume grew by 45.4% to 675 million tons. According to the forecast by the International Coffee Organization, for the 2010-2011 growing season the total coffee harvest in Vietnam will be 18.4 million bags, which is a 1.3% increase over the previous season.
T
6
COFFEE&TEA INTERNATIONAL # 2/2011
NEWS
Guatemala’s coffee exports rise foodmonitor.ru offee exports from Guatemala rose 7.6 percent in May, according to the country’s National Coffee Association (AnacafJ). Shipments climbed to 465,277 bags from 432,216 bags a year earlier (each bag of coffee weighs 60 kilograms=132 pounds). Exports for the marketing season that began Oct. 1 totaled 2.347 million bags, compared with 2.328 million bags in the year-earlier period. The U.S. Department of Agriculture estimates that Guatemala’s production will reach 4 million bags in the 2010-2011 marketing season.
C
Study: No link between coffee, high blood pressure risk abclocal.go.com new study in the American Journal of Clinical Nutrition shows no evidence that coffee increases the risk of high blood pressure. Some studies have suggested that coffee may increase the risks, but this new report finds that the chance of being diagnosed with high blood
A
pressure was no different between people who drank more than five cups of coffee per day and those who drank very little. Still, the authors of the study are not claiming that there is absolutely no risk associated with drinking a lot of coffee, for there can be other adverse effects.
India’s top court orders ban on pesticide India's Supreme Court temporarily banned production and sale of endosulfan, a chemical widely used to control pests on fruit, vegetable, tea, coffee, cotton and other crops. The court acted on a petition filed by a political group from the southern state of Kerala, citing an increase in deaths and birth deformities in the state's Kasargode district where endosulfan was aerially sprayed on the cashew crop. The court said if the expert committee concluded that endosulfan was not hazardous, the ban would be lifted. breitbart.com
7
THE CROSSROADS of the Tea and Coffee World
Julia Chanturiya
«This is our English edition» J. Chanturiya, C. Martinelli (Interfil)
K. Wulff (Glatfelter) (in the middle)
Mr. Mai (MAI S.A.) (on the right) and C.A. Daunisi (on the left)
The international team of Neumann Kaffee Gruppe
The team of Scolari and Poberto Pedini (Petroncini Impianti)
Muharrem Uzunkavak (Pelipaper) (in the middle) «Looking for a Russian distributor!» Ronald G. Kleist (Loring Smart Roast)
n mid-March hundreds of coffee and tea suppliers and producers from all over the world gathered once again for the Tea and Coffee World Cup exhibition, this time in Singapore. It was the second time that this country took its turn to be the capital of the tea and coffee world – and this was hardly an accident. In this small Asian oasis, everything is designed to make life safe and comfortable: an efficient public transportation system, large numbers of hotels and restaurants, a variety of interesting places for leisure and entertainment. And because of its strategic location at the crossroads of trade routes connecting Europe, Asia and Australia, this country has become an important hub for trade, communications and tourism. This is why many companies attended the exhibition in order to establish new business contacts and maintain the existing ones. Traditionally, the Tea and Coffee World Cup is a venue for companies that supply products and services for the business-to-business sector. Singapore is frequently referred to as the gateway to the Asian coffee market. The average coffee consumption in this country is the highest in all of Asia. Annual average per-person consumption here is 1.9 kilos, which is much higher than in Japan (1.4 kilos) and Great Britain (1.2 kilos). This is why the exhibition attracted a large number of manufacturers of roasting equipment, cafJ equipment, packing and engineering electronic systems, as well as many green coffee traders. And those more interested in the tea business had an opportunity to examine tea-bag producing equipment from virtually every large manufacturer. It is noteworthy that many Asian companies today are promoting technologies for producing tea pyramids, which are becoming an increasingly popular and sought-after product all over the world. The exhibition also hosted 3 days of degustations, cuppings, auctions, educational events and a national barista championship. Time flew by as we enjoyed talking to old, new and prospective partners. All copies of the English edition of our Coffee and Tea International trade magazine had been distributed, and I was fortunate to have an opportunity to spend my last evening in Singapore visiting the island resort of Sentosa. It was a delight, after Moscow winter, to dip your feet into a warm ocean, to touch wonderful exotic fish in the oceanarium and at the end of the night to enter into a magical world of the Musical Fountains laser show! I really did not want to leave this wonderful country... and hope that in two years I will be able to return for the next exhibition, the event that has truly become the crossroads of the tea and coffee world.
I
«Tea pyramids are gaining popularity» Seiji Suzuki (FUSO)
S
CAE World
of Coffee 2011 event took place in Maastricht at the MECC Exhibition & Congress Centre 22nd-24th June. The premier Event on the Coffee Industry Calendar attracted in excess of 3,000 international visitors over three days and provided the perfect platform for the industry to network, showcase and ultimately boost trade. Incorporating a grand-scale exhibition of suppliers to the Food Service Industry, this year saw the introduction of ‘The Village’, an area of the exhibition set aside for small market stalls bustling with Dutch and Belgian companies presenting a variety of coffee brewing methods, micro roasters and artisan suppliers. Competition fever was unleashed across five world coffee championship stages, managed by World Coffee Events (WCE) they are:
World
Brewers
Cup,
World
Cezve/Ibrik
Championship, World Coffee in Good Spirits Championship
and
World
Latte
Championship. These championships attracted competitors from across the
globe
who
arrived ear-
THE WINNERS OF THE WORLD COMPETITIONS ARE: • World Latte Art Cham-pionship Chris Loukakis GREECE • World Coffee in Good Spirits Championship Philip Leytes RUSSIA • World Cup Tasters Championship Kyriakos Ouzounidis GREECE • World Cezve/Ibrik Championship Bae Jin-Saol KOREA
10
• World Brewers Cup Championship Keith O’Sullivan IRELAND
Art
lier, a l o n g with their supporters, in order to perfect their performance in the practice rounds. SCAE’s investment in education was borne out through the launch of SCAE’s new Coffee Diploma System (CDS), with a mix of Level 1 and Level 2 courses available to visitors at the show. Practical sessions along
CL AS SE VE NT !
with written assessment lead to certification being offered ‘all under
one roof’ in: Barista, Roasting, Green Coffee, Sensory, Brewing and
Grinding. It was a great launch success as CDS courses quickly filled to capacity.
A link was also made between the exhibition hall and the old town of Maastricht with the World of Coffee Tour. Participating venues in the town presented coffee roasted by renowned international specialty roasters. This was
ce ur So
a huge success, as supplies of specialty coffees sold out after just two days! A well-organised social programme made competitors quickly feel at home in the beautiful historic town of Maastricht. The Barista Party ‘Sweet Fantasy’, by
e Pr
se
headline
IN DU ST RY BR EW SU PW OR LD
hosted
E CA :S
a le re ss
sponsor Natvia, was a sell
CO FF EE
out
finale to
the
whole event. The night provided a heady mix of club music, cocktails, fun and bizarre! Exhibitors were very satisfied with the international mix of visitors and trading success with many already signed up for the World of Coffee
Vienna1 show next year. 1 The World of Coffee 2012 will take place in Vienna (Messe Wien) from the 13th until the 15th of June. This is where the renowned World Barista Championship will take place along with World Brewers Cup, World Cup Tasters Championship and the World Cezve/Ibrik Championship. We look forward to welcoming you there!
11
NEWS
Darjeeling tea companies likely to perform better this year economictimes.indiatimes.com arjeeling tea companies,
D
second flush teas, which fetch
which had suffered a
maximum revenues for tea com-
setback last year due to a
panies. But this year the weather
drop in production, are likely to
has improved and this will have a
perform better this year.
good impact on the production”,
“Last year, production got affect-
said Ashok Lohia, chairman of
ed due to a drought-like situation.
Chamong
We lost the premium first and
Darjeeling tea producer.
Tea,
the
largest
gulfnews.com
Coffee machine shows what the future is brewing coffee machine that runs on solar energy has heralded an ambitious
A
renewable energy project in Abu Dhabi. The solar coffee machine, which makes espresso using solar energy, demonstrates how
Concentrating Solar Power (CSP) technology works, a senior official at Masdar Power, a unit of the government-owned Abu Dhabi Future Energy Company, told Gulf News recently. The coffee machine was unveiled at the Organic Market organized by Masdar Power at the Masdar Institute of Science and Technology.
A modern tea research laboratory established IN PAKISTAN pakobserver.net
akistan’s National Tea Research Institute Manshera (NTRIM) has
P
opened a modern tea research laboratory. The laboratory consists of three departments including soil sciences, entomology, bio-chem-
istry and horticulture for research and development of tea production in the country. According to Dr. Muhammad Afzal, Chairman of the Pakistan Agriculture Research Council (PARC), NTRIM would help the country to achieve selfsufficiency in tea production as well as increase farm income and alleviate poverty in the rural areas.
12
COFFEE&TEA INTERNATIONAL # 2/2011
REVIEW&STATISTICS
Study of TEA Retail Sales in Russian Cities with the Population over 10,000. Data for Oktober 2010 — March 2011 Distribution of TEA Sales in Terms of Money. Percent October-November 2010
by urban type Population of 10 000 – 50 000 population of 50 000 – 250 000 population of 250 000 – 1 000 000 population over 1 million by distribution channel supermarkets mini-markets grocery stores pulse shops and open markets
December 10-January 2011
February-March 2011
FOR SUBSCRIBERS ONLY FOR SUBSCRIBERS ONLY Source: Nielsen
Share of Packed Tea in Total Sales Volume of TEA Physical sales volume, percent OctoberNovember 2010
Tea in teabags Packed tea
December 2010January 2011
Monetary sales volume, percent
February-March 2011
OctoberNovember 2010
December 2010January 2011
February-March 2011
FOR SUBSCRIBERS ONLY
Source: Nielsen
Share of Each Category in Total Sales Volume Physical sales volume, percent October-November 2010
black black flavored mixed: Hedbal&Fruit green green flavored red white black & green
December 2010January 2011
Monetary sales volume, percent February-March 2011
October-November 2010
December 2010January 2011
February-March 2011
FOR SUBSCRIBERS ONLY Source: Nielsen
Study of COFFEE Retail Sales in Russian Cities with the Population over 10,000. Data for Oktober 2010 — March 2011 Distribution of COFFEE Sales in Terms of Money. Percent October-November 2010
December 2010-January 2011
February-March 2011
by region
REVIEW&STATISTICS
FOR SUBSCRIBERS ONLY by urban type
FOR SUBSCRIBERS ONLY by distribution channel
FOR SUBSCRIBERS ONLY Source: Nielsen
14
COFFEE&TEA INTERNATIONAL # 2/2011
REVIEW&STATISTICS
Share in Total Sales Volume Physical sales volume, percent December 10-January 2011
February-March 2011
Monetary sales volume, percent December 10-January 2011
February-March 2011
FOR SUBSCRIBERS ONLY Source: Nielsen
Share of Various Packaging Types in Total Sales Volume of Instant Coffee Physical sales volume, percent December 10-January 2011
February-March 2011
Monetary sales volume, percent December 10-January 2011
February-March 2011
FOR SUBSCRIBERS ONLY Source: Nielsen
A unique tea variety has brought out in Adygea, Russia stavropolye.tv unique characteristics (the content of tannin in it reaches 16 percent, whereas in other varieties - just 9 per cent) more than one generation of breeders worked. started from 1938. To obtain the desired result it took 15 selections, which took nearly 70 years. The first harvest of the newly derived class will have to wait another seven years. According to the director of Adygei Branch All-Russia Research Institute of Floriculture and Subtropical Crops Agricultural, Pchihacheva Edward, now incorporated 500 seedlings of tea and other 500will be laid in autumn. "That's all the mother material, based on it then we will create a plantation," - he explained. The branch director also stated that it was the influence of climatic zone put on a new brand of tea special features. reeders of Adygea has brought out and patented a new vari-
B
Till 2010 republican target program of development tea growing "Tea
ety of tea, the northernmost in the world. "Newborn" is
Adygea" acted. As it turned out that 9000 hectares of the republic's
received as a result of selection of one of the varieties of
territory suitable for cultivation of this crop.
Chinese tea and named as Adyghe. It has already been introduced in
In the Research Institute is now working to develop a business plan
the federal register of varieties. On the creation of that variety with
in order to be able to receive government subsidies.
15
16
COFFEE&TEA INTERNATIONAL # 2/2011
Source: Customs Cervice of Ucraine
Coffee, main supplier countries
Description
Data for Oktober 2010 — March 2011
Code
Statistic of coffee turnover in Ukraine
REVIEW&STATISTICS
kgs
%
US Dollars
Import %
kgs
%
US Dollars
Export %
REVIEW&STATISTICS
FOR SUBSCRIBERS ONLY
HISTORY OF SURPRISING SUCCESS S
ometimes it seems that our favorite things have always existed, and we are surprised to know that there were times when they did not exist. Maisky is just such brand. Having appeared in the early nineties, now, in 20 years, it has won hearts of millions Russians, and still continues its triumphal development.
All 20 years of it existence the Maisky tea was developing together with our country, with our tastes and preferences. In the collection appeared new types, sorts and bouquets. This tea so deeply penetrated into our culture that even in Russian language we can see an interesting phenomenon: research showed that today the word Maisky in our mind is inseparable from the word "tea". And after a successful advertizing campaign of Maisky the first association which arises in our mind is: "Maisky tea – favorite tea"! Everything began in May, 1991 when the May Company created and registered the trademark Maisky tea. Maisky was the first who acquainted the Russian consumers with perfect large-leaved Ceylon and high-quality Indian tea. Day after day, cup after cup Maisky tea was becoming more and more native to us, and in 1995 it was recognized as the most popular tea brand of our big country. For the May Company this fact became a significant event and a success indicator. And in 1996 research of the tea market carried out by the authoritative Comcon company showed that Russians know three sorts of tea – Indian, Ceylon, and Maisky. Having become the unconditional leader, the Company with confidence stepped over the borders of Russia and started development of the foreign tea market. For its original taste and high quality Maisky tea has been awarded to many high awards at international and Russian exhibitions. For example, Maisky tea repeatedly received Brand No. 1 status in National Brand competi-
tion (in 1998, 2000, 2002 and 2010) in the "tea" category. To correspond as much as possible to the most different consumer preferences and to keep up to date, in 2000 inside the Maisky brand there appeared independent sorts of tea which quickly won popularity. The sorts Korona Rossiyskoy Imperii, Zolotye Lepestki and Cherniy Briliant which was the first blend of real Kenyan tea in Russia, became especially loved by Russians. All this led to the fact that at the turn of the century Maisky became practically a category symbol. To consolidate success, in 2003 Maisky was updated – and the rebranding quickly brought new titles and regalia in the company receptacle. In 2004 Maisky became the winner of the National rating The best trademark of Ukraine, is having received the first places in all nominations of Tea Bags competition. In the same year Maisky tea won in the international festival competition Choice of Year-2004 in nomination Tea of the Year. In 2005 Maisky tea again became the winner of a prestigious Ukrainian competition Choice of the Year and received its first gold medals at the international PRODEXPO exhibition for the main assortment line items: Zolotye Lepestki and Cherniy Briliant. Anniversary for the May Company year 2006 brought to Maisky tea record quantity of awards and letters of commendation! Honorary decorations, gold medals and letters of commendation have been received at various international and Russian exhibitions. Then Maisky tea was included into the BEST
RUSSIAN BRANDS list, the rating of the most successful and known Russian brands. In 2007 Maisky again receives high awards in the Best Product competition of the international PRODEXPO exhibition, and also receives the prestigious award Superbrand-2007 in the Tea category. Acknowledgement of Maisky as the most popular among Moscow consumers tea brand by results of the independent BrainSticker Rating FMSG research also became important achievement of the company. In 2008, at the international PRODEXPO exhibition, the new line of Maisky from natural fruit and herbs has been presented for the first time, and in 2009 the teas from this line have been awarded a gold medal of the Best Product competition at the PRODEXPO exhibition. And in 2010 Maisky tea again confirms Brand No. 1 status in the Tea category of a national prestigious National Brand award. Today Maisky tea confirms its awards, being one of the most known and recognizable tea brands in Russia. This premium natural tea repeatedly proved its high quality to consumers, passing every possible test and certification. All products produced under the Maisky tea brand are approved by the Russian Center of Testing and Certification (Rostest). Representing today the unique tea collection consisting of refined sorts of Ceylon, Indian, Kenyan and also green Chinese and fruit herbal tea, Maisky tea grants you its naturalness, use, love and care, becoming even more modern, perfect and unique.
Source: Customs Cervice of Ucraine
Tea, main supplier countries
Tea Import/Export in different forms
Description
Data for Oktober 2010 — March 2011
Code
Statistic of tea turnover in Ukraine
kgs
%
US Dollars
Import %
kgs
%
US Dollars
Export %
REVIEW&STATISTICS
FOR SUBSCIBERS ONLY
17
18
Euromonitor International discusses the state of the market, the competitive landscape and the demographic challenge faced by manufacturers.
FOR SUBSCIBERS ONLY Hope Lee, Senior Beverages Analyst at Euromonitor International
BELARUSIAN TEA AND COFFEE: SMALLYET RESILIENT MARKET WITH POCKETS OF OPPORTUNITY
HOT DRINKS
REVIEW&STATISTICS
REVIEW&STATISTICS
in Belarus Chart 1
% y-o-y Growth
Belarus: Coffee Off-trade Value Growth, US$, Fixed 2010 Exchange Rate
RUSSIAN INFLUENCE
Eastern Europe Belarus
Source: Euromonitor International
DEMOGRAPHY AND THE LONG-RUN PROSPECTS
FOR SUBSCIBERS ONLY Chart 2
% y-o-y Growth
Belarus: Tea Off-trade Value Growth, US$, Fixed 2010 Exchange Rates
Eastern Europe Belarus
Source: Euromonitor International
19
TEA AND COFFEE FACE OFF AS COMPETITION HEATS UP WITHIN HOT DRINKS IN INDIA
HOT DRINKS 20
The average Indian consumer has an inherent preference for tea, consumed with either breakfast or a midday snack. However, coffee and other hot drinks have steadily increased their presence as substitutes to tea and this has nurtured growth for nationally renowned brands. Sulabh Madhwal, Research Analyst at Euromonitor International, captures industry concerns and tracks growth opportunities in the midst of the brewing competition.
LOCALISED PRODUCTION
and coffee.
FOR SUBSCIBERS ONLY
al pricing for these commodities.
DOMESTIC CONSUMPTION DOMINATED BY UNPACKAGED/UNBRANDED VARIANTS
ed by them.
the country.
tea value sales in the same year.
REVIEW&STATISTICS
in India
WITHERING DOMINANCE OF TEA
Chart 1
Total Production (Branded and Unbranded Hot Drinks) vs Total Volume Sales (Branded and Packaged Hot Drinks)
FOR SUBSCIBERS ONLY
Source: Euromonitor International
Chart 2
Total Volume Sales (Branded and Packaged Hot Drinks) Growth 2006-2010
BRANDED VARIANTS HAVE STRONG GROWTH POTENTIAL
FOR SUBSCIBERS ONLY Source: Euromonitor International
SHARE-OF-THROAT CHALLENGE
21
REVIEW&STATISTICS
Is «SUMATRA» Synonymous with «SPECIALTY COFFEE»? Andrey Elson, General Manager, KLD Coffee Importers (a Company of Neumann Kaffee Gruppe)
Photos are kindly provided by A. Elson
Sumatra is a wonderful island, known to many Russians, thanks to the work of the Polish film director Juliusz Machulski, as the place where, in the beginning of the 20th century, American gangsters-cumentomologists traveled to catch butterflies. Butterflies are not easy to spot there, but coffee is abundant and comes in many varieties. I’d like to discuss the topic of Sumatran coffee in some detail, since, in my opinion, this region deserves our special attention. GENERAL INFORMATION Coffee production in Sumatra is 65-70 thousand tons, of which 80-85% is exported. Traditionally, Arabica coffee has been grown near Lake Toba in the north (40-45% of the total harvest) and in the Aceh province (55-60%). It is grown on small private plantations, whose average size varies from 1 hectare (Toba) to 2 hectares (Aceh), with yields rarely exceeding 1 ton per hectare. All Arabica, with the exception of Kopi Luwak, is called Mandheling. At the same time, some traditional names are still in use: Lintong is the coffee grown in the Lake Toba region and Gayo is the coffee from Aceh. In
22
Sumatra, there is no fully-washed Arabica; the process used is best described as “semiwashing” or, more precisely, “washing without fermentation”.
PRODUCTION STAGES
The coffee production process goes through several stages. First, farmers gather the berries and, after an hour of soaking to remove unripe berries, remove the shell and pulp with a hand pulper. It is important to remove unripe berries, as they tend to yield defective beans. The resulting parchment coffee is washed for several minutes and laid out for the first round of drying right there on the farm. After this, the “wet”
COFFEE&TEA INTERNATIONAL # 2/2011
parchment is sold to the mill for further processing. During the second stage the parchment is dried to about 40% moisture, the parchment shell is removed, and the coffee is dried further to 20% moisture. The resulting product, called “asalan”, is sent to exporters’ factories for further drying and sorting. At every stage, the drying method is strictly open-air. The sorting takes place in two or three stages. Depending on the method, the end product is called “Double Picked” or “Triple Picked”. The sorting process includes one or two mechanical stages and one manual stage. The resulting coffee is called “Grade 1 Mandheling”. The
beans that are removed are Grades 3, 5 and 6, with the last grade supplied primarily to the domestic market. The process just described is common to both growing regions, but there are differences in cultivation methods. But before we come to those, I’d like to say a few words about the tracking system successfully implemented in Sumatra by Starbucks beginning in 2005. Here’s how it works. Every plantation is assigned to a particular mill, and every mill – to a particular exporter. Thus, farmers are not free to sell their coffee to whomever they want. The number of plantations assigned to a single mill may vary from a few hundreds to a few thousands. Exporters use the services of professional agronomers to provide all necessary assistance to their “assigned” farmers. As a result, for each specific coffee lot an exporter can easily point the buyer to the specific area, or even to the specific individual plantation from which the lot originated. This system makes Sumatran coffee attractive to buyers from the USA and Japan, the traditional markets for specialty coffee.
REGIONAL VARIATIONS IN COFFEE FLAVOR Now back to the differences in the growing conditions. In the Lake Toba region, coffee plantations are also used for growing vegetables, primarily cabbage. Cabbage yields three crops a year, and is grown with heavy use of fertilizers. By contrast, in the Aceh province coffee plantations are surrounded by forests, and many plantations hold organic certifications. Hence considerable differences in the flavors of coffee grown in these two regions. While Lintong is slightly sour, and some lots resemble in flavor Central American varieties, Gayo coffee is distinguished by its full body and a tart taste.
COFFEE STORAGE A unique feature of the island is the houses of the Batak people with their spacious air-cooled attics that always allowed to store the coffee harvest for a long time and to sell portions of it as need arose. Coffee was stored as parchment and frequently remained in that state until the end of the rainy season. Shelled beans had a pronounced yellow color, which gave this
24
variety its name – “Golden Sumatra”. Some coffee was stored in this way for years, and the color gradually turned to light brown. This coffee lost its acidity but acquired a fuller body; it was called “Aged Sumatra”. As the demand for Sumatran Arabica increased, such production methods became rare, and quantities of this coffee became very limited. Soon, however, people learned to distinguish batches of aged coffee based on their harvest year, and today the harvest year is one of the factors that affect price. We should note here that we are not talking about hundreds of tons of coffee, but only about a few hundred bags, most of which are sold to the USA and Japan. The producers are apprehensive about storing coffee for several years, since later harvests could very well yield a better cup; so the demand for their harvest is not guaranteed. Naturally, this puts a downward pressure on the amount of coffee produced in this way.
KOPI LUWAK The famous Kopi Luwak deserves a separate mention. Many people talk about it, but few know that the Aceh province is very likely the last place in Indonesia where luwaks are free to choose what and where they eat. And that’s why Kopi Luwak from Sumatra is truly wild. I am sure that high demand for organic coffee will save the forests of Aceh, and so will preserve the luwak population. This coffee will continue to be available, albeit in small quantities.
A LOOK INTO THE FUTURE It is worthy of note that Sumatra has fairly large areas still untouched by agriculture and available for new coffee plantations. At the same time, coffee is not the only crop grown on the island. Current prices certainly influence the choice of the crop. Deciding in favor of coffee will go some way toward meeting the growing demand for Sumatran Arabica. Of course, this will have little impact on supply and demand globally, but it will ensure the availability of coffee for those roasters who deliberately choose to buy Mandheling. The availability of land also solves the problem of plantation fragmentation: if a family has two grown children, both of whom are interested in working the land, then it can simply purchase a new plot for
COFFEE&TEA INTERNATIONAL # 2/2011
one of them. Unfortunately, it is quite common for young people to leave their villages for large cities, which creates a shortage of agricultural labor.
PRICE FORMATION Thinking about various aspects of coffee production in Sumatra, I kept coming back to the issue of price formation; so I have to say a few words about it. This year, Sumatra is having a very poor Arabica crop, about 30% less than in previous years. This means that farmers can’t take full advantage of high prices. Still, they are earning more than in previous years and, consequently, will be able to take much better care of the coffee plants between growing seasons, improving the quality of the next crop. Although production is decreasing, the volume of exports to two primary destinations – the USA and Japan – remains unchanged. Prices are following global trends, but the premiums for quality are virtually the same. The main engine of price formation is the interplay of supply and demand, and not premiums for Columbian Arabica or a shortage of Brazilian Santos. And this can only mean one thing: the quality factor trumps the price factor and guarantees stable demand. This coffee will never be cheap and will never be used to produce mass-market brands. And that is precisely what makes it attractive to those who are interested and know how to work with it.
ONE MORE THING… In conclusion, I’d like to say a few words about coffee consumption. In Indonesia, as in other coffee-producing countries, the consumption of coffee is growing at a healthy rate. This includes instant coffee as well as Kopi Luwak. In Jakarta there is a chain of cafйs that specialize in Kopi Luwak. Also, Indonesia has a large number of Starbucks cafйs. Finally, I’d like to tell you how impressed I was by coffee with rice, a beverage popular in rural northern Sumatra. Roasted grains of rice are ground together with coffee beans and brewed with sugar. I highly recommend it!
I’d like to thank the RoBoCo and P.T. Menacom companies and all the farmers and factory workers in Siborong-Borong for their hospitality and help. Personal thanks to Mr. Budi, who assisted me with cup testing and coffee selection.
Our machines are used in Russia by NADIN company
AGENT IN RUSSIA: TEA HOUSE TONUS, St. Dubininskaya, 90 office #402 115093 Moscow Tel. 007 495 9527154 Fax 007 499 2379908 E mail:tonus@teahousetonus.ru
REVIEW&STATISTICS
Đ•VOLUTION AND PROSPECTS OF
COLOMBIAN COFFEE PRODUCTION
Diego Pizano1
During the last 100 years, the coffee sector has been very important for the the economic and social development of Colombia .It has played a key role in the balance of payments, economic growth, employment generation, public finances, income distribution and regional development. Its historical significance can be compared with that of the electronic industry in Japan, the chemical industry in Germany or the auto industry in the US. The main purpose of this article is to provide an overview of the evolution of Colombian coffee production and to discuss its future prospects. COFFEE AND ECONOMIC DEVELOPMENT:
slide 1
The expansion of the coffee sector in the XX century had strong multiplier effects on the Colombian development process. It offered the possibility of using surplus land and labor. It stimulated the growth of the industrial sector and gave impetus to the financial, trade, transport and services sectors. It was the main engine of growth of the Colombian economy in the XX century. At one point it generated more than 80% of Colombian exports. Its considerable capacity to create employment was as valuable as its contribution to the balance of payments. This employment and subsequent cash flow fueled a new level of purchasing power which was distributed among many segments of the population. Colombia has a large territory. Its total area (1.1 million square kilometers) is larger that of Germany , France, Netherlands and Greece combined. Coffee is planted in the mountains mainly by smallholders (see slide No. 1 and No. 2).It is grown in 500 of Colombia’s 1022 municipalities and it is the most important agricultural product of the country.
slide 2
PRODUCTION, EXPORTS AND STOCKS: In 1910, Colombia produced around 600,000 bags of coffee(60 kilograms).Between 1990 and 2000 it produced on average 12 million bags. The area planted in coffee increased from just 60,000 hectares in 1910 to 910,000 hectares in 2010.In 1950, the coffee sector generated 10.9% of the Gross Domestic Product(GDP) of Colombia. Nowadays is less than 1% (see slide 3).This is the result of a very significant process of transformation and diversification of the Colombian economy. The country has a strong industrial sector, a dynamic services sector and it has become a significant oil, coal, nickel and gold exporter. It also exports products like fresh cut flowers, sugar and other agricultural products in sig1
Former economic advisor to the President of Colombia. He is currently the President of the 4C Association(Bonn, Germany) and the Chairman of the Board of the University of the Andes(Bogot<, Colombia).This text is based on the presentation made by the author at the NCA centennial meeting(New Orleans, USA, March 19th, 2011).
26
COFFEE&TEA INTERNATIONAL # 2/2011
slide 3
nificant quantities. The economic role of coffee has diminished but its social role continues to be very important. In terms of employment it employs directly 645,147 people (slide No. 4).More than 2.5 million people live permanently in the coffee growing areas(out of a total population of 46 million people). Between 1915 and 1990 Colombian coffee production grew faster than the worldâ&#x20AC;&#x2122;s coffee production (see slide No.5). Between 1990 and 2011 it grew slower. The share of Colombian production in the global production has been on average 12.5% during the last 60 years. Given the fact a high proportion of Colombian coffee is exported, there is a high correlation between the share of Colombian production and the share in global coffee exports. In slide No. 6 we can see a trend similar to the one we saw in the previous slide. In terms of stocks, Colombia accumulated a significant proportion of inventories hold in producing countries (slide No. 7), especially when the International Coffee Agreement was in operation(1963-1989). Today the country has a low level of stocks(less than 1.5 million bags), which correspond to the minimum working level.
slide 4
THE NATIONAL FEDERATION OF COFFEE GROWERS:
Colombia is the main producer of high quality washed arabicas at the world level. To understand the evolution of the Colombian coffee sector it is necessary to talk briefly about its institutional framework. Since 1927, the National Federation of Coffee Growers(FNC) has been working in improving the economic and social situation of coffee farmers and their families. Disease resistant and more productive varieties have been developed. Integrated soil conservation and pest managements systems have been implemented. Natural resources are being used in a sustainable way. The FNC provides access to credit and to market information to farmers and gives them technical assistance on good agricultural and management practices. Postharvest technologies have been improved. Several hundred schools and hospitals have been constructed. Several thousand kilometers of roads have been built; housing schemes have been developed. Exports earnings have been maximized. The NFC is one of the biggest agricultural NGOâ&#x20AC;&#x2122;s in the world. It is a private, non profit, non partisan organization serving 500,000 coffee growers and their families. Its governance structure is democratic. Farmers elect their coffee leaders at the town, regional and national level. Its activities have mainly financed with a special contribution on coffee exports which feeds the National Coffee Fund. The comparative advantage of coffee production in Colombia is derived from factors such as climate, labor productivity, topography and quality from also from its coffee policies and institutions.
slide 5
27
slide 6
The NFC has been studied by highly qualified external experts. Let me quote just two. Professor Robert Batesfrom Harvard has stated that “The FNC has maximized export earnings, has provided valuable public goods, has improved productivity and has reduced urban bias and transfers to other sectors”2 . The World Bank in a 2002 report3, has said that “ Coffee Institutions in Colombia are not perfect but the FNC is the most successful coffee sector organization in the world.”
MANAGEMENT OF COFFEE BOOMS AND CRISIS: International coffee prices exhibit what mathematicians call a random walk. Long periods of low prices are followed by short periods of high prices as it can be seen in slide No.8. Prices in constant dollars have been volatile. They reached their peak in 1977 when a pound of coffee was around 8 dollars in real terms. It is very interesting to note that the long term average(1821-2011) of the Colombian coffee international price is 2,76 us cents per pound, not very different from the current price. Those analysts who think that the current price is very high by historical standards are not well informed about the trend in real prices(that is to say in constant dollars). High coffee prices can create welfare but they can also generate problems. In 1985-86 coffee prices climbed to $4.50(in 2011 dollars) and Colombia faced the threat of the so called Dutch disease. This term refers to the negative impact of high inflows of foreign exchange which may lead to a strong appreciation of the currency, high fiscal deficits and a contraction of the industrial sector. At that time, I was the economic advisor to the President of the country and we had to design a strategy with the Minister of Finance and the Head of the Central Bank to reconcile coffee policies and macroeconomic goals. Economic growth was stimulated, inflation was kept under control and unemployment was reduced. We managed to avoid the Dutch disease. The World Bank examined this experience and concluded that it was one of the most positive models at the international level of how to manage a commodity boom.
slide 7
slide 8
SUSTAINABILITY OF COFFEE PRODUCTION: As I explained in a coffee conference in Dalat, Vietnam4 (3), Colombia’s strategy on sustainability is inscribed in the National Development Plan which recognizes the importance of working with the three dimensions(economic, social and environmental).Given the fact that the country has the world’s second highest index of biodiversity, special attention to the preservation 2 Robert Bates, Open-Economy Politics, The Political Economy of the World Coffee Trade. Princeton 3 Daniele Giovannucci et al, Colombian Coffee Sector Study. CEDE, University of the Andes, Bogotб, 4
University Press, 1997. October, 2002. Diego Pizano, “The Colombian Coffee Model”, Conference on coffee sustainability, Dalat, Vietnam, November 2009.
28
COFFEE&TEA INTERNATIONAL # 2/2011
slide 9
of natural resources has been rising over the past 20 years. At the International Coffee Organization and at the meetings of the Common Code for the Coffee Community Association Colombia has stated that economic viability is the foundation for social and environmental sustainability. The FNC has participated in the 4C initiative because the main stakeholders managed to prepare a balanced and symmetrical code. All actors in the coffee value chain should derive tangible benefits. Coffee farmers in Colombia are working with several sustainability initiatives including 4C, Rain Forest, Fair Trade, Utz and organic codes. In the case of the 4C more than 32,000 farmers are working with the code. More than 2.4 million bags have been produced according to the 4C criteria. The FNC is using its institutional strengths to support this process. The purchase guarantee, the extension service, information systems, support programs, traceability and quality policies are working in that direction. A continuous improvement process has been framed within the FNCâ&#x20AC;&#x2122;s strategic plan which seeks to enhance the path towards sustainability. Farmers are investing on waste management systems, warehouse farm infrastructure, washing stations and protection equipment(to handle pesticides). The FNC is an entity committed to sustainable development. For Colombian coffee farmers, sustainability is not just a trend; it is a way of life.
slide 10
TRENDS IN COLOMBIAN COFFEE PRODUCTION: Coffee production in Colombia decreased during the last years due to a variety of factors: climate, decrease in area and yield, insufficient fertilization and insufficient profitability. As it can be clearly observed in slide No. 9, yields per hectare increased in a significant way between 1975 and 1992 but then started to decrease. Since 2009 yields are gradually recovering. More than 200,000 hectares of coffee have been renovated in the country during the last three coffee years (see slide No. 10).This development will impact the level of coffee production in a positive way. Younger trees are more productive and a more resistant to diseases. In the next few years, Colombian coffee production should recover and it could reach more than 15 million bags in 2016 (see slide 11) if the climate Is normal, fertilizer prices are reasonable and international prices are remunerative. A competitive exchange rate is also needed to ensure this scenario becomes a reality. On the other hand, the Colombian economy is performing well and real wages have been growing faster than prices paid to farmers. More innovation is needed. Brazilian large scale mechanization is not possible in Colombia because of the steep slopes, but there is scope for productivity increases.
slide 11
29
ECONOMICS
NEW REALITY FOR THE TEA MARKET:
The worldâ&#x20AC;&#x2122;s largest tea importer has joined forces with its neighbors In 2007 Russia, Belarus and Kazakhstan signed a treaty to form a customs union. Now these three countries will have a common framework for import and sale of tea. Details from Ramaz Chanturiya, General Director of the Rusteacoffee Association.
30
COFFEE&TEA INTERNATIONAL # 2/2011
ECONOMICS
n order to have better idea about
I
INTEGRATION STAGES IN THE EURASEC
the nature and purpose of the Customs Union formed by several
ECONOMIC UNION (common currency)
former Soviet republics, we need to look at the big picture. The creation of the Union took place as part of a general
COMMON ECONOMIC SPACE COMMON MARKET (free movement of goods, capital and services)
trend towards economic integration within
the
Eurasian
Economic
Community (EurAsEC). EurAsEC was
CUSTOMS UNION (a common customs territory with unified import duties and technical regulations)
created in 2000 and its members are Belarus, Russia,
Kazakhstan, Tajikistan
and
Kyrgyzstan, Uzbekistan
(Armenia, Moldova and Ukraine are observers). The process of integration within this Community is comprised of several stages.
FREE TRADE ZONE (no import duties for goods originating in the member states)
Immediately after the EurAsEC was formed, its member states created a free trade zone, abolishing tariffs on
to join. According to my sources, the
imports and unified technical and
goods manufactured within its bor-
Russian
actively
safety regulations. In particular, the
ders. The current stage is the creation
engaged in negotiations with prospec-
members of the Union now have a uni-
of the Customs Union, which so far has
tive members of the Customs Union.
fied import tariff on tea as well as
only three members; however, other members of the EurAsEC are expected
government
is
The Customs Union has already implemented
unified
tariffs
on
common quality and safety requirements for this beverage.
31
ECONOMICS
The next stage will be the creation of a common economic space – a common market with free movement of goods, services and capital. And the
scientific bodies involved in product
that had been in effect in Russia. To
certification process;
remind you, there is no tariff on
• Agreements on veterinary, sanitary and phytosanitary measures;
tariff on packaged tea depends on
final stage is the creation of an eco-
• An agreement on plant quarantine.
the type of packaging: tea packets
nomic union with a common currency.
So – what do we have now? The
get charged 20% but no less than
Thus, the creation of the Customs
creation of the Customs Union gave us
Union is in accordance with the eco-
a common market for tea, with a vol-
less than
nomic integration plan within the
ume of up to 205 thousand tons.
vided a very good stimulus for the
framework of the EurAsEC.
0.4/kg, and teabags – 20% but no 0.8/kg. These tariffs pro-
Clearly, a common tariff and non-tar-
creation of local tea-packaging indus-
All Customs Union activities are
iff regulations create a perfect envi-
try: for example, 85% of tea sold in
coordinated by the Commission, a
ronment for the growth of local oper-
Russia is packaged locally. Total
supranational body that makes all
ators, or, more precisely, the compa-
investment in the industry is more
decisions related to customs tariffs
nies that are already in this market;
than
and product safety standards.
these include Russian and Kazakh
Union member states have become
300 million. Now the Customs
firms as well as large transnational
even more attractive to investors,
have already signed several treaties:
companies. Thus, the removal of trade
which promises great economic bene-
• An agreement on the movement of
barriers between the three countries
fits to local companies.
products subject to mandatory cer-
and the protection of common tariff
tification within the borders of the
and non-tariff regulations resulted in a
Union;
significant boost for local operators.
Members of the Customs Union
• An agreement on mutual accredita-
A few words about tariffs. The
tion of national administrative and
Customs Union has adopted tariffs
RESTAURANT & HOTEL
WORLD www.mirrestorana.info/en
32
importation of loose-leaf tea, and the
COFFEE&TEA INTERNATIONAL # 2/2011
The only wild card in the game is the possible entry of Russia into the WTO and the impact of this entry on the Customs Union.
ECONOMICS
THE FUTURE
OF THE TEA MARKET: innovations and traditions Denis Shumakov Tea specialist, Turquoise Tea Co., Ltd.
The interplay between tradition and innovation, and their roles on the tea market and within the tea culture, depend entirely on the approach to tea chosen by the participants in that market and the bearers of that culture. Simplifying greatly, there are two main approaches: we can call them “the commodity approach” and “the tea-centered approach”. THE COMMODITY APPROACH This model views tea as a resource around which a business can be built, turning this resource into a product with a certain number of features desired by the consumer. Tea culture, in this case, is one of the tools for raising the price of tea and for increasing sales. This approach is rational, it has dominated and will always dominate. Tea is a commodity suitable for generating profit, no different from oil or corn. In order to make money on tea, we don’t need to change the tea itself; on the contrary, it should be of consistent quality and have characteristics familiar to the consumer. It can be “spruced up” every once in a while with various marketing tricks (health benefits, new packaging, new shape, etc.), but the basic characteristics – low price, familiar and simple taste and flavor, a specific gastronomical niche – should be left alone. The commodity approach dictates that every development should be a development of the business of tea, and not a development of the tea itself (I am simplifying a bit, of course, but only in order to make my point clear). With the commodity approach, tradition and innovation can pull the tea market and the tea culture in the opposite directions because they are, in this case, instruments of different participants in the market and the culture. Innovation is a tool of tea producers and wholesale vendors. The main purpose of innovation for them is to reduce their manufacturing, vending and
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COFFEE&TEA INTERNATIONAL # 2/2011
logistical costs without allowing the quality of tea to drop below the level set by the market or the law. Innovations can take place at any stage of the production process and can be as diverse as new methods of pest protection, tea plant cloning, automation of tea auctions, etc. Traditions are a tool of the retail vendors who work directly with the consumer. This tool can be used to significantly raise the retail price of tea “out of the blue”, with virtually no investment. A particularly effective method for doing this is what we may call the “panic trick”: first, the consumer is informed about an impending (or the actual) demise of a great tea culture, and then urged to scoop up the few remaining artifacts from that culture’s last adepts. In the end, the choice between tradition and innovation on the commodity approach is entirely a matter of securing the greatest profit: it has nothing to do with the unique nature of tea and is driven entirely by considerations of economic efficiency and by developments in the market. For example, if clever craftsmen invent a new and less expensive material for making tea bags, then the market steps on the path of innovation; if, on the other hand, farmers in Kenya stop using tea harvesting machines in favor of hand-harvesting, then the market returns to the path of tradition…
THE TEA-CENTERED APPROACH On the tea-centered approach, tea is considered to be a means for deriving a host of
ECONOMICS
complex pleasures: gastronomical or collector’s pleasures, status-related or existential pleasures, etc. This is the approach of tea enthusiasts who decided at some point that the best way of satisfying their quest for various tea-centered pleasures is to start their own tea business. In spite of the apparent lack of viability of this approach (it’s too idealistic and antimarket), it can be encountered in its pure form as well as (and much more often) in combination with the commodity approach. The most interesting thing about this approach is that it is taken by those individuals and companies who are prepared to alter the nature of tea itself, its brewing, serving and drinking methods, often against considerations of economic efficiency. Every development on this approach is first of all a development of the tea itself, and only then a development of the business of tea. Within this approach, the opposition between tradition and innovation is possible for entertainment purposes only. In reality, tradition and innovation are bound together tightly and cannot exist apart from each other. Simplifying once again, on the teacentered approach tradition is the basis of and a tool for constant innovation. The simplest and most obvious example of such a tradition-based and traditionenabled innovation is the unique tea club culture created in Moscow in mid-1990s. Taking as a foundation Chinese tea and tea accessories (this is the traditional component), tea clubs created a whole layer of gastronomical, emotional and status-related experiences unfamiliar to a large majority of tea aficionados in Russia (this is the innovation component). The popularity of these Moscow-China-style tea clubs has now passed its peak, but they have made a profound and, let’s hope, lasting impact on the Russian tea culture. There are many similar examples. The introduction several decades ago of ceremonial tea pairs, the next stage in the development of pressed tea taking place right now and right here in Russia, the invention of GABA-tea, the introduction of oxygen-free tea packets, new methods of brewing and serving tea in restaurants – all these innovations are based on tea traditions, and could not have happened without them. And even the uninspired work of some scientists aimed at creation of tea extracts and especially tea concentrates often has as its aim the invention of a paradigmatically innovative product with flavor and properties maximally close to those of the traditional tea. Thus, the interplay of tradition and innovation on the tea-centered approach is nothing more than a topic for a friendly conversation among a group of decent and intelligent people gathered around a well-furnished tea table. And the development of the tea market and the tea culture will pro*
ceed as it always has: through innovation based on tradition.
PRESERVATION AND USE OF TEA TRADITIONS All the deliberations in the above paragraphs have one serious flaw: they do not answer the simple question, “What is to be done?” What are we to do right now if we want to develop the tea market and the tea culture in ways that are both interesting and profitable? In order to answer this question, all we need to do is look into the recent past, the period from the end of the XIXth through the beginning of the XXth century, known as the “golden age” of the Russian tea culture. Or literally a few decades back, at the time when an unusual tea from Krasnodar, an interesting tea from Georgia and many other varieties of tea were created by the tea industry of the former USSR. We now have fairly complete information about the tea culture and the tea market of those times and we can even reproduce the tea ceremonies of a hundred years ago (for example, taking as a starting point the works of the Russian painter Boris Kustodiev) or try to * cash in on the fame of the Elephant Tea . But all these moves will fall short of the main goal of preserving the continuity of the tea culture. We have almost no information about the taste, aroma and other properties of tea from our recent past. Our own tea traditions cannot serve as the foundation for our innovations, because these traditions have, for the most part, been lost. If traditions are to serve as the foundation and the primary mechanism for stimulating innovation, we need to learn how to
preserve and use those traditions. And in order to do this we need to overcome the main obstacle in the path of such preservation and use. The most suitable bearer of information about the tea traditions is tea itself. But, unfortunately, tea cannot be “conserved”. The impossibility of preserving naturally the taste and aroma of a particular quantity of tea leads to the situation in which we are connected to the aforementioned “golden age” of the Russian tea culture by many links – material, social, traditional – but tea itself is not one of them. We have a pretty vague idea about the tea that our not so distant ancestors enjoyed, and we will never be able to fill that gap. The tea that we drink today is a part of the contemporary Russian tea tradition, and its natural foundation. It too cannot be “conserved” – and several years from now we will not even be able to trace the evolution of the contemporary tea preferences in our country. Unless, of course, we start preserving information about the contemporary tea market and tea culture. Varieties of tea offered for sale, their packaging, formal descriptions of as many kinds of tea as possible, their photographs, emotional characteristics of their taste and aroma, methods of brewing and serving – all that information needs to be gathered, preserved and systematized. It is necessary to meticulously record every detail of our present relationship with tea, so that several years or decades from now, when this present becomes past, we could use this information for the benefit of our tea business, regardless of the approach to tea we choose to take.
“Elephant Tea” – the name of a brand of tea popular in the USSR (Editor’s note)
35
ECONOMICS
VERY PURE AND VERY EXPENSIVE In Russia today there is still a very limited demand for organic tea and coffee. Andrei Panarin
Are we doomed or saved by our illusions? Sometimes it happens that a consumer is mistaken in thinking that he has “caught on” to the latest trend. A marketer can also be mistaken in trying to introduce a product to the Russian market while using methods developed in the West. In doing so, he would fail to take into account such seemingly ephemeral factor as a specific national mentality. And for the Russian consumer this factor is often as important as the mere availability of money for the purchase of a high quality product such as ecologically pure tea and coffee. A DIFFERENCE IN STANDARDS Let’s begin by asking a very simple question: do we want to eat high quality food? Do we want to drink high quality tea and coffee? Will someone say “No”? The answer is obvious. Now another very simple question: will a manufacturer advertise its product as spoiled, or full of chemicals, or made with low-quality ingredients? Of course not. We must remember that quality and price are closely tied, and that higher quality generally means a higher price. For example, we are willing to pay serious money for high quality Chinese tea, knowing that China is one of the recognized leaders of the tea world. Even though the quality of food products in general is a frequent source of complaints for Russian consumers, complaints about the quality of tea and coffee are heard much less frequently. In addition, we know that government quality standards for food are much stricter in Russia than they are in Europe, let alone in Asia. Of course, whether or not they are always observed in practice is a different question. Nonetheless, Russia, for example, uses 5 times less chemical fertilizer to grow vegetables than does Europe. And 20 times less than China. And herbicides and pesticides are also used on a much smaller scale. Is it the case, then, that tea grown in China can be designated as organic according to the Chinese standards, but wouldn’t make the cut according to the Russian ones? LOVE REQUIRES MONEY The point of the previous paragraph is not to boost provincial pride but to show that when it comes to formulating a marketing strategy for a product promotion, it is crucial to convince the consumer, especially the consumer in a nascent market, that the product really has all the properties it is claimed to have. And in the case of organic products, such conviction doesn’t come cheap. The product must be certified. Licensed labs must constantly confirm that tea and coffee really meet the organic standard. Besides, you have to realize that it is not quite so easy to find ecologically pure areas for industrial-scale cultivation of tea and coffee. And both tea leaves and coffee berries need to be harvested exclusively by hand. But non-organic varieties of tea and coffee are also frequently claimed to be harvested by hand… How, then, can a consumer make sense of all these complications? How can she be sure that the product in question truly is organic and that the lab results and certificates are real? People of the Earth have long been thinking about improving the health of the planet. Part of this process was the return to ecologically pure foods. At the same time, this move to organic is also a part of a fashion trend that started about 30 years ago in Europe and a bit later in the USA and Canada. According to the numbers published by IFOAM – International Foundation for Organic Agriculture Movements – the global sales of organic products today are no less than US$50 billion. Is this a lot or a little? Of course, the number by itself isn’t very large, as far as markets go; for comparison, the market for coffee and tea in Russia alone in 2010 was estimated at US$4.5 billion. Nonetheless, in the West the organic sector is growing at about 10%
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annually. In the US, about 75% of consumers buy organic products at least once in a while. The total US organic foods market is over US$18 billion, in Germany – at least US$11 billion. One of the most “organic” countries is Switzerland, where organic foods make up about a third of the total food sales; in Germany, this number is about 1/4. But even in those environmentally conscious countries organic coffee and tea occupy somewhat of a special place on the shelves of regular as well as organic supermarkets. These beverages are perceived as an exclusive province of the rich and the true gourmets. It is not surprising, then, that the price for these products varies widely, exceeding the price of the non-organic varieties by 25-50%, but sometimes by as much as 1000%. In order to qualify as organic, a product must have 95% strictly organic ingredients. Besides, the product must be protected from contamination by a suitable packaging that must itself be organic and reliable enough so that only physical damage could jeopardize the organic status of the product. Why is everything so complicated? Because manufacturing technology for organic products – including tea and coffee – has to meet very strict requirements. An organic product has to be absolutely pure. Specifically, coffee and tea have to be grown without any pesticides, herbicides or fertilizers, without using artificial flavors and other “unnatural” ingredients. And, of course, the use of any genetically modified ingredients is absolutely out of the question. Luckily, this last requirement for tea and coffee, unlike for many other products, is easy to meet, since methods of genetic modification for these products simply do not exist. Purity requirements prohibit the use of chemical methods for pest control; so, then, how is the pest problem to be solved? – Specially trained birds have to be used. Also, it is not allowed to weed the plantations mechanically, only by hand. Equally strict requirements have to be met by processing technology – for example, withering, rolling, fermentation and drying of black tea, or harvesting, sorting, cleaning, roasting, blending and packing of coffee beans. A VERY TINY MARKET Of course, the Russian organic food market is growing: organic products appeared in our country ten years ago. It is not easy to estimate its size: educated guesses range from US$60 to US$160 million, which is not very impressive. But what are the prospects for the development of the organic tea and coffee market in Russia? We have conducted a survey among market professionals with many years of tea and coffee sales experience. “What is your estimate of the size of the organic tea/coffee market?” The majority of respondents had a hard time coming up with an estimate, because this segment of the market is vanishingly small. For example, Anton Kudreiko, COO of the Russian holding company “Sapsan”, states, “According to the latest data, even in the most developed countries organic products make up only a tiny fraction of the market. In our country this market segment is in its embryonic stage, and it is impossible to provide a reliable estimate”. Some respondents estimated the sales
COFFEE&TEA INTERNATIONAL # 2/2011
of organic coffee at 25-40 tons annually (about 50 million rubles). “How fast is the organic tea/coffee market growing?” Here the responses were even less optimistic. With respect to organic tea, the consensus was that the growth is very insignificant but that there weren’t really any studies done to support this conclusion; with respect to coffee, the estimates differed widely, ranging from 5-20% increase to 5-20% decrease. “What is the average price premium for organic tea/coffee?” This question presented no difficulty. Organic tea, according to the survey results, costs 20 to 100% more than “regular” one; organic coffee, on the other hand, can command a premium form 10 to a whopping 500%. For example, the “Blues” brand of coffee sells at a price that is 10-20% higher than nonorganic varieties. And the “Clipper” brand of tea costs 500% more. “What retail formats are optimal for organic tea/coffee?” The overwhelming majority agreed that any supermarket format would be suitable for the sales of organic beverages. Some, however, think that supermarkets would have to create special departments to handle such sales. Only a handful of specialists stated that organic tea and coffee can be sold successfully only at special organic stores or gourmet boutiques. “What stands in the way of development of this market segment in Russia?” This question elicited the most detailed and precise responses. Obstacle number one is the almost complete lack of information about organic tea and coffee. Second the supporting regulations and legislation are clearly behind the times. Finally, income levels among general population are not sufficient to support the sales of such expensive products. While it is true that people are generally willing to pay a premium when it comes to their health, they need to be convinced that organic tea and coffee can, indeed, bring additional health benefits, and that these benefits are significant enough to justify higher prices. Conventional advertising will not do the job here, since the typical consumer is already overexposed to advertising; a more complex approach is needed. The same factors – consumer education, supporting legislation and increase in the standard of living – were mentioned when the question was reframed to ask what would help the market grow. The majority of respondents were unable to estimate the number of companies that sell organic tea and coffee on the Russian market. Those who did give a positive response estimated the number of Russian companies as 1-3, and the foreign companies as 5-10. Among the brands represented on the organic market survey participants noted Twinings, Paulig, Illy, Jacobs, Tchibo, Blues, Clipper, Compagnia Dell’Arabica and Starbucks.
We have to conclude, then, that the Russian organic tea and coffee market is still in the earliest stages of its development, waiting for its consumer. A lot of investment is needed to create the supporting infrastructure and also to educate the consumer. This market is just too sensitive. Organic tea and coffee are expensive, and at the present moment it is difficult to convince the consumer to buy them. The road ahead will be challenging.
ECONOMICS
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THE «ORGANIC» QUESTION OR Why Don’t Consumers Have Access to Organic Coffee and Tea Alena Velichko
The issue of organic, bio- or, to use an alternative designation, “ecologically pure” tea and coffee has been discussed for a relatively long time. But different countries exhibit different levels of understanding of this issue. C&T Intl is offering to its readers a journalist’s investigation into the subject, conducted in Belarus. This investigation doesn’t claim to rise to the level of rigorous market research, but it will give you an idea of what customers and retailers know about organic coffee and tea.
“… I didn’t know that tea and coffee can be ‘non-organic’…” (from a conversation between the journalist and a retail customer) nterestingly, in Belarus there really is a lot of produce on the market that de facto meets the “organic” standard; it’s just that nobody calls such produce “organic”. Regular folks who grow tomatoes on their country plots without using chemicals are not going to call their crops “organic”… But everyone’s taste buds can readily distinguish between “organic” tomatoes and “artificial” ones. When it comes to tea, though, things are a bit different. Many consumers automatically think of tea as a very healthy, natural product, grown without using too much technology. Because of the lack of information about current developments in the tea industry, cus-
I
tomers in Belarus remain “blissfully ignorant” about real issues concerning the production of tea. It doesn’t occur to anyone to ask a retailer, “Do you sell organic coffee or tea?” After all, you don’t ask an obviously healthy person if he is healthy! You can just tell whether a person is healthy, and you can just tell whether tea is of good quality, and there is nothing further to ask. Thus, if many large coffee and tea retailers, who tune their offerings to consumer demand, justify their decision not to offer organic coffee and tea by the lack of such demand, the organic tea and coffee sector in Belarus may not develop at all.
“… Organic coffee? Hmmm… We have latte, we have cappuccino… Sorry, no organic…” (from a conversation between a customer and a waiter) fter we had asked the same question in about a dozen establishments, we realized that finding organic tea and coffee will not be an easy task: every time our request was met with utter confusion. The puzzled looks of waiters revealed that they have never been asked this question before. This lack of knowledge is not surprising, given that companies that supply restaurants do not work with organic coffee and tea. “Organic varieties of tea and coffee cost twice as much as regular ones. Lack of demand means lack of return on investment, and under current economic conditions we cannot afford to take a risk”, says Oleg
A
Severinchik, COO of “Caravan”, a large tea and coffee supplier in Belarus. His view is shared by many other vendors who know about the organic sector and who from time to time receive offers of organic tea and coffee from their suppliers, but decline those offers because “the time for organic has not yet come in Belarus”. There are, of course, those who try to break from the pack: for example, one vendor, the company called “Caffeine”, started offering organic Puerh at a price that, unsurprisingly, exceeds that of the non-organic varieties. Company sales representatives report that the question they hear the most is:
“Why should I pay more for organic when it smells the same as non-organic?” (from a conversation between a customer and a vendor onsumers are the same everywhere. They are cost-conscious, rational and know a little bit about everything. So if organic and nonorganic teas look the same and have the same flavor, the customer will seldom prefer organic, especially given current economic crisis. And especially if the vendor himself cannot explain what the difference is and what value the customer is getting for the additional cost. It is almost impossible to find organic products in stores, and so, when regular consumers hear the words “organic tea” or “organic coffee”, they try to make sense of them by analogy with organic beauty products or fertilizers, or by noting that “organic” is synonymous with “nat-
C
ural”. Many go on the internet to find answers… Out of all the people in Minsk that we talked to, only a very small number had no idea at all what organic tea and coffee are. The majority talked about being grown and harvested “naturally”, many mentioned lack of agricultural chemicals and artificial flavors. Some people thought that organic tea and coffee had to have “green” packaging and a short shelf life; for others, “organic” meant being harvested by hand and not by a machine. Some respondents strongly objected to the use of the term, complaining that it sounded “too unnatural and too technical”.
We have an interesting situation: On the one hand, people know what “organic” means; on the other, they almost never see that word next to “tea” or “coffee”. They can figure out what organic tea and coffee are, but almost no one has ever tasted them. Few asked themselves whether such products actually exist. Many people understand that “organic” is healthier, but they do not ask for it in stores and cafes. (Some respondents, far out in the country, even had the idea that organic tea and coffee should be sold in pharmacies…) It is difficult to tell whether the old saying “Supply follows demand” is true in this case. The reason that there is no demand is that people are simply not aware that organic tea and coffee exist, and that growers of tea and coffee have choices when it comes to the use of agricultural chemicals. The words “organic tea” and “organic coffee” do not appear on menus or in stores, and thus fail
to stimulate consumer interest – “What in the world is organic tea?...” And so we face the question: who is responsible for introducing these organic products to the market? Ecologists, out of concern for healthy nutrition? Or market researchers, who calculate their moves in order to most successfully introduce a new product? Or maybe economists who discover, after doing complex calculations, that some profit is to be had from organic products after all? Or, perhaps, the media should give people more information about organic coffee and tea, and this will get things going? “Time will tell”, say those who have been around for a while and know that making predictions during a time of change is futile. And those who are concerned with the present day conclude that in Belarus today there is no market for organic tea and coffee.
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WHO IS WHO?
Р
Allegra’s fourth European Coffee Symposium to take place in Berlin
ON 23-24 NOVEMBER 2011 400 industry leaders from across the European coffee shop, food-to-go and food-for-now segments will come together at the The Ritz-Carlton, Berlin on 23-24 November 2011 for the fourth annual Allegra European Coffee Symposium. Allegra’s events are widely regarded as the most high-profile and unmissable gatherings of senior executives from across the foodservice sectors. This groundbreaking event will build on the resounding success of Allegra's previous European Coffee Symposiums in London, Vienna and Rome. At a time when businesses place such a premium on innovation and connecting with new customers, the event will provide insight into new ways to elevate standards across the sector as well as unparalleled business development and networking opportunities. 38
COFFEE&TEA INTERNATIONAL # 2/2011
WHO IS WHO?
AN ACTION-PACKED TWO DAY PROGRAMME The European Coffee Symposium 2011 will combine a tailored Supply & Innovation Day, Berlin coffee shop Study Tour and the European Coffee Awards & Gala Dinner on day 1. The flagship European Coffee Symposium conference will take place on day 2. On 23 November, Allegra’s Supply & Innovation Day will offer an exclusive forum for leading operators and key suppliers to meet face-to-face to explore and present new product innovation & supply chain opportunities. A Study Tour of Berlin's cafй culture will run simultaneously during the day, providing participants with a valuable opportunity to experience Berlin’s hip and chic coffee shop scene. The evening will see Allegra's European Coffee Awards 2011 take place, bringing leading industry executives together in recognition and celebration of the vibrant European coffee shop, food-to-go and food-for-now segments. Nominations for the awards will be made by around 500 senior industry peers who take part in the Allegra European Coffee Leader Survey in August/September 2011. The category winners will be announced at the gala ceremony. 400 TOP EXECUTIVES COME TOGETHER TO SHAPE THE FUTURE OF THE MARKETPLACE On 24 November, thought-provoking speeches, forward-looking thinking and fascinating panel discussions are on the menu of the day at the European Coffee Symposium conference, which will allow participants to gain a 360° strategic vision of the European marketplace. The Symposium speaker line-up, to be unveiled in the coming weeks, will represent the very best of the industry from across Europe. The European Coffee Symposium looks set to offer a stimulating, diverse and inspirational opportunity to explore and gain fresh ideas, new contacts and insight into latest marketplace innovation and trends.
The event will be proudly sponsored by United Coffee, Solo Cup Europe, Nespresso and Dawn Food. For further information about the European Coffee Symposium, European Coffee Awards and Supply & Innovation Day, please visit www.europeancoffeesymposium.com, or contact rnewbery@allegra.co.uk. ABOUT ALLEGRA STRATEGIES London-based management consultancy Allegra Strategies publishes the most comprehensive research ever conducted on the European and UK branded coffee shop market: Project Cafй UK and Project Cafй Europe. With 12 years of research experience in the European branded coffee shop market, Allegra Strategies is recognised as the thought leader and the most trusted source of information in the industry. ALLEGRA EVENTS Allegra Events organise three flagship B2B events across the European foodservice sector; the UK Coffee Leader Summit, Restaurant Leader Summit and European Coffee Symposium. In spring 2011, Allegra Events also launched The London Coffee Festival. The London Coffee Festival™ is part of UK Coffee Week and celebrates London as the centre of new ‘Third Wave’ coffee culture, while providing much needed charitable funds to clean drinking water initiatives in coffee producing countries.
For further information please contact Rosalyn Newbery, Email: rnewbery@allegra.co.uk
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RESEARCH
harmacological effects of green tea on the gastrointestinal system 1
Marcel W.L. Koo, Chi H. Cho Department of Pharmacology, Faculty of Medicine, The University of Hong Kong, Hong Kong, PR China
In this review the authors consider the impact of green tea on the gastrointestinal tract to determine the relationship between green tea consumption and diseases of the gastrointestinal tract. Given data suggest that the high content of catechins in green tea is a subject of constant interest of researchers.
INTRODUCTION Green tea is prepared from the young shoots of tea plant Camellia sinensis. They are rich in flavonoids, and in green tea mostly polyphenolic compounds such as catechins. The tea leaves are immediately heated with rolling after harvest to inactivate the enzyme, polyphenol oxidase, which is capable of oxidizing the tea catechins to oligomeric and polymeric derivatives, e.g., theaflavins and thearubigins. Green tea is thus less “fermented” and has the highest quantity of tea catechins that are chemically defined as flavan-3-ols. When the enzyme is allowed more time to act, the tea will be fully fermented and most of the tea catechins will be converted into theaflavins and thearubigins that give the characteristic aroma and colour of the black tea. Semi-fermented tea, e.g., Oolong tea, has limited time of oxidation and is less fermented than the black tea. In general, green tea contains about 30% w/w of catechins in the dry leaves. The major catechins, which are found in abundant proportion, are (–)- epigallocatechin gallate, (–)-epigallocatechin, (–)-epicatechin and (–)-epicatechin gallate with (–)-epigallocatechin gallate amounting to over 60% of the total catechins. Other compounds obtainable in green tea are the flavonols (quercetin, kaempferol and rutin), caffeine, phenolic acids, theanine, and flavour compounds. Black tea contains less tea catechins (3–10% w/w), while theaflavins and thearubigins account for about 2–6% w/w and 10–20% w/w of the dry weight of the leaves, respectively. Lung Chen tea and Pu-erh tea are typical examples of Chinese green tea and black tea, respectively, while Jasmine tea, Iron Buddha tea, Oolong tea are semifermented Chinese teas. The catechin contents in these five Chinese teas are presented in Table 1 and it was found that Lung Chen green tea has the highest quantity of tea catechins when compared with the semi-fermented and black teas.
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Green tea is commonly consumed in China, Japan and Eastern Asia, while black tea is mainly brewed in European countries and India. The intake of catechins can be expected to be higher in the Asiatic countries and the health effects of green tea may be more apparent when examined in the Asian communities. The gastrointestinal tract is most likely to be affected by tea drinking, since it has direct contact with the tea solution and its components, usually in high concentrations, irrespective of whether they are absorbed, retained or re-circulated to the gut tissues. In this review, the effects of green tea consumption on the gastrointestinal tract will be explored to find out whether there is any corelation between green tea consumption and diseases of the gastrointestinal system.
DIVERSE ACTIONS OF TEA CATECHINS Studies have shown that tea possesses diverse pharmacological properties which include anti-oxidative, anti-inflammatory, antimutagenic, anti-carcinogenic, antiangiogenic, apoptotic, antiobesity, hypocholesterolemic, anti-arteriosclerotic, anti-diabetic, anti-bacterial, anti-viral, and anti-aging effects. However, these responses cannot always be reflected in human studies. This may be due to the limited bioavailability of tea components and the use of physiologically unattainable tea concentrations in some of the animal and in-vitro experiments. The unreliability of extrapolating and applying results obtained in animal studies to humans should also be contemplated. In relation to the prevention of diseases by tea consumption, many studies have demonstrated beneficial effects of tea and catechins in the prevention of cancers and cardiovascular disorders. Findings from epidemiological studies involving tea consumption have suggested a chemopreventive effect of green tea
The full content of the article «Pharmacological effects of green tea on the gastrointestinal system», Marcel WL Kooa and Chi H. Cho has been published in European Journal of Pharmacology, 500 (2004) p. 177-185. Statement of the article is published with the permission of Elsevier Limited, license number 2682901412005 from 06/06/2011.
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RESEARCHS
Fig. 1.
Postulated anti-inflammatory and anti-cancer actions of green tea and tea catechins
1. Antioxidant fction
2. Modify phases I and II enzyme activities
Reduce formation of reactive free radicals
Promote removal of procarcinogens
on gastrointestinal cancers and disorders when it is consumed regularly in moderate to high quantity. However, some of the studies conducted in the Western countries concerning the effects of tea on gastrointestinal protection have demonstrated no or negative results in cancer prevention, while promising data were obtained mainly in studies performed in Asian countries. This has been suggested to be due to the consumption of a much larger quantity of green tea by the Asian people while the Westerners like to drink more black tea. Other factors such as bias in subject selection, diets, alcohol consumption, smoking, types of tea, total quantity of tea consumption, measurement errors, temperature of the tea infusion, and interactions of tea with other dietary factors may influence the outcomes of the studies.
MECHANISMS OF ACTION The pharmacology and mechanisms of action of tea on its anti-inflammatory and anti-cancer actions have been reviewed in several publications. Some suggested mechanisms for its suppressive effects on inflammation and carcinogenesis have been depicted in Fig. 1. It is well known that green tea is a potent antioxidant with antioxidative activity greater than vitamins C and E. Besides acting as a scavenger for reactive oxygen and nitrogen species, tea also enhances expression of intracellular endogenous antioxidants such as glutathione, glutathione reductase, glutathione peroxidase, glutathione-S-reductase, catalase, and quinone reductase. All of these activities prevent lipid peroxidation and damage to the DNA structure.
3. Inhibition of metastasis protein expressions
Inhibition of metastasis protein expressions
Green tea and (–)-epigallocatechin gallate also bind to metal ions and further reduce the generation of reactive free radicals. In limiting the formation of carcinogens, green tea and its catechins have been shown to promote the elimination of procarcinogens, e.g., polycyclic hydrocarbons and heterocyclic amines, from the body by inducing phase I cytochromes P450 1A1, 1A2, and 2B1 enzymes and phase II detoxification enzymes, e.g., glucuronosyl transferase. The procarcinogen activating enzyme cytochrome P450 3A4 is also suppressed. Furthermore, the formation of endogenous N-nitroso compounds was found to be reduced by tea consumption. The chemopreventive effect of green tea and its catechins on carcinogenesis have been attributed to their inhibition on cell proliferation, cell cycle arrest, blockade of growth factor receptors, suppression of mitotic signals, reduction in cytokines release, inhibition of angiogenesis by interfering with the activities of metalloproteinases, serine proteinases and vascular endothelial growth factor, prevention of nuclear factor kappa B and activator protein 1 activation, inactivation of topoisomerase I and telomerase resulting in apoptosis. (–)-Epigallocatechin gallate has been found to be a potent inducible nitric oxide synthase and cyclooxygenase-2 inhibitor. In suppressing the release of nitric oxide and prostaglandins, which are important mediators for inflammation and tumorogenesis, green tea can limit inflammatory reactions and promotion of cancer. Recently, (–)-epigallocatechin gallate has been shown to bind to a specific metasta-
4. Cell cycle arrest and inhibition of angiogenesis
4. Suppress cell proliferation
sis associated 67-kDa laminin receptor that is expressed on a variety of tumor cells. Green tea may then interfere with the promotion of cancer by preventing metastasis of the tumour. Other factors that are related to metastasis, e.g., urokinase plasminogen activator, urokinase, and matrix metalloproteinases were also reported to be inhibited by green tea. It has to be noted that some of the mechanistic studies of tea catechins were performed in the concentration ranges of 10–1000 μM, which is unlikely to be achieved under physiological condition, except with the tissues in the gastrointestinal tract, which comes into direct contact with the tea solution. It has been found that the peak plasma level of (–)-epigallocatechin gallate was only 0.17 μM (77.9±22.2 ng/ml) after 1.6 h of oral consumption of a green tea solution containing 195 mg (–)-epigallocatechin gallate and the plasma concentration of (–)-epigallocatechin gallate was usually less than 1 μM. This could provide a useful reference value for future studies involving the use of cell cultures.
BIOAVAILABILITY OF GREEN TEA Tea catechins are well absorbed after oral administration and (–)-epigallocatechin gallate is quite stable in the stomach and small intestine. The content of (–)epigallocatechin gallate in the intestine was observed to increase sharply within a few hours and was still present in the large intestine after 8 h when a single dose of (–)-epigallocatechin gallate 50 mg was administered to rats. Absorbed tea catechins are biotransformed in the liver to
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RESEARCH
conjugated metabolites, i.e., glucuronidated, methylated, sulfated derivatives. While (–)-epigallocatechin and (–)epicatechin are mainly conjugated, (–)epigallocatechin gallate is usually present in free form in human plasma. Some of the catechins delivered to the gut can be glucuronidated by the glucuronosyl transferase in the mucosa of the intestine. In the gut tissue glucuronidases and microflora could also convert the conjugated products to agylcones. Some of them will be reabsorbed, while others will be metabolized to form valerolactones, phenylacetic and phenylpropionoic acids. Thus tea catechins undergo enterohepatic recirculation quite extensively. After absorption, the catechins are widely distributed in all body tissues with the highest concentration found in the esophagus, intestine and colon. High levels of tea polyphenols can be reached in the body when green tea is frequently consumed.
GREEN TEA AND THE AERODIGESTIVE SITES
Green tea consumption has been reported to increase the acid resistance of teeth to damage by cariogenic bacteria. Green tea was shown to inhibit the causative bacteria, which contribute to the formation of dental plague and caries. It has been demonstrated that tea can inactive glucosyltransferase and dextran sucrase thus inhibiting the formation of waterinsoluble glucan and lactic acid, respectively. This reduced the adhesion of the causative bacteria most noticeably Staphylococcus mutans, and Porphyromonas gingivalis to the dental plaque. Its anticariogenic and antimicrobe activities are related to the tea catechins and not due to the action of its fluorine contents. Tea catechins, in particular (–)epigallocatechin gallate, inactive amylase in the saliva, and decrease hydrolysis of starch to maltose thus reducing acid erosion on the teeth enamel. Epidemiological studies revealed a reduction in caries formation in tea drinking populations and school kids from tea plantation areas in Japan, while subjects given Oolong tea extract was observed to have less dental plaque. Green tea can also clear up bad breath by suppressing the growth of odour producing bacteria. Green tea has been found to be a potential chemopreventive agent for the treatment of oral leukoplakia, a precursor lesion to oral cancer. The concentration of tea catechins in the saliva can reach a higher value than in plasma. In vitro studies demonstrated that green tea induced G1 cell cycle arrest in oral leukoplaskia and promoted apoptosis in oral squamous carcinoma cells. A study involving patients with oral leukoplakias in Beijing found that
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tea catechins treatment reduced the number of micronuclei and DNA aberrations in the lymphocytes and reduced precancerous mucosa lesions. The effect of green tea on esophageal cancer is not consistent in that some reported a preventive effect while others found an increase of incidence in esophageal cancer. However, the worsening effect of tea on esophageal cancer has been attributed to the onsumption of high temperature tea solutions rather than to the effect of tea. Inverse relationships between green tea consumption and esophageal cancer were found in epidemiological studies done in China. A study conducted in Jiangsu Province, China demonstrated that the consumption of green tea in an amount of more than 1 g/month reduced the risk of esophageal and stomach cancers independent of the detoxifying enzymes glutathione-S-transferases M1 and glutathione-S-transferases T1 genotype polymorphisms. Another large case control study in South America reported that subjects drinking more than 500 ml/day of tea were also less likely to have esophageal cancer. It is possible that the catechins particularly (–)-epigallocatechin gallate inhibit the initiation and promotion phases of cancer development by preventing free radical damage to DNA. Its antiangiogenic effect may account for its suppression of growth of cancerous tissues by limiting their blood supply and inhibition of cancer development. The metastasis of cancer has also been demonstrated to be suppressed by green tea, which reduced the expression of adhesion molecules and metalloproteinases. Finally, green tea induces apoptosis in cancer cells and prevents the promotion of cancer.
GREEN TEA AND THE STOMACH
Epidemiological studies have shown an inverse relationship of green tea consumption with risk of gastric cancers. The risk of stomach cancer decreases with the quantities of tea consumed. The mechanisms may involve the inhibition of the growth of Helicobacter pylori, the causative microorganism in gastric carcinogenesis and the development of gastric and duodenal ulcers. Tea catechins, particularly (–)-epigallocatechin gallate, inactivate the urease enzyme for the conversion of urea into ammonia that buffers the bacteria from digestion by gastric juice, and thereby suppress proliferation of bacteria. This activity of tea can be achieved in the cup of tea concentrations and the minimum inhibitory concentrations (50% to 90%) for Lung Chen Chinese green tea were found to be between 0.125% w/v and
COFFEE&TEA INTERNATIONAL # 2/2011
0.25% w/v (Yee and Koo, 2000). An inverse relationship was also found in a study involving the evaluation of patients with gastric disorders with their Chinese tea drinking habit. It was observed that the incidence of infection with H. pylori was lower in subjects who consumed tea regularly. Similar results were reported in animal studies confirming an anti- H. pylori effect of tea and the active principles were demonstrated to be the tea catechins. Green tea also prevents chronic active gastritis and lowers stomach cancer risk. Another important factor contributing to gastric carcinogenesis is the challenge of nitrogenous mutagens and heterocyclic amines in the stomach. Endogenously formed N-nitroso compounds can increase the risk of gastric and esophageal cancers. Nitrosation occurs in the stomach and other part of the gut between amine and amide precursors and nitrite generated from nitrate. Tea catechins reduce Nnitroso compound formation by reacting with the nitrosating species and self oxidized to quinone. This reduces the gastric levels of nitrosating substances and inhibits the nitrosation of susceptible secondary amines and amides to carcinogenic nitrosamines and nitrosamides. Results obtained from human studies have demonstrated the inhibition of formation of a non-carcinogenic test compound Nnitrosoproline from nitrosation of proline by daily intake of 3 to 5 g of green tea. Heterocyclic amines present in cooked meats are known carcinogens and green tea inhibits the formation of heterocyclic amines. Tea promotes the biotransformation of these compounds to excretable products through enhanced expression of conjugating enzyme, glucuronyl transferase, which is involved in the glucuronidation of heterocyclic amines. Indeed, results from animal study demonstrated the inhibition of chemically induced forestomach cancer in mice treated with tea. Some of the possible mechanisms of action of green tea in the prevention of gastrointestinal cancers are: (A) Growth inhibition of Helicobacter pylori (B) Prevention of chronic Gastritis (C) Reduction of N-nitroso compounds (D) Decrease conversion of mutagens to carcinogens (E) Suppression of cyclooxygenases and inducible nitric oxide synthase activities (F) Modification of microflora in the intestine
GREEN TEA AND THE INTESTINE
Antimicrobial activities of tea have been well demonstrated, and tea has been shown to inhibit the growth of Vibrio
RESEARCH
cholerae, Salmonella typhi, Campylobacter jejuni, Campylobacter coli, H. pylori, Shigella, Salmonella, Clostridium pseudomonas, Candida, Mycoplasma and Cryptococcus. Thus, tea may modify the intestinal microflora. There are studies supporting a role of green tea in modulating microflora in the intestine by selectively increasing the growth of bifidobacteria and lactobacilli (acidophytes) in the gut wall. This reduces the formation of ammonia, skatole, harmful amines procarcinogens in the large intestine and the carcinogenic load on the intestine. The production of acids is also lowered leading to a decrease in the pH value of the feces. Therefore, bacteria profile in the intestine can be modulated by tea drinking and tea may affect the carcinogenic process in the intestine. Green tea has been found to inhibit the expression of cyclooxygenases and inducible nitric oxide synthase in colonic tissues, which are constantly found to be elevated in subjects with ulcerative colitis and colorectal cancers. The suppression of cyclooxygenase-2 by non-steroidal antiinflammatory drugs, e.g., sulindac, has been found to reduce cancer development in patients with large bowel adenoma. Green tea polyphenols consistently inhibit cyclooxygenase-2 activity in human colon tumour tissues and tea co-administration produces an enhancing effect with the cyclooxygenase inhibitors. Similar synergistic effect of (–)-epigallocatechin gallate with sulindac co-administration was observed in multiple intestinal neoplasia (Min) mice which has a germline mutation of the murine adenomatous polyposis coli gene and develops intestinal tumors similar to the familiar adenomatous polyposis patients. An inverse relationship to colorectal cancer risk was observed with green tea consumption. A protective effect on rectal cancer incident was also observed in Chinese females from Hebei who drink tea regularly. A population study in Japan found that there was a delay in cancer occurrence in subjects consuming green tea. The incidence of colorectal cancer was found to be lower in patients who had consumed over 10 cups of green tea per day. A threshold quantity for the protec-
tive effect of tea may exist, since no significant difference was observed in subject drinking less than 10 cups a day. This dose–response relationship was also reported in a case control study on black tea consumption and risk of rectal cancer in Moscow. It has been proposed that (–)epigallocatechin gallate at physiological concentrations arrests cell growth at Go/G1 phase by inhibiting topoisomerase I activity and induces apoptosis in several human colon carcinoma cell lines. These findings suggest that it could be combined with other anticancer drugs in the treatment of colon cancer. Green tea may exert a protective effect on the gastrointestinal mucosa. In a study involving the induction of mucosal damage by fasting in rats, the administration of 0.6% w/w green tea was shown to prevent atrophy of the intestinal mucosa and promote healing of mucosal damage. It is suggested to be mediated by the antioxidant activity of tea catechins thus may prevent bacterial and toxin translocation in critically ill or nutritionally depleted patients. The absorption of fat and sugar was found to be reduced by tea consumption. Tea has been shown to inhibit digestive lipases and interfere with lipid-micelle formation in the intestine leading to a decrease in fat absorption. These effects coupled with its upregulation on low density lipoprotein receptor through inhibition on proteasome activity contribute to its lipid lowering effect. Studies have also shown that tea lowered the uptake of
sugar and reduced blood sugar level through suppression on glucose transporter activity in the intestinal epithelium. This may be beneficial to diabetes subjects in lowering their blood sugar levels. A trial on the effect of tea catechins in bowel movements in healthy volunteers has demonstrated an improvement of the bowel activity after taking 500 mg (–)epigallocatechin gallate tablets for 3 months. The bowel movements became more regular and this may be attributed to the inhibition of a-amylase and the modulating effects of tea catechins on the fecal flora.
OVERALL PERSPECTIVES
Tea is widely consumed worldwide and it is without observable side effects even when taken chronically. Epidemiologic studies have suggested an inverse relationship of green tea consumption with gastric and colorectal cancers. In Japan, green tea has already been promulgated as a chemopreventive beverage. Further investigations relating to the health effects of tea drinking are now being conducted, and this may help to clarify the usefulness of green tea in disease prevention. Tea catechins were shown to act synergistically with each other and with caffeine in their diseasemodifying actions. Thus, unfractionated green tea solution is more beneficial than individual tea catechin component if one has to harvest the potential health promoting effects of green tea in the prevention of gastrointestinal diseases.
45
HORECA
TEA AND TEA SERVICE IN RESTAURANTS 9 roles for tea and the selection of tea strategy
Denis Shumakov Tea specialist, Turquoise Tea Co., Ltd.
When it comes to planning tea service in a restaurant, we need to understand the roles that tea can play and the goals that tea can help achieve. The list of such roles and goals will, of course, be too long, and some items on it will even seem strange. But this, in my opinion, is as it should be: we need just such a list in order to make an informed choice. Let’s begin with the obvious: the familiar ways of serving tea that diffeфr only in tea’s quality and price.
0. TEA AS A SATELLITE BEVERAGE This is the role tea plays in the majority of restaurants. It is just an item on the menu: if a customer wants to drink tea, then something tea-like will be served to him. This is not an interesting role for tea, and we will assume that every restaurant should evolve away from “satellite” tea towards something better and more deliberate. The natural path for such an evolution is an increase in the quality and price of tea and in the level of service. Given this increase in quality, tea will immediately be promoted from a satellite beverage to a feature beverage – and thus will attract the interest of restaurant owners, customers and specialists.
1. TEA AS A FEATURE BEVERAGE This is the base level of tea service in a restaurant. A restaurant reaches this level when it ceases to be embarrassed by its own tea and instead of being a mere line on the menu – “Tea: ….. 30 rubles” – tea gets its
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own page, or even its own separate tea carte. Of course, in order to make good on the promise of a great tea experience implicit in the menu or in the tea carte, it is necessary to address a whole host of issues. These issues were listed in an earlier article , and we will return to them in the future. But even after all the issues have been resolved and the restaurant has reached this level of tea service, there remain fascinating possibilities for further evolution. These possibilities have to do with a move towards a specialization in tea, that is, going from simply offering good quality tea and tea service to making them a part of the establishment’s unique brand.
2. TEA AS A TRADEMARK BEVERAGE The simplest way of specializing in tea is the transformation of tea into a restaurant’s trademark beverage. In order to achieve such a transformation, it is sufficient to
COFFEE&TEA INTERNATIONAL # 2/2011
have a special principle for selecting the kinds of tea on the menu. One could, for example, focus on a specific region (e.g. only Indian tea) or on a specific culture (e.g. only tea with traditional Armenian herbs). Or one could simply assemble a unique collection of rare and interesting varieties of tea and devise dramatic ways of advertising and serving them. Curiously, trademark tea can be of lower quality than “just good tea” – but more interesting to the customer.
3. TEA EXPERIENCE AS A TRADEMARK SERVICE From offering tea as a trademark beverage, an establishment can evolve even further towards offering “tea experience” as its trademark service. In addition to offering unique (or simply high quality) varieties of tea, other components must be present. First, a distinctive way of serving tea, for example, stylized to conform to a specific tea tradition, must be employed. The use of
Таблица 1 TEA EXPERIENCE AS THE MAIN SERVICE
TEA AS THE MAIN MENU ITEM
GASTRONOMICAL TEA
Emphasis
Tea + tea sweets + teaware + tea carte = A1
A1 + uniform style of serving tea + a separate tea menu = A2
A2 + tea-based “gastronomical compositions”
Advantages
Simplicity
A higher price that appears justified
Tea becomes an element of haute cuisine
Challenges
To justify high tea prices to customers
To maintain consistent high quality of the tea experience
To maintain consistent high quality of tea
Desired Outcomes
Tea becomes a significant source of profit
Tea experience becomes a primary source of profit and a “reputation builder”
Tea becomes a “gastronomical peer” of wine, gets fully integrated into the menu
unique or simply memorable teaware, unusual sweets and treats, a careful alignment of the tea service with the dйcor and the “ideology” of the establishment – all these elements will draw people to the restaurant just to have tea. Second, the trademark tea experience must have strong informational support. Tea service as a trademark service has been brought absurdly close to perfection in those English (most often, hotel) restaurants that serve Afternoon Tea.
4. TEA AS A GASTRONOMICAL SOLUTION Gastronomical tea (tea service based on matching the taste and aroma of tea to the taste and aroma of other foods and beverages) is a theoretical possibility that is hard to realize in practice. Some American scientists investigated the issue of pairing tea with other foods, but their approach was more bookish than gastronomical: light teas were paired with light-flavored foods, more intense teas – with more bold-tasting foods, etc. Within the Russian tea community there have been several very successful innovations: shu puerh with cheeses, white tea with cashews, tea with ice cream, black tea with fortified wines, etc. Also here in Russia, people have invented a dramatic way of taking advantage of the gastronomical potential of tea: amuse-bouche au thй (which literally translates from French as “mouth amusement with tea”). Unfortunately, however, in the whole world there are only a handful of restaurants that do take advantage of tea’s gastronomical potential. The reason for this, first and foremost, is the difficulty of ensuring a consistent quality of brewed tea. Gastronomical experiences that involve tea become a practical possibility in restaurants only when that tea has consistent taste and aroma. But, unfortunately, the teas for which such consistence can be achieved are, for the most part, gastronomically worthless and not suitable for use in respectable restaurants. As soon as a restaurant can achieve a consistently high quality of tea (and this depends on the quality of tea itself as well as on the brewing method), interesting gastronomical possibilities will present themselves. Among those possibilities are various gastronomical “compositions” involving tea, both widely known and developed in-house; the use of tea as a substitute for wine and serving tea as a complement to major items
on the menu; tea tastings (serving several varieties of tea simultaneously), which have the potential to be very dramatic.
*** Specialization in tea can reach its highest point when a restaurant becomes strictly a “tea establishment”. By analogy with the above classification, we can identify two types of such establishments. The first type includes places that simply serve only tea; the second – places that specialize in “tea experience”.
special occasion. The simplest example, of course, is tea served during coffee breaks – but it is too obvious to discuss here. Other examples are also fairly simple, so we will only say a few words about them.
7. WELCOME TEA This is simply complimentary tea served to the arriving guests right in the hotel lobby, during check-in. If the teaware selected for this purpose suits the casual atmosphere, welcome tea can become a pleasant and memorable element of the hotel service.
5. TEA AS THE MAIN MENU ITEM A typical establishment that focuses on tea is a phyto-bar, especially if it is a part of a larger fitness- or recreation-focused business. We won’t spend much time on these establishments, as they are very simple from the “tea” point of view: tea served there must be of good quality (healthful) and convenient – but that’s all.
6. TEA EXPERIENCE AS THE MAIN SERVICE There are many examples of establishments focused exclusively or almost exclusively on tea experience. First of all, of course, there are tea houses, of the traditional English or no less traditional Central Asian variety. Second, there are Chinesestyle tea clubs, well known to Russian tea lovers. Third (and somewhat tongue-incheek) are “soldiers’ tea houses” (tea houses for military personnel, located within military compounds) – the only more or less numerous surviving descendants of Russian urban tea houses of the late XIXth – early XXth centuries. Although tea is the primary item served in these kinds of places, what really draws people there are social interaction (in English and Central Asian tea houses) and inexpensive food (English and military tea houses). Strange as it may sound, establishments that are entirely devoted to tea experience are of little interest to us: they exist in their own world, their business model is based on traditions, idiosyncratic preferences of their patrons (e.g. tourists or loyal followers) or the charisma of a particular individual. Their methods cannot be replicated outside of that specific cultural environment.
*** And, finally, the last category of roles for tea in restaurants. We can call them “choreographed tea experiences”, and they most often take place by a special request or on a
8. TEA RECEPTIONS Tea is a standard component of many contemporary receptions – from official to informal – and serving tea in this setting can greatly benefit a restaurant’s reputation. There are many beautiful ways of serving tea at a reception, tea makes every event cozy, and a tea reception can provide an opportunity to introduce guests to the restaurant’s menu items and services.
9. TEA TASTING As high quality tea grows in popularity and the tea market develops, there has been an increase in demand for tea tastings – small events for 10-20 guests (more people would make it much more difficult to provide a quality tea tasting experience). A table furnished with snacks, several varieties of tea (3 to 7), waiters in attendance, a knowledgeable host who can introduce people to the world of tea, sufficiently high price – and you have a 2- to 4-hour continuous tea-drinking event.
*** Out of the 9 roles we have listed, three deserve special attention: tea as the main menu item (5), tea experience as the main service (6) and gastronomical tea (4). The reason for this is that the choice of one of these roles amounts to the choice of the establishment’s “tea strategy”. It should be noted, of course, that these roles are not mutually exclusive – although the work involved differs considerably with respect to its methods, goals and risks. I will mention also that the successful implementation of any of these strategies by a restaurant means that this restaurant is capable of providing virtually any kind of choreographed tea experience. The following table will be helpful in choosing your tea strategy.
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ADVERTISER INDEX
AHMAD TEA LTD.
TEAMAC S.r.L.
AHMAD TEA LTD. Tel: +44(0)23 8027 8900 Fax: +44(0)23 8025 5867 www.ahmadtea.com Official distributor in Russia: «SDC-FOODS» Ltd. www.ahmadtea.ru report@ahmadtea.ru Moscow: Tel: +7(495) 234 69 91 Fax: +7 (495) 234 69 95
TEAMAC S.r.L. ViaMenghini,1 40054 Budrio(BO), Italy Tel.: +390516926276 Fax: +390516926277 info.teamac@marchesini.it Agent in Russia: TEA HOUSE TONUS St. Dubininskays – 90 Office #402, 115093, Moscow Tel.: 007 (495) 9527154 Fax: 007 (499) 2379908 tonus@teahousetonus.ru
ELISENTAL
DRAHTWERK ELISENTAL W. Erdmann GmbH & Co Werdohler Str. 40 58809 Neuenrade P.O. Box 1260, 58804 Neuenrade, Germany Phone: +49 2392 697-31 Fax: +49 2392 697-39 teabag@elisental.de www. elisental.de
MAI S.A.
MAI S.A. SOLIS 8250 B7608FLR — Mar del Plata Argentina Tel.: (54-223) 482-1817 Fax: (54-223) 481-0234 mdp@maisa.com.ar www.maisa.com.ar
ZWIRNEREI A.D. WUTACH GmbH
Zwirnerei a. d. Wutach GmbH P.O. Box 1163, .. 79780 Stuhlingen/ Germany Phone +49 7744 9396-0 Fax +49 7744 9396-20 info@zwirnerei-wutach.com www.zwirnerei-wutach.com
GLATFELTER COMPOSITE FIBERS BUSINESS UNIT
Worldwide contact: GLATFELTER Gernsbach GmbH & Co. KG Phone: +49 7224 66 0 composite.fibers@glatfelter.com Russian contact: GLATFELTER Russia Phone: +7 495 775 69 22 service.russia@glatfelter.com www.glatfelter.com
MAY COMPANY
MAY COMPANY 19, Proektiruemy proezd 4294 Moscow, Russia 109235 Tel.: +7 (495) 775 7505 Fax: +7 (495) 775 5515 info@maycompany.ru www.maycompany.ru
KLD COFFEE IMPORTERS ORIMI TRADE, Llc.
KLD COFFEE IMPORTERS 9 Pushkarev Pereulok Moscow, 107045, Russia Tel.: +7 (495) 223 0347 Fax: +7 (495) 223 0349 office@kld-coffee.ru www.kld-coffee.ru
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COFFEE&TEA INTERNATIONAL # 2/2011
ORIMI TRADE, Llc. 3, Tobolskaya str., St. Petersburg, 194044, Russia Tel: (812) 346 82 40 Fax: (812) 542 15 01 market@orimitrade.ru www.orimitrade.ru