Wednesday, November 14, 2012

Starbucks Announces Agreement to Acquire Teavana to Globally Transform Tea Industry - pymnts.com

As the industry turns...

Starbucks Announces Agreement to Acquire Teavana to Globally Transform Tea Industry - pymnts.com


Nov 14, 2012, 7:51pm

Starbucks Announces Agreement to Acquire Teavana to Globally Transform Tea Industry

Furthering its commitment to innovate and transform the tea industry and enhance the consumer tea experience in the U.S. and internationally, Starbucks Coffee Company (NASDAQ:SBUX) has agreed to acquire Teavana Holdings, Inc. (NYSE: TEA) in an all-cash acquisition.
Teavana is a specialty retailer offering more than 100 varieties of premium loose-leaf teas, authent ...
Teavana is a specialty retailer offering more than 100 varieties of premium loose-leaf teas, authentic artisanal teawares and other tea-related merchandise. (Photo: Business Wire)
Together, Starbucks and Teavana will jumpstart the next wave of growth in this dynamic category, leveraging Starbucks core competencies of real estate, design and store operations and integrating these with Teavana’s world-class tea authority, global sourcing capabilities, merchandising and best-in-class retail store unit economics. Powered by Starbucks existing infrastructure, Starbucks plans to continue to grow and extend Teavana’s already-successful 300 mall-based stores as well as add a high-profile neighborhood store concept that will accelerate Teavana’s domestic and global footprint.
“We believe the tea category is ripe for reinvention and rapid growth. The Teavana acquisition now positions us to disrupt and lead, just as we did with espresso starting three decades ago,” said Howard Schultz, Starbucks chairman, president and ceo. “Teavana’s world-class tea authority, coupled with the romance and theater of the retail experience that is the heart and soul of Starbucks heritage, will create a differentiated customer experience and business opportunity that delivers immediate value to shareholders. This complements our existing Tazo brand and gives us the unique opportunity to create a two-tiered market position.”
“By contributing deep tea expertise, global sourcing capabilities and a passion for the category that is second to none in our industry, we believe we can deliver an elevated tea experience together with Starbucks,” said Andrew Mack, ceo and co-founder of Teavana, who has committed to staying and leading Teavana’s day-to-day operations. “After growing Teavana for fifteen years, we are thrilled that Starbucks will be able to truly fulfill our mission of bringing premium tea to millions of people on a global platform. It is with great respect for what Howard and his team have built that we join the Starbucks family.”
Just as Starbucks pioneered a new retail experience for coffee and espresso, the company’s acquisition of Teavana provides the opportunity to do the same within the rapidly growing $40 billion global tea category. In calendar 2013, Starbucks will integrate its unique assets – including its leading position in social and digital media, its ten million member global loyalty program, card and mobile payment platforms – with the Teavana customer experience to expand Teavana’s current mall-based store footprint with a comprehensive design strategy that will include new Teavana neighborhood locations in markets across North America and around the world. Teavana recently opened its first store in the Middle East in partnership with Starbucks existing joint venture partner Alshaya, and has plans to enter new, high-consumption tea markets around the world in the years ahead.
Starbucks investment in Teavana is matched by its commitment to continue to grow the Tazo business – giving Starbucks a two-tiered market position for tea. Starbucks plan is to define a new elevated platform of tea experience and education, and for both the Teavana and Tazo brands to grow and complement one another while at the same time elevating the entire category through a combination of expertise and assets.
“The acquisition of Teavana supports our growth strategy to innovate with new products, enter new categories, and expand into new channels of distribution,” said Jeff Hansberry, president, Channel Development and Emerging Brands for Starbucks, who will assume leadership of the new subsidiary. “Evolution Fresh, La Boulange and now Teavana demonstrate how Starbucks will add brands that strengthen our core offering and create a rich ecosystem of experiences with shared values, mutual efficiencies and complementary characteristics, thus forming tangible examples of the success of the Starbucks Blueprint for Growth and a differentiated health and wellness offering in the marketplace.”
Starbucks has entered into a merger agreement with Teavana to acquire Teavana for an aggregate acquisition price of approximately $620 million in cash and expects the acquisition to be accretive to earnings by approximately $0.01 per share in fiscal year 2013, based off of the previously announced earnings targets. Teavana stockholders of record will receive $15.50 per share in cash in the merger which will result in Teavana becoming a wholly-owned subsidiary of Starbucks. Stockholders of Teavana holding approximately 70% of the outstanding shares of common stock have approved the merger agreement by written consent, and the closing is expected to occur by year end, following receipt of regulatory clearances.
Webcast Information
Starbucks chairman, president and ceo Howard Schultz and Starbucks chief financial officer and chief administrative officer Troy Alstead will host a webcast today at 1:30 p.m. PST to discuss this exciting strategic acquisition and its significance to Starbucks growing health and wellness business. The webcast may be accessed on the Investor Relations page of our website at http://investor.starbucks.com. A simultaneous webcast will be available and subsequently archived at Starbucks Newsroom athttp://news.starbucks.com.
About Starbucks Corporation
Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting the highest-quality arabica coffee in the world. Today, with stores around the globe, the company is the premier roaster and retailer of specialty coffee in the world. Through our unwavering commitment to excellence and our guiding principles, we bring the unique Starbucks Experience to life for every customer through every cup. To share in the experience, please visit us in our stores or online at www.starbucks.com.
About Teavana
Teavana is a specialty retailer offering more than 100 varieties of premium loose-leaf teas, authentic artisanal teawares and other tea-related merchandise through 300 company-owned stores and on its website. Founded in 1997, the company offers new tea enthusiasts and tea connoisseurs alike its "Heaven of Tea" retail experience where passionate and knowledgeable "Teaologists" engage and educate them about the ritual and enjoyment of tea. The company's mission is to establish Teavana as the most recognized and respected brand in the tea industry by expanding the culture of tea across the world. To support the tea culture globally, Teavana donates approximately 1% of annual net profits to the Cooperative for Assistance and Relief Everywhere, Inc., or "CARE," through its Teavana Equatrade program. For more information, visithttp://www.teavana.com.
Additional Information and Where to Find It
In connection with the proposed acquisition, Teavana intends to file relevant materials with the SEC, including Teavana’s information statement in preliminary and definitive form. Teavana stockholders are strongly advised to read all relevant documents filed with the SEC, including Teavana’s information statement, because they will contain important information about the proposed transaction. These documents will be available at no charge on the SEC’s website at www.sec.gov. In addition, documents will also be available for free from Teavana by contacting Teavana’s Investor Relations at investorrelations@teavana.com.
Forward-Looking Statements
Certain statements contained herein are “forward-looking statements” within the meaning of the applicable securities laws and regulations. Generally, these statements can be identified by the use of words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “feel,” “forecast,” “intend,” “may,” “plan,” “potential,” “project,” “should,” “will,” “would,” and similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These statements are based on information available to Starbucks as of the date hereof, and Starbucks actual results or performance could differ materially from those stated or implied, due to risks and uncertainties associated with its business. These risks and uncertainties include: evolving understanding of the definition of and consumer preference for super-premium tea; continued growth in the health and wellness sector and market acceptance of Starbucks in that sector; the ability of Starbucks to accelerate its growth in the health and wellness sector and in the tea category; the potential introduction of super-premium tea by new market entrants; the ability of Starbucks to successfully integrate Teavana; the long-term success of Starbucks strategy to innovate with new products, enter new categories and expand into new channels of distribution; the requirement to satisfy closing conditions to the merger as set forth in the merger agreement, including expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976; the outcome of any legal proceedings that may be instituted against Teavana and others related to the transaction; the ability to retain certain key employees of Teavana; and the risk factors disclosed in Starbucks most recent Annual Report on Form 10-K, which Starbucks filed with the Securities and Exchange Commission on November 18, 2011 and the risk factors disclosed in Teavana’s most recent Annual Report on form 10-K, which Teavana filed with the Securities and Exchange Commission on April 13, 2012 and in all filings with the SEC made by Teavana subsequent to the filing of the form 10-K. Forward-looking statements reflect management’s analysis as of the date of this release. Starbucks and Teavana do not undertake to revise these statements to reflect subsequent developments, except as required under the federal securities laws.

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Sunday, October 7, 2012

Argo Tea Opens First Overseas Shop


04 Oct 2012
By World Tea News
BEIRUT, Lebanon
Argo Tea founder Arsen Avakian last week opened the company’s first branded overseas location.
Avakian, 37, traveled to the grand opening last week and spoke to the Daily Star (Lebanon) about his first overseas expansion.

“Beirut is the window to the Middle East,” said Avakian who grew up in Yerevan, the capital and largest city in Armenia. A Fulbright Scholar, he and boyhood friend Simon Simonian, a computer scientist, emigrated to the United States in the 1990s where they teamed with French management consultant Daniel Lindwasser to launch the chain in 2003.

Argo Tea is privately held with estimated earnings of $20 million, according to an article in Time Magazine. The company operates 30 locations, mainly in Chicago where it is headquartered, but with five locations in New York City and one each in Boston and St. Louis.

The company’s bottled teas, which sell for $2.40 for a 13.5 oz. can be found in more than 3,000 grocery locations including Whole Foods Markets, Safeway and Dominick’s.

Investors including billionaire Sam Zell and Oxford Capital have fueled the company’s expansion which accelerated during the recession. The company now employs more than 400 workers, most part-time.

Avakian said the chain intends to add several Middle East locations and expressed ambitions to expand to Asia and Europe.

The first floor location in Le Mall, Dabbayeh, offers 40 tea blends, pastries, snacks and sandwiches including a chai cherry chicken sandwich cooked in the spiced tea.

“We want to do for tea what Starbucks did for coffee,” Avakian told the newspaper reporter, recounting the two years he worked as a barista at his first cafe, sourcing teas and mixing them with a variety of international ingredients to create healthy, refreshing and often unexpected drinks.

Argo has located several of its stores near Starbucks coffee shops including the Willis Tower in Chicago, O’Hare Airport and the Flatiron Building in New York City.

The menu in Beirut closely adheres to the U.S. offerings with Maté Laté a signature Brazilian maté, with almond and milk; the Hibiscus Tea Sangria, a mixture of iced tea and fresh fruits; the White Tea Acai Squeeze, white tea and lemonade; and the Green Tea Ginger Twist.

Tea is the fastest growing beverage segment in the U.S. over the past 10 years and Argo is a considered a tea retail pioneer. In addition to loose leaf tea and concentrates, the shops sell a range of Fair Trade and certified organic coffee.

Argo is one of several Western foodservice vendors in Beirut. Succeeding in the Middle East will be easier, he says, because a culture of tea drinking already exists.

Sources:  Daily Star (Lebanon) Time Magazine

Tuesday, September 4, 2012

Green tea, hibiscus-based drinks pack antioxidants

Green tea, hibiscus-based drinks pack antioxidants


Green tea, hibiscus-based drinks pack antioxidants

If you want your beverage to work extra hard for you, pick a green tea with hibiscus.
According to a new study out of Portugal, drinks containing both these ingredients were found to have the highest antioxidant content of 19 different beverages currently on Portuguese grocery store shelves, reports trade publication NutraIngredients.com.
After analyzing the phenolic content in tea-based beverages and fruit juices, analysts from the Universidade do Porto found that a tea formulation containing green tea, hibiscus and pineapple packed the most antioxidant punch, while a borututu roots infusion fell at the bottom of the spectrum with the lowest antioxidant activity. Borututu bark or root is said to help detox and cleanse the body.
The findings were published in the Food Science and Technology Journal.
Interestingly, while fresh berries are said to be full of health benefits, under the banner of fruit juice they fall flat: blackberry and raspberry-based juices had the lowest antioxidant content, while a cocktail made of pomegranate, grape, and carrot juice, hibiscus and green tea extract was shown to pack the biggest punch. Researchers make no mention of brand names in the study.
Meanwhile, in a paper out of Norway, scientists compiled a database of more than 3,100 foods, drinks, spices, herbs and supplements used worldwide. Among the most antioxidant-rich food are black currants, wild strawberries, blackberries, cranberries, dried apples, artichokes, and dried fruits like plums, apricots, dates and mango.
Meanwhile, a study out of Norway catalogued the antioxidant content of more than 3,100 foods, beverages, spices, herbs and supplements in 2010.
Here are some of the most antioxidant-rich foods from the database:
Beverages
Coffee
Espresso
Pomegranate juice
Red wine
Breakfast cereals, grains, legumes, nuts and seeds
Buckwheat
Chestnuts with pellicle, or the skin of the nut
Pecans with pellicle
Sunflower seeds
Walnuts with pellicle
Berries, fruits and vegetables
Baobab, an African fruit
Amla (Indian gooseberry)
Bilberries (dried)
Dog rose (dried, fresh)
Dried plums, prunes, apricots, apples
Artichoke
Blueberry jam
Curly kale
Okra
Spices
Cloves
Allspice
Mint leaves
Oregano
Thyme
Cinnamon

Tuesday, August 14, 2012

SQF, are you ready?




SQF is coming...Are you ready?

SQF Certification is supported by an increasing number of U.S. and international retailers and food service providers, many of whom are expressing a preference for SQF-certified suppliers. In addition, the SQF program is endorsed by the Global Food Safety Initiative (GFSI), a collaboration between some of the world’s leading food safety experts from retailer, manufacturer and food service companies, as well as service providers associated with the food supply chain.
The following companies are among the growing number of retailers and food service providers who support SQF certification:
A & P Tea Company
Ahold – Corporate Center
Ahold – US
Albert Heinj, B.V.
Bake Mark
Big Y Foods, Inc
Bloom
Bottom Dollar Foods
Carrefour Group
Chicago Dairy Corporation
CiCi’s Pizza
Coles
Compass Group
ConAgra Food, Inc.
Costco
CVS Pharmacy
Darden
Daymon Worldwide Inc.
Eggland’s Best Inc.
Farm Fresh, LLC
Food Lion, LLC
Giant Food Stores LLC
Giant Food, Inc.
Glister Mary Lee Corp
Gordon Foodservice
Haddonfield Foods Inc
Hannaford Bros. Co.
Harris-Teeter, Inc.
H-E-B
Hershey Company
Holiday Candy
Hormel
Jack in the Box
Kash n’ Karry Food Stores, Inc.
Kellogg Company
Kemps, LLC
Kraft Foods
Lund Food Holdings, Inc.
McDonalds – Global
McDonalds – US
Metro, AG
Migros, Switzerland
Nestle Canada and USA
Pathmark Stores, Inc.
Panera Bread
Peapod, Inc.
Price Chopper Supermarkets
Publix Super Markets, Inc.
Raley’s Family of Fine Stores
Safeway, Inc.
Sam’s Club
Sargento Foods
Schnuck Markets, Inc.
Schwans
Sobeys Inc
Subway
SUPLERVALU INC.
Sweetbay Supermarkets
The Stop & Shop Supermarket Company
Target
Tesco Pic
Topco
Tops Markets, LLC
US Foodservice
Vitamins Incorporated
Wakefern Food Corporation
Wal-Mart Stores, Inc.
Wawa
Wegmans Food Markets, Inc
Weis Markets, Inc.
Wendy’s
Winn-Dixie Stores, Inc

For more information: http://www.sqfi.com/buyers/sqf-buyer-supporters/
http://www.cert-id.com/Certification-Programs/SQF-Certification

Friday, August 10, 2012

Clean Foods List or the Dirty Dozen, please print for your wallet!

From FoodNews.org and a former employee - friend for emailing this to me!  I keep it in my wallet, please print it and put in to yours!



Why Should You Care About Pesticides?
The growing consensus among scientists is that small doses of pesticides and other chemicals can cause lasting damage to human health, especially during fetal development and early childhood. Scientists now know enough about the long-term consequences of ingesting these powerful chemicals to advise that we minimize our consumption of pesticides.
What’s the Difference?
EWG research has found that people who eat five fruits and vegetables a day from the Dirty DozenTM list consume an average of 10 pesticides a day. Those who eat from the 15 least contaminated conventionally-grown fruits and vegetables ingest fewer than 2 pesticides daily. The Guide helps consumers make informed choices to lower their dietary pesticide load.
Will Washing and Peeling Help?
The data used to create these lists is based on produce tested as it is typically eaten (meaning washed, rinsed or peeled, depending on the type of produce). Rinsing reduces but does not eliminate pesticides. Peeling helps, but valuable nutrients often go down the drain with the skin. The best approach: eat a varied diet, rinse all produce and buy organic when possible.
How Was This Guide Developed?
EWG analysts have developed the Guide based on data from nearly 89,000 tests for pesticide residues in produce conducted between 2000 and 2008 and collected by the U.S. Department of Agriculture and the U.S. Food and Drug Administration. You can find a detailed description of the criteria EWG used to develop these rankings and the complete list of fruits and vegetables tested at our dedicated website, www.foodnews.org.
Learn More at FoodNews.org  
(Printable new and up to date on link Here)
EWG’S SHOPPER’S GUIDE TO PESTICIDES  TM
DIRTY DOZENTM CLEAN 15TM Buy These Organic Lowest in Pesticides
  1. 1  Celery
  2. 2  Peaches
  3. 3  Strawberries
  4. 4  Apples
  5. 5  Blueberries
  6. 6  Nectarines
  7. 7  Bell Peppers
  8. 8  Spinach
  9. 9  Cherries
  10. 10  Kale/Collard
    Greens
  11. 11  Potatoes
  12. 12  Grapes (Imported)
1 Onions
2 Avocado
3 Sweet Corn 4 Pineapple
5 Mangos
6 Sweet Peas 7 Asparagus
8 Kiwi
9 Cabbage
10 Eggplant
11 Cantaloupe 12 Watermelon 13 Grapefruit
14 SweetPotato 15 Honeydew
Melon
www.foodnews.org
THE POWER OF INFORMATION
Headquarters 1436 U St. N.W., Suite 100 Washington, DC 20009 (202) 667-6982
WORST
BEST 

Tuesday, July 24, 2012

Calm before the storm...let's get busy


It is that time, the calm before the storm of winter sales...meaning the perfect time for you and I to:
  1. finalize your winter tea offerings, finish formulation, and place orders ~ for inspiration see attached Holiday Tea offerings from last winter (valid for this year too!)
  2. get your winter orders in for your high volume items, negotiate pricing on volume (helping us project and negotiate best pricing)
  3. talk about what is in stock now - that usually runs out! SUCH AS:  Lemon grass tbc $2/lb, and Organic Lemon Grass c/s and tbc each $3/lb. Chamomile - organic tbc $4.50, Org whole $6.50, conventional whole $5.50, tbc $3.  Rosehips Org tbc $5.70.   Gunpowder - Org. 9374 $3.50 (C10139), C10141 Ex Spl 3505 Gunpowder $6.90, and conventional 3505 $3.  
  4. don't forget cardamom is down this year - but tea pricing is going up - so if you can place orders now, I would advise you to STOCK UP NOW or secure pricing for the next month beofre it rises - see attached article from World Tea News   
  5. talk about some Kenyan teas - I will send you info very soon on some that are overstocked here...I will send you cupping notes and ideas on how you can use them to your advantage at a GREAT price to move it out from us to you at a fabulous value 
  6. it is time to start thinking and planning on next years teas, especially in iced teas
  7. have you seen our new website and registered to view pricing?  www.qtradeteas.com, PLEASE NOTE - you can not order on here yet, so please ignore anything on this function (for now!), you can not check your account on here yet either! 
  8. lastly - check out my blog for more interesting info!  http://desntea.blogspot.com/,such as this interesting article on "The State of the Industry" From Bev Industry ...  http://desntea.blogspot.com/2012/07/2012-state-of-industry-tea-and-ready-to.html

FDA and Certified Organic Info


Who Needs To Be Certified?

Most farms and businesses that grow, handle, or
process organic products must be certified, including:
- Farms that sell more than $5,000 in organic
products per year (gross sales).
- Handlers that sell more than $5,000 of organic
processed food, including handlers that place
bulk products into smaller packages or that
repackage/relabel products.
- Processors that sell more than $5,000 of organic
processed products, unless all products contain
less than 70 percent organic ingredients or only
identify the organic ingredients in the ingredient
statement.
- Vendors that handle (e.g. package) and sell
products online (but not in stores) or otherwise
deliver organic products.

Overall, if you make a product and want to claim that
it or its ingredients are organic, your final product
probably also needs to be certified. Please review the
examples and exemptions below.
If you wish to make any organic claim on the granola’s
principal display panel (front of the package), yes, you
must be certified. Organic claims include any use of the
word “organic” (alone or referring to specific organic
ingredients) or the USDA organic seal. Only products
meeting all requirements for the “organic” or the “100
percent organic” labeling categories may use the USDA
organic seal anywhere on the package.

If you are only identifying specific
organic ingredients in the ingredient statement
and aren’t making an organic claim elsewhere, review
the  “exempt handling operations” section on next page.
If you are a retail food establishment, review the
“retail food establishments” section on next page.
Learn more about requirements for each labeling
category at www.ams.usda.gov/NOPOrganicLabeling.
If you are only selling a pre-packaged product, you
don’t need to be certified. The company that does the
final packaging for your product must be certified and
get any organic product label approved prior to sale.


Who Doesn’t Need to Be Certified?

The following operations do not need to be certified:
- Small organic farms and businesses (gross
agricultural income from organic sales does
not exceed $5,000 per year)
- Some brokers, distributors, and traders (see
below)
- Retail food establishments.
- Exempt handling operations (see below).
Although certification is not required for these “exempt”
or “excluded” operations, they may pursue voluntary
organic certification. Exempt and excluded operations
still need to comply with specific sections of the USDA
organic regulations (please see other side).

National Organic Program | Agricultural Marketing Service | U.S. Department of Agriculture              June 2012

Do I Need To Be Certified Organic?

I combine multiple certified
organic ingredients to make organic
granola. Do I need to be certified?
Another company packages my
product. They have an organic certificate.
Do I also have to be certified?Small Organic Farms and Businesses
If your farm or business’ gross agricultural income from
organic sales is $5,000 or less per year, it is considered
an “exempt” operation. This means you don’t need to
be certified to sell, label, or represent your products
as organic. You also do not need to develop a written
organic system plan. However, you must follow all
other requirements in the USDA organic regulations.
Specifically, you must:
- Maintain records for at least three years.
- Not use the USDA organic seal on your products
or refer to them as certified organic. If you would
like to use the USDA organic seal, pursue organic
certification.
- Meet other USDA organic labeling requirements.
- Not sell your products as ingredients for use in
someone else’s certified organic product.
- Register with the California Department of Food
and Agriculture if your farm is in California.

Brokers, Distributors, and Traders Who
Handle Products in Closed Containers

If your operation only sells, transports, stores, receives,
or acquires  products that are received in and remain
in a container without being processed*, the operation
does not need to be certified. An example of such
an “excluded” operation would be one that handles
boxed organic cereal. However, you must prevent
commingling with non-organic products and contact
with prohibited substances.

If your operation handles bulk, unpackaged organic
products (such as cattle, milk, or grain), you need to be
certified or be included under an organic producer or
handler’s organic system plan.
Retail Food Establishments

If your operation is a retail food establishment, such
as a grocery store, it does not need to be certified. You
may sell certified organic products that bear the USDA
organic seal, as long as you don’t process* them.

If your retail food establishment processes* certified
organic products on its premises, the USDA organic
regulations state that you must:
- Prevent commingling with non-organic products
and contact with prohibited substances.
- Not use the USDA organic seal or refer to
processed products as certified organic. If you
would like to use the USDA organic seal, obtain
organic certification.
- Meet other USDA organic labeling requirements.
Exempt Handling Operations
If your handling operation:
- Only handles products that contain less than 70
percent organic ingredients (excluding salt and
water) or
- Only identifies organic ingredients on the
product’s information panel,
It does not need to be certified. However, the USDA
organic regulations state that you must:
- Prevent commingling with non-organic products
and contact with prohibited substances.
- Meet the USDA organic labeling requirements.
- Maintain records for at least three years that
prove that the quantity of organic products sold
were organically produced and handled.

Learn more: www.ams.usda.gov/NOP

QSR Magazine...No Fizz, No Problem


No Fizz, No Problem


Many customers like the option of noncarbonated cold beverages.
Noncarbonated beverages provide menu opportunities for fast food restaurants.
There’s nothing quite as revitalizing as a cold drink on a hot summer afternoon. These days, however, restaurant guests are looking for more than just refreshment from their cold beverages. They are seeking fewer calories, healthful options, or, perhaps, a jolt of energy.
Cold beverages, particularly carbonated ones, have been part and parcel of quick-service restaurants from the time the first units opened. Coca-Cola, for instance, has been served at White Castle since 1921, the year the business began.
Fizzy drinks, as a group, are still the most popular beverage option at limited-service restaurants, but noncarbonated drinks are picking up steam. Iced teas and coffees, various waters, lemonade, and juices have been growing quickly.
“There is absolutely more consumer interest in a wider array of beverages, and restaurant operators have realized that,” says Maeve Webster, research director at Datassential, a food industry market research firm and consultant with offices in Chicago and Los Angeles.
This is partly an aspect of the overall customization bent, which focuses on giving diners more options to meet their wants and needs.
“The marketplace is splintering,” says Gary Hemphill, senior vice president of information services at Beverage Marketing Corp. (BMC), a New York–based research and consulting firm. “People want more variety now and that means more beverage choices.”
This trend has been developing for the past few decades, but has become increasingly notable in recent years. According to BMC statistics, carbonated drink volume has declined seven consecutive years as consumers gravitate to noncarbonated choices.
“These are often items that have a healthier image, whether or not they really are, including teas, bottled waters, and functional products like energy drinks,” Hemphill says.
The BMC annual report for 2011 found that major carbonated brands made up half of the top 10 liquid refreshment beverages and bottled waters took three more spots. The other two were PepsiCo’s Gatorade energy drink and Tropicana fruit brands.
Energy drinks, which appeal to young males, were the fastest-growing beverage category, with annual volume jumping 14.4 percent. Coffees and teas also showed strong gains.
“[Quick-service] restaurant operators understand what is going on in the marketplace, with people looking to make different beverage choices,” Webster says. Offering a variety of drinks “increases owners’ flexibility and gives them the opportunity to compete better.”
Excepting carbonated beverages, the beverage offered most at limited-service restaurants is tea, particularly iced tea, which is on the menu at 63.2 percent of quick serves, according to Datassential. That is followed by various waters, which are on 57.5 percent of menus.
The water total may be underreported since many restaurants don’t list water on their menus if it comes from the tap or from a tab at the fountain dispenser.
Various brands of bottled water are in 46.6 percent of quick serves, while penetration is 5.5 percent for spring water, 4.3 percent for vitaminwater, and 3.1 percent for sparkling water.
The vitaminwater brand showed the biggest compounded annual growth of any beverage at fast feeders over the past five years, rising more than 27 percent per year. The next two are green tea and San Pellegrino mineral water, both at about 16 percent a year.
An old favorite, lemonade, is on the menu at 54.4 percent of limited-service units, while coffee is on 51.6 percent and orange juice is on 51.1 percent.
Juices, mostly orange and apple, appeared increasingly on menus in recent years as more quick serves added breakfast or replaced carbonated drinks on children’s menus.
“The push to get kids to move away from sodas and eat healthier led to the boost in juice offerings, even if they may not have less sugar,” Webster says. “It’s all about feeling better about what you are ordering.”
Offering a wide range of beverages also “is a way for [quick serves] to differentiate themselves from the competition,” Hemphill says. “Historically, [quick serves] have lagged a little in trends, but if an operator can figure out a way to move faster, there is opportunity.”
Not surprisingly, limited-service restaurants have been adding noncarbonated cold beverages at a rapid pace. According to statistics from MenuMonitor, the menu-tracking database created by restaurant market research and consulting firm Technomic Inc., there were more than 200 new cold beverages recently added at quick serves.
Iced teas made up the largest chunk of those additions, followed by iced coffee and waters.
“There have been a lot of innovations in tea because it has such a healthy halo,” Hemphill says. “It’s also a base for innovation, like green tea, that appeals to the sophisticated tea drinker but also for those seeking a healthier option.”
An increasing number of quick serves offer or have added fresh-brewed iced and sweet teas to meet consumers’ growing demand for a fresher, better-tasting product.
At the same time, iced and chilled coffee, espresso, and related beverages have grown steadily in the wake of aggressive marketing by coffee chains, such as Starbucks, and the addition of these types of drinks at McDonald’s and other extended-menu fast feeders.
“Americans had traditionally consumed coffee hot, but the cold coffee hurdle has been leapt,” Hemphill explains. “Most Americans are now comfortable in drinking coffee cold. So now it’s a year-round product, hot more often in winter, cold more often in summer.”
Iced coffees carry fairly high margins, he adds, and while some of the products may be labor intensive and time consuming, restaurants can do well with these items if they become part of the core strategy and generate strong repeat purchases.
While fountain drinks are a long-time staple at limited-service eateries, a number of outlets, including pizza parlors, sub shops, and fast-casual restaurants, also feature refrigerated cases that contain bottled or canned cold drinks.
The cans and bottles—glass or plastic—in fast-casual refrigerators, for instance, are often drinks not available at the fountain, including upscale carbonated beverages, flavored waters, teas, vitaminwater, and even beer.
As some mainline quick serves try to compete with fast casuals, they are considering adding their own refrigerated cases. Wendy’s is testing several ideas at its new prototype units, including a refrigerated case that includes some regular items (bottled water, milk and chocolate milk, and packaged apple juice) as well as nontraditional ones, such as canned NOS energy drinks.
The units are also trying out several iced coffees and Coca-Cola’s Freestyle dispensing machines, which offer Coke’s Dasani still water and other brands in a variety of flavors.
Wendy’s continues to measure customer feedback, sales, and costs for all these offerings, says company spokesman Denny Lynch.
Firehouse Subs is already sold on the customization potential of the Freestyle dispensers. The chain last year completed installation of the machines in all 500 of its restaurants.
“There are so many possible drink permutations,” says Don Fox, CEO of the Jacksonville, Florida–based company. “The Dasani water, for instance, has seven different flavors and those can be mixed any way the customer wants.”
The Freestyle offers more than 120 drink options, and that “certainly adds value,” Fox notes. “It’s all about segmentation and satisfying the consumers.”
Even with all of the beverage possibilities, Firehouse would not have added the machines if Coca-Cola did not include one thing not typical for the beverage company: a noncarbonated cherry syrup drink for making the chain’s cherry limeade.
Cherry limeade makes up 21 percent of the chain’s beverage sales.
“When our first restaurant opened in 1994, the cherry limeade was hand mixed,” Fox says. “Later we went to a mix [for the cherry drink’s base], but the founders weren’t really happy with it, so it was never sold outside Jacksonville.”
Within the past four years, however, the cherry base was deemed good enough to go system-wide. Guests squeeze lime wedges into the cherry drink to make limeade.
“We know it’s expensive to do that, but we build that into our cost of doing business,” Fox says. “It adds a quality halo to our beverage offerings.”
The Freestyle has helped Firehouse attract more dine-in business, particularly among families, and boosted the average ticket from $10.25–$10.50 to $11.25–$11.50.
One chain that combines a coffee house with a fast-casual bakery-café is Cosi. The company resulted from the 1999 merger of Xando Coffee and Bar with Cosi Sandwich Bar and provides guests a range of cold beverages, from coffees to specialty lemonades.
“We think it’s important to our guests to give them the combinations they want,” explains Keith Stewart, marketing director of the Deerfield, Illinois–based chain.
The company has seen an increase in customer demand for water products, but not at the expense of other beverages. “It’s additive,” Stewart says, “particularly with drinks like smartwater and vitaminwater,” which include electrolytes, minerals, vitamins, and herbs.
Cosi also has made a point of creating proprietary cold teas and coffees, including Ginger Green Tea, which the company will be premiering this year. And then there are the lemonades: Strawberry Pomegranate and Mango Pomegranate.
This year, Habanero Watermelon Lemonade, a limited-time offer, will return. The sweet drink, which has a hint of heat, arrives with four big pieces of watermelon on a skewer.
“We have so much produce on our menu that it’s easy for us to have strawberries to garnish a beverage or to add watermelon to our order,” Stewart says.
At Quiznos, beverages “are a very integral part of our offerings,” says Zach Calkins, vice president of culinary creations. “It’s a natural fit to combo” a drink with food.
Tea and noncarbonated bottled beverages, particularly waters, are popular with salads.
Last year, Quiznos, with about 2,300 U.S. locations, relaunched its tea offerings with three new blends: unsweetened, black tea infused with raspberry, and green tea with lemon, lime, and honey. Sweet tea is available at locations in the South.
The Denver-based company is also upgrading its lemonade. A new honey lemonade was tested last year in six markets and is now rolling out system-wide. Franchisees can choose this variety or the traditional raspberry lemonade.
“It’s optional,” Calkins says. “Markets like Salt Lake City and Albuquerque love this new lemonade, while markets in the South want the raspberry lemonade.”
Quiznos also offers a wide range of Pepsi’s Sobe bottled beverages. While some varieties, like green tea, consistently do well, the company regularly switches flavors in and out.
“We rely on our partnership with Pepsi to see where consumers are and what they want,” Calkins says. “It depends on what is popular in a particular area. They may tell us that a drink is really moving and recommend we put that in our cooler.”
The idea of having many beverages available gives customers plenty of choices, so there is less chance for drinks to result in a veto vote.
“By having all these options, we have not seen a downtick in our carbonated drinks at the expense of more people choosing other beverages,” Calkins explains. “You’ve got to zig and zag with consumers and try to stay ahead of them and what they crave.”

http://www.qsrmagazine.com/menu-innovations/no-fizz-no-problem?page=show

QTrade and L.A. Business Journal...Tea is here to stay


Tea Maker’s Santa Fe Springs Exit Was in Leaves

RELOCATION: QTrade moves to Cerritos with eye on future expansion.By JAMES RUFUS KORENMonday, July 23, 2012
You’ve probably never heard of QTrade International Corp., but if you’ve ever strolled down the tea aisle at Whole Foods Market, you’ve probably seen the company’s products.
And you might see more. The company, a major importer and processor of specialty teas and herbs, is expanding and this month finished moving into a new manufacturing center and headquarters in Cerritos.
The 64,000-square-foot building, at 16205 Distribution Way, was purchased last year and nearly doubles the company’s footprint compared with its previously facility of 34,000 square feet in Santa Fe Springs.
“It gives us additional capability, especially in our manufacturing,” said QTrade President Manjiv Jayakumar. “We went from 2,000 square feet of blending area to about 12,000 square feet.”
QTrade imports teas and herbs, mostly through the local ports, then processes, blends and packages teas for private-label customers. Jayakumar said he could not disclose the names of any customers, but they are brands “you’d typically find in a Whole Foods environment.”
The company imports about 800 different ingredients, most of them organic and fair-trade certified, and has roughly 2,000 different product blends. Its products are available in all 50 states; the company also serves customers in Canada and the Middle East.
QTrade has grown significantly since Jayakumar’s father, Chief Executive Manik, founded the company in his garage in 1994 after emigrating from Sri Lanka. It was a one-man operation until 2005, when it moved to a small warehouse in Santa Fe Springs; QTrade now employs about 50 workers.
Manjiv Jayakumar said QTrade doesn’t need all of its 64,000 square feet today and called the $4.3 million purchase a gamble, but he expects the company to grow into its new space as the specialty tea market grows.
“It’s a bet on the future of the industry,” he said. “We felt we wanted to build ahead of what the current state of the business was. In the short term, we certainly face lots of cash-flow pressures, but we’re confident our tea is here to stay.”

Friday, July 20, 2012

2012 State of the Industry: Tea and Ready-to-Drink Tea


2012 State of the Industry: Tea and Ready-to-Drink Tea

July 18, 2012
http://www.bevindustry.com/articles/85658-2012-state-of-the-industry--tea-and-ready-to-drink-tea

Last year, sales of tea and ready-to-drink (RTD) tea increased 5.1 percent, reaching $4.3 billion in food, drug, convenience stores and mass merchandisers,tea excluding Walmart, according to Mintel’s July 2011 “Tea and RTD Teas – U.S.” report. Canned and bottled tea as well as refrigerated RTD tea drove growth in the category, the Chicago-based market research firm reported.
The canned and bottled RTD tea segment accounted for just more than 50 percent of the market share in measured channels and showed the largest growth in the category from 2009 to 2011 at 19.2 percent, Mintel noted. The second-largest segment, refrigerated RTD tea, made up
13 percent of total category sales in 2011 and grew more than 15 percent from 2009 to 2011, the report stated.
Bagged and loose tea sales growth remained small compared to the RTD segment, increasing 3.5 percent from 2009 to 2011, according to Mintel. Convenience via single-cup pods could help grow the segment, the report said. Based on the success of Celestial Seasonings’ single-cup tea pods, Mintel suggested that the pod packaging format might be a solution to the slow sales taking place in the overall bagged and loose tea segment.
Flavor is the No. 1 reason why consumers drink tea, according to the Mintel report. This explains why flavor innovation in RTD teas helped to drive growth in the segment, the report stated. In the RTD tea segment, lemonade-and-tea drinks have gained in popularity.
The line of Arnold Palmer beverages by Arizona Beverage Co., Cincinnati, showed the highest increase in SymphonyIRI’s Top 10 canned and bottled teas with 43 percent growth to nearly $158 million in sales for the 52 weeks ending April 15 in supermarket, drug, gas, convenience and mass merchandise retailers, excluding Walmart, club and liquor stores, according to Chicago-based market research firm SymphonyIRI Group.
Brands such as Snapple and Sweet Leaf both launched lemonade-and-tea beverages this year. Dr Pepper Snapple Group, Plano, Texas, launched Snapple Diet Half ‘n Half Lemonade Iced Tea, a blend of lemonade and iced tea made with green and black tea, and Stamford, Conn.-based Nestlé Waters North America’s Sweet Leaf subsidiary launched Organic Half & Half Lemonade Tea.
In addition to lemonade-and-tea combinations, tea is making an appearance in juice drinks and other categories. This spring, Purchase, N.Y.-based PepsiCo announced its new Trop50 line of low-calorie tea-infused juices. The line includes Peach and White Tea, Raspberry and Green Tea, and Pear Lychee and White Tea.
In addition to positioning and flavor innovation, RTD teas are turning to packaging to attract consumers. The economic downturn influenced consumers to buy bulk packaging to save money, experts say. Atlanta-based The Coca-Cola Co. introduced family-size packaging for its Gold Peak RTD tea brand, which is merchandised in the refrigerated section. Gold Peak increased 12.3 percent in the 52 weeks ending April 15 in SymphonyIRI’s measured channels.
Also appealing to price-sensitive consumers, pre-priced canned iced teas continue to grow. Arizona, which offers several varieties of pre-priced teas, maintains the top spot in the canned and bottled tea segment with nearly $620 million in sales in SymphonyIRI’s measured channels for the 52 weeks ending April 15. BI 

Wednesday, July 18, 2012

Green Tea and Gold to Treat Prostate Cancer?

Green Tea and Gold to Treat Prostate Cancer?: A combination of gold and green tea compounds may be the future of prostate cancer treatments, according to a new mouse study published in the Proceedings of the National Academy of Sciences. Researchers from the University of Missouri found that a combination of a compound...

Wednesday, June 20, 2012

Starbucks tea shop to open...

If you would have told me this 10 years ago, when we tea shop, tea bar, progressive tea stores were before our time, I would have gasped...


Starbucks tea shop to open in U-Village
The new Tazo tea store will sell hot and iced tea drinks and tea lattes, and it will feature a blending station where customers can create their own versions of Tazo's existing teas.

By Melissa Allison
Seattle Times business reporter



Three months after debuting its first noncoffee store — a fresh-juice shop in Bellevue Square — Starbucks plans to open a store centered on tea in University Village. It is expected to open in the fall, replacing Lululemon, which is moving to a larger space in the shopping center.

Starbucks officials see the juice and tea stores as destinations where customers can experience its Evolution Fresh and Tazo brands in 3-D, but they decline to say how many other juice and tea stores they may open.

Both brands also are sold as packaged goods in Starbucks stores — including two at University Village — and in grocery stores.

"We want to raise customer expectations for tea the same way Starbucks did for coffee," said Charlie Cain, a vice president with Tazo.

Blending station

The new Tazo tea store will sell hot and iced tea drinks and tea lattes, and it will feature a blending station where customers can create their own versions of Tazo's existing teas

For example, a customer could replace the black-tea base in Tazo's chai with a white tea or rooibos base — or develop something unique.

Customer-blended teas will be sold by the ounce. Prices have not been set.

Although Tazo already books $1.4 billion in annual sales, Starbucks sees more potential, said Chris Bruzzo, Starbucks' senior vice president of channel-brand management.

"What we learned in our years building the third-place experience [with Starbucks] is that having a direct, personalized connection to consumers is powerful and creates a halo that benefits the brand when the consumer sees it on the [grocery] aisle," he said.

Bruzzo, who previously launched Starbucks' successful digital and social-media strategy, now focuses on the marketing of various Starbucks products, including what the company considers its three emerging brands: Tazo, Evolution Fresh, and Seattle's Best Coffee.

Seattle's Best is a chain of about 80 shops that also sells coffee in 50,000 outlets, including Subway and Burger King stores.

Tazo purchase

Starbucks bought Tazo, a Portland tea company, in 1999 for $8.1 million.

Steve Smith, who co-founded Tazo and Stash Tea, became known at Tazo for creating blends called Awake and Calm, which cost about twice as much a other teas.

Tazo's operations are now being moved to Starbucks' roasting and packaging plant in Kent.

The tea store is a good for University Village's mix, said Susie Plummer, general manager of the shopping center.

"I've been looking for a great tea store for about 10 years," she said. "Even on personal vacations to Vancouver [B.C.], there are some great owner-operated mom-and-pops up there, so to me this is perfect."

Melissa Allison: 206-464-3312 or mallison@seattletimes.com. On Twitter @AllisonSeattle.

Monday, June 11, 2012

Another "Authentic Tea" demand....


Döhler's Premium RTD Teas Create New Potential Through Authentic Brewed Tea!

On average, each person drinks 56 litres of tea per year. In contrast, only 6 litres of this amount can be attributed to RTD iced tea. Why? In part because many consumers regard classic iced tea as being too sweet and often lacking the characteristic tea taste. As a result of the broad global acceptance of tea, Döhler (Doehler) sees untapped market potential in the RTD tea segment. By offering high quality RTD tea concepts based on authentic tea taste, Döhler strives to enable beverage manufacturers to tap into this potential. As one of the world's leading producers, marketers and suppliers of technology-based natural ingredients, ingredient systems and integrated solutions, Döhler has developed innovative tea beverages in cooperation with its partner Plantextrakt. These drinks range from “Brewed Iced Teas” to “Premium Brewed Iced Teas” and “True Teas”. In line with these concepts, Döhler offers strong freshly brewed and non-concentrated Strong Tea Infusions.
Strong Tea Infusions – the basis for authentic tea indulgence
By forgoing technical concentration and additives, “Strong Tea Infusions” taste like freshly-brewed tea. Apart from different tea infusions such as black tea, green tea, white tea, rooibos and mate, the portfolio also features strong infusions made of herbs, spices and fruits. Due to the intense, authentic taste, no additional flavours or extracts are required. The tea infusions allow for advertisements claiming "made with directly brewed tea". Along with cost-efficient tea infusions for an easy enhancement of iced teas, Döhler also offers premium tea infusions. These are produced with the finest tea leaves, which means that the variety and country of origin can be claimed on the label.
The evolution of classic iced tea: Brewed Iced Tea
Classic iced teas with the taste of lemon and peach are as popular as ever. However, these classic iced teas often lack the characteristic taste of tea. Strong Tea Infusions are an ideal way to give classic iced teas an authentic tea note. Döhler has developed the Brewed Iced Tea concept, in which tea extracts are replaced by Strong Tea Infusions, allowing for advertisements claiming "made with directly brewed tea". Brewed Iced Teas stand out on account of their natural appearance and authentic taste profile, thereby clearly distinguishing themselves from existing classic iced teas on the market.
Premium Brewed Iced Teas: Only the best of everything!
Premium Brewed Iced Teas open up a world of absolute premium indulgence. Only tea infusions made from premium tea leaves of different tea varieties (e.g. Ceylon, Darjeeling, etc.) are used. The combination of natural fruit juices and reduced sugar characterise Premium Brewed Iced Teas with a particularly natural and refreshing taste profile blended with a typical tea note. Concepts with fruit or herbal infusions also have a very interesting taste profile. This premium concept appeals in particular to iced tea drinkers who are looking for natural refreshment with the authentic taste of tea.
True Tea* – tea in its purest form
Enjoy tea in its purest form! This is the thought behind Döhler's True Tea* concepts. Only infusions of the highest quality tea leaves are used for these beverages. Due to its special brewing process, the tea is able to develop its full flavour offering true tea indulgence! The use of selected teas means that the variety and country of origin can be claimed on the label of the final product. True Tea* not only appeals to classic iced tea drinkers, but also tea connoisseurs.
* True tea is not a registered trademark (of Döhler or Plantextrakt) and is only used as a name for the concept for better description to the companies' own customers.
6/5/2012

http://www.fruit-processing.com/article/286.html