Trends In The Wholesale And Retail Loose Leaf Tea Industry

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The tea industry in the United Sates is a growth industry and
the role of retailers or value added resellers has played an
important part in the overall expansion. Value added resellers
and retailers add significant value to the tea industry as
they bundle tea offerings with quality dining and other
services but they must be supported by comprehensive wholesale
programs that are reliable , consistent and profitable.

What trends are driving the market?

In most countries in the world, tea is the second most popular
beverage after water. The one exception is tea drinking in the
United States. But the market for quality loose leaf tea has
unlimited upside potential for tea drinkers in this country.

The market for high quality loose leaf tea is experiencing
strong growth and this is expected to continue for the
foreseeable future. The growth of revenue and profits in the
value added retail sector of the market is also very strong
particularly when tea is prepared and presented as a part of a
total offering in tea rooms, fine dining establishments and
hotels.

There are a number of factors influencing this growth in loose
leaf tea demand:

=95The incredible good taste of tea and blends.

=95The health benefits of tea.

=95The wide variety of tea flavors and blends.

=95A growing awareness about the enjoyment benefits of loose leaf
tea .

=95An expansion of the value added reseller network for quality
loose tea.

=95Many consumers are looking for an alternative to coffee as a
hot or iced drink of choice.

=95Consumers are tired of the “tea bag mentality” where the taste
and quality of tea is sacrificed for the convenience of the tea
bag.

Because of a number of historic factors like the American
Revolution and other socio-economic events, the market for
loose leaf teas was stalled for over two centuries in the
United States but that is changing dramatically and rapid
growth is now a fact.

What is the biggest mistake retailers make in regards to their
tea program?

The biggest mistake that retailers make is the failure to
prepare and present tea properly.

Quality tea, served either hot or iced, is a wonderful
discriminator for any restaurant, tea room or hotel. Quality,
loose leaf tea on the menu of a high quality food establishment
will separate the retailer from the competition.

Quality tea can also serve as a profit center for the retailer
as consumers are willing to pay extra for a quality cup of hot
tea or glass of quality iced tea.

Many resellers however, have not focused on the value that tea
can bring to their Unique Selling Proposition. Through
oversight in the tea offering, many consumers are left with
lower levels of satisfaction and this is adversely affecting
retailers and their overall product offering.

For consumers, there is nothing more deflating for the total
dining experience than a bad cup of tea, offered without
consideration to the consumer. At the close of an otherwise
ideal meal experience costing in excess of $100.00 per person,
customer satisfaction can be ruined by simple oversight. This
happens time and again as tea drinkers, expecting a quality
brew are slighted by a saucer with tea bags mixed with a cup or
bowl of warm tap water.

Ending a meal this way is a good way to loose customers to the
competition.

Advice to retailers to maximize their tea program

High quality loose leaf tea can play an important part in a
retailer’s business. As the demand for quality loose leaf tea
expands, retailers should :

=95Understand the tea culture and the role of tea in growing your
business

=95Use only the highest quality loose leaf tea.

=95Train your staff to prepare and present both hot and iced tea
in a quality manner.

=95Offer the customer the best tea ware (tea infusers and pots)
to complete the presentation.

=95Include quality tea as part of you Unique Value Proposition
and product/service offering.

Things to keep in mind for new retailers

The most important thing is to deal with a tea manufacturer
that offers a total benefit program to the retailer including:

=95Highest quality, best tasting tea backed up by superior
packaging and a no questions asked guarantee of quality.

=95Dedicated customer support with staff knowledgeable about tea
and the tea business (not just taking orders)

=95Multiple-tier wholesale pricing. with volume based discounts.

=95Easy ordering and order lookup.

=95Unlimited shipping locations per order.

=95Single point of billing for multiple locations.

=95Automatic recall of locations and recipients.

Value added tea resellers and retailers add significantly to
the tea industry but they also need quality wholesale programs
to support their value added efforts. Retailers should seek out
the best tea suppliers that meet their value added requirements.

About The Author: Jon Stout is Chairman of the Golden Moon Tea
Company. For more information about tea, white tea and
wholesale tea go to http://www.goldenmoontea.com

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