Specialty Coffee Retailer is a publication for owners, managers and employees of retail outlets that sell specialty coffee. Its scope includes best sales practices, supplies, business trends and anything else to assist the small coffee retailer.
Issue link: https://read.dmtmag.com/i/52159
Charles Cain to head operations. In late November, the company announced it will relocate the entire Tazo staff from its 80,000-square-foot manufacturing facility in Portland, Ore. Th e move to Kent, Wash. is to accommodate planned expansion and consolidate distribution to 25,000 retail outlets. • Atlanta-based Teavana, which has now opened 196 company-owned stores in 39 states, is a hot stock pick following the New York Stock Exchange's fi rst pure-play tea retail initial public off ering (IPO). Th ird quarter net sales increased 35 percent to $33.4 million from $24.7 million in the comparable fi scal period last year, and the company projects annual sales of more than $165 million. • Across the continent, Canadians turning on their favorite TV programs recently saw prominent Toronto-based coff ee chain Second Cup pitching tea. Th e 350-store specialty coff ee franchiser revamped its tea program, trained staff and introduced a new lineup that has invigorated the fi rm's beverage program, attracted new customers and boosted store sales while returning great margins. • In November, grocery giant Loblaw Companies Ltd. made room for specialty retailer Th e Tea Emporium instead of an in-store coff ee shop it its newest Toronto supermarket. Th e company calls the 85,000-square-foot complex its "crown jewel." Th e Tea Emporium is the fi rst tea store to have a dedicated footprint inside a grocery chain-store of this scale. TEA'S GROWTH SPURT Coff ee isn't cooling: Consumption among previous-day drinkers is steady, according to the National Coff ee Association. But volume has plateaued just as tea begins its rapid ascent. Foodservice and retail sales of coff ee topped $37.9 billion in 2011, up 10 percent over the previous year's sales of $34.5 billion and the highest annual growth of the past fi ve years, according to market research fi rm Packaged Facts. Th e coff ee market is fi ve times larger than tea and continues to grow, but it is the coff ee drinker's preference for more expensive premium coff ee—not volume—that drives annual sales increases. Specialty tea, on the other hand, is making inroads among young coff ee drinkers. It is equally popular with young men and women, and its popularity with boomers and Millennials alike makes tea 5.4 percent of the refreshment beverage market. It is growing at a much faster pace than specialty coff ee. Tea sales topped $6.5 billion in 2011 according to Market Research fi rm Packaged Facts. U.S. tea imports rose 25 percent in the past 10 years and were up 4.7 percent to a record high in 2010. Th at was the fi rst time in history U.S. tea imports surpassed the United Kingdom. Th e U.S. now represents 9 percent of the global market, and import totals through June as reported by the International Tea Committee indicate 2011 will break the import record again. In Canada, the dollar share of specialty tea has grown to 57.2 percent of the total market and was up 7 percent in 2010. Conventional teas lost 2 percent market share last year. January 2012 Janu Janua nuary 201 20 uary 201 012 • ww sp c alty-c speciallty- www.swww.specialty-cof ee.com ww.sp cialtyc y-co ee com -cofffffee.com | 1 om | 21