Charles Cain over at TeaRetailer has written a great five part series detailing Wholesale tea that you can buy from grocery stores etc. There were some really important parts after reading them that I wanted to share with everyone.
In Part 1: Overview:
This leads me to my second primary point - buyers often have an irrational focus on everything BUT product quality. In many cases this is because they simply don't know how to tell the difference between a high quality and low quality tea in each of two dozen categories of teas they carry...Buyers of packaged tea products purchase based on the quality of the packaging, price points and low minimum orders.
This explains Lipton's recent change to improve their tea bags and not their tea. Tea education of consumers is so crucial to help people select the best possible tea they can get for their money. Great tea is not expensive but inexpensive tea is in comparison.
Part 2
Quality flavored teas are made with liquid flavoring agents and the inclusions you see are primarily for aesthetic appeal.
Interesting to see how inclusions (dried flowers, etc) are really just for show and don't provide any real value.
Part 3
Having seen the inner workings of wholesale, internet and retail tea operations I personally would not touch the wholesale market without at least $500,000 in cash.
Fascinating to see how much capital he recommends when starting a wholesale business.
Part 4
As importantly, your packaging has to be extremely professional. I had a conversation a few years back with a buyer from Whole Foods who said that the customer selects their tea based on two criteria: packaging and price point.
Again Charles reiterates the point that consumers just do not even think twice about the quality of tea leaves. Do they even know there's a difference?
Part 5
The best tea served in typical fashion at even a fine restaurant is mediocre at best.
At most restaurants if I know when I order hot tea I would be getting much more then bagged tea I would definitely be willing to pay extra. I would love to go to a great restaurant that can actually serve a proper cup of tea.
The whole series by Charles Cain is extremely well written and very informative of the wholesale tea business. I highly recommend checking it out.