Thursday May 14, 2009 | 6 comments
Fresh from the 2009 World Tea Expo, I’m pleased to announce that the steady march towards higher quality teas continues in spite of the economic times.
In a presentation to roughly 100 prospective tea entrepreneurs, I posited that the greatest obstacle to the growth of the specialty tea industry is consumer uncertainty caused by bad tea, inconsistent pricing, incorrect information, outlandish claims, and unscrupulous or uneducated tea vendors. Step into any grocery store with a solid selection of premium teas or spend a while on the Internet and you’ll see a range of claims and price points for seemingly similar products that would confuse all but the savviest of consumers. The simple truth is that there is little relation today between the retail price of tea and its quality. Too many vendors are only selling marketing…and too many customers are buying it.
I took the opportunity to encourage the audience of aspiring tea people to seek out quality tea and use it as a point of differentiation and customer retention. As a large wholesaler, we often hear tea shop owners claim that their customers either A) wouldn’t recognize higher-quality tea or B) aren’t willing to pay for it. My question for them is “How do you know?”. I doubt many customers are responding to poor-quality tea by calling the shop and complaining. Most simply never return.
At the end of the day, I firmly believe that the first battle in the U.S. tea war was won convincingly by companies with superior marketing savvy. Leaders like Republic of Tea created clear brand identities and capitalized on the romance and trendiness of loose-leaf tea. As obvious as the importance of marketing has been over the last five years, I am convinced that the quality revolution is well under way. Case in point: while the price of a package of Republic of Tea has not changed considerably in five years, the quality has improved!
This is a good sign for all of us who either love tea or make a living from tea or both. Consistent access to high-quality tea will lead to increased consumer confidence and interest in premium tea. One notable side-effect of this trend is the impact it will have on the environmental and social sustainability of the tea industry. First, premium loose teas are typically cultivated with fewer and more environmentally friendly pesticides and fertilizers. Second, the growers, pickers, and tea masters who produce these teas are paid significant premiums over the unskilled workers producing machine picked and processed teas for the mass market. Third, loose teas require a fraction of the packaging materials required to bag, individually wrap, and package bagged teas.
This final advantage of reduced packaging has the side-effect of allowing the consumer to purchase a significantly higher-quality tea, protect the environment, and increase the standard of living in the producing countries, while paying only a tiny premium over the mass-market, grocery-store-quality teas!! The per-cup price of one of my company’s mainstream loose teas, like English Breakfast, Sencha, or Mint, is not much more than that of a much lesser bagged tea at your local grocery store.
So for those of you who make a living selling tea – take shortcuts on quality at your own risk. There are plenty of companies waiting in the wings to welcome your customers. For those of you who are tea lovers – make sure to spread the word when you find a vendor you can trust, and don’t hesitate to communicate your displeasure when you have a bad experience. Give those tea shop owners a chance to wake up to the quality trend before it leaves them behind.
Happy Drinking!
Images: Main: jamesdale10 :: First: mikebaird :: Second: republic of tea

Fantastic post Charles! You hit all the biggest issues such as: trust, value, sustainability, accountability and education. Kudos!
Charles, when you consider the opportunity to re- steep premium whole leaf tea, the price is even less than cheap bagged tea.
I agree with what you’ve said. Quality is king. I think that inexpensive, low quality bagged tea is responsible for turning people off to tea. I’ve heard too many people complain about the taste of green tea. I know they didn’t have good quality tea or failed to brew it correctly to come to that conclusion. It’s the response where they scrunch up their nose and look very pained with it “it tastes horrible” reply……….NOT.
So happy when quality is defended! We have sold so much beautiful high quality loose leaf the last 10 months in the new store. It is so rewarding, especially living in one of the most hard-hit areas in the country during these economic times. People ARE willing to pay for quality, even when it might hurt a little. I’ll tell a personal story: A very regular customer who buys alot of loose leaf from us came in and offered that a friend of hers, who also offers ‘loose leaf’ in their coffeehouse, offered to give her their tea for free (apparently to keep her as a coffee customer) if she would not buy from us. Amazingly, she refused NOT to buy from us and does..bags and bags. As does her husband and her sister.
I just hope those of us who are passionately and absolutely committed to quality product can hang in through this challenging time to continue to bring this wonderful beverage to the average person. Yes, it is close in price to supermarket tea, and so much different. I’m amazed when reading the tea review blogs that companies are sending off samples to be
reviewed that rate 5 or 6. Why send them out? Why need 100-200-300-400 teas if they are
mediocre? Let’s all keep the quality high: Growers, blenders, wholesalers, retailers!! There’s just too much mediocre out there and we won’t buy it or sell it!
Thanks to the quality lovers in our industry, from top to bottom!! From first stage to end stage!
“bags and bags” meaning that we pack our loose leaf in sealed foil pouches for customers. We do NOT sell teabags!! :)
Great post Charles! Your sentence
“This final advantage of reduced packaging has the side-effect of allowing the consumer to purchase a significantly higher-quality tea, protect the environment, and increase the standard of living in the producing countries, while paying only a tiny premium over the mass-market, grocery-store-quality teas!”
is most important and something tea vendors should strive for.
Thank you Charles for this reminder of the importance of quality and trust. T Ching might not sell 100s of teas like some large vendors, but the ones we do sell are of the highest quality, and most are organically grown. We pick only those teas that have the highest taste profiles and are grown with loving care.