It’s not hard to see that the restaurants of our choice are a little easier to get into these days. This bodes well when we want to dine out but can be a little scary if we’re selling into the Food Service Industry.The good news is that grocery stores seem to still fill to the brim and many websites are doing a brisk business is teas.

If you’re struggling within your tea business just now, take heart and take a moment to re-think your positioning, tea is faring very well in relation to many other beverages so let’s cheer up and get creative. Let’s take a quick look at where teas are being consumed and who’s buying them - and use this information to tap into some still growing markets out there.

Don’t take my word for gospel (never) but I do try to talk to as many people in the industry as I can every month and read as many professional periodicals as I can fit in - here are a few of the questions I ask when speaking with tea professionals - and the answers I receive most regularly:

With restaurant business off, who is buying teas?
Consumer demand at the grocer seems to remain high, there is still good velocity off the grocery shelves and thru many websites. Some gift channels remain strong.

Are grocers still buying teas?
Apparently they are, but they’re stocking less and often ordering smaller quantities at the last minute. Many grocers are hesitant to add a new brand just now.

Are consumers looking for less expensive tea brands at the grocery level?
It seems that the consumer is holding steady and same-brand-sales are on the same trend as they have been for the past 12 months.

How about on websites and in teahouses? Are high end teas still selling?
Apparently there is a move towards more mid-priced teas on some of the websites and in the teahouses. Quality and value are being sought after, with vigor.

How about teahouse business?
Much of the teahouse business follows the general restaurant trend, it’s a bit tough just now. Several teahouses I spoke with are focusing on their retail sales, website, special events and weekly specials. One has initiated ‘Evenings With Tea’ with a per person charge, card games are played, regulars are encouraged to bring friends, short tea education sessions are offered with loosely controlled tastings. “It’s reasonably priced entertainment”, says the owner. Food is served at an additional fare.

Several teahouses have begun in home ‘relax with teas’ sessions to sell their products, they promote their ‘in house’ events at these as well.

How about the major suppliers (tea wholesalers) into the specialty tea industry?                                               Tea sales are still strong and buying is cautious and well thought out. Good value seems key in sales.

So . . .  is any of this information newsworthy? Maybe, maybe not. What I hope you can glean  from these question and answer sessions is a bit of insight into how you might re-position your company and take advantage of this new economy.

Here’s what I’m personally betting on:
- creative companies that re-evaluate their business plans, seeking ways to re-focus their core business (if needed) and keep out there selling, marketing and pushing for growth will fare well as long as they offer good value.
- companies that focus on what ‘would have’ or ‘could have been’ will struggle and possibly perish, making room for the creative entrepreneurs to flourish.

Your key to survival may be your ability to stay positive and creative and offer good value for consumer dollars. Let’s all make a commitment to do just that, and couple it with a little extra work and an extra cup of tea every day. Let’s keep that cup filled in this changing economy, we can do it!

Richard

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