In Taiwan, the tea farmers work in small family units, own their own land and sell their teas directly to the consumer rather like vegetable farmers. They are all doing well as are the country’s tea merchants - mainly due to the fact that tea prices have gone up and they are still selling well, particularly to wealthy Chinese consumers. Jackson Huang of Taipei-based ABC Tea Company says that "private or individual tea companies with the right policies and good marketing management are booming and Taiwan tea prices have gone up because of the climate and reduced tea supply. Added to this is the fact that in Asia, tea drinking is a ‘hobby’ that has a long history so the only change is that some consumers may be buying lower grades during the recession, but they don’t stop drinking tea."

News from China, as Roy Fong of Imperial Tea Court reports, is less positive. "The Chinese producers who rely on export are in trouble as economies continue to recess. However, even before the economic downturn, more and more Chinese brokers were looking towards domestic sales and some of the smaller exporters were encouraged not to export so much. One of the reasons is that Chinese products have taken a beating recently over quality and safety issues and the Chinese government has put in some tough rules that are expensive and time-consuming. In many cases, the domestic market is much more profitable. But I think in fact that both markets have suffered – exports due to weak economies around the world and domestic sales due to poor quality merchandise and very tough competition."

Producers and wholesalers are clearly feeling the influences of the recession but are also affected, sometimes for better sometimes for worse, by different domestic situations, by climate change, by changes in legislation and regulations governing the import and export of tea, and by the constantly shifting markets around the world.

UK wholesale and internet business, Jing Tea, has "seen significant growth of more than 50% during the recent recession". Owner, Ed Eisler, believes that "specialty tea sales will grow significantly in the next year because good tea is an affordable, guilt-free treat which you can enjoy any time."

In Liverpool, one year-old Brew Tea Bar reported in April this year that "despite the deepening recession and constant chatter of failing businesses, Liverpool’s own contemporary tea bar, Brew, is using the humble cuppa to go from strength to strength. In the last two months alone Brew has signed up numerous wholesale customers for its premium blends of loose leaf tea." owner Phil Kirby says, "What Brew sells to restaurants, hotels and cafes is the opportunity to improve the quality of their tea offering whilst having a positive impact on their margins. We are encouraging food service businesses not only to change their tea supplier but to rethink the way they approach tea full stop. Since opening in August 2008 Brew Tea Bar at St Paul’s Square has gone on to serve over 25,000 customers - proof if ever you needed it that customers are really relishing the opportunity to take a break from the usual coffee houses and enjoy premium tea in stylish surroundings. In recession times customers restrict their spending to high quality products which represent good value. Any business which can increase both quality and value stands a good chance of riding it out."

And from Kent in the south east of England, Raschid Gibrail, owner of two year-old Ismail Coffee and Tea reports, "Since January 2009 we have enjoyed 25% growth and that pattern is continuing. It is a joy to see the range of tea customers, mornings, some traditionalists drinking Breakfast Tea, a plethora of people enjoying teas across the range. Probably the highlight of the day is the second half of the afternoon when young people on the way home from schools and colleges regularly call, experience a 10% discount and venture through the variety of teas. All of this customer enthusiasm is evidenced in the increasing sale of "Tea Leaves", Glass Tea Pots with infusers, Tea Caddies etc which facilitate recreating the experience at home."

Famous worldwide for its quality and reliability, Bettys and Taylors of Harrogate has been affected by increased costs and a weak pound but, says the company’s commodities director Keith Writer, "our tea sales have increased and we continue to enjoy sustained and steady growth. I think Yorkshire Tea has continued to grow because there is something reassuring and comforting in a quality cup of tea and so often when there is a crisis the first thing people do is put the kettle on....the world always seems a better place with a decent cuppa in your hand! When people have to make choices about where and how they spend their money a quality cup of tea represents excellent value in everyway and customers intuitively know this."

But perhaps the Cultured Cup is unusual; George Jage of World Tea Expo, who is on constant touch with the industry across the US, says "It’s true that some companies are booming and other lagging. As a predictable result of a sagging economy, consumers often shift from out-of-home to in-home consumption and so the restaurant industry is often hardest hit. The companies posting significant gains are mostly those with retail branded product in grocery and specialty retail stores. Regrettably, the bulk suppliers and tea rooms are seeing the worst of the downturn." At this year’s show in Las Vegas, Jage also saw a drop in attendance numbers but, "while fewer buyers attended, the ones who came were there for specific purpose insomuch as they had to source product. Logically, individuals and companies who were there to gather information or source vendors for future purchases were the ones who cut back on the travel expense. The end result was the average attendee was a higher quality buyer looking to do business at the show and with a smaller audience of beneficiaries (exhibitors), many companies had their most successful Expo to date."

So, in the retail sector, the overall picture from around the world seems to be that for those businesses which keep a close focus and stay true to their core values and continue to offer quality and good value for money, the recession is not taking too great a toll.

George Jage foresees great opportunities for the industry and highlights data from beveragemarketing.com which claims that "tea represents 5.4% of total US beverage sales in 2008. It is perfectly reasonable to believe that tea sales can reach the levels of beer (3rd at 11.4%), coffee (4th at 11.1%), or milk (5th at 10.6%) within 2-3 years if the industry works together communicating the value proposition of tea." Jage feels that "companies with solid business plans, proper capitalization, clear vision, and communicable value will survive as the herd is thinned. Every business must evaluate every expense to determine if it is helping them achieve their goals and is critical to the fulfillment of their brand promise. Every business must fight harder for every sale and deliver unique value and be able to communicate that value clearly." Christian Draak at Mount Everest Tea focuses on a need to "stay calm, demonstrate reliability and maintain quality" and Roy Fong is optimistic that sales will grow as "more and more customers become aware of tea and the quality and culture of tea."

Luis Carvalho sums up the feelings of many perceptive tea entrepreneurs when he says "crisis will probably select those who are fit for the future, those who are able to innovate new products, and those who maintain old traditions of quality."

Antriksh Kumbat agrees that "we have to work on the quality front" and Indi Khanna also says, "The demand for quality will far exceed demand for poorer types". Kyle Stewart highlights the importance of clever marketing tea as "hip, healthy, calming, energizing and an amazing social beverage for every age demographic." And, with current plans for expansion to a second shop and an e-commerce website, Marianna at Orange Pekoe knows that future success will be "about increasing awareness for the customer and helping them find out and appreciate the world of tea. This goes back again to slowing down and spending more time with customers, creating the right marketing materials and easily accessible information about tea."

It is sad that some businesses are experiencing such hard times but there is a good deal of positive thinking and sensible planning for the future. There will certainly be changes in coming years but the general feeling seems to be that the tea trade is adjusting well to the ‘crisis’ and will eventually emerge from the recession stronger than ever before. Keith Writer expresses the thoughts of many when he says, "collaborative working, whether a packer or a producer, is essential if we are to continue to face the challenges of future notable environmental and climate change. Social issues remain a priority and what is needed now more than ever is all us all working together to help protect and continue to build a strong tea trade for years to come."