STiR coffee and tea magazine

30 STiR coffee and tea | 2025 Quarter 3 Autumn (Sep/Oct/Nov) G By Thomas Schmid ermany's tea industry — like many other sectors — finds itself at the in- tersection of growing consumer expectations, intricate global supply chains, and a regulatory environment that is increasingly difficult to navigate. Both domestic and European Union (EU) legislation now place substantial due diligence responsibilities on companies, often requiring a level of transparency that is daunting even for large organizations. Despite these challenges, many German tea companies are doing everything within their power to meet legal obligations while also advancing broader sustainability goals. Wollenhaupt Tee GmbH: A Legacy in Tea Founded in 1881, Wollenhaupt Tee GmbH has cultivated a reputation as one of Ger- many's most respected tea importers and wholesalers. Based in Reinbek, near Hamburg, the company processes approximately 5,500 metric tons of tea annually and maintains a balanced footprint between domestic (45%) and international (55%) markets. With a product range that spans both Camellia sinensis and herbal teas, Wollenhaupt has built a vast and intricate network of global suppliers — from smallholder hibiscus growers in Africa to centuries-old tea estates in China and India. "Our strength lies in the blend: Camellia sinensis, herbal, and fruit teas together form the core of our busi- ness," noted the firm's sustainability manager, Maike Ladehoff. But behind this polished legacy lies a complex operational reality. As with other players in Germany's tea sector, Wollenhaupt is grappling with the implications of increasingly stringent legal frameworks, notably Germany's Supply Chain Due Dili- gence Act (LkSG) and the European Union's Corporate Sustainability Due Diligence Directive (CSDDD). Germany's LkSG: Well-Intended, but Difficult Terrain The LkSG (short for Lieferkettensorgfaltsp- flichtengesetz) came into effect to address the mounting concern that companies must take responsibility for human rights and environmental conditions not only within their own walls but also across their global supply chains. In principle, the law applies to all Germany-based companies with at least 1,000 employees (down from 3,000 in its original itera- tion). It mandates the establishment of a risk management system, the assessment of supplier practices, the implementation of preventive actions, and the establish- ment of complaint mechanisms. Although Wollenhaupt does not meet the threshold of 1,000 employees, the company still feels the effects of the law. "The market is prioritizing many as- pects at once — emissions, water, human rights, living wages — which we all agree are important," said Ladehoff. "But we're also facing many obstacles outside our circle of influence." Tea companies, particularly those like Wollenhaupt that deal with hundreds of individual crop and raw material batches, face a unique hurdle: traceability. "One tea blend might contain five different black teas from three countries, plus or- ange peel and dried flowers, each from a different source," explained head of pro- curement Karsten Wiese. The result is a supply chain where verification of every single ingredient's origin and production standard becomes near Herculean. Supply Chain Challenges in Germany's Tea Sector Pickers at an organic tea garden in Mozambique returning with their harvest. Photo credit: Wollenhaupt GmbH The rise in health and wellness beverages has increased demand for herbal teas such as chamomile (pictured above). Photo credit: Wollenhaupt GmbH

• Cover