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A Hot Cup Runneth Over...  © OPR
With profits and good intentions, organic coffee and tea
remains sustainable by treating its employees and the
environment with respect.

By Peter Croatto

Here’s one thing for retailers to remember: With organic coffees and teas, it’s not just about the taste. For many organic coffee and tea companies—not to mention other piping hot alternatives—the company has to appeal to the “cultural creatives” demographic.

Guayaki Yerba Mate (Sebastopol, CA) co-founder David Karr describes this “huge group of consumers,” as having a deep concern for “social justice, ecology, peace, relationships and saving the planet.”

Added Karr, “Cultural creatives demand information, certification, honesty, transparency and values-led practices. They are willing to pay more for premium products that are aligned with these beliefs. I think most other tea and coffee companies are aware of this research and market their product to let this group know about good things they are doing.”

Tea and coffee are mostly grown in countries known for less than favorable working conditions. Organic companies are not shy about letting customers know that they are not taking advantage of rock-bottom minimum wages and questionable labor practices. They want to make a change for the better.

Retailers would be wise to find out what these companies are doing and spread the word to a whole array of potential customers who spend with their conscience as well as their taste buds.

Consumer purchases of organic coffee drove sales of the product to $89 million in 2005, up 40.4 percent from the previous year, according to data from the Organic Trade Association’s 2006 Manufacturer Survey.

While organic coffee only represents the sixth greatest beverage sub-category, it has the fastest growth rate, the report highlighted.

Sustaining the Earth and the People

Oakland, CA-based Numi Organic Tea devotes a whole page on its Website, www.worldpantry.com, detailing how it “acts responsibly and compassionately in our community.”

Added founder Ahmed Rahim, “We are responsible for everything we do, and taking care of our earth and people is a major aspect of this. Quality is obviously an aspect that will keep Numi as the most premium brand [on] the market, but the partnerships we create to sustain the earth and people is a lifelong development that will change the world into a better and more sustainable place.”

That Guayaki helps protect the rainforest is the primary reason why customers buy the products, Karr said. “We let them know that their purchases make a real difference in protecting the rainforest,” he explained. “Their demand for rainforest-friendly yerba maté inspires growers to cultivate high quality yerba maté under the canopy instead of clearing the land in a less sustainable manner.”

“Several of us have plucked tea with the women we help through our World Gypsy Fund program, and have seen them over the years being brought out of some desperate poverty,” said Zhena Muzyka, CEO of Zhena’s Gypsy Tea (Ojai, CA). “I know in my heart that I have made the best decision for my life in dedicating it to ending poverty in the tea regions we purchase from.”

“The challenges in making high quality, organic, fair trade certified tea are also the source of the rewards,” said Jessica Robinson, who handles research and development for Choice Organic Teas in Seattle. “Conventional tea is commonly bought and sold at auctions or through brokers. This system makes it easy to get the lowest price and organize shipments, but you lose the connection to the people and places behind the tea. Our procurement of fair trade certified tea bypasses the auction system in favor of fair prices and direct relationships with growers.”

Though companies undoubtedly have a moral obligation they strive to meet, a good product is a welcome byproduct of those efforts.

“Another reason we source our product through a Market Driven Restoration approach is to maximize quality,” Karr said. “Rainforest yerba maté tastes better and has more nutritional properties than sun-grown varieties. The way it is processed by local people is also [an important step] toward quality. We pay them above market price for our yerba maté and in return for this premium they focus on total quality.”

“What you might lose in the extra time it takes to work with smaller producers, you gain back in the communication and connection to the garden,” Robinson said. “Having that open line of communication has allowed us to work with growers to develop new products and even improve the flavor of existing products. You just can’t do that if you’re buying finished tea at an auction.”

More than a Box Labeled
“Tea” or “Coffee”

These companies’ practices have to be promoted properly for a couple of reasons.

First, “Companies and brands will try to get in on the action and I think they sometimes inadvertently send a red flag through providing vague marketing, vague information that suggests the right thing, but doesn’t [offer] the right detail that tells the consumer or the buyer that this is for real,” said Rodney North, the “answer man” for Bridgewater, MA-based Equal Exchange, a fair trade cooperative of farmers that produces organic teas and coffees.

In mid-July Equal Exchange celebrated its 20th anniversary. Some 25 representatives from coffee, tea, cocoa, and sugar small farmer cooperatives from 19 different countries in Latin America, Africa, and Asia were on hand to help celebrate the occasion.

Second, according to Karr, is that many customers “crave a lot of information about the products they buy and the companies and causes they support with their dollars.”

Packaging plays a huge role in communicating the company’s attitudes and beliefs.

“Numi’s packaging is critically important based on the above rationale,” said co-founder, Reem Rahim.“ On a non-verbal level, the front panel speaks of tea--[it] conveys a slowness, a quality of life...a reflective time and space. The earthy colors and matte quality printing--without the use of shrink-wrap--speaks to what’s inside, namely an organic, tasteful and quality product.”

Even Karr, socially aware as he is, admits the right packaging choice it’s a balancing act. “The key is to present the most important information in an attractive, entertaining and creative way that captures [consumer] attention and interest, yet is not overwhelming and confusing.”

Muzyka admits the company’s “sensual, elegant, and whimsical tin” attracts people to the product. There are no eco-labels on the packaging, but, “we do find that the consumer loves to read about our programs that directly help the workers, so for us, educating the consumer on what we specifically do with our World Gypsy Fund dollars is important.”

There is such a thing as too much information, said Jim Cannell, owner, operator and founder of Jim’s Organic Coffee (West Wareham, MA), a wholesaler of organically roasted coffees.

“Unfortunately, a little knowledge can be a dangerous thing and a customer will ask questions that have no bearing on what we believe is the heart of organic coffee--organic quality--in other words, the sustainable practices on the farm or region,” Cannell said. “We promote these through highlighting specific areas or farms and simply using photos to help tell the story. There is nothing cooler than a big pile of organic dirt, in my opinion.”

Cannell also doesn’t put much stock in catering to the wants of the aforementioned “cultural creatives.” “It seems everyone is shouting from the rooftop for every good little deed they do. I sort of thought that these things were supposed to be done without fanfare.”

Not Everyone Drinks Coffee?

Yes, that’s right, even if Starbucks is taking over every available plot of land, retailers would be wise to offer alternatives. Some customers want variety and others can’t handle coffee anymore. Others are looking for what essentially boils down to be a perceived healthy alternative.

Caroline MacDougall, founder of Santa Barbara, CA-based Teechino Caffe, Inc., maker of the “herbal coffee,” says many people avoid coffee because it aggravates their intestinal tract. In addition, caffeinated beverages can become a bane for many women, especially those who are nursing, pregnant and are peri- or postmenopausal.

MacDougall is aware that veteran coffee drinkers forced to find alternatives don’t want to lose too much of the experience. They want full-bodied flavor, a not too dissimilar taste, and to keep the same brewing ritual.

MacDougall says her products meet those requirements.

Guayaki offers yerba maté, a beverage made from the leaves and stems of a rainforest tree, native to the subtropical rainforests of Paraguay, Brazil and Argentina discovered centuries ago.

“Once people try the product, and find that it tastes good and provides nutrients and sustained energy—it sells itself,” Karr said. “We can tell them the nutrients that are in there, and they know that is good for them without mentioning specific health claims. People know when a product makes them feel better, so you don’t need fancy claims—just drink it and feel the enriched vitality for yourself!”

Similar to Guayaki, but with a twist, Pixie Maté’s (Boulder, CO) yerba maté concentrates can also serve as the non-stimulated way to start the day—or new year.

“January is a great month to promote yerba maté —because it is implicitly a ‘back-to-health/wellness’ month. Consumers are looking for energy during the dark months— as well as food and beverage choices that aren’t going to add more pounds. Yerba maté is the perfect answer to this post-holiday consumer need,” explained Pixie Mate’s founder/president T.J. McIntyre.

If retailers are afraid customers might deem these selections too exotic, at least stock the shelves with organic chai, cocoa (which Equal Exchange and others offer), or warm up some apple cider to give customers ideas for that holiday feast.

And don’t forget about your coffee counter.

“Yerba maté is booming in cafés across the country—yet too often the [natural food] retailers who are the primary purveyors of the packaged product hesitate to make changes in their food service offerings. Selling maté lattes in the café positions in the in-store café as ‘on-trend’ and also offers a 7-day-a-week demo on one of the hottest product categories in the store,” McIntyre said.

Additonally, “Passive demos work very well with a new product like yerba maté because people are confused in terms of what to expect with taste. If you brew up a batch of, say, maté chai and put it in an airpot with a sign from a manufacturer—and then pull product from the shelf and stack next to it… you’ll be out of stock by the end of the day!,” said McIntyre.

And for that special time of year for when a “A Christmas Story” gets significant airtime, Zhena’s Gypsy Tea offers “a gorgeous Tea & Tupelo Honey gift set, along with an fun sampler mug that has a sensuous, Moroccan Gypsy countertop display,” said Muzyka, who recommended displaying the product on a holiday table.

Other companies motivated by the holiday spirit include Equal Exchange, which in November, launched the first installment of its four seasonal teas; and Jim’s Organic Coffee has an annual holiday blend that’s offered in a shipper display.

Even companies without Cannell’s attitude know that customers don’t want reading a company’s packaging to resemble a study session.

Guayaki gladly refers customers to its website, and Choice Organic Teas recently revamped its site to include plenty of information about its business practices. Equal Exchange uses its newsletter and website to spread the word about special events.

Some companies also show their commitment in the packaging itself. Zhena Gypsy Tea’s packaging balances art and conservation. “Our artwork is printed directly onto our tins, which saves tons of paper and makes the tins 100 percent recyclable everywhere in the country,” Muzyka said.

“For all of our tea bags, we use unbleached Manila hemp and unbleached wood pulp filter paper with 100 percent unbleached cotton string,” said Choice Teas’ Robinson. “We use 100 percent recycled paperboard for our tea boxes and 100 percent recycled corrugated cardboard with 83 percent post-consumer content for our shipping cartons.”

A Taste of Money

Packaging and good intentions will only move so many products off the shelves.

“There’s a lot more consumer education that can be done,” said North of Equal Exchange. “There’s only so much the manufacturer can do. The retailer can really take advantage of the interest in fair trade by answering the basic questions that consumers have, take advantage of special days (like Fair Trade Month in October, Fair Trade Day in May) and sampling.”

Reem Rahim advised stores to demo teas and coffees by serving them at the deli or coffee/tea bar. Doing so allows customers to make an informed purchase.

“Oftentimes, I hear consumers say they bought a whole box of a certain tea and were then disappointed when they got home,” she said. “While at the retail shelf there are many brands to choose from, at the coffee bar there may be one or two. That is why the tea manufacturer who gets that opportunity is prime to boost their sales at the retail level,” said Reem Rahim.

“When done right, it can be the best thing a store can do,” Cannell said of just making coffee and tea in-store. “Also, let’s face it, people want a cup of coffee on their way to work and when stores are not prepared to meet that need, they miss out.”

Robinson said sampling is more effective “if staff members are enthusiastic about the teas and can speak about them knowledgably.”

“Customers love when they can trust their local store to show them the very best,” said Anna Hartman, Numi Tea’s public relations manager, of retailer knowledge.

Stores selling bulk teas should merchandise alongside brewing accessories, Robinson said. “If your set-up allows for it, hold a demonstration or class to educate customers about tea basics. Research using tea books and on tea companies’ websites.” OPR

 

For More Information:

• Choice Organic Teas, (206) 523-9750
• Equal Exchange, 774-776-7400
• Guayaki Yerba Mate, (888) GUAYAKI
• Jim’s Organic Coffee, (800) 999-9218
• Numi Tea, (510) 534-6864
• Pixie Mate, (303) 444-MATE
• Teeccino, (800) 498-3434
• Zhena’s Gypsy Tea, (800) 448-0803