Canadian Market Overview

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Canadian Market Overview

• Presentation by Louise Roberge,
• President, Tea Association of Canada
• June 8th, 2007

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AGENDA

• Introduction
• Market Place Overview
• Trends Opportunities
• Barriers
• Tea Association of Canada Programs

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Who are Canadians?
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The Evolving Canadian Consumer
Older
More Affluent
Time Pressured
Wellbeing Focused
Internet Connected
Fragmented
Demanding Discerning
Source ACNielsen Homescan Statistics Canada
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MARKET PLACE OVERVIEW

• Tea Imports
• Market Share by Country of Origin
• Consumption
• Grocery Sales
• Foodservice Sales

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Tea Imports Volume Metric Tons (000,000)
Source International Tea Committee
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Tea Imports 2006 Category Percentage
21
79
Source International Tea Committee
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Producing Country Canadian Market Share Black Tea
(2006)
Source International Tea Committee
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Producing Country Canadian Market Share Green Tea
(2006)
Source International Tea Committee
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MARKET PLACE OVERVIEW

• Tea Imports
• Market Share by Country of Origin
• Consumption
• Grocery Sales
• Foodservice Sales

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Consumption
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Canadian Beverage Consumption Share of
Throat(Litres per Person)
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MARKET PLACE OVERVIEW

• Tea Imports
• Market Share by Country of Origin
• Consumption
• Grocery Sales
• Foodservice Sales

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Tea Sales by Category(Dollars)
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Tea Sales Yearly Trend (2003 2006) Dollars
(000,000s)
Regular Tea Bags
Specialty Tea Bags
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Tea Sales by Type Dollars (000,000s)
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Green Tea Sales Dollars (000,000s)
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Tea Sales by Region
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10
16
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Tea rebounded in shelf presence at Grocery
retailers driven by Green Tea and Flavoured Black
Tea SKUs
Source ACNielsen MarketTrack, National Grocery
Banner - Latest 52 Weeks Ending January 20, 2007
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MARKET PLACE OVERVIEW

• Tea Imports
• Market Share by Country of Origin
• Consumption
• Grocery Sales
• Foodservice Sales

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Tea occasions outside the home peak in the
afternoon whereas evening is the peak for inside
the home.
Tea Consumption (Time of Day) - Inside versus
Outside the Home
Almost ¾s of respondents consume tea at home in
the evening
Base Hot tea drinkers, N11,234
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Three out of ten hot tea drinkers have consumed
hot tea at the workplace or family restaurant.
Thinking about the last three months, where have
you consumed Hot Tea when you are outside of your
home?
Base Hot tea drinkers that drink hot tea
outside of their home, N7,497
Multiple mentions
Source NPD Group Canada
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Key Learning's For Tea in Commercial Foodservice

• Key Trends in Commercial Foodservice
• Ethnic
• Health
• Snacking

Tea, more so than any other beverage, can
capitalize on these influential trends
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CANADIAN TRENDS OPPORTUNITIES
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Trends Opportunities

• Green Tea
• Tea as an ingredient in cooking and cocktails
• Tea as a health and beauty aid
• Fancy Tea bags
• Cause related Tea
• Organic Tea foods in general

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Health Claim

• After a period of extensive review, the NHPD has
  approved three health claims for tea. All types
  of tea infusions (black, green and oolong) are
  recognized as
• a source of antioxidants for the maintenance of
  good health.
• Tea is approved for increasing alertness.
• Tea is further accredited as helping to maintain
  and/or support cardiovascular health.

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BARRIERS
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Regulatory Issues
HIGH Priority
MEDIUM Priority
Healthy Living
PESTICIDE MRLS
CBSA-CFIA
HIGHLIGHTED INGREDIENTS
NHPs
Product Specific Health Claims
MANDATORY NUTRITION LABELLING
Generic Health Claim
WHO report
Fortification
Codex
Caffeine Labelling
Health Safety Act
Stewardship Ontario
LOW Priority
On the Radar
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Pest Management Regulatory Agency (PMRA)

• Canadian MRLs (default 0.01 ppm)
• TAC Working Group

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Current Framework
Tea Associations
Legislators Producer countries Consumer
countries
FAO IGG Dr T C Chaudhuri, Co-Leader Andrew
Scott Co-Leader
Tea Assn of Canada Louise Roberge, Phil
Berenger JS AC AS
Tea Boards Experts in Producer Countries
Tea Assn of the USA Joe Simrany, Frank
Farrell, JS AC AS
Co-ordination Andy Crimes (Unilever) John Snell
(VRNA) Andrew Scott (Tetley)
Eg India Dr Chaudhuri, ITB Tata Tea (Percy
Siganporia), Hindustan Lever, Toklai, Upasi etc
ETC C Pineau, T Henn, M Beutgen, AC
Eg China Professor Chen (TRI Hangzhou)
Tea Industry Forum (Aus) Janet McDonald, David
Mould AC AOS
Eg Indonesia, Sri Lanka, Kenya, Malawi,
Argentina .
Pesticide Manufacturers
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New Canadian Organic Regulations

• December 22, 2006- Final publication in Canada
  Gazette II
• To be phased in over a two year period
• Product must meet revised CGSB standard as well
  as the New Organic regulations
• Must contain at least 95 organic ingredients

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After The Two Year Transition Period

• All organic products must be certified for
  international trade
• Canada joins more than 40 other countries
  world-wide with organic regulations

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Organic Logo

• Canadian logo permitted on food meeting the
  revised standard for organic production
• Imported Products require an attestation from
  country of origin that the product meets Canadian
  organic requirements
• The logo may be either in black white or in
  colour (green and red on a white background
  with white lettering )

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PROGRAMS
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Media
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Tea Certification
In efforts to streamline tea education
across Canada, the Tea Association of Canada
in collaboration with George Brown College
has founded the Tea Sommelier Program started
Fall 2006.
Tea Appreciation Certificate
Tea Sommelier
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www.tea.ca
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