CERRITOS, Calif.
QTrade Teas and Herbs, the largest supplier of organic teas in North America, cut the ribbon last week on a new 70,000 sq. ft. state-of-the-art tea production facility near Los Angeles.
The grand opening was attended by local and federal dignitaries and an enthusiastic crowd that strolled past three million pounds of inventory and jet-engine sized machinery capable of blending 25,000 pounds of tea a day.
Company president Manjiv Jayakumar welcomed city representatives, family members, and 100 guests to the ribbon-cutting. Manjiv, with the help of his father Manik Jayakumar, the company’s founder and CEO, on Monday cut the bright red ribbon stretched the across the steps and officially opened the building for business.
Cerritos Mayor Jim Edwards presented the company with certificates of commendation and plaques recognizing the company’s new place in the community. Congresswoman Linda Sanchez sampled tea and toured the plant, meeting the production team.
QTrade has expanded rapidly, seeing 40-50% growth over the last several years. “We are honored to have been so warmly welcomed by the community,” said Manjiv, “This new facility will provide us the necessary infrastructure to continue making tea available to a wider client base than ever before. We are excited to see what the future holds.”
The company’s growth parallels that of the tea industry which has experienced a sales and volume incline accelerating as big name brands like Starbucks, Coca-Cola, and McDonald's invest heavily in tea-beverages. The move comes at an opportune time for importer QTrade, an award-winning blender with decades of experience.
Domestic tea blending, generally located near the gardens overseas, is valued at $1 billion, according to Los Angeles-based industry research firm IBISWorld.
In May the company released its latest “Tea Production Industry” report which estimates annual growth greater than 3 percent for the 39 manufacturers included in the study. The report excludes ready-to-drink and iced tea manufacturing. Manufacturers surveyed include Hain Celestial, Bigelow, Yogi and Unilever (Lipton). Employment was estimated at 1,472.
“The Tea Production industry is beginning to come into its own,” according to IBISWorld. Revenue from blending and packaging of dry tea will increase at an annualized rate of 3.1 percent to total $987 million in the five years to 2012. “Revenue is expected to grow at a slower rate of 1.8 percent in 2012. Helping to drive the industry's growth is an increased emphasis on healthy living and changing consumer dietary patterns,” according to IBISWorld.
Tea’s new place in the American market is exemplified by Starbucks’ announcement that it will build TAZO brand tea rooms by the end of 2012, Coca-Cola’s 2011 acquisition of organic bottled company Honest Tea, and the rapid growth of Teavana loose-leaf tea stores nationwide. It is estimated that McDonald’s iced tea sales alone are worth hundreds of millions of dollars annually.
QTrade’s upgraded production areas and product development labs will allow the company to continue providing the creativity and quality assurance increasingly demanded by large-scale foodservice and beverage brands.