Coffee and Tea Newsletter
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Coffee Outlook:  Strong

Despite the recession, the Retail Market for Coffee has recovered and grown quickly. During the five years to 2013, market revenue increased at an average annual rate of 5.6% to $27.9 billion as the economy recovered from the economic downturn and trends in coffee consumption grew. Although revenue declined 1.5% in 2009 because of a high unemployment rate and low per capita disposable income, market revenue recovered quickly in subsequent years from growing trends in coffee consumption. According to IBISWorld Industry analyst Andrew Krabeepetcharat, “as coffee producers continue to offer new ways for coffee drinkers to get their fix, market revenue is expected to grow an additional 5.7% in 2013”.

During the past five years, coffee makers have promoted new coffee products to consumers in an attempt to capture the demand for both high- and low-end coffees. Major companies like Starbucks introduced single-serving home brewing systems that have made drinking coffee at home more convenient and cost effective than going to a coffee shop. At the same time, more coffee producers started promoting bottled and instant coffee mixes for consumers who are short on time and seeking a less expensive alternative to visiting a coffee shop. These new coffee products, in addition to health and diet trends, have spurred significant growth during the five years to 2013 despite a slowly recovering economy.

During the five years to 2018, revenue for the Retail Market for Coffee is forecast to grow. “This growth will be the result of an improving economy, new coffee products introduced to the market and increasing coffee consumption trends,” says Krabeepetcharat. As the unemployment rate declines and per capita disposable income rises, more consumers will be willing to spend on premium coffee products. Coffee producers are also expected to continue promoting new ways for consumers to drink coffee. The selection of ready-to-drink, single-serving home brews and instant coffees is also expected to increase during the next five years. The number of young coffee drinkers is expected to increase, as well, as health and diet trends continue to increase the demand for coffee.

The Retail Market for Coffee is highly fragmented, with many restaurants and food-based retailers selling America's most-loved beverage. From grocery stores to coffee shops to fast-food chains and convenience stores, coffee is available in many businesses and in many forms. Given the industry's wide reach, only Starbucks has gained a significant market share. Even the most ubiquitous purveyors of coffee, such as convenience-store giant 7-Eleven, do not earn a significant share of coffee retailing revenue.

For more information, visit IBISWorld’s Retail Market for Coffee in the US industry report page.


North American Tea Championship Selects Best Iced Tea for Summer 2013

Just in time for summer and National Iced Tea Month (June), the North American Tea Championship (NATC) selected 20 first-place winners in numerous categories during its annual Iced Tea Class evaluation. The Championship is the only independent competition, judged by professional cuppers, to distinguish the highest quality and best tasting teas that are commercially available in the North American marketplace.

North American Tea Championship Judge Eliot Jordan, director of tea at Peet's Coffee & Tea, said, "The overall cup quality standard for iced beverages is higher than it was just a few years ago. Plus, innovation has strengthened. Let's hope these are trends that continue."

NATC Judge Anthony Tellin, a former tea buyer/formulator for Starbucks' Tazo and the current tea buyer and director of operations at Smith Teamaker, said, "From a consumer's perspective, it is a great time to be a lover of iced tea. With more options and higher quality across all iced tea channels, this summer is sure to be refreshing and delicious. In fact, it made judging and choosing the best in category that much more difficult, but what a wonderful challenge to have."

A complete list of first, second and third-place winners, as well as details on the Championship, is available at The next North American Tea Championship, for spring 2013 harvest teas, takes place July 2013.

Iced tea first-place winners include (company, tea and category):

  • QTrade Teas & Herbs ( Emerald Green, Foodservice Unflavored/Unsweetened Green

  • S&D Coffee and Tea (, Teafinity Sweet, Foodservice Bag-in-Box Sweetened Black

  • S&D Coffee and Tea (, Teafinity Unsweet, Foodservice Bag-in-Box Unflavored/Unsweetened Black

  • Tiki Tea (, Apricot Papaya Strawberry, Instant Flavored Black

  • Tiki Tea (, Tiki Tea/Acai Blueberry Pomegranate, Instant Flavored Green

  • Mellow Monk, LLC (, Lightly Roasted Iced Green Tea, Instant Unflavored/Unsweetened Green

  • Crystal Geyser Water Company (, Tejava Premium Iced Tea, Ready-To-Drink Unflavored/Unsweetened Black

  • TEAloe LLC (, TEAloe Mint, Ready-To-Drink Flavored Green

  • ITO EN (North America) (, TEAS' TEA Half & Half Green Tea with Lemonade, Ready-To-Drink Sweetened Green

  • ITO EN (North America) (, TEA'S TEA Green Tea,  Ready-To-Drink Unflavored/Unsweetened Green

  • Gizmo Beverages ( Tea of a Kind - Pomegranate Acai White Tea, Ready-To-Drink Herbal

  • Evy Tea, LLC ( Tea Cuvee Amber Oolong, Ready-To-Drink Flavored Oolong

The North American Tea Championship Iced Tea Class is evaluated once a year, and every submission is evaluated blind and through organoleptic analysis of characteristics, including flavor, body, color, clarity and balance. An overall numerical value on a 100-point scale is then calculated based on the ratings of each characteristic, and winning teas are determined by rank.

As a first-time NATC judge, Tellin said he was impressed with both the products and the competition itself. "NATC is well thought out and executed, providing categories to support different product types, formats and delivery systems; so each product is fairly judged against similar products in the marketplace," he said. "The results allow producers to understand how their products are compared to others through impartial judging by industry professionals, something that aids tremendously in marketing, operations and product development."

Wilbur Curtis, a leading manufacturer of tea brewers and accessories, was the host and equipment supplier for the North American Tea Championship Iced Tea Class evaluation. Global Customized Water provided 300 gallons of water for the competition.



Red Velvet Revolution!

When foods were rationed during World War II, bakers used boiled beetroots juices to enhance the color of their cakes. Boiled beetroot or beets as they are known in America, are found in some red velvet cake recipes, where they also serve to retain moisture.

Many believe the cake and its original recipe are well known in the United States from New York City's famous Waldorf-Astoria Hotel. However, it is widely considered a Southern recipe. Traditionally, the cake is iced with a French-style butter roux icing (also called ermine icing), which is very light and fluffy but time-consuming to prepare. Cream cheese frosting and buttercream frosting are variations which have increased in popularity.

A resurgence in the popularity of this cake is partly attributed to the 1989 film Steel Magnolias in which the groom's cake (a southern tradition) is a red velvet cake made in the shape of an armadillo.  In recent years, red velvet cake and red velvet cupcakes have become increasingly popular and can be found in many bakeries.
Coffee and tea purveyors are also responding to red velvet’s popularity.  Check out these yummy treats from New York Gourmet Coffee and Republic of Tea.

This Red Velvet Cake coffee from New York Gourmet Coffee has the delight of the ruby red velvet cake complete with heavenly creamy rich frosting. You'll taste the moist chocolaty cake and vanilla frosting in every sip!  “It was the most popular flavored coffee among the thousands of people who attended the recent Coffee and Tea Festival here in New York City,” said Josh Haydemann, owner of New York Gourmet Coffee.  “It is also among the most popular coffee purchased online,” he added.  Customer reviews online are extremely positive, many applauding it for delicious taste without the calories of an actual piece of cake. 

Dawn posts “This is really great coffee” and gives it five stars.  She adds “I love red velvet 'anything' and this coffee is no exception. The taste is smooth and delicious. I love it and will be purchasing it regularly.”

Available in regular or decaf at for $7.79/lb. (decaf slightly higher)

Have your cake and sip it too! Indulge your sweet tooth with this yummy caffeine-free infusion.  Rooibos is blended with chocolate and beet root bits to taste just like the classic red velvet cake. The perfect cup to accompany birthdays or to satisfy a mid-afternoon craving.

Red Velvet Cuppa Chocolate Tea was featured on NBC’s Today Show as one of the top 10 Skinny Foods all dieters should try and featured as an editor's pick, guilt-free indulgence by   Tin of 36 bags sells for $10 and makes a great gift too!  For more info or to place an order, click here.


To a Tea:
New GE Refrigerator Lets Tea Aficionados Select the Perfect Temp

No longer do tea aficionados have to use a thermometer and a tea kettle to get a precise temperature at which to brew their favorite teas. GE's latest refrigerator can now do all the work for them in a matter of minutes.

The new GE Café™ French door refrigerator is the first refrigerator on the market to dispense hot water. It offers users four different pre-programmed temperature settings, which include 90 degrees Fahrenheit for warm, 150 degrees for cocoa, 170 degrees for tea and 185 degrees for soup, and a customizable one, from 90-185 degrees, making it perfect for steeping delicate teas and making quick work of oatmeal, hot chocolate and other food preparation.
"Consumers may have had to sacrifice the optimal tea experience in the past because their microwave or stove wouldn't give them a precise hot water temperature," said Rob Lewis, lead design engineer for GE Appliances. "Now, within minutes, they can be sipping their favorite tea, just like it would be brewed by an expert, while they read the news."

The tea industry continues to grow in the United States, increasing from under $2 billion in 1992 to over $8 billion in 2012. On any given day, more than 160 million Americans are drinking tea, and in 2012 alone, Americans consumed well over 65 billion servings of tea.

"The prime drivers of this growth are the increasing amount of scientific evidence associating tea consumption with health benefits and the allure of exotic specialty hot teas to a growing number of affluent tea aficionados," said Joseph P. Simrany, president of the Tea Association of the USA, Inc.

Tea is uniquely positioned to flourish in today's health-conscious environment because of the positive consumer perception and scientific research that serves to reinforce that perception. Tea contains flavonoids, naturally occurring compounds that have been shown to have antioxidant properties, which work to neutralize free radicals. Scientists believe, over time, free radicals may damage elements in the body.

Each tea category has an ideal steeping temperature. For example, green tea is best at lower temperatures, and tea manufacturers offer very specific suggestions, from 122-185 degrees Fahrenheit. Now, those precise temperatures can be easily set on the GE Café refrigerator, with 10 ounces of precisely controlled hot water being dispensed in minutes. Other settings can be used to enjoy other food and drinks throughout the day, from oatmeal to soup to hot chocolate.

The GE Café French door refrigerator (model CFE29TSDSS) is built in Louisville, KY., and the estimated retail price is $3,099. The refrigerator is available wherever GE appliances are sold.  For more information on the GE Café French door refrigerator,


Collectors From Around the World Expected to Spark Bidding Frenzy

As reported in the Daily Mail…the world's most expensive coffee set to fetch up to £4.5million when it goes under the hammer.  The small jug, which stands little over 10ins tall, will be the most important coffee-pot ever to come to the market when it is auctioned at Christie’s in London next month.  Collectors from around the world are expected to spark a bidding frenzy for the Rococo masterpiece by Paul de Lamerie (1688–1751) the greatest silversmith working in Britain in the 18th century.

The George II silver coffee-pot, which weighs 34oz, was created in 1738, for a successful merchant.  This exceptional piece of craftsmanship has recently been the centerpiece of the British Silver exhibition at The Metropolitan Museum in New York. Lamerie’s works have been prized above all others for the last two hundred and fifty years.  He was apprenticed to his fellow Huguenot Pierre Platel in 1703, becoming free of his master in 1711. Within six years he was described as the King’s Silversmith.

This coffee-pot is the masterpiece of de Lamerie’s highly developed Rococo period and is a tour-de-force of design and execution.

Read more about the history of this exquisite (and expensive) piece of craftsmanship at


Click here to see photos of the SOLD OUT 2013 show!

Click here to request info about the 2014 show.