Over the last decade, I have had the privilege of watching the US retail coffee market unfold and it has been quite a journey. Today, I invite you to sit back, relax and open a can of your favourite coffee as we reflect on where the market has been, where it is now and where it’s going next. 

RTD coffee was first introduced in the US in the 1950s but didn’t fully resonate with consumers until forty years later. In the mid-1990s, an icon was born: the Starbucks bottled Frappuccino. This sweet, creamy, indulgent coffee beverage set the tone for what would be the RTD coffee space for over two decades. 

The early 2000s saw a surge in the popularity of RTD coffee, with consumers increasingly interested in convenient on-the-go coffee options to fit busy lifestyles. Companies such as PepsiCo, Coca-Cola, and Nestlé began to invest heavily, launching products and acquiring existing brands. This helped the market nearly double from USD $450 million in 2001 to $850 million by 2005 (market size of canned and bottled RTD coffee from 2001 to 2015. Statista.com. 2017, February). 

By 2013, the market was valued at $1.5 billion (per Nielsen) and was still exhibiting decent growth rates. But change was in the air. Consumers were becoming more health conscious and seeking alternative canned or bottled coffees that offered less sugar, less dairy and more coffee-forward flavour. Enter cold brew. What many predicted to be a passing fad quickly exploded into a multi-million-dollar segment of the category that transformed the RTD coffee landscape. 

Cold brew has proven itself to be more than just a fad and has gained market share currently at over 20% of the total RTD coffee market. In just ten years it has gained nearly a quarter of an entire category. In fact, in recent years we have seen multiple variations: flavoured, nitro, dairy alternatives and most recently the explosive growth in multi-serve (32 ounces or above) cold brew coffee. 

What does the future hold? As consumers become increasingly educated about coffee and interest in new products grows, we expect to see impressive year-on-year growth and – importantly – increased opportunities for brands. Here are three trends I think you should keep an eye on: 

1. Multi-serve momentum carries on. Multi-serve coffee has been on the market for a decade, but its popularity exploded during the pandemic. As consumers have begun to realise they can get great coffee at an affordable price to enjoy at home, expect this segment to see even more growth in the coming years. 
2. Natural energy will continue to steal share. With younger consumers becoming increasingly proactive over their health and wellness, they are turning to more ‘natural’ products for cleaner ways to consume food and beverage. This creates an opportunity for more coffee-based ‘energy’ drinks to steal share from the traditional products in this market. 
3. Private label potential. Private label coffee is sometimes equated to lesser quality. Yet consumers have started to see the potential across categories in private label and coffee is no exception. As shoppers become increasingly cost-conscious and aware of the premiumisation of private label coffee, they will start to seek out these products to fill a gap as a cost-effective solution. 

• Stacy DeMars is marketing manager for Finlays Americas, a division of Finlays, a leading independent B2B manufacturer and supplier of tea, coffee and botanicals.

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As part of its annual Global Beverage Trends Report, B2B tea, coffee and extracts supplier Finlays has outlined five key trends that are predicted to impact the beverage industry over the next twelve months (and beyond). Finlays’ top global beverage trends for 2024 are:

• Fast Fad-sion — the ‘fad’ trend cycle in consumer behaviour represents the rapid rise and fall of popular trends, often driven by social media and influencers. From viral coffee concoctions (remember Dalgona coffee during pandemic lockdowns?) to ‘the next big ingredient’ in wellness, consumers embrace and move on from these trends swiftly. Finlays notes this presents both opportunities and challenges for beverage companies, which must stay nimble and be ready to innovate and adapt to ever-changing consumer preferences.
• Hyper Targeted Health — technology and data offering customized health solutions have revolutionized consumers’ attitudes to health and personal wellbeing. Individuals now have access to precise insights and recommendations tailored to their unique needs, from personalized nutrition plans to fitness routines and optimising mental performance. In the beverage sector, consumers can receive personalized tea blends and coffee roasts, utilizing data-driven recommendations to meet their health goals. (This also includes customizing additives, especially dairy-free ones such as almond milk and oatmilk.) “This empowers individuals to prioritize a holistic approach to their wellbeing, incorporating healthy beverages into their routines in place of traditional tablet-based supplements.”
• Statement Spending — within this trend, “consumers’ personal identities and values influence their purchasing decisions and shoppers seek products that align with their self-image and beliefs. For example, “individuals opt for artisanal, locally sourced coffees to showcase their support for sustainability and small-scale producers. While those seeking a health-conscious image may gravitate towards organic smoothies and wellness teas.” To cater to this trend, Finlays says brands must focus on authenticity, sustainability, and individual expression.

•  Need for Speed — in the beverage industry, simplified customer payment processes are gaining momentum. “Coffee shops are using mobile apps to allow customers to order and pay in advance to reduce wait times, and consumers can get craft beer and speciality coffee delivered directly to their door via subscription services.” It’s no longer just the quality of a product which will win a brand the edge over its competitors, it’s also the convenience and speed of its delivery. Finlays believes brands can stay ahead by adopting innovative solutions that reduce spending friction for consumers – whether that’s greater access to products online, ease of delivery or speed of preparation.However, Matthew Barry, senior beverages analysts has spoken on several occasions about the path coffee shops must take following the pandemic and amid concerns of an impending recession (which, thankfully, keeps getting ‘pushed back’): they must either offer speed/convenience or experience. While many consumers want to ‘get in and get out’ with their coffee or tea (hence the rise in mobile orders and shores retrofitting their interiors to increase space to accommodate the growing number of mobile orders), others want an elevated in-store experience either through enhanced offerings, the look, feel and ‘vibe’ of the store, and of course, superior customer service.
• Actively Green — in today’s consumer landscape, brands must adopt proactive sustainability strategies that reflect increasingly green customer demands, which is certainly not ‘new news’. This has shifted from merely ‘reducing impacting’, to becoming ‘zero impact’ or even promoting regeneration/carbon negative. Finlays explains that collaborating with suppliers that offer full supply chain transparency is crucial for understanding environment impacts, gaining consumer trust and promoting environmental causes. “Effective communication of ethical credentials, encompassing charitable initiatives and transparent metrics such as carbon output, is essential to resonate with today’s conscientious consumers.”

Commenting on the report, Finlays’ director of strategy & insights, Sian Edwards, said: “The beverage industry shows no sign of slowing down. Health, sustainability, and the thirst for innovation continue to be driving forces behind category development and high rates of launch activity. Our top trends for this year highlight the need for beverage operators to tune into consumers and be highly reactive to their needs. More than ever, working with trusted partners who can provide support for innovation is vital to accessing these high growth opportunities.”

To download Finlays’ full Global Beverage Trends Report 2024 click here.

I wish everyone a healthy new year filled with joy, peace, prosperity and certainly lots of great coffee and tea! Cheers!

• Vanessa L Facenda, editor, Tea & Coffee Trade Journal.
  Keep in touch via email: vanessa@bellpublishing.com Twitter: @TCTradeJournal or LinkedIn: Tea & Coffee Trade Journal

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The sale was first announced in May 2023, with Finlays selecting Browns Investments PLC as the approved buyer based on its strong legacy of guiding its tea estates to continued growth, but also its focus on doing so sustainably while supporting its workforce and local communities.

James Finlay Kenya is a grower, manufacturer and supplier of Kenyan tea. It covers a total self-contained area of 10,300 hectares, including 5,200 hectares of tea fields over nine tea estates. The sale includes all parts of James Finlay Kenya Ltd except the Saosa tea extraction facility which will remain under Finlays’ ownership and will become known as ‘Finlays Extracts, Kenya’.

Headquartered in Colombo, Browns has a proud heritage in operating plantation businesses, owning Maturata Plantations, Hapugastenne Plantations PLC, and Udapussellawa Plantations PLC. It is one of the largest tea producing companies in Sri Lanka consisting of 49 individual estates that stretch across an area of over 30,000 hectares and employs over 10,000 individuals.

As part of the sale agreement, Browns and Finlays have mutually agreed to acknowledge the long-standing support of the local community by offering 15% of shares in James Finlay Kenya for public sale through the Kipsigis Highlands Multipurpose Cooperative Society.

James Finlay Kenya, which will become known as ‘Browns Plantations Kenya’ in due course, is Brown’s first investment in the Kenyan tea industry which it sees as an exciting opportunity for growth. In December 2021, Browns acquired Finlays’ Sri Lankan tea estates business, which has gone from strength to strength, demonstrating Browns’ successful commitment to sustainable growth.

Finlays has a long history in Kenya and is continuing to invest in the country through its continued ownership of the Saosa tea extracts facility, and its Kenyan tea sourcing and packing operation James Finlay Mombasa. Saosa manufacturers a range of tea extracts and aromas, adding significant value to the Kenyan economy.

Kamantha Amarasekera, CEO of Browns Investments PLC said: “We’re delighted to welcome all members of the James Finlay Kenya community into the Browns family. It’s an amazing business, powered by an incredible community, and superb growth potential which will not just benefit the community, but the Kenyan economy at large.”

James Woodrow, group managing director of Finlays said: “James Finlay Kenya has played an enormous role in Finlays’ success story over the years. In Browns Investments, the JFK community has a conscientious new investor with a bright and exciting vision. We will always have a very close relationship with ‘Browns Plantations Kenya’, and we continue to invest in Kenya through both Saosa, our tea extraction facility, and through James Finlay Mombasa. While this is the end of an era, we’re delighted that 15% of shares in James Finlay Kenya will be owned by members of the local community.”

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Having experienced explosive popularity over recent years, cold brew coffee is now leading the next wave of coffee culture. In the United States, the cold brew market is now valued at $2.3 billion, growing by 213 percent since 2016 (GlobalData Plc, 2020). Meanwhile in Europe, cold brew is the fastest growing segment in RTD/Iced Coffee, with the United Kingdom becoming the fastest growing cold brew market, forecast volume growth of 10.5 percent between 2021-2025 (GlobalData Plc, 2021; Total RTD/Iced Coffee Market, Global Beverages Databook 2022).

Cold brew’s rapid ascent may in large part be down to its distinctive ability to meet consumer demands for convenience, health and premium flavour. With 83 percent of consumers expecting innovative flavours and new experiences in convenient grab-and-go formats to fit in with their busy lifestyles, cold brew can help beverage brand owners meet these key consumer trends (swnsdigital.com).

Demand for Premium Flavour

Unlike other coffee extracts, cold brew is made by slowly steeping coffee in ambient or cold water for extended periods of time. This gentle process extracts the superior flavours from the grounds, without using heat or pressure. The final product has a smooth, barista quality, rich flavour with a naturally sweet taste profile, similar to genuine roast and ground coffee. Cold brew is also perceived to be up to 67 percent less acidic than traditional hot brew and iced coffee, thus meeting consumers’ growing thirst for a more unique sensory experience (Mintel 2020).

The genuine roast and ground flavour has won favour with even the most discerning of coffee drinkers, being most commonly described as “smooth” and “indulgent” (Kerry 2018/foodnavigator-usa.com). This rich flavour profile has resulted in cold brew becoming a regular purchase for many consumers, overtaking iced coffee consumption (Datessential, SNAP Food Profile: Cold Brew, March 2018/GlobalData Plc 2021).

Due to its naturally sweet and rich flavour profile, one of cold brew’s unique appeals is that it can be drunk black without the associated bitterness of hot brewed coffee. This is particularly the case in Europe, where black is the most popular variety of cold brew, accounting for 69 percent of new product launches, highlighting the importance of coffee quality (Mintel GNPD, 2021).

Additionally, nitro cold brew offers a completely unique coffee experience. Infusing cold brew with nitrogen creates a silky smooth, velvety texture with enhanced sweet chocolatey notes, and a foamy head that resembles a Guinness. With its beer-like appearance, nitro taps into craft brewing trends and appeals to coffee lovers seeking a premium, unique beverage experience.

Image: H Webster

Convenience and Affordability

While consumers are seeking more premium beverage experiences, they still want their drinks to be affordable and fit in with their busy lifestyles.

Propelled by the pandemic, multi-serve formats have been gathering favour among consumers. Designed for at home consumption, bigger pack sizes and multipacks drive better value perception and also offer convenience and flexibility.

Multi-serve formats make it easy for consumers to enjoy cold brew at home, without the challenges of trying to brew it from scratch. Concentrate formats in particular can be diluted and paired with anything from oat milk to ice cream, offering consumers a completely customisable caffeine fix.

Healthier Beverages Without Sacrificing Taste

Research shows that 62 percent of consumers gravitate towards healthier beverage alternatives, seeking out caffeinated drinks with clean labels, free-from claims, and perceived health benefits such as improved mood, heightened concentration, and increased energy (Global Consumer Survey, 2020).

Cold brew is natural sugar and calorie free. Because of its naturally sweet taste profile and low acidity, it does not need heavy amounts of sugar or flavours; a little goes a long way, enabling beverage brand owners to tap into the demand for clean-labels, free-from and low-sugar claims.

Millennial and Gen Z consumers in particular are adopting a more holistic approach to health and are reaching for beverages that combine elevated health credentials, flavour and indulgence.

The versatility of cold brew allows beverage brand owners to diversify their product ranges and appeal to these younger health-conscious consumers, of which 40 percent of Gen Z consumers prefer their coffee in chilled, ready-to-drink formats like cold brew (Technomic Generation Report, 2018). The flexibility of ready-to-drink offerings and multi-serve formats, means that brand owners can cater to consumers’ varied preferences and, ultimately, tap into the next wave of coffee culture.

• Siân Edwards, group insights manager at Finlays, a leading B2B supplier of tea, coffee and botanicals, headquartered in London, UK. She is responsible for understanding the trends and dynamics that drive the global market for tea, coffee and botanical ingredients.

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The private label tea and coffee market in Eastern European and Nordic states is steadily growing this year, thanks to a stable demand and the ongoing expansion of portfolios by leading local players. 

In contrast to Western Europe, where the tea and coffee private label segment has been actively developing since the 1980s, most Eastern European states have registered significant market growth and massive launches of new, private label products in recent years. The same, however, cannot be said for the Nordic states, where the popularity of private label tea and coffee brands, produced by leading local retail chains has always been high. 

One such brand is Norwegian chain, REMA, which is implementing its REMA 1000 private label strategy that involves actively developing its private label brands in both the Nordic states and other Eastern European states. REMA has significantly expanded its portfolio of private label tea and coffee brands over the past few years, and most of analysts expect the company will continue to develop this segment. 

REMA’s current list of tea and coffee brands is wide and includes some iconic brands in the Nordic market. An example of this Kolonihagen, a well-known Norwegian coffee and tea private label supplier within REMA, which in recent years has strengthened its positions both in the domestic market and overseas.  

Arnt Ove Dalebø Englund, co-founder and director of innovation at Kolonihagen, said that Kolonihagen recently entered the premium tea category with a range of four variants. “This is part of the REMA 1000 private label strategy, having alternatives — [opening price point] (Prima), mid-range (R) and now finally also covering the premium through the organic Kolonihagen brand.” He said that this series of teas is nationally distributed and is present in all 650 REMA 1000 stores in Norway. According to the size of the category [in each store] (both shelf space, rotation and turnover), there are four premium products at the moment. 

“We do not have plans to expand the [number of products, [instead] bringing in new flavours [as a] one in-one out. Additional value propositions are also highly relevant and part of a continuous strive to do things better. That is the core of our brand,” said Dalebø Englund. “One example of this is to put regenerative principles (and certifications) on top of the organic standards. Seasonal products are [also always being considered].” 

Dalebø Englund expects Norway’s private label market and that of other regional countries as well as Eastern Europe will show stable growth rates in years to come. “It’s hard to answer this on behalf of competitors in FMCG market in Norway, but in general, the private label category share is lower than that of other Nordic and European countries. [I predict] that moving from 20 percent to between 40 and 50 percent is likely in a two to three-year period, and this will probably be even higher for the tea and coffee category. 

Other major players are also considering accelerating their expansion both in the market of Nordic states and Eastern Europe. 

Bethany Physick, marketing manager at Finlays Europe Extracts, shared that across Europe, Finlays is continuing to help European brand owners tap into the health and wellbeing trend with its Just Add Water solution, a range of sachets containing tea and botanical powder blends that are designed to meet consumers’ desire to drink functional water on the go. “Later this year, Finlays’ new cold brew coffee extraction facility will open in the United Kingdom bringing an exciting range of cold brew coffee extracts to the fast-growing European market,” she said. “The coffee extraction facility will produce for branded and [private]-label suppliers in the UK and European and Eastern European retail and hospitality sectors.” Physick noted that Finlays is already a global leader in cold brew in the United States, and it expects growth in the category in the European market. 

Regarding future market prospects, Sian Edwards, insights manager, Finlays Group, explained that tea in all formats offers major potential in Eastern Europe, in terms of the market scale and growth prospects. “There are big markets, many of which are fast premiumising, as consumers seek a wide range of healthy, functional and indulgent beverages. The ready-to-drink (RTD)/iced tea market was valued at USD $2 billion in 2022, and has yet to reach maturity, with a forecast of 18 percent CAGR between 2022 and 2027, to reach an estimated market size of $5 billion in 2027.” Furthermore, he noted that RTD/iced tea is being bolstered by consumers seeking healthy and innovative alternatives to traditional soft beverage categories. 

“Hot tea and infusions are a more mature category for consumers in Eastern Europe. The category was valued at USD $9 billion in 2022 and is expected to exceed $10 billion by 2027 – with a 2 percent CAGR,” said Edwards. “Per capita consumption in the region is particularly high, with tea established as a habitual, daily necessity in many Eastern European markets. There is continued consumer demand for both RTD/iced tea and hot tea and infusions, and we see private label continuing the play a valuable role in this market growth.” 

PL still strong in Western Europe 

The private label market is traditionally within the interests of some major Western European players. 

Jens Schneider, managing director of Kloth & Köhnken Teehandel GmbH, one of leading tea suppliers in Europe, said the company has big plans for the further expansion this year. “There is an ongoing demand for organic and the wish for a sustainable supply chain throughout the world. The Nordic states, and Eastern Europe are markets we have good contacts in for many years, and we [see] steady, growing consumption [in both]. 

Still, according to Schneider, after three years of continuous challenges with consequential influences in sales channels, filled stocks and market movements, “it is currently difficult for the company to predict what trend or demand it really has in the market. [However], the focus on and trends toward organic, transparency and sustainable sourcing will be ongoing and rising.” 

PL optimism fades in the Nordics 

Representatives of some leading Nordic and Northern European retailers are less optimistic, regarding further prospects of the private label market, particularly in the coffee segment. Juhani Haara, a senior sales manager, S Group, a Finnish retailing cooperative organisation, said that private label, the coffee segment in particular, has decreased. “According to our sales data, there is a clear decline in private label coffee sales volume – a nearly 19 percent drop – this year. The reason for this is the increased campaigning with branded products both in S-Group and in the market. On the other hand, private label tea sales volume has increased significantly, by about 25 percent, during this year,” she said, adding, “this is certainly influenced by the economic situation. We expect this trend to continue towards the end of the year.” 

Haara said that new private label products have been added to the tea selection this year: two Kotimaista herbal teas and four different X-tra products. “There hasn’t been any promotion in tea products, but our own PL products are remarkably affordable compared to brands. This year there have been no private label novelties in coffee yet, but we are developing our selection.” 

Most independent analysts also do not expect sharp market growth rates in years to come. Julija Poliscuk, a senior consultant at global market research firm, Euromonitor International, believes that private label tea and coffee items are not growing as quickly as in other food and drinks categories. “The slow dynamics in current value and flat or declining volume share can be attributed to these products’ association with rituals and thus, the demand for high-quality offerings, reflecting the cultural and image significance they hold.” 

She said that in 2022, the current value share of private label in Nordic countries for coffee and tea increased slightly, reaching 9.3 percent. “This cooling trend aligns with stabilised consumer financial confidence and desire to spend after the challenging years of Covid-19. Notably, the volume share of retailers’ own brands in coffee rose by 0.7 percentage points, reaching 11.8 percent in 2022, signaling better performance compared to the overall coffee market in Norway, Sweden, Finland, and Denmark combined,” Poliscuk explained. “In Eastern Europe, historically known for brand-oriented preferences in tea and coffee, the current value share declined by 0.2 percentage points in 2022, reaching 5 percent. Coffee’s volume share was 7.2 percent (versus 7 percent in 2021), which pales in comparison to the strong growth of discounters and retailers’ own brands’ performance in other categories.” 

She added that many Eastern European markets offer big promotions for national tea and coffee brands, which reduces price gap between those products and private label ones. This market situation, according to Poliscuk, favours branded products. “When the price difference is marginal, consumers opt for familiar brands, purchasing them on discount. This hampers the development of private labels in tea and coffee in the region.” 

Poliscuk said that the hyperinflation in Eastern Europe, did not boost private label in 2022, as consumers inertially continued their ‘revenge’ spending after the Covid-19 period. “However, 2023 might bring a different outcome as consumers already started downtrading, potentially making private label a more attractive option. The level of sophistication and price segmentation within private label is more prominent in countries with well-developed modern grocery retail.” Additionally, recent launches of private label coffee and tea products in the Nordics target audiences seeking added value, which leads to the appearance of more specialty coffee (eg, specific bean origins). “Retailers are also expanding their assortment to align with sustainability strategies, offering more organic teas and coffee in modern, environmentally friendly packaging.” 

Per Poliscuk, private Labels primarily are considered ‘anti-crisis products’, allowing consumers to save or maintain their preferences without compromising on quality. The hyperinflation in Eastern Europe during 2022 and continuing into 2023 will impact consumer behaviour and drive the surge in private label adoption. As people seek cost-cutting measures, price increases in coffee and tea will push them to revise their previous preferences. “While Private Label won’t dominate the hot drinks market due to the nature of these products, its expansion alongside aggressive discounters will positively influence retailer’s offerings.” 

In Nordic countries, Poliscuk said the volume of private label hot drinks is expected to stagnate, even decline, but the value share will increase alongside the price. More premium coffee and tea aimed at quality seekers eager for better prices will emerge. “More caffeine-free and health-improving teas are expected, while coffee offerings will focus on specific beans and roasting variations. Retailers in these Western countries have the expertise to develop premium store brands based on specific needs like sustainability or fair trade.” 

Despite the impact of war on logistics chains and prices, with a small private label market and a decreased national brands presence, Eastern Europe expects a stronger demand than ever before for retailers’ own brands. 

• Eugene Gerden is an international freelance writer, who specialises in covering the global coffee, tea and agricultural industries. He worked for several industry titles and may be reached at gerden.eug@gmail.com. 

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Efforts at Origin

Buencafé

In today’s world, organisations are being called upon to strengthen business relationships and establish connections that support the well-being of both the planet and its people. Buencafé, as the industrial factory of the Colombian Coffee Growers Federation (FNC), specialises in the production of 100percentColombian freeze-dried coffee, with a mission to promote the well-being of the country’s 548,000 families that make their living growing coffee. As part of its 50thanniversary celebration, clients received a unique invitation: an art collection inspired by the Coffee Cultural Landscape that encourages them to learn about the social and environmental projects in which Buencafé invests 100percentof its profits and to get involved in them.

Artwork inspired by the Coffee Cultural Landscape highlighting Buencafé’s social and environmental projects. Image credit: Buencafé

The project initiatives encompass various areas including education, water, reforestation, nutrition, and infrastructure, all of them aligned with the United Nations’ Sustainable Development Goals. In the realm of education, the FNC has created an inclusive and high-quality model that enjoys global recognition, tailored for rural youth. With regard to environmental conservation, technologies that protect water usage and access are developed and implemented. Moreover, reforestation programs that empower women in their commitment to environmental preservation are promoted. Last but not least, social initiatives focused on food security and infrastructure aim to bring wellbeing to coffee growers and families in rural areas. Organisations like the FNC aim to be bridges bringing sustainable value into the coffee industry. (Learn more at https://www.buencafe.com/sustainability-initiatives/.)

Global Coffee Platform

The Global Coffee Platform (GCP) has officially entered a new era of strategic collective action for coffee sustainability, when in June 2023,a leading group of eight member companies backed the initial round of funding for the platform’s new effort: GCP 2.0.

Underpinned by an ambitious goal of transformational change on the prosperity of more than one million farmers in more than 10 countries by 2030, the combined USD $1.5m kick-off funding from JDE Peet’s, Melitta Group, Mother Parkers’ Coffee & Tea, Nescafé, Nespresso, ofi (olam food ingredients), Rabobank and Westrock Coffee Company, is a response to the bold challenge laid out by GCP for the entire sector to ramp up collective action to fully unlock coffee’s potential as socio-economic motor and a nature based climate solution.

GCP Collective Action Initiatives in countries such as Brazil, Vietnam and Uganda have already shown that alignment on priorities and building on local knowledge and structures allows efficiency gains and business critical collective solutions. GCP 2.0 scales these successful models of co-investment through entrepreneurial country programs, developed with multi-stakeholder Country Platforms in initially six countries. Thanks to global and local co-investments, and larger public agencies and philanthropic co-funding, GCP 2.0 aims at ensuring the viability of sustainable coffee while delivering measurable progress on living income towards the GCP 2030 Goal.

Annette Pensel, GCP executive director, said the kick-off funding enables GCP to grow, attracting new talent and further revenue, including public co-funding that is key to accelerate the first six entrepreneurial country programs to investment-ready levels and support the development of aligned measurement in the form of GCP Country Reports. “GCP Members are united in the belief that coffee sustainability is a shared responsibility. We are grateful that these eight GCP Members have stepped forward with this initial round of co-funding which is crucial to generating adequate level of investment and change.”

The GCP 2030 Goal aims to close the living income gap by at least 25 percent for more than one million smallholder farmers in more than 10 countries by 2030. The focused local collective actions in coffee producing countries together with local stakeholders, are complemented with a global drive to increase sustainable sourcing.

“Collective action is essential to not just ensuring compliance but also accelerating measurable sustainability at scale to bring solutions to over one million smallholders who grow the coffee we all love,” explained GCP board chair, Carlos Brando.

Kloth & Köhnken Teehandel GmbH

Kloth & Köhnken Teehandel GmbH offers fine teas, sophisticated formulations and flavoured/scented tea innovations and has espoused sustainable values since its formation. It believes that sustainable actions cannot be decreed, rather it is a learning process.

FairBioTea (fairbiotea.de) is a private sector initiative focused on the development of healthy and sustainable, fair and ecological tea production operations and tea industry. Through its FairBioTea development partnerships, Kloth & Köhnken actively supports Chinese tea farmers who are growing sustainably and improving their quality management.

Since 2007, together with selected tea gardens, Kloth & Köhnken has been helping to make farming more ecological, transparent and sustainable. The company is especially proud of its longstanding cooperations in tea-producing countries where its partners dictate the pace at which they adopt environmentally friendly practices. Through FairBioTea, Kloth & Köhnken establishes a fair and reliable framework for transparent, sustainable tea production, culminating in a premium product.

Image: Kloth & Köhnken Teehandel

Most teas Kloth & Köhnken purchases are certified (Rainforest Alliance, Fairtrade, organic and Fairbiotea). Its certified products exceed the EU organic regulations, and their cultivation also encompasses land use and nutrient cycles, which in the long term will help preserve soil fertility.

Additionally, for more than two years, Kloth & Köhnken’s sustainability team has been working to implement all requirements for the new German due diligence law and for the European regulations to come. This includes the Code of Conduct, which defines internal company requirements as well as minimum standards for environmental, social and ethical obligations. The Code of Conduct is the basis for developing a business relationship with Kloth & Köhnken, which supports companies that take care of their business sustainably, treat their employees well and protect the environment.

Furthermore, under the motto ‘K&K Goes Green’, the topic of sustainability will become more of a focus for Kloth & Köhnken and internal processes will be optimised and made more efficient. This includes asking all employees for suggestions and ideas and raising awareness for a more sustainable way of living.

Neumann Kaffe Gruppe (NKG)

We all know the coffee industry is facing major challenges. But we are convinced that joint efforts can lead to the right path. To embark on this journey and live up to our responsibility, NKG has developed our NKG Responsible Business Program (RBP), which builds the framework for our group’s sustainability efforts.

To achieve the goals of the RBP and secure the future of coffee, we undertake a variety of efforts within NKG and in partnerships with NGOs, governments, customers, banks and others. Our efforts start where our beloved coffee comes from and where we most urgently need to fight for its future: on the ground. Through our global network covering 26 countries, NKG’s diversified sustainability efforts reach down to farm level to create sustainable supply chains benefitting everyone contributing to our daily cup of coffee. More than 250 employees worldwide work on solutions to tackle global as well as local challenges.

We believe that there is no one-size-fits-all solution for sustainability! Therefore, our efforts range from global initiatives to local projects. Our global initiatives are NKG Verified, our program for sustainable coffee supplies to green buyers, and NKG Bloom, our program for sustainable livelihoods. Through NKG Bloom, we identify and provide the services producers need to address their key challenges and make coffee farming an attractive business for them and their families. We invite you to share your thoughts with us! Together, we must take responsibility today and build a sustainable coffee industry for tomorrow.(Contact our Sustainable Business Unit in Hamburg, Germany: sustainablebusiness@nkg.coffee.)

Sustainable Business Practices

Finlays

As sustainability continues to rise up the agenda in the tea and coffee industry, Finlays is sharing lessons it has learnt from its recently-concluded five-year sustainability strategy. A leading global B2B supplier of tea and coffee ingredients, Finlays is aiming to encourage healthy debate within the tea and coffee world about the challenges of delivering against sustainability commitments in the industry.

The lessons, compiled by group head of sustainability Joe Yalley-Ogunro, reflect candidly on Finlays’ Sustainable Future strategy. While the report details strong progress in some areas, such as achieving 100 percent traceability in tea, 97 percent traceability in coffee, and reducing Scope 1 and 2 carbon emissions by 34 percent since 2018, it also underlines areas where Finlays fell short of its targets.

“Globally, the subject of sustainability has never had a higher profile, but the sustainability challenges our industry faces have also never been more complex. As we start to deliver our new sustainability strategy, we hope that sharing what we have learnt –and how this is shaping our future approach –is useful to others who are facing the very same challenges,” explained Yalley-Ogunro.

Rekerdres & Sons

Rekerdres & Sons is a third generation Dallas-based boutique insurance agency specialising in insurance for the commodity trade. Over 15 years ago, ‘Reksons’ saw a correlation between lower client losses and clients conducting soft commodity trading under sustainable principles. To test this, Reksons led a two-year loss ratio study, in which it confirmed that careful and motivated origin producers applying the principles of counting, training, and tracing from the interior outward radically reduced losses such as water, contamination, theft, and infestation. Thus, sustainability in the coffee supply chain actually leads to an improved state of risk which mutually benefits both merchant clients and insurance companies.

Rekerdres offers financial recognition for businesses that have adopted sustainable AG practices. Image credit: Rekerdres & Son

Due to this discovery, we developed our ‘Green Dividend’ Program in 2008. The Green Dividend is a financial recognition for merchants who have adopted sustainable AG operations within the tenants of sustainability. Thus, participants must implement programs where they train their producers, count their stocks, and track their coffee as it moves through the supply chain. Participating policyholders then designate a foundation or beneficiary to receive the annual dividend from Reksons and our participating underwriter with the intent to further improve sustainability. As the Green Dividend encourages best practices, which thus reduces client claims, everyone comes out on top.

Interested companies should contact Rekerdres & Sons to find out more about our exclusive “Green Dividend” and how to better both the planet and your business.

Sustainable Machinery & Packaging

Modern Process Equipment 

MPE, a global leader in dry bulk solids conveying solutions, has a new line of advanced power-saving innovations called Green Knight Energy Reduction Technology (ERT) for Chain-Vey®tubular drag conveyors. MPE’s R&D teams developed new software and sensor integrations to reduce the energy consumption of Chain-Vey conveyors. The Chain-Vey line of Green Knight ERT engages automatically and preserves the same rate of product flow. No reduction of conveyance throughput is experienced by operators. In addition to the electricity savings, the ERT reduces system wear on conveyor components.(Visit mpechicago.com for more information.)

Scolari

The growing environmental concern has also involved the coffee industry. Besides sustainable cultivations and environmentally friendly packaging, we need to put more effort into reducing CO2 emissions when producing coffee by abandoning fossil fuel in favour of renewable sources.

Scolari Engineering, based in Milan, Italy provides fully integrated coffee roasting manufacturing systems for consistent quality and lower production costs. The company’s e-Roaster is the latest generation of hybrid roasters moving to renewable energy, benefiting the environment. Moreover, it increases efficiency thanks to the smart heat recovery systems based on the concept of green coffee preheating synchronized with the roaster cycle.

The planet is increasing the share of electricity produced with renewable sources (photovoltaic systems, wind farms, and hydropower plants). And in some countries, the amount of electricity available is already higher than that of natural gas. Furthermore, hydropower sources are undoubtedly the cleanest in terms of pollutant emissions.

Scolari’s e-Roasters use electricity alternatively to natural gas during the first heating stage, thanks to a set of heating elements. The result is a significant reduction in carbon energy released into the atmosphere. In addition, using electricity from renewable sources allows us to be more sustainable. Effects that we add to our sustainability report.

Scolari preheater Image credit: Scolari Engineering

In terms of consumption, Scolari’s e-Roasters are fitted with a heat recovery system for preheating green coffee. This technology reduces 25 percent of the system’s energy needs without affecting quality. Fewer emissions, less consumption, more efficiency. Moreover, the recovered heat can be used in other processes such as in-absorption refrigerators to quickly cool toasted coffee beans and preserve the aroma, or in buildings’ heating and air conditioning systems.

The e-Roaster technology will make Scolari’s hybrid roasters stand out in the future. It can also be used for retrofitting existing systems to reduce their environmental impact and produce coffee in a much more sustainable way.(For more information contact, visit: Scolarieng.com.)

Tecpacking Group Co, LTD

Packaging plays a vital role in the sustainability of the tea industry. It is crucial for tea companies to explore alternative packaging solutions that are eco-friendly, recyclable, and reduce waste generation.

Tecpacking has responded to the sustainability challenge by introducing its revolutionary Eco Mesh product. The EcoMesh is an innovative packaging solution designed specifically for the tea industry. It combines the benefits of sustainable materials and a functional design to provide a superior packaging option. The Eco Mesh is made from biodegradable and compostable materials. This ensures that the packaging does not contribute to the accumulation of plastic waste and reduces the environmental impact associated with traditional packaging materials. (For more information, visit: tecpacking.com.)

Tecpacking has introduced its Eco Mesh, designed specifically for the tea industry. Image credit: Tecpacking

Certification

Demus SpA

Demus SpA has been operating since 1962 in the field of decaffeination, dewaxing, vaporization and detoxification of green coffee, as well as in the production and sale of natural raw caffeine.

Since its founding, many things have changed, not only in company terms with industrial expansions, new decaffeination methods (water process), analysis laboratory and acquisition of new neighboring areas; the market has really changed, moving towards sustainability strategies, with the need to improve environmental performance and safety. With this in mind and in line with market demands, Demus SpA began its certification process in 1999 with the obtaining of the following certifications: ISO 9001 -Quality Management System, ISO 14001 -Environmental Management System, OHSAS 18001 which was transformed into ISO 45001 -Occupational Health and Safety Management Systems, and FSSC 22000 -Food Safety Certification, ISO 50001 -Energy Management Systems.

Through the certification processes, Demus has developed a concept of:

• Corporate environmental sustainability: we contribute significantly to combatting environmental challenges and climate change, reducing consumption and pollution emissions, using renewable energies (a photovoltaic system was recently installed), limiting water consumption (important in this time period) and carefully disposing of waste. Furthermore, circular economy solutions are adopted as evidenced by the “Best performer of the circular economy” promoted by Confindustria, the main representative organization of Italian manufacturing and service companies;
• Social sustainability: dealing with occupational safety, workers’ rights and equality and social justice. Thanks to the voluntary Rainforest Alliance certification which deals with sustainable agriculture and has allowed Demus to create a ‘sustainability policy’ with the implementation of a system based on meritocracy and equity, without differentiation of gender, origin and religion.

The religious theme is also addressed with the Halal religious certifications, for countries of Muslim origin and Kosher for countries of Jewish origin. For Demus, the well-being and inclusion of the personnel working in the company is an important topic in which to make investments. For this reason, at the beginning of this year, Demus SpA joined the WHP program (Workplace Health Promotion), promoted by the World Health Organization, the implementation of effective good practices in the field of health promotion. Various initiatives have already been implemented such asatraining campaign on health and eating and a campaign for the renewal of tetanus vaccinations promoted.

Economic Sustainability: which concerns the ability of an economic system to produce income and work in a lasting way and is the basis of sustainable development. Demus also complies with this aspect with investments in innovation, technology and digitisation of processes, applying a very punctual policy on the price of the decaffeination service, always taking into consideration the current economic situation.

• Aubrye McDonagh Leigh

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TikTok’s 1.5 billion users make it a hugely influential tastemaker in the beverages space, particularly for Gen Z. And not just because of the volume of global users – but because TikTok is increasingly the platform Gen Z uses as a search engine over more traditional services like Google. In short, TikTok simply can’t be ignored. 

The at-home revolution 

With millions of creators sharing aspirational daily routine videos, how-to instructionals and recipes, we’re seeing tea and coffee beverages being prepared by consumers in highly innovative ways, which would previously only have been attempted in foodservice channels. From frothy matcha + vanilla oat milk lattes to rose milk tea with Lindt chocolate balls, these videos reference health trends, flavour innovation and moments of indulgence for consumers seeking to elevate their everyday consumption experiences.  

These videos are inspiring an at-home revolution, with consumers replicating the recipes, and developing new products of their own. What seems like light-hearted fun with beverages could indicate a major shift in consumer behaviour post pandemic and the resulting economic downturn.  

During Covid-19 we saw major growth in the trend for ‘in-speriences’, with consumers seeking new product experiences from the confines of their own home. This led to a surge in creativity, and at-home replication of typical out-of-home serves. As consumers look to tighten their belts, affordable indulgences such as coffee and tea drinks at home offer cost-effective ways to treat themselves.  

Here are some of the trends that are demonstrating this shift:  

TikTok Trend #1 – At-Home Coffee Station 

ASMR-esque videos of TikTok users creating their own ‘coffee stations’ have received millions of views on the app. In a bid to create an indulgent space, replicating the out-of-home experience, these videos show users organising their cups and coffee ingredients – pods, flavoured syrups, sugar, honey etc, in an aesthetically-pleasing way, ready for their next coffee break. 

Many users link the need for a coffee station with the shift at working from home post-pandemic, demonstrating the continued need for products that create a treat and indulgent moment at-home. It’s also highlighting the importance of coffee products that are visually appealing. 

TikTok Trend #2 – Tea Bombs 

Tea Bombs – a blend of tea and botanicals contained within a dissolvable sugar shell – have proved a huge hit on TikTok with users falling in love with the cutes-y aesthetic. And it’s easy to see why – tea bombs bring a sense of theatre to the process of drinking tea, with the glittering orb melting away to reveal the tea and botanicals within.  

This is perhaps one of the most challenging at-home serves we saw users of the platform create but does demonstrate the lengths to which consumers are going to create the sense of fun and indulgence at home, while seeking a creative outlet. 

TikTok Trend #3 – Replicating Foodservice Recipes 

TikTok users are not immune to the financial concerns facing consumers around the world, many of whom are looking for ways to reduce their spending, while maintaining affordable indulgences, to make themselves feel good. This cost consciousness is driving the trend for videos replicating foodservice recipes at-home, using store-bought ingredients, and showing a comparison of the cost equivalent per recipe.  

Rather than see this as stealing share, foodservice operators and beverage brand owners can facilitate consumers looking to shift consumption by developing branded products designed for the retail space. Starbucks even has a whole section of their UK website dedicated to ‘make it at home’ recipes for many consumer favourites. starbucksathome.com/gb/recipes  

TikTok Trend #4 – Tea Lattes 

For many years, coffee has been the focus of out-of-home innovation, with foodservice outlets offering an exciting range of seasonal coffee flavours, different serve-styles and milks driving consumer intrigue. However, tea is having a moment driven, in part, by the phenomenal growth of bubble tea premiumising and modernising the tea-drinking experience out-of-home. 

These innovative serves have inspired creators to develop a wide range of tea recipes on TikTok ranging from tea lattes to homemade boba tea, which we expect to drive greater innovation and engagement in tea consumption out-of-home too. 

TikTok Trend #5 – TikTok as a trend monitor 

Picking just a few product trends from TikTok wasn’t easy and there is a staggering range of content being developed by innovative creators. It’s a rich source of ideas, and if these videos are anything to go by, our industry is heading in so many exciting new directions. But TikTok isn’t just a place for NPD inspiration, it’s also a place where attitudes are forged. Creators, often with a huge and dedicated following, can shape the worldview of their followers, and bring significant issues to the fore.  

One such topic is sustainability. Views of environmental content on TikTok have increased six-fold over the past year, and the top 40 climate-related hashtags have received 85 billion views in the last year alone (TikTok, 2022). Content creators are driving awareness, sharing ways to live more sustainably, and encouraging their viewers to become more involved in environmental issues.  

For the beverages industry, this could manifest in several ways – including an expectation that companies look to reduce waste, source products sustainably, and live up to ethical values. Brands and suppliers would be well-advised not to underestimate the importance of this trend for young consumers, and the power of capturing their admiration for delivering ethical, sustainable products.  

Whichever direction these trends take you in, there’s no denying that TikTok is an increasingly important place to understand how Gen Z is thinking about beverages.  

If you’d like to find out more about the trends and dynamics that are shaping our industry, why not download our Global Beverage Trends Report 2023? 

• Siân Edwards is Finlays’ group insights manager, responsible for understanding the trends and dynamics that drive the global market for tea, coffee and botanical ingredients.

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The sale, which will be completed over the coming months, will include all parts of James Finlay Kenya Ltd except the Saosa tea extraction facility. Saosa will remain under Finlays’ ownership and the business will continue to source leaf tea, timber and other services directly from James Finlay Kenya, meaning an uninterrupted service to existing customers.

Browns Investments PLC was selected as the approved buyer because of its strong legacy of guiding its tea estates to continued growth, but also its focus on doing so sustainably while supporting its workforce and local communities.

Browns is a highly successful diversified conglomerate and part of the LOLC Holdings PLC group companies which is one of the largest and most profitable listed corporation in Sri Lanka. Headquartered in Colombo, the company has a proud heritage in operating plantation businesses, owning Maturata Plantations, Hapugastenne Plantations PLC, and Udapussellawa Plantations PLC. It is one of the largest tea producing companies in Sri Lanka consisting of 49 individual estates that stretch across an area of over 30,000 hectares and employs over 10,000 individuals.

James Finlay Kenya is Brown’s first investment in the Kenyan tea industry which it sees as an exciting opportunity for growth. In December 2021, Browns acquired Finlays’ Sri Lankan tea estates business, which has gone from strength to strength, demonstrating Browns’ successful commitment to sustainable growth.

Throughout the sale process Finlays has at all times prioritised the interests of James Finlay Kenya as a business and its workers. As part of the sale agreement, Browns and Finlays have mutually agreed to acknowledge the long-standing support of the local community by selling 15% of shares in James Finlay Kenya to a locally-owned co-operative. Finlays has identified a preferred third party which it is currently in discussions with.

While the sale process is concluded, operations for James Finlay Kenya will be business as usual, and a full plan is under development to ensure a smooth transition with no customer disruption. On completion of the sale, Browns intends to continue to run the business as it has been operated until now, as a leading global supplier of Kenyan tea, under a new name. There will be no change in the employment arrangements for current employees of James Finlay Kenya.

Finlays has a long heritage in owning tea estates, however after a strategic review in 2022, it decided that a new strategic investor in James Finlay Kenya would continue to guide this unique business towards long-term sustainable growth for the benefit of the whole community and the Kenyan economy at large.

Leaf tea will continue to be a critical part of Finlays’ portfolio, in which it has a strong global presence across the UK, Sri Lanka, Dubai, Kenya, Argentina, the US and China. As a business, Finlays has also decided to place greater emphasis on growing its tea and coffee extracts business which it sees as offering particularly exciting growth opportunities for its global customers.

Finlays has a long history in Kenya, and is continuing to invest in the country through its continued ownership of the Saosa tea extracts facility, and its tea sourcing and packing operations in Mombasa.

Kamantha Amarasekera, director of Browns Investments PLC said: “We’re proud to be moving a business with such a proud heritage into a new phase of sustainable growth. James Finlay Kenya is an incredible business powered by an incredible community and it has an exciting future. We warmly welcome all members of the James Finlay Kenya team into the Browns family.”

James Woodrow, group managing director of Finlays said: “We undertook a rigorous process when identifying a buyer for this unique business, prioritising what was best for James Finlay Kenya and its community. Having seen first-hand Browns’ unwavering focus on supporting local people and their communities to thrive when acquiring Finlays Sri Lankan tea estates business in 2021, we have no doubt that Browns is the ideal strategic investor for James Finlay Kenya. We will continue to have a very close relationship with James Finlay Kenya and look forward to continuing to source tea from it and championing Kenyan tea and botanicals across the world.”

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1.       Consumer demand for natural and organic has accelerated

Consumers are drinking more natural and organic beverages, Finlays research shows, compared to two years ago. It seems that these mainstream trends continue to grow in appeal and have not reached saturation point, with one in ten 25–35-year-olds further increasing their already high consumption of natural and organic beverages.

“Consumers are seeking ‘clean label products’ such as those containing organic ingredients (18%), and free of artificial flavours or sweeteners (15%)”, Sian Edwards, group insights manager at Finlays, explains. “Beverage brand owners can tap into this trend by choosing ingredients that consumers perceive as naturally beneficial for their health, such as green tea, which contains naturally occurring antioxidants and catechins.”

2.     Boost for natural caffeine

This demand for natural beverages is driving major shifts in where consumers are looking for an energy boost. A third (33%) of Europeans are drinking more traditional sources of caffeine, such as tea and coffee, demonstrating the opportunity for these ingredients within the ‘clean energy’ movement. “It’s really interesting to see, from our research, that consumers are as likely to drink tea for an energy boost, as they are to drink energy drinks,” Edwards notes.

“Supply shortages of synthetic caffeine from China, the world’s largest exporter, has driven demand for natural sources of caffeine from tea and coffee,” explains Edwards. “The ‘health halo’ around coffee and the rising interest in its health properties are paving the way for beverage brands to innovate. For example, utilising cold brew coffee, a natural source of caffeine, and quality tea extracts, rich in naturally-derived antioxidants, to provide additional benefits.”

3.     ‘Hydration-Plus’ becomes major trend

Half of European consumers (48.4%) are drinking more water than they did pre-pandemic. But consumers are seeking more than just hydration, with one in five consumers (20.2%) looking for drinks with more than one benefit, increasing to nearly a quarter (24.1%) of consumers aged 35-55.

However, brand owners have to balance this with the need for good-tasting products – 16.8% of consumers are looking for healthy drinks without compromising on flavour. “Great taste is a major factor in encouraging that repeat-purchase”, Edwards explains.

4.     Functional beverages continue to gain momentum

Six in ten European consumers are more conscious of their physical health than pre-pandemic. “This is a major acceleration of the already well-established health and wellbeing trend,” Edwards explains, “and interestingly, this is even higher for older generations, demonstrating the broad appeal of products that tap into the health and wellbeing space.”

Consumers are looking for a wide range of functional benefits from their beverages, including energy-boosting (34%), relaxation (22%) and mood-boosting (22.6%). “This shows the huge scope for innovation in the beverage industry, relating to both physical and mental wellbeing,” Edwards adds. “Tea and coffee are well-established with consumers as natural ingredients that can be positioned as energising or relaxing.”

5.     Consumers willing to pay more for sustainability

Another major trend accelerated by the pandemic, over one in ten (13.3%) consumers have changed their drinking habits because they are more aware of the environmental impact of beverages, compared to before the pandemic. Consumers are looking for sustainably-sourced beverages with a minimal impact on the planet.

This trend is also a major value driver, as more than 75% of European consumers are willing to pay more for sustainable products.

Edwards concludes, “the staying-power of mega trends such as health and sustainability has been tested over the last few years, but consumers have only been more engaged in these trends since the pandemic. We’ve also seen some major shifts, as consumers look for a wider range of functional benefits delivered by natural ingredients such as tea and coffee. In an increasingly competitive marketplace, offering natural, sustainable products that tap into health trends, without compromising on taste, is essential to attract modern consumers who want it all.

To find out how Finlays can support the potential of natural beverages visit finlays.net.

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Finlays’ research has revealed that four in five European adults (79%) believe their drinking habits have changed since March 2020, the percentage is even higher among young adults: 93% of 18 to 24-year-olds (Gen Z) and 88% of 25 to 35-year-olds (millennials) say their habits have changed since the start of the pandemic.

The changes, per Finlays’ research, are driven by growing health concerns, new daily routines, and sustainability and have resulted in increased interest in healthy beverage alternatives and additional functional benefits.

The majority (58%) of those surveyed stated that increased awareness of physical health has affected their consumption of beverages, while a third recognise mental health as a factor (34%). This has led to consumers seeking out low-calorie options (28%), organic ingredients (18%), and drinks that are artificial flavour or sweetener-free (15%).

It is also no surprise that consumers are often choosing water, with nearly half (48%) of people drinking more water since the pandemic. Yet, one in six (17%) won’t compromise on flavour in pursuit of healthy drinking, giving rise to clean-label products made with natural ingredients.

Long-term changes to consumers’ daily routines are also key. According to the research, more time at home (32%), new working patterns (19%) and spending less time socialising (19%) have all impacted habits in Europe.

Good news for coffee and tea brands: within these new schedules, a third (33%) are drinking more traditional sources of caffeine, such as tea and coffee. Functional beverages are also playing an important role as nine in ten (90%) recognise the positive benefits they offer during work hours, and one in three (30%) use functional beverages to get themselves ready for the day ahead.

The survey finds that consumers want their drinks to work harder for them than ever before, with beverage purchasing decisions hinging on the presence of multiple functional benefits for one in five (20%). Consumers especially want to boost energy levels (34%), improve performance (26%), encourage relaxation (22%), and support their immune system (16%) through drinks.

Finlays’ research also shows that new beverage expectations come with an increasing awareness of sustainability. While the pandemic did impact the purchasing of reusable products – short term – as consumers opted for the perceived ‘safe and more hygienic’ disposable options, the commitment to sustainable purchases returned and remains strong. Among survey participants, one in seven are purchasing fewer drinks in plastic bottles, and 13% are becoming increasingly aware of the environmental cost of certain beverages. Above anything else, ensuring drinks are sustainably sourced affects the purchasing decisions of a quarter (25%) of consumers.

“Our research shows European consumers are looking for beverages to tick a greater range of boxes — a trend particularly prevalent within younger generations. Natural, sustainable ingredients that offer additional functional benefits and permit clean labelling claims could be the golden ticket to meeting heightened expectations,” said Andrew Martin, interim group head of business development at Finlays. (Be sure to check out our upcoming issue as it features a story on functional coffee. Functional teas will follow in a later issue.)

He noted that this trend provides an opportunity for beverage brands to innovate, particularly using familiar components, such as natural tea and coffee that leverage positive consumer association with various wellness benefits. “Take cold brew coffee, which boosts energy levels and contains zero added sugar, providing a natural energy drink alternative – or tea aromas – a colourless liquid that captures the taste of fresh leaf tea to transform flavoured and enhanced water into a sensory, low-calorie beverage experience,” said Martin. “These can help meet the rising consumer demand for sustainable beverages that boost mind and body.”

• Vanessa L Facenda, editor, Tea & Coffee Trade Journal.
  Keep in touch via email: vanessa@bellpublishing.com Twitter: @TCTradeJournal or LinkedIn: Tea & Coffee Trade Journal

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1. Selective Spending.
2. Mindful Drinking 
3. Mood-Boosting Beverages 
4. Crunch-Time for Carbon 
5. Retail Reimagined 

“The events of the last twelve months feel just as seismic as the previous twelve, with continued volatility in global economics, supply chains and politics continuing to cause major changes in how consumers purchase beverage products,” said Sian Edwards, Finlays’ group insights manager, in a statement introducing the report. “Globally, consumers are seeking to make good choices for the planet, and for themselves. While we expect to see belts tightening, we’re also already seeing the return of the beverage as an ‘affordable indulgence’, creating opportunities for innovation and value creation. Consumers’ continued interest in healthy and sustainable beverages is also an important opportunity for brand owners.” 

In this blog, I will focus on just two of the trends: Mindful Drinking and Mood-Boosting Beverages. 

Regarding the ‘Mindful Drinking’ trend, Finlays notes that millennials and Gen Z are drinking alcohol less – and more mindfully – than previous generations. The research finds that 25% of millennials globally find alcoholic drinks with low/no alcohol ‘very appealing, while 18% of global consumers only drink alcohol when socialising, increasing to 23% of Gen Z (per a GlobalData 2022 consumer survey). There are several interconnected factors changing the way younger consumers engage with the alcohol sector, as terms like ‘sober curious’, ‘mindful drinking’ and ‘Cali sober’ become part of the zeitgeist. The report further states that for many younger consumers, this trend is simply about making conscious and positive choices, without having to compromise on experience. There is a desire to reduce alcohol consumption and respect individual choices. 

These two groups are also much more receptive to new beverage concepts, spurring the development of new niche and hybrid categories. The beverage industry has been highly responsive to changing consumer behaviour, with innovations spanning the alcohol-alternative, low -alcohol and RTD alcohol categories looking to capture share in this fast -growing market segment. 

Tea and coffee ingredients are central to this trend with brands looking to create healthy/functional alcohol alternatives. Consumers are not only be avoiding alcohol, but also increasing consumption of ‘healthy’ or ‘functional’ ingredients such as CBD, l-theanine, antioxidants when they choose not to drink (T&CTJ covered the growth of functional coffee and tea beverages in multiple articles in 2022 alone and will cover them again in 2023). 

We have also been seeing coffee and tea being used as the base for a growing number of cocktails or ingredients in them, most recently writing about it in our December issue in the article “The Merging of Similar Mindsets” (see: Tea And Coffee Dec 2022 (flickread.com)). “Tea and coffee both have layers of flavours which can be used to bring out notes in the alcohol or to transform the alcoholic experience,” said Jeff Cioletti, editor in chief, Crafts Spirits Magazine, in the article. 

Finlays also reports that in the highly competitive hard seltzer market, brands are looking to differentiate with new hybrid products, combining the ‘health halo’ and accessibility of tea with premium branding. 

In terms of the ‘Mood-Boosting Beverages’ trend, after the challenges of the Covid-19 pandemic, and with financial pressure mounting, consumers are increasingly looking to ease their stress with products that support mental wellbeing. These range from products that create a sense of treat and relaxation, to those that promise functionality — beverages can be central to this trend (all which T&CTJ has also covered extensively over the last few years). The role of hot tea and infusions in moments of relaxation is prevalent in most cultures globally, while caffeinated beverages such as iced coffee are often consumed for a different, more active, boost. 

The Finlays report – along with scores of other research – finds that as consumers grapple with life in a post-pandemic world, facing a rising cost of living and environmental crisis the need to prioritise mental wellbeing has never been greater. This is driving demand for products that claim to support the full spectrum of mental wellbeing needs, from stress relief, relaxation and sleep through to energy and focus. 

This need for relaxation and productivity is fueling innovation in the beverage industry. To support the rest and relaxation need, beverage brand owners are developing products that create an emotional connection with consumers. Hot tea and infusions are strongly aligned with this occasion for consumers around the world. Product functionality is a growing aspect of this trend. Since 2017, the number of beverages launched with a ‘brain or nervous system’ claim has increased +41%, versus a 1% increase in the total number of beverage launches (per Mintel GNPD, soft and hot beverages (excluding alcohol) launched globally 2017-2021). Products are claiming to support brain functionality, sleep and stress-relief through inclusion of ingredients such as green tea, matcha, coffee, l-theanine and botanicals. It is important to note that these products are ‘claiming to support…’— they do not have evidentiary support from regulatory bodies. 

As the link between gut and brain health becomes increasingly established (it is believed that 95% of serotonin – the ‘good mood hormone’ – is produced by gut bacteria, per Ketchum Consumer Mental Health and Nutrition Trends Food Mood Connection 2022). According to Finlays’ report, we can expect to see products that link cognitive function with gut health enter the mainstream as consumers look for different and more effective ways to improve their mental wellbeing — and we will likely see more coffee and tea brands launching products to target this sector. 

The full report is available via www.finlays.net/about-us/global-beverage-trends-report. 

As we approach the end of 2022, best wishes for a happy holiday season and a healthy new year! Cheers! 

• Vanessa L Facenda, editor, Tea & Coffee Trade Journal.
  Keep in touch via email: vanessa@bellpublishing.com Twitter: @TCTradeJournal or LinkedIn: Tea & Coffee Trade Journal

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Woodrow brings a wealth of experience to the role and joins from Swire Shipping where he was Managing Director for the last seven years. He has been with Swire since 1990 and has held executive roles at various Swire businesses including Cargo Director at the airline Cathay Pacific.

Headquartered in the UK, Finlays is one of the world’s foremost suppliers of tea, coffee and botanicals to the global beverage industry and beyond. Founded in 1750, Finlays has extensive and diverse operations across Europe, North America, South America, Asia, Africa and the Middle East. It also has a unique bush to cup supply chain in tea, a strong direct trade coffee sourcing network, and is a major player in the global tea, coffee and botanical extracts market.

Over recent years, Finlays has increased its focus on extracts via organic growth, acquisition and innovation. It is the world’s largest producer of cold brew coffee and will soon open a new UK cold brew coffee production facility to serve Europe. It also offers a range of premium, health-focussed tea extracts called The Wellbeing Collection which are produced at its Saosa facility in Kenya, one of the few extracts facilities globally situated on a tea farm.

Woodrow says, “Finlays has an illustrious heritage stretching back nearly 300 years and is a trusted and admired industry leader. Today, it is ideally placed to serve the evolving needs of the global beverage market by helping customers address critical long-term consumer trends, whether that’s health and wellbeing, premiumisation or sustainability.”

Through its integrated supply chains, Finlays strives to operate with sustainability at the heart of all it does, creating value for stakeholders at every stage from bush to cup. This is something Woodrow believes is of paramount importance to the future of Finlays.

He says, “Sustainability – whether environmental, social, or economic – is a defining characteristic of our era. Global consumers have never been more switched on to the provenance of their food and drink and this represents a big opportunity for the beverage industry, even in markets where this trend is just emerging.”

He continues: “The scope and scale of Finlays means it can offer true traceability and assurance that its products have been ethically sourced. But most importantly, it gives us the precious ability to have a positive, long-term impact on the communities we serve around the world, and the environments in which we operate. Our core value of ‘sustainable’ has never been more important.”

Woodrow joined Finlays in September and will be based at its headquarters in London, UK. For more information visit www.finlays.net.

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Finlays is a leading global independent B2B supplier of tea, coffee and botanicals, and the world’s largest cold brew coffee provider by volume.

Cold brew is a fast-growing sector and is expected to reach a category value of €90mn in Europe by 2025 after a period of high growth, +51% between 2017-21*. Cold brew is also a major driver of innovation, accounting for more than 10% of RTD/iced coffee launches in the last five years**.

The new cold brew coffee site is being built next to Finlays’ tea decaffeination facility in Hull and close to its tea and coffee facility in Pontefract, West Yorkshire. The new facility will focus on supplying big beverage brand owners with a full cold brew coffee solution, including ready-to-drink and bag-in-box formats.

Andrew Martin, group head of business development at Finlays says: “While cold brew is already extremely popular in the US and Japan, the market is emerging in the UK and Europe. Looking at the forecast growth for this sector, there is a huge opportunity for brands to lead in this space in both retail and Out of Home. Our new facility will help these brands tap into the exciting cold brew market.”

Cold brew is a key trend among young consumers with 80% of Millennials finding cold brew appealing, and 40% of Gen Z consumers preferring their coffee in chilled ready-to-drink formats***.

Cold brew is also a significant value driver as figures show it achieves a significant premium compared to hot brew products – 89% of cold brew drinkers are willing to pay a premium for this type of beverage****.

Martin continues: “Cold brew is seen as a more premium alternative to traditional iced coffee. Cold brew is made by slowly steeping coffee in ambient temperature water to extract the best flavours from the bean, creating a full-bodied, rich flavour that is less acidic and bitter than hot brew. Its complex flavour profile and natural smoothness also means it offers a rich sensory experience without the need for additional ingredients.

“Cold brew is also a natural source of caffeine making it a great alternative to normally sugary energy drinks, most of which contain synthetic caffeine.”

Finlays new facility will produce pure cold brew coffee solutions, starting with high-quality, sustainably sourced coffee beans that are freshly roasted at its roastery in nearby Pontefract, Northern England. Finlays will be able to create tailored blends which are steeped in ambient temperature filtered water in a reduced oxygen environment. The cold brew is triple filtered and gently extracted using a bespoke, gravity fed extraction technology that involves no heat or pressure.

This gentle extraction process will preserve the character and full-bodied flavour of the coffee and achieve consistency. Though some manufacturers may use heat to improve yields, or even add soluble coffee to achieve higher concentrations, Finlays will only offer “pure” cold brew to achieve less acidity, smoothness and rich flavour.

Packaging formats will be flexible to suit a variety of customer needs while also maintaining Finlays’ commitment to sustainable sourcing.

For more information visit https://www.finlays.net/product-solution/cold-brew-coffee-europe/

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Just Add Water is a new range of tea and botanical powder blends that taps into consumer demand for beverages with associated functional benefits. Each blend is packaged in white label single-serve sachets and dissolves instantly in cold water. 

With over one third of global consumers carrying refillable water bottles (per a 2019 Kantar survey of 65,000 consumers worldwide) and 79% of European consumers preferring perceived functional benefits in food and drink form (per Kerry Group, Creating Premium Functional Beverages, 2020), Just Add Water meets growing demand for healthy and flavourful ways to enhance water while on the go. 

The range, which is available in the UK and Europe, features premium tea extracts from The Wellbeing Collection by Finlays, which are rich in naturally derived bioactive compounds associated with functional and health benefits. The blends also support clean label claims by containing no added sugar, being low in calories, and free from artificial colours, flavours and preservatives. 

Combining its bush-to-cup supply chain in tea with leading extraction facilities, Finlays’ range of own label solutions are packaged in ready-to-print plain sachets. This offers brand owners the flexibility to apply their own branding, ready to take to the market. 

The four recipe blends have been fully developed according to key trends and are designed to align to morning, noon, evening, and night-time use. They are: 

• Immunity — According to Mintel data, immunity claims on beverage launches have increased +66% between 2019-2021. Meanwhile figures from Prinova Global highlight that 68% of European consumers prefer to enjoy beverages with immune health benefits at breakfast time. Immunity features a blend of green tea, apple and ginger flavours enhanced with baobab and acacia, which are known prebiotics, designed to kickstart consumers’ mornings. 
• Antioxidant — The Antioxidant blend contains purple tea, a rare variety of tea that boasts a vibrant colour and is rich in anthocyanin, an antioxidant. This rare and unique variety of tea has piqued consumer interest recently with global searches for “where can I buy purple tea” increasing by 250% in the past 12 months. 

• Energy — Research from GlobalData plc shows one third of European consumers associate tea with energy-boosting benefits. Furthermore, data from Mintel shows that between 2016-19, low, no and sugar-free claims increased by +106% in European sports and energy drink launches. The Energy blend helps power consumers from work to workout with a revitalising blend that contains black tea, guarana and ginseng extracts. 
• Digestion — Containing black tea and acacia extracts, the soothing Digestion blend taps into consumer demand for products that perceive to manage digestion issues. Statistics show digestive health is important to four in five European consumers. According to data from Mintel, between 2018-2021, 14% of tea launches carried a digestive health claim as consumers become more aware of tea’s link to digestive health. 

With the Just Add Water launch, Finlays is targeting branded and private label players within the soft drinks, water, hot drinks, Ready-to-Drink, juice & dilutable, and diet & nutrition sectors. 

Commenting on the launch, Finlays marketing manager, Bethany Ruane, said, “Today’s consumers are increasingly mindful of their environmental impact and are turning away from single-use plastics towards refillable water bottles.” She said that Finlays’ formulated blends contain a precise balance of tea extracts, which consumers associate with an array of health benefits, botanicals and natural flavours. “Our blends give brand owners just what they need to be able to offer consumers healthy, flavourful and convenient ways to enhance their water on the go.” 

For those interested in the Just Add Water products, visit:  finlays.net/product-solution/just-add-water. 

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Under this new agreement, Firmenich will focus on commercialising two core parts of Finlays’ extracts business in Europe: its cold brew coffee portfolio and its tea extract portfolio.

Finlays’ cold brew coffee portfolio serves a rapidly-growing segment within the European region, and is crafted using a proprietary process which delivers a distinctly smooth, rich flavour experience, according to the company. Finlays’ tea extract portfolio includes The Wellbeing Collection, a range of premium, all natural tea extracts which are rich in bioactive compounds associated with various health benefits and are sustainably-sourced from Finlays’ own tea farms in Kenya.

“Firmenich and Finlays are joining forces at a time when consumer demand for healthier, natural ingredients has never been higher,” said Rachel Jones, Finlays Group head of business development. “Firmenich’s strong market coverage, deep understanding of taste and application know-how will enable Finlays products to reach a broader audience in Europe, helping the food and beverage industry develop innovative recipes featuring tea and coffee ingredients to meet evolving customer expectations.”

“We are very excited about this partnership,” said Karel Stoschek, VP, Europe of Firmenich’s Taste & Beyond division. “Our customers will benefit from Firmenich and Finlays’ combined expertise in product development, streamlining their own innovation and new product development process and helping to create even better products that tap into the natural, wellbeing and sustainability consumer megatrends.”

Under the new agreement, Firmenich is responsible for the full sales process, from commercial relationship to brief management, supported by the Finlays team. The partnership focuses exclusively on Finlays’ ranges of tea and coffee extracts, and covers European markets only.

“The world of natural beverages is a dynamic hotbed of innovation and offers countless opportunities for sustainable growth,” said Guy Chambers, Finlays Group managing director. “Our new partnership with Firmenich supports Finlays’ mission of bringing the best from bush to cup and will help us to deliver distinctive and exciting solutions for customers in Europe.”

“Firmenich and Finlays are both privately owned and share a similar, Purpose-driven mission of creating healthier food and beverages made from natural and sustainable ingredients”, said Amaury Roquette, Firmenich VP, Naturals Platform, Creation and Portfolio. “This partnership is strongly supporting Firmenich’s commitment to accelerate the global diet transformation by helping to create healthier, great-tasting food & beverages with more natural and sustainable ingredients to enhance wellbeing for people & planet.”

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Following the sale, Browns Investments PLC will be obliged to make a mandatory offer to purchase all outstanding shares in UPL and HPL. UPL and HPL comprise 30 tea farms and 20 processing centres which sit within six of the seven agro-climatic regions of Sri Lanka.

Browns Investments PLC is a highly successful diversified conglomerate and part of the LOLC Holdings PLC group companies. Headquartered in Sri Lanka, Browns Investments has a successful track record in operating plantation businesses in the country. Browns owns Maturata Plantations, one of the largest tea producing companies in Sri Lanka consisting of 19 individual estates that stretch across an area of over 12,000 hectares and employ a workforce of over 5,000 individuals.

There will be no immediate change for any of the employees of either Hapugastenne Plantations PLC and Udapussellawa Plantations PLC and Browns intends to continue to run the business as it has been operated until now.

Finlays will continue to be represented in Sri Lanka by Finlays Colombo Ltd, its tea blending and packing operation which sources teas from multiple origins including Hapugastenne and Udapussellawa via the Colombo auction. This means that Finlays is able to continue to provide an uninterrupted service to customers.

Kamantha Amarasekera, director of Browns Investments PLC said: “Hapugastenne Plantations and Udapussellawa Plantations are two of the best managed and productive plantation companies in Sri Lanka and we are proud to be associated in their future journey. We will work with Finlays to ensure a smooth transition between the two groups. We warmly welcome the management and staff of Hapugastenne Plantations and Udapussellawa Plantations to the Browns family, which has a business heritage dating back to 1875.”

Guy Chambers, group managing director of Finlays said: “After careful consideration and a rigorous selection process, we have agreed to transfer ownership of our Sri Lankan Tea Estates to Browns Investments PLC. As a Sri Lanka based investment firm with a strong track record in agriculture, Browns Investments PLC is ideally placed to unlock the long-term value of Hapugastenne Plantations PLC and Udapussellawa Plantations PLC. These Sri Lankan farms have played an important role in Finlays’ history, and we are sure that they will continue to flourish under the ownership of Browns Investments PLC. I would like to thank our tea farm colleagues in Sri Lanka for their passion and commitment, and wish them well for the future.”

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The coffee extraction plant is set to begin producing quality cold brew coffee for branded and own-label suppliers to the UK and European grocery and hospitality sectors in 2022.

The site is located next to Finlays Europe’s tea decaffeination facility in Hull and will allow Finlays to supply bulk concentrate, RTD cans and bag in box through ambient and refrigerated supply chain networks. Packaging formats will be flexible to suit a variety of customer needs while also maintaining Finlays’ commitment to sustainable sourcing.

The UK market for cold brew coffee is booming, with annual sales hitting £56m in 2020. The growth of the UK and Europe market is now set to mirror the cold brew boom that has transformed the US coffee market, where annual cold brew sales are now worth £917m1 and counting. Finlays is the US cold brew market leader.

“Cold brew coffee is one of the most exciting trends in food and drink,” says Ian Bryson, managing director at Finlays Europe, a leading independent B2B supplier of tea, coffee and botanicals. “After explosive growth in the US, we believe we are about to see the same thing happen in Europe.

“Our new extraction facility is about helping beverage brand owners across Foodservice, B2B and retail tap into the cold brew opportunity by allowing us to manufacture in a flexible range of formats and being able to develop bespoke solutions.”

The cold brew process produces a smooth, naturally sweet flavour profile that is perceived to be less acidic than coffee brewed with hot water. Coffee beans are steeped in room-temperature water for several hours to produce concentrate that can be used for a variety of food and beverage applications.

Finlays Europe’s new facility in Hull will produce pure cold brew coffee from beans freshly roasted at its roastery in nearby Pontefract, West Yorkshire. The trusted coffee experts start with high-quality, in-season coffee beans to create tailored blends which are optimally extracted using the unique filtered water process. This will deliver consistent, bespoke solutions of premium quality in contrast to many products currently on the market which contain soluble coffee and are therefore not “pure.”

These solutions will satisfy UK and European consumers’ growing thirst for premium, flavourful coffee. Consumers have become more discerning, developing a deeper understanding and interest in coffee. Cold brew is the fastest growing segment in RTD/Iced Coffee2 while the average price paid for coffee in supermarkets has risen by 0.8%. This is being driven by soaring demand for more premium formats3 and take-home sales for RTD iced coffee have surged +37.6%.

“Our plan in Europe is to emulate the successful model we have in the US to deliver the same premium quality, pure cold brew that has taken the North American market by storm,” adds Bryson.

“Combining our rich coffee heritage with our pioneering extraction expertise, we are able to work closely with UK and European brand owners, retailers and food service outlets to provide bespoke cold brew coffee solutions.”

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The launch of The Wellbeing Collection comes as consumer demand for products that offer functional, health and wellbeing benefits continues to soar. Within the total wellness economy, healthy-eating, nutrition and weight-loss products are valued at $700 billion per year. Of that, Finlays estimates the potential global value of healthy and functional beverages to exceed $300 billion by 2024 – more than one third of all beverages consumed worldwide.

Helping brand owners tap into this rising demand, Finlays uses a unique approach to offer a range of extracts that are rich in naturally-derived antioxidants, linked by consumers to health and wellbeing benefits. The Wellbeing Collection includes a selection of green, black, white, purple and organic tea powders, as well as aroma and essence. Extracts in The Wellbeing Collection are natural, and offer clean label claims, as well as being sustainably sourced from Finlays’ own tea farms in Kenya.

Finlays’ tea operations in Kenya are at the heart of its unique approach. With the only tea extraction facility located on a tea farm in the whole of Africa, Finlays can harvest tea leaf and process it into extract within the same day. This prevents degradation of valuable oxygen-sensitive ingredients such as antioxidants. Leveraging Finlays’ bush to cup supply chain also means extracts are fully traceable.

Rachel Jones, group head of Business Development at Finlays says: “The health and wellbeing megatrend is one of the most exciting long-term opportunities for brand owners and that is especially true following Covid-19. Tea is an ingredient that consumers closely associate with health and wellbeing, making it the perfect ingredient to tap into this trend which is why it’s known as the forgotten nutraceutical. The Wellbeing Collection is the result of our constant endeavour to get the best out of tea naturally, in the form of extracts that are rich in bioactive compounds, natural and sustainably sourced.”

To find out more about The Wellbeing Collection, visit: www.finlays.net/tea/the-wellbeing-collection-launch.

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In 2017, Finlays acquired Aspen Beverage Group for its decades of dynamic leadership in cold brew extraction, positioning Finlays as a leader in the cold brew coffee market. Combining Aspen’s legacy capabilities and Finlays’ spirit of continuous innovation, Finlays is now also able to offer cold brew soluble coffee to the industry, with an unparalleled portfolio to assist brands in developing their ideal cold brew coffee product solution.

“The ability to offer cold brew soluble coffee in addition to our 100% pure cold brew extracts to our valued customers from our San Antonio facility, has further expanded our presence as a trusted and innovative partner. We are excited to support our customers locally, nationally and internationally through our increased portfolio and capabilities,” said Dan Weingart, vice president of retail sales and innovation.

Through experienced product knowledge, strong global partnerships, and nimble, customised and innovative coffee solutions, Finlays Americas will continue to support a thriving local and national coffee community, offering brand owners an unparalleled coffee portfolio to help strengthen their product offerings.

Finlays, part of Swire Group, is an independent B2B supplier of tea, coffee and botanical solutions to beverage brand owners worldwide. Founded in 1750, Finlays now has locations worldwide including manufacturing and sales offices located throughout North and South America. Today, with deep roots across the globe and unparalleled experience and expertise, no-one is better placed to unleash the potential of natural beverages by helping brand owners to bring the best from bush to cup.

For more information, visit: www.finlays.net.

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The annual Sustainability Awards for the tea sector encourage tea growers to not only deliver a delicious beverage, but also a healthy product that is socially responsible with a positive impact on the environment.

From water and sanitation to sustainable agriculture and farming, here’s how these tea changemakers are creating a sustainable future:

• Apeejay Tea – Apeejay Tea is working with 1,200+ small tea growers who are now part of the supply chain linked to 12 factories manufacturing tea. The company has given all of them a Supply Chain Certification. Manufacturers of green tea leaf from small tea growers is predicted to reach 5 million kg in 2019, up from 3.6 million kg in 2017.
• Sorwathe Ltd. – Sorwathe Tea Factory is situated in Rulindo District in Rwanda and employs around 2,500 workers a day and 2,500 tea farmers. Working with the Rwanda government, Sorwathe is investing in agriculture to reduce poverty and to target the lack of funds to plant tea, assist in the livelihood of the farmer and dependents of current land that are being converted to tea, and improve the lack of knowledge in organic tea cultivation.
• Finlays – Globally, Finlays has been involved in water stewardship programs with the aim to provide safe access to safe water. In Argentina, Finlays work within the Tabay river basin to ensure the flow of water throughout the basin. Their efforts are environmental (diagnosis, recovery of degraded areas), production (co-ordinate with government programs), and social (collaborate for management of roads, bridges and transportation).
• Eastern Produce Ltd. – In 2018, the EPK initiated its project for helping schools in Nandi County, Kenya gain access to water after realising how much rain water was wasted through existing systems. Through rain water harvesting programs, a total of 12,600 pupils and students have more sustained access to water. 21 schools have benefited from a sustained and self-sufficient water resource and absenteeism rates have reduced.

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