SOUTH AFRICAN TEA INDUSTRY LANDSCAPE REPORT

PUBLISHED: APRIL 2020

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FOOD AND BEVERAGES INDUSTRY REPORT CLIENTS

SOME KEY QUESTIONS THE REPORT WILL HELP YOU TO ANSWER:

For the Global Tea Industry Section:

o What are the current market dynamics (trade, market size, production, and consumption) of the Global Tea Industry?

o What are the key markets within the global Tea Industry?

o What are the global Tea Industry trends, innovations and technologies, drivers, and challenges?

For the South African Tea Industry Section:

o What are the current market dynamics (market size, market value, market volumes): 2014-2019 Actual, 2020-2024 Forecasts?

o What are the latest South African Tea Industry trends, innovations and technologies, drivers and challenges?

For the South African Tea Manufacturer & Distributor Section:

o Who are the key manufacturing and distribution players in the South African Tea Industry?

o Which Tea brands and products do the respective companies manufacture/distribute?

For the South African Tea Retail and Pricing Analysis Section:

o Who are the key retail players (franchise and independent Tea shops, and supermarkets) in the South African Tea Industry?

o What are the prices of popular Tea brands (Black Tea, Rooibos Tea, Fruit/herbal Tea, Capsules and pods) across South African retail outlets?

The South African Tea Industry Landscape Report (141 pages) provides a dynamic synthesis of industry research, examining the local and

global Tea Industry from a uniquely holistic perspective, with detailed insights into the entire value chain – from manufacturing to retailing,

market size trends, industry trends, innovation and technology, drivers and challenges, and pricing analysis.

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REPORT OVERVIEW

141-page report filled with detailed charts, graphs, and insights

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SCREENSHOTS FROM REPORT

The total value of global Tea exports (HS0902**) between

2015 and 2019* is illustrated by the graph below.

Interestingly, there has been a decline in Tea exports

between 2017 and 2019*, reaching a value of approximately

US$6.4 billion in 2019*.

The graph below illustrates the Top 5 estimated global

exporting countries of the Tea category (HS0902**) in 2019*.

o China remained the top global Tea exporter in 2019*, with an estimated

total of US$2.0 billion. India and Sri Lanka were the second and third

largest exporters of Tea products, with an estimated US$803 million and

US$721 million in 2019*, respectively, as illustrated in the graph below.

2020 | 7Source: TradeMap; FlatIcon

7,311 7,463

8,105 7,852

6,377

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

2015 2016 2017 2018 2019*

VALUE OF GLOBAL HS0902** EXPORTS: 2014-2019* (IN US$ MILLION)

2,026

803721

361255

0

500

1,000

1,500

2,000

2,500

China India Sri Lanka Kenya Poland

TOP 5 HS0902* EXPORTING COUNTRIES: 2019* (IN US$ MILLION)

* Estimate

** HS 0902 category is defined as Tea, whether or not flavoured

SAMPLE FROM REPORTGLOBAL INDUSTRY OVERVIEW: TEA EXPORTS

o As CBD-infused products continue to remain popular among South

African consumers, CBD Teas offer an excellent way to incorporate CBD

into their everyday lives, with these products therefore likely to gain in

popularity in 2020.

CBD-Infused Tea Products

o Cannabidiol (CBD)-infused products, across a wide range of product

categories, is a popular trend among South African consumers. This

popularity has reached the South African Tea market, with a variety of

CBD-infused Tea products becoming available.

o The CBD contained in these products has no psychoactive effects, as it

does not contain the psychoactive compound Tetrahydrocannabinol

(THC). Furthermore, CBD has been linked with several positive health

effects, including alleviating nausea, dealing with anxiety, alleviating

headaches, aiding in sleep, as well as relief from chronic pain.

o An example of a CBD-infused Tea products is that of Rethink’s CBD Tea

range. Rethink provides a wide range of high-quality CBD products across

different ranges and formats, including infused Tea, oils, capsules, and,

booster shots. Their CBD Tea range is available in seven variants

including CBD Digest Tea, CBD Dream Tea, CBD Relax Tea, CBD Relieve

Tea, CBD Rooibos Tea, CBD Uplift Tea, and CBD Boost Tea.

o Another local example is that of Buddha Tea’s CBD range. This range is

created using organic Tea infused with water-soluble CBD. The

company’s CBD range includes CBD Chamomile Blend Tea, CBD Matcha

Green Tea, CBD Mint Tea, and CBD Turmeric and Ginger Tea.

o A further example is that of Annique Tea’s Rooibos and Herbs Herbal

Infusion range, which includes both a Rooibos and hemp variant. This Tea

is made using indigenous Rooibos as well as hemp, which is a strain of

cannabis.

2020 | 8Source: BenefitsCBDTea; RethinkCBD; BuddahTea; Anniques

SAMPLE FROM REPORT SA INDUSTRY TRENDS

SAMPLE FROM REPORT SA INDUSTRY INNOVATION AND TECHNOLOGY

Setsong Indigenous Tea Enters SA Market

o Setsong Tea Crafters is a South African Tea company, that makes use of

indigenous knowledge and ingredients, to create innovative and unique

artisanal, handcrafted Teas from wild African flora.

o The company’s Tea blends are crafted using two main ingredients,

including tepane leaf and diya root, with the resulting Teas designed to

emulate the herbs and herbal remedies used by South Africans for

centuries. The products are available in loose-leaf tins and refill packs.

o Tepane Tea is a black bush Tea that is rich in vitamins A, C and E, and

zinc, providing a boost to the immune system as well as preventing

degenerative diseases. These blends are available in several variants

including energizing, flu fighter, immune boost and rejuvenation.

o Diya Tea is a red-root Tea containing beta carotene, fibre and zinc. It is

rich in anti-oxidants and claims to boost and balance the immune system,

improve digestion, lower cholesterol, and aid in weight loss. The

company’s Diya Blends are available in several variants including calming

orange, ginger and turmeric, detox lemon ginger and berry, detox original,

and restful sleep strawberry and fennel.

Royaltea Cheese Tea Reaches South Africa

o Two South African entrepreneurs have brought Royaltea, a globally

successful Tea bar present in major cities around the world, to South

Africa, along with the brand’s signature Tea beverage, cheese Tea.

o The company’s cheese Tea is created using an oolong Tea base, topped

with cream cheese foam and sprinkled with matcha green Tea powder.

This type of Tea offers a unique combination of flavour and textures and is

described as drinking a slice of cheesecake.

o These cheese Teas are available in a variety of flavours including the

royal green, cherry blossom, sweet osmanthus, just peachy, lycheese, as

well as rose and shine flavour variants and formats.

o Additionally, in February 2020, Royaltea South Africa announced they will

also now offer a Rooibos cheese Tea, with the company indicating that it

would be the sole suppliers of the drink in the country.

2020 | 9Source: CapeTownMagazine; RoyalteaSA; RooibosCheese; SowetanLive; FoodforMzansi; SetsongOurTeas; Shop1; Shop2; Image1; Image2; Image3

2020 | 10Source: TwiningsTea; TwiningsTea2; TwiningsTea3; Twinings4; Classic; FruitsHerbs; GreenTea; Infuso; Rooibos

SAMPLE FROM REPORT STAFFORD BROS & DRAEGER (PTY) LTD: TEA BRANDS/PRODUCTS

BRAND/PRODUCT IMAGE DESCRIPTION

Twinings Classic

Collection

A Tea range derived from Black Tea, with added extracts depending on the specific product. The product range

flavours include Lady Grey, Earl Grey, English breakfast, Prince of Whales and pure Darjeeling. The product is

available in pack sizes of 20 teabags.

Twinings Fruits and

Herbal Collection

A Tea range designed to be consumed hot or cold without milk and contains no caffeine, while only accounting for

only four calories per cup. The product flavours include blackcurrent, ginseng and vanilla, strawberry and mango,

raspberry and echinacea, peach and passion fruit, along with lemon twist. The product is available in pack sizes

of 20 teabags.

Twinings Green TeaA Green Tea range which contains caffeine and antioxidants. The product flavours include pure Green Tea, Green

Tea and lemon as well as Green Tea and mint, and is available in pack sizes of 20 teabags.

Twinings Infuso Range

A Tea range which is a combination of herbs, fruits, and spices, sourced from numerous global regions. The

flavours include pure camomile, honey and vanilla, raspberry and pomegranate, lemon ginger, Rooibos,

strawberry and vanilla, as well as lemon, rosehip and hibiscus. The product is available in pack sizes of 20

teabags.

Twinings Pure Rooibos

A Tea range made from Rooibos, indigenous to the Cederberg region in South Africa. The product is limited to

pure Rooibos in South Africa, but other variants are available to international markets. The product is available in

pack sizes of 25 teabags.

BRAND AND SIZE

Five Roses

26s R19.99 N/A R17.99 R21.25 R19.99 R25.99 R16.99 R17.99

52s R52.99 N/A N/A N/A R34.99 N/A R25.99 N/A

102s R42.99 R42.99 R49.99 R41.95 R43.99 R42.99R34.99

(Special)R49.99

200s R84.99 N/A R79.99 R69.95 R96.99 N/A N/A R79.99

Glen

26s R11.99 N/A N/A N/A R11.99 R11.99 R11.99 N/A

100s R25.99 R19.99 R26.99 R22.95 R24.99 N/A R27.49 R26.99

200s R49.99 N/A R39.99 R39.45 R48.99 R49.99 R46.99 R39.99

House Brand

Black Tea

100s R18.99 N/A N/A N/A R36.99 R15.99 R21.99 N/A

200s R38.99 N/A N/A N/A R96.99 R38.99 N/A N/A

Joko

60s R31.99 N/A N/A N/A R30.99 R31.99 R30.25 N/A

100sR29.99

(Special)R39.99

R29.99

(Special)R37.45

R29.99

(Special)R42.99 R39.99

R29.99

(Special)

200s R79.99 N/A R76.99 N/A R82.99 R79.99 R79.99 R76.99

2020 | 11This pricing analysis was conducted at retail stores and supermarkets during w/c 30 March 2020.

SAMPLE FROM REPORTTEA PRICING ANALYSIS: BLACK TEA

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TABLE OF CONTENTS

EXECUTIVE SUMMARY (3 Pages)

Global Industry Snapshot

SA Industry Snapshot

SA Industry Drivers and Challenges

1. GLOBAL TEA INDUSTRY (19 Pages)

1.1 Global Industry Overview: TOTAL GLOBAL TEA MARKET IN RETAIL VALUE RSP: 2019 & 2024* (IN US$ BILLION) (Graph)

1.2 Global Market Environment

1.3 Global Industry Consumption: GLOBAL PER CAPITA CONSUMPTION OF TEA: 2020 & 2025* (IN KG) (Graph)

1.4 Global Industry Production: TOP 3 TEA PRODUCING COUNTRIES: 2018 (IN THOUSAND TONNES) (Graph)

1.5 Global Industry Imports: VALUE OF GLOBAL HS0902** IMPORTS: 2014-2019* (IN US$ MILLION); TOP 5 HS0902* IMPORTING COUNTRIES: 2019* (IN US$ MILLION) (Graphs)

1.6 Global Industry Exports: VALUE OF GLOBAL HS0902** EXPORTS: 2014-2019* (IN US$ MILLION); TOP 5 HS0902* EXPORTING COUNTRIES: 2019* (IN US$ MILLION) (Graphs)

1.7 Global Key Markets: Regional Overview: GLOBAL TEA RETAIL SALES, BY REGION: 2019 (IN US$ MILLION) (Graph)

1.8 Global Industry Trends

1.9 Global Industry Innovation and Technology

1.10 Global Industry Drivers

1.11 Global Industry Challenges

TABLE OF CONTENTS

2. SOUTH AFRICAN TEA INDUSTRY (38 Pages)

2.1 South African Tea Industry Overview (35 pages)

2.1.1 South African Industry Overview: Tea

2.1.2 South African Industry Overview: Black Tea

2.1.3 South African Industry Overview: Green Tea and Fruit/Herbal Tea

2.1.4 South African Industry Overview: Rooibos Tea

2.1.5 South African Production: Tea

2.1.6 South African Tea Imports: VALUE OF SOUTH AFRICAN HS0902** IMPORTS: 2014-2019* (IN ZAR MILLION) (Graph); SA TEA IMPORTS BY CATEGORY (IN ZAR THOUSAND)

(Table)

2.1.7 South African Tea Exports: VALUE OF SOUTH AFRICAN HS0902** EXPORTS: 2014-2019* (IN ZAR MILLION) (Graph); SA TEA EXPORTS BY CATEGORY (IN ZAR THOUSAND)

(Table)

2.1.10 South African Industry Market: South African Tea Market Definitions

2.1.11 South African Industry Market: South African Tea Distribution Channel Definitions

2.1.12 South African Industry Market Size: Off-Trade Tea Market (2014-2019): VALUE OF SA TEA MARKET: 2014-2019 (IN ZAR MILLION) (Graph); SA TEA MARKET CAGR AND

TOTAL GROWTH (IN PERCENTAGE) (Table)

2.1.13 South African Industry Market Size: Off-Trade Tea Market (2014-2019: By Category): VALUE OF SA TEA MARKET BY CATEGORY: 2014-2019 (IN ZAR MILLION) (Graph)

2.1.14 South African Industry Market Size: Off-Trade Black Tea Market (2014-2019: By Category): VALUE OF SA BLACK TEA MARKET BY CATEGORY: 2014-2019 (IN ZAR

MILLION) (Graph)

2.1.15 South African Industry Market Size Forecast: Off-Trade Tea Market (2020*-2024*): VALUE OF SA TEA MARKET: 2019 & 2024* (IN ZAR MILLION) (Graph); SA TEA

MARKET VALUE FORECAST BY CATEGORY (IN ZAR MILLION) (Table)

2.1.16 South African Industry Market Volumes: Retail Tea Market Volumes (2014-2024*): RETAIL VOLUME OF SA TEA MARKET: IN TONNES (2014-2024*)(Table)

2020 | 13

TABLE OF CONTENTS

2 SOUTH AFRICAN TEA INDUSTRY (CONTINUED) (38 Pages)

2.1 South African Tea Industry Overview (Continued) (35 Pages)

2.1.17 South African Industry Market Volumes: Foodservice Tea Market Volumes (2014-2024*): FOODSERVICE VOLUME OF TEA: 2014-2024* (IN TONNES) (Graph)

2.1.18 South African Industry Market Volumes: Retail Cups Tea Market Volumes (2014-2024*): RETAIL CUPS VOLUME OF SA TEA MARKET: IN MILLION CUPS (2014-2024*)

(Table)

2.1.19 South African Industry Market Volumes: Foodservice Cups Tea Market Volumes (2014-2024*): FOODSERVICE CUPS VOLUME OF TEA: 2014-2024* (IN MILLION CUPS)

(Graph)

2.1.20 South African Industry Market Volumes: Retail Brewed Tea Market Volumes (2014-2024*): RETAIL BREWED VOLUME OF SA TEA MARKET: IN MILLION LITRES (2014-

2024*) (Table)

2.1.21 South African Industry Market Volumes: Foodservice Brewed Tea Market Volumes (2014-2024*): FOODSERVICE BREWED VOLUME OF TEA: 2014-2024* (IN MILLION

LITRES) (Graph)

2.1.22 South African Industry Market Distribution: Off-Trade Tea Market: CHANNEL DISTRIBUTION FOR TEA PRODUCTS: 2019 (IN PERCENTAGE) (Graph); CHANNEL

DISTRIBUTION (2014 AND 2019) BY OUTLET TYPE (Table)

2.1.23 South African Industry Trends

2.1.24 South African Industry Innovation and Technology

2.1.25 South African Industry Drivers

2.1.26 South African Industry Challenges

2.2 South African Tea Industry Sustainability (3 Pages)

2.2.1 Ethical Tea Partnership

2.2.2 Fairtrade International

2.2.3 Rainforest Alliance

2020 | 14

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TABLE OF CONTENTS

3. SOUTH AFRICAN TEA MANUFACTURER AND DISTRIBUTOR OVERVIEW (21 Pages)

3.1 AVI: Overview

3.2 AVI: Tea Brands/Products

3.3 Carmién: Overview

3.4 Carmién: Tea Brands/Products

3.5 Dilmah: Overview

3.6 Dilmah: Tea Brands/Products

3.7 Joekels Tea Packers: Overview

3.8 Joekels Tea Packers: Tea Brands/Products

3.9 Stafford Bros & Draeger (Pty) Ltd: Overview

3.10 Stafford Bros & Draeger (Pty) Ltd: Tea Brands/Products

3.11 Unilever SA Foods (Pty) Ltd: Overview

3.12 Unilever SA Foods (Pty) Ltd: Tea Brands/Products

3.13 South African Tea Manufacturers & Distributors: Other

2020 | 16

TABLE OF CONTENTS

4. SOUTH AFRICAN TEA RETAIL AND PRICING ANALYSIS (37 Pages)

4.1 South African Tea Retail Analysis (23 Pages)

4.1.1 South African Franchise and Independent Tea Shops (15 Pages)

4.1.1.1 Dulcé Café: Overview

4.1.1.2 Famous Brands: Fego Caffé: Overview

4.1.1.3 Famous Brands: Mugg & Bean: Overview

4.1.1.4 Famous Brands: Wimpy: Overview

4.1.1.5 Krispy Kreme: Overview

4.1.1.6 McCafé: Overview

4.1.1.7 Peacock Coffee & Tea Traders: Overview

4.1.1.8 Seattle Coffee Company: Overview

4.1.1.9 Starbucks: Overview

4.1.1.10 The Daily Coffee Group: Overview

4.1.1.11 Vida e Caffè: Overview

4.1.1.12 South African Independent and Franchise Retailers: Other

4.1.1.13 South African Speciality Retailers

2020 | 17

TABLE OF CONTENTS

4. SOUTH AFRICAN TEA RETAIL AND PRICING ANALYSIS (CONTINUED) (37 Pages)

4.1 South African Tea Retail Analysis (Continued) (23 Pages)

4.1.2 South African Tea Supermarket Overview (8 Pages)

4.1.2.1 South African Retail Overview

4.1.2.2 Checkers: Overview

4.1.2.3 Food Lover’s Market: Overview

4.1.2.4 Massmart: Overview

4.1.2.5 Pick n Pay: Overview

4.1.2.6 Shoprite: Overview

4.1.2.7 Spar: Overview

4.1.2.8 Woolworths: Overview

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TABLE OF CONTENTS

4. SOUTH AFRICAN TEA RETAIL AND PRICING ANALYSIS (CONTINUED) (37 Pages)

4.2 South African Tea Pricing Analysis (14 Pages)

4.2.1 Franchise and Independent Tea Shops Pricing Analysis: Bootlegger, Dulcé Café, Europa, Fego Caffé, Krispy Kreme, McCafé, Mugg & Bean,

Peacock Coffee & Tea Traders, Seattle Coffee Company, Starbucks, The Daily Coffee Group, Vida e Caffè, Vovo Telo, Wiesenhof, Wild Bean Café,

Wimpy, Woolworths Café- Comparing pricing of Black Tea, Green Tea, Rooibos Tea, Herbal/Flavoured Tea, and Red Cappuccino

4.2.2 Black Tea Pricing Analysis: Five Roses, Glen, House Brand Black Tea, Joko, Lipton Earl Grey Tea, Lipton Yellow Label Tea, Teeco, Tetley,

Trinco, Twinings Earl Grey Tea, Twinings English Breakfast Tea- Comparative pricing at Checkers, Food Lover’s Market, Game, Makro, Pick n Pay, Shoprite,

Spar and Woolworths

4.2.3 Rooibos Tea Pricing Analysis: BOS Organic Rooibos, Carmién Organic Rooibos, Eleven O’ Clock, Five Roses, Freshpak, Glen, House Brand Rooibos Tea,

Laager, Lipton, My T Chai, Trinco, Southall’s Rooibos- Comparative pricing at Checkers, Food Lover’s Market, Game, Makro, Pick n Pay, Shoprite, Spar and

Woolworths

4.2.4 Green Tea Pricing Analysis: Carmién Green Tea, Five Roses, Freshpak, House Brand Green Tea, My T Chai Green Rooibos Chai, Lipton

Clear Green Tea, Tetley Pure Green Tea, Trinco, Twinings Green Tea- Comparative pricing at Checkers, Food Lover’s Market, Game, Makro, Pick n Pay,

Shoprite, Spar and Woolworths

4.2.5 Fruit/Herbal Tea Pricing Analysis: Carmién Pure Herbal Infusion Range, Freshpak Rooibos with Enchinacea, Five Roses Apple Vanilla and Cinnamon,

Herbex Detox Herbal Tea, House Brand Fruit/Herbal Tea, Lipton Flavoured Teas, My T Chai Yogi Chai Spiced Tea, Twinings Fruit and Herb Collection-

Comparative pricing at Checkers, Food Lover’s Market, Game, Makro, Pick n Pay, Shoprite, Spar and Woolworths

4.2.6 Tea Capsules and Pods Pricing Analysis: Carmién (Natural, Chai, Caramel, Vanilla Espresso Capsules); Espresto (Rooibos Espresso, Rooibos

Cappuccino); Khoisan Gourmet (Plain, Caramel, Vanilla Organic Rooibos Capsules); Nescafé Dolce Gusto (Chai Tea Latte); Pure Cup (Rooibos, Green

Tea with Mint); Red Espresso (Rooibos Espresso, The Tea Collection Mixed Case); Tea Merchant (Rooibos Espresso, Earl Grey Rooibos Espresso)

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