Rise of the Matcha Drinker: A Case for Single Origin Teas

Younger generations – millennials – are looking for quality, value, authentic products, and transparency. Offering single origin tea options will be more important for attracting these audiences.

By Maxwell C Pollock  Photo courtesy of Maxwell C Pollock

I recently visited a client in New York to discuss their tea program and sample some of my company’s tea offerings. We were discussing the importance of valuing tea for its pure, unadulterated flavour, when the general manager asked, “Is your matcha green tea from Japan or China?” I immediately responded “Japan, of course.” Several of this business’ patrons had been asking the specific origin of their matcha, showing preference for matcha from Japan.

This moment reminded me of how informed the general public can be about any given subject with the modern convenience of instant information vis-à-vis Google. This also reminded me of a hard fact: the tea industry is still vastly behind in being prepared to approach informed consumers. The US domestic tea market has been a slow-moving ship. Before companies like Republic of Tea introduced alternatives to traditional black teas in supermarkets, juggernauts like Lipton and Red Rose held a monopoly on tea drinkers, save the rare enthusiast. In 1997, Teavana, now set to close its doors permanently in 2018, introduced loose-leaf tea to the far reaches of suburbia through aggressive mall expansion, mostly offering a plethora of naturally and artificially flavoured options. Unfortunately, the approach of tea purveyors ever since has been severely stagnant: blends on blends on blends.

This paradigm worked for a long time. Consumers accustomed to sweetened beverages like soft drinks could find flavourful alternatives in tea blends. Spinning tea as a miracle panacea for everything from acne to being overweight with the help of TV personalities like Dr Oz, these tea chains were able to convince tea drinkers to ditch their store-bought tea bags for travel infusers and plastic easy brewers. As a result, loose-leaf tea became accessible.

However, greater access yields greater scrutiny. As more consumers became aware of high-quality specialty teas on the market from direct suppliers, and as e-commerce increasingly provided more convenient and cheaper buying, larger bricks-and-mortar tea chains received criticism for over-pricing and exaggerating the quality of mediocre teas.

The use of artificial flavours also put off a large segment of tea buyers, a trend not unique to the tea industry (for instance, several fast food chains are moving away from artificial flavours).

Testing New Strategies

Am I arguing this led to large loose-leaf tea chains scaling back or shutting down? Absolutely not. There are other factors involved: anemic mall foot traffic, increased competition, and maladaptive business models, to name a few. I am arguing, however, that younger generations (now a large buying power in the US) are looking for quality, value and a product that screams authenticity. Millennials, armed with phone in hand, want a story behind their product, fact-checked information they can take with them to share with others. Single origin teas fill this need.

What does this mean for a tea business? There are a few things to focus on. First, find out your teas’ origin. If you can only identify one or two teas on your tea menu that have an identifiable origin, you may be a bit too blend-heavy. I would never recommend someone completely discontinuing their tea blends; let’s face it, Earl Grey is still going to be a best seller for most tea programs.

However, crafting a reserve line for single origin teas or replacing one or two under-performing blends can be a great place to start. Second, if you can identify your tea’s provenance, find out if the origin matches the character of your tea. For example, Longjing, or Dragonwell, green tea should originate in Hangzhou in Zhejiang Province, China. This is critical for the integrity of this tea type and its flavour, just as a Bordeaux wine should come from Bordeaux.

Additionally, cultivar, or the specific cultivated variety, is important in this instance. If your Dragonwell is coming from Anhui Province, that would be a red flag that you’re not sourcing an authentic Longjing and may want to look elsewhere.

Lastly, do your homework. Drink single origin teas and read about them, as well. There are some excellent books out there that explain tea types and their appropriate terroirs. The Tea Companion by Jane Pettigrew is a great premier into exploring origins of different tea types. A slightly more expansive read, Teas: History, Terroirs, Varieties by Kevin Gascoyne, Jasmin Desharnais, and François Marchand is a comprehensive reference book on tea origins and those who grow and process teas.

What’s Next for Tea?

Despite Teavana’s scheduled closure and Capital Teas’ scaling down, specialty tea is the fastest growing sector of the tea industry. According to the Specialty Food Association, specialty tea sales grew by more than 16 percent from 2012 to 2016. Younger people are drinking more tea than ever. According to a 2015 survey conducted by YouGov, a renowned pollster, there is a direct correlation of younger demographics and equal preference for coffee and tea.

As the larger tea chains shut their doors, this will may leave a vacuum for smaller, specialized tea purveyors to cater to part of the specialized tea market. As we’ve seen with the third-wave coffee movement, curating single origin options is important for attracting younger audiences that demand transparency and quality. As a tea provider, you can prioritize tea origin and position yourself on the crest of the next tea wave.

Maxwell C Pollock is a tea trader with tea importer, Royal Tea New York. Royal Tea New York sources teas directly from growing regions around the world to curate a comprehensive wholesale offering available for businesses of all levels. He may be reached at: [email protected].

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