T2 — United Kingdom 2 By Dan Bolton STiR Tea & Coffee International Consuming Countries Panel

Tea Market Overview: United Kingdom 2 Younger generations responding to health benefits grew green tea sales by 50% since While 84% drink tea daily, sales of standard black teas declined 2% in The tea market is valued at $931 million (2014) RTD tea (Lipton) has largely escaped the “war on sugar” due to its health attributes. Sources: Euromonitor Tea in the United Kingdom. British Tea Council and Infusions Assoc. UK Department for Environment, Food and Rural Affairs Mintel International Teabags are favored by 96% of those drinking 165 million daily cups (98% add milk) but the volume of tea in bags declined 17.5% between 2012 (80m kilos) and 2014 (66m kilos). Private label is up 21% as traditional brands including Tetley and PG Tips slump. Per capita consumption is 25g per week, about three cups per day, down from 68g in 1974 and down 22% in the past five years. The British now drink 70 million cups of coffee daily. Yorkshire and Teapigs (Tata) that retail at 5x PG Tips are why specialty sales climbed 8%. Tea sales declined 8% from but value growth remains steady at 1% due to a shift in consumer preference to premium black and green tea and fruit blends. RTD Tea sales are rising.

This 66-store specialty tea chain, founded in Melbourne in 1996 was acquired by Unilever in 2013 for a reported $80 million. Service Selection Location T2 opened its 10 th UK location and 2 nd New York City store in There are 54 stores in Australia and NZ.

Teavana — North America 4

Tea Market Overview: North America 5 The US is now the world’s third largest tea importer, closing in on Pakistan. During the aggregate value of imported tea rose 17% to average $3,439 per ton. But the volume of tea imported into the US rose only 2% during the period. The Tea Association of USA reports sales of dry tea at $2.58 billion, growing at 4-5%. Foodservice sales were $19.8 billion in 2015 up 4.8% since The 2016 estimate is 5.1%. Per capita is 8.4 gallons (2013) down from peak of 9.3 gallons in Black tea accounts for 85% of tea consumed; green tea 14% with oolong, white and dark tea 1%. Sources: Packaged Facts Foodservice Tea Market in the U.S Tea Association of America. Seeking Alpha Pricing: Rooibos, chai and organic up. Green is down 5.8% along with matcha and oolong. Servings are estimated at 80 billion (220 million per day) with 158 million US tea drinkers. 97% of US restaurant menus now list tea: Green tea is named on 18.7%. Herbals 10.7% Hot tea is prepared at home by 54% of tea drinkers followed by iced tea at 51%. Single serve capsules account for 13% of dry tea sales. RTD tea generates $5.56 billion in sales. The US is the only western country to grow in tea imports and consumption. Nearly half of America’s tea drinkers ordered iced tea at a restaurant/cafe in the past 30 days and 21% ordered hot tea. RTD tea is consumed by 36% of all adults, much higher among 18-34s.

Teavana generated $1 billion in sales in 2015 largely from in-store purchases by loyal Starbucks customers thirsty for iced tea. Service Selection Location The company operates 370 locations including three in UAE with plans to expand into China in 2016.

1 Dan Bolton 1 Edits STiR Tea & Coffee International 2 Produces the weekly World Tea News Founded Tea Journey Magazine Dan has worked as an editor, publisher and newspaper reporter the past 40 years. He is the former editor and publisher of Tea Magazine and former editor-in-chief of Specialty Coffee Retailer in San Francisco. Dan is a leading retail beverage and content marketing consultant who speaks frequently at conferences around the globe. 3 Office: Mobile: Skype: dwjbolton Winnipeg, Canada