Celebrating Tea in the United States of America

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Celebrating Tea in the United States of America

• Joseph P. Simrany, President
• Tea Association of the US
• International Gathering
• World Tea Expo
• June 7-8, 2007

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Introductory Comments

• Title of this Presentation
• A Country of Independent Thinkers Independent
  Drinkers
• Tea is getting new respect in the United States
• Future Prospects for Growth provide Ample Reason
  for Celebration

3
The Time for Tea is Now!

• Teas appeal is immense
• The appeal of tea in USA is diverse
• Tea consumers in the USA are not traditional

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Tea Imports into the USA (Kilos)
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Tea Imports into the USA in 2006

• The USA imported 240 million pounds of tea or 108
  million Kg.
• 83 of which was Black with most of the remainder
  Green Tea
• Total tea imports were up over 7.5 over the full
  year 2005

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Size of the Tea Market in U.S.

• 1990 Value by Type
• Trad. 0.87 Billion
• RTD 0.20
• Fd Srv 0.50
• Special 0.27
• Total 1.84 Billion
• Green 20 Million

• 2006 Value by Type
• Trad. 1.90
• RTD 2.65
• Fd Srv 1.0
• Special .95
• Total 6.50 Billion

• Green 200 Million

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Consumer Issues Driving Trends

• Growing number of scientific studies suggesting
  tea plays a role in the inhibition of many
  chronic diseases
• Widespread acceptance by the scientific and
  medical communities that tea is a healthy
  beverage
• Widespread awareness by the media
• Tea enjoys positive imagery regarding its
  contributions to health versus alternative
  beverages

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Tea Health Strategy

• Sales results from focusing on the health
  benefits of tea 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

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Calm-A-Sutra Contest

• Insert Video

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Green Tea Sales Prove Health Strategy is Working

• Green Tea has moved from 3 of total imports 15
  years ago to over 17 of total imports in 2006
• This is an increase of over 500
• The increase in popularity is almost entirely due
  to the association with health benefits

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Black Tea Will Benefit Next

• As more scientific information emerges regarding
  the health benefits of Black Tea, it is entirely
  possible that it too will surge in popularity

12
Future Health Plans

• The Tea Council of the USA remains committed to
  the health message
• Another Scientific Symposium is planned for
  September 18, 2007 in Washington DC
• The Tea Council of the USA is grateful to its
  Producing Country members (India, Kenya, Malawi,
  Sri Lanka) whose generous contributions make
  these kinds of events possible

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Other Consumer Trends Driving the Popularity of
Tea in the USA

• A desire for more convenience
• Ease of preparation
• Ready availability

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Third Major Trend Driving the Increased
Popularity of Tea

• Growing appeal of Specialty Tea
• This is the most profitable segment of the Tea
  Industry

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Forth Trend Responsible for the Popularity of Tea
in the USA

• Promise of high profitability is drawing
  thousands of entrepreneurs to sell various forms
  of tea
• The number of tea rooms has grown from 200 to
  2200 over the last 10 years in America
• Thousands of Coffee Houses have added Specialty
  Tea

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USA Market is Exciting

• Market is Vibrant one of the few in the world
  where tea sales are growing
• The market forces in place are strong and long
  term
• The health message will drive increased
  consumption for many years to come

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Tea is Finding its Way into Many Other Products

• Cosmetics
• Medicines
• Blends with Juice
• Food Preparation
• Pet Foods
• Candies gums
• Toothpaste
• Alcoholic Beverages

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Strategies for Success

• Adopt A Universal Code of Conduct
• Support the Global Initiative on Pesticides
• Join cooperative consuming country promotional
  efforts
• Share your Knowledge through Seminars and Tea
  Classes
• Contribute to Scientific Symposia

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Strategies for Success

• Talk to your customers
• Understand their needs and modify your business
  to satisfy those needs
• Exhibit at International Trade Shows especially
  the World Tea Expo in the United States
• Engage in cooperative promotional programs