Tea in Turkey is marked by a vibrant culture, limited industry and weak identity. These may all be invigorated by the joint venture announced at the end of September between the Dutch-based Jacobs Douwe Egberts (JDE) and Of\u00e7ay, one of Turkey\u2019s leading tea producers. The two will mesh operations under one organizational umbrella.<\/p>\n
The partners have strong complementary skills, implicit in their announced goal to \u201cOpen up new growth opportunities in the Turkish hot beverages space\u2026 through the combination both of JDE\u2019s International dimension and expertise in coffee and Of\u00e7ay\u2019s local expertise in tea.\u201d JDE is a major player in coffee. Its products are available in 140 countries, including its own brands, such as Jacobs, which has a strong position in Turkey and ones it produces for a range of labels. Its Pickwick tea dates to the 1930s and is very strong in the firm\u2019s home base of the Netherlands and in Eastern Europe, an obvious target for the joint venture. The company is owned by JAB Holdings which controls about 20 percent of the global coffee market. U.S. brands include Peet\u2019s Coffee & Tea, Mighty Leaf, Caribou Coffee, Panera Bread, Krispy Kreme, Dr Pepper, and Keurig Green Mountain.<\/p>\n
Of\u00e7ay was formed in 1984, when the tea monopoly in Turkey ended. The dominant player remains state-owned. This is \u00c7aykur, with around 60 percent of the market. The third main brand is Bogus. Almost all the tea produced is black, though in recent years there have been innovations in green and even white tea.<\/p>\n
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The Turkey tea culture<\/strong><\/p>\n The word \u201cunique\u201d is too easily thrown around to describe something that doesn\u2019t fall into well-established categories. The Turkish tea culture is described as different, idiosyncratic and even \u201cpeculiar.\u201d All in all, it is, well, unique.<\/p>\n Here are a few of its main features:<\/p>\n Turkish Samovar<\/p>\n than half the national output. The city was originally part of Georgia and given away to Turkey by the USSR. Of its 350,000 inhabitants, 200,000 are estimated to grow tea. Rize is notoriously rainy \u2013 the wettest area in Western Asia. Its wet season is September to June and the dry one April to May, the exact opposite of the monsoon and growing patterns of the major Asia tea growers.<\/p>\n<\/li>\n The tea industry<\/strong><\/p>\n Rize, Turkey tea plantation<\/p>\n The JDE-Of\u00e7ay joint venture is export-centered. Both firms have a strong experience in supplying retailers, product development and efficiency. For several decades, Turkey\u2019s economic policy makers have targeted growth in exports, with tea at the forefront; the government aimed at creating ten strong export brands by 2023. The early intention and expectation have long been that it would be admitted to the EU, the first majority Muslim, Asian-European member.<\/p>\n These are the positives. Any statement, however carefully phrased, about the future of the Turkish political landscape and economy is sure to miss something about to happen or looming soon. The negatives pile up almost by the month: conflicts in and with Syria, Iraq and the Kurdish enclaves; Erdogan\u2019s authoritarianism with the coup attempt of 2016 being followed by aggressive crackdowns; the U.S. as Turkey\u2019s trade \u201cenemy\u201d; perceived and real anti-Muslim sentiments among EU policy makers; the refugee crises across Europe and MENA; an improvement in unemployment to 11 percent overall and 20 percent for those aged 25 percent or younger. In late September, inflation rose from 18 percent two months ago to 25 percent, the highest in 15 years. The lira has depreciated in 2018 by 40 percent.<\/p>\n Back to the positives and the opportunities that are open to JDE-Of\u00e7ay and the tea industry in general:<\/p>\n Turkey\u2019s Tea Identity<\/strong><\/p>\n Turkish tea lacks a global identity. This is most obvious in the U.S. market. Searches for Turkish teas on leading sites like Upton and Adagio produce \u201cno results found.\u201d Amazon list 60 hits for Caycur and none for either Of\u00e7ay or Bogus. There are few reviews, with mixed evaluations. There is a broad split between special and a weaker tourist tea. The teas are small leaf, lowish in tannin and very inexpensive. Prices are mostly under $15 a pound and teabags 15 cents. There are a few distinctions among the teas, with Filiz grade seen as the most selective. Ads uniformly highlight the better brands being pesticide-free.<\/p>\n While the plans and priorities for the JDE- Of\u00e7ay venture are unclear (it is awaiting approval from Turkey\u2019s regulators), it seems likely that identity will be among them, enabled by JDE\u2019s international supply chain and distribution strengths. Brand awareness follows from this. Distinctive teas from anywhere find enthusiasts and tea lovers are looking for new teas to get enthusiastic about. It seems sure that Of\u00e7ay has underexploited brand opportunities. It thrives in a culture that may not quite live on tea but loves it. It has \u201cidiosyncratic\u201d features. Will it join such niche entrants as Colombia\u2019s and Vietnam\u2019s wild black teas or neighbor Georgia\u2019s Ghmerti organics?<\/p>\n Source: <\/p>\n Tea in Turkey is marked by a vibrant culture, limited industry and weak identity. These may all be invigorated by the joint venture announced at the end of September between the Dutch-based Jacobs Douwe Egberts (JDE) and Of\u00e7ay, one of Turkey\u2019s leading tea producers. The two will mesh operations under one organizational umbrella. The partners<\/p>\n\n
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