Category: Market

What is in a name? Positioning

Let me clarify something first, this post is not meant to judge any brand/product or to imply that they are not delivering what they say they are.

Positioning is how a brand tries to find a set of attributes to get a clear, attractive, different position on a market. It is also what you, I, anybody expects a brand to be or to do according to what they say they are (usually their core “philosophical” value that most of the time can be found on their website under “about us”) and what we think they are (as our perception of them might be slightly different of what the companies would like to sell us).

 I did a little non-scientific survey and took a look at different tea companies from different countries, supplying tea bags and/or loose leaf ones.

What did I find?

Words like finest, health, lifestyle, tastes, wonderful, quality, perfection, refinement, premium, tradition, simplicity, uniqueness, best seem to come back on a regular basis with a few others being

If you remember the whole idea of companies and marketing is to make one product or one brand looks different than the others to be able to sell it and one tool to visualise it is perceptual mapping (http://en.wikipedia.org/wiki/Perceptual_mapping)

Author : Mydogategodshat / This file is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported license

I decided to try to make a perceptual map with the words I had found while looking at the different websites and to my “surprise”; in nearly all the combinations I could make/find, there was no way to really separate the different companies (there were always a couple of companies that would not really be in the same place as the pack but they were really minor ones).

The only item in which there were clear differences is the tradition/simplicity (or modern) approach (and apart from a couple of them, I am not even sure how the companies really perceive these two words) and when looking at the countries of each company, it seems this simplicity/modern thing is more seen in the USA and other English speaking countries whereas the other countries are more adept of the “tradition” approach to tea (but there are exceptions in both groups).

Why this split? Perhaps some more in-depth research on both the key words and my conclusions should be made but I think that it comes from the clichés these different countries have on tea and the perceived need by those trying in the past years to launch tea companies in the USA that in order for the market to rise, there was a need to simplify things to make them more appealing to the “average” consumer, still full of “old ladies drinking their tea with some milk at 5 o’clock in the afternoon” and of people selling them that “the perfect tea must be brewed for 5.2 minutes at exactly 87.4°C and with a water coming from Greenland (the last trusted water resort).”

What are the risks of not being able to differentiate one company from another (in terms of who they pretend to be)? To be unable to deal with their commitment and to lose potential new customers unable to make the difference between this or that brand and the one that said the same thing but tasted “not so good.”

In the end, the customers will be the one judging the companies and their products and companies have to deliver what they promised to.

Perhaps is it time for companies to become more openly different one from another?

The grass is always greener on the other side of the fence

Sometimes, you have to go back to another place you know well to find “new” and interesting things that you had previously missed.

I once spoke of loose leaf tea sold in a supermarket (see here) but I saw during this week an interesting concept in a hypermarket (http://en.wikipedia.org/wiki/Hypermarket): a true and dedicated teashop.

Not really dedicated since you can buy roasted coffee, spice and other specific sweets.

However, you can also buy almost 50 loose leaf teas (flavoured and not flavoured ; green, white or black) from a brand I could identify after making some research on Internet as being Compagnie Coloniale (http://www.compagnie-coloniale.com/).

This would be interesting per se but when looking at more information on this concept, I found an old article (from 2009) with an interview of the owner of this store with some pictures.

He was not asked why he had decided to do this but he said he wanted to make life easier for his customers.

Let’s look at it from a broader perspective.

Clermont-Ferrand is not from my point of view a really huge tea town and this hypermarket (since they are franchises, I cannot and won’t generalise) seems to focus on good quality yet affordable food products.

I think this is the key to this surprising marketing move: trying to broaden their market with this offering of tea but in a specialised and somehow different settings.

It is here that some of you might kill me for looking at this but I must say that they are still offering the usual bagged tea boxes but also a lot of loose leaf boxes of “classical” brands (you know those in the supermarkets near you).

What does this mean?

That with more space and a focus on the customers, even big stores (that are supposed to be non personal and so on and so on) can decide to upgrade the quality of their products, to increase the space available for their sales and to offer a complete range of products, increasing their attraction power and therefore their potential sales and profitability.

Can all the big stores go that way? I guess it depends on their strategy and how they perceive their market.

Can it work? If the market is not saturated by high quality teashops and if there is a demand (even if it is a small one) for such goods, I would say yes.

Does it work in making you buy more? It didn’t for me but only because they hadn’t what I was looking for and also because I know where to buy my teas (even if I am always ready for new things as long as they appeal to me). However for people discovering tea or without an access to good stores, the concept seems quite good and for me everything that allows more people to get access to quality teas is something worth noticing.

 

Bowing to traditions

Tradition is something that binds people together.

Sometimes it makes sense when you look at it from an historical perspective but some other times, it amazes those that look at it.

 031 - Preparations

As far as tea is concerned, traditions are part of it since it began and nothing is more traditional then a tea ceremony.

What is a tea ceremony? For this post, I will define it as a sort of tea ritual, as an unique way of making and drinking tea over and over again until everybody in a certain area knows that the xxx tea ceremony is performed that way (the precise area depending on a lot of factors such as being the motherland of tea or of tea in Europe or a country full of traditions that sounds exotics to us or ..).

Everyone knows about the Chinese tea ceremonies, the Japanese one, the English one (aka “5 o’clock tea”) , the Indian one, the Moroccan one, the Russian one and I am sure I am forgetting a lot of them.

031 - 2 cups

What I want to show you here is a little less known tea ceremony (although several of us Teatraders have talked about it), the East Frisian one.

East Frisian? Yes, a small part of Germany (for the East part) and of the Netherlands (for the West part) that is famous in Germany for being the place where people drink tea and nothing else (I already spoke once about a trip to this area in a previous blog post).

I didn’t go back to this area yet although I am sure that one day I will as I have many things that I didn’t see yet (both tea related and unrelated) but I travelled to Bremen, another “tea town” in Germany (for me Bremen and Hamburg are the southern borders of “tea drinking” Germany) and although I find that they usually make black tea too strong (but I think I know why), I decided to make a short video about the “right” way to perform a East Frisian tea ceremony.

After reading a bit more about it, I did at least one thing wrong: I poured too much tea on my candy sugar since the cup should not be full but the candy sugar should be covered by tea.

But as goes the saying, practice makes perfection.

I am also lucky that I was the one pouring tea into my cup as I didn’t get into any trouble by forgetting to let my spoon in my cup (as long as you don’t do this, it means you want more tea).

 031 - 2 cups once more

Now regarding the strength of black tea that sometimes borders on the bitter side, my explanation is threefold.

First and foremost, Germans are black coffee drinkers and the stronger, the better.

A second but more factual explanation is that in East Frisian, tea is drunk with liquid cream and sugar to sweeten it, which makes it easier to drink. So why bother for the strength of your tea?

My last explanation is that in Germany, tea pots remain heated while they are on your table, which even if the leaves are no longer there, changes the taste of what you are drinking.

Norway in a tea shop

What a strange title isn’t it? It was inspired by Norway in a nutshell, a wonderful trip you can do near Bergen with trains, boat and bus and where you get to see a lot of wonderful things.

You are wondering if I lost my mind somewhere in the northern parts of Norway or what has all this to do with tea and/or economics.

Well, I can insure you that my mind is right where it should be and that you will learn everything I found out about tea and Norway.

First of all, Norway is a coffee drinker country, perhaps even more than Germany.

This is quite obvious as soon as you get in the streets of any town, big or small.

I knew it but I am not easily discouraged and so before going there, I asked people on Twitter if they knew anything.

I got no answer and I thought that perhaps this was a bad omen of a sort but since I had just received the Devotea’s tea samples, I was under no stress since I had my own stock (but nothing to make tea except my good old Thermos).

 

This was it until I went to the Norsk Folkemuseum (Norwegian folkloric museum) and found out in the Kolonial (a kind of grocery store of old if I understood it well) this.

Interesting, no?

This is why I looked once more over the Internet and in the streets and found out a couple of things: a place that claims to have “initiated the trend”, what looked like a tea house (but I always too early or too late) and a tea shop but that was undergoing works until the 14th of July (perhaps a good omen this time).

Not bad for a first look in a non tea drinking country.

One afternoon, I went to the Tea Lounge (http://www.tealounge.no/) and I had some troubles finding it since its address is Thorvald Meyersgate 33c and I had forgotten about this small letter at the end.

As one would have guessed from the name, it was a lounge open on the street with music being played (I expected any minute to hear Leonard Cohen being played).

The place was not full (far from it) but I was perhaps a bit too early (I left at 7PM and the place is open until 1 or 3AM).

The orders were to be made at the bar, which allowed me to look at the jars with the different herbal things in it and I saw they were made of glass.

The list was okay with around 13 unblended teas, around the same number of blended ones, a couple of tea and alcohol mixes (not really my cup of tea so to say) and other alcoholic and non-alcoholic beverages.

What was a bit strange in it was the way it was presented as it mixed origins and types in a strange way (for example a Nepal tea in the Sri Lanka – Ceylon section) and with double accounts (this happened a lot with the Chinese and green teas).

From what I saw, I was the only one drinking tea there but I decided to just “keep on my shoes, lean back and just enjoy the melody” (who knows what I am talking about?) and drank two of them, a Pai Mu Tan and a Golden Nepal TGFOP 2nd Flush.

The final result was teas that were too strong and bitter, not because of the steeping time but because they put too many tea in the cups.

Perhaps I was unlucky because the waitress behind the bar didn’t know how to prepare tea or perhaps this is something common in Norway (strong black coffee for everyone?).

As someone later told me, “it is a pub with tea in it” but if only for this strange association between both concept, it is worth a try and perhaps one later in the evening?

And the smoothies were quite good.

Next stop was Bergen.

This time, I really had no luck with tea shops and/or salons but I still managed to have some interesting tea oriented experiences.

While looking in the basket full of morning drinks given by the hostess, I found this and gave it a try. It was an honest green tea but unfortunately the leaves had not enough room in their container to give their full flavour.

I looked at the box and found out that they have 5 other flavours.

I went on the Internet and didn’t find them. If anyone knows or finds them out somewhere…

It is also in Bergen that I managed to experiment the Devotea’s samples under some extreme conditions for some as you will soon see (I must confess that the conditions to make them were not the best I ever had and I will have to taste them again).

The Duchess was taken in a perfect high tea environment. I steeped it with different times and strength and never found it to become too strong. I can only say it was a round tea with a hint of Assam in it.

I am probably the man or woman who has drunk Lord Pettersham in the biggest slope (see http://www.norwaynutshell.com/ and you will understand what I mean). I thought this tea would be a good companion for such an interesting trip. The verdict? An interesting blend with different tastes emerging as you drink it (including a hint of fruit, which puzzled me).

Two Tigers was perfect to hunt the Trolls in the “hills” near Bergen and I think it scared them as I didn’t see any during the hiking time. It was stronger than the two previous ones and in spite of drinking it several times, I couldn’t find a hint of the teas in it, the blend was perfect.

As you might see from the picture, Finbarr’s Revenge was drunk in an Irish-London atmosphere in a really foggy day in the hills. I found a slight malty after-taste in it but it was really enjoyable as a good breakfast tea (even if I drank it all day long).

The next tea stop was Ålesund, a few kilometres up in the North.

Strange place to find hints about tea, no? I found tea in three places : an advertisement for a company, a furniture shop (yes I know it is rather strange) and a chocolate/coffee/tea salon/shop.

The advertisement was in the local magazine and was a presentation in Norwegian of the company (don’t expect me to translate all of it as my Norwegian was never good at all and closer to non-existent but I understood a lot of what they wrote in this small article if not all of it) Eqology (http://www.eqology.com/) and two pages with their products (life-style and beauty ones), among them 6 small boxes of tea (green, cranberry, blueberry, livex, rooibos and tropical tea). I didn’t buy them or really looked at them but the packaging is kind of intriguing, it looks like a beauty product.

The furniture shop (in Ålesund store centre) had 5 different brands : Pukka (a tea bags one that I later found in Germany in a bio shop), Traktør (the shop brand but I don’t know who makes it, if you can buy it or only drink it in the shop), Kusmi, Løv Organic and  Solberg & Hansen (a coffee company that seems to make a couple of teas).

The chocolate/coffee/tea salon/shop (also in Ålesund store centre) named Chocolatte (http://www.chocolatte.no) is not that big but is quite cosy and they also sell ice creams (rather good ones from what I heard), pralines and  stuff like that. They are selling Jeeves & Jericho teas and some others without brand (from what I saw, they were the typical stuff).

The Jeeves & Jericho are stored in their nice looking little boxes or in the big plastic/metal bags with the transparent plastic stuff in the front to display the leaves inside it. The other unbranded teas are stored in glass jars (once more).
Since I could have any tea I wanted for the same price, I had two different ones from Jeeves & Jericho: the Dragon Well and the Girlie Grey. Once again, they were too strong (this time I had the tea eggs in the cups and I looked at them, they were more than full) with the Dragon Well being quite herbal and the Girlie Grey tasting and smelling more citrus than vanilla.
The staff was really friendly and did not hurry me to buy or drink anything and the cups were quite big (I was really impressed by how much tea they gave you at once).

Another important thing (but I saw it again in another place) is that tea cost less than coffee, which amazes me as in France, it costs more (my analysis always being that it had to do with the water needed to make it).

There was also on the other side of the street a tea/coffee salon but they were closed in July and said they work with the Chocolatte store.

 

This brings us back to Oslo where I went to Grensen 3, the address of the tea store I had seen, the Black Cat (http://www.black-cat.no), the oldest tea shop in Oslo (starting in 1905) where they sell tea and coffee (they wrote kaffe og tehus, which means coffee and tea house).

They have a lot of teas (they claim to have more than 200 but I wasn’t able to check that) sold under their own brand and that are stored in big metal jars, transparent in the front.

The saleswoman was really helpful, allowing me to smell and check different teas while asking what I preferred (spicy, “pure”, green,…) to better suits her selection of teas.

In spite of some translation problems with some terms, she answered the questions regarding the flavours of the different teas, if they were artificial, made with fruits/flowers…

We even talked a little about the tea scene in Oslo and she recommended the tea salon I had seen in my previous stay and where I wanted to go before leaving Norway.

Before leaving, I bought a Chinese Moon Palace (perhaps a Chun Mee tea, I have to look deeper into it).

 

The final place I visited during my trip is the Tehuset (http://www.norges-tehus.no/), located in Lille Grensen, Karl Johans gate 25.

On the door, you could see an article from Aftenposten (a Norwegian newspaper), ranking this place n°1 for ice tea in Oslo.

This shop had probably the most modern design of all the tea places I found in Norway but not too modern.

The waiter allowed me to take my time to decide what I would drink (or eat as you can also find pastries and sandwiches there) and answered questions about the tea he had there or the tea market in Oslo (according to him, his was the only true tea salon in Oslo but this is just his opinion).

Once again, I took two teas another Dragon Well and an Iron Goddess of Mercy. And once again, they were both too strong for my tastes (but more on this a little later).

I then went back inside and looked at the jars containing the teas trying to see what they had in this shop and how they had classified it. It was a rather simple and easy to read system with colours.

As for their origins, I saw Assam, Ceylon, blacks or green teas with some classical blends, a couple of white teas and some rooibos or infusions.

They seemed rather Chinese and green teas oriented with a lot of those being fair trade certified.

I had to leave in a kind of hurry because the ship had to leave and I still had to check in and since I had still about half my teas available, I put them into my Thermos and thought that I would taste this unorthodox mix later.

The final result was a tea that smelled more like a Dragon Well, looked like an Iron Goddess of Mercy and tasted first like a Dragon Well then like a mix of both and that left me with an after-taste of Iron Goddess of Mercy

This improvised Dragon Goddess of Mercy was another interesting experiment.

My kingdom for a horse! Or rather an island for a tea!

Obviously, Richard III had no clue about tea otherwise he would never had asked for a horse.

In my case, I asked for tea but since I am no king, I only offered an island, the island of Sylt.

For those of you that are not German or Danish, I know I need to explain a little some things and I hope that the Germans and Danish that read the next few lines will accept my apologies for stating obvious or known things.

However, in either cases I won’t bother you with a tourist guide to Sylt.

 

Sylt is a Frisian island north of Germany and only a couple of kilometres (if these are kilometres) away from Denmark.

Its size shrink every year but they seemed to have been able to stop the process by bringing in sand, which according to what I heard was a highly controversial move.

It is the German equivalent to Saint-Tropez (without the ships or I missed them) because a lot of wealthy and famous people have houses there.

My trip was not tea oriented but the guide spoke about several tea places (one to drink and 3-4 to buy good tea) and I managed to find them and much more.

See the pictures below for the much more (a huge buy and drink tea shop/salon) but don’t ask me anything about this place since I was there on a Saturday at 14h00 and exceptionally they had decided to close earlier.

The previous lines were just an appetizer for one of our fellow Teatreaders to one day go to Sylt and make us a full report.

As I said the trip was not tea oriented but I had high expectations.

Why?

Because in Germany, the Frisian Islands are known to be the place where people drink tea.

They even have their own tea ceremony, with cream and rock candies (for anyone going there, don’t forget to put the spoon in the cup but only after you drink the third one).

Since I am always eager to understand things that are non-logical at first sight, I asked people in a tea store why were the Frisian Islands so famous in Germany for their tea.

 The answer is that one day, a ship came to England with tea but it had to go through a storm and the tea ended all mixed up since everything was broken but the teas were still dry.

When the ship arrived, the English didn’t want it since it didn’t suit their peculiar drinking habits.

So here they were with a ship full of tea but no one eager to buy it.

This is when a “nice” Frisian merchant (I don’t know why but merchants are always nice fellows in these stories) who was there said that he would buy it and the ship was sent to the Frisian Islands. It seems that people there liked it so much, they rationalised the all thing (after all, you cannot make your favourite drink rely on the weather, such an unreliable thing) and perfected it to make the now famous (at least in Germany) Frisian Blend

A nice story, no?

However the truth might be a little different.

Frisian are not far from the Netherlands (Frisian is also a region in the Netherlands) and since they speak more or less a close language (at least at that time) and were good sailors, they were quite often recruited by the Dutch East India Company to sail on their ships.

Since every sailor was doing a little bit of trade for himself, it is no wonder that tea came to the Frisian Islands, probably first as a drug but helped by the Church it quickly grew in popularity and managed to become the number one drink before beer.

This upset Prussia, which had become the owner of East Frisian (as this part of the country is known) in 1744 and in 1778, they tried to ban it but failed and two years later, they had to lift the law.

You will ask why were they so upset?

To understand it, you have to remember that at that time, Frederick II was King of Prussia and trying to “modernise” Prussia, which for that time meant that the economical theory they applied was mercantilism (http://en.wikipedia.org/wiki/Mercantilism) or in other a bit too simplistic words “don’t let my gold go in the other countries and force them to bring their in mine .”

The Frisian love of tea meant a “huge” trade deficit with the Netherlands and good old gold coins going there instead of staying in Prussia.

This was not the last time that mainland Germany had to do something for the Frisian Islands and their love of tea as during World War II, they were allowed a bigger amount of tea per day than the rest of the country.

Is this more logical than the nice tale I told you a few lines above? Yes but since I could not find any peculiar reason behind the famous Frisian blend, I think both explanations go together rather well. Mine for the reason behind tea in the Frisian Islands and the other for the blend.

If you ever find a better explanation for it, just let me know and I might send you a pack of Frisian Mischung.

 

“Why is a raven like a writing desk?” or how to be surprised in a well-known shop

I guess that at this point in time, @peter is probably wondering what I am doing and why I needed to tease him.

To be honest, this reminds me a story about Hatta and Haiga when they were drinking tea together and wondering “Why is a raven like a writing desk?”

Right now, half of you are thinking I have given up trying to resist our mad side and the other half (the more gentle) will think I have been cut out of my tea supplies for too long.

Both half are wrong. For the first half, I just intent to show that out of crazy and erratic things, good things can come. And for the second half, just look below.

 My teas

Let’s get back on tracks.

10 days ago, I was at my parents’ place for a birthday (a round one but I won’t tell which one) and I was sent to do some shopping in a supermarket near their house.

I was near the fruits and vegetables when suddenly something seemed out of place…

 Vrac Auchan

Yes, this.

A “take it yourself” space full of coffee, spices and … teas.

You read it right, teas sold in bulk and that you can smell, see,…

I thought “Peter, where are you hiding? Do you work for a French company?”

I went there and looked at it, I even took several pictures and was asked by a member of the staff not to do so as it was forbidden.

Like the good boy that I am, I listened to her but I can still tell you what they were selling :

Fruits and flowers black tea (Chinese tea), Red fruits green tea (Chinese tea), Citrus and passion fruit green tea (Chinese tea), 2 Infusions, Red fruits black tea (Chinese tea), Tchai tea (Chinese tea), Sencha (Chinese tea), Earl Grey (Chinese tea), English Breakfast (Ceylon and Indian teas), Darjeeling (Indian teas), Ceylon BOP (Ceylon teas), Mint green tea (Chinese teas)

There were no other indications like gardens, provinces… but what I can tell you is that they were not expensive at all.

Since I wanted to show you something but couldn’t (I only have one word), I decided to send a message to their Customer Service requesting pictures and asking for more information.

They answered rather quickly and here is what they wrote (don’t worry, I translated it).

Auchan wants to sell more and more discount products while protecting the natural environment. To do so, we are always looking for new solutions.

This is why we are testing in this shop a compete range of food products of quality but sold in “bulk.” Some products are pleasure products. But quite often, they are those we don’t buy on a daily basis (too expensive, not needed).

Our idea behind this new range of products? To allow our customers to have them but to let them decide on the volume or the quantity).”

I don’t know if they will test it in another supermarket or diversify their suppliers but I will follow this test and see what happens.

I didn’t buy anything yet but next time, I will (I need to check the quality and support “good” ideas.

The other side of the coin, or double speak of the tea pseudo-worldy ?

This is not something I wrote but the translation in English (thanks to @jackie and @lahikmajoe for proof reading it) of a post made by Guillaume Leleu, the owner and founder of the French tea company Theodor (www.theodor.fr), on Monblogdethé (www.monblogdethe.fr).

The original post was in French and in it, Guillaume Leleu speaks about flavoured teas.

But I will let the stage to the maestro himself.

This is about tea. Tea? Yes, so much talk about what one claims to know. Success? Reputation? Respect? Dare I believe that all of this is only pure jealousy?

Why do I find it hard to believe that this is a subject where people speak frankly, objectively and without ulterior motives, or nasty intentions? Because if I were wrong, at least, we would open up a debate. Public or not, it would allow the exchange of ideas.

But this cannot happen, as long as the narrow-mindedness of some, the meanness of their comments, their lack of arguments are not publicly exposed.

To have the courage to voice their opinions, and to speak out against those of others, are acts of chivalry, something of another time, nothing more than a dream today.

So be it, but let’s use the same weapons of treachery and hypocrisy that our friends use. Let’s say things out loud without naming anyone, the evil of what is left unsaid.

I have rarely seen as many articles, posts, memos as I do today, lamenting all the wrongs of flavoured tea, how it infringes on on the “holy drink”, the only tea worth our attention; unflavoured and single origin tea. A term used by pseudo experts, not marketing driven at all, of course, not what were you thinking?

So, flavoured teas are just a way of “marketing teas of unbearable taste… that stink… without body .. of mediocre quality… with “cheap” flavours”… only worth “cooking with”… “… to make things easy and profitable for tea merchants.”… “pulling the wool over your eyes” … and one should never “stoop so low as to consume such improper drinks.” As to those “poor fools” who consume, purchase and enjoy them I shall not repeat the comments made – one more glorious than the other – about these likely uneducated, uncultured, and ill-mannered people.

These opinions would not be problematic if they were well, just simply opinions, points of views open to contradictory response, leaving room for doubt, or recognizing difference. Rather they are verdicts in a rigged trial where guilt is proclaimed before the proceedings even begin.

Instead the remarks reek of intolerance beyond what education and good breeding allow. They are abusive, petty, mean, proof of a total lack of courage, and audacity. It is my duty not to remain silent, and I must restore a little bit of respect to this much maligned flavoured tea.

Of course this problem isn’t new. Wanting to create a scale of values in this righteous world, to establish a noble lineage – more noble than others, to boast about privilege has always been the joy of the pseudo intellectual bourgeoisie. Better value yourself, rather than wait for others to do so, especially if you know how little you are worth. It is easier to pretend to be, than simply be.

So is flavoured tea a “second league” tea?

You will have understood that according to some: YES, or even a third or fourth league one.
In my humble opinion as small creator of such blends, but also as a mere consumer: NO and far from it.

Flavoured tea is one of the many facets of tea and always has been. It is one aspect, alongside the gardens, varieties, and methods that make up tea to the most noble degree. It is an integral part of the drink and merits the same recognition as a Dan Cong, a Darjeeling or an Oolong from Taiwan.

Lu Yu would turn in his grave if he knew of this stance that perpetually questions the value of flavoured tea. Because it goes against the whole philosophy behind tea. Tea is the drink of hospitality, of welcome, it is the drink of the poor and also the rich. It is the drink with more than a thousand and one faces.

Tea is the ambassador of tolerance, of respect, of cultural encounters and exchange.

There isn’t, and there never was a degree of nobility in a cup of tea. It is a drink, and the harmful Western way of assigning degrees of value to man should not be applied to tea.

Personally, I drink more pure tea than flavoured teas because I enjoy the widely variable characteristics of the former. Does this give me the right to judge or shun my neighbour? Does this give me authority to pretentiously dismiss those who do not share my tastes?

After all, this is nothing but a matter of taste, not of finesse, elegance, nor even the spirit of taste but one of egotistical self appreciation, of loving what one loves.

Flavoured tea, not only the teas I create are nothing but nature meeting nature, one plant “Camelia” mixed with other plants, be they fruits, flowers, spices. How is this less noble than a single origin tea? I don’t know.

Do these critics ever cook? Do they only eat their tomatoes plain, without vinegar, salt, pepper? Don’t they cook their meat or their fish? Do they eat everything raw?

Is creating a flavoured tea a diabolical act where you alter what is most noble? Does this make me guilty of sorcery? Am I committing the unforgivable in wanting to create a cookie flavored tea – to the point where comments, one more flattering than the next such as “”marketing tea… that stinks… without body…” are applied?

IF this is the case, I am lucky that I was not the first. Poor Chinese, Arabs, Indians and other devils who showed me the way! Oh no, I forgot, a Chinese flavoured tea is as noble as a tea flavoured in France yes, yes I assure you. Probably the lineage

When Hennessy requests my expertise to match its “fine de Cognac” with tea, to create a new drink, is that wrong?

But my God, Chanel dyes the cotton and the linen it uses to make its most beautiful dresses! Hermès mixes leather and zamak, that it uses as clasps for its handbags. I ask myself what is the world is coming to?

I had hoped that 2012 would allow us to focus on the most important values in life: sharing, respect, self-sacrifice. It is a waste and I am truly saddened when I see myself having to write this letter to respond to poor comments.

What reassures me, however, is that in our modern world, most tea consumers don’t listen to such rhetoric. They don’t impose their tastes on others by presenting them as the only way, thus claiming the monopoly on wisdom. . How many tea lovers have I known who discovered the flavour of Puer thanks to flavoured teas? And let’s dare ask, would we find pure tea today if flavoured tea wasn’t sold? I can assure you the answer is NO.

My morning tea is a Souchon, my daily tea is quite often an Oolong, or a wonderful Japanese green tea. I must confess that I like the multiple and complex notes of a plain tea… but those aside, I am always eager to taste the elegance, the surprise and the pleasure of the floral, spicy or greedy notes of a cup of flavoured tea. There is one thing that is true: I do not prepare it following the Gong Fu Cha and I suggest those who prepare a flavoured tea in such a manner, should refer back to their pseudo expert – as for their information – this ceremony is reserved for Wulongs.

To conclude, these are the same people who, with their double speak of flattery and hypocrisy, call the company I have the honour to have founded “the best company” for flavoured tea, “renowned for its blends.” This permits them to infer politely that at Theodor you’ll only find third rate teas.”

So, Ladies and Gentlemen, you the self-righteous of the tea world, worldly in another world, it is with pride and unconcealed joy I inform you that I serve my creations and blends to thousands of tea lovers every day.

Understand that our blends are highly respected and accompany the meals in the best restaurants of the world, as well as those in simple establishments. It is with dignity that I strive to maintain the glorious title you have bestowed upon us. And if you permit me to give you one last piece of advice – because unlike you the company I represent does not practice discrimination: You will also find some of the finest selections of teas that the world and nature offer us, through the gardens, the plantations and the people. It is up to you to find merit in this aspect of tea. However, in order to do so you will need to become a little more open-minded.

Long live the mixed, the melting pot, and diversity. Here’s to a long and peaceful life to pure tea, flavoured tea, smoked tea, and all the other wonderful plants, flowers, and fruit infusions that bring sensory pleasure and smiles into our cups and glasses every day.

Guillaume Leleu

Is bigger better?

If you ask this about blogging, the answer is obviously no.

You want an example? I have several files, articles and so on about Teavana IPO, finances and such (this is the nice part when a company goes public) but I have tried to analyse all of it in depth and I have been stuck in nowhere, unable to go anywhere but unwilling to let it go.

How does this connect to tea?

When I asked myself what I should do and found the question I asked myself at the beginning, the answer came to me: What is the growth strategy of Teavana? Where do they do make their money? Where do they make their profits?

I don’t know if I will be answer to answer all these questions but I will focus on them (this means I won’t cover everything but perhaps I might come back to it later).

Teavana is a rapidly growing specialty retailer of premium loose-leaf teas, authentic artisanal teawares and other tea-related merchandise.”

I will come back to the growing part later on, so let’s focus on the sales mix.

Here is Teavana’s sales mix over the last years.


2008 2009 2010
Tea 51,00% 54,00% 56,00%
Merchandise 44,00% 42,00% 40,00%
Beverage 5,00% 4,00% 4,00%

Tea is the biggest part of it but not by much (only between 1 and 6% more than the two other categories put together) but its importance is growing while Teavana is experimenting a rise in their sales (from 63, 86 millions $ in 2008 to 124,70 in 2010), so when you mix the two of them, you see that tea is really important for Teavana.


2008 2009 2010
Tea 32,57 48,74 69,83
Merchandise 28,10 37,91 49,88
Beverage 3,19 3,61 4,99

So important, that their tea sales were in 2 years multiplied by more than 2.

This is coherent with Teavana’s strategy as “A primary driver of our expected margin expansion will come from the continuation of our sales mix shift away from tea-related merchandise towards higher margin loose-leaf teas that our stores generally experience as they mature. In general, this trend is consistent with the evolution in our customers’ buying patterns as they graduate from purchases with a greater focus on merchandise with which to prepare and enjoy tea towards transactions centered more on replenishing their favorite teas and experimenting with new blends.”

To sum it up, they aim at opening more and more new stores but they also aim at bringing the consumers to the world of loose-leaf teas where their margins are higher.

Does it work or is their future growth the result of a growing number of stores?

Here is a first hint to see if it works.

The graphics provides us with a first analysis: the growth in the number of stores is obviously linked to the growth in revenues and also to the growth in profits (even if it takes time to get a return on investment, even if Teavana claims to do it rather quickly with a payback period of 1.5 year) but it is only one of their main components (I checked also using statistical formulas but I don’t want to bother you here with them).

So it seems that Teavana figures are in line with their strategy :

expand the number of stores,

  • increase the same-store sales,

  • expand the online presence.

 

Will this strategy work? Perhaps and since I don’t read the future in tea leaves, I won’t answer that question. However, what I know for sure is that perpetual growth is an unknown phenomena.

If we get back to Teavana, from all the weaknesses they have identified in their strategy, I think the most important one is the potential problems with the new stores (suitable locations, lease terms, cash to invest) and the personal (train and retain it).

Why?

Simply because quality is not enough, you need to have the right people able to create a specific relationship with the buyers, allowing them to come back and to “upgrade” their experience.

You also need to be visible, meaning being in the right place, which comes at a cost.

So is bigger better? Only up to a certain point.

What point? It all depends on how a company is able to evolve and make the best of its size but sometimes, it just becomes too big to fail, which usually leads to a failure.

But one thing I know is that for now, Teavana is not going the Starbucks way and comparing the two is like comparing broccolis and carrots, they are both vegetables but that’s all. Teavana and Starbucks are both beverage companies but that’s all.

 

Of competitive intelligence, letters and tea

We live really interesting times.

Thanks to the Internet I can chat with people from all over the world about tea or any other topic I might be interested in.

I can also find a lot of surprises while looking for other things (which is probably my favourite part of the Internet) and I can also have access to a whole set of data and figures on tea trade, tea consumption, tea whatever you might think of.

Now, you are probably wondering if I have lost my mind somewhere over the rainbow or if the Mad Hatter took it to make one of his special teas.

The answer is none of the above.

When I read a book on trade or spying in the old times, I am always amazed by how they informed themselves about prices, products, competitors…

The whole process might surprise a few people that think that we (those of the modern era) invented everything but let’s look more closely at a modern concept: competitive intelligence.

What is it?

According to Wikipedia, “a broad definition of competitive intelligence is the action of defining, gathering, analyzing, and distributing intelligence about products, customers, competitors and any aspect of the environment needed to support executives and managers in making strategic decisions for an organization.”

Now, let’s go for a few lines in the mind of one of the tea merchants from earlier and see if this definition would fit.

Let’s say you belong to a big company, perhaps the East India Company and you want to know if you can still sell tea, how, to whom and at what price (you know that you want to sell tea, don’t you?).

Surprise, you just defined your intelligence needs about your customers, competitions, needs that will allow you or more likely the board of directors to decide what is the best sales strategy for tea.

The next step is to decide who are the people able to answer your questions.

First, accountants to let you know how much it costs, where you make a profit, how much tea you sale each year and other mundane things.

But then, comes the tricky questions regarding competitors, foreign markets.

What do you do?

Today, you would probably look all over the Internet for raw data, chat with people for qualitative information, give a few phone calls, look at the press… But apart from the press, none of these tools were available during the time of the East India Company.

So the only option would be to take your most beautiful feather and write letters (or make others write them after all you are the boss here) to selected consuls and gentlemen to ask them to collect data on the local/national market (depending if there is a thing like a centralised state or if it is more a balkanised one).

You would probably ask the same questions to several people so as to be able to double or triple check their answers (you never know).

Now, gathering and analysis are likely to be done (it was not done as quickly or easily as I might make it sound but still) and this is when distribution of the collected and analysed data would be useful.

If you were in the Middle Ages, you would probably write it down in some obscure language but now in the 19th century, you are civilized, so you probably print it since His Majesty ordered the East India Company to do so.

And guess what? Years later, the Bayerische StaatsBibliothek made a copy of it and put it on the Internet, so enjoy the Papers relating to the trade with India and China including information and prices of tea, in foreign countries.

To help you to read through it, I gathered every tea related information I could find in this book and put it under Google Docs (file here)

Just to show you how serious these people (you know them, they are you) were with tea and competitive intelligence, I must tell you that each file has something like 18 tabs filled with data.

For one hour, I thought I was Johnny Depp

Hamburg is a charming and quite busy city in Northern Germany and according to many sources, one of the biggest tea ports in Europe.

I went there for the weekend and after reading carefully Lahikmajoe’s post, we decided with my friend to go to the Hotel 4 Seasons.

To be honest, I was a bit intimated as I didn’t have trendy clothes on me but only the casual ones I had in the night train and during my morning stay in the city but I thought that it really didn’t matter (I looked at their website while I was writing this post and I saw that the dress code was Smart Casual, which I wasn’t for sure) .

This Hotel is famous in Hamburg and really upper class.

We were early (around 13h30) and as we looked around, we were greeted by a butler that said we were a bit too early for the cakes but that we could have a tea and that the cakes would come in a little while.

They had a decent choice with around 12 different loose leaf teas and they had a really nice card with small samples of each tea and a description in German and English (for those unfortunate enough not to read properly German).

While waiting for the cakes, we looked around and saw that the whole place was really like one of these English gentlemen club where you don’t want to disturb anyone and with the paintings on the walls looking at you with their gloomy eyes.

We didn’t speak about business and politics but about poetry, literature and other topics.

This (after all, poets are known not to care about their clothes, they are artists) together with the “if I was Johnny Depp, my clothes would be trendy” attitude helped me get better in a few minutes about this whole setting and enjoy the place and the tea.

The following day, we went to Blankenese, a charming little town all built around stairs, with a lot of former houses from captains and fishing people (for the old part of town).

Apart from finding a lot of pharmacies there (one every 100m in the new part of town, perhaps the people there are ill all the time), we were also looking after the first name to appear on the Internet when you look for Teestube (a close translation of tea salon in German) in Hamburg.

We found it in the newest part of the town, some 200m from the train station and it was like a piece of England in Germany with some Queen Elisabeth II objects (some were really kitsch like a small statue of the Queen waving the right hand in her royal way) and other posters/maps.

I was surprised by the number of teas available and we decided to go for a Blankense mix (Ceylon and Assam) and a Black Vanilla tea.

Both of them were good and after some inner questions regarding if they were using loose leaf teas or not, we found some proof that they were, which delighted us.

I sent a mail to the owner asking some questions and she told me they had 42 different teas from a German company that has been in the tea business for 120 years.

Checking if this is true could be the reason behind a next trip to this place (apart from the good teas and huge cakes).

A really interesting tea trip mostly thanks to Lahikmajoe and Internet.

Next time, we might also try the Chinese House.