DavidsTea, based in Montreal, is reaching across the border with expansion into several American cities.
Cross-border pollination
Acquisition and expansion are helping the U.S. and Canadian tea retail markets to merge and feed off each other. BY DAN BOLTON
Montreal-based DavidsTea into San Francisco, New York, Chicago and Boston, signal the unification of the North American retail tea market. The growth of large chain retailers is recent. Atlanta-based
T
he acquisition of Canada's second largest tea retailer by Atlanta-based Teavana in April, and the expansion of
based in Port Washington, N.Y., conducts a census of gourmet coffee and tea shops. The Spring 2012 ReCount was 30,002 shops, down 1 percent or 227 from March 31, 2011. Teahouses comprise about 12 percent of the total. Canadian importers and wholesalers send as much as
Teavana, the largest at 300 stores, was founded in 1997. Thirty- store Argo Tea opened in 2003. DavidsTea was founded in 2008. Tea retail in both countries is predominately a local
business, with 3,500 tearooms and dry specialty tea merchants in the U.S., a number that has grown by 500 in the past two years, according to the Tea Association of the USA. Away- from-home consumption has increased by at least 10 percent annually over the last decade, according to the Association. Twice annually The NPD Group, a market research firm
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60 percent of their tea to the United States, while American specialty tea companies such as Harney & Sons, Bigelow, Stash, Hain Celestial, Mighty Leaf, Good Earth and Yogi have long considered Canada their second most important market. Unilever (Lipton), Tata (Tetley), Nestle (Nestea) and Twinings are international suppliers with big stakes in North America. Lipton, AriZona Beverage, Snapple, Coca Cola (Honest Tea) and Sweet Leaf dominate the ready-to-drink segment. In foodservice Unilever, Coke, Starbucks, Luzianne, S&D, B.W. Cooper's and Royal Cup dominate.
