Despite cutting back on grocery spending, Chris Costagli, vp/food insights lead, Nielsen IQ, in his “Mastering Omnichannel Sales in the Coffee Industry” webinar for the National Coffee Association (NCA), said that foodservice excluding alcohol sales are expected to approach USD $1 trillion this year, adding that foodservice and drinking places are recapturing share of U.S. food sales. “The trend change was dramatic in 2020; driven by more frequent at-home cooking and panic-induced stockpiling. Foodservice and drinking place sales are recovering and projected to recapture the lead in 2026,” he said. (Costagli noted that inflation and high menu prices have contributed to large growth in foodservice; however, these macroeconomic conditions are causing the growth rate to slow.)

It seems that in today’s stressful climate, away-from-home consumption plays an important role in consumers’ mental wellbeing. Despite inflation, Costagli said that most consumers are going out to eat/drink as least as often as usual. Only a quarter of those who eat/drink out have scaled back on the frequency of visits. There are more consumers visiting more often than usual than there are scaling back. “They are more than places to eat and drink,” he explained, “they are vital gathering spots that foster friendship and connection.”

Nielsen IQ (NIQ) found that one-in-five consumers said they would be lost without bars or restaurants. As such, going out weekly is the norm. Per NIQ’s CGA May 2024 US On Premise Impact Report:

• 63% restaurant/bar visitors make at least one trip a week
• 77% plan to go out to eat in the next month
• 47% plan to go out for a drink in the next month

According to Costagli, ‘treating’ is the main reason for going out more. Of the 29% going out more often, treating and variety seeking are leading motivators:

• I have been treating myself 44%
• There are new places that I have wanted to try 35%
• There have been more events than usual 25%
• I want to support local business 23%
• I have been able to save money recently 21%
• I am visiting while I have enough disposable income 19%

‘Away-from-home coffee’ is already considered an ‘affordable indulgence’ so these latest dining out trends bode well for coffee shops and cafés. At one of his NCA Convention presentations (it may have been the virtual convention in 2022 or the 2023 one in Tampa) Matthew Barry, senior beverages insights manager, at Euromonitor International, spoke about the emergence of two types of coffee shops following the Covid-19 pandemic: those offering convenience (speed, mobile orders, etc.) and those offering an experience.

If one of the primary reasons consumers are drinking and dining out is because these places help “foster friendship and connection,” then those coffee shops favouring ‘experience’ over ‘convenience’ have a real opportunity to solidify their establishment as a ‘go to gathering place’ and attract more consumers by elevating or enhancing their in-store experience, through ambiance, menu options, and of course, customer service.

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A survey of 2,000 adults found that these stress headaches break down to three times a week and that respondents recalled having brain fog just as often. Reviewing their current stress levels, the survey found that 41% said they’re at their peak stress for the year so far. [Although the survey was among Americans, the symptoms and causes of stress are similar across many countries. For example, according to Euromonitor International’s Voice of the Consumer: Health and Nutrition Survey 2021, globally, stress and anxiety now rank as the second most common health concern. Many of the other top reported issues, including sleeping problems and headaches, tend to be closely linked to high stress levels.]

Results of the new online survey – conducted by Talker Research for Traditional Medicinals between July and August 2024 – showed that while 30% are hopeful that their stress level will go down by the end of the year, a quarter of respondents think there’s a chance it’ll go up (26%). Yet, 45% have never taken a mental health day or sick day from work solely because of stress.

Comparing their stress levels to previous years, 38% of those surveyed said that 2024 has been more stressful than 2023, but less so than 2022 and the preceding years.

What is it about this year that is exacerbating their stress levels? Respondents are worried about their finances (35%), the economy (28%) and their physical health (25%). Others are troubled by the news landscape — particularly the 2024 presidential election (20%) and other world issues (19%), both of which I’m surprised are not higher percentages. In terms of how respondents are combatting these high-intensity moments, results showed that a majority feel overwhelmed during these times (58%).

What’s Stressing Americans Out?

1. Personal finances — 35%
2. The economy — 28%
3. Physical health — 25%
4. Family — 25%
5. Mental health — 24%
6. The 2024 presidential election — 20%
7. The news/world issues — 19%
8. Work — 16%
9. An unexpected life event — 15%
10. Romantic relationship — 13%

In an exclusive article for T&CTJ, “The caffeine paradox: sleep, anxiety and the endless rise in caffeine consumption,” Matthew Barry, insight manager, food & beverage, Euromonitor International, wrote, “Although consumers’ stress and anxiety levels remain high, their desire for caffeine has not waned. In fact, the demand for higher caffeine products is actually rising.”

How can these two clear trends coexist? Why are consumers eager to increase their caffeine consumption while also being concerned with their stress levels and sleep quality? Barry posited that the explanation is found in the caffeine paradox — higher levels of stress and sleep troubles lead, paradoxically, to higher demands for caffeine. “At the core of consumer stress is the desire to accomplish more. And this desire creates more stress, which leads to more caffeine consumption for sufficient energy.”

In the Traditional Medicinals survey, respondents shared that they know they’re stressed when they have trouble sleeping (42%), feel irritable (37%), fatigued (34%), have headaches (33%) or feel worried or paranoid (31%). Other respondents said their stress manifests through an inability to focus (30%), restlessness (29%), racing thoughts (27%), brain fog/mental unclarity (23%), or panic attacks (23%).

“With cold and flu season approaching, self-care and stress management are more important than ever,” said Kristel Corson, chief marketing officer at Traditional Medicinals. “Half of those surveyed believe that stress is often the main cause of them getting sick, and when asked what season is most stressful, the highest percentage of respondents (26%) said winter given seasonal changes and the holidays.”

To combat stress, 47% of respondents turn on some music, while another 39% look for comfort in their favourite TV shows and movies.

Food has its own calming effect, with nearly a fifth of respondents sharing that they have a snack (17%) or drink a cup of tea (14%) when they need to bring their stress down.

Seven in 10 agree that their overall mental health would be better if they were able to reduce their stress (71%), highlighting a need for self-care routines to be an important part of the stress solution.

However, incorporating self-care strategies into their daily life is a hurdle for one in seven Americans, leaving nearly half wishing for simple options that fit into their busy schedule (47%) as opposed to elaborate routines. When thinking about a “de-stressing regimen,” an equal percentage of respondents want long-term overall wellness and the ability to alleviate stress quickly (23% each).

“We believe in integrating ancient herbal wisdom with modern scientific advancements for a holistic approach to wellness,” said Corson. “Just 37% of survey respondents think that trendy stress relief options are successful, while nearly half felt confident in more traditional methods like yoga, meditation, or a calming tea.”

Given the conflict in the Middle East, the Russian/Ukraine war, inflation, high costs of goods, and in the US, back-to-back devasting hurricanes along with a contentious presidential election,

consumers’ stress will not likely abate anytime soon. Furthermore, high-caffeine product launches have not tempered while decaf sales remain sluggish, suggesting that the caffeine paradox, Barry highlighted in the April 2022 article will hold true for the foreseeable future.

Barry concluded the article, noting, “That leaves coffee and tea where they have always been — powerful tools in coping with the larger challenges of life. The underlying stressors of the modern world are beyond the power of the industry to solve. But manufacturers can offer a range of products to help alleviate possible burdens, from those who want as much caffeine as they can consume to those prioritising mindfulness and looking to cut back.”

Tea and coffee manufacturers have done just that. So go ahead and grab that 300+ caffeine RTD coffee, that iced ginseng wild apple mint tea, that lavender coffee latte, or chamomile lavender tea — whatever you fancy, as there’s really no choice.

• Vanessa L Facenda, editor, Tea & Coffee Trade Journal.
  Keep in touch via email: vanessa@bellpublishing.com Twitter: @TCTradeJournal or LinkedIn: Tea & Coffee Trade Journal

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Decaf coffee is gaining popularity in global markets as more and more customers follow the current wellbeing trend, considering it as a healthy alternative to common coffee.

In contrast to Western markets that already have large numbers of decaf coffee consumers, the popularity of coffee without caffeine (or with a small content of it) is just gaining momentum in several emerging nations, many of which can provide significant growth opportunities for players operating in this market segment.

The existing big potential of the decaf coffee market is confirmed by research data. According to predictions of international research agency, Skyquest Technology, over the next seven years, the decaf coffee market will grow by six to seven percent annually, reaching USD $28.86 billion by 2030. By comparison, in 2022, this figure was $19.5 billion. The growth will be observed both in developed nations and emerging countries, where such growth rates are expected to be higher.

As for developed nations, it is expected the United States will be a major driver of growth for decaf coffee in years to come as the demand for coffee with less caffeine among local consumers remains high.

The National Coffee Association (NCA) of the USA reports that more consumers across the country are adopting healthier lifestyles, which may also be associated with increased coffee consumption, since scientific evidence continues to strengthen and shows that both decaffeinated and regular coffee are associated with decreased risk of multiple cancers and chronic diseases.

Speaking with T&CTJ, William “Bill” Murray, president and CEO of the NCA, said decaf coffee has already become an integral part of life for many Americans. “Like regular coffee, decaf is a mainstay in Americans’ lives, and we expect that to continue. Signs point to growth for decaf with Americans over the age of 40, and opportunities for decaf to adjust to consumers’ tastes and interests are abundant.”

Murray further noted that consumers are more interested in health and wellness than ever before and that “there is growing awareness that decaffeinated coffee is associated with decreased risk of multiple cancers and chronic diseases.”

In accordance with NCA’s Spring 2024 National Coffee Data Trends (NCDT) Report, seven percent of Americans had decaf coffee in the past day, and past-day decaf consumption is increasing among Americans ages 40-plus.

Per the NCDT report, past-day decaf consumption is highest for Americans in the 60-plus age group, ten percent of whom had decaf in the past day – up by 11 percent since July 2023. At the same time, past-day decaf consumption has also increased for Americans ages 40-59, with six percent drinking a decaf in the past day – up by 20 percent since July 2023.

Consumption grows in Scandinavia

In the European Union, the biggest growth in demand and consumption of decaf coffee has been observed in certain Nordic states – the countries which are known for their record coffee consumption in general.

One such country is Finland, where sales of decaf coffee have been rapidly growing since the beginning of the 2020s.

Löfbergs instant decaf coffee. Image: Löfbergs

Marleena Tanhuanpää, director of the Finnish Food and Drink Industries´ Federation, said that in recent years there has been a positive trend and continuous sales increase for decaffeinated coffee in Finland. “It is definitely trending at the moment as [there has been an increase in the number] of new locally roasted products, [along with] increased visibility and assortment availability, which is raising consumer interest [in decaf coffee].” Tanhuanpää further noted that decaf coffee innovations coming from local roasteries such as filter coffee with good taste profiles that meet the local needs and preferences are helping drive growth.

“The absolute user amount is still limited in the market but the potential for further growth is there,” Tanhuanpää explained, adding, “especially with the younger (under 35 years old) urban demographic, and women, in particular, are interested in decaffeinated coffee – they want to enjoy the taste of coffee, but regular coffee is not always the most suitable option.”

In neighbouring Denmark, the demand for decaf coffee also remains high, although the share of the segment in the overall Danish coffee market is small.

Henrik Frellsen, the chairman of the Danish Coffee Association and CEO of Frellsen Kaffe, one of the biggest local coffee producers, said decaf coffee currently makes up a small share of the coffee market in Nordic countries. “In Denmark, it accounts for less than one percent of the volume, [which is] constant and has historically remained at this level.”

He does not expect a sharp growth of the segment in years to come despite believing in its huge future potential. “We foresee no significant development at this level. In recent years, coffee has transitioned from a product perceived as less healthy to one that naturally fits into a healthy lifestyle. Therefore, caffeine no longer appears to be harmful,” Frellsen explained. “However, increased awareness of the importance of sleep for health pulls in the opposite direction. In Nordic food culture, there is a loyalty to pure raw materials. Hence, [those] with this concern would choose an alternative beverage later in the day rather than a decaf coffee.”

Some analysts report that the estimated potential of decaf coffee is too exaggerated and does not correspond to some current realities. Referencing the most recent edition of Euromonitor International’s Voice of the Consumer: Health and Nutrition Survey, Matthew Barry, insight manager, Food and Beverage at Euromonitor International, said that self-reported interest in drinking less caffeine or none at all reached a new record high, at 46 percent of respondents. “You could interpret that to mean we were at the verge of an explosion in decaf. After all, that is nearly half of adults in the world saying they want to drink less caffeine. But I don’t see things that way. The reality is that caffeine is just too important for people to get through their days so this represents an aspiration more than anything else. I think this signals that people recognise that they need to take actions to mitigate some of the negative side effects of excess caffeine consumption.”

Barry noted that the data absolutely shows there has been a real explosion of products with calming, relaxing, or sleep-promoting claims across food and beverage in recent years. “Essentially, rather than switch their morning coffee to decaf, consumers are sticking with the regular coffee and looking for something in the evening to calm them down and help them sleep. People want to have it all,” he said.

The decaf coffee market is also of great interest to the global majors, many of which have significantly strengthened their positions in it in recent years. For example, illycaffè, the Italian coffee producer, considers the decaf coffee segment a priority.

Francesco Bosso, chief commercial officer of illycaffè, said the company offers decaffeinated coffee in its range with all preparations to satisfy the taste of all consumers. In recent years, he said, the

illy’s low caffeine coffee, Idillyum. Image: illycaffè

demand for such coffee has significantly increased, noting that “usually, decaffeinated coffee is preferred by one out of four consumers and mainly as an alternative to coffee in the evening.” Bosso said that illy coffee is a blend composed of 100 percent Arabica beans of the best quality, which by its nature contains a lower amount of caffeine than Robusta coffee. “In addition, for consumers who are looking for a preparation with a very low caffeine content, we also propose Idillyum, a coffee composed only of the fine Arabica variety called Laurina, grown specifically for our company in El Salvador. This product naturally has a very low caffeine content, less than one percent (a third less than the classic Arabica varieties and less than half of Robusta).”

Bosso expects the demand for decaf coffee will continue to grow, while the growth of the segment will be comparable to the dynamics of the entire coffee market.

Regarding further market prospects, most of the interviewed analysts and producers believe the demand for decaf coffee will continue to grow in years to come, as more and more customers will position it as a heathy alternative to traditional coffee. That will be primarily observed in such countries as Russia, which has low decaf coffee consumption.

Tanhuanpää believes that decaffeinated coffee will continue to increase its share driven by the wellbeing trend that has for many years already been present in many food and drink categories, for example, driving growth of non-alcoholic beer. “The need for relaxation without compromising the enjoyment of coffee is one driver for decaffeinated coffee consumption,” she said. “And according to our research, the usage situations for decaf coffee can be varied, not only limited to evening use. One motivation can be the stomach friendliness of decaf coffee.”

• Eugene Gerden is an international freelance writer who specialises in covering the global coffee, tea and agricultural industries. He works for several industry titles and may be reached at gerden.eug@gmail.com.

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The global green tea market is steadily growing these days thanks to maintaining stable consumption and its favourable image as a healthy drink.

Since the end of the pandemic, consumption of green tea has significantly increased with the best dynamics being observed in its major consuming regions, among which are primarily Asian and African nations.

Matthew Barry, insight manager, food and beverage at Euromonitor International said that presently, green tea is the second-most important segment of the global tea market, with most consumption occurring in either East Asia or North Africa. “In both of these areas, green tea has a very strong historical tradition associated with it, and it represents a large portion of overall tea consumption. China by itself is roughly half the global market, followed by Morocco, Indonesia, and Japan,” he explained.

“Outside of those two regions green tea has a presence virtually everywhere, but it is very unusual to see it rise much beyond a fifth of the total tea market. In the rest of the world there is not much of a historical tradition of green tea drinking so it tends to appeal mostly to wellness-oriented minorities of tea drinkers.”

China & Japan: green tea behemoths

China and Japan traditionally have been the largest producers and suppliers of green tea on a global scale. The level of their domestic consumption has declined in recent years but it has been compensated for by the increase in exports overseas.

In the case of China, since the beginning of the 2000s, the country has significantly increased its green tea exports, which are currently valued in the range of USD $1.3 to $1.4 billion annually. According to earlier data from the 2022 China Tea Import and Export Trade Analysis Report, among the major green tea-producing and exporting provinces in China, Zhejiang Province ranks first with an export volume of 147,000 tonnes and a value of $451.22 million, along with Fujian Province and Anhui Province.

As for the domestic market, according to China Tea Circulation Association data, sales of green tea in China in 2022-2023 were equivalent to 1.2-1.3 million tonnes annually, accounting for 58.1 percent of the total sales. In terms of the other teas China produces:

✦ Black tea – 314,800 tonnes, accounting for 14.3 percent;
✦ Dark tea – 313,800 tonnes, accounting for 14.2 percent;
✦ Oolong tea – 200 tonnes, accounting for 10 percent;
✦ White tea – 62,500 tonnes, accounting for 2.8 percent; and
✦ Yellow tea – 12,300 tonnes, accounting for 0.6 percent.

Japan’s green tea sector has also been experiencing a renaissance. Due to the impact of the Japanese food boom and increasing health consciousness, the amount of Japanese tea exports has more than doubled over the past ten years. According to Japanese Ministry of Finance Trade Statistics data, the demand for powdered tea, including matcha, has increased, and exports in 2023 reached a record high of approximately 21.9 billion yen (approximately $132.6 million). The bulk of exports goes to the United States, which accounts for about 34 percent of the total export volume, most of it is matcha, while leaf tea is popular in the European Union and Taiwan. The Ministry reports that organically grown tea accounts for nearly 80 percent of exports to the European Union and United Kingdom, the bulk of which is green tea.

The Ministry also noted that the current popularity of Japanese green tea in the US is also reflected by the fact that many Silicon Valley companies even offer Japanese green tea as a work conditioning drink in their employee welfare programmes.

Traditionally, most Japanese green tea is produced and grown in the Shizuoka Prefecture, Japan’s leading tea-producing area and its Shizuoka City is known as the ‘town of tea’.

The Japanese Ministry of Agriculture, Forestry and Fisheries is creating conditions for a further increase of exports of Japanese green tea internationally. By 2025, the export value of Japanese green tea should reach 31.2 billion yen (about $197 million), compared with about 25 billion yen (about $158.8 million) in 2023. This is part of the existing state strategy to increase the overall export value of Japan’s agricultural products to over 2 trillion yen in 2025 (circa $12.63 billion) and 5 trillion yen (circa $31.57 billion) in 2030.

Consumption grows in Africa

In recent years, the African region has become one of the major consumers of green tea. For example, Morocco, located in Northern Africa, currently ranks as the world’s sixth largest tea consumer. Green tea accounts for the bulk of tea consumed in the country and it is supplied by China, which leads in terms of tea exports to the region, well ahead of its major rivals.

Harvesting in West Java. Image: Barbara Dufrene

Official statistics of the Moroccan Association of Tea and Coffee Producers (AMITC), report that the kingdom alone accounts for nearly 25 percent of the overall volume of global exports of China green tea, including 46 percent of the ‘Gunpowder’ variety and 54 percent of the ‘Chunmee’ variety.

According to AMITC data, with an annual average of 82,000 tonnes, Morocco is considered one of the world’s leading importers of tea, most of is green tea varieties. Per capita consumption of green tea in the country is estimated at 1.85 kilos per year. AMITC plans to launch production of its own green tea brand as efforts to grow tea started in the 1970s in the Larache region of the country.

In general, green tea consumption in the North African region and in countries in the Sahara region such as Mauritania, Mali, Chad, Niger, Burkina Faso, Senegal, and Ivory Coast has significantly increased in recent years, and the growth is ongoing.

Most analysts expect that with the emergence of Northern Africa as one of the world’s major green tea-consuming hubs, the level of competition for its market among global producers will be heightened in years to come.

In addition to China and Japan, the African region is also under the radar of another major regional player — Indonesia.

Indonesia: growing production

In accordance with the Indonesian Tea Statistics Report from the Central Statistics Agency (BPS), the national tea production in the country varied in the range of 120,000-130,000 tonnes annually during the period of 2022-2023 with the possibility of an increase this year.

In geographical terms, West Java is the largest tea producer in Indonesia with a volume of 66.87 percent of total national production in 2023. Currently, tea is planted on an area of 108.75 hectares in Indonesia with an average productivity of 1.6 tonnes/hectares/year. Most of these areas are green tea. However, according to local experts, the capacity of Indonesia’s green tea processing industry is still limited.

Despite maintaining a high popularity, most analysts do not expect a sharp growth in demand for green tea in Indonesia, over the next several years. Per EM’s Barry, “we are anticipating a slight decline in global green tea consumption [between] 2024 and 2025 of around 1 percent in retail volume terms. That is primarily coming from declining consumption in China and Japan, both of which are very mature markets and facing challenging demographics.”

New green tea markets

In addition to the African nations, a major impetus for a further growth of green tea and its consumption is expected to be provided by India, as well as Turkey and some Arabian nations to a lesser extent.
“The standout in green tea consumption growth is absolutely India, which has been seeing consistent double-digit consumption increases for some time. There is little reason to expect that to slow down.

India is already of course a massive consumer of tea, but health and wellness trends have shifted an increasing number of Indian consumers towards green over the black tea that has historically dominated in India,” Barry explained. “A couple of other big historically black-drinking markets are also seeing similar shifts, such as Turkey and Saudi Arabia.” He said black tea is not seriously threatened in any of these countries but there is an increasing number of occasions shifting to green.

The green tea segment has always been of interest to global players, many of which have significantly expanded their presence in recent years.

An example is US-based Harney & Sons Teas, which has continued to increase its green tea offerings, most notably introducing additional specialty Japanese teas. Emeric Harney, a spokesperson for the company, said that one of its new green teas is called Wazuka Guricha and comes from the Wazuka Valley, the other Asanoka Sencha from the Miyakazi prefecture.

Harney believes the US will provide some major opportunities for growth in the coming years. “America will continue to grow its green tea consumption in 2024. We still find that our export markets show a tempered interest in green teas.”

The US market will remain a priority for another major player – The Republic of Tea. Kristina Tucker, minister of enlightenment and commerce at The Republic of Tea, said the brand continues to see demand for innovative green tea blends. “Our organic Double Green Matcha in tea bags consistently grows year over year since its launch in 2007. Demand for matcha is growing fast again as well as our green teas with a wellness benefit, such as our organic SuperGreen Brain Boost tea.”
Currently, The Republic of Tea offers over 50 varieties of green tea, and “we plan to continue to innovate new blends for green tea lovers. As our focus is on the American tea drinker, we certainly anticipate continued strong demand for green teas in the USA.”

• Eugene Gerden is an international freelance writer who specialises in covering the global coffee, tea and agricultural industries. He works for several industry titles and may be reached at gerden.eug@gmail.com.

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By strict definition, tea is a beverage made by brewing tea leaves in near-boiling water. Whether the tea is black, green, white or oolong, these leaves come from the same plant: Camellia sinensis. Technically, anything not made from this plant should not be called tea.

The history of mixing Camellia sinensis leaves with those from other plants to get new taste and aroma traces its roots to ancient times. Over the years, some additives and alternative plants have started to be consumed independently from Camellia sinensis leaves. This emerging segment is frequently referred to as ‘new teas’, and according to market players, it has a bright future.

The Covid-19 pandemic was certainly good for the herbal tea category, commented Matthew Barry, insight manager, food & beverage research with Euromonitor International, an international think tank.

“Many herbal teas have strong functional positionings that were in demand in 2020, including immune support, anxiety relief, and treatment of Covid symptoms like coughs and sore throats,” Barry said. Growth has been slower since then, but it is notable in itself that the category did not shrink in 2021 the way so many other food and beverage categories did once the pandemic eased, and people’s shopping habits started to return to normal, he added.

In recent years, yerba mate tea, one of the prominent segments of the new teas, enjoyed a strong growth in popularity, commented Amelia Quelas, president of the newly established American Yerba Mate Association (AYMA).

Up until a couple of years ago, the yerba mate business was restricted to those who brought the custom and tradition to consume it from their homelands, specifically South America, including countries like Argentina, Uruguay, Paraguay, and Brazil, and the Middle East, and was sold in small markets and delis that catered to those communities, Quelas said.

“Slowly but steadily, a couple of companies started producing yerba mate-based carbonated drinks and entered the market through larger chains of food supply. Also, stars like Lionel Messi and teammates in the soccer world have spoken about their commitment to using yerba mate for stamina, energy and resilience,” Quelas added.

The emergence of new ‘teas’

Other types of new teas are performing similarly well. The moringa tea market, for one, has been growing steadily in the past several years, commented Clarissa Akakpo, CEO of the Accra-based moringa tea manufacturer, Aguma Tea.

“My tea business is primarily in West Africa, and there is a certain level of local knowledge that the moringa leaf is a great source of nutrients and can aid the symptoms of a variety of ailments,” Akakpo said.

In general, there used to be a perception that moringa is a tea to be consumed when sick or dealing with some form of health condition. The pandemic, however, was a game-changer for the moringa tea market.

“With the Covid-19 outbreak at the beginning of 2020, there was an increase of enquiries for moringa tea globally,” Akakpo shared, explaining that customers were looking to strengthen their immune systems and alleviate some of the symptoms. “This developed an increased general knowledge about the benefits of moringa tea,” she said, emphasizing that the impetus started by the pandemic to the moringa sector had not winded down even when the worst period ended.

Occasional reports indicated that purple tea, another type of the new tea segment, also enjoyed a rise in popularity, although it is twice the price of traditional black tea. Companies working in this niche also emphasize the health benefits of their product.

For example, Summer Tea, a prominent Kenyan purple tea manufacturer, lists high antioxidant content, weight management and improved heart health as the key benefits customers can get from consuming purple tea.

Capitalising on health habits

The Covid-19 pandemic undoubtedly boosted the popularity of at least some new teas, but there is more to it than that. As growing numbers of consumers continued to pursue healthier choices, new teas continue to come into the spotlight. Tea continues to benefit from consumers’ focus on health and wellness in a post-Covid-19 world, said Tan Heng Hong, senior food & drink analyst with Mintel, an international consultancy.

Additionally, Hong suggested that brands can deliver stronger messaging, provide more eco-friendly options, and deliver greater transparency to ensure tea’s continued relevance among sustainability-minded consumers.

In the coming years, the new teas market is poised for exceptional growth in sales, largely owing to a low-base effect. “Teas are recognised as having health benefits, and yerba mate, also has many health benefits, but because it was consumed by a much smaller population than traditional teas, it is coming a little late to the party in the US but [has staying power],” Quelas said.

With regard to herbals, Euromonitor’s Barry said there is not one specific factor behind the growth, “there are a number of things. One is simply a restlessness we find among younger consumers across many beverage categories. Younger people are abandoning sodas for waters, lagers for ready-to-drink (RTD) cocktails, etc.”

According to Barry, another reason for the rising popularity of herbal tea is the interest in functionality. Herbals have done a really good job of speaking to the functional space with a wide array of targeted products, he said, adding that in his opinion, black tea has not touted its own health benefits enough. “Regular consumption of teas from Camellia sinensis is linked to all sorts of positive health benefits, yet black tea is not really thought of as a health drink.”

Akakpo also said that the moringa tea business is growing, and the demand is increasing with the rise in interest in preventative health and well-being techniques. “I have observed that consumers want to incorporate new natural remedies into their everyday diet, and moringa is one of them,” Akakpo said.

A place on the infinite shelf

New teas offer excellent opportunities for tea companies looking to diversity their product range.

“We have been gradually increasing our range of herbal infusions over the last few years for those looking to avoid caffeine as well as to increase the range of flavour profiles,” said Holly Grinstead, a marketing manager for Edinburgh-based tea company, Rare Tea Co.

“The East-to-West cultural exchange will create demand for more tea varieties and new ways to consume it. Tea can increasingly take inspiration from energy drinks and other energizing beverages as consumers look for more natural sources of energy,” Hong added.

“If you have a market where black tea has been dominant for a long time, it’s not surprising to see millennials and Gen Z instinctively want something else,” Barry explained, adding that there is a lot of room for experimentation because of all the different ingredients you can use, and consumers these days are very interested in trying new and unusual beverages.

He noted that the internet has played a key role in this. “Even the most well-stocked tea retail outlet can only have so many options, but online, you have the ‘infinite shelf’. Tea out-performs in e-commerce compared to other food and beverage categories, and I think the variety available is a key reason.” Barry explained that people only want so many kinds of peanut butter or toothpaste to choose from before it becomes too much, but when it comes to tea and herbal teas specifically, they really do seem to want a massive selection.

Market players also continuously study various options for mixing new teas in different blends.

“Business has been good for us in the value addition space,” commented Sahil Radia, CEO and co-founder of Kenyan tea manufacturer, Bahari Teas, which focuses on purple tea, among other things. “We find there’s a lot of focus on tracing the tea from farm to cup and ensuring the tea is planted and produced at optimum standards. organic, Fair Trade, non-GMO tea are even more important now, but commitment to quality and sustainable packaging is also key,” Radia added.

Social media plays an essential role in the growth of the popularity of new teas. “Some health commentators on social media platforms have shared that moringa forms part of the cuisine in India; for example, in some villages, moringa leaves are put into curries and used as a herb; this was also a common practice in many parts of West Africa where moringa leaves and stems would be used as a vegetable in soups and stews,” said Akakpo. “This conversation has led to different types of enquiries. As a result, I have had requests for whole leaf moringa.”

The product range of new teas, as well as the number of market players working in this field, is likely to keep growing for the time being.

“The yerba mate business is still in its infancy, and one of the targets of the American Yerba Mate Association is to help those companies that are already in the market, those that are interested in selling yerba mate products in the US, and also those that are ready to enter the market such as Matea, a new concept out of Boise, Idaho, which is producing a yerba mate matcha energy drink in different flavours,” Quelas indicated.

In general, analysts remain optimistic about the future of the new teas. Barry, for example, pointed to the fact that a lot of the underlying drivers boosting growth are strong and that there is little reason to believe that there will be a reversal anytime soon.

• Vladislav Vorotnikov is a Batumi, Georgia-based multimedia B2B freelance journalist writing about the tea and coffee industry since 2012.

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But the rising cost of goods is not stopping Americans from drinking their daily cup of coffee—whether they prepare it at home or purchase it a coffee shop. US coffee sales at retail alone in 2023 hit US $18.9 billion – 18% of the global total – making the US the world’s largest coffee market (US #1 in coffee spend while is Brazil #1 in consumption), said Matthew Barry, insight manager food & beverage, Euromonitor International, during the National Coffee Association’s (NCA) recent ‘US Coffee Outlook 2024’ webinar.

However, the US is very tilted to foodservice coffee with Americans spending more than twice in that channel than they do at retail. The coffee shop segment continues to grow amid the turmoil, explained Barry. “A major shift is taking place towards a more tech-driven, to-go model de-emphasising the human aspect while ‘permissible indulgence’ spending cushions the sector against economic trouble.”

At retail, ready-to-drink (RTD) coffee remains the top performer in terms of growth, which has slowed but still leads. Pods is the next largest category, which Barry noted is doing well in the US but struggling in Europe, followed by standard ground and whole beans (the smallest category but a solid performer). Despite the availability of higher quality instant and pioneers of specialty coffee entering the category, soluble coffee’s performance is still subpar and sales are expected to decline in the US in 2024.

E-commerce has been a particular bright spot for the coffee industry category, with Barry saying that “a slowing segment overall has not damaged coffee. Sales were up 24% for the first three quarters of 2023 over the same period in 2022.”

Although consumers may not be able to live without their daily small indulgence, coffee is not immune to the effects of higher prices. According to Barry, steep prices are narrowing the window for premiumisation. “Americans are showing less interest in paying for virtually any sort of value-added attribute.” This is affecting areas like organic, environmentally friendly and sustainably produced products.

While American consumers may not be willing to pay for just any ‘value-added attribute’, they will for those will health claims so the most advantageous way to premiumisation is through functionality. “Health remains a spending priority even with consumer pullback,” shared Barry, adding, “functional coffees should be able to benefit from this. Energy, digestive health, and weight management should see especially interesting [growth] in 2024.”

Another growth area is digestive health as the microbiome is better understood. “Particularly important will be emerging understanding of the microbiome’s [probiotics] effect on wider health such as the ‘gut-brain axis’,” he commented.

Experts have warned that 2024 will be hottest year in history, surpassing 2023 which was the hottest to date, so climate will be top of mind with consumers. However, “consumer willingness to spend on sustainability is not increasing,” Barry explained, adding, “the pressures from years of inflation have led fewer consumers to be willing to spend on more sustainable products.”

He said that sustainability is becoming about adaptation rather than consumer appeal, that is, more of a supply chain interest area rather than a way to appeal to consumers (a focus on decreasing supply chains, water availability, etc.).

So, to sum up the coffee outlook for this year [per the NCA/Euromonitor International — I am curious if others agree or have a different opinion]: although high prices will keep consumers pessimistic thereby rendering premiumisation more difficult, the US coffee market is set to have a good 2024 particularly from growth in coffee shops spending, RTD coffee and functional coffees.

• Vanessa L Facenda, editor, Tea & Coffee Trade Journal.
  Keep in touch via email: vanessa@bellpublishing.com Twitter: @TCTradeJournal or LinkedIn: Tea & Coffee Trade Journal

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“We don’t talk about any other agricultural products in this framework of superior and inferior. We don’t say red wine is inferior, white wine is superior,” said Sahra Nguyen, founder and CEO of Nguyen Coffee Supply, advocates of Robusta since its founding. “A really easy way to completely deconstruct this false framework of the Arabica-Robusta dichotomy is to apply all the ways that we evaluate and appreciate the differentiated qualities of the wine industry to the framework of coffee. We’d be in a completely different space.”

Robusta is the common name for the species Coffea canephora, and, in the history of coffee, Arabica predates Robusta, with the latter not being introduced to the coffee market until 1900, according to the Special Coffee Association’s (SCA) chief research officer, Peter Giuliano. “Robusta was positioned as a way to produce coffee cheaply in places where Arabica couldn’t thrive – and became associated in the coffee market with cheapness,” explained Giuliano.

In short, Robusta is easier than Arabica to grow, as, informed Spencer Turer, vice president of Coffee Enterprises, it requires lower altitudes (0-600m compared to Arabica’s 600-1,200m), and, in part due to its higher caffeine content (2.2-2.7 percent to Arabica’s 1.2-1.5 percent), it is more resistant to pests and diseases; it grows ‘robustly.’ What’s more, when it comes to harvesting, the Robusta coffee cherries ripen all at the same time, compared with Arabica which ripen at different times on different branches. This means that Robusta requires less labour to harvest as it can be done all at once, rather than the often-repeated visits required for Arabica. This, combined with its generally higher yields, has positioned the Robusta species as an efficient and cheap to produce coffee crop.

“Beginning in the 1950s and 1960s, some companies began blending large amounts of cheaply produced, low quality Robusta to make their coffees cheaper. In some ways, the specialty coffee revolution was a reaction to this ‘race to the bottom’, and the canephora species was easy to blame,” added Giuliano.

An overdue uplift

When the specialty coffee industry evolved, therefore, in the late 1980s and 1990s, since Robusta had only been produced cheaply to meet volume and nothing else, the quality of it was not comparable to that of Arabica and it has been considered antithetical to specialty ever since. As a result, as Gloria Pedroza, head of quality, NKG Quality Services Switzerland, explained, “The industry is more familiar with this species [Arabica], it has invested in research and has experimented with processing methods, meaning that Arabica is a few decades ahead in terms of development and marketing compared to other species.”

Image: ICO Production Statistics

Consequently, there has been a chronic lack of investment and research into optimising Robusta production. There were no systems or infrastructure in place to allow producers to differentiate their Robusta, and there was no incentive for them to try. Nguyen noted, “I know a lot of very passionate Robusta producers; they want to improve their crop, they want to improve their land, they want to improve their wages. But the market is so fixated on this stigma, that it won’t pay a higher rate because they don’t believe Robusta can be quality.” She noted that “there’s been an entire community in the coffee world that that has been told you don’t deserve investment. You don’t deserve care. You don’t deserve to improve or advance your livelihoods, and that’s what we are ultimately trying to lift when we talk about Robusta.”

There are markets, meanwhile, Hanna Neuschwander, communications & strategy director at World Coffee Research (WCR) argued, where Robusta has always been highly accepted by consumers, such as in Italy where it has been used in espresso blends for decades, and in certain African markets it is prized for its flavour over Arabica. Further, with Robusta now making up 40 percent of global coffee production, a rise from 25 percent since the early 1990s, it is not an unfamiliar flavour profile for consumers, with it pervading across the coffee industry and its numerous brands and products for many decades.

Yet it wasn’t until 2010 that the Coffee Quality Institute (CQI) launched its Robusta Q programme, to complement its existing Arabica Q programme, followed by the debut of the CQI Fine Robusta Standards and Protocols in 2015. This gave the coffee industry the framework it needed to differentiate Robusta in terms of quality and offer it something to build on and parameters to innovate within.

Nguyen Coffee Supply, founded by Sahra Nguyen in 2018, championed Robusta from the offset, and has been “extremely loud and proud” about it ever since. Its 100 percent Robusta products have been clearly labelled as such from the start, vehemently dismissing the industry norm to hide a coffee product’s Robusta content. Nguyen explained that, despite her company being both an importer and a roaster, it largely operates in the consumer space; “In the B2B space, the stigma [against Robusta] was just too strong, where I couldn’t really break through.” Whereas in the consumer market, the stigma against Robusta is minimal to non-existent.

Nguyen continued, “Consumers are generally unaware of this negative perception, and they really don’t care. […] They just want what they want right?” Nguyen Coffee Supply has invested a lot of its resources in the marketing, education, and storytelling side of its brand, to “shift consumer perceptions that would then create a ripple effect into the industry,” she said, and they have since seen the movement grow, with more and more brands beginning to champion Robusta.

Sahra Nguyen, Nguyen Coffee Supply founder, holding limited edition anaerobic Robusta beans. Image: Nguyen Coffee Supply

Nguyen Coffee Supply has built on this ethos with its Robusta Pledge, which encourages other producers, importers, roasters, cafés, businesses, and coffee enthusiasts to sign a commitment to advance opportunities for Robusta farming communities and for a transparent and fair Robusta market.

Sustaining the future of coffee

While Nguyen Coffee Supply recognises the importance of the Robusta bean and the immense value it holds for the coffee industry, gradually this mentality is spreading. In March 2023, WCR launched its Robusta Variety Catalogue, alongside other Robusta resources such as a Grafting Manual and Nursery Videos. It is becoming increasingly evident that the future of coffee production as we know it is at considerable risk, largely in part due to climate change and the impact this is having on the temperatures and conditions in coffee growing regions. WCR operates a breeding programme for coffee varieties to not just optimise taste, but to encourage climate resistance and better adaptability or suitability to particular conditions. This year, WCR is planning to launch a global Robusta specific breeding network, which will produce hundreds of new Robusta crosses. It is thought that Robusta will be a crucial tool in safeguarding coffee production for future generations.

As already discussed, Robusta has proven to be more pest and disease resistant to Arabica, this, as Pedroza explained, combined with the higher planting density and leafier shrubs creating shade under the plants, helping the soil to maintain moisture, discourages the growth of weeds around the plant which means that less herbicides and pesticides are necessary. These more organic practices encourage long term soil health, further contributing to yield, and protecting the local and wider ecosystem of the area.

With 50 percent of land for Arabica production projected to be no longer suitable by 2050, as forecast by WCR, among others, preparations must be made. “It is difficult to see how the industry can avoid using a greater proportion of Robusta beans in the future given the realities of climate change,” noted Matthew Barry, insight manager of food & beverages at Euromonitor International. Arabica is already struggling to keep up with global demand. Neuschwander emphasised that “Robusta has already saved the coffee sector. If Robusta had not arisen over the last few decades to its current position (40 percent of total production), many – perhaps millions – of coffee farmers would be out of work and entire segments of the coffee market would not exist. Without Robusta, we would not have been able to keep pace with growing global demand over the last three decades.”

However, Robusta is not immune to the climate emergency; WCR predicts that with consumption and climate trends as they are, the world could be facing a Robusta shortage of up to 35 million bags by 2040. As the years progress, Neuschwander concluded, “We need every tool we can get to respond to climate change – farmers will have to ‘run faster just to stand still’.”

Opportunities for innovation

Robusta has quite quickly and assuredly established itself on the specialty coffee scene, with Nguyen affirming that roasters are now frequently asking the company for fine Robusta, or single origin Robusta. Giuliano concurred that the request for Robusta has been the SCA’s most asked question of 2023, and Turer that Robusta is offering roasters a unique selling proposition for them to differentiate themselves.

Image: Nguyen Coffee Supply

“Increasing interest in Robusta signifies a coffee market that is creative, innovative, and open to new ideas. The success of Robusta is part of an increasingly diverse coffee market which is more likely to thrive in the long term,” enthused Giuliano.

And we are only just starting to scratch the surface of Robusta processing methods, believes Nguyen, with Nguyen Coffee Supply recently having released an anaerobic Robusta. Pedroza added that if Robusta is treated [during processing] the same way as Arabica, excellent results are possible. She explained that for decades the washed processing method was considered the best for high quality coffee, yet now, “New processing techniques like extended fermentation periods, anaerobic fermentation, just to mention some, have also had a great impact on the cup, proving that Robusta has a huge quality potential and the industry is in the process of discovering it.”

The opportunities the evolution of Robusta presents for the industry for both innovation and sustainability justify its dizzying rise to the realm of specialty coffee. “Coffee is economically important – and beloved – around the world, yet it faces a [USD] $452 million/year investment gap. Filling that innovation gap is how we ensure a future with quality coffee from climate resilient trees, whether that coffee is Arabica, Robusta, or any other species,” explained Dr Jennifer “Vern” Long, CEO, WCR.

Nguyen also noted that, as a result, she thinks we are headed towards more global collaboration as a coffee industry, “for uplifting Robusta, and also just expanding the coffee experience to make it better for everyone.”

So, although, as Neuschwander articulated, “Robusta is not a silver bullet for climate change or sustainability efforts in coffee,” it is an exciting time for the coffee industry, as it begins what many believe to be a long overdue embrace of “the underdog bean.”

• Kathryn Brand is an associate editor on T&CTJ, while still writing for several of Bell’s other magazines. She joined Bell Publishing at the beginning of 2022 after graduating from the University of East Anglia with a degree in English Literature and Creative Writing. She may be reached at: kathryn@bellpublishing.com.

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As with previous NCA Convention programming, much of it will be forward looking. But looking back at 2022, it was another strong year for the US coffee market, with retail sales alone reaching USD $18 billion, making the United States the world’s largest coffee market in terms of sales (consumption wise Brazil is higher), per global market research firm, Euromonitor International.

In an NCA webinar in January, a sort of preview to many topics that will be discussed during this year’s convention – US Coffee Outlook – presenter Matthew Barry, food & beverage insights manager at Euromonitor, said that the average American spent $223 on coffee last year, with out-of-home spending around $131 per person per year –the largest spend – no small amount given rising prices and consumers’ tightening budgets.

Barry noted that RTD remains the key growth category in US coffee. Fresh ground coffee pods the next largest category, followed by standard fresh ground coffee, and then fresh coffee beans. Instant coffee, he said, is the only category that is expected to decline in the US.

Coffee, like most grocery items, continues to rise in price — coffee prices are up about 15% since 2021. “Standard/staple grocery items are rising in price faster than inflation,” said Barry. “Inflation rates are starting to slow down but American consumers are not confident.”

And yet, despite the macroeconomic problems that are all weighing down the US economy (federal rates tightening, declining consumer savings, trouble in China and Europe), coffee has been surprisingly resilient so far. Coffee, Barry explained, has been deemed a ‘permissible indulgence’.

“There are two paths to succeed for coffee in tough economic times: essential product and permissible indulgence,” he said. Furthermore, coffee is compatible with all major current diet trends – Keto, intermittent fasting, paleo, Mediterranean, and vegan/plant-based, to name just a few – which bodes well for its continued growth.

Questions around caffeine and energy remain important trends with two competing sub-trends: more caffeine and moderating it. Not so much a trend, but more so a desire to be more sustainable remains strong (according to Euromonitor, 62% of Americans say they actively try to help the environment in their everyday actions), but “consumer willingness to spend is limited,” said Barry.

NCA Convention speakers and sessions will address trends and challenges impacting the US coffee industry primarily (but globally as well). As we are nearing the end of the first quarter of

2023, it will be interesting to how the ‘outlook’ has changed since January, and what it is for the remainder of the year.

• Vanessa L Facenda, editor, Tea & Coffee Trade Journal.
  Keep in touch via email: vanessa@bellpublishing.com Twitter: @TCTradeJournal or LinkedIn: Tea & Coffee Trade Journal

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Over the last few years, social, environmental and economic challenges have escalated. Coffee and tea communities have recognised that positive change in these areas requires both collaboration and concrete actions. Today, ‘corporate social responsibility’ (CSR) has become part of the fabric of the business world, requiring brands to tackle challenging subjects, including child labour, climate resilience, gender, pay equity, and diversity.

“CSR should become an integral and self-evident part of all businesses and strategies,” said Donna Gray, director of public relations, trade marketing, Melitta North America, Cherry Hill, New Jersey [part of the Minden, Germany-based Melitta Group]. “All employees need to be included in the transformation process because it is only when everyone is aware of the purpose of the sustainability goals that they can adopt the fundamental attitude required to make substantial progress.”

Sustainability is an integral part of Melitta North America’s business and strategies. In 2019, the company developed a ten-year road map to achieve ambitious sustainability targets across its value chains and processes. “We seek to set up all our processes in a way that supports sustainable development while continuing to strengthen our future,” said Gray. “Concepts and goals that have been developed for the future should only be seen as interim steps or milestones, which–as soon as they have been achieved–will have to be developed further.”

Image: Melitta

These initiatives include implementing measures and building alliances across the value chain that positively influence the growing regions’ political, economic, and social development. Recent CSR actions include planting over 500,000 trees with the American Forest Organization and installing solar panels on the roof of their production facility in Cherry Hill, New Jersey, reducing their annual C02 emissions by approximately 357 metric tonnes.

Corporate social responsibility is all-encompassing, requiring companies to identify their values and then follow through with the internal and external changes that embody them. “Since the early formation of the company there was a foundational set of values that put illy on a path of being a stakeholder company aiming to improve quality of life through ethics and excellence,” said David Brussa, total quality and sustainability director, illycaffè Spa, Trieste, Italy. “Ethics as the creation of long-term value through transparency, sustainability, and personal growth; and excellence as a passion for quality, beauty, and constant improvement.” The company has adopted several initiatives, including reducing carbon emissions to achieve carbon neutrality by 2033, in-depth industry training on the scientific, technological and humanistic areas of coffee, through its Masters in Coffee Economics and Science, and continuing to build the regenerative supply chain.

Image: illycaffe

In 2021, illycaffè challenged its employees to adopt a new habit that would positively impact the environment, to demonstrate that small actions have an impact. Based on the number of employees who participated, illycaffè funded a sustainable project, the Coffee Kindergarten and Coffee Camp in Guatemala, which provides an educational and meal service for children of coffee pickers at a plantation in the southwest part of the country. The company also earned B-Corp certification in April 2021, demonstrating its commitment to becoming leaders incorporate social responsibility.

“Those looking to implement sustainable activities need to support grower communities to create a sustainable value chain that supports the most integral part of the supply chain – with that aspect in mind, our industry needs to take action with one of the most pressing issues which is the impacts of climate change, where collaboration is needed to ensure the future livelihood of so many communities, who depend on coffee growing,” said Brussa.

Starbucks Coffee, Seattle, Washington, is well recognised as a leader in corporate social responsibility, including publishing its initial CSR report in 2020. The report centered on the company’s commitment to being accountable and transparent about both business practices and performance. This past April, Starbucks Global released its Environmental and Social Impact Report demonstrating that an integral component of CSR is evolving with the current social, environmental, and economic climate. A few of the environmental initiatives include aspirations to become resource positive, including building and operating 10,000 Greener stores by 2025 and joining the US Dairy Net Zero initiative, including a 10 million investment, to help provide farmers with access to effective environmentally and economically viable practices and technologies.

Over the past few years, there has been an increased recognition that CSR involves investing the time to understand the unique needs of each community. When developing its CSR partner programmes, Starbucks adapted them to the needs of each region; programmes include the Home Sweet Loan programme in the UK, mental health services for partners in Canada, and monthly housing subsidies for full time Starbucks baristas and shift supervisors in China. Diversity and inclusion remain a primary focus within their operation, including establishing representation goals to increase BIPOC and women’s representation in corporate, retail, and manufacturing. Starbucks remains committed to ethical sourcing, including sourcing 99.9 per cent of tea from Rainforest Alliance Certified farms, and launching the Starbucks Digital traceability tool in North American retail stores to help strengthen connections between the consumer and the individuals throughout the supply chain. In fiscal year 2021 (FY21), more than 33,000 bags of coffee were traced using the traceability tool online, helping raise awareness for farmers, CAFE Practices, and Starbucks’ ongoing commitment to transparency.

JDE Peet’s–the world’s leading pure-play coffee and tea company by revenue – corporate responsibility strategy is centered around three pillars: addressing the issues in the supply chain, reducing their environmental impact, and engaging their employees and community. The Amsterdam, Netherlands-based company recently announced it will increase its responsibly sourced coffee target from 30 per cent to 80 per cent by the end of 2022, including investing 150 million EUR into its responsible sourcing program to support one million small holder coffee farms by 2025.

In 2021, Peet’s Coffee, the US subsidiary of JDE Peet’s, reached 100 per cent responsibly sourced coffee through its partnership with Enveritas. JDE Peet’s will now leverage the partnership with Enveritas across its broader coffee supply chain, allowing it to reach its ambition of 100 per cent responsibly sourced coffee by 2025. The company has also committed to 100 per cent recyclable, compostable or reusable packaging by 2025, efficient water usage, and achieving gender balance across management positions by 2025.

Image: Starbucks Coffee

CSR and sustainability have been guiding principles for Bigelow Tea almost since its founding. In 2021, the company, which became a certified B Corp in 2019, launched a training initiative across the organisation that focuses on sustainability education for both the workplace and home. Integrated into the traditional training modules, the sustainability training is a year-round educational programme that equips employees with the most up-to-date best practices for reducing their impact on the environment. It also gives employees a voice to suggest additional measures to further that goal within the organisation.

CSR is inherent in tea’s philosophy

“Our goal at Bigelow Tea is to continually strive to be a more eco-conscious company as a whole. Empowering our employees to be champions of this change in their work and home lives was a natural extension of this goal,” said Cindi Bigelow, third generation president and CEO of Bigelow Tea, when announcing the new initiative.

Image: Bigelow Tea

Some of Bigelow Tea’s most recent efforts to reduce its impact on the environment include a partnership with Fermata Energy, installing a bidirectional charger at their Louisville location and adding the company’s first electric vehicle. In addition, Bigelow Tea was certified by Green-e Energy for using 100 per cent renewable energy across all three of its locations, and completed a four-year energy audit, which enabled the reduction of energy usage ranging from 2 per cent – 14 per cent across its three locations.

Bigelow Tea installed 870 solar panels on the roof of its Fairfield, Connecticut headquarters in 2007 and has been certified as a Zero Waste to Landfill company since 2012, diverting 95.3 per cent of its solid waste companywide through composting and recycling programmes.

Clipper Tea is one of the founding Fairtrade brands, and as such, it actively supports 114,000 tea producers and their families annually and has contributed more than GBP £2 million to Fairtrade projects over the past seven years. In addition to supporting fair wages, Dorset, England-based Clipper also contributes towards the Fairtrade Premium that producers can spend where it is most needed within their communities, which includes areas like education, healthcare and retirement to help improve the lives of workers and their families.

As well as ethical sourcing, Clipper is also committed to minimising its impact on the environment through organic and sustainable materials. The brand launched a biodegradable tea bag in 2018—it is plant-based, unbleached and non-GM. Additionally, Clipper’s tea bag envelopes are fully recyclable and the string and tag on the tea bags are organic.

Navigating the CSR landscape

Tea and coffee are complex global commodities grown in various regions, each with unique needs and barriers. Centralised CSR approaches fail to consider the variances in each community; however, it can be challenging for companies to identify which initiatives to tackle first. Partnering with certifications is one approach that brands have taken to help navigate the CSR roadmap while also providing transparency to the consumer.

“We think of ourselves as a tool for brands to tackle their corporate social responsibility goals. However, it can feel incredibly daunting,” said Isabella Pacheco, senior development manager, coffee and retail partnerships, Fairtrade America, Washington, DC. Fairtrade America’s primary goal is to assist farmers with getting a fair deal, but within that approach, they help create a structure for brands, including reviewing what needs to be put in place to help attain a cleaner and more sustainable supply chain.

“We know that by 2050, 50 per cent of the land used for coffee may no longer be viable, and so we also see the industry from the lens of what this means for those producers currently living in those regions,” said Pacheco. As a direct result, Fairtrade America has shifted its focus to developing the climate academy, including teaching best practices for climate resiliency and water conservation.

The continual evolution of CSR

Although the term corporate social responsibility is more corporate than consumer-centric, it is consumers who are holding companies accountable, including ensuring that their actions are aligned with their values. “I think the pandemic did a big shift on intentionality for consumers ,and research is backing that up,” said Pacheco. “Consumers are listening, and they want to see brands walk the talk more than ever.”

Over the past few years, the environment has become increasingly important. As a result, companies are taking concrete actions to reduce their impact, including developing CSR initiatives focused on achieving net-zero or becoming resource positive. However, making broad statements is no longer enough; at the bare minimum, there is an expectation that companies have a road map in place on how they will achieve these goals. “Consumers expect companies to have stances on issues which previously would have been not seen as part of a corporation’s fabric,” said Matthew Barry, senior consultant, beverages, Euromonitor International, London, United Kingdom. “Values aren’t universally applicable, so the natural out growth is for consumers to align with the brands that reflect their values; this is particularly true with products like coffee and tea that have an emotional connection.”

Recently, consumers are becoming increasingly vocal about the war between Russia and Ukraine, urging companies to cut their ties with Russia. As a result, large brands, including Starbucks, Coca Cola and McDonald’s have temporarily suspended business operations in Russia, while pledging to continue to pay their staff. “There’s a public sense that consumers don’t want to deal with brands that have a relationship in Russia, which is really unprecedented,” said Barry. “That is an interesting precedent. Will there now be an expectation for brands to pull out when a country does something that is viewed as being over the line?”

The political, environmental, economic, and social landscapes directly influence CSR initiatives. From a business perspective, it requires that companies are continually evaluating and evolving to ensure that they are responding to the current challenges while also taking action to create a better tomorrow. “We need to start seeing CSR like a marathon, not a sprint,” said Pacheco. “Brands need to pace themselves and I think consumers will appreciate any effort, provided that the brand is committed to making a difference and is it in for the long haul.”

• Anne-Marie Hardie is a freelance writer, professor and speaker based in Barrie, Ontario. She may be reached at:annemariehardie1@gmail.com.

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The last two years have been stressful. Globally, stress and anxiety now rank as the second most common health concern, according to Euromonitor International’s Voice of the Consumer: Health and Nutrition Survey 2021. Many of the other top reported issues, including sleeping problems and headaches, tend to be closely linked to high stress levels.

Decaffeinated coffee and tea should therefore benefit, right? Actually, the exact opposite is happening. Per capita, consumption of both decaffeinated teas and coffees are projected to fall in the coming years even as consumption of tea and coffee overall is set to rise.

Some of the best-selling coffee products are those with added caffeine. Image: Death Wish Coffee

Many of the best performing coffee and tea products in recent years have been those with added caffeine. Death Wish Coffee in the US is the standout example of this trend. Throughout the world, there are now coffees (and to a lesser extent, teas) embracing the idea of ultra-caffeination. Adjacent categories like bottled water are also launching caffeinated products to take advantage of this continuously rising demand.

But how can these two clear trends coexist? Why are consumers eager to increase their caffeine consumption while also being concerned with their stress levels and sleep quality?

The explanation is found in the caffeine paradox—higher levels of stress and sleep troubles lead, paradoxically, to higher demands for caffeine.

At the core of consumer stress is the desire to accomplish more. And this desire creates more stress, which leads to more caffeine consumption for sufficient energy. Consumers certainly have a great deal to do. In fact,42 per cent of consumers in Euromonitor’s 2021 Lifestyles Survey feel under constant pressure to get things done.

Stress and anxiety rank as top concerns not just for American adults, but globally as well. Image: Euromonitor

Sleep disruptions play a role here too. Consumers who sleep poorly look for more intense caffeine boosts to allow them to focus and be productive throughout the day.

This creates a dual demand. One segment of consumers wants ever-higher levels of caffeine, whereas another wants energy that produces a less anxiety-inducing boost. The first group is the one powering the rapid growth of ultra-caffeinated coffee and energy drinks. The second exists but is much smaller.
More than 40 per cent of global consumers report a desire to reduce their caffeine intake, according to Euromonitor’s 2021 Health and Nutrition Survey. But this sentiment is purely aspirational for many. The need to power through the day often overshadows the goal to cutback on caffeine and relax. But interesting product launches in the low-caffeine space have so far failed to gain more than niche appeal. This desire to reduce caffeine consumption is real but is destined in most cases to go unfulfilled in the short term.

Image: Euromonitor

Is this paradox sustainable? The answer seems to be yes. Even with rising caffeine levels, no major market of the world is approaching consumption of the 400 mg per day threshold where most health authorities fix the upper bound of healthy intake.

High-caffeine product launches do not seem to be slowing, and decaf sales remain sluggish, suggesting that the caffeine paradox will hold true for a significant amount of time still.

That leaves coffee and tea where they have always been—powerful tools in coping with the larger challenges of life. The underlying stressors of the modern world are beyond the power of the industry to solve. But manufacturers can offer a range of products to help alleviate possible burdens, from those who want as much caffeine as they can consume to those prioritising mindfulness and looking to cut back. As for the foreseeable future, the former will be the dominant force.

• Matthew Barry is senior beverages consultant at London-based Euromonitor International. He is based in the Chicago, Illinois office. He may be reached at: matthew.barry@euromonitor.com.

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Wellness teas have experienced an ongoing rise since the global Covid-19 pandemic began, and there’s no sign that the trend is ending anytime soon. Thus, it’s a clear opportunity for the tea industry and beverage developers alike, to capitalise on the growth.

In November 2020–amidst the early phase of tea’s newfound popularity during the Covid-19 pandemic–writer/reporter Rebecca Deczynski summed it up at Refinery 29: “Right now, tea culture is at its peak. You’ve likely found yourself scrolling past targeted ads for herbal elixirs or swiping through endless Instagram stories depicting still-steaming mugs. You’ve heard celebrity endorsements for choice brews, and you’ve read about ‘wellness tea’ in magazine roundups devoted to self-care. The stuff is more popular than ever…”

John Lenz, the vice president of sales and president of hospitality at Intelligent Blends in San Diego, California, reported that while coffee is still considered a relatively healthy beverage, tea boasts the most benefits over any other type of beverage. “Wellness teas were already on the rise before the pandemic, but as more people looked for solutions to boost immunity, they found tea,” said Lenz. “Living through a pandemic has made many people realise the importance of immunity-boosting food and beverages.”

High demand for functional beverages

Chicago-based ADM, a leader in nutrition and a partner to the world’s leading consumer brands, regularly looks at consumer trends through its proprietary “Outside Voice” consumer insights platform. The organisation’s recent 2021 research found that 31 per cent of consumers are purchasing more items tailored for their health, and 50 per cent report a preference for foods and beverages that naturally contain beneficial ingredients. ADM also noted that the desire to influence health and wellness through foods and beverages is creating new opportunities for nutrient-dense products with functional health benefits aimed at supporting immune systems, enhancing mood and sustaining energy.

Vince Macciocchi, senior vice president and president of ADM’s Nutrition business unit, and the company’s chief sales and marketing officer, explained, “The global health crisis has changed consumer preferences in new and unexpected ways. We are seeing a heightened demand for foods and beverages that support immune systems, enhance our mood and reduce our environmental impact, driven in part by emerging human tensions. This has provided a unique opportunity for brands to develop disruptive new products that will forever change the way we eat and drink.”

Maria Uspenski, founder and CEO of The Tea Spot – which offers numerous premium teas focused on wellness and functional benefits, shared, “Consumers are seeking natural ways to support wellness, whether it’s strengthening immunity, helping reduce stress, or bringing oneself ‘back into balance’ with a cup of tea. In fact, consumers are seeking all varieties of tea–including traditional teas, functional teas, botanicals, and herbal blends. We expect that premium tea and specialty wellness teas will continue to stay in the forefront of consumers’ minds.”

Clipper Teas launched a functional teas line in 2021 designed to improve moods. Image: Clipper Teas

Shabnam Weber, the president of The Tea and Herbal Association of Canada, a leading authority on all things tea in Canada, representing members from bush to cup, agreed. “The need to take care of one’s well-being, both physical and emotional, remains a strong driver for consumers,” she explained. “Today, 58 per cent of consumers are actively looking for healthy products when they shop, resulting in a 171 per cent increase of functional food and beverages introduced to market in the past ten years. This trend will continue, and it provides the tea community with an opportunity to boost its growth by focusing on tea as a healthy beverage.”

Indeed, consumers are eagerly seeking products that they believe support wellness. For example, Whole Foods Market global buyers and experts recently unveiled their top ten anticipated food trends for 2022, and functional beverages – including teas or beverages made with botanicals – are expected to rise in popularity in the next year.

“Last year, we saw tremendous pandemic-related shifts in grocery buying habits as the world adjusted to spending more time at home,” said Sonya Gafsi Oblisk, chief marketing officer at Whole Foods Market. “As the food industry slowly adjusts to a new normal, we expect to see consumers prioritise food and drink products that deliver additional benefits – like functional sodas and tonics – and products that support their sense of well-being…”

Major brands launch wellness teas

Some of the national and multinational brands that have recently introduced wellness teas in the marketplace include Celestial Seasonings, Twinings, The Tea Spot, Buddha Teas, and other major players.

Boulder, Colorado-based Celestial Seasonings, the specialty tea brand and subsidiary of Hain Celestial Group, launched Tea Well, a line of organic wellness teas that couples daily health benefits with flavour. Tea Well blends include Mood Tonic, Sleep (the first tea with melatonin sold in the United States), Laxative and Gut Health (featuring a blend of prebiotics, probiotics and fibre).

“Beyond the mental health benefits of sipping a warm cup of tea, many consumers choose tea for its health benefits,” said Tim Collins, vice president and general manager at Celestial Seasonings. “We want to make sure we are delivering on this promise with products that go above and beyond in providing the benefits you’d find in your typical cup of tea.”

In addition to the Tea Well line, Celestial Seasonings’ ‘Taste the World of Celestial Seasonings’ ad campaign highlights the feel-good benefits of drinking tea. Video vignettes focus on Celestial Seasonings Green Tea for energy, Vitamin C tea for immune support, and Sleepy time tea to winddown. Through whimsical imagery and narration, the campaign is designed to introduce hot tea as a healthy and flavourful choice.

“This campaign captures the essence of how Celestial Seasonings brings balance and benefits everyday,” said Melinda Goldstein, chief marketing officer at Hain Celestial.

In May 2020, The Tea Spot launched its Flu Fighter wellness tea, a caffeine-free herbal blend that features functional ingredients, including astragalus, honeysuckle, organic liquorice root, orange peel, tangerine peel, dandelion root, mulberry leaf, red root, and organic ginger.

According to The Tea Spot, the ingredients in the Flu Fighter tea were chosen based on a medical report published in Military Medical Research (Volume 7, Article Number 4, February 2020), on the diagnosis and treatment of the novel coronavirus (2019-nCoV), where a combination of herbs and roots were used to support flu-like symptoms.

The Tea Spot’s Uspenski said, “The pain and stress of the current pandemic has pushed The Tea Spot to think outside the box as to how we can help empower people to find and support better overall wellness.”

In October 2021,The Tea Spot reported that their line of women’s teas – called Goddess Women’s Teas – were a best-seller for the company that year, as more consumers discovered premium tea or sought tea for its wellness benefits. The tea line features three 100 per cent organic tea blends that showcase botanicals and herbs to support women’s health throughout different stages of life.

Buddha Teas saw sales of its immune-boosting and lung health teas rise during the pandemic. Image: Buddha Teas.

John Boyd, co-founder of Colorado Springs, Colo.-based Buddha Teas, also noticed that more customers discovered tea during the pandemic. “We saw a huge spike in our herbal teas that boost the immune system. Our pure Elderberry had an astronomical increase in sales, and we attribute that to the amount of elderberry in each tea bag–2,000mg. Everyone seemed to jump on the immunity boosting teas band wagon. Also, our lung health teas – such as Mullein and Eucalyptus – have gained tremendous momentum.”

Boyd shared that Americans have traditionally been coffee drinkers, however people are leaning towards drinking tea. “Society is becoming more health conscious and most people know that green teas are much healthier than coffee, and they still provide the same caffeine kick that people are looking for to start their day,” he said. “Not to mention the fact that some of our caffeinated teas contain an ingredient that totally takes the edge off that jittery feeling while still kicking you into overdrive. Specifically, I’m talking about matcha and L-theanine.”

Twinings, a leading wellbeing drinks brand, also focused on an ad campaign to attract consumers to the healthy tea lifestyle. Its ‘Drink in Life’ campaign showcases the company’s new Superblends collection, demonstrating how these new products help consumers “feel good, live well and enjoy life.”

Twinings’ Superblends line – at the heart of its “Drink in Life” campaign – features four new flavours that are fortified with vitamins and functional additives, and additional flavours are slated for 2022.

Twinings new Superblends wellness line is designed to help consumers ’feel good, live well and enjoy life.’ Image: Twinings North America

“Our ‘Drink in Life’ campaign is rooted in the idea that taking even the smallest step counts when it comes to reaching your wellness goals and contributing to your overall health,” said Mike Currie, vice president of marketing at Twinings North America, based in Clifton, New Jersey.

Currie noted that the wellness segment in tea has been growing for a while, but the pandemic has accelerated the interest in wellbeing and beverages that support this. “Consumers are putting their wellbeing at the forefront and paying close attention to the products that they’re consuming,” he said. “From an overall industry perspective, this directly correlates to the steady increase in wellness tea sales. These consumers are investing in authentic brands that value transparency and put wellbeing within reach with small steps, making them feel optimistic about their purchases.”

Herbal teas are also big in the wellness tea marketplace

When it comes to wellness teas, it’s important to note that herbals teas and herbal blends are among the teas on the rise, in addition to true teas from the Camellia sinensis plant.

On the whole, the herbal beverages market, which includes herbal tea, is experiencing considerable growth, according to a new report from analysts at Vantage Market Research. In fact, the herbal beverages market is expected to reach USD $2.45 billion by 2028, growing at a compound annual growth rate (CAGR) of 5.1 per cent between 2021 and 2028. Factors like the rising awareness of the advantages of herbal-based beverages – such as replenishing skin from the inside, enhancing health, supporting healthy joints and rejuvenating the body – are facilitating the growth of the market for herbal beverages, according to the research firm. The herbal tea segment, specifically, is anticipated to grow more than 4.6 per cent CAGR over the forecast period.

Northern California-based tea author, educator and tea festival organiser, Babette Donaldson, owner and publisher of T Ching and the founder of the International Tea Sippers Society, noted, “The sense of helplessness and frustration in this time of Covid-19 motivates many to look to ancient healing lore. Many do this to feel that there are ways to take control of one’s own well-being. In the past, some in the tea industry have focused on the ‘tea and health’ message to include only Camellia sinensis. But customers are looking for something more inclusive in their cups. Resources for herbalism are abundant and bridge many cultural divides.”

The next wave of wellness teas?

In a recent World Tea Conference + Expo white paper, Euromonitor International’s senior beverages consultant, Matthew Barry, based in Chicago, Illinois, pointed out that while not a cure, tea can serve as a valuable temporary oasis in a chaotic world. “An opportune area in the US market in the near future will be teas designed for relaxation and mindfulness,” said the senior beverages consultant. “While many beverage categories are eager to address this growing consumer need, tea starts with a considerable advantage. Tea – herbal tea in particular – is already strongly associated with calming effects. Chamomile, for example, has been used as a calming ingredient in tea since the time of the ancient Egyptians, so herbal tea could be said to have been active in the calming functional space for millennia. Consumers hardly need to know this history to be familiar with the idea that chamomile, mint, valerian or other herbs promote a sense of calm – and there is a new wave of teas targeting this space.”

Barry also noted, “Stress and anxiety levels continue to be at an all-time high. Tea can provide moments of quiet and calm amidst the turbulence. The American tea industry needs to prioritise products and blends that address mental health concerns. If done effectively, the mindfulness space will be the most dynamic in the US tea industry for years to come.”

• Aaron Kiel, based in Raleigh, North Carolina, has worked in the tea, coffee and beverage industries for nearly two decades, and he’s the editor of World Tea News. He’s a journalist and writer at heart, but he also wears a public relations “hat” through his PR consultancy, ak PR Group. He can be reached at akiel@akprgroup.com.

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The Covid-19 pandemic is taking a heavy toll on all of us. Our daily life has been upside down, routines shacked up and most of us noticed our spirit and moods affected. It is not surprising that in these challenging times, we cling to our daily treats and a cup of Joe has never been so important.

“In this ‘new normal’ period, one of the four key functionalities for coffee consumer is the search for mental wellbeing rather than immunity booster. The pandemic is a major additional burden on global mental health,” wrote Matthew Barry, senior beverages consultant with London-based global market intelligence firm, Euromonitor International, in a 2021 calming beverages report. “Calming as a functionality is surging in importance, as consumer stress levels have been rising significantly around the world. Yet the rates of caffeine consumption are rising, and consumers show little willingness to cut back, despite some negative health consequence related to caffeine.” To deal with this side effects, he said consumers will want to blend their caffeine with something calming whether in a single beverage or to be consumed later in the day when caffeine consumption is used to relax or promote good sleep. “R&D in calming beverages remain a critical area of innovation, with a focus on anxiety-relieving beverages.”

With the pandemic still surging, consumers are looking for ways to aid mental wellbeing as much as physical wellbeing. As such, the popularity of functional coffee continues to grow.

But the equation of coffee and mental health is far from simple. Dr Géraldine Coppin, a senior researcher and lecturer in affective psychology at the University of Geneva and at the Swiss Center for Affective Sciences, noted, “While a large body of research has reviewed the physiological effects of coffee consumption, only few studies have considered the potential relationships between coffee consumption, mood and emotion. Although the effect of coffee intake on mood and emotion is difficult to study, as coffee drinking is part of an ingrained daily ritual for many, there is convincing evidence that a moderate intake of coffee improves alertness and attention and is associated with increased feelings of pleasantness and reduced feelings of anxiety.”

She said that when studying the effects of coffee, researchers must be conscious of the fact that disrupting the daily routine, particularly at the start of the day, may affect mood and emotion, irrespective of coffee consumption’s physiological effects. Likewise, the expectation of consuming caffeine has been shown to affect mood and emotion, even if no caffeine has actually been drunk. “The mechanisms behind the observed effects are likely to include a role for caffeine but also for other compounds present in coffee, including polyphenols, although further research is required in this area,” said Dr Coppin.

Mushroom coffee has many added benefits but consumer awareness is low.

Another scientific advocate of coffee intake and reduced risk of depression is Dr Giuseppe Grosso, a research fellow at the Integrated Cancer Registry, Azienda Ospedaliera Universitaria Policlinico Vittorio Emanuele, Italy, and a senior collaborator at NNEdPro Global Centre for Nutrition and Health, St John’s Innovation Centre, Cambridge, England. In a 2016 report for ISIC (Institute for Scientific Information on Coffee) “Coffee, tea, caffeine and risk of depression: a systematic review and dose-response meta-analysis of observational studies” (Mol Nut Food Res, 60(1):223–2), he stated, “We have researched on the impact of coffee and caffeine consumption on the particular health condition depression. While current research of an association is limited, a systematic review of observational studies does suggest that the risk of developing depression decreases with moderate intake of coffee (equivalent to approximately three to five cups a day).”

Furthermore, the effect of coffee may be modulated by compounds in coffee other than caffeine. Dr Grosso explained that other mechanisms may also be associated with a reduced risk of depression. “Dopamine, for example, is a neurotransmitter that helps to control the brain’s reward and pleasure centers and also helps to regulate emotion.”

Exploring added functionalities

All very well but rather than mitigating or removing caffeine from their brew, today, consumers are looking at additional functionalities. What is proven scientifically is that one of the best-known active compounds of coffee is caffeine. A mild central nervous stimulant, this substance is associated with increased alertness. Following the European Food Safety Authority (EFSA), a cause-and-effect relationship has been established between a 75mg serving of caffeine and both increased attention and alertness. Several robust studies are in progress, as health allegations are very arduous to prove. Currently, there are several popular functional coffees on the market.

Bullet coffee is coffee with added MCT oil grass-fed butter or ghee. It has gained popularity through claims that it gives long-lasting energy, boosts concentration and keeps you satisfied longer. Because of the fats or oils in it, it is much higher in calories than a simple cup of coffee, which could increase the energy level. The combined ingredients take longer to digest in the body, giving then a feeling of being fuller for longer. At the present one finds limited supports for the claim that it provides long lasting energy, boosts concentration or appetite suppressant. More research is needed in this area. But fats such as coconut oil and butter are rich in saturated fatty acids, which the body converts into cholesterol. This is opposite to the dietary guidelines advising a move towards unsaturated fats.

Vitamin Coffee claims to naturally support sustained energy, muscle repair, bone health and better moods, among other benefits.

Mushroom coffee is a blend of ground coffee with powdered fungus. It claims to have half the amount of caffeine and double the effects of coffee. What is demonstrated is that mushrooms provide a range of nutrients including potassium and selenium. It is supposed to increase alertness and boost immunity and cardiovascular function. Some experts suggest it may be the caffeine in the coffee that gives the energy boosting effect, and not mushroom extract.

When compared with roasted, green coffee beans have limited aroma and flavour. However, experts suggest the unroasted beans can aid numerous health conditions, primarily due to the presence of chlorogenic acids. These might have a positive effect on glucose and lipid metabolism cardiovascular disease, type 2 diabetes, and metabolic syndrome. Found in both green and roasted coffee beans, the levels of antioxidants are higher in green coffee.

Natural functional ingredients

When looking at innovative ingredients and adaptogens, we are entering troubled waters. What exactly are adaptogens? A buzzword in the wellness world, they are popping up everywhere but still no industry formal definition on what they are. They can be classified as nontoxic herbal pharmaceuticals, which claim to help us better cope with (or increase our resistance to) mental or physical stress, improve physical and mental performance, and possibly support the immune system.

“These herbs and roots have been used for centuries in Chinese and Ayurvedic healing traditions, but they’re having a renaissance today. Each one claims to do something a little different, but overall adaptogens help your body handle stress. They’re meant to bring us back to the middle,” said Dr Brenda Powell, co-medical director of the Center for Integrative and Lifestyle Medicine at the Cleveland Clinic’s Wellness Institute, in a 2018 article by Jamie Ducharme in Time magazine, “What Are Adaptogens and Why Are People Taking Them?”

Turmeric, for example, is the latest super food – or super spice – that is being added to a variety of items, including coffee. It has been used in India for thousands of years as both a spice and medicinal herb. Science has started to back up traditional claims that turmeric contains compounds called curcuminoids that have medicinal properties. The most important curcuminoid is curcumin, which is the main active ingredient in turmeric. It has powerful anti-inflammatory effects and is a strong antioxidant. Turmeric has reportedly shown promise in treating a variety of ailments ranging from arthritis to psoriasis to Alzheimer’s and cancer.

Ashwagandha, also known as Indian ginseng and winter cherry, is an ancient medicinal herb claiming multiple health benefits as an anxiety and stress reliever, fighting depression, and boosting fertility and testosterone in men. It comes in a powder and one to two teaspoons can be added into a daily coffee.

Cardamom has also been used in Ayurvedic medicine for thousands of years. A spice commonly added to coffee (in the powder form) in the Middle East, cardamom gives coffee a spiced flavour similar to ginger (they’re in the same family) and is packed with nutrients. A two-tablespoon serving has just 36 calories, is loaded with fiber, essential minerals, and claims to be cancer-fighting.

Rhodiola is a herb that grows in the cold, mountainous regions of Europe and Asia. The functional ingredients come from its roots. It claims to stimulate cognitive functions in situations of stress, fatigue, anxiety, and depression.

Peet’s Coffee ‘golden lattes’ – espresso-blended beverages with turmeric – launched in 2021 in both hot and cold.

Holy basil is commonly known in the Hindi language as Tulsi. A quite revered medicinal herb, Holy basil is a plant that has violet flowers and blossoms. Medicinal preparations are made from the leaves, stems, and seeds of the plant. Holy basil is often used for cooking Thai dishes and its spicy flavour has influenced the common name “hot basil.” Some advocates say that adding it to coffee reduces any jitters often associated with caffeine and removes the edge from caffeine. With milk, it almost has sort of a chai-like vibe.

Elderberry is a fruit that grows in small clusters and is of deep purple colour. It is packed with antioxidants and many vitamins, which is partly why it is so popular and desired as a health supplement. It claims to aid in inflammation and depression, but immunity booster is its most common use.

L-theanine is an amino acid that occurs naturally in tea leaves and is used in Asian medicine to treat medical and mental health problems. L-theanine is supposed to increase brain levels of serotonin, GABA, and dopamine. Promising studies talk of beneficial effects on memory, learning, and cognitive function as well as for treatment of OCD, bipolar disorder, panic disorder, and schizophrenia. Pure green tea contains both caffeine and L-theanine, but L-theanine can be added in usual coffee as a supplement, according to “L-Theanine for Different Mental Health Problems,” by James Lake, MD (Integrative Mental Health Care in Psychology Today, August 2019).

Finally, in the United States in particular, CDB (cannabidiol) extracts in coffee are taking an increasing share of the supplement for functional coffee. “We’re seeing new and exciting trends in the CBD space, which we’re fortunate to be able to react to quickly. With a sharp focus on wellbeing seen around the world, an increasing number of people are looking for new and innovative products with ingredients they know and trust,” said Mark Elfenbein, chief revenue officer of Austin, Texas-based ingredient supplier, Socati, a wholly owned subsidiary of Yooma Wellness Inc.

With new formulations, Socati is already working with several leading consumer brands to create new and unique products which will soon be available to customers. “But, today in the spotlight for mental health benefit is CBG, or cannabigerol,” said Elfenbein. “This is a minor cannabinoid since its cannabis availability is typically at very low levels — usually less than one per cent. But it plays a significant part as a precursor to other cannabinoids, CBG has popularly earned the name ‘mother of cannabinoids’.”

Bulletproof pioneered ‘bullet coffee’ – coffee with MCT oil, grass-fed butter or ghee – claiming it boosts energy and concentration.

If CBG research is still in its early stages when it comes to mental health issues, there is already some medical support for the usage of CBG oil for certain mental disorders. For those who don’t seek any treatment, CBG could provide them with some anxiety relief. Effects might or might not be like the effects of prescription medications, but CBG has none of the addictive and dangerous side-effects commonly associated. CBG can help with heart conditions, high blood pressure, depression, and even suicidal thoughts. These health allegations still need more scientific evidence but the US CDB industry is expecting FDA to rule on the topic this year.

“The global pandemic has made consumers aware that wellness is a vital concern. In the coming years, consumers will be looking for more products and services that offer mental and emotional health benefits,” said Alex Beckett, global food and drink analyst with London-based global market intelligence firm, Mintel, adding that new formulations and emotionally appealing multi-sensory products will allow food and beverage brands to differentiate themselves in the competitive world of mental and emotional health products. “We anticipate that innovative food and beverage formulations will help consumers learn how food can impact their mental and emotional health, sparking new interest in psychologically-based approaches to healthy eating.”

• Dominique Huret has been a journalist in the beverage and packaging sectors since 2005. She writes in French, English and Dutch for several press groups. She is the co-founder of Cape Decision consultancy based in Brussels, Belgium. She can be reached at dominique@capedecision.com.

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The digital Tea & Coffee World Cup (TCWC – hashtag #TCWorldCup21 on social media) is a combination of lectures and skill-building classes, as well as a virtual exhibition hall. Our speakers (their full bios are available here) all have highly informative, engaging and enlightening presentations planned. Presenters include:

• Rona Tison, executive vice president of corporate relations at ITO EN’s North American operations. ITO EN is Japan’s leading green tea brand and the world’s leading purveyor of premium and sustainably grown green tea and healthy beverages. Tison’s presentation, entitled “The Evolution & Globalization of Japanese Green Tea,” discusses the surging global popularity of green tea and matcha.
• William “Bill” Murray, president and chief executive officer (CEO) of the National Coffee Association, U.S.A. (NCA). His presentation, “Coffee, The Original Superfood: Challenges and Opportunities Communicating the Coffee & Health Message,” examines the overwhelming scientific research evidencing coffee’s healthy attributes and the stigmas and misinformation that continually surround the beverage.
• Matthew Barry, senior consultant at global market intelligence firm, Euromonitor International, specializing in global beverage industry trends, with a particular focus on coffee, tea and alcoholic spirits. While the pandemic did not stifle consumers’ love of coffee and tea, it did change how and where the drinks were consumed — and purchased. His presentation, “The Lasting Effects of Covid-19 on Coffee and Tea,” analyzes the change in consumer consuming and purchasing behaviour and offer a post-pandemic outlook for the beloved beverages.

Of course, our popular skill-building classes also return to the digital TCWC. The coffee classes will be run by Coffee Consulate and CVUA Karlsruhe and the tea, by the UK Tea Academy.

Dr Steffen Schwarz is managing director of the Hamburg, Germany-based Coffee Consulate, which he founded in 2005 to meet the increasing demand for training. In addition to extensive workshop programs, the company is engaged in research and product development, and manufactures barista tools, teaching and analytical materials.

Dr Dirk W Lachenmeier is state-certified food chemist, toxicologist, and director of the official coffee control laboratory for the German State Baden-Württemberg. He joined the Chemical and Veterinary Investigation Agency Karlsruhe (CVUAKA), Germany in 2003, and has served as director of the department of plant-based food since 2012.

Dr Schwarz and Dr Lachenmeier are hosting two skills classes for TCWC. The first, “Myths about Cold Brew Coffee” explores why there are so many wrong ideas and beliefs on cold brew and how to create a good one. The second, “Innovative Coffee Products made from Coffee By-Products,” highlights how other parts of the coffee plant can change the life of the farmer and the consumer.

Carri Hecks is the head of brewing and a tutor for the UK Tea Academy, where she currently teaches a sensory and practice online course, and part of the tea sommelier course. For TCWC, Hecks is hosting, “Creative Cocktails and Marvellous Mocktails,” which shows participants how to create a variety of fun cocktails – and mocktails – all of which use tea as a base. A second skills class, “The Art of Brewing,” teaches proper brewing methods for a variety of teas (black, green, white, etc).

Additional presentations are being offered by Petra Overall, export manager, Oxalis and Amaia Cowan, Futamura.

We hope you will be able to join us today – 8 September – for Tea & Coffee World Cup’s launch, or over the course of the following month. It’s not too late to register so please visit: www.tcworldcup.com so you may have 24/7 access through 8 October.

• Vanessa L Facenda, editor, Tea & Coffee Trade Journal.
  Keep in touch via email: vanessa@bellpublishing.com
  Twitter: @TCTradeJournal or LinkedIn: Tea & Coffee Trade Journal.

The post Tea & Coffee World Cup kicks off today! appeared first on Tea & Coffee Trade Journal.

Our stellar speakers all have highly informative, engaging and enlightening presentations planned. The roster includes:

• Rona Tison is the executive vice president of corporate relations at ITO EN’s North American operations. ITO EN is Japan’s #1 green tea brand and the world’s leading purveyor of premium and sustainably grown green tea and healthy beverages. Tison also serves on the Board of the Tea Association of the USA and the Tea & Health Committee, the US-Japan Council and Advisory Board of the Global Tea Initiative at University of California, Davis, was the first woman to receive the John Harney Lifetime Achievement Award and is fluent in Japanese. Her presentation, entitled “The Evolution & Globalization of Japanese Green Tea,” will discuss the surging global popularity of green tea and matcha.
• William “Bill” Murray is president and chief executive officer (CEO) of the National Coffee Association, U.S.A. (NCA), a role he has held since June 2014. He leads NCA’s advocacy, regulatory, and member support activities on behalf of the hundreds of coffee-focused organisations that comprise NCA’s membership. Prior to joining the NCA, Bill was CEO of the Public Relations Society of America (PRSA). Previously, Bill worked in Hollywood for more than 20 years, including as executive vice president and co-chief operating officer at the Motion Picture Association of America (MPAA), which represented the multinational entertainment industry in more than 70 countries. Murray’s presentation, “Coffee, The Original Superfood: Challenges and Opportunities Communicating the Coffee & Health Message,” will examine the overwhelming scientific research evidencing coffee’s healthy attributes and the stigmas and misinformation that continually surround the beverage.
• Matthew Barry is a senior consultant at global market intelligence firm, Euromonitor International, where he specialises in global beverage industry trends, with a particular focus on coffee, tea and alcoholic spirits. While the pandemic did not stifle consumers’ love of coffee and tea, it did change how and where the drinks were consumed — and purchased. His presentation, “The Lasting Effects of Covid-19 on Coffee and Tea,” will analyse the change in consumer consuming and purchasing behaviour and offer a post-pandemic outlook for the beloved beverages.

Our popular skill-building classes also return to TCWC, digitally, of course, but still educational and entertaining. The coffee classes will be run by Coffee Consulate, and the tea, by the UK Tea Academy.

• Dr Steffen Schwarz is managing director of the Hamburg, Germany-based Coffee Consulate, which he founded in 2005 to meet the increasing demand for training. In addition to extensive workshop programs, the company is engaged in research and product development, and manufactures barista tools, teaching and analytical materials. Dr. Schwarz is the author of numerous scientific journals and regularly teaches as a guest lecturer of food management-related studies at the Cooperative State University in Heilbronn and at the University of Hohenheim.
• Dr Dirk W. Lachenmeier is state-certified food chemist, toxicologist, and director of the official coffee control laboratory for the German State Baden-Württemberg. He studied food chemistry and carried out his PhD research in Forensic Toxicology at the University of Bonn. Dr. Lachenmeier joined the Chemical and Veterinary Investigation Agency Karlsruhe (CVUAKA), Germany in 2003, and has served as director of the department of plant-based food since 2012. He regularly contributes to working groups of the monographs program of the World Health Organization’s International Agency for Research on Cancer (IARC), including the working group on coffee consumption.
• Dr Schwarz and Dr Lachenmeier will host two skills classes for TCWC. The first, “Myths about Cold Brew Coffee” will explore why there are so many wrong ideas and beliefs on cold brew and how to create a good one. The second, “Innovative Coffee Products made from Coffee By-Products,” will highlight how other parts of the coffee plant can change the life of the farmer and the consumer.
• Carri Hecks is the head of brewing and a tutor for the UK Tea Academy. She currently teaches a sensory and practice online course, and part of the tea sommelier course. Her interest in all things culinary has led to a keen knowledge of tea use in cooking and cocktails. She is also judge for the Guild of Fine Food’s ‘Great Taste Awards.’ For TCWC, Hecks is hosting, “Creative Cocktails and Marvellous Mocktails.” The class will show participants how to create a variety of fun cocktails – and mocktails – all of which use tea as a base. (I audited a similar class she held in July for the UKTA—it was a lot of fun and it made me thirsty!) A second skills class, “The Art of Brewing,” will teach proper brewing methods for a variety of teas (black, green, white, etc.)

We hope you will be able to join us on 8 September, or throughout the following month (ending 8 October) for Tea & Coffee World Cup. To register, or for more information, please visit: www.tcworldcup.com.

There is still time to exhibit or sponsor, so if interested, please contact Chris Seldon: chris@bellpublishing.com.

• Vanessa L Facenda, editor, Tea & Coffee Trade Journal.
  Keep in touch via email: vanessa@bellpublishing.com
  Twitter: @TCTradeJournal or LinkedIn: Tea & Coffee Trade Journal.

The post The digital Tea & Coffee World Cup is fast approaching appeared first on Tea & Coffee Trade Journal.

Our presenters are all highly acclaimed within their fields. The keynote speaker for coffee will be Thomas Linemayr, CEO of Tchibo Coffee. Headquartered in Hamburg, Germany, Tchibo is one of Europe’s leading coffee roasters and just entered the US market in 2020 — during the height of the Covid-19 pandemic. Rona Tyson, executive vice president, corporate relations & PR, ITO EN, will be the keynote speaker for tea. Tokyo-based ITO EN is Japan’s largest green tea and matcha supplier and is a global leader in ready-to-drink green tea and matcha beverages. Matthew Barry, senior beverages consultant at London-based global market intelligence firm, Euromonitor International, will offer an outlook for the global coffee and tea industries in the post-pandemic world.

Our popular skill-building classes also return to TCWC, but digitally, of course. The coffee classes will be run by Dr Steffen Schwarz and Dr Dirk Lachenmeier of the Karlsruhe, Germany-based, Coffee Consulate, while the tea classes will be run by the London-based UK Tea Academy.

We will share full presentation details including topics and session times at a later date on our TCWC website so stay tuned!

For more information or to register for the virtual Tea & Coffee World Cup, please visit: www.tcworldcup.com.

Booths and sponsorship opportunities for Tea & Coffee World Cup, are still available so please contact our events manager, Kyra O’Sheen (kyraosheen@bellpublishing.com) or our exhibitions manager, Chris Seldon (chris@bellpublishing.com) for more information.

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We are now excited to announce our list of presenters, all highly acclaimed within their fields. The keynote speaker for coffee will be Thomas Linemayr, CEO of Tchibo Coffee. Headquartered in Hamburg, Germany, Tchibo is one of Europe’s leading coffee roasters and just entered the US market in 2020 — during the height of the Covid-19 pandemic. Rona Tison, evp, corporate relations & PR, ITO EN, will be the keynote speaker for tea. ITO EN is Japan’s largest green tea and matcha supplier and is a global leader in ready-to-drink green tea and matcha beverages. Matthew Barry, senior beverages consultant at London-based global market intelligence firm, Euromonitor International, will offer an outlook for the global coffee and tea industries in the post-pandemic world.

Our popular skill-building classes also return to TCWC, but digitally, of course. The coffee classes will be run by Dr Dirk Lachenmeier of the Karlsruhe, Germany-based, Coffee Consulate, while the tea classes will be run by the London-based UK Tea Academy, overseen by Jane Pettigrew. We will share full presentation details including topics and session times at a later date so stay tuned! We will also post updates on the TCWC website.

For more information on the speakers, sessions or to register, exhibit or sponsor Tea & Coffee World Cup, please visit: www.tcworldcup.com or contact our events manager, Kyra O’Sheen (kyra@bellpublishing.com). For full sponsorship details, please contact Chris Seldon (chris@bellpublishing.com).

We hope you will be able to participate in our inaugural digital Tea & Coffee World Cup!

• Vanessa L Facenda, editor, Tea & Coffee Trade Journal.
  Keep in touch via email: vanessa@bellpublishing.com
  Twitter: @TCTradeJournal or LinkedIn: Tea & Coffee Trade Journal.

The post Tea & Coffee World Cup 2021: Announcing Presenters appeared first on Tea & Coffee Trade Journal.

Consumption held relatively steady (around 33 million liters) due to retail purchases, per Euromonitor. However, aside from the decrease in foodservice sales, ready-to-drink (RTD) coffee sales dropped slightly because of their tendency to be high impulse sales, which were hindered due to lockdowns during the pandemic. Currently, only bottled water outperforms RTD coffee.

According to Barry, coffee has strong retail prospects in 2021, particularly in RTD. He added that standard ground coffee sales had been declining but as more people started brewing at home, it became a growth category in 2020. Instant remains the only declining coffee category in the US market despite a slight spike in 2020 due to the Dalgona coffee fad (not a trend as it disappeared almost as quickly as it appeared).

Sales at chain coffee and tea shops fell 3.6% between 2019 and 2020 (many had the advantages of contactless, mobile ordering, even drive-thrus during lockdowns) while independent coffee and tea shops faired much worse with sales dropping 15% (most of which didn’t have the aforementioned benefits). “We don’t expect to see growth in independent coffee and tea shops until 2022,” said Barry.

He identified four key trends that will occur during the “new normal”:

Trend #1 — Slowing Down
Working remotely
Investment in the home (appliances, pets, etc.)
Lingering limitations on travel

Trend #2 — K-Shaped Economic Recovery
Some sectors exceed 2019 levels by early 2021; others may take years
Growing inequality, pressure on the middle price tier

Trend #3 — Digital Reliance
Massive acceleration of e-commerce adoption
Physical/digital lines get blurrier

Trend #4 — The Unwell Well
Interest in immune products falling
Mental wellbeing becomes a higher priority
A caffeine ceiling.

Regarding the “slowing down” trend, Barry pointed out that social distancing will last through at least most of 2021. More people are expected to continue working from home in the future – maybe not full time, but at least part of the time – which will affect on-premise coffee consumption. People will continue to spend more time at home because they invested in their homes during the lockdowns with home renovations, exercise equipment (like Peloton), pets, coffee machines (many consumers upgraded), etc.

In terms of the “k-shaped economic recovery,” Euromonitor expects the American economy will near recovery by Q4 2021. “The US is outperforming most of its comparable economies except Sweden,” said Barry, adding, “keep in mind that the recovery is not recovery for all people, it’s a fragmented recovery — a lot of people are still out of work or under-employed and will continue to be in 2021.

Amid this, there will be continued premiumization for consumers who were generally unaffected by the pandemic, although the foodservice channel will continue to be impacted. Barry explained that there will be economization for consumers who were affected by pandemic such as purchasing lower-priced or private-label brands, bulk sizes, etc. “There will be continued pressure on the middle tier, which will struggle in a polarized market.”

As the economy and markets recover, Barry said the foodservice/coffee shop sector recovery will splinter in two directions:

1-Efficiency oriented — fast, digital, personalized, contactless
2-Human oriented — slow, educational, sense of community

The reliance on digital (Trend #3) will continue as, once adopted it tends to stick around, said Barry, noting in particular, e-commerce adoption. “There is a huge and permanent shift to e-commerce.” [E-commerce sales of coffee, and tea, surged during lockdowns.]

Regarding the final trend, “the unwell well,” mental well-being appears to be replacing immunity as the key functionality of the future. “Americans are generally very stressed people, women and younger generations even more so,” shared Barry, noting that decaf sales are not doing as well in this environment as one would think. ‘Coffee mitigation,’ (functionality) not decaf will be key — there are lot of adaptogens out there that can be used in coffee. Products that add, rather than subtract, in order to create a less anxiety inducing coffee will be particularly popular, such as: cannabis, L theanine, cordyceps, rhodiola and Holy Basil (Tulsi). “This [mental well-being] is an exciting category as we move forward,” he said.

Summing up, the outlook for coffee in the US in 2021 is favourable for a variety of reasons, notably:

• Retail prospects will stay strong
• RTD coffee remains a growth category — expect cold brew to outgrow overall category
• Mental well-being is emerging as the hot functionality
• Habits that consumers picked up during pandemic will not go away (e.g., online shopping, brewing at home) — which is good for some sectors (coffee machine sales, retail coffee) and bad for others (foodservice/coffee shop channels, OCS, etc.)

Given these trends and outlooks, it will be quite intriguing to see how 2021 actually unfolds.

• Vanessa L Facenda, editor, Tea & Coffee Trade Journal.
  Keep in touch via email: vanessa@bellpublishing.com
  Twitter: @TCTradeJournal or LinkedIn: Tea & Coffee Trade Journal.

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In a webinar last week (see last week’s blog, Can Coffee Be Resilient Against Covid-19? for a recap), organised by the World Coffee Producers Forum (WCPF), Fernando Serpa, vice president, Global Sourcing Latin America & Fresh Food, Walmart Inc, said there have been “drastic changes in consumer behaviour” during the Covid-19 pandemic, which have disrupted the supply chain and he identified four key areas:

1. Channel shift
2. Category mix
3. Foodservice hit
4. Drop in purchasing power

Serpa said there has been a huge shift from brick ‘n mortar retail to online channel (for all categories, including coffee and tea), and whether online or in stores, consumers are buying more or larger sizes of consumable items because they want to minimize trips to store and because they are not purchasing these items out-of-home (consumption at work or on-the-road is now taking place at home). Takao Ueshima, executive director, Specialty Coffee Association of Japan, echoed that sentiment in terms of coffee, noting that in Japan, out-of-home (OOH) consumption fell 90%, but “sales of roasted ground coffee and whole beans in grocery stores, online, mail order/subscriptions grew 30-50%.”

A new report from the Specialty Coffee Association (SCA), The Specialty Coffee Industry During Covid-19, which was conducted in conjunction with Square Inc, outlines the current state of the specialty coffee industry, predominantly in the US, but Europe as well, finds that there has been a 109% increase in coffee subscription sales among coffee shops that have remained active during the pandemic as well as a 25% increase in the number of sellers offering subscription coffee services.

The SCA report also revealed that there has been a 5,380% increase in combined sales across curbside and/or pickup orders in coffee shops (many of which have expanded their assortments to include consumer packaged goods like toilet paper, paper towels, eggs, etc) as well as a 521% increase in coffee sellers offering curbside and/or pickup since shelter in place. Additionally, the report shows a 340% increase in delivery sales among coffee sellers and a 521% increase in coffee sellers offering delivery since shelter-in-place mandates began.

Serpa shared that e-commerce retailers were “overwhelmed almost overnight with the shift to online purchases (even Amazon and Walmart had problems, which led to delays in delivery).

With regard to the change in category mix, Serpa said that at the beginning of the pandemic, when the stay-at-home directives went into effect in countries, the shift in purchasing went from apparel (pre-Covid-19) to cleaning supplies to packaged food to fresh food. And when consumers started receiving stimulus money, there was an increase in purchase of electronics and products to help children learn at home.

Evidencing the shift in purchasing behaviour, the SCA report found that there has been an 11% increase in equipment sales (coffee makers, electric kettles, etc) at coffee shops/cafés.

Serpa noted that every business with gatherings of “more than five people” is hurting (such as foodservice, which has been decimated) and the supply chain has been damaged. For example, in last week’s webinar, Bill Murray, CEO of the NCA, said its members lost almost 90% of their foodservice business within three to four weeks following the stay-at-home directives.

In a previous NCA (National Coffee Association of the USA) webinar, “Covid-19 and the Outlook for US Coffee,” Matthew Barry, beverages consultant, Euromonitor International, said that “foodservice losses will be severe and last long term.” While he was referring to the US market, his comment is true for the global foodservice channel, and is not exclusive to coffee. He noted that the long-term impact is due to: lingering social distancing requirements, closure of establishments financially devastated by shutdown (many markets are already seeing this happening with independent and mom ‘n pop businesses), and substitution for inexpensive retail options. Barry added that “some, but not all, foodservice consumption moves to retail during social distancing.”

The fourth key shift in consumer behaviour that Serpa identified is a drop in purchasing power, which is due to the extreme rise in unemployment (which is temporary for some, but many have lost their jobs completely). “People are going to be very hesitant with purchasing/spending,” he said. Gone (temporarily or for the foreseeable future) could be the daily OOH coffee or tea purchases or more premium coffee and tea products from retailers for at-home consumption.

While the changes in category mix are constantly evolving, are the other shifts temporary or permanent? Will economies around the world improve and unemployment start to decrease? If so, purchasing power will increase. However, it is too early to predict. So as with everything else Covid-19 has impacted, we will have to wait and see how it all unfolds this year and moving forward.

Speaking specifically to the specialty coffee industry, but the sentiment can be applied to many small businesses, restaurants and cafés that are acclimating, adapting and evolving amid Covid-19, Peter Giuliano, the SCA’s chief research officer, in the SCA report said, “Specialty coffee businesses [many of which also sell tea beverages and other tea products] … are evolving in how they serve communities and generate revenue during this unprecedented time. Amazingly, three in four Square coffee sellers have continued operating during shelter-in-place orders, finding ways to adapt to new circumstances. This shows tremendous resilience and creativity, from curbside coffee pickup to grocery-style markets, home delivery to expanded e-commerce. These trends seem to represent more than a moment in time — they likely indicate a greater transformation of the specialty coffee industry, and a new way that coffee shops work within the communities they serve.”

• Vanessa L. Facenda, editor Tea & Coffee Trade Journal. She may be contacted via vanessa@bellpublishing.com.

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Wellness trends are causing consumers to be more mindful of their consumption habits. Drinking less alcohol is often associated with this, driving the rise of “Dry January” and “sober curious” lifestyles. While these are certainly ways to approach mindful drinking, consumers could also be responsible in other ways like using healthier mixers or alcohol fermented from organic grains.

It is into this mindful drinking space that alcohol takes on coffee and tea. There have, of course, always been alcoholic versions of hot beverages (consider, for example, the Hot Toddy or Irish Coffee). Alcoholic coffees and teas, though, are changing form as consumers start to reconsider their relationship to alcohol on a large scale.

Drinking Alcohol in a Healthier Way

In general, there is a long-term shift away from sugary carbonated beverages toward healthier options, above all water. In the United States especially, this has resulted in rapid growth in sparkling waters like LaCroix and its various competitors. Sales growth in sparkling waters laid the groundwork for the explosion of hard seltzer demand in American alcoholic beverages in the summer of 2019 (the so-called “White Claw Summer” in reference to the largest brand of seltzer). The wider consumer health and wellness trends that helped LaCroix also sparked the growth of cold brew coffees, herbal teas and kombuchas. Could these too find White Claw-like success in the alcoholic drinks space?

Different Facets of Mindful Drinking

There has certainly been a noticeable push into alcoholic drinks on the part of coffee and tea in recent years. In many cases, alcoholic drinks companies are looking to better position their portfolios to align with the mindful drinking trend as well as simply offer intriguing new products for consumers. Jameson’s, for example, recently tested an Irish Cold Brew in a ready-to-drink (RTD) format. Pabst Blue Ribbon also added both a hard coffee and a hard seltzer to its portfolio to adapt for this new era.

In other cases, tea and coffee are looking to break into alcoholic drinks, usually in a more explicitly health-focused way. Blurring the lines between tea and alcohol is the nascent “hard kombucha” segment, which offers an alcoholic drink experience with vitamins and probiotics, positioned as a generally more responsible choice when out drinking. Segment pioneer Kombrewcha emphasises balance in its marketing, highlighting how its products allow consumers to live healthier lives without giving up alcohol entirely.

A Union of Premiumisation

Adopting a mindful drinking approach is not the only reason alcohol players are pairing up with coffee and tea. Some are just using coffee and tea to create interesting new flavour combinations. Many craft breweries are experimenting with coffee flavourings in their beers, usually porters and stouts, but sometimes even IPAs.

As coffee goes premium, many in the industry are adopting terms from alcoholic drinks when discussing origins or flavour notes. Using coffees in premium cocktails certainly builds the image of certain coffees as premium beverages, like the partnership between La Colombe and Grey Goose to produce high-end espresso martinis.

Many new coffee and tea formats are closer to alcohol than ever before even when they have an ABV (alcohol by volume) of zero. Nitro coffee, for example, comes from a tap, has a creaminess similar to a stout and is often served in a beer glass. Learning from the alcoholic drinks industry does not necessarily have to mean making alcoholic products.

Image courtesy of NOBL/Andy Upton

Toward a More Mindful Future

The two sides of mindful drinking – drinking less and drinking better – are in many ways two sides of the same coin. Many consumers participating in Dry January end up drinking in a healthier way the other eleven months of the year as well, which is benefitting coffee and tea.

Many traditional alcoholic drink and mixer categories are vulnerable as cold coffee and tea options are exploding in availability and sophistication, providing plenty of opportunities.

Though replicating the hard seltzer craze is unlikely, products that appeal to consumers’ dual desire for indulgence and wellness can potentially take coffee and tea into new occasions in even the most mature of markets.

• Matthew Barry is senior beverages analyst at London-based Euromonitor International. He is based in the Chicago, Illinois office, and may be reached at: matthew.barry@euromonitor.com.

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The relationship between tea and wellness is far from a new discovery. However, consumers’ drive to adopt a healthier, more natural lifestyle has provided the opportunity for the wellness message to expand. The result has been an explosion of functional/wellness products with the focus on the benefits of the tea or tisanes, instead of the tea itself. But has this growth been good for the industry? Or has the fad brought with it its own host of challenges?

“Consumers are always asking, ‘What will this tea do for me?’” said David O’Connor, co-founder, Genuine Tea, Toronto, Ontario. “I think we have to remind them that the original drink, which has been around for over 5000 years, has been and always will be healthy.” The functional conversation, although driving demand, has resulted in a disconnect from the tea itself. The challenge being how can the market respond to the functional needs of consumers while also sharing the story of tea?

This begins by understanding how today’s consumers are drinking tea. In Western culture, there has been an overall decline in black tea consumption, in particular, CTC format, with a rise in herbal and green teas. “The health positioning for black tea is weaker than herbal or green,” shared Matthew Barry, senior beverage analyst, Euromonitor International at the World Tea Expo, this past June. “Today’s consumers are seeking additional benefits from the teas and are looking for their functionality.” This new market has resulted in several functional tea categories including calming, beauty, digestive, circulation, mental acuity, energizing, detox and weight loss.

The growth of tea bars is also helping to increase the momentum of these functional beverages. These venues are making tea easily accessible and desirable, with their signature iced teas, boba teas and trendy lattes, including matcha, turmeric and beetroot powder.

At the same time, the continued growth of tea and yogi culture has helped propel the wellness relationship forward. “Yoga has had a huge influence on what consumers are putting into their bodies, including introducing consumers to ayurvedic medicine and eastern herbs including chaga, tulsi and moringa,” said O’Connor. The benefit of this connection is that it also helps return consumers to the meditative benefits of tea, urging them to sip and savour their beverage.

But is today’s market becoming saturated with over promises, with tea being seen as a panacea for all ailments and stressors? And if so, can this trend persist in the industry?

“Tea alone will not and can not cure any disease,” explained Maria Uspenski, founder and CEO, The Tea Spot, Louisville, Colorado. “However, adding tea to your lifestyle that includes stress management strategies and sound nutrition can provide a strong preventative strategy.”

The Tea Spot was very cautious about its approach to functional teas and instead tried to shift the conversation towards tea quality. “If consumers are looking towards tea for their wellness, then they need to understand the importance of quality products,” said Uspenski. However, the Tea Spot quickly discovered that there was a segment of consumers who were turning to tea for its functional benefits. Today, The Tea Spot has a functional line of tea that highlights several attributes including sleep aid, wellness, and immunity boosters.

That being said, Uspenski urged that it is important that the industry maintains control of this conversation, including helping consumers identify which products are truly beneficial. This includes providing consumers with high quality, whole leaf options, instead of the highly sugared, artificially flavoured products that may contain little or no tea. “It is up to us as the manufacturers to deliver these high-quality products, and not participate in the green washing,” said Uspenski.

The Downside to the Wellness Story

There is no question that the wellness trend has its downfalls. Although it is helping create a new market of tea consumers, the functional messages are focused on health instead of the tea. Consumers are turning towards these products for what it does, not what it tastes like, which can make it challenging to maintain the momentum. This shifts the conversation away from the tea story and the quality of the tea itself.

“Tea is really trying to push the third wave, but it’s being hijacked by the health and wellness conversation,” said O’Connor. A self-professed tea purist, O’Connor has struggled with the wellness fad and the consumers focus on what the tea can do, including actively seeking whatever the new trendy ingredient is, instead of appreciating the tea itself.

At the same time, Genuine Tea is keenly aware that cafés need to be conscious of their margins, which involves having products available that satisfy the mass market. “The trick is finding the balance between propelling the third wave of tea forward and responding to the needs of the mass market,” said O’Connor. “There is no reason why we can’t provide a high-quality Assam for a breakfast tea or a ceremonial grade of matcha to the mass market.” This has included evolving Genuine Tea’s business from tea supplier to becoming a beverage partner for the restaurant and hospitality industry, providing both an education and tea preparation training.

Shifting to a More Holistic Approach

When it came to wellness, Toronto-based Bad Dad Tea Inc took a slightly different approach. “We knew that laughing is healthy for us,” shared director, Stephen Mandel, “and so we thought, let’s produce a product that not only tastes good but makes them smile.” Science backs up the wellness principle of smiling, including being a stress reliever and boosting immune systems.

The company wanted to create an experiential tea bag that brings forward the social aspect of tea including sparking conversations and the magic of smiling being contagious. “Our tea is an ice breaker,” said Mandel.” It’s something you pull out and can have a bit of a laugh about it.”

The name of the company was inspired by the concept of bad dad jokes with the desire to create a product experience that would generate a chuckle, or in some cases, a bit of groan. With humour being the heart of the venture, the company began with an extensive database of tea puns with plans to venture into other forms of humour in the future.

“The concept will allow us to create truly personalized products in the future,” said Mandel. “It could be tea puns focused on the holidays, playful puns, or companies that want to match the tea with their brand values: honestea, integretea, creativitea, etc.”

Mandel delivers a set of tea puns to their designers who then return with an innovative cartoon. “I particularly like mediocritea and antigravitea, which is an upside-down teacup floating over the saucer,” he said. “Although the one that always disappears at the show is naughtea.”

In fact, the demand for the tea caricatures has resulted in a separate venture of tea merchandise with the favourite designs being added to tea towels, aprons, t-shirts and mugs. “The idea is to make you laugh,” said Mandel. “We are never going to put a lot of serious puns on our tea.”

Evolving the Wellness Messages

Focusing on the functional benefits of tea is a great way to draw consumers into the tea conversation. However, the industry needs to approach these with caution. First, most studies indicate that the benefits are often strongest when consumers drink between three to five cups a day. Although this message could be extremely beneficial for the industry (helping increase consumption levels), for the new adopters it could create a barrier of entry. “I think a message that consumers need to hear is that even one cup of tea is a good thing,” said Uspenski.

At the same time, there is a myth that black tea is unhealthy. This misconception not only negatively impacts black tea sales but could also deter new to tea consumers away from the category altogether. “The fact is that all teas, black, green, oolong, and white, have benefits,” said Uspenski. “The tea that is healthiest for you is the one that you love the most, and therefore drink.”

Adopting this type of message shift will help evolve the practice away from drinking tea like medicine, and instead, return to enjoying sipping and slowly savouring a cup. “The industry needs to feel good about presenting tea as a wellness product, as long as we continue to do this with care,” said Uspenski. “We have an opportunity to shift consumers away from a sugared or fatty beverage, to one that can help positively nudge the wellness story forward.”

Although the wellness conversation continues to present opportunities for growth, it should be approached with caution. Trends can fade, particularly for those consumers who are solely drinking the beverage for its functional benefits. To help alleviate these challenges, the industry needs to continue to focus on the tea story including its quality, history and culture.

• Anne-Marie Hardie is a freelance writer, professor and speaker based in Barrie, Ontario. She may be reached at: annemariehardie1@gmail.com.

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