Arabian Tea Party - Hotelier Middle East article

31-01-2011

HotelierMiddleEast.com

By Harriet Sinclair

The tea leaf has a surprisingly rich history — from Chinese ceremonies and tea houses in Morocco to the infamous Boston Tea Party; tea has certainly left a trail across the history books.

In the Middle East, tea has come to represent down-time — tea houses, though by no means a new addition to the social circuit in the Middle East, are experiencing something of a revival as a healthy alternative to the over-done coffee shop, and it is almost impossible to avoid being offered a relaxing cup of tea on entering the homes of friends and family.

In fact, with the addition of flavoured teas, the increasing popularity of green tea (the healthy cousin of traditional black tea) and the report from global information publisher Euromonitor International showing that the total volume of tea sales maintained a growth rate of 9% during 2009, it would seem that the Middle East's love-affair with tea has been rekindled.

"As the countries in the Middle Eastern region do not grow tea, it is a 100% import business and demand is huge," says Newby Teas marketing director Edward Berry.

"Egypt is ranked among the top five importers of tea in the world, while Turkey is ranked number one in per capita tea consumption. The demand for tea can be explained by the fact that alcohol is banned in various regions in Middle East i.e. no alcohol can be consumed in restaurants, hotels etc, which drives the requirement for different beverage offerings," he explains.

Regionally, the key on-trade outlets for packaged tea are restaurants, speciality coffee houses and shisha coffee shops — accordingly, restaurants have a considerable share of tea on-trade sales, according to Euromonitor International.

Its statistics also show that the expanding presence of coffee houses has also benefited tea, albeit with lower sales compared to the mainstay coffee sales, while the dominance of shisha coffee houses in the United Arab Emirates — in line with the rest of the Middle East — strongly prompts on-trade tea sales.

And the demand for tea is being felt by suppliers, adds TWG Tea president Taha Bouqdib.

"Currently, we have a large number of requests coming to TWG Tea from the Middle East and we provide teas, exquisite accessories as well as tea savoir-faire for many of the most luxuriouos hotels in the region. There is a burgeoning retail market for luxury teas in Saudi Arabia, Egypt, the UAE, Qatar, Kuwait, and Morocco," he says.

But while there is certainly an upward trend in the demand for tea in the region, the type of tea consumed differs greatly to that in other parts of the world, says Althaus marketing manager Liv Rathgeber.

"Major buyers of tea in the Middle East want a very different product from what is in demand in Europe. For example, the UAE buys low grow Sri Lankan tea, which is not at all in demand in the UK. Customers here were more into strong tea rich in taste, what we call 'strong bright cup'," she reveals.

Adding some flavour
As a region dedicated to tea-drinking, the Middle East is the perfect market for tea companies looking to promote offerings such as flavoured teas, green or white tea, as people already know what to expect from their tea, says TWG's Bouqdib.

"For this reason, it is much easier to introduce a new world of luxury teas to this region, along with rare and unique harvests, new blends, etc. as the palate of everyday consumers will already be able to appreciate a higher level of quality," he asserts.

If the introduction of flavoured teas has been well received by consumers in the region, green tea has been truly embraced, as more and more consumers look to include green tea in their diet.

Of the teas increasing their share in the market, "definitely green tea is the fastest growing category," says Monin brand manager Tihomir Gergov.

"Green tea consistently tops the list of best-selling tea. It's no mystery as to why when research suggests that green tea can be beneficial in fighting atherosclerosis, high cholesterol, diabetes and even cancer.

Green tea has a very high concentration of powerful antioxidants. Plus, green tea and its extract have also been shown to fight obesity and help with weight loss. Its benefits seem endless! Sip on a cup of green tea a few times a day to reap the benefits of this drink," he advises.

Against a traditional demand for black tea, in the UAE — like the rest of the Middle East — the rising health awareness of green tea has contributed massively to its popularity, according to Euromonitor International. The company forecasts that the popularity of green tea among expatriates, particularly Asian expatriates, signals a promising future for the product.

Organic teas
In addition to an increasing demand for green tea, consumers have also been increasingly interested in the benefits of organic tea — although the rise in organic tea sales was slowed slightly by the recession, as with many categories of organic food.

"More people are enjoying the overall effects of this soothing drink to their bodies, therefore, the demand for organic teas is raising as well," explains Rathgeber from Althaus.

"[Consumers are] taking into consideration the health benefits it delivers, such as lower blood pressure and protection from heart disease. In addition to this, cancer research has shown that tea can help prevent the development of this disease, particularly in the digestive system, stomach, bladder and so on," she adds.

But, warns Bouqdib, consumers would be wise to take the claims of organic teas with a pinch of salt, as there is no guarantee of the quality of these teas "as they are often more inconsistent in flavour and purity than high altitude heritage tea estates — much like what we can see today in the wine industry".

"Although measures are put into place to cultivate a tea without the use of chemical fertilisers and pesticides, there are still issues in the very rural communities of most of the tea producing countries with chemical run-off which contaminates 'organic' plantations as much, if not more than, the non-organic plantations," he adds.

Branding
Despite Middle Eastern tea-drinkers being an experimental bunch when it comes to sampling flavoured and fruit tea, green tea and organic, it seems that the brand name is still king as consumers are more likely to reach for a recognisable tea brand than to try something new.

But the preference for branded products also signifies the need for a diverse product offering — as tea brands are far more likely to provide a broad assortment of teas, along with having "the ability to provide the necessary service and convenient concepts for fine hotels," says Althaus' Rathgeber.

"The globally recognised brand definitely creates more trust with the consumers. Big brands often cater to the healthy beverage trend, and provide a vehicle for innovative flavour exploration," adds Monin's Gergov.

Exploration is the buzzword for tea-drinkers in the Middle East, as more and more consumers seek new varieties of the humble tea leaf — fantastic news for suppliers who can capitalise on the increasing diversification in the market. The challenge operators is to create innovative ways of serving it.

Tea has great potential in a region where expats from some of the great tea-drinking nations are living alongside residents whose preference for non-alcoholic beverages has led them to explore the ever-evolving world of tea. So whether it's green, black or white, it would seem it's tea time in the Middle East.

Tea trends to look out for in 2011
As a new year begins, our experts share the latest tea trends to look out for over the next 12 months...

"There are many trends growing in the tea market; green tea, health and wellness, flavoured hot and cold teas. But the trend that we should definitely watch in the future is 'tea is the new black' — instead of asking for your coffee black in 2010, how about your tea instead? Many people's 2011 resolutions include cutting back on coffee, but the caffeine withdrawal can be a killer. Ease your caffeine cravings by making the switch to black tea, which will still provide you with a strong kick."
Monin brand manager, Tihomir Gergov

"For ages, people have concentrated on black tea in the main and green tea to a certain extent, but the tea market has grown immensely in the last 10 years, for reasons such as the health benefits of tea which people were practically not aware off. Today the market is flooded with flavoured teas i.e. cinnamon, cardamom and chocolate."
Edward Berry, marketing director Newby Teas

"The fastest growing variety of tea in the Middle East is white tea because of its many recently proven health benefits. The plants' fully unprocessed, white tea leaves are simply picked and sun-dried, and consequently retain the highest concentration of anti-oxidants. Their infusions are pale, subtle and brilliant, making a highly refreshing tea, perfect for hotter climates."
Taha Bouqdib, president TWG Tea

"Young people will rediscover tea for themselves, because it fits into their lifestyle (indulgence, wellness, enjoying time with friends). We will also see more people valuing old traditions and making them an integral part of contemporary lifestyle. Generally, premium quality loose tea is gaining importance and more people are looking for convenience without compromising on quality (pre-portioned premium loose leaf tea in an extra large tea bag for a tea pot)."
Althaus Marketing Manager, Liv Rathgeber

Althaus

Article on HotelierMiddleEast.com