STiR coffee and tea magazine

STiR coffee and tea 21 CANADA DAVIDsTEA Restructures North America's largest tea chain declared bankruptcy and will close all but 18 of its 231 outlets, including 42 US locations. The Montreal-based retailer will concentrate on online sales with wholesale distribution in grocery stores, according to Frank Zitella, c.f.o. and c.o.o. "The Covid-19 retail environment creates significant challenges for our unique in-store customer experience," writes Zitella. During an earnings call, Zitella said DAVIDsTEA "ended the fiscal year with a solid financial position, and we have taken decisive action to align our operations with our growing online and wholesale channels. In adapting our business strategy to this new reality, we expect to emerge from this crisis as a leaner and more effective company, able to seize opportunity from a landscape ready for health and wellness tea." The business's wholesale side, supplying 1,500 Loblaw grocery stores and 1,000 other grocery locations, also increased in sales. "This could represent a turning point for DAVIDsTEA and accelerate the anticipated evolution substantially towards online sales to drive long-term profitability and connect with a bigger audience than ever," writes Zitella. INDIA Controversial Import Proposal As domestic prices surge, India is weighing the possibility of importing tea from Kenya and Vietnam. The govern- ment currently imposes a 100% tariff on tea imports, which discourages imports. If the initiative advances, The Federation of All India Tea Traders Association (FAITTA) said that importing teas will be a one-time affair and that it will not push for imports in the coming years, according to a report in the Economic Times. FAITTA wants a one-year relaxation of tea tariffs. FAITTA chairman Viren Shah said, "Prices have gone up significantly this year due to a shortage of supply. But we are not being able to pass on the price to our customers because the economic situation in the country is not conducive to increasing prices. The pandemic has created economic uncertainty every- where." The debate is heated. Tea landed in India to this point is for re-export, which is not available in domestic markets where it competes with locally grown tea. Re-exports total only 9-10 million kilos annually. Planters, represented by the India Tea Association (ITA), strongly oppose lowering tariffs even for a limited time. "We will move the commerce ministry with a request to stop the import of cheap teas if the traders try to do so," said Vivek Goenka, chairman, ITA. The price of CTC tea has increased by 48% year-on-year, making imports less expensive than domestic teas. Even with a 100% duty, imported Kenyan tea at $1.84 per kilo or Vietnamese tea at $1.50 per kilo would be less expensive than the average INRs305 ($4.07) per kilo paid for CTC at the Kolkata Tea Auction. SRI LANKA Tea Slows Virus Replication Government and private tea associations in Sri Lanka and India are promoting black tea to combat coronavirus. The Tea Research Institute of Sri Lanka (TRI) is exploring whether theaflavins reduce the rate of viral spread, according to the institute's website. In both countries, authorities seized on research that suggests black tea polyphenols derived during the oxida- tion of tea catechins could inhibit the coronavirus's ability to replicate. RNA (coronavirus) replication is a two-step mechanism that relies on the RdRP (RNA-dependent RNA poly- merase) protein to catalyze the RNA strand synthesis, researchers explain. Authors of a March article in the Journal of Medical Virology conclude that theaflavin could be a lead compound for developing a Sars-CoV-2 inhibitor that targets RdRp. However, the exact in vivo effect is still unclear, and further research is needed to confirm the mechanism whereby theaflavin target Sars-CoV-2. The broad spectrum of antiviral activity of compounds found in tea against several influenza viruses suggests that tea might be a promising source of antiviral compounds in the prevention and therapeutic aspects against viruses; however, information on the antiviral activity of back tea against SARS-CoV-2 is not yet clear. The fact that theaflavin has emerged as a promising candidate to inhibit RdRp activity in the SARS-CoV-2 "augers well in the search for a therapeu- tic agent against Covid-19 pandemic," according to the TRI website. As early as 1998, scientists demon- strated tea theaflavins completely neutralized bovine coronavirus and rotavirus infections. The United Planters Association of South India (UPASI) Tea Research Institute in Coonoor and the Indian Council of Medical Research (ICMR) are studying theaflavins' antiviral properties. Clinical studies in humans are essential before researchers prove the antiviral properties of tea among those suffering from Covid-19. UK Unilever Suppliers Await Fate The announced divestiture of tea holdings by the world's largest tea supplier makes uncertain the fate of the company's wholly-owned tea gardens and hundreds of smaller gardens under contract. Following a strategic review in January, London-based Unilever said it would break up its tea business, retaining only bottling partnerships while continu- ing operations in India and Indonesia. The rest of the company's tea assets, including several tea estates, will be sold at auction. Brands currently marketed by the company include Lipton, PG Tips, Brooke Bond, Pure Leaf, TAZO, Bushells, Lyons, T2 (retail shops), and 21 smaller brands sold in more than 150 countries. Lipton Yellow Label, the world's best-selling tea brand, accounts for 7% of black tea sales globally. Sales of green tea are insignificant when com- pared to Asia brands. The tea division is valued at $4-$5 billion, according to financial analysts at Barclays. Double your protection.

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