GrowthinSpecialtyTea-TheTeaAssociationofTheUSA.ppt

Fastest growing segment in the industry Ten fold increase in the number of tea rooms from 200 to 2400 over last decade Most coffee houses now offering specialty tea Tremendous profit potential attracting entrepreneurs and stimulating producing country interest * Specialty Tea Rapid expansion of tea outlets Emergence of 1 or 2 National operators Increased Producing Country involvement in marketing (Tata Tea Boards) Greater availability of Estate Teas * Traditional Tea is expected to realize annual growth in the 2-3% range RTD Tea will continue to experience robust growth in the range of 5-10% annually Foodservice Tea will experience annual growth in the low to middle single digits Long term, Specialty Tea will become the fastest growing segment with annual increases in the 10-20% range * Sales results from focusing on the health benefits of tea have exceeded our most optimistic expectations Consumers already believe tea is healthy and their perceptions are reinforced by scientific studies Long term trend in the USA is to eat and drink healthier foods beverages * Green Tea has moved from 3% of total imports 15 years ago to over 17% of total imports in 2010 This is an increase of over 500% The increase in popularity is almost entirely due to the association with health benefits * As more scientific information emerges regarding the health benefits of Black Tea, it is entirely possible that it too will surge in popularity * Target Key Consumer Segments Tea Drinking consumers, primarily women who get their news from traditional digital media Young female male students and professionals ages 22-35 who get their news primarily from internet sites, blogger and vlogger * Tea provides certain health benefits Great tasting, calorie free part of a healthy diet All types of Camellia sinensis tea have similar benefits Tea contains antioxidants (flavonoids) which are believed to be health-protective Tea contains theanine that could build the immune system Research support