STiR coffee and tea magazine

16 STiR coffee and tea / Issue 4, 2021 (August / September) Dr. Monika Beutgen (Tea & Herbal Infusions Europe): Digitalization due to Covid-19 accelerates the implementation of modern agricultural technics in tea gardens and cultivation of herbal materials. This helps to ensure harvests and to further improve product quality. Doug Bishop (BUNN): Coffee consumption remained strong throughout the pandemic. Obviously, the location of purchase significantly changed for most of 2020, the amount of coffee consumed stayed relatively consistent to pre-pandemic levels. What will likely change is consumption. It won't be enough to just offer coffee. The demand for being unique, fast, and customizable will continue to grow and remain essential to the success of any coffee program. Peter Goggi (Tea Association of the USA): We saw a huge growth in tea sales through traditional grocery and director marketing channels, to the tune of 18–20% growth year on year. This is in a category that historically experiences swings of plus or minus 1-2% per year on average. A qualitative study that the Tea Association of the U.S.A., Inc. commissioned, highlighted that tea provided a way for consumers to de-stress, with 87% of respondents highlighting this effect. Tea was also seen as calming, centering, and relaxing by both millennials and gen x-ers. Additionally, a research paper was published in the middle of Covid-19 highlighting true tea's immune boosting power, providing yet another reason to drink tea. (Arakelyan, Hayk S., Tokyo Medical University Hospital; 06/06/2020; Title: Green Tea and Immunity). Even more exciting was that consumers stated that they fully intended to continue to drink tea at this higher rate once Covid-19 ended. STiR 10th Anniversary Executive Forum: Question #2 What lasting change(s) that developed during Covid-19 will there be to the industry in business operations, sales, consumption, etc.? Ralf Torenz (Neuhaus Neotec): Covid-19 [and travel restrictions] led to a strong digitalization in communication on both sides of the business partners. The technical prerequisites for online meetings were created to varying degrees in the companies before the pandemic. The mandatory need for this type of communica- tion has led to a similarly high standard of quality worldwide, and uniform software tools for web conferencing are now indispens- able in any meeting room. This allows business to continue successfully during the pandemic, although in a limited way. The future will show whether the personal conversation will return to the focus or whether digital exchanges will continue to dominate sales communication in the future. Mansoor Akarbally (Akbar Brothers): The increasing importance of B2C channels and online direct-to-consumer sales. Marcus Clausen (Dethlefsen & Balk): Brick-and-mortar stores were hit hardest if located in the shopping centers and inner cities while those located more within urban living areas experienced a surge in sales by the locals thanks to curb-side pick-up or personal delivery as well as being able to stay open as a food seller. Above all, a stronger web presence became vital for almost all and will remain to be an important point of sale as customers have gotten used to it during the pandemic. A delightful surprise is that more and more people have turned to high quality tea. Now, we need to make sure they will continue to be enthused, surprised, and comforted by tea in the future. Cindi Bigelow (Bigelow Tea): There has been an increase in consump- tion driven by an overall trend toward health and wellness. With the deluge of studies, and a desire to eat and live a healthier lifestyle, consumers have really come to appreciate tea as a healthy beverage, fueling your body with good-for-you ingredients while making your body stronger. This trend that is here to stay. Increased costs across the entire supply chain will be "new norm". This includes transportation, materials, and of course labor. There are pressures from price increases in almost every facet of the business, and this will continue. Despite our efforts to thwart and absorb those increases, some will – unfortunately be passed on to the consumer. Many larger companies overlooked this segment prior to the pandemic but will now surely be determined to capitalize on this growing opportunity. The focus on health and wellness is already emerging and likely to continue to grow. Tea companies can capitalize on this movement by focusing on functional and wellness inspired tea. With increased costs and uncertainty regarding international travel, brand owners will have to become more adept with virtual exhibitions/forums and look beyond the traditional (pre-pandemic) means of generating new sales leads. Q&A STiR 10 th Anniversary Executive Forum: Question #2

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