World Green Tea Conference Session 1 Consumption & Distribution of Green Tea in the USA Presentation by Joseph P. Simrany, President Tea Association of the USA November 2-4, 2007

2 Green Tea in the USA is becoming More Popular Most Popular Beverages in USA –Soft Drinks –Coffee –Bottled Water –Tea is #6

3 Long Term View of Green Tea Consumption in the USA 000 Lbs. YearAvg. Lbs.% Total% Inc/(Dec) , (34.6) , (35.8) ,4916.3(70.5) ,9272.8(46.7) ,5261.9(13.7) , , , ,

4 Green Tea Trends in Recent Years 000 Lbs. YearGreen% TotalTotal $%>/< , , , , , , , , , ,

5 Leading Importers of Green Tea to the United States December 06 Thousands of Pounds CountryQuantity% Total Green Tea % Change Last year China26, India 1, (5.1) Japan 1, Sri Lanka Taiwan Total40,

6 Green Tea “Teabits” Green Tea sales are booming in the USA, driven by: –Promise of Health Benefits –Expanded Distribution –New Blend Variations –New Forms including RTD –Growing Awareness of Specialty Tea

7 Green Tea “Teabits” Sales Revenue is up over 1500% over the last ten years from approximately $200,000 to well over $300,000,000 in The majority of Tea & Health Publicity is focused on Green Tea.

8 Green Tea Observations Green is experiencing a resurgence in popularity driven primarily by the promise of health benefits Initially, it was in limited distribution mostly confined to Asian communities Initially, it met with some consumer resistance as the taste was very different from Black Tea

9 Green Tea Observations Early resistance to the taste of Green Tea was overcome through education, relative to proper preparation and… Packers developed new blends of Green Tea mixed with various fruit flavors that appealed to the American palette.

10 Prospects for Continued Growth Green Tea sales show no sign of slowing down in recent months Prospects are excellent that sales will continue to be strong over the next several years.

11 Reasons for Continued Growth Growing awareness of health benefits Official sanctioning of health claims Aging population base Increasing availability via –Tea Salons –The Internet –Supermarkets