Issue link: https://read.dmtmag.com/i/612330
18 STiR tea & coffee industry international / Issue 6, 2015 (December/January) New entrepreneurs see an opportu- nity to increase sales by making tea more exciting. Many are taking their lead from Cafe Coffee Day, a $175 million chain backed by KKR & Co., that went public in October operates 1,555 shops and 32,071 coffee vending machines. Teas include Assam, Darjeeling, green tea, masala chai, masala chai latte, and a cold green apple tea-ni. Recognizing Star- buck's success in the US with coffee, a drink that was already popular in the country, Indian tea-house owners hope to be able to do the same with tea. By taking traditional street tea, brewing it with better quality tea, and giving it a stylish modern twist, chai could become a real money spinner. Niyin Saluja became aware of chai's potential about three years ago while living in the US and now owns Chaayos, a chain of 12 tea outlets in Delhi. The company plans to open more 50 stores by May 2016 in Mumbai and Bangalore. Other new chains include Tea Trails and Chaipatty. the unions; more sustainable energy use; and an improved environment in tea-growing areas. The agreed action plan for the next 18 months includes: developing clear costings for replanting and upgrading bushes to improve quality; improving communication between buyers and suppliers to improve understanding of quality, prices, and business practices; improving smallholder farming practices, yields, quality, income, and income diversification; supporting government's growth plans for the smallholder sector; agreeing a collective bargaining strategy; improving nutrition on tea estates; and eliminating harassment and discrimina- tion against women. SPAIN Happy 25th to The Tea Shop On November 5th, Per Sund- malm and his team at Tea Shop celebrated their 25th anniversary. In 1990, having found that most tea in Spain was sold in heath and herbal stores, Sundmalm bravely decided to open a tea store in Barcelona and his East West Company's shop was one of the first tea stores in Spain to sell exclusively tea and tea accessories. Sales were very slow until an article in a local newspaper alerted readers to the shop and started to turn things around. In 1993, a second shop opened in Barcelona and in 1995, the first Madrid branch was inaugurated. Since then, Sundmalm has opened between two and four shops a year and now has 50 shops in Spain, Italy, and Brazil, some owned by the East West Company, some as franchises opened in partner- ship with people who share Sundmalm's passion for tea. Sales of the 120 or so single origin, blended and flavored teas account for two thirds of the business, while tea accessories, sugars, jams, biscuits, etc. represent one third of total sales. Learn more: www.teashop.eu SRI LANKA Government Raises Tea Prices The tea industry in Sri Lanka has been going through difficult times recently MALAWI Malawi 2020 Tea Revitalization In Blantyre in September, the Tea Association of Malawi hosted an interna- tional meeting that gathered everyone interested in the future of the country's tea industry – buyers, producers, agents, traders, unions, politicians, NGOs, ethical organizations including the ETP (Ethical Tea Partnership) and develop- ment partners. Twenty organizations have signed the Malawi 2020 Revitalization Program Memorandum of Understanding and this commits them to working together to achieve a competitive and profitable Malawian tea industry where workers earn a living wage and smallholders earn a living income. Discussions covered some difficult issues such as: the tea supply chain and whether it treats Malawian producers fairly; improvement of tea quality; the smallholder sector; wages; greater opportunities for women; the role of with a decline in tea exports due to decreased demands from the Middle East, Iran, and Russia. Total tea exports dropped by 14% in July this year and the island exported tea worth $126.5 million to the US in July compared to $147.2 million in July 2014. And although factories have been receiving funds from government to subsidise payments to smallholder farmers at a minimum of 80 rupees (LKP) per kg, smallholders are often only being paid LKP 65-68. So, at the end of September, the government brought to an end the guaranteed LKP 80 per kg of fresh green leaf, and, at the beginning of October, Navin Dissanayake, minister of the plantation industry, explained that the government was proposing to buy tea worth LKP 300 million in order to artificially raise the price of tea and reduce the amount of money paid in subsidies. Five million rupees has been allocated to buy tea at rupees LKP 80 a kg. UK T2 Opens 2 More Shops Premises at 74 Promenade in Chelten- ham has become T2's eighth location in the UK and the ninth has just opened at 25 Tottenham Court Road, London. The next will be in Bond Street, Bath. As well as the new provincial branches, the Australian company already has four stores in central London, and three more on the outskirts of the capital. T2's international retail director Darren Williams said of the Cheltenham opening: "I think people will be really excited about what we have to offer." The shop will be split into three parts - a tea library featuring loose leaf teas of all kinds; a smell table which allows shoppers to explore; and a tasting bar where customers can try before buying. The decision to open in Cheltenham, Williams said, is because it's "a great shopping center. I think there's a great demographic mix for us and we really wanted to be on the Sri Lanka tea garden