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World Green Tea Conference Session 1 Consumption & Distribution of Green Tea in the USA Presentation by Joseph P. Simrany, President Tea Association of the USA November 2-4, 2007

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Page 1: World Green Tea Conference Session 1 Consumption & Distribution of Green Tea in the USA Presentation by Joseph P. Simrany, President Tea Association of

World Green Tea ConferenceSession 1

Consumption & Distribution of Green Tea in the USA

Presentation by

Joseph P. Simrany, President

Tea Association of the USA

November 2-4, 2007

Page 2: World Green Tea Conference Session 1 Consumption & Distribution of Green Tea in the USA Presentation by Joseph P. Simrany, President Tea Association of

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Green Tea in the USA is becoming More Popular

• Most Popular Beverages in USA

– Soft Drinks

– Coffee

– Bottled Water

– Tea is #6

Page 3: World Green Tea Conference Session 1 Consumption & Distribution of Green Tea in the USA Presentation by Joseph P. Simrany, President Tea Association of

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Long Term View of Green Tea Consumption in the USA 000 Lbs.

Year Avg. Lbs. % Total % Inc/(Dec)

1910-19 44,410 42.8 ------

1920-29 29.010 31.3 (34.6)

1930-39 18,606 21.2 (35.8)

1940-49 5,491 6.3 (70.5)

1950-59 2,927 2.8 (46.7)

1960-69 2,526 1.9 (13.7)

1970-79 6,928 4.1 174.3

1980-89 10,529 5.7 52.0

1990-99 11,916 6.2 13.2

2000-06 32,618 14.5 173.7

Page 4: World Green Tea Conference Session 1 Consumption & Distribution of Green Tea in the USA Presentation by Joseph P. Simrany, President Tea Association of

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Green Tea Trends in Recent Years 000 Lbs.

Year Green % Total Total $ %>/<

2000 16,737 8.5 194,639 -4.9

2001 22,423 10.5 213,117 9.5

2002 20,492 9.9 206,024 -3.3

2003 26,584 12.8 207,620 1.0

2006 40,729 17.2 318,092 53.3

Page 5: World Green Tea Conference Session 1 Consumption & Distribution of Green Tea in the USA Presentation by Joseph P. Simrany, President Tea Association of

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Leading Importers of Green Tea to the United States December 06

Thousands of Pounds

Country Quantity % Total Green Tea

% Change Last year

China 26,214 64.4 36.4

India 1,290 3.2 (5.1)

Japan 1,634 4.0 39.7

Sri Lanka 782 1.9 87.1

Taiwan 630 1.5 3.4

Total 40,729 100.0 30.7

Page 6: World Green Tea Conference Session 1 Consumption & Distribution of Green Tea in the USA Presentation by Joseph P. Simrany, President Tea Association of

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Green Tea “Teabits”

• Green Tea sales are booming in the USA, driven by:– Promise of Health Benefits

– Expanded Distribution

– New Blend Variations

– New Forms including RTD

– Growing Awareness of Specialty Tea

Page 7: World Green Tea Conference Session 1 Consumption & Distribution of Green Tea in the USA Presentation by Joseph P. Simrany, President Tea Association of

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Green Tea “Teabits”

• Sales Revenue is up over 1500% over the last ten years from approximately $200,000 to well over $300,000,000 in 2006.

• The majority of Tea & Health Publicity is focused on Green Tea.

Page 8: World Green Tea Conference Session 1 Consumption & Distribution of Green Tea in the USA Presentation by Joseph P. Simrany, President Tea Association of

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Green Tea Observations

• Green is experiencing a resurgence in popularity driven primarily by the promise of health benefits

• Initially, it was in limited distribution mostly confined to Asian communities

• Initially, it met with some consumer resistance as the taste was very different from Black Tea

Page 9: World Green Tea Conference Session 1 Consumption & Distribution of Green Tea in the USA Presentation by Joseph P. Simrany, President Tea Association of

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Green Tea Observations

• Early resistance to the taste of Green Tea was overcome through education, relative to proper preparation and…

• Packers developed new blends of Green Tea mixed with various fruit flavors that appealed to the American palette.

Page 10: World Green Tea Conference Session 1 Consumption & Distribution of Green Tea in the USA Presentation by Joseph P. Simrany, President Tea Association of

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Prospects for Continued Growth

• Green Tea sales show no sign of slowing down in recent months

• Prospects are excellent that sales will continue to be strong over the next several years.

Page 11: World Green Tea Conference Session 1 Consumption & Distribution of Green Tea in the USA Presentation by Joseph P. Simrany, President Tea Association of

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Reasons for Continued Growth

• Growing awareness of health benefits

• Official sanctioning of health claims

• Aging population base

• Increasing availability via– Tea Salons– The Internet– Supermarkets