Consumer Survey on Sustainable Tea & Coffee …trustea.org/pdf/Consumer Survey on Tea and...

Consumer Survey on Sustainable Tea & Coffee Consumption

Author: Dr Savita HanspalResearch Direction: Viraf M. Mehta, Shatadru ChattopadhyayResearch Co-ordinators: Onkar Singh, Saji M. KadavilResearch led by: Savita Hanspal in New Delhi

Bharathi Ghanashyam in BangaloreResearch Support: Sujatha Ganesh

© Partners in Change 2010

Published by:Partners in Change C-75, South Extension Part II New Delhi 110049 Tel: + 11 441642348-51

Design and Layout: The Pen and Mouse, Bangalore

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Preface 8

Foreword 9

Executive Summary 10

Chapter I Introduction and Review of Existing Literature 13

Chapter II Research Methodology 26

Chapter III Consumption and Purchase of Tea & Coffee: Individual Consumers 30

Chapter IV Consumption and Procurement of Tea & Coffee: Institutional Consumers 41

Chapter V Attitude of Individual Consumers towards Sustainable Tea & Coffee 46

Chapter VI Attitudes of Institutional Consumers toward Sustainable Tea & Coffee 50

Chapter VII Summary of Findings 56

Appendix 59

Bibliography 63

Contents

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Tables

Table 1.1: Consumption of Coffee in India– Volume Trends 17

Table 1.2: State-wise Consumption of Coffee in India (Urban+Rural) 17

Table 1.3: Changing Consuming Households 20

Table 3.1: Summary of importance of factors* influencing choice of tea & coffee 38

Table 4.1: Modes of institutional tea & coffee supply 41

Table 4.2: Factors influencing institutional purchase of tea & coffee 42

Table 4.3: Institutional procurement process for tea & coffee 43

Table 4.4: Employee feedback on tea & coffee 44

Table 4.5: Institutional sources of information for tea & coffee 45

Table 5.1: Consumer awareness about tea & coffee 46

Table 5.2: Information needs of consumers 47

Table 5.3: Conditions for paying extra for sustainable tea & coffee 47

Table 5.4: Problems in purchasing sustainable tea & coffee 48

Table 6.1: Institutional awareness about Tea & coffee 50

Table 6.2: Institutional role in promoting sustainable tea 51

Table 6.3: Institutional role in promoting sustainable Coffee 52

Table 6.4: Problems in purchasing sustainable tea 53

Table. 6.5: Problems in purchasing sustainable coffee 53

Table 6.6: Potential benefits from introducing sustainable products 54

Tables

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Fig. 2.1: Gender composition of the sample 27

Fig. 2.2: Age composition of the sample 28

Fig. 2.3: Geographical distribution of the sample 28

Fig 2.4: Educational qualifications of respondents 28

Fig. 2.5: Occupational status of respondents 28

Fig. 2.6: Family income of respondents 29

Fig. 3.1: Preference for tea & coffee 30

Fig. 3.2: Changing the brand/source of supply 30

Fig. 3.3a: Frequency of consumption: Tea 30

Fig. 3.3b: Frequency of consumption: Coffee 30

Fig. 3.4: Tea Consumption by Gender 31

Fig. 3.5: Coffee consumption by gender 31

Fig. 3.6: Tea Consumption among age groups 31

Fig. 3.7: Coffee consumption among age groups 31

Fig. 3.8: Tea consumption by geographical area 31

Fig. 3.9: Coffee Consumption by geographic area 32

Fig. 3.10: Tea consumption amongst differently educated 32

Fig. 3.11: Coffee consumption among different educational groups 32

Fig. 3.12: Consumption of tea amongst different occupational groups 32

Fig. 3.13: Coffee consumption among different occupations 33

Fig. 3.14: Consumption of tea among different income groups 33

Fig. 3.15: Coffee consumption by different income groups 33

Fig. 3.16: Loyalty to source of supply 33

Fig. 3.17: Supplier loyalty and demographics 34

Fig. 3.18: Type of supplier used for purchase 35

Figures

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Fig. 3.19: Form of purchase 35

Fig. 3.20: Importance of price tea & coffee 35

Fig. 3.21: Importance of quality 35

Fig. 3.22: Importance of taste 36

Fig. 3.23: Importance of Flavour 36

Fig. 3.24: Importance of environmental concerns 36

Fig. 3.25: Importance of social concerns 36

Fig. 3.26: Importance of impact on health 36

Fig. 3.27: Importance of family 37

Fig. 3.28: Importance of peers 37

Fig. 3.29: Importance of familiarity with the supplier 37

Fig. 3.30: Importance of reputation of the supplier 38

Fig. 3.31: Importance of certification 38

Fig. 3.32: Importance of promotions and discounts 38

Fig. 3.33: Sources of information: tea & coffee 39

Fig. 4.1: Modes of payment for tea & coffee 41

Fig. 4.2: Quantity of tea & coffee purchased 41

Fig. 4.3: Institutional source loyalty 42

Fig. 4.4: Institutional sources of purchase 42

Fig. 5.1: Consumer awareness of sustainable tea & coffee 46

Fig. 5.2: Willingness to pay extra 47

Fig. 5.3: Extent of extra payment 47

Fig. 6.1: Institutional awareness about sustainable tea & coffee 52

Fig. 6.2: Extent of institutional willingness to pay extra 52

Fig. 6.3: Use of other sustainable products 55

Fig. 6.4: Intention to initiate purchase 55

Fig. 6.5: Duration for implementation 55

Figures

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Background

At the World Summit on Sustainable Development (WSSD), held at Johannesburg, South Africa in 2002, changing unsustainable patterns of production and consumption was

singled out as one of the main elements of sustainable development. WSSD called for fundamental changes in the way societies produce and consume goods and services and reiterated that all countries should promote sustainable consumption and production patterns, with developed countries taking the lead.

Sustainable consumption affects demand as it is about the kind and quantity of products we consume. Consumers might be unwilling to decrease their consumption unless they are educated on the impact their consumption patterns have on future generations. Therefore they would have to be sensitized on the scarcity of resources and the consequences of wasteful use in production.

The UN Guidelines for Consumer Protection define sustainable consumption as “meeting the needs of present and future generations for goods and services in ways that are economically, socially and environmentally sustainable.” The principles required nations to:

• Respect the earth and life in all its diversity; to care for the community of life with understanding and compassion

• Adopt patterns of consumption and production which safeguard human rights and community well-being as well as the regenerative capacities of the earth and to ensure that economic activities at all levels promote human development in an equitable and sustainable manner

• Encompass the principles of moderation and sufficiency as means of curbing social, economic and environmental imbalances and of stimulating responsible consumption

All members and organisations of society, including producers, suppliers, governments and consumers share responsibility for promoting

CHAPTER IINTRODUCTION

sustainable consumption and need to be involved in the process.

The UN suggests, “Governments should promote the development and implementation of policies for sustainable consumption and the integration of those policies with other public policies.” Further, “Governments, in partnership with business and relevant organisations of civil society, should develop and implement strategies that promote sustainable consumption through a mix of policies that could include regulations..”1 Consumers should take responsibility for demanding information on sustainable products and services and choosing such products that satisfy these criteria.

Implementation of sustainable development takes place most appropriately at the regional level. Regional sustainable development is influenced by the ability of enterprises, particularly small and medium entreprises (SMEs) to create strategies that confer sustainable competitive advantages on the local and global markets.

Eco-labels can be useful tools to guide the consumers through their shopping behaviour. They provide information to consumers about product characteristics, particularly related to environmental factors. These might not be readily apparent.

Environmental qualities are often experience or credence attributes. Consumers can verify given green products claims in some cases only after they have used the products. Further, they cannot verify if the claim the products make are true without consulting experts.

1 UN Guidelines for Consumer Protection, p.8;http://www.un.org/esa/sustdev/publications/consumption_en.pdf

Chapter I - Introduction

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Eco-labels provide warranties that the products or services comply with certain pre-determined environmental – and social criteria. Eco-labels also guide consumers in choosing products and services which are thought to be less harmful to the environment than other products within the same categories.

These labels should also stimulate the development of products and services that are associated with a lesser environmental burden compared to equivalent products.2 The present study focuses on two basic beverages, i.e. tea and coffee, consumed the world over in considerable quantities that must carry eco labels.

Sustainable coffee

“Sustainable coffee is produced on a farm with high biological diversity and low chemical inputs. It conserves resources, protects the environment, produces efficiently, competes commercially and enhances the quality of life for farmers and society as a whole.”3

Sustainable coffee is a melange of cultural, political, environmental, economic and agronomic influences. Many sustainable coffees are ‘shade grown’, meaning that a canopy of trees covers the actual coffee plants, allowing for a slower growing cycle and time for the sugars in the coffee beans to mature. These shade trees also provide a natural habitat for migratory and other birds, thereby working hand-in-hand with the environment. While some plantations employ forest-like conditions such as those found in untouched rainforests, other coffee growers use a combination of trees such as banana, citrus and timber for shade as well as income derived from the tree products.4

2 Golan et al., 2001, pp. 127-1283 Smithsonian Migratory Bird Center, First Sustainable Coffee Congress overview paper 4 Sosa, Elaine “Sustainable Coffee: The Road Back for Nicaragua?” www.sallys-place.com

It is not uncommon for sustainable coffee farms to be family-owned or run as co-operatives, where emphasis is placed on the worker, his education, livelihood and general well-being. As important as this is to the producers themselves, this is also an important concern of many consumers today, as a heightened awareness of working conditions around the world is dictating buying decisions.

The time, care and concern which go into producing sustainable coffee means that the consumer is expected to pay more for the end product. The high quality however makes it worthwhile.

Certification of coffee

Certified coffees (Organic, Fair Trade, Bird-Friendly, Rainforest Alliance, Utz CERTIFIED and Starbucks C.A.F.E. Practices) make up only about 4 per cent or about 220,000 metric tons of world’s green coffee exports. The U.S. is a major importer of various types of certified coffee, which make up nearly 8 per cent of green bean imports. There are three certification labels that focus largely on ecological standards i.e. Organic, Rainforest Alliance, and Bird-Friendly.5

UTZ CERTIFIED and Fair Trade

UTZ CERTIFIED and Fair Trade are two leading coffee certification programmes. They share a vision of jointly working together towards more sustainable coffee. However, they are not the same as different certification schemes carry and provide different tools that allow the coffee sector to be more sustainable and responsible. UTZ Certified has some environmental standards, but is the least stringent when it comes to biodiversity preservation.

Indian coffee

Indian coffee is grown in a very narrow and restricted belt in the states of Karnataka, Tamil Nadu and Kerala. The area under coffee cultivation is around 3,40,306 hectares, with a ratio of about 50/50 of Arabica and Robusta coffee. The annual yield is approximately 300000 M.T. About 70 per cent of the produce is exported. Around 98 per cent of the plantations are owned by small growers who own less than 10 hectares of land.6

5 http://www.coffeehabitat.com/2008/07/what-is-the-market-share-of-certified-coffees.html 6 http://www.ineedcoffee.com/02/indian/Eco-Friendly Indian Coffee: A Profile

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(Mysore) region, and Kerala and Tamil Nadu are the other main regions. Most of India’s shade coffee comes from Karnataka, but the majority of India’s arabicas are also shade grown. Another interesting coffee from India is ‘monsooned’ coffee made from green beans left exposed to monsoon rains in open warehouses. The beans turn tan coloured, the acidity is reduced, and the beans are sweeter.

Most of the coffee plantations are situated in remote and uninhabited areas, where crops have not previously been grown. Hence, plantation workers are mostly migrants. These labourers are often provided housing in the estates itself along with facilities for shops, services and community activities such as recreation and cultural expressions.

The Indian coffee industry witnessed a major crisis caused by falling coffee prices in 1990s. The fall in coffee prices led to closing down of production by small and medium sized coffee plantations, resulting in loss of jobs for thousands of coffee workers. The crisis also impacted wages paid to the workers, resulting in loss of income, food and clothing and medical facilities. Workers children stopped going to school and began to work along with them to augment family income. Many small growers are debt-ridden and few have even committed suicide due to falling prices and indebtedness.

The Coffee Board of India

The Coffee Board of India7 is an autonomous body, functioning under the Ministry of Commerce and Industry, Government of India. The Board serves as a friend, philosopher and guide of the coffee industry in India. Set up under an Act of the Parliament of India in 1942, the Board focuses on research, development, extension, quality upgradation, market information, and the domestic and external promotion of Indian coffee.

7 http://www1.indiacoffee.org/userfiles/Dtbs-1.pdf

Coffee plantations in India use traditional methods and cultivate shade-grown coffees under three-tiered canopies of wild and introduced trees. A lot of care is given to the selection of trees to be introduced. The primary shade or the lower shade is taken care of by nitrogen fixing Erythrina indica or by Glyrecedia maculata. These enrich the soil by harvesting atmospheric nitrogen and in turn give it to the coffee plant. The secondary shade is that of trees like silver oak, white and red cedar that shed their leaves in the monsoons and put forth a rich canopy during the summer. These trees are specifically selected because they act like biomass factories and thereby keep the soil temperatures low. Lastly, the tertiary shade is of the hardwood species, which attract rain-bearing clouds. This three-tier shade system aids to filter harmful U.V. radiation. Further, the filtered sunlight enables the sugars in the coffee bean to caramelize uniformly and give it a unique taste. While growers are environmentally conscious at every step of cultivation, they are also beneficial, socially and economically to millions of farmers and allied households.

Indian coffee is by and large associated with forest grown coffee and mechanization is kept to a bare minimum in Indian coffee plantations. Haphazardly arranged trees are characteristic of such plantations. The soil is virgin and efforts to mechanize the plantation are kept to a minimum in order to retain sustainable eco-friendly systems. The leaf litter from the trees acts like a sponge for the rainwater to absorb into the ground and this prevents runoff and soil erosion. This not only contributes to the soil fertility, but also protects the precious soil from weathering and other undesirable factors. Most coffee plantations are located in regions with average to heavy rainfall, yet even if there is a shower of 10 cms on one single day, there is no runoff inside the plantation because of the thick mulch, which acts as a blotting paper, allowing the water to slowly percolate downward.

Mono-cropping is an exception in Indian coffee plantations and multi-cropping is popular. No other plantations in the world have the range of diversity that Indian coffee plantations have. This is owing to multiple, mixed cropping systems. Pepper vines are grown on shade trees, while cardamom, areca nut, ginger, citrus, vanilla and a few other spices are grown as multiple crops inside the coffee plantations. The matted roots of various crops that intertwine with one another culminate to give Indian coffee a spicy aroma.

Indian coffees are often grown on terraced mountainsides. Indian arabicas (about half the crop) are known as plantation coffee, while the robustas are known as parchment coffee. Most coffee is grown in the Karnataka


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Before devising any strategy for growing domestic coffee consumption, the Coffee Board commissioned a comprehensive, nationally representative study on beverage habits, practices and attitudes. The third formal study was conducted by the Coffee Board in 2005. The report was commissioned to understand:

• Habits and practices with respect to coffee consumption of urban (South and North) and rural (South) consumers in India

• Coffee consumption by location and form • Share of coffee in the daily basket of beverages

consumed

• Attitudes towards coffee and drivers and barriers to coffee consumption

• Café habits

It covered all-India consumption by zones, age, gender and socio-economic classification (SEC) and attitudes towards coffee. The findings of the study revealed that the per capita consumption of coffee in India was 75 grams. The proportion of people consuming the beverage in the last 12 months increased in 2005 to 62 per cent from 59 per cent in 2003. 52 per cent preferred instant coffee and 15 per cent used R&G (filter coffee). About 94 per cent respondents consumed tea.

The study classified consumers into the following categories:

• Non-drinkers (38%)- did not consume coffee in the past 12 months

• Occasional drinkers (40%) - consumed coffee in the past 12 months but not yesterday

• Coffee drinkers (22%) - consumed coffee yesterday

On the basis of quantity consumed, the consumption was subdivided into light (1-2 cups a day); medium (3 cups a day) and heavy (4 or more cups a day). It highlighted that the potential for growth of

consumption lay with occasional drinkers and more so in North and Eastern zones where the occasional drinkers were maximum in number i.e. 64 per cent and 52 per cent respectively. Further, between 2003 and 2005, there was a marginal reduction of non-drinkers but the proportion of occasional drinkers remained the same.

The research also found that most of the daily consumption was at home. During 2005 about 24 per cent also consumed it away from home- a marginal increase of 2 per cent over the previous estimate of 22 per cent. Consumption of coffee away from home was mainly at restaurants (45%) and hot teashops (40%). Cafes and vending machines were also becoming more visible in the out-of-home segment.

The study estimated that during the year 2005, the total volume of coffee consumption was 80,200 MT with an urban and rural divide of 58,500 MT (73%) and 21,700 MT (27%) respectively, representing an overall increase of 9900 MT or 7 per cent annual growth over the 2003 consumption of 70,300 MT (with an urban and rural share of 49,600 MT and 20,700 MT respectively). About 64,405 MT was consumed in south India, an 80 per cent share of all India consumption of 80,200 MT. In the south, Tamil Nadu was the largest coffee consuming state with an estimated volume of about 22,000 MT (34%) closely followed by Karnataka with 19,000 MT (30%). Andhra Pradesh and Kerala accounted for consumption of about 13,000 MT (20%) and 10,000 MT (16%) respectively. In the south zone, instant and filter coffee had an almost equal share. In other zones, instant coffee was more predominant. The study also reported on volume of urban and rural consumption (Table 1.1) and state wise consumption (Table 1.2).

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Table 1.1: Consumption of Coffee in India– Volume Trends

2005 Instant % R&G %

Overall 52 48

Urban 59 41

Rural 45 55

2003 Instant % R&G %

Overall 51 49

Urban 53 47

Rural 47 53

Table 1.2: State-wise Consumption of Coffee in India (Urban+Rural)

2003 Share (%) 2005 share(%)

T.N 0.35 0.34

Karnataka 0.27 0.30

AP 0.20 0.20

Kerala 0.18 0.16

South 0.92 0.80

Non-South 0.08 0.20

Another study was commissioned by the Board on attitudes of consumers towards coffee with respect to quality, variety, price and additives especially chicory; positive and negative associations related to consumption as well as drivers and barriers to coffee consumption etc in 2006-07. It found that both coffee and tea enjoyed high spontaneous recall followed by plain milk and carbonated soft drinks. While 66 per cent of the respondents recalled tea, only 22 per cent recalled coffee as the first beverage. Top-of–the-mind recall of coffee was higher in traditional coffee strong holds such as Tamil Nadu and Karnataka. Across the country top-of-the-mind recall for coffee was higher among SEC A, B & C than SEC D (the lowest socio-economic strata). The study revealed that in Tamil Nadu, coffee had moderate association as a family beverage but was strongly associated with special occasions and hence had a higher status association. In Karnataka, coffee was very strongly associated as a family beverage. Interestingly, it also had special/high status perceptions. In Andhra Pradesh, perception of tea was very close to coffee on key dimensions. Tea came across mainly as an evening cup. In Kerala, tea

had higher positive associations on key dimensions of family, health and status. In the North, East and West, coffee was largely a social drink. Coffee was associated with high status, modernity and antidote for cold weather suggesting it was a special and occasional drink.

Health was a big barrier to more frequent consumption among those who drank only one cup of coffee a day. Among occasional coffee drinkers and non-drinkers, habit, non-consumption by other family members and price were key barriers. Taste was an additional barrier among non-drinkers in North, East and West and Tamil Nadu. Coffee as any other drink was habit-forming. Family drinking was a key for early adoption; most regular and occasional drinkers started drinking coffee at the age of less than 10 years at home, and were introduced to it by a family member. The exception was the North, where most were introduced to coffee by a friend and started consuming it outside home.

Tea Sustainability8

Sustainable tea is the talk of the town, but “sustainable” is an over-used and abused word regularly taken out of context. “Sustainable” means to maintain or keep something going. In contemporary crop commodity terms, this means measured use of environmental resources. For commodities like coffee, cocoa and tea produced in tropical developing countries, the word is used in a broad term and context to describe a programme for boosting general livelihood and quality of life of tea growers and communities, while maintaining environmental integrity.

Growers are only one side of the tea equation. Sustainable tea will work only if consumers keep on

8 Dr. Terry Mabbett (December, 2008). Environmentally Hot Tips Sustain the Price of Tea Tea and Coffee


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drinking the beverage and those in the middle, the packers and distributors, are able to buy and sell at a profit. That is why one-sided price manipulation in favor of growers and at the expense of consumers is laudable but unsustainable. Tea producing countries as distant and different as China, India, Sri Lanka, Indonesia, Turkey and Kenya are badly hit by oversupply across the world and fall in real prices for tea.

Unilever, the world’s largest tea company, could be on the way to unlocking secrets to sustainable tea with a balanced approach that benefits producers without penalizing consumers. As the international buyer of 12 per cent of the world’s black tea and seller of finished, packaged tea products in 130 countries, Unilever is in a pivotal position to make a significant impact and difference. Unilever formally announced its aims in mid 2007. Consumer focus is on the UK, a market downing 60 billion cups a year.

Indian Tea

Tea had been known for millennia in India as a medicinal plant, but was not drunk for pleasure until the British began to establish plantations in the 19th century. Darjeeling tea, from the Darjeeling region in West Bengal has traditionally been prized above all other black teas, especially in the United Kingdom and the countries comprising the former British Empire. The Chinese variety is used for Darjeeling tea, and the Assamese variety, native to the Indian state of Assam, everywhere else.

The British started commercial tea plantations in India and in Ceylon. In 1824 tea plants were discovered in the hills along the frontier between Burma (Myanmar) and the Indian state of Assam. The British introduced the tea culture into India in 1836 and into Ceylon (Sri Lanka) in 1867.

India was the top producer of tea for nearly a century, but was displaced by China in the 21st

century. Indian tea companies have acquired a number of iconic foreign tea enterprises including British brands Tetley and Typhoo. While India is the largest consumer of tea worldwide, the per-capita consumption of tea in India remains a modest 750 grams per person every year

Tea is cultivated in the high ranges of North and South India and the best quality is known as CTC and Orthodox Assam Tea, respectively. The consumption is above the 600 million kg mark per year. The market consists of both leaf and dust teas both in the CTC and Orthodox Grades, with the southern markets consuming more dust teas. Nearly every part of the country has a tea-growing region. Approximately 4 per cent of the national income of India comes from its tea and India is home to over 14,000 tea estates. The geography of India allows for many different climatic conditions, and the resulting teas can be dramatically different from each other. There are three main kinds of tea produced in India:

Assam

Assam tea comes from the north-eastern region of the country. This heavily forested region is home to much wildlife, including the rhinoceros. Tea from here is rich and full-bodied. It was in Assam that the first tea estate was established, in 1837.

Darjeeling

The Darjeeling region is cool and wet, and tucked in the foothills of the Himalayas. The tea is exquisite and delicately flavored, and considered to be one of the finest teas in the world. The Darjeeling plantations have three distinct harvests, and the tea produced from each ‘flush’ has a unique flavour. First flush teas are light and aromatic, while the second flush produces tea with a bit more bite. The third or autumn flush gives a tea that is lesser in quality.

Nilgiri

This tea comes from an even higher part of India than Darjeeling. This southern Indian region has elevations between 1,000 and 25,000 metres. The flavours of Nilgiri teas are subtle and gentle. They are frequently blended with other, more robust teas.

Tea Board of India

The genesis of the Tea Board of India dates back to 1903 when the Indian Tea Cess Bill was passed. The Bill provided for levying a cess on tea exports - the proceeds of which were to be used for the promotion of Indian tea both within and outside India. The present Tea Board set

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up under section 4 of the Tea Act 1953 was constituted on 1st April 1954. It has succeeded the Central Tea Board and the Indian Tea Licensing Committee which functioned respectively under the Central Tea Board Act, 1949 and the Indian Tea Control Act, 1938 which were repealed. The activities of the two previous bodies had been confined largely to regulation of tea cultivation and export of tea as required by the International Tea Agreement then in force, and promotion of tea consumption. The present Tea Board functions as a statutory body of the Central Government under the Ministry of Commerce. The Board is constituted of 31 members (including the Chairman) drawn from Members of Parliament, tea producers, tea traders, tea brokers, consumers, and representatives of governments from the principal tea producing states, and trade unions . The Board is reconstituted every three years and has its headquarters in Kolkata.

The Tea Board of India is responsible for the assignment of certification numbers to exports of certain tea merchants. This certification is intended to ensure the origin of the tea, which in turn would reduce the amount of fraudulent labelling on rare teas such as those harvested in Darjeeling. Tea Board India’s tasks include endorsement of the diverse production and productivity of tea, financial support of research organizations and the monitoring of advances in tea packaging as it relates to health beneficial aspects.

The export market for Indian teas is mainly in the Russian and CIS countries with 90 Million Kgs of the total exports in 1998 going to these countries. This is equivalent to 43 per cent of India’s tea exports. The other countries that import Indian tea include most of the European Countries, U.S.A., Japan, West Asia and the Asia Pacific region. In fact there is hardly any country where Indian tea is not exported

Social and Environmental Standards and Supply Side Interventions in the Indian Tea and Coffee Sector

The most significant legislation governing labour standards and working conditions in plantations is the Plantation Labour Act of 1951. The other relevant legislations are the Factories Act of 1948, Workmen’s Compensation Act, Industrial Dispute Act 1947, Minimum Wages Act of 1948, Employers’s Provident Fund Act, Industrial Employment Act, Payment of Bonus Act, Maternity Benefits Act of 1961, and Employers’ Social Insurance Act. Among these, the Plantation Labour Act regulates employment, working conditions and working hours, and forms the principal basis of legal entitlement of the workers.

The Plantation Labour Act, 1951 (PLA) applies to any land used or intended to be used for growing tea, coffee, rubber, cinchona or cardamom or any other plant which measures five hectares or more and in which 15 or more workers are employed on any day of the preceding 12 months. Despite various provisions related to workers’ welfare present in the PLA, 1951, it remains silent on two key aspects, i.e. environmental issues and occupational health and safety norms. It also legalizes working of adolescents (between the ages of 14 and 18 years) at a cheaper rate than adult workers. Also, many provisions of PLA have never been implemented or only partially implemented in the big company owned plantations. Moreover, the regulations do not cover small plantations employing less than 15 workers.

Fair Trade Tea Certification and Principles9

Fair Trade tea certification and principles empower farmers and farm workers to lift themselves out of poverty by investing in their farms and communities, protecting the environment, and developing the business skills necessary to compete in the global marketplace.

Role of Consumers in Promoting Sustainable Tea and Coffee Consumption

Consumers are key drivers in sustainable production and consumption and promoting sustainable development. Historical factors and agents influence the preference of consumers which have evolved over a period of time. Consumer preferences are heterogeneous and they have a decisive role in the value chain of tea and coffee in the domestic market. The agents and actors in the buyers’ chain make tea and coffee dependent upon

9 http://www.learn-about-tea.com/fair-trade-tea-certification.html


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the nature of the consumers at various levels and strata of society.

Changing Structure of Indian Consumer Market

The consuming population in India has been classified into different categories on the basis of their annual income and this structure is changing as incomes increase and poverty levels decline (Table 3).

Table 1.3: Changing Consuming Households

Annual Income (INR) at 1994-95 prices

Con- sumer Classi- fication

No. of households ( in millions)

1995 2000 2006

Destitute Hand-to-mouth existence

35 24 17

Aspirants New entrants into con-sumption

48 32 33

Climbers Cash con-strained benefit seekers

48 66 78

Consumers Cost benefit optimizer

29 55 75

The rich Benefit maximizer

1 3 6

Total no. of households (in millions)

161 180 209

The Changing Face of the Indian Consumer

Favourable demographic, economic, social and psychographic changes relating to India’s consumer class are driving a consumption revolution in the country. The continuously evolving consumer segment in India is the youngest in the world with a median age of 24 as compared to other developed economies like the USA where the ‘baby boomers’ generation is now greying.

With globalisation and almost five million Indian tourists travelling overseas every year, the exposure of Indian consumers to international brands has vastly increased. The promotion of India as a tourist destination has also led to foreign brands wanting to establish presence here. Consumers today have greater purchasing power. Due to a proliferation of TV channels and growth of the world-wide web, they are now exposed to global media and brands. They have discovered products and services as well as lifestyles that emphasize the use of eco-friendly, sustainable products.

The size of the family is becoming smaller as the number of nuclear families is on the increase and the decisions for marriage and having children are being delayed. The number of children in a family is reducing implying that there are fewer members to share the higher disposable incomes, making a better lifestyle more affordable and leading to a greater concern for improved health. With the spread of education and awareness, consumers are becoming increasingly concerned with using good quality products and the impact of their consumption on the society and the environment. Special groups of consumers are keeping an eye on business and exerting pressure on it to become more environmentally and socially responsible. The workplace is becoming global and consumption preferences are, therefore, changing as exposure to new brands is received there.

Changes are also taking place at the policy-making levels of policy making in response to the mounting international pressure to encourage sustainable production and consumption practices. Consequently, the government is also encouraging greater efficiency in the use of energy and resources and promoting products that save energy or use renewable sources of energy. It is earmarking greater resources for promoting research and development in environmentally sound technologies, encouraging the use of renewable natural resources and the introduction of more environmentally sound products.

Through its awareness campaigns, it is assisting individuals and households to make environmentally sound purchasing decisions. The

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government, in cooperation with industry and other relevant groups, is encouraging environmental labelling and other environment related product information programmes designed to assist consumers to make informed choices.

Market research suggests that sophisticated Indian consumers already place importance on whether products are sourced ethically and sustainably. A 2007 IMRB survey of 10,000 Indian socio-economic class (SEC) A, B, and C consumers showed that 30 per cent of consumers believe it is important that companies act ethically and 30 per cent would be willing to pay more for environmentally friendly products. A 2007 McKinsey and Co. study revealed that 42 per cent Indian respondents said that they would be more inclined to buy from food and beverage companies that developed more environmentally friendly products. A 2008 independent study identifies a “greener apparel” consumer segment, made up of 13 per cent Indian urban consumers, who are willing to spend more on certified, environmentally friendly clothing.

Rationale of the study

Consumption as measured by the Greendex is determined both by the choices consumers actively make, such as repairing rather than replacing items, using cold water to wash laundry, choosing green products rather than environmentally unfriendly ones- and choices that are controlled more by their circumstances – such as the climate they live in or the availability of green products or public transport. The initiative considered both of these factors, with 60 percent of the 65-variable index based on choice or discretionary behaviour.

The Indian tea and coffee sectors continue to face the challenges of sustainable supply chain management. Due to the fall of global prices during the 1990s, the tea and coffee industries suffered heavily and led to impoverishment and acute indebtedness among small-holder tea and coffee growers. Indian tea and coffee small holders continue to face the following challenges:

• Fluctuation of tea and coffee prices and very low levels of price realization especially in the peak season.

• Inability of small growers to access international market directly

• Lack of influence of small holders at the higher end of the value chain (marketing and retailing)

• Limited or no opportunities for small holders to improve quality, social and economic standards as their produce fetches low prices.

• Increasing cost of labour and lack of proper facilities for labourers working in the small holdings.

• Low levels of awareness among consumers and purchasing agencies on issues of social, economic and environmental sustainability.

Economic growth and transfer of wealth through supply chains does not necessarily ensure fair distribution and hence does not help small holders and poor people in the lower end of the value chain. As a result the small holders in the tea and coffee sector are still vulnerable to unfair terms of trade.

Trading relationships and the behaviour of buying organizations influence the flow and allocation of economic resources and have a very significant impact, both direct and indirect on poverty, social and environmental conditions and the development of economies. Buying organizations,by not understanding their role, are inadvertently accentuating inequality or damaging fragile social, economic and environmental resources.

In its 4th report on Corporate Social Responsibilities (CSR) in India (06-07) conducted by Partners in Change (PiC), an increasing number of corporations responded with increased awareness levels and CR consciousness. 99 percent of the respondents displayed higher awareness levels and CR consciousness in 2006 as compared to 84 percent of respondents in 2003. Increased awareness was also reported on the social, environmental and supply chain management issues among the public, private and MNCs operating in India.

Better governance of procurement and more transparency are required to secure the trust of the client, suppliers and consumers. Purchasing organizations must be aware of and accountable for the effect of their actions both directly and indirectly in the supply chain. Increasing levels


22


of awareness and knowledge among purchasing organizations about the implications of their approach and decisions on overall commercial relations in general and on poverty mitigation in particular has started gaining currency worldwide. It is time for Indian organisations to start taking notice of the implications of purchasing decisions.

The 1990s witnessed a drastic change in the government policy on economic development. The economic liberalization has led to a boom in the Indian economy leading to emergence of a large section of middleclass consumers apart from increase in income at the lower end of the pyramid. Increased disposable incomes in the hands of the Indian middleclass have led to increased consumer power in Indian society. This has also led to exploration of new avenues of consumption by the Indian consumers. Increased consumer choice plays a role in their economic, social and environmental footprints. Governments and businesses therefore have a responsibility to ensure that economically, socially and environmentally relevant options are available and affordable to all consumers especially those living in the developing countries, majority of them are not yet addicted to unsustainable products. As economies grow and consumption patterns change, greater efforts need to be directed towards promoting sustainable consumption leading to sustainable development.

MNCs and companies fail to communicate responsible business related products in India. Advertisement and promotional schemes hardly address the issue of social and environmental responsibilities at production level. Taste and preference of consumers are not cultivated automatically. They are constructed consciously over the period. Similarly procurement agencies and retailers also have a major role in cultivating the choice of consumers.

The concept of social responsibility at the production level does not get exposure in the process of the

market intervention of big companies. Effective communication could be one of the missing links along with the other standard factors between potential consumer demand and purchasing behaviour.

In the context of these developments, given the fact that workers and small tea and coffee growers continue to live in abject poverty, and the companies refuse to take on the issues in the environment in which they operate, there is a need to understand consumer consumption pattern of sustainable tea and coffee so that the process of improvement in the tea and coffee industries is driven by the ultimate choice of the consumer.

Importance of the study

The social, environmental and economic behaviour of business enterprises have direct impact on human lives. These factors are emerging as focal points in the tea and coffee industry. This gives the opportunity and the space for wide ranging discussions at various levels. There is a demand from consumers, CSOs and even government for products which are socially and environmentally sustainable and for CSR commitment across the supply chain that will contribute to sustainable economic development.

Globally, various types of consumer behaviours have been observed such as the selection of products based on criteria of environmental and social responsibilities as well as consumer boycotting. This pattern therefore calls for involving employees, their families, the local community and society at large to improve the quality of life in ways that are both good for business and for development.

CSR practices have remained confined to few big companies, and even there CSR is still equated with philanthropy and have not been integrated within core business strategies. The global tea and coffee brands often pass on the costs of necessary improvements down the supply chain to their suppliers while claiming the reputational benefits of these improvements as well as the commercial gains from their CSR stance. The growing NGO movement and consumer campaigns are demanding that large companies take responsibility for the entire supply chain.

Small tea and coffee growers and workers in India are in difficulty owing to distortion of trade practices at both domestic and international levels as well as control of MNCs over the global tea and coffee market. MNCs are currently engaged in moving away from production processes and limit themselves to organizing and managing commodities i.e. tea, coffee, garments, footwear, consumer electronics. A core area of CSR is the role and rights of workers. Fair wages, working hours and conditions, child-

23

care centres, heathcare, redundancy, protection against unfair dismissals etc have been the key issues which CSR policies have addressed.

Women workers constitute the majority in both large and small tea gardens in India. Women are also stakeholders as customers, shareholders, suppliers, supply chain workers, and community members. Despite this, their role in decision-making processes is not frequently discussed. Whether from a social justice, stakeholder or business case perspective, CSR should systematically address the question of gender equality.

CSR policies that are currently being practiced in tea gardens give rise to questions about whether the tea sector implements them for economic reasons or because CSR policies have intrinsic merit. As part of CSR trade initiatives big companies like Tata Tea Limited and Hindustan Lever Limited have initiated various projects for the welfare and economic benefits of their workers. There are other CSR initiatives by PDS (Peermade Development Society, in Kerala), USTPA (United Small Tea Producers Association, supported by Partners in Change in Nilgiris), JustChange (Gudalur, Tamil Nadu) and TEAMFCO( Assam) that promote CSR practices in the small holdings and help forge links between big companies and the small tea sector. There are problems in marketing organic tea in domestic as well as in international markets. Though there is a lot of potential in domestic market itself, the lack of different channels and options to expand the market are some constraints. Fair Trade and Ethical Trade Initiatives have impacted small growers positively, though it is more demonstrative in nature and may not be able to replace the normal trade of tea. It is important to emphasize that sustainability is a dynamic continuum and can best be perceived as an ongoing process rather than a static achievement.

In South India, the United Nilgiris Tea Estates Co. and the Bombay Burmah Trading Corporation (BBTC) were among the first companies to convert some of their tea and coffee estates to the organic method of cultivation. More recently, some area under Tata Coffee and the IBC Group estates have been converted. The Poabs Organic Estate in Kerala, growing coffee and tea, is certified organic since 2002. It is now identified as the single largest multi-crop organic plantation in the world. Tea and Coffee Boards in India have also initiated several steps to promote organic coffee production in the country. In the coffee sector, Utz Kapeh certified coffee is growing fast and has reached a substantial size in the sustainable world coffee market. The Utz Kapeh certified coffee estates in India are ABC Group, Tata Coffee Limited, Ottumani Estate, BCK Plantations, B. Shettigeri, S. Kodagu, Bombay Burmah Trading Corporation Limited and Manamboli-Savamalai Estate. The Utz- Kapeh certification is given

by the Indian subsidiary of the Netherlands based SKAL international.

One of the biggest coffee producers in India, Tata Coffee has also successfully implemented the Social Accountability System (AS 8000: 2001) in their plantation division, the curing division and roasting and the grounding unit at Kushalnagar and received a certificate issued by the Det Norske Veritas. Apart from this, Tata Coffee is involved in activities through the Coorg Foundation, a charitable trust established by the company. Tata Coffee has also been engaged with the small coffee growers through its Small Growers’ Development Scheme, started in 1985.

Recently, Solidaridad and Utz Certified have started working together for jointly developing and implementing the Utz Certified Global Tea Code. In India, Solidaridad is facilitating consultation with various stakeholders for the implementation of India specific Utz code in the tea industry. Solidaridad has initiated this process in close partnership with local NGOs and in close consultation with local stakeholders like producers, Trade Unions, auction houses, tea research institutes, academicians, government agencies and small holders. Utz CERTIFIED has initiated the move of developing a multi-stakeholder independent mainstream code to enhance responsible practices across the tea supply chain through its brand Pickwick. A draft code has been developed based on Utz Certified coffee code and Global GAP standards and after referring to several other codes.

The code addresses sustainable production and sourcing in a broad sense, covering good agricultural practices, social and environmental issues, food safety, quality improvement and traceability. Since tea is produced both by smallholders and large estates, Utz CERTIFIED will implement a certification program that fits both the smallholders and the large scale producers’ situation. The current


24


first draft of the code is designed for estates; an adapted version for smallholders will follow soon.

Review of Existing Literature

A review of the existing literature revealed that research on the consumption and purchase behaviour especially from the point of view of the demand for sustainable products has increased in the developed countries. Studies have focussed on historical movements and developments in the field of sustainable products and organic products; on agricultural practices; on examining the role of NGOs in marketing sustainable products; and on certification; on sustainability barriers, evaluating technology for sustainability; on sustainable product labelling; use of labelling information by the consumers and disposal of waste related to consumption, marketing and purchase behaviour and on sustainable procurement. Some of the prominent studies in the area are briefly described below.

Bodo B. Schlegelmilch et al. (1996) explored five product categories and emphasized that environmental considerations would no longer take a back seat in purchasing decisions, since all other evaluative criteria would become relatively stable. According to them, a wider variety of environmentally-responsible products and services were likely to filter through into the marketplace. The attitudinal component of the environmental domain was observed to be the most important predictor of green purchasing decisions. However, in order to increase consumers’ attitudes towards environmental quality, investigations were necessary to ascertain how environmental attitudes were formed.

A research on the influence of consumer behaviour within the Spanish food retail industry (2001) showed that the ’product type’’ variable influenced food consumer behaviour. Processed products were mainly purchased in supermarkets and

hypermarkets; while fresh products were mostly bought in traditional stores and open markets. The variables of age, educational level and work status were important in deciding on a type of food retail establishment. As age descended and educational levels rose, more respondents preferred hypermarkets. As age increased and educational levels decreased, open markets and traditional shops were preferred

A number of specific case studies were reported, e.g. Yerba Mate tea by Skolnick, Sharon and Ruth (2000) and Thanksgiving Coffee Co. by Satkofsky, Amy (2001).

Danse and Wolters (2003) studied the small and medium-sized organisations in the Costa Rican coffee sector; Courville, Sasha (2003) examined the challenges and considerations in using sustainability indicators for comparison purposes, using coffee supply chains in Mexico and Costa Rica as case studies.

Raynolds, Laura T et al. (2004) examined the ongoing rapid expansion in Fair Trade coffee networks linking Northern consumers with producers in the global South. Giovannucci, and Ponte (2005), examined the dynamics of this new configuration through the case study of sustainability initiatives in the coffee sector. It addressed four questions: (1) Are these standards effective in communicating information and creating new markets? (2) To what extent did they embed elements of collective and private interests? (3) Was the sustainability content actually delivered to their intended beneficiaries? (4) What was the role of public policy in addressing their shortcomings?

Brown (2008) focused on businesses in New Zealand that were prioritizing sustainability. A paper by Lewis and Runsten (2008) examined the links among low coffee prices, migration, and certified coffee production and trade, drawing on a 2004 case study conducted in Oaxaca, Mexico.

Studies stressed that the international fair-trade movement was expanding slowly but steadily (Auroi, 2003). Saravanan, Velayutham (2004) analysed how the colonial project of establishing coffee plantations disturbed the self-subsistent traditional tribal system, damaged the ecology, and resulted in environmental decline in the Shervaroy hills of Madras Presidency during the nineteenth century.

Lyon (2009) explored the local history and daily practice of sustainable coffee cultivation among a group of Guatemalan small coffee growers and investigated the extent to which these were accurately reflected in certification standards and marketing.

The study by S. M. Philpot, et al. (2007) looked at the ecological

25

(vegetation, ants and birds) and economic (yield, revenue) aspects of coffee growing for eight cooperatives in Chiapas, Mexico. Farms were certified organic, organic and Fair Trade, or uncertified. Farmers with organic or organic and fair trade certification did not always have higher revenues than uncertified farms, partly due to the costs associated with certification programmes and the differing market prices between the two years of the study. When market prices increased, the premiums for organic coffee rose, but the premium for Fair Trade coffee did not.

Linton, (2005) reasoned that the movement to promote coffee produced in a sustainable way was one of many efforts aimed at linking social responsibility and market capitalism. In 2008, he conducted a critical review of many sustainability projects and their outcomes, including two examples of smallholder farmer-NGO collaborations that had yielded positive results.

Chakraborty and Srivastava(2008) discussed the key issues related to market access, particularly the impact of environmental measures on the access from an Indian perspective in case of marine products and tea.

Fridell et al. (2008) found that capitalist agriculture was highly exploitative of the producers and the environment. The study revealed that the Fair Trade movement attempted to mitigate this exploitation, by baiting corporate actors into the arena of ’ethical production’. In the coffee industry, major corporations discredited fair trade and branded themselves as ethical. While falling well short of addressing the real demands of the movement, the resulting proliferation of ’ethical’ labels threatened to destroy fair trade’s own ethical brand.

Morgan and Birtwistle (2009) investigated young fashion consumers’ disposal habits. Seonaidh McDonald et al. (2009) compared sustainable consumption patterns across product sectors. Ayse and Uar(2008) studied the Turkish academic staffs’ perception of organic foods. Mei-Fiang Chen (2009) studied the attitude toward organic foods among Taiwanese as related to health consciousness, environmental attitudes, and the mediating effects of a healthy lifestyle. Peter Jones, et al (2008) focussed on sustainable food retailing.

Baker and Ozaki (2008) focussed on the influence of pro-environmental products on consumer purchase decision and investigated if marketing and branding techniques could help establish green brands and introduce greener patterns of consumption into contemporary lifestyles in the current context. The paper reviewed consumer behaviour and advertising to identify how consumers could be persuaded to opt for greener products.

Yates (2008) focussed on the consumer perspective of sustainable consumption. The study found that growing numbers of individuals willing to embrace sustainable consumption were finding it hard to translate this into action. It identified concerns around consumer behaviour and sustainable consumption that prevented sustainable consumption policies from achieving their aims.

Mark Hidson (2008) advocated that Sustainable Public Procurement (SPP) improved the efficiency of public procurement and at the same time used public authority market power to bring about major environmental, social and economic benefits locally and globally.

Neil Jones (2007) stated that getting into sustainable procurement was not easy. During research, he came across large companies tackling common obstacles -- many of which were also drivers of sustainable procurement, like establishing CSR targets, sharing knowledge with suppliers, working with non-governmental organizations and charities, making amendments to contracts, and improving processes, products, packaging, and personnel development.

Some significant research on tea was published by the National Tea Research Foundation (NTRF) on issues related to the cultivation, soil conservation and quality improvement in India. A listing is produced in references.

Thus, the above reveals that a lot of research has been undertaken on labelling, certification, and different aspects related to the consumption and marketing of sustainable tea & coffee in countries other than India. The emphasis on the marketing of certified tea & coffee in India is rather low and hence there is a need to focus on this aspect.


26


CHAPTER IIRESEARCH METHODOLOGY

The Nielsen Global Online Consumer Survey, by Nielsen Customized Research, was conducted in April 2008 among

28,253 internet users in 51 markets from Europe, Asia Pacific, North America and the Middle East to provide insight into the major concerns of consumers and consumers’ attitudes across the globe towards company ethics and corporate responsibility. The survey, for example, found that just over a third of New Zealand consumers (33%) considered it very important for companies to improve their environmental policies, compared to half the world’s consumers (51%) and only 22 percent of New Zealanders thought it was very important to improve other programmes that contributed to improving society when globally the average was a much higher 42 percent. According to Nielsen, Latin American consumers were the world’s most socially aware, while North Americans consistently lagged behind the global average. Four in five (81%) Mexicans thought it’s very important that corporations acted to improve the environment, and 54 per cent considered it very important that companies supported social causes. Mexicans (65%) also topped global rankings for believing it very important that groceries were not manufactured using unethical labour practices. The study emphasized the concerns world over in encouraging sustainable practices in production, consumption and procurement. In order to gauge the concerns of Indian consumers towards sustainable

consumption and in particular, consumption of sustainable tea & coffee, the present study was undertaken.

Objectives of the study

The study was conducted with the following objectives in mind

1. To identify the existing consumption and purchased behaviour of consumers both institutional and individual with respect to tea and coffee

2. To assess the awareness of Indian consumers on sustainability issues related to consumption of tea and coffee in order to determine the demand for UTZ CERTIFIED tea & coffee.

3. To contribute in the process of developing India specific Solidaridad’s UTZ Certification Code for the tea sector.

Data collection

Primary data was collected with the help of a survey amongst individual and institutional consumers. The personal interview approach was selected to ensure that respondents could be individually approached and data could be collected speedily. Moreover, the nature of information being sought required a one to one approach.

Two questionnaires were designed, one for institutions and another for individuals. The institutional questionnaire aimed at determining the institutional arrangements currently in place for supply of tea & coffee within an organization, its procurement policies, factors considered in selecting a brand for tea & coffee, awareness regarding sustainable tea & coffee, willingness on the part of organisations to purchase such tea & coffee and the problems they were likely to face in adopting it.

The individual questionnaire sought responses from individuals to determine their existing consumption and purchase behaviour for tea & coffee, the factors influencing their purchase, levels of awareness regarding sustainable coffee and tea, whether they were willing to purchase sustainable brands of the two beverages and the problems they were likely to face in adopting them. Copies of the two questionnaires are attached in Appendix 6

Sample selection

It was decided to include respondents from two different cosmopolitan cities i.e. Delhi and Bangalore as respondents here were fairly educated and well to do. They were exposed to foreign brands and were expected to

27

be familiar with the issues related to sustainable consumption.

The segments of industry and business chosen for the survey were those that were expected to be consuming tea & coffee in large quantities and included select tea and coffee buying companies, public and private procurement agencies (including finance/banking, IT/BPO, education and hospitality). Individuals targeted through the survey were urban consumers belonging to different age groups.

As this was a high-end survey, and it was important to collect quality responses, the facilities managers of companies were contacted for response to the institutional survey questionnaire. The managers then requested their team members to respond to the individual survey questionnaires. Initially the effort was to collect data from individuals working in the institutions which were approached. However, all institutions did not give permission for employees to be questioned in the office premises.

Further, it was also difficult to get responses from institutions because supply of tea and coffee within the organizations were mostly outsourced to the canteen contractors or they had vending machines, which were installed by suppliers, and the institution itself played a limited role in procurement. Though it was initially agreed to treat the institutional and individual questionnaires as a package, it was in practice, not possible to get permission to enter the premises to personally interact with the employees. Therefore, the field researchers were instructed to get the individual questionnaires filled outside of the institutions, from respondents working in institutions within the listed sectors. They were further instructed to aim to achieve adequate representation from different sectors and different demographic backgrounds.

The survey was conducted over seven weeks both in Delhi and Bangalore both at the institutional and individual levels. Around 65 institutions were approached for the survey. These included banks, IT companies, airlines, airline catering companies, educational and management institutions, hotels, tea and coffee café chains, insurance cum banking institutions and media houses.

The questionnaires generated a lot of interest among individual respondents. Personal interaction with facilities and procurement managers of some companies yielded very favourable results and they were not only interested in the concept of sustainable tea and coffee, they were also keen to know about sources from where such products could be sourced. While the hotels expressed interest in using the products, the others were happy that their understanding had been enhanced.

Sample size

Though it was decided initially to obtain data from 25-30 institutions and 500 individual consumers through personal interviews, the survey revealed that many institutions approached did not feel that the decisions regarding tea and coffee were very significant. It was not easy to get appointments with the busy executives of institutions and therefore, data was collected from 20 institutions and 520 individual consumers, but not necessarily belonging to the institutions selected for the survey. A brief description of both the samples is provided below.

Data Analysis

The data was tabulated and cleaned. The analysis focussed only on obtaining frequencies and descriptive statistics. Cross tabulations were used to explore whether special relationships existed.

Sample description: individual consumers

The sample was selected in a way to represent different gender, age, education, occupation and family income categories.

Gender: Out of a total of 520 individuals surveyed, 262 were females and 258 males (Fig. 2.1). There was, thus, an almost equal representation of both the sexes.

Fig.2.1: Gender composition of the sample

Chapter II - Research Methodology

28


Age: Out of the total number of respondents, forty percent belonged to the 18 to 25 years age group; twenty seven percent to the 26-35 years age group; 15 percent to the 36 to 45 years age group; twelve percent were from the 46-55 years and six percent were above the age of 55 years (Fig. 2.2).

Fig. 2.2 Age composition of the sample

Age composition

40%

27%

15%

12%6%

1 18-25

2 26-35

3 36-45

4 46-55

5 55+

Geographical area: The respondents were almost equally divided between Bangalore and Delhi. (Fig. 2.3)

Fig. 2.3 Geographical distribution of the sample

Geographical distribution

49%51%BangloreDelhi

Education: Out of the 520 respondents, most were well educated. Only twenty one percent were not graduates. As many as forty percent were graduates, another 25 percent post graduates and fourteen percent possessed professional qualifications. (Fig. 2.4)

Fig 2.4: Educational qualifications of respondents

Occupation: 20 per cent were occupied as students; nine per cent as housewives; 32 percent were in private jobs; eight per cent were businessmen; 18 per cent were professionals and five per cent had retired from active service. Only one per cent worked with the government. (Fig. 2.5)

Fig. 2.5: Occupational status of respondents

Income: The respondents belonged to different income groups. A total of 68 percent were from families whose income was up to Rs. 5 lakhs . 15 per cent reported income ranging between Rs. 5-7 lakhs; another eight per cent reported family income between Rs. 7- 10 lakhs and only nine percent belonged to families with income above Rupees 1 million. ( Fig. 2.6)

Frequency

2%19%

40%

25%

14%1 completedschool

2 undergraduate

3 graduate

4 postgraduate

5 professional

26%

9%

1%32%

8%

18%1%5%

1 student

2 housew ife

3 govt service

4 pvt job

5 business

6 profession

7 unemployed

8 retired

29

Fig. 2.6: Family income of respondents(In Rupees)

Sample description: Institutional consumers

Twenty institutional respondents provided data for the survey belonging to the different sectors listed below:

Hospitality

• Taj West End• East India Hotels (Oberoi Hotel)• ITC Gardenia• TajSats

Airlines

• Kingfisher Airlines

Banking and Insurance

• AXIS Bank

• HDFC Bank

BPOs and software

• COMMITS• California Software• Zenith Software• Wipro• HCL• Prime Site

Media

• Radio City 91.1 FM• Mudra Communications

3 6 %

3 2 %

15%

8 %

9 %

1 <3 l ak hs

2 3 - 5 l ak hs

3 5- 7 l ak hs

4 7- 10 l ak hs

5 ab o v e 10 l ak hs

Education

• Delhi College of Engg• B Vidyapeeth • Rai Business School

Chapter II - Research Methodology

30


Chapter IIIConsumption and Purchase of Tea & Coffee: Individual Consumers

This chapter reports the results of the survey pertaining to individual consumers and identifying the existing consumption of

tea & coffee and their purchase behaviour, their preference for the consumption of tea & coffee, frequency of consumption, sources of purchase, the factors influencing the selection of brands and the sources of information used by them in obtaining information about tea or coffee.

Preference for tea & coffee

The survey revealed (Fig. 3.1) that only five per cent respondents preferred

Fig. 3.1: Preference for tea & coffee

neither tea nor coffee. 64 per cent mostly preferred either tea or coffee and the remaining thirty one percent preferred both the beverages.

F r equenc y

37%

27%

31%

5%

1 T e a

2 C o f f e e

3 B o t h

4 N o ne

Change of brand/source of supply

Further, the results (Fig 3.2) revealed that 52 per cent of the individuals had neither changed the brand nor the source of supply. Another 46 per cent agreed that they had changed the brand of tea & coffee consumed by them.

Fig. 3.2: Changing the brand/source of supply

Frequency of consuming tea & coffee

The consumers were asked to specify the quantity of tea & coffee consumed by them from the following options: less than two cups; between 2-4 cups; between 4-6 cups and more than six cups.

Fig. 3.3a: Frequency of consumption: Tea(cups per day)

Fig. 3.3b: Frequency of consumption: Coffee

(cups per day)

The survey revealed (Fig. 3.3a) that 47 per cent of the selected consumers were drinking less than two cups of tea in a day and 43 per cent were drinking between two to four cups of tea per day. Only six per cent were

yes

no

47%

43%

6%4%

< 2 cups2-4 cups4 cups-6> 6 cups

66%

29%

4%

1%

< 2 cups2-4 cups4 cups-6> 6 cups

31

frequency tea

> 6 cups4 cups-62-4 cups< 2 cups

Coun

t

200

100

0

age

18-25

26-35

36-45

46-55

55+

freq coffee


Co

un

t

300

200

100

0

gender

male

female

frequency tea


Cou

nt

200

100

0

gender

male

female

heavy drinkers who consumed between four to six cups and four per cent consumed more than six cups of tea in a day.

Similarly, 66 per cent of the individuals drank less than two cups of coffee in a day and another 29 per cent consumed two to four cups (Fig. 3.3b). Only four per cent reported that they drank more than four cups of coffee in a single day and one per cent drank more than six cups per day.

Consumption by gender

The survey revealed different consumption patterns of tea & coffee amongst men and women (Fig. 3.4 and 3.5).

Fig. 3.4 Tea Consumption by Gender

(cups per day)

Fig. 3.7: Coffee consumption among age groups(cups per day)

The largest consumers of tea and coffee were found in the age group of 18-36 years. Their consumption varied from less than two cups to a maximum of four cups per day. The survey also revealed that the consumption of both the beverages declined with age. More people in the age group of 45-55 years drank tea as compared to coffee. Very few people consumed more than four cups of tea & coffee.

Consumption by geographic area

The consumption of tea & coffee was higher amongst consumers in Delhi in terms of the numbers of consumers as compared to those in Bangalore. However, consumers in Bangalore drank more cups of tea & coffee as compared to those in Delhi (Fig. 3.8). Further, a larger number of consumers drank two to four cups of tea & coffee in Bangalore.

Fig. 3.8: Tea consumption by geographical area(cups per day)

Fig. 3.5: Coffee Consumption by Gender

(cups per day)

Differences were found in the consumption of tea and coffee within and between genders (Fig. 3.4). More women consumed less than two cups of both tea and coffee than men; but more men consumed 2-4 cups of tea and coffee than women. Thus, men consumed more of both tea and coffee as compared to women.

Consumption amongst age groups

The consumption of tea & coffee was found to vary amongst different age groups. The results are displayed in figures 3.6 and 3.7.

Fig. 3.6: Tea Consumption among age groups(cups per day)

freq coffee


Coun

t

200

100

0

age

18-25

26-35

36-45

46-55

55+

frequency tea


Coun

t

200

100

0

city

Banglore

Delhi

Chapter III - Consumption and Purchase of Tea & Coffee: Individual Consumers

32


freq coffee


Cou

nt300

200

100

0

city

Banglore

Delhi

Fig. 3.9: Coffee Consumption by geographic area(cups per day)

Thus, the quantity of consumption in a particular area was dependent not only on the number of individuals consuming the two beverages but also by the actual quantity of the two beverages consumed by them.

Consumption and level of education

The consumers were classified into the following educational qualifications-completed school, undergraduate, graduate, post graduate and professional.

Fig. 3.10: Tea consumption amongst differently educated

(cups per day)

frequency tea


Cou

nt

140

120

100

80

60

40

20

0

education

completed school

undergraduate

graduate

postgraduate

professional

freq coffee


Cou

nt

200

100

0

education

completed school

undergraduate

graduate

postgraduate

professional

frequency tea


Cou

nt

120

100

80

60

40

20

0

occupation

student

housew ife

govt service

pvt job

business

profession

unemployed

retired

Fig. 3.11: Coffee consumption among different educational groups(cups per day)

An examination of the educational qualifications of consumers revealed that even amongst different educational groups the consumption of tea & coffee varied from being low (less than two cups) to moderate (2-4 cups). Most individuals consumed less than two cups of tea & coffee in a single day. More consumers drank 2-4 cups of tea than 2-4 cups of coffee.

Consumption and Occupation

The occupations were categorised into the following—students, housewife, government service, private job, business, profession, unemployed and retired. The findings suggest that consumption of tea & coffee was the highest amongst those who worked in the private sector, students and professionals.

Fig. 3.12: Consumption of tea amongst different occupational groups(cups per day)

33

multiple sources

single source

Fig. 3.13: Coffee consumption among different occupations

Consumption and income

The respondents belonged to six income levels. The total annual family income and not income of individuals was considered for the purpose of the survey. The income was classified into the following categories: less than 3 lakhs; 3-5 lakhs; 5-7 lakhs; 7-10 lakhs and above ten lakhs. A large number of respondents belonged to family income of upto 5 lakhs. The results (in Fig. 3.14 and Fig. 3.15) reveal that more consumers belonging to the income level of up to 5 lakhs per annum consumed both tea & coffee but their consumption was largely restricted to less than two cups per day. The consumption of tea was higher as compared to consumption of coffee even amongst consumers reporting family incomes above 5 lakhs per annum.

Fig. 3.14: Consumption of tea among different income groups

freq coffee


Cou

nt

140

120

100

80

60

40

20

0

occupation

student

housew ife

govt service

pvt job

business

profession

unemployed

retired

frequency tea


Coun

t

120

100

80

60

40

20

0

income

<3 lakhs

3-5 lakhs

5-7 lakhs

7-10 lakhs

above 10 lakhs

Fig. 3.15: Coffee consumption by different income groups

The individuals from all income groups consumed tea more frequently than coffee.

Thus, the consumption of tea and coffee varied with demographic factors like gender, education, income, occupation and area of residence. These factors should be considered in segmenting the market and selecting appropriate strategies to approach them.

Source of supply

In order to assess whether the consumers purchased tea from a single supplier and were therefore loyal to the supplier, they were asked to specify whether they bought tea & coffee from a single source or from multiple sources. The survey revealed that, the consumers were divided almost equally into those using single source and those using multiple sources for purchasing tea & coffee.

Fig. 3.16: Loyalty to source of supply

freq coffee


Coun

t

160

140

120

100

80

60

40

20

0

income

<3 lakhs

3-5 lakhs

5-7 lakhs

7-10 lakhs

above 10 lakhs


34


The findings revealed that more women used multiple sources; and that while the young used multiple sources of supply for purchasing tea & coffee, this tendency reduced with age. People patronised a single supplier as they grew older. Another interesting indication was that more people in Bangalore used multiple sources as compared to those in Delhi. More consumers in Delhi visited the same supplier.

The impact of education and income on supplier loyalty revealed that higher education positively influenced the use of multiple suppliers. Professionally educated, however, were found to be purchasing from a single supplier.

The occupational status also influenced store loyalty. The findings suggested that consumers belonging to the categories of students, people in private jobs and professionals used multiple sources to purchase their requirement of tea /coffee. The unemployed and the retired, however, purchased more from a single source. This finding supported the findings on age.

It was also observed that the use of single or multiple suppliers was not influenced by the income of the family except in case of consumers whose income was above Rs. 10 lakhs. Such consumers used multiple supply sources to purchase their requirements of tea & coffee.

Type of supplier

As expected, most individual consumers purchased tea & coffee from retailers (Fig. 3.18). Only about 6 percent individuals purchased from wholesalers. Thus, only those who needed to buy larger quantities were likely to approach wholesalers. Very few consumers purchased imported tea & coffee.

single

multiple sourcessingle source

Per

cent

60

50

40

30

20

10

0

gender

male

female

single


Per

cent

70

60

50

40

30

20

10

0

education

completed school

undergraduate

graduate

postgraduate

professional

single

m ul tip le s ourc ess ing le s ourc e

Per

cent

80

60

40

20

0

age

18-25

26-35

36-45

46-55

55+

single


Per

cent

80

60

40

20

0

occupation

student

housew ife

govt service

pvt job

business

profession

unemployed

retired

single


Per

cent

70

60

50

40

30

20

10

0

city

Banglore

Delhi

The relationship between store loyalty and demographic factors was examined. The results are presented in Fig. 3.17 (a-f). They reveal the variation in loyalty in selecting suppliers on the basis of gender, age and area of residence.

Fig. 3.17: Supplier loyalty and demographics:

a) Gender d) Education

b) Age e) Occupation

c) City f) Income

single


Coun

t

120

100

80

60

40

20

0

income

<3 lakhs

3-5 lakhs

5-7 lakhs

7-10 lakhs

above 10 lakhs

35

not important at all

not so important

indifferent

important

highly important

not so important

indifferent

important

highly important


not so important

indifferent

important

highly important

Price

Price is an important consideration in most purchase decisions. In case of tea and coffee, the results revealed that it was an important consideration for about 35-40 percent respondents (Fig. 3.22). A large number of consumers were indifferent to price in the purchase of the two beverages.

Fig. 3.20: Importance of price tea & coffee

Tea Coffee

Only approximately 10 per cent respondents reported that price was not at all an important consideration in their purchase decision.

Quality

Quality of tea & coffee was ranked highly important by more than half of the respondents. None considered it as unimportant and only three per cent were indifferent to the quality of tea. (Fig. 3.23)

Fig. 3.21: Importance of quality

Tea Coffee

Quality of tea & coffee in terms of whether it was full leaf, or small leaf or dust tea or coffee granules was important for all those who consumed it. A very insignificant number reported that it was not an important consideration. However, more people were indifferent to the quality of coffee than to the quality of tea. This was because the frequency of consuming tea and coffee differed.

Import

Manufacturer

Retailer

w holesaler

retailers, brand

unbranded

branded loose

branded packet

Fig. 3.18: Type of supplier used for purchase

Form of purchase

The consumers could purchase tea or coffee, in the following forms:branded packet, branded loose, unbranded, and retailers’ brand. The results (Fig. 3.19) indicated that a majority of the consumers purchased branded packet tea & coffee. Some also purchased branded loose tea & coffee but very few bought the retailers’ blends. Very few consumers purchased unbranded tea & coffee.

Fig. 3.19: Form of purchase

Factors influencing purchase of tea & coffee

In selecting tea & coffee, the consumers may be considering some factors. In order to identify factors that were most important to them, they were asked to rank the selected factors on a five point scale varying from highly important to not important at all. These factors were price, quality, taste, flavour, environmental concerns, social concerns, impact on health, family preferences, peer acceptability, familiarity with the supplier, reputation of the supplier, certification mark and promotions and discounts. The results for each of the factors are discussed below, first individually and then comparatively.


not so important

indifferent

important

highly important


36



not so important

indifferent

important

highly important

not so important

indifferent

important

highly important


not so important

indifferent

important

highly important

Taste

Taste in terms of whether the beverages were strong or mild, also emerged an equally important factor in the purchase of both tea and coffee.

Fig. 3.22: Importance of taste

Tea Coffee

A small percentage of respondents considered it not very important but none were indifferent to this attribute. More people were indifferent to the taste of coffee as compared to the taste of tea which was a more frequently consumed beverage.

Flavour

This emerged to be quite an important factor in the purchase of both tea and coffee (Fig. 3.23). Since coffee was consumed less frequently and generally outside home, flavour was less important in influencing choice of coffee as compared to the flavour of tea.

Fig. 3.23: Importance of Flavour

Tea Coffee

Environmental concerns

The importance attached to environmental concerns shows that the factor found favour with 40 per cent of surveyed tea &

coffee drinkers. About 20 percent reported an indifference to the importance of the factor in their choice of the two beverages.

Fig. 3.24: Importance of environmental concerns

Tea Coffee

Social concerns

This factor was important for about 20 per cent consumers and highly important for only half out of them. An almost equal number reported indifference towards social concerns.

Fig. 3.25: Importance of social concerns

Tea Coffee

Impact on Health

Health was found to be an important factor in selecting tea & coffee for consumption. Fewer people were found to be indifferent to this factor.

Fig. 3.26: Importance of impact on health

Tea Coffee


not so important

indifferent

important

highly important


not so important

indifferent

important

highly important


not so important

indifferent

important

highly important not important at all

not so important

indifferent

important

highly important


not so important

indifferent

important

highly important


not so important

indifferent

important

highly important


not so important

indifferent

important

highly important

37


not so important

indifferent

important

highly important


not so important

indifferent important

highly important

Family

Family plays an important role in developing a preference for consumption of the two beverages and initiates the members to the brands. The brand of tea consumed in the early years conditions expectations regarding taste, flavour and quality and through this, exercises an important influence on future consumption and purchase behaviour. The survey revealed that as many as 45 per cent (Fig. 3.27) of the respondents considered that the family’s preferences were very important or important in deciding about the consumption of tea & coffee. For only 10 percent respondents, the family was not important and another 10 percent were indifferent to the role family played in decisions regarding tea & coffee.

Fig. 3.27: Importance of family

Tea Coffee

Peers

Peers were found to be playing a less important role in the choice of tea & coffee as a majority of the consumers were either indifferent or did not consider them

Fig. 3.28: Importance of peers

Tea Coffee

important in the selection of a brand for tea & coffee.


not so important

indifferent

important

highly important

Supplier familiarity

Familiarity with the supplier was not found to be very important criteria for the majority of those surveyed (it was considered important for about 15 per cent respondents only). This can be attributed to the fact that most people were buying only branded tea & coffee and that they were already aware of the brands and therefore, the retailer had only a limited role to play in recommending a brand.

Fig. 3.29: Importance of familiarity with the supplier

Tea

Coffee

Reputation of the Supplier

For the same reasons, a similar response was obtained for considering the reputation of the supplier as a factor in the selection of tea & coffee (Fig. 3.30)

not im portant a t a l l

not s o im portant

ind i fferent

im portant

h igh ly im portant


not so important

indifferent

important

highly important


not so important

indifferent

important

highly important


38


Fig. 3.30: Importance of reputation of the supplier

Tea

Coffee

Thus the suppliers do not appear to play a significant role in the purchase of branded tea & coffee.

Tea certification

The survey revealed that consumers in India were almost equally divided on whether certification of tea & coffee was an important criteria in their purchase of the two beverages (Fig. 3.31).

Fig. 3.31 Importance of certification

Tea

Coffee

Promotions and discounts

For about 25 percent of the respondents, promotions and discounts were important, but the rest were either indifferent to them or did not consider them to be important.

Fig.3.32: Importance of promotions and discounts

Tea Coffee

The findings suggest that once a brand of tea & coffee is selected, promotional and discount schemes may motivate only a few consumers, if they promise substantial benefits. This again indicates that taste, quality and flavour are so important that promotional efforts of the sellers are unable to make a substantial dent in changing the choice of consumers. A summary of the importance assigned to each of the factors is presented in Table 3.1.

Table 3.1: Summary of importance of factors* influencing choice of tea & coffee (percentage)

Tea 1 2 3 4 5 6 7 8 9 10 11 12 13

1 highly important

16 52 49 39 20 12 28 15 5 4 7 26 10

2 important

25 11 15 21 19 22 25 32 15 16 18 28 18

Total 41 63 64 60 39 34 53 47 20 20 25 54 28

3 indifferent

13 2 3 19 20 8 11 19 21 21 5 17

4 not so important

7 1 2 5 8 2 3 14 14 11 3 11

5 not important at all

4 2 3 2 4 12 10 8 3 9

Total 11 1 2 7 11 4 7 26 24 19 6 20


not so important

indifferent

important

highly important


not so important

indifferent

important

highly important


not so important

indifferent

important

highly important


not so important

indifferent

important

highly important


not so important

indifferent

important

highly important not important at all

not so important

indifferent

important

highly important

39

Coffee 1 2 3 4 5 6 7 8 9 10 11 12 13

1 highly important

13 45 45 35 19 11 22 13 6 5 5 22 10

2 important

27 9 9 16 18 19 22 27 12 14 18 23 16

Total 40 54 54 51 37 30 44 40 18 19 23 45 26

3 indifferent

6 2 4 14 17 8 9 15 15 16 5 14

4 not so important

6 2 1 3 4 2 3 12 11 10 2 9

5 not important at all

4 2 5 2 4 11 11 7 4 7

Total 10 2 1 5 9 4 7 23 22 17 6 16

*Key to factors:

1. Price 2. Quality3. Taste4. Flavour5. Environmental concerns6. Social concerns7. Health concerns

8. Family 9. Peers10. Supplier familiarity11. Supplier reputation12. Certification13. Promotion Schemes

The five most important factors in the purchase of brand for tea & coffee were taste, quality, flavour, certification, and impact on health. Family and price were also important considerations but the environmental or social concerns were not very important. Promotions and discounts, supplier familiarity, reputation of the suppliers and peers were the least important factors in the purchase decision.

Sources of Information

It is important to know what sources are used to obtain information on various brands of tea and coffee. The respondents were requested to identify the sources from the following alternatives- friends, family members, print advertisements, radio, television, web advertisements, promotional campaigns and events, case studies and research reports, and comparative testing reports. The results are reported in Fig. 3.33.

Fig. 3.33: Sources of information: tea and coffee

Source of information:friends


not so important

indifferent

important

highly important

Source of information:Radio


not so important

indifferent

important

highly important

Source of information:Family


not so important

indifferent

important

highly important

Source of information:Television


not so important

indifferentimportant

highly important


40


Source of inf ormation:Adv ertisements


not so important

indifferent

important

highly important

The survey revealed that family was the most important source of information on brands of tea & coffee, followed by television and print media. After these, came the advertisements and the more technical and reliable sources like comparative test reports, and research and development reports. Radio was the least important source of information in the consumption of tea & coffee. These findings have important implications for creating awareness campaigns. The next chapter examines the institutional consumption and purchase practices regarding tea and coffee.

Source of information:Print Media


not so important

indifferent

important

highly important

Source of information:Internet


not so important

indifferent

important

highly important

Source of information:Research Reports


not so important

indifferent

important

highly important

Source of information:Comparative Testing Reports


not so important

indifferent

important

highly important

41

CHAPTER IVCONSUMPTION AND PROCUREMENT OF TEA & COFFEE: INSTITUTIONAL CONSUMERS

The survey of institutions revealed that though the two beverages, tea and coffee could be served both in hot and cold versions, only three organisations reported that cold coffee was

served and two reported that cold tea was available. The remaining organisations served the two beverages hot.

How institutions supply tea/ coffeeThere are various ways in which tea & coffee is provided in different institutions and departments. The survey revealed (Table 4.1) that

Table 4.1: Modes of institutional tea & coffee supply

Mode of supply Frequency Percent

By a canteen run by employees

2 11.8

By an outsourced canteen

4 23.5

Automatic vending machines

7 41.2

Personal attendant 2 11.8

Own arrangement 2 11.8

Total 17 100automatic vending machines were the most popular followed by supply by an outsourced canteen as the second important way in which tea & coffee were made available to the employees of institutions.

Mode of payment

It was important to identify how employees paid for the tea and coffee consumed in the institution during working hours. The institutions were requested to select from the following modes.

1. Lump sum monthly contribution2. Price per cup paid at the canteen3. Do not pay at all4. Payment beyond a certain minimum no of

cups5. Deduction from salary6. Subsidised price

In most institutions, (Fig. 4.1) the employees had to make a lump sum contribution for consuming the two beverages; in a large number of cases the two beverages were also supplied free of cost to the employees Only a few employees had to pay a subsidised price for consuming tea & coffee

Fig. 4.1 Modes of payment for tea & coffee

Quantity of tea & coffee purchased

The survey revealed that in case of the selected organisations, the quantity of tea & coffee purchased varied from up to twenty kg of tea & coffee per month to more than 100 kg of the two beverages per month.

Fig. 4.2 Quantity of tea & coffee purchased(k.g. per month)

Subsidised price

No payment Monthly contribution

0

2

4

6

8

10

12

0--20 21-50 51-100 101-200

quantity purchased (kg)

No o

f org

anis

atio

ns

teacoffee

Chapter IV - Consumption and Procurement of Tea & Coffee: Institutional Consumers

42


In most institutions, the quantity of tea purchased was higher than the quantity of coffee.

Source loyalty

The institutions were requested to provide information on whether they purchased the two beverages from a single or multiple sources. A majority of the institutions were found to use a single source to obtain supplies of tea & coffee.

Fig. 4.3 Institutional source loyalty

Source of purchase

Majority of the institutions bought their supplies of tea & coffee from the wholesalers (Fig. 4.4) as these supplies were purchased in bulk.

Figure 4.4 Institutional sources of purchase

A small number of institutions also purchased from retailers and directly from the manufacturers.

Factors influencing purchase of tea & coffee

The following factors were included: price, quality, taste, flavour, environmental concerns, social

71%

29%

singlemultiple

manufacturer

retailer

w holesaler

concerns, impact on health, peer acceptability, familiarity with the supplier, reputation of the supplier, certification mark, and promotion and discounts.

The survey revealed that there were small variations in the importance assigned to the various factors used for selecting tea & coffee; e.g., price was a more important factor in purchasing coffee than tea. In general, the most important factors were the concern about impact of consumption of tea & coffee on the health, and therefore, concern for quality for both tea & coffee was high; the flavour in case of coffee and certification for both tea & coffee were the other important parameters in the decision to purchase the two beverages. (Table 4.2)

Table 4.2 Factors* influencing institutional purchase of tea & coffee

Tea 1 2 3 4 5 6 7 8 9 10 11 12

highly important

5 80 57 39 25 17 50 8 42 8

important 35 13 29 39 50 50 50 42 38 33 42 23

Total 40 93 86 78 75 67 100 42 38 41 84 31

indifferent

55 7 14 15 25 33 25 38 33 8 31

not so important

5 8 25 15 17 23


8 9 8 8 15

Total 5 8 33 24 25 8 38

Coffee 1 2 3 4 5 6 7 8 9 10 11 12

highly important

29 85 61 42 27 9 45 9 36 8

important 43 15 31 42 55 55 55 42 46 36 46 17

Total 72 100 92 84 82 64 100 42 46 45 82 25

indiff-erent

21 8 8 18 36 33 18 27 9 33

not so important

7 17 27 18 25

43

Coffee 1 2 3 4 5 6 7 8 9 10 11 12


8 8 9 9 9 17

Total 7 8 25 36 27 9 42

* Key to factors:

1. Price 2. Quality3. Taste4. Flavour5. Environmental concerns6. Social concerns7. Health concerns8. Peers9. Supplier familiarity10. Supplier reputation11. Certification12. Promotion Schemes

The least important factors were promotions and discounts, supplier reputation and environmental and social concerns.

Procurement of tea & coffee

Information was sought on the procurement practices of the institutions. The following questions were included for this purpose:

1. Do you have a procurement policy regarding tea & coffee in your organisation?

2. Do you have any list of specifications for purchasing tea & coffee?3. Is the procurement policy regarding tea & coffee communicated to

the suppliers?4. Do you have a list of potential suppliers for tea & coffee?5. Do you have a written code of conduct for suppliers of tea &

coffee?6. Do you have a policy in case of conflict of interest amongst

members of the procurement/ purchasing team for tea & coffee?7. Are your spending decisions regarding tea & coffee open to public

review?8. Do you specify to your suppliers of tea & coffee what you will not

buy? 9. Do you reward your procurement team for economical buying?

10. Do you have to answer to the management or workers regarding the brands of coffee and tea purchased?

The responses to the above are shown in Table 4.3

Table 4.3: Institutional procurement process for tea & coffee

(percentage)

Tea 1 2 3 4 5 6 7 8 9 10

Can’t say

38 44 40 50 31 38 31 44 19 31

No 25 25 20 31 38 25 69 19 69 38

Yes 38 31 40 19 31 38 37 12 31

Coffee 1 2 3 4 5 6 7 8 9 10

Can’t say

43 50 46 57 36 57 36 50 25 43

No 21 21 15 29 36 7 64 21 58 29

Yes 36 29 39 14 28 36 29 17 28

The survey revealed that though about a third of the organisations had a procurement policy for the two beverages, very few institutions had a written code of conduct. Similarly, very few of them agreed that they rewarded the purchase teams for economical buying. None of the institutions reported that they specified to their suppliers what they would not buy or that the decisions or expenditure for supply of tea & coffee were open to public review. Most of the institutions did not therefore have a well formulated procurement policy for tea & coffee.

Employee feedback

The institutions were asked whether they received any feedback from the employees on the tea & coffee consumed by them. The following issues were listed and they were asked to select from three options: yes, no, and can’t say.


44


1. The brand of tea & coffee used 2. The source of supply of tea & coffee 3. The price at which it is available 4. The quantity of tea & coffee served 5. The time and frequency at which it was

available to the employees, 6. The quality of tea & coffee supplied to them

and 7. Whether brands selected were certified.

The results are shown in Table 4.4

Table 4.4: Employee feedback on tea & coffee

Tea 1 2 3 4 5 6 7

Can’t say

31 19 6 6 31 27

No 38 25 19 19 19 44 20

Yes 31 56 75 75 81 35 53

Coffee 1 2 3 4 5 6 7

Can’t say

28 14 7 7 29 23

No 43 29 21 21 23 50 23

Yes 29 57 71 71 77 21 54

The survey revealed that the feedback was received from employees on the time and the frequency with which tea & coffee was available, and the quantity and the price at which it was available. The employees were interested in knowing whether the brands used for the two beverages were certified. Very little feedback was received on the names of brands of tea & coffee to be used and the quality of tea & coffee supplied.

Sources of information

The institutions were also requested to provide information on the sources they consulted for information on the two beverages.

1. Communication from suppliers 2. Advertisements in print media 3. Advertisements on Television 4. Recommendation from Administration department of the

institution. 5. Recommendation from the CSR department of the institution 6. Recommendation from procurement department of the institution 7. Internet8. Research reports 9. Competitors’ choice of brands 10. Recommendation from employee(s) of the organisation11. Any other

The results (Table 4.5) indicated that recommendations received by the administration department and employees and information received from suppliers were important sources of information. Television was the least important medium but print media was important.

Table 4.5: Institutional sources of information for tea & coffee

Tea 1 2 3 4 5 6 7 8 9 10

Highly important

21 7 7 7 21 21 7 14

Important 29 7 17 57 39 36 7 21 40 43

Total 50 7 24 64 46 57 7 42 47 57

Somewhat important

21 57 31 29 46 29 57 36 25 36

Not so important

14 21 31 7 21 7 14

Not important at all

14 14 14 7 7 7 14 14 14 7

Total 28 35 45 7 7 14 35 21 28 7

Coffee 1 2 3 4 5 6 7 8 9 10

Highly important

36 7 7 7 26 20 7 17

Important 27 59 18 67 38 33 7 25 39 42

Total 63 66 25 67 45 59 7 45 46 59

45

Coffee 1 2 3 4 5 6 7 8 9 10

Somewhat important

18 26 29 33 55 33 58 42 31 24

Not so important

18 38 7 27 7 16 19


7 7 7 7 7

Total 18 7 45 7 34 14 23 19

In case of both tea and coffee, the three most important sources for information were communication from suppliers, recommendation from procurement department of the institution and research reports. The CSR department played an insignificant role in providing recommendation on using tea & coffee.


46


CHAPTER VATTITUDES OF INDIVIDUAL CONSUMERS TOWARDS SUSTAINABLE TEA & COFFEE

The data on the attitudes and opinions of institutional and individual consumers was obtained on a three-point scale consisting of ‘agree’, ‘disagree’ and ‘can’t say’ on Activity, Interest and Opinion (AIO)

statements related to their awareness about how tea & coffee is grown and processed, awareness about sustainable tea & coffee, willingness to pay extra for such tea & coffee; the availability and need for information and the conditions required to be fulfilled where consumers were willing to pay extra for such beverages. The findings are explained below.

Awareness about Tea & coffee

The AIO statements used to measure the existing level of consumer awareness about cultivation and processing of tea & coffee consumed by them and the responses are presented in Table 5.1.

Table 5.1: Consumer awareness about tea & coffee

Statement C a n ’ t say

Disagree Agree

I have really never thought of finding out where the tea /coffee I consume, comes from.

36 31 33

I am concerned that farmers growing tea & coffee are paid a fair price for their produce

49 15 36

I am concerned that the companies I buy tea/ coffee from are sourcing raw tea & coffee from farmers following sustainable agricultural practices.

43 16 42

I am concerned that the companies I buy tea/ coffee from are following good labour practices in processing/manufacturing tea & coffee

45 15 40

I believe that my actions can create a better world. 53 8 39

In case of almost all the statements, only about a third of the consumers reported that though they had really never thought of proactively seeking information about the geographical facts regarding the beverages consumed by them, yet they

were concerned with whether the farmers got a fair price, and that the companies marketing the two beverages procured them from farmers following sustainable agricultural practices, and that these institutions themselves followed good labour practices for their employees.

The consumers themselves however were not sure whether they were empowered and could play a significant role in improving conditions around them to create a better world.

Awareness about sustainable tea & coffee

To begin with, the respondents were asked whether they had heard of sustainable tea & coffee. They were explained what sustainable tea/ coffee meant and they were informed that it could be available in many forms like, certified by Organic, Fair Trade, UTZ CERTIFIED, SA 8000, ISO 9001, Rain Forest, etc. Fig. 5.1 shows that the sample of individual consumers was equally divided into two groups consisting of those who had heard of sustainable tea & coffee and those who had not heard of it.

Fig. 5.1 Consumer awareness of sustainable tea & coffee

Information needs of the consumers

The results of the survey revealed that consumers desired more information on the methods of cultivation, safety standards used, the social issues involved and the environmental impact of cultivating tea & coffee (Table 5.2). They agreed that they would appreciate if such information was available on the internet.

yes

No

47

Yes

No

Table 5.2: Information needs of consumers

Statement Can’t say

Disagree Agree

I feel that I should get more information about the methods used during the cultivation and processing of tea & coffee to influence the quality of the product.

48 9 43

I feel that I should get more information about the safety standards in the cultivation and processing of tea & coffee.

48 9 43

I feel that I should get more information about the social issues linked to the cultivation and processing of tea & coffee.

50 11 39

I feel that I should get more information about the environmental impact of the cultivation and processing of tea & coffee.

49 9 42

I would like to know from which region my tea & coffee has been procured by simply clicking on the internet the unique number/label given on the tea & coffee packet.

49 14 37

Willingness to pay extra

The respondents were also asked whether they would be willing to pay extra for purchasing sustainable tea & coffee. The results are shown in Fig. 6.3

Fig. 5.2: Willingness to pay extra

Extent of extra payment

The respondents were asked to specify how much extra they were willing to pay for purchasing sustainable tea & coffee from the following options: not willing to pay extra; less than 5%; 5-10%; 11-25%; 26-50%; 51-75%; and 76-100%. The results (Fig. 6.4) revealed that a large number of respondents were willing to pay up to 10 percent extra for purchasing sustainable tea & coffee.

Fig. 5.3 Extent of extra payment

Conditions for paying extra for sustainable tea & coffee

While nearly half of those surveyed were not sure, about a third were willing to pay extra if they were assured that the extra payment would result in benefits to the lives of farmers’ children, less harm to the environment and that an independent party certified that the above conditions were complied with.

Table 5.3: Conditions for paying extra for sustainable tea & coffee

Statement Can’t say Disagree Agree

I would prefer to purchase a tea & coffee brand at a higher price (provided all other quality parameters are same) if it leads to a better life for the children of the farmers who are growing this tea & coffee.

50 7 43

Not w illing to pay e

76-100%

51-75%

26-50%

11-25%

5-10%

<5%

Chapter V - Attitudes of Individual Consumers towards Sustainable Tea & Coffee

48



I am willing to pay more for purchasing tea & coffee if the company assures me that they manufacture/process the product with the highest safety standards; that the farmers producing the tea & coffee live a dignified life and a minimum damage is inflicted to the environment.(self certification)

50 12 38

I am willing to pay more for purchasing tea and coffee only if an independent certifying authority assures me that it is manufactured with the highest safety standards, that the farmers producing the tea & coffee live a dignified life and there is minimum damage inflicted to the environment while producing it.(third party certification)

49 13 38

Employee Perception

Less than half of the consumers agreed that if their employers chose to provide them with sustainable tea & coffee, they would feel good about their organisations initiative and consider them to be following socially responsible practices.


I would feel good about the management of my organisation if such sustainable tea & coffee was introduced for my consumption as part of their CSR policy

49 9 42

Problems in the purchase of sustainable tea & coffee

In order to identify the problems that intervene or are likely to in the future, in purchasing sustainable tea & coffee, the consumers were requested to rank in order of importance the following bottlenecks that they would encounter in case they intended to purchase the sustainable versions of the two beverages:

1. Lack of information 2. Genuineness of quality claims3. Availability of continuous supply4. Price/affordability5. Acceptability by other members6. Price/affordability7. Value for money8. Information regarding certification

The responses are presented in Table 5.5

Table 5.4: Problems in purchasing sustainable tea & coffee

Problems Highly impor-tant

Important Somewhat Not so important


Lack of Information

49 40 8 3

Genuineness of quality claims

54 36 8 2

Availability of continuous supply

29 43 20 8

Acceptability by employees

16 29 31 17 8

Availability of brands

20 44 26 7 3

49

Problems Highly impor-tant

Important Somewhat Not so important


Price/affordability

32 44 15 6 3

Value for money 49 36 8 3

Information re: certification

46 39 10 3 2

The three most important hurdles in the purchase of sustainable tea & coffee by consumers were doubts regarding the truthfulness of quality claims, lack of information and the concern for such brands being value for money.

Chapter V - Attitudes of Individual Consumers towards Sustainable Tea & Coffee

50


CHAPTER VIATTITUDES OF INSTITUTIONAL CONSUMERS TOWARD SUSTAINABLE TEA & COFFEE

An attempt was made to identify the attitude of the institutional consumers. The results are discussed below.

Institutional awareness about tea & coffee

The institutions were asked to provide information on whether the following considerations were used by them in their purchase of tea & coffee. (Table 6.1)

Table 6.1 Institutional awareness about Tea & coffee

Statements Can’t say Can’t say Yes Yes No No

Tea Coffee Tea Coffee Tea Coffee

Where the tea /coffee is grown 35 40 41 47 24 13

How the tea & coffee is grown 30 34 41 53 29 13

Whether the cultivation of tea & coffee has an impact on the environment

25 29 38 50 38 21

Whether sustainable methods of cultivation are being followed in growing the tea or coffee

30 33 35 33 35 33

Whether farmers growing tea & coffee are paid a fair price for their produce.

18 20 53 53 29 27

The labour practices of companies you buy tea/ coffee from

24 27 47 53 29 20

Whether responsible practices are being followed when tea & coffee is processed or manufactured

24 27 47 47 29 27

Whether the way the tea & coffee is grown /processed influences your health?

29 33 47 47 24 20

51

heard

yesnocant say

Co

un

t

8

7

6

5

4

3

2

heard

yesnocant say

Count

8

7

6

5

4

3

2

No significant differences were found on awareness levels regarding tea and coffee, but only a third agreed that they did make an effort to find out information on aspects related to growing and processing of tea & coffee consumed by them

Institutional awareness about sustainable tea & coffee

More institutions were found to be aware of sustainable tea as compared to sustainable coffee (Fig.6.1)

Fig. 6.1: Institutional awareness about sustainable tea & coffee

Tea Coffee

Institutional role in promoting sustainable tea & coffee

In order to assess the institutional perceptions regarding the role they would be playing in promoting the production and consumption of sustainable tea & coffee, they were asked to respond to AIO statements. The results are presented in Table 6.2 and 6.3 respectively.

Table 6.2 Institutional role in promoting sustainable tea

Statements Can’t say No Yes

I can contribute to the adoption of sustainable farming and manufacturing of tea /coffee 31 13 56

I believe I can exercise pressure on the suppliers to supply sustainable tea /coffee 65 6 29

I would refuse to buy tea /coffee from suppliers if they are irresponsible towards environment

59 41

I would change the supplier if aware of unethical or socially irresponsible business practices. 65 35

My organisation would be willing to pay more for purchasing sustainable tea & coffee. 35 6 59

If a choice is available, would you like to purchase sustainable tea & coffee? 65 35

Have you engaged in a dialogue with your suppliers for more sustainable versions of tea & coffee?

18 77 6

Have you ever changed your suppliers because of their environmental or ethical behaviour? 23 65 12

Chapter VI - Attitudes of Institutional Consumers towards Sustainable Tea & Coffee

52


Table 6.3 Institutional role in promoting sustainable Coffee

Statements Can’t say No Yes

I can contribute to the adoption of sustainable farming and manufacturing of tea /coffee

31 13 56

I believe I can exercise pressure on the suppliers to supply sustainable tea /coffee

65 6 29

I would refuse to buy tea /coffee from suppliers if they are irresponsible towards environment

59 41

I would change the supplier if aware of unethical or socially irresponsible business practices.

65 35

My organisation would be willing to pay more for purchasing sustainable tea & coffee.

59 35 6

If a choice is available, would you like to purchase sustainable tea & coffee?

35 65

Have you engaged in a dialogue with your suppliers for more sustainable versions of tea & coffee?

6 18 76

Have you ever changed your suppliers because of their environmental or ethical behaviour?

12 23 65

The institutions reported that even though they could contribute to the adoption of sustainable farming and processing of tea & coffee, they would not be able to exercise pressure on the suppliers to actually supply the sustainable versions of the two beverages. They were not sure that they would refuse to buy tea /coffee from suppliers if they were irresponsible towards the environment or would change the supplier if aware that he was following unethical or socially irresponsible business practices. Though they were not sure

whether their institutions would like to purchase sustainable tea & coffee, they felt that there would be no problem in paying more to purchase such tea & coffee.

The survey also revealed that in practice, they had neither started a dialogue with their suppliers for supplying sustainable tea & coffee, nor changed their suppliers if their behaviour was irresponsible towards the environment or wanting on ethical grounds.

Extent of institutional willingness to pay extra

Even amongst institutions, a majority were willing to spend up to 10 percent extra for purchasing sustainable tea & coffee (Fig. 6.2).

Fig. 6.2 Extent of institutional willingness to pay extra

Problems in purchasing sustainable tea & coffee

The institutions were also asked to provide information on the problems that they were likely to face in purchasing sustainable tea & coffee. They were requested to rank the listed problems as highly important, important, somewhat important and not at all important. The results are shown separately for tea (Table 6.4) and coffee (Table 6.5).

26-50%

11-25%

5-10%

less than 5%

53

Table 6.4 Problems in purchasing sustainable tea

Problems Tea

Highly important Important Somewhat Important Not so Important Not Important at All

Budgetary constraints 12 29 41 12 6

Lack of Information 29 47 29 29 29

Genuineness of quality claims 29 53 18

Availability of continuous supply 18 71 12

Acceptability by employees 24 47 29

Availability of brands 18 59 17 6

Price/affordability 24 24 29 23

Value for money 30 35 35

Information regarding certification 18 65 17

Any other

Table 6.5 Problems in purchasing sustainable coffee

Problems Coffee

Highly important Important Somewhat Important Not so Important Not Important at All

Budgetary constraints 18 29 41 12

Lack of Information 29 47 18 6

Genuineness of quality claims 29 47 24

Availability of continuous supply 18 65 18

Acceptability by employees 24 47 29

Availability of brands 18 59 18 6

Price/affordability 24 24 29 24

Value for money 30 35 35

Information regarding certification 18 82

Any other

The institutions felt that the most important problems they were likely to face in adopting sustainable tea & coffee were the lack of information regarding certification, the continuous availability of brands satisfying the sustainability criteria and the genuineness of quality claims made by the manufacturers.

Potential benefits in adopting sustainable products


54


In order to ascertain whether the institutions saw any potential benefits in switching over to sustainable products, they were asked to rank each of the following benefits on a five point Likert scale.

1. Improve company image in the eyes of the world.2. Improve company image in the eyes of employees3. Encourage ethical practices4. Improve employee morale5. Reduce adverse impact on health6. Encourage development of eco labels7. Encourage adoption of best practices8. Improve standards of quality9. Prevent environmental degradation10. Any other (Please specify)

The results showed that the institutions failed to see that the consumption of sustainable products would improve their image in the eyes of the world or improve the company image in the eyes of the employees. However, the most important benefits they expected to achieve by introducing sustainable products were encouraging ethical practices and improving the health of their employees.

Table 6.6 Potential benefits from introducing sustainable products

Potential benefits Highly important Important Somewhat Important Not so Important Not Important at All

Improve company image in the eyes of the world.

35 24 41

Improve company image in the eyes of employees

29 53 18

Encourage ethical practices 53 29 18

Improve employee morale 35 24 41

Reduce adverse impact on health

53 41 6

Encourage development of eco labels

35 47 18

Encourage adoption of best practices

53 29 18

Improve standards of quality

47 29 24

Prevent environmental degradation

41 53 6

55

Purchase of other sustainable products

It is sometimes possible that the institutions may not have started using sustainable tea & coffee but may have begun using other sustainable products and services in other departments. The survey revealed that a large number of institutions (Fig. 6.3) were using other sustainable products, like solar energy, energy efficient lighting and pollution control.

Fig. 6.3 Use of other sustainable products

Intention to initiate purchase of sustainable tea & coffee

The institutions which had intentions to initiate measures to purchase sustainable tea & coffee (Fig. 6.4) in the near future was larger than those which expressed no such intention.

Fig. 6.4 Intention to initiate purchase

Duration in implementing use of sustainable tea & coffee

The institutions were asked to provide an estimate of the time that will be required for them to initiate usage of sustainable tea & coffee in their premises. Four options were provided (Fig. 6.5); within 6 months; between 6-12 months; between 12-24 months; and can’t say.

Fig. 6.5 Duration for implementation

Almost 50 percent of the institutions agreed that they would be able to implement purchase of sustainable tea & coffee within a year, a large number were still undecided and a small number expected that they would be able to do so within two years.

yes

no

yes

no

cant say

can't say

bet 12-24 months

within 6 months


56


CHAPTER VIISUMMARY OF THE FINDINGS

The findings of the survey are summarised separately for individual as well as institutional consumers.

Individual consumers

The survey revealed that most consumers drank both tea & coffee but men consumed more tea and coffee as compared to women. The consumption was generally less than two cups per day and rarely exceeded four cups per day. The consumption of coffee in cups per day was comparatively less than consumption of tea. The largest consumers of tea and coffee were found in the age group of 18-36 years, but the consumption of both the beverages declined with age. Consumption of tea & coffee was the highest amongst those who worked in the private sector, students and professionals. The consumption of tea was higher as compared to consumption of coffee even amongst consumers reporting high family incomes.

Further, women bought tea & coffee from multiple sources; and that while the young used multiple sources for purchasing tea & coffee, this tendency reduced with age. People patronised a single supplier as they grew older. More people in Bangalore used multiple sources as compared to those in Delhi.

Higher education positively influenced the use of multiple suppliers. Professionally educated, however, preferred to purchase from a single supplier.

The occupational status also influenced store loyalty. The findings suggested that consumers

belonging to the categories of students, people in private jobs and professionals used multiple sources to purchase their requirement of tea /coffee. The unemployed and the retired, however, purchased more from a single source.

It was also observed that the use of single or multiple suppliers was not influenced by the income of the family except in case of consumers whose income was above Rs 10 lakhs. Such consumers used multiple sources to purchase their requirements of tea & coffee.

The five most important factors influencing the purchase of a brand for tea & coffee were taste, quality, flavour, certification, and impact on health. Family and price were also important considerations but the environmental or social concerns were not very important. Promotions and discounts, supplier familiarity, reputation of the suppliers and peers were the least important factors in the purchase decision.

The survey revealed that family was the most important source of information on brands of tea & coffee, followed by television and print media. After these, came the advertisements and the more technical and reliable sources like comparative test reports, and research and development reports. Radio was the least important source of information in the consumption of tea & coffee.

The consumers were found indifferent towards the purchase of these beverages and did not take any significant interest in information related to the cultivation or processing of tea & coffee. The disinterest could also be due to the fact that the consumption of the two beverages was not very high and therefore, the budgetary allocation was not significant enough to merit attention. Only about a third of the consumers reported that though they had really never thought of proactively seeking information about the geographical facts regarding the beverages consumed by them, yet they were concerned with whether the farmers got a fair price, that the companies marketing the two beverages procured them from farmers following sustainable agricultural practices, and that these institutions themselves followed good labour practices for their employees.

The consumers themselves however, were not sure whether they were empowered and could play a significant role in improving conditions around them to create a better world.

About 50 per cent of the consumers were aware of sustainable tea & coffee. Consumers desired more information on the methods of cultivation, safety standards used, the social issues involved and the environmental

57

impact of cultivating tea & coffee. They also showed interest in the availability of such information on the internet.

Only about 40 per cent were willing to pay up to 10 per cent extra for purchasing sustainable tea & coffee. About a third of these consumers were willing to pay extra if they were assured that the extra payment would result in benefits to the lives of farmers’ children, less harm to the environment and that an independent party certified that the above conditions were complied with.

The three most important hurdles in the purchase of sustainable tea & coffee by consumers were doubts regarding the truthfulness of quality claims, lack of information and the concern for such brands being value for money.

Institutional consumers

In institutions, automatic vending machines were the most popular followed by supply by an outsourced canteen as the second important way in which tea & coffee were made available to the employees. A majority of the institutions were found to use a single source to obtain supplies of tea & coffee and most of them purchased their supplies of the two beverages from wholesalers. In most institutions, the quantity of tea purchased was higher than the quantity of coffee purchased.

The most important factors considered by the institutions in purchasing tea & coffee were the concern about impact of consumption of tea & coffee on the health, and therefore, concern for quality for both tea & coffee was high; the flavour in case of coffee and certification for both tea & coffee.

The survey revealed that most of the institutions did not have a well formulated procurement policy for tea & coffee; very few had a written code of conduct. None of the institutions reported that they specified to their suppliers what they would not buy or that the decisions or expenditure for supply of tea & coffee were open to public review.

Further, feedback was received from employees on the time and the frequency with which tea & coffee was made available to them as also the quantity and the price at which it was available. The employees were interested in knowing whether the brands used for the two beverages were certified. Very little feedback was received on the names of brands of tea & coffee used and the quality of tea & coffee supplied to them.

In case of both tea and coffee, the three most important sources for information were communication from suppliers, recommendation

from procurement department of the institution and research reports. The CSR department played an insignificant role in providing recommendation on using tea & coffee. Television was the least important medium but print media was important.

No significant differences were found on institutional awareness regarding tea and coffee, but only a third agreed that they did make an effort to find out information on aspects related to growing and processing of tea & coffee consumed by them. More institutions were found to be aware of sustainable tea as compared to sustainable coffee Even amongst institutions a majority were willing to spend up to 10 per cent extra for purchasing sustainable tea & coffee

The institutions reported that even though they could contribute to the adoption of sustainable farming and processing of tea & coffee, they would not be able to exercise pressure on the suppliers to actually supply the sustainable versions of the two beverages. They were not sure whether they would refuse to buy tea /coffee from suppliers if they were irresponsible towards environment or would change the suppliers if aware that they were following unethical or socially irresponsible business practices. Though they were not sure whether the management of their institutions would like to purchase sustainable tea & coffee, they felt that there would be no problem in paying more to purchase such tea & coffee.

The survey also revealed that in practice, they had neither started a dialogue with their suppliers for supplying sustainable tea & coffee, nor changed their suppliers if their behaviour was irresponsible towards the environment or wanting on ethical grounds.

The institutions felt that the most important problems they were likely to face in adopting sustainable tea & coffee were the lack of information

Chapter VII - Summary of the Findings

58


regarding their certification; the continuous availability of brands satisfying the sustainability criteria and the genuineness of quality claims made by the manufacturers

They failed to see that the consumption of sustainable products would improve their image in the eyes of the world or improve the company image in the eyes of the employees. The most important benefits they expected to achieve by introducing sustainable products were to encourage ethical practices and improve the health of their employees

Though a large number of institutions were using other sustainable products, like solar energy, energy efficient lighting and pollution control; almost 50 percent agreed that they would be able to implement purchase of sustainable tea & coffee within a year in their respective institutions, a large number were still undecided and a small number expected that they would be able to do so within two years.

Thus, the results indicate that the purchase of tea & coffee was a ‘low involvement’ purchase decision for both the individual and institutional consumers of Delhi and Bangalore.

59

APPENDIX

Table 1: World Tea Production (M Kg)

Country Jan to 2009 2008 +/- %

India June 333.9 345.7 -11.8 -3.4

North India 222.4 226.0 -3.5 -1.6

South India 111.5 119.7 -8.3 -6.9

Bangladesh June 14.2 16.0 -1.8 -11.4

Kenya June 139.3 157.4 -18.1 -11.5

Indonesia (PTP only) June 42.2 40.5 1.7 4.3

Malawi June 34.4 31.1 3.3 10.6

Sri Lanka June 130.5 171.3 -40.8 -23.8

Tanzania June 19.0 18.5 0.6 3.0

Zimbabwe June 5.7 6.72 -1.0 -14.7

Uganda June 21.1 15.18 5.9 38.7

Total 740.3 802.4 -62.1 -7.7

Source: www.indiatea.org

Table 2 World Tea Exports (M Kg)

Country Jan to 2009 2008 +/- %

India June 74.6 90.8 -16.2 -17.9

Kenya June 167.9 179.2 -11.3 -6.3

Sri Lanka May 107.3 129.5 -22.2 -17.2

Zimbabwe Mar 1.9 2.0 -0.2 -7.5

Argentina Mar 20.1 20.5 -0.4 -2.1

China May 124.3 124.0 0.3 0.3

Tanzania Mar 6.5 8.1 -1.6 -20.0

Uganda Apr 10.4 13.5 -3.1 -22.9

Indonesia Feb 14.6 16.3 -1.7 -10.4

Appendix

60


Malwai Apr 19.4 22.9 -3.5 -15.2

Total 546.8 606.7 -59.9 -9.9


Table 3 District-wise Indian Tea Production (Th Kg)

District/State During June Jan to June (+) / (-) in ‘09 over ‘08

2009 2008 2009 2008 During Up to

Assam Valley 59,117 51,446 132,644 132,397 7,671 247

Cachar 4,563 4,220 16,455 17,827 343 -1,372

Total Assam 63,680 55,666 149,099 150,224 8,014 -1,125

Darjeeling 1,132 1,353 3,690 4,125 -221 -435

Dooars 16,669 16,062 44,466 44,564 607 -98

Tarai 9,499 9,192 23,134 25,154 307 -2,020

Total West Bengal

27,300 26,607 71,290 73,843 693 -2,553

Others 895 809 2,037 1,896 86 141

Total North India 91,875 83,082 222,426 225,963 8,793 -3,537

Tamil Nadu 18,210 15,273 76,938 81,864 2,937 -4,926

Kerala 7,379 6,640 31,806 34,880 739 -3,074

Karnataka 586 445 2,725 2,973 141 -248

Total South India 26,175 22,358 111,469 119,717 3,817 -8,248

All India 118,050 105,440 333,895 345,680 12,610 -11,785


Table 4 Indian Tea Exports

Jan to June April to June

M Kg Rs Cr Rs/Kg M Kg Rs Cr Rs/Kg

2009 North India 38.4 585.09 152.45 18.0 286.13 158.78

South India 36.2 398.77 110.28 18.1 213.75 118.29

All India 74.5 983.86 131.99 36.1 499.9 138.51

2008 North India 46.5 565.31 121.47 16.3 234.90 144.55

South India 44.2 367.42 83.07 23.6 202.72 86.01

All India 90.8 932.73 102.76 39.8 437.6 109.90

61

Jan to June April to June

M Kg Rs Cr Rs/Kg M Kg Rs Cr Rs/Kg

Diff. 08~07 North India -8.2 19.8 31.0 1.8 51.2 14.2

South India -8.1 31.4 27.2 -5.5 11.0 32.3

All India -16.2 51.13 29.23 -3.7 62.26 28.61


Table 5 Destination-wise Tea Exports From India

Country January to March

2009 2008 +/-

M Kg ValueRs Crs Rs/Kg M Kg ValueRs Crs Rs/Kg M Kg

Russia 5.96 61.65 103.44 13.05 114.28 87.57 -7.09

Kazakistan 2.16 32.48 150.37 3.62 38.63 106.71 -1.46

TOTAL CIS 8.47 98.16 115.89 17.18 158.18 92.07 -8.71

UK 2.64 27.38 103.71 2.11 17.27 81.85 0.53

Netherlands 0.37 8.98 242.70 0.40 5.54 138.50 -0.03

Germany 0.84 16.17 192.50 0.81 12.12 149.63 0.03

Australia 1.18 32.38 274.41 1.20 20.99 174.92 -0.02

Ireland 0.22 5.54 251.82 0.21 6.65 316.67 0.01

Poland 0.57 7.63 133.86 1.05 10.11 96.29 -0.48

USA 2.02 38.05 188.37 2.42 32.51 134.34 -0.40

UAE 7.13 93.25 130.79 8.62 82.31 95.49 -1.49

Iran 1.55 21.42 138.19 3.92 40.32 102.86 -2.37

Canada 0.49 9.05 184.69 0.30 3.73 124.33 0.19

Iraq 1.16 10.47 90.26 1.16

Saudi Arabia 1.33 15.23 114.51 0.75 6.50 86.67 0.58

ARE 1.17 11.49 98.21 3.35 23.91 71.37 -2.18

Turkey 0.03 0.25 83.33 -0.03

Afghanistan 3.53 25.74 72.92 1.73 10.68 61.73 1.80

Appendix

62


Country January to March

2009 2008 +/-

M Kg ValueRs Crs Rs/Kg M Kg ValueRs Crs Rs/Kg M Kg

Kenya 0.65 4.09 62.92 0.87 5.07 58.32 -0.22

Japan 0.62 17.64 284.52 0.43 9.63 223.95 0.19

Sri Lanka 0.49 6.46 131.84 1.74 14.05 80.75 -1.25

Pakistan 2.36 16.48 69.83 1.83 11.51 62.90 0.53

Others 2.11 22.55 1.99 23.78 0.12

Total Exports 38.90 488.16 125.49 50.94 495.11 97.19 -12.04

Value (Rs Cr) 488 495 -7

North India 19.94 295.87 148.38 30.28 330.41 109.10 -10.34

South India 18.96 192.23 101.43 20.65 164.7 79.74 -1.69


63

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• Neil Jones (2007) Break through the barriers Supply Management. London:Jun 21,. Vol. 12, Iss. 13, p. 38-40.

• Neilson, Jeffrey and Pritchard, Bill (2007) Green Coffee? The Contradictions of Global Sustainability Initiatives from an Indian Perspective, Development Policy Review, Vol. 25, Issue 3, pp. 311-31

• Peter Jones, Daphne Comfort, David Hillier (2008). Moving towards sustainable food retailing? International Journal of Retail & Distribution Management, Vol. 36, Issue 12, p. 995-1001.

• Philpot, S.M, P. Bichier, R. Rice, and R. Greenberg. (2007).Field-testing ecological and economic benefits of coffee certification programs. Conservation Biology 21:975-985.

• Pretty, J., Smith, G., Goulding, K. W. T. , Groves, S. J., Henderson, I., Hine, R. E.,King, V. , van Oostrum, J. , Pendlington, D. J.. ,Vis, J. K. and Walter, C. (2008) Multi-year assessment of Unilever’s progress towards agricultural sustainability II: outcomes for peas (UK), spinach (Germany, Italy), tomatoes (Australia, Brazil, Greece, USA), tea (Kenya, Tanzania, India) and oil palm (Ghana), International Journal of Agricultural Sustainability; 2008, Vol. 6 Issue 1, p 63-88.

• RAINFOREST Alliance. (2009). All in a Good Cause, Caterer & Hotelkeeper;, Vol. 198 Issue 4565, p28-30.

• Raynolds, Laura T, Murray, Douglas, Leigh Taylor, Peter1 (2004) Fair trade coffee: building producer capacity via global networks, Journal of International Development; Vol. 16 Issue 8, p1109-1121.

• Sarah Lyon (2006) Migratory imaginations: The commodification and contradictions of shade grown coffee This research was generously supported through a University of Kentucky Summer Faculty Research Fellowship; a Fulbright-Hays Doctoral Dissertation Research Grant; Social Anthropology/Anthropologie Sociale; Oct2006, Vol. 14 Issue 3, p377-390.

• Saravanan, Velayutham (2004) Colonialism and coffee plantations: Decline of environment and tribals in Madras Presidency during the nineteenth century, Indian Economic & Social History Review; Oct-Dec, Vol. 41 Issue 4, p465-488.

• Satkofsky, Amy (2001) Sustainable Coffee Is For The Birds- And Everybody Else.In Business;, Vol. 23 Issue 4, p15

• Scott, Carrie (2006) Awareness is only the first step in the change; Core Strategies for Communicating Change www.ban the Coffee Mugs

• Scott, Julie E. (2003) Coffee Shop Meets Casino: Cultural Responses to Casino Tourism in Northern Cyprus. Journal of Sustainable Tourism; 2003, Vol. 11 Issue 2/3, p266.

• Seonaidh McDonald, Caroline Oates, Maree Thyne, Panayiota Alevizou, Leigh-Ann McMorland.(2009). Comparing sustainable consumption patterns across product sectors, International Journal of Consumer Studies, Vol. 33, Issue 2, pp. 137-145

• Shaun McCarthy.(2007) Sustain or be obsolete Supply Management. Vol. 12, Issue. 13, p. 34-36.

• Stosch, Lisa and Hyman, Eric L. (2002) Technology and Business Development Services for Small-Scale Coffee Production and Processing in El Salvador, International Journal of Technology Management & Sustainable Development; Vol. 1 Issue 2, p125.

• Strauss, Karyn (2003) supply line Hotels; Vol. 37 Issue 4, p72-75.

• Strenk, T. H. (2008) coffee Brew-ha-ha, Food Service Directory; Vol. 21 Issue 10, pFSB12-FSB12.

• Talbot, J. M. 1997. Where does your coffee dollar go?: The division of income and surplus along the coffee commodity chain. Studies in Comparative International Development 32: 56-91.

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• Umlauf-Garneau, Elyse (2000) Sustainable Sites. Professional Builder; Sep2000, Vol. 65 Issue 11, p43.

• Weber, Jeremy (2007) Fair Trade Coffee Enthusiasts Should Confront Reality Cato Journal, Winter, v. 27, iss. 1, pp. 109-17

• Wiersum, K. F. , Gole, T. W. ,Gatzweiler, F. ,Volkmann, J. ,Bognetteau, E.,and Wirtu, Olani (2008), Certification of Wild Coffee in Ethiopia: Experiences and challenges Forests, Trees, & Livelihoods; Vol. 18 Issue 1, p9-21.

• Winkels, Alexandra (2008), Rural In-migration and Global Trade: Managing the Risks of Coffee Farming in the Central Highlands of Vietnam. Mountain Research & Development; Feb2008, Vol. 28 Issue 1, p32-40.

Some Significant Research Publications From NTRF Funded Projects

Discipline Publication Details

Tea Biotechnology Sreedhar, C.H. and Satyanarayana, N.1996, Compatibility between tea (Camellia Spp.) clones in grafting of fresh cuttings. Journal of Plantation Crops 24 (Suppl.): 413-418

Balasaravanan, T., Vilod Haridas, Raj Kumar, R., Marimuthu, S. and Gunaseelan, K.X.1999. Hormonal regulations in somatic embryo maturation in tea. Pp.39. National Conference on Biotechnology: Hitherto & Henceforth, The American College, Madurai, Tamil Nadu.

Balasaravanan, S., Marimathu, S., Raj Kumar, R. and Balasaravanan, T.2000. Isolation, culture and fusion of protoplasts in tea. pp 3-9 In: Recent Advances in plantation crops research. Eds. N Muraleedharan and R. Raj Kumar. Allied Publishers limited, Chennai.

Balasubramanian, S., Marimuthu, S., Raj Kumar, R. and Vinod Haridas. 2000. Somatic embryogenesis and multiple production in Camellia sinensis (L.) O. Kuntze. Journal of Plantation Crops. 28: 44-49

Marimathu, S., Balasubramanian, S. and Raj Kumar, R. 1998. Biotechnological approaches in tea research: recent attempts and progress. Bulletin of UPASI Tea Scientific Department 52: 27-33.

Raj Kumar, R., Marimuthu, S., Balasubramanian, S. and Muraleedharan, N. 1998. Evolving New Elite Tea Cultivars Biotechnological Approaches. Assam Review and Tea News. 77: 20-22.

Vinod Haridas, Balasaravanan, T., Raj Kumar, R. and Marimuthu, S.2000. Factors influencing somatic embryogenesis in Camellia sinensis (L.) O. Kuntze. Pp. 31-35. In: Recent Advances in plantation drops research. Eds. N. Muraleedharan and R. Raj Kumar. Allied Publishers Limited, Chennai.

Bibliography

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Tea Quality Improvement

Gunasekar, M., Marinuthu, S. and Ramasamy, V. 1996. Substrate specificity of biosoperoxidases in the shoots of tea (iCamellia spp. L.) clones. J. Plantation Crops. 24 (Supplement): 560-568.

Joseph Lopez, S., Marimuthu, S., Ramakrishnan, M., Raj Kumar, R.2000. Reconstruction of tea polyphenol oxidase by limited proteolysis and its effect on black tea quality. International Conference on Plantation Crops, Hyderabad, pp: 12.

Tea Quality Improvement... contd Marimuthu, S., Ramakrishnan, M., Joseph Lopez, S and Raj Kumar, R.2000. Exploitation of Agaricus bisporus for extraction, purification and characterization of polyphenol oxidase and its application in tea processing. National seminar on recent advances in plant biology, Kasaragod, Pp. 72.

Marimuthu, S., Senthilkumar, R.S., Balasubramanian, S., Raj Kumar, R. and Aneetha Christie, S. 2000. Effect of addition of Biopectinase on biochemical composition of CTC Black tea. Recent Advances in Plantation Crops Research. Eds. N.Muraleedharan and R.Raj Kumar, Allied publishers limited, Chennai, India. Pp 265-269.

Ramakrishnan, M., Swaminathan, K., Marimathu, S and Sinthilkumar, R.S. and Raj Kumar, R. 1999. Screening of microbes for tea processing enzymes. National conference on Biotechnology: Hitheroto & Henceforth. The American College, Madurai.

Rakamrishnan, M., Raj Kumar, R., Marimuthu, S and Joseph Lopez, S.2000. Prediction of black tea quality by using fresh leaf constituents as indicators. Papers presented in International Conference on Plantation Crops, Hyderabad 12-15 December 2000. Abstract No. p-68, pp: 65.

Senthilkumar, R.S., Swaminathan, K., Marimuthu, S. and Raj Kumar, R.2000. Micorbial enzymes for tea processing. Recent Advances in Plantation Crops research. Eds. N. Muraleedharan and R. Raj Kumar, Allied publishers limnited, India. Pp 273-276.

Senthilkumar, R.S., Marimuthu, S., Raj Kumar, R., Joseph Lopez, S. and Ramakrishnan, M. 2001. Role of certain enzymes on the quality of CTC black tea. Bulletin of UPASI Tea Research Foundation. 54: 109-118.

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Plant Nutrient Dynamics V.Sudhahar, S.Venkatesan 2004 Influence of temperature and moisture onurea hydrolysis of tea soils. Journal of Plantation crops, 32 (Suppl.) 253-256.

Venkatesan, S., Ganapathy, M. N. K. 2004 Nitrate reductase activity in tea as influenced by various levels of nitrogen and potassium fertilizers. Communications in Soil and Plant Analysis. 35 (9&10): 1283-1292.

Venkatesan, S., Verma, D.P., Ganapathy, M.N.K. 2003. Targeted yield equations of nitrogen for clonal teas under south Indian conditions. Journal of Indian Society of Soil Science. 51 (2): 178-183.

Tea Soil and Plant Synergy Venkatesan, S., Murugesan, S., Ganapathy, M.N.K., Verma, D.P., 2004. Long-term impact of nitrogen and potassium fertilizers on yield, soil nutrients and biochemical parameters of tea. Journal of the Science of Food and Agriculture. 84(14): 1939-1944.

Verma, D.P., Venkatesan, S.2000. Evaluation of soil test methods of available nitrogen for tea in south India. In: Recent advances in plantation crops Allied Publishers Ltd., ChennaiL 191-198.

Borah, D.K., 2005. Effect of time and methods of application on leaching loss of NH4 and NO3 Nitrogen. Indian Journal of Hill Farming, 17(2).

Borah, D.K., 2005. Effects of mode and time of fertilizers applications on the extent of potassium leaching loss on tea soils of Assam, Journal of Potassium Research.

Bibliography

70



Bio-management of Pests

Baby, U.I. and Chandromouli, B. 1996. Biological antagonism of Trichoderma and Gliocladium spp. Against certain primary root pathogens of tea. Journal of Plantation Crops. 24 (Supplement): 249-255

Prem kumer, R. Sanjay,R. and Ponmurugan,P. 2002. Forecasting of blister blight disease of tea. Plantation Crop Research and Development in the New Millennium: 535-540

Selvasundaram, R. Muraleedharan, N. and Sachin, P.J. Kairomones for trapping shot hole borer infesting tea. Poster presented at the international conference â€œArea wide control of insect pests: integrating the sterile insect and related nuclear and other techniques sterile insect techniqueâ€ organized by United Nations international atomic energy agency (IAEA), Food and agricultural organization (FAO) at Vienna, Austria.

N.Muraleedharan, Evaluation of three entomopathogenic fungi for the control of red spider mites at International Conference on O-Cha (Tea) culture and science, Japan.

N.Muraleedharan, Studies on the pathogenicity of Beauveria bassiana (Balsamo) a fungal pathogen of the shot hole borer of tea, Microbials in insect pest management.

N.Muraleedharan, Morphology and pathogenicity of Paecilomyces fumosoroseus, fungal pathogen of leaf roller and aphids of tea, Placrosym XV.

Mukhopadhyay, A, and Das, S and Sarkar, M. 2004 Laboratory rearing of Sycamnus Croceovittatus (Dohra) (Heteroptera: Reduviidac), a predator of red slug caterpillar on termite food. Journal of Applied Zoological Research, 15(2): 168-170

Bio-management of Pests...contd Das, S., Sarkar, M and Mukhopadhyay, A.2005 changing diversity of hymenopteran parasitods from organically and conventionally managed tea ecosystem, of North Bengal, India. Journal of Environmental Biology, 26(3/4): 1-5

Mukhopadhyay. A, Shepra, and P.W, Pradhan. B, 2002. Diversity of ground arthropod community at organic and chemically intensive tea plantation of Darjeeling terai, Journal of Environmental Biology, J. Environ. Biol, 24(4), 471 = 476

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Management of Pesticide Residues in Tea

Manikandan, K.N., Muraleedharan, N., Selvasundaram, R. and Sudhakaran, R. 2000. Studies on the residues of certain pesticides and their persistence in tea, pp. 355-359. In: Recent Advances in Plantation Crops Research. Eds. N.Muraleedharan and R.Raj Kumar. Allied Publishers Limited, Chennai.

Muraleedharan, N., Manikandan, KN. And Selvasundaram, R. 2000. Degradation of Pesticide Residues in Tea. pp: 159-162. In: Proceedings of the Indo-UK workshop of Innovative pest and Disease Management in Horticultural and Plantation crops. SPIC Science Foundation, Chennai.

Manikandan, KN., Muraleedharan, N., Selvasundaram, R. 2001. Residues of deltamethrin in black tea. Bulletin of UPASI Tea Research Foundation 54 : 88-92.

Muraleedharan, N., Manikandan, KN. 2001. Pest control and pesticide residues in tea. iStandards India 15(4): 10-13.

Manikandan, KN., Muraleedharan, N., Selvasundaram, R. 2001. Residues and persistence of chlorpyrifos in processed black tea. Journal of Plantation Crops 29 (3): 35-37

Manikandan, KN., Muraleedharan, N., Selvasundaram, R. 20095. Degradation of quinalphos during processing of black tea. Journal of Plantation Crops 33 (2): 146-148.

Shankar, A., Sood, C., Kumar, V and Ravindranath, S.D. 2001. Modified extraction and clean-up procedure for the detection and determination of parathion methyl and chlorpyrifos residues in tea. Pest Management Science, 57: 458-462.

Singh, A. Kumar, V., Jaggi, S., Ravindranath, S.D., and Shankar, A.2001. Transfer of insecticide residue from made tea case study of book keeping between brew and spent leaves. Indian Journal of Applied Entomology, 15(1): 7-11

Medicinal Attributes of Tea Deb, S., Chakraorty, C and Chatterjee, R.N. 2005. Evaluation of anti stress effect of black tea (world blend) theaflavins and thearubigins in Drosophila system. Proceedings National Seminar on Molecule to Man. 29 pp.

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Medicinal Attributes of Tea... contd Das, A.S., Mukherjee, M and Mitra, C. 2004. Evidence of prospective â€“ anti-osteoporosis effect of black tea extract (BTE) in a bilaterally ovariectomized rat model. Asia Pacific J Clin Nutr 13(2): 210-216.

Das D., Mukherjee, S and Mitra, C.2002 Alcohol-induced hepatic oxidative stress. Prospective protective effect of Black tea extract. 21 Annual Conference of Society of Toxicology, India 4.

Das, D. Mukherjee, S and Mitra, C.2003. Protective effect of aquous extract of black tea (camellia sinensis) against ethanol-induced hepatic toxic effects. 15 Annual Conference of the Physiological Society of India. 78.

Das, A.S., Mukherjee S, Mukherjee, M, Das A.S. and Mitra, C.2003. Aquous extract of black tea (Camellia sinensis) prevents chronic ethanol toxicity. Current Science, 88(6): 952-961.

Das, A.S., Mukherjee, M., and Mitra, C. 2004. Evidence for a prospective anti-osteoporosis effect of black tea (Camellia sinensis) extract in a bilaterally ovariectomized rat model. Asia Pacific Journal of clinical Nutrition. 13 (2): 210-216.

Sinha, D. Roy, M., De, S., Siddiqi, M and Bhattacharya, R.K. 2003. Modulation of arsenic induced cytotoxicity by tea. Asia Pacific Journal of Cancer Prevention, 4:233-237.

Kundu, T., Bhattacharya, R.K., Siddiqui, M and Rot, M. 2005. Correlation of apoptosis with comet formation induced by tea polyphenols in human leukemia cells. Journal of Environmental pathology, Toxicology and oncology, 24(2): 89-102

Kundu, T.Subhabrato De, Madhuita Roy, Siddiqui, M and Bhattacharya, R.K. 2005. Induction of apoptosis in human leukemia cells by black tea and its polypheol theaflavin. Cancer Letters, 20: 1-11.

Krishnan, R, and Maru, B. 2004. Inhabiroty effect(s) of polymeric black polyphenol fractions on the formation of [3H] â€“ B(a)P â€“ derived DNA adducts. Journal of Agriculture and Food Chemistry. 52: 4261-4269

Kriahnan, R, and Maru, G. 2003. Evaluation of chemopreventive effects of black tea thearubigins. Symp. On Arsenic contamination in ground water and its health effects 1: 24-25

Kriahnan, R, and Maru, G. 2002. Effect of black tea thearubigins on the formulation of Benzo (a) Pyrene [B (a) P] derived DNA adducts in vitro Environmental Genomics and Health Sciences. 64-65.

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Medicinal Attributes of Tea... contd

.

Poddar, S. 2004. Dietary intervention with iron and black tea infusion in reducing cytotoxifity of arsenic Indian Journal of Experimental Biology. 42: 900-903.

Poddar, S., and De, M. 2002. Black tea as dietary protectant in combination with milk and sugar against arsenic in mice invivo Applied Nutrition. 27: 11-15

Chattopadhyay, P, Besra, S.E., Gomes, A., Sur, P., Mitra, S. and Vedasiromoni, J.R. 2004. Anti-inflammatory activity of tea (Camellia sinensis) root extract Life Sciences, 74: 1839-1849.

Bhattacharyya, A., Choudhuri, T., Pal, S., Chattopadhyay, S., Dutta, G.K., Sa. G and Das, T. 2002. Apoptogenic effects of black tea on Ehrlichs ascites carcinoma cell. Carcinogene:is, 23(1): 101 â€“ 106.

Bhattacharyya, A., Sa, G.., Das, T and Siddiqui, M. 2003 Black tea â€“ induced cellular survival: evidence for reduced toxicity and enhanced immunity in mice under stress. International Journal of Tea Science, 2:34-39

Bhattacharyya, A., Mandal, D.P., Lahiri, l, Sa. G and Das, T, 2004. Black tea protects imunocytes from tumor induced apoptosis by changing Bel-2/Bax ratio. Cancer Letters, 209:147-154.

Mandal, D.P., Lahiry, L., Bhattacharyya, A., Bhattacharyya, Abhijit, Sa, G and Das, T. 2004. Pharmacotherapeutics of tea: proposed strategies and pharmacological studies. International Journal of Tea Sciences, 3:261-272.

Chaudhuri, T., Sur, P., Gomes, A. Das, S.K.., and Ganguly. D.K. 1998. Effect of tea root extracts (TRE) on solid tumours induced by 3-methylcholan-threne in mice. Phytotherapy Research, 12:62-64.

Banerjee, S., Misra, A., Chattopadhyay, D.J. and Chatterjee, I.B. 2005. Black tea as an antidote for cigarette smoke induced oxidative damage of proteins. In: Banerjee, B. and Chaudhuri, T.C. (eds): Medicinal Properties of Tea. Oxford & IBH, New Delhi: pp 113-131

Lahiry, L., Mandal, D.P., Bhattacharyya, A., Sa, G and Das, T. 2005. Cancer prevention by cancer regression and rejuvenation of hostâ€™s defense system; dual role of tea. In: Banerjee and Chaudhuri, T.C. (eds): Medicinal Properties of tea. Oxford & IBH, New Delhi (Ms 89 â€“ 112).

Shukla, Y and Tanya, P. 2002. Anticarcimogenic effect of black Tea on pulmonary tumors of Swiss Albino mice Cancer Letters, 176:37-141.

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74



Medicinal Attributes of Tea... contd Krishnan, Rajesh and Maru, G.B. 2005. Inhibitory effect(s) of Polymeric Black Tea Polyphenols on the Formation of B(a) P-Derived DNA Adducts in Mouse Skin: Journal of Environmental Pathology, Tocicology and Oncology, 24(2)103 â€“ 114.

Krishnan, R, Raghunathan, R and Maru, G.B. 2005. Effects of polymeric black tea polyphenols on benzo(a)pyrene [B(a)P]-induced cytochrome P4501A1 and 1A2 in mice, Xenobiotica, 671-682

Krishnan, Rajesh and Maru, G.B. 2006. Isolation and analyses of polymeric polyphenols fractions from black tea, Food Chemistry 331 â€“ 340.

Banerjee. Shuvjit, Maity. Pasas, Mukherjee. Subhendu, Sil, K. Alok, Panda. Kousthbh, Chattopadhyay. Dhrubajyoti, Chatterjee. B. I., Black tea prevents cigarette smoke-induced apoptosis and lung damage, Journal of Inflamation 2007, 4:3 doi: 10.1186/1476-925-4-3

Chattopadhyay, S., Mukherjee, S., Sanyal, A. K., Sen, D and Mitra, C. 2008. Working postures of tea pluckers and its interrelationship with their plucking efficiency. Occupational Ergonomics, 6: 143 â€“ 157.

Padmini, E., Prema, K., Geetha, V., and Usha Rani, M. 2008. Comparatuve study on composition and antioxidant properties of mint and black tea extracts. 2008. International Journal of Food Science and Technology.

Electronic

Bhattacharyya. Nabarun, Seth. Sohan, Tudu. Bipan, Tamuly. Pradip, Jana. Arun, Ghosh. Devdulal, Bandyopadhyay. Rajib, Manabendra. Bhuyan, Sadhapandit. Santanu. 2006, Detection of optimum fermentation time for black tea manufacturing using electronic nose, Sensors and Actuators 2006.

Bhattacharyya. Nabarun, Seth. Sohan, Tudu. Bipan, Tamuly. Pradip, Jana. Arun, Ghosh. Devdulal, Bandyopadhyay. Rajib, Manabendra. Bhuyan. 2006, Monitoring of black tea fermentation process using electronic nose, Journal of Food Engineering.

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