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Consumer Survey on Sustainable Tea & Coffee Consumption

Author: Research Direction: Research Co-ordinators: Research led by: Research Support:

Dr Savita Hanspal Viraf M. Mehta, Shatadru Chattopadhyay Onkar Singh, Saji M. Kadavil Savita Hanspal in New Delhi Bharathi Ghanashyam in Bangalore 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

Consumer Survey on Sustainable Tea & Coffee Consumption

Consumer Survey on Sustainable Tea & Coffee Consumption

Contents

Preface
4

8 9 10 13 26 30

Foreword Executive Summary Chapter I Chapter II Chapter III Chapter IV Chapter V Chapter VI Chapter VII Appendix Bibliography Introduction and Review of Existing Literature Research Methodology Consumption and Purchase of Tea & Coffee: Individual Consumers

Consumption and Procurement of Tea & Coffee: Institutional Consumers 41 Attitude of Individual Consumers towards Sustainable Tea & Coffee Attitudes of Institutional Consumers toward Sustainable Tea & Coffee Summary of Findings 46 50 56 59 63

Tables

Tables

Table 1.1: Table 1.2: Table 1.3: Table 3.1: Table 4.1: Table 4.2: Table 4.3: Table 4.4: Table 4.5: Table 5.1: Table 5.2: Table 5.3: Table 5.4: Table 6.1: Table 6.2: Table 6.3: Table 6.4: Table. 6.5: Table 6.6:

Consumption of Coffee in India Volume Trends State-wise Consumption of Coffee in India (Urban+Rural) Changing Consuming Households Modes of institutional tea & coffee supply Factors influencing institutional purchase of tea & coffee Institutional procurement process for tea & coffee Employee feedback on tea & coffee Institutional sources of information for tea & coffee Consumer awareness about tea & coffee Information needs of consumers Conditions for paying extra for sustainable tea & coffee Problems in purchasing sustainable tea & coffee Institutional awareness about Tea & coffee Institutional role in promoting sustainable tea Institutional role in promoting sustainable Coffee Problems in purchasing sustainable tea Problems in purchasing sustainable coffee Potential benefits from introducing sustainable products

17 17 20 41 42 43 44 45 46 47 47 48 50 51 52 53 53 54
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Summary of importance of factors* influencing choice of tea & coffee 38

Consumer Survey on Sustainable Tea & Coffee Consumption

Figures
Fig. 2.1: Fig. 2.2: Fig. 2.3:
6

Gender composition of the sample Age composition of the sample Geographical distribution of the sample Educational qualifications of respondents Occupational status of respondents Family income of respondents Preference for tea & coffee Changing the brand/source of supply Frequency of consumption: Tea Frequency of consumption: Coffee Tea Consumption by Gender Coffee consumption by gender Tea Consumption among age groups Coffee consumption among age groups Tea consumption by geographical area Coffee Consumption by geographic area Tea consumption amongst differently educated Coffee consumption among different educational groups Consumption of tea amongst different occupational groups Coffee consumption among different occupations Consumption of tea among different income groups Coffee consumption by different income groups Loyalty to source of supply Supplier loyalty and demographics Type of supplier used for purchase

27 28 28 28 28 29 30 30 30 30 31 31 31 31 31 32 32 32 32 33 33 33 33 34 35

Fig 2.4: Fig. 2.5: Fig. 2.6: Fig. 3.1: Fig. 3.2: Fig. 3.3a: Fig. 3.3b: Fig. 3.4: Fig. 3.5: Fig. 3.6: Fig. 3.7: Fig. 3.8: Fig. 3.9: Fig. 3.10: Fig. 3.11: Fig. 3.12: Fig. 3.13: Fig. 3.14: Fig. 3.15: Fig. 3.16: Fig. 3.17: Fig. 3.18:

Figures
Fig. 3.19: Fig. 3.20: Fig. 3.21: Fig. 3.22: Fig. 3.23: Fig. 3.24: Fig. 3.25: Fig. 3.26: Fig. 3.27: Fig. 3.28: Fig. 3.29: Fig. 3.30: Fig. 3.31: Fig. 3.32: Fig. 3.33: Fig. 4.1: Fig. 4.2: Fig. 4.3: Fig. 4.4: Fig. 5.1: Fig. 5.2: Fig. 5.3: Fig. 6.1: Fig. 6.2: Fig. 6.3: Fig. 6.4: Fig. 6.5: Form of purchase Importance of price tea & coffee Importance of quality Importance of taste Importance of Flavour Importance of environmental concerns Importance of social concerns Importance of impact on health Importance of family Importance of peers Importance of familiarity with the supplier Importance of reputation of the supplier Importance of certification Importance of promotions and discounts Sources of information: tea & coffee Modes of payment for tea & coffee Quantity of tea & coffee purchased Institutional source loyalty Institutional sources of purchase Consumer awareness of sustainable tea & coffee Willingness to pay extra Extent of extra payment Institutional awareness about sustainable tea & coffee Extent of institutional willingness to pay extra Use of other sustainable products Intention to initiate purchase Duration for implementation 35 35 35 36 36 36 36 36 37 37 37 38 38 38 39 41 41 42 42 46 47 47 52 52 55 55 55
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Chapter I - Introduction

CHAPTER I
INTRODUCTION
Background
t 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

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

13

Consumer Survey on Sustainable Tea & Coffee Consumption


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. 14 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. 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 worlds 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

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. 127-128 3 Smithsonian Migratory Bird Center, First Sustainable Coffee Congress overview paper 4 Sosa, Elaine Sustainable Coffee: The Road Back for Nicaragua? www.sallys-place.com

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-certifiedcoffees.html 6 http://www.ineedcoffee.com/02/indian/Eco-Friendly Indian Coffee: A Profile

Chapter I - Introduction
Coffee plantations in India use traditional methods and cultivate shadegrown 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 rainbearing 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 multicropping 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 (Mysore) region, and Kerala and Tamil Nadu are the other main regions. Most of Indias shade coffee comes from Karnataka, but the majority of Indias 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. 15

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

Consumer Survey on Sustainable Tea & Coffee Consumption


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: 16 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 Caf 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 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). 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.

Chapter I - Introduction
Table 1.1: Consumption of Coffee in India Volume Trends 2005 Overall Urban Rural 2003 Overall Urban Rural Instant % 52 59 45 Instant % 51 53 47 R&G % 48 41 55 R&G % 49 47 53 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.

Table 1.2: State-wise Consumption of Coffee in India (Urban+Rural) 2003 T.N Karnataka AP Kerala South Non-South Share (%) 0.35 0.27 0.20 0.18 0.92 0.08 2005 share(%) 0.34 0.30 0.20 0.16 0.80 0.20

Health was a big barrier to more frequent consumption among those who drank only one cup of coffee a day. Among occasional 17 coffee drinkers and non-drinkers, habit, nonconsumption 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

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-ofthe-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

Consumer Survey on Sustainable Tea & Coffee Consumption


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. 18 Unilever, the worlds 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 worlds 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. 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.

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

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

Chapter I - Introduction
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 Indias 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 Indias 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 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.

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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.

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, Workmens Compensation Act, Industrial Dispute Act 1947, Minimum Wages Act of 1948, Employerss 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.

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-teacertification.html

Consumer Survey on Sustainable Tea & Coffee Consumption


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

The Changing Face of the Indian Consumer


Favourable demographic, economic, social and psychographic changes relating to Indias 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

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 Destitute Consumer Classification Hand-tomouth existence New entrants into consumption No. of households ( in millions) 1995 35 2000 2006 24 17

20

Aspirants

48

32

33

Climbers

Cash con- 48 strained benefit seekers Cost benefit optimizer 29

66

78

Consumers

55

75

The rich

Benefit 1 maximizer 161

3 180

6 209

Total no. of households (in millions)

Chapter I - Introduction
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. 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

21

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.

Consumer Survey on Sustainable Tea & Coffee Consumption


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. 22 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-

Chapter I - Introduction
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 multistakeholder 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

23

Consumer Survey on Sustainable Tea & Coffee Consumption


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

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

24

Chapter I - Introduction
(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 trades 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. MeiFiang 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. 25

Consumer Survey on Sustainable Tea & Coffee Consumption


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

CHAPTER II
RESEARCH METHODOLOGY
he 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 worlds 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 worlds most socially aware, while North Americans consistently lagged behind the global average. Four in five (81%) Mexicans thought its 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

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 Solidaridads UTZ Certification Code for the tea sector.

26

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

Chapter II - Research Methodology


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 caf 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.

27

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

Consumer Survey on Sustainable Tea & Coffee Consumption


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

Fig 2.4: Educational qualifications of respondents


Frequency

14%

2% 19%

1 completed school 2 undergraduate 3 graduate

25% 4 postgraduate

28
6% 12% 40% 15% 1 18-25 2 26-35 3 36-45 4 46-55 5 55+ 27%

40%

5 prof essional

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

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

1%5% 18%

1 student 26% 2 housew ife 3 govt service 4 pvt job 5 business 6 profession 7 unemployed 8 retired

8%

9% 1% 32%

51%

49%

Banglore Delhi

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)

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)

Chapter II - Research Methodology


Fig. 2.6: Family income of respondents (In Rupees)
9% 8% 36% 1 5% 1<3 l ak hs 2 3 - 5 l ak hs 3 5- 7 l ak hs 4 7- 1 0 l ak hs 5 ab o v e 1 0 l ak hs

Education Delhi College of Engg B Vidyapeeth Rai Business School

29

32%

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

Consumer Survey on Sustainable Tea & Coffee Consumption

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
yes

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

his 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.

no

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)
6% 4%

Preference for tea & coffee


The survey revealed (Fig. 3.1) that only five per cent respondents preferred Fig. 3.1: Preference for tea & coffee

< 2 cups 47% 2-4 cups 4 cups-6 > 6 cups

F r e qu e nc y

43%

5% 37% 1T e a 2 C o f f ee 3 B ot h 4 N o ne 27%
29% < 2 cups 2-4 cups 4 cups-6 > 6 cups

Fig. 3.3b: Frequency of consumption: Coffee


1% 4%

31 %

(cups per day)

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

66%

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

Chapter III - Consumption and Purchase of Tea & Coffee: Individual Consumers
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. Fig. 3.7: Coffee consumption among age groups (cups per day)
200

100

age
18-25

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)
200

26-35 36-45

Count

46-55 0 < 2 cups 2-4 cups 4 cups-6 > 6 cups 55+

31

freq coffee

300

Fig. 3.5: Coffee Consumption by Gender (cups per day)

200

100

100

gender
Count
male 0 < 2 cups 2-4 cups 4 cups-6 > 6 cups female

gender
Count
male 0 < 2 cups 2-4 cups 4 cups-6 > 6 cups female

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)
200

frequency tea

freq coffee

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)
100 200

age
18-25 26-35 36-45

100

city

Count

Count

46-55 0 < 2 cups 2-4 cups 4 cups-6 > 6 cups 55+

Banglore 0 < 2 cups 2-4 cups 4 cups-6 > 6 cups Delhi

frequency tea

frequency tea

Consumer Survey on Sustainable Tea & Coffee Consumption


Fig. 3.9: Coffee Consumption by geographic area (cups per day)
300

Fig. 3.11: Coffee consumption among different educational groups (cups per day)
200

200

100
100

education
completed school

32
Count
0 < 2 cups 2-4 cups 4 cups-6 > 6 cups

city
Banglore

undergraduate graduate

Count

Delhi

postgraduate 0 < 2 cups 2-4 cups 4 cups-6 > 6 cups professional

freq coffee

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.

freq coffee

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)
140

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 followingstudents, 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) 120
100

120

100

occupation
student

80

education
60 completed school undergraduate

80 housew ife 60 govt service pvt job 40 business profession

40

graduate

Count

20 0 < 2 cups 2-4 cups 4 cups-6 > 6 cups

Count

postgraduate professional

20 unemployed 0 < 2 cups 2-4 cups 4 cups-6 > 6 cups retired

frequency tea

frequency tea

Chapter III - Consumption and Purchase of Tea & Coffee: Individual Consumers
Fig. 3.13: Coffee consumption among different occupations
140

Fig. 3.15: Coffee consumption by different income groups


160 140 120 100 80

120

occupation
student housew ife

100

80 govt service 60 pvt job business profession

income
<3 lakhs 3-5 lakhs

40

60 40

Count

20 0 < 2 cups 2-4 cups 4 cups-6 > 6 cups

unemployed retired

5-7 lakhs 7-10 lakhs above 10 lakhs < 2 cups 2-4 cups 4 cups-6 > 6 cups

33

Count

20 0

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
120

freq coffee

freq coffee

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
multiple sources

100

80

60

income
<3 lakhs

40

3-5 lakhs 5-7 lakhs

Count

20 7-10 lakhs 0 < 2 cups 2-4 cups 4 cups-6 > 6 cups


single source

above 10 lakhs

frequency tea

Consumer Survey on Sustainable Tea & Coffee Consumption


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
60

d) Education
70 60

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.

34

50

50
40

40
30

education
30 completed school undergraduate graduate postgraduate professional single source multiple sources

20

20
10 male female single source multiple sources

single

Percent

Percent

gender

10 0

single

b) Age
80

e) Occupation
80

occupation
60

60

student housew ife

40

age
18-25 26-35

40

govt service pvt job business

20

20

Percent

Percent

36-45 46-55 0 s ingle s ourc e m ultiple s ourc es 55+

profession unemployed retired single source multiple sources

single

single

c) City
70

f) Income
120

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.

60
100

50
80

40
60

income
<3 lakhs

30
40

20

3-5 lakhs 5-7 lakhs

city
Percent
10 0 single source multiple sources

Count

20 7-10 lakhs 0 single source multiple sources above 10 lakhs

Banglore Delhi

single

single

Chapter III - Consumption and Purchase of Tea & Coffee: Individual Consumers
Fig. 3.18: Type of supplier used for purchase
Import Manufacturer w holesaler

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
not important at all not so important highly important

Retailer

Coffee
not important at all not so important highly important

35

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
retailers, brand unbranded branded loose

important

important

indifferent

indifferent

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)
branded packet

Fig. 3.21: Importance of quality Tea


not important at all

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.

Coffee
not so important indifferent

not so important

indifferent
highly important

highly important

important
important

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.

Consumer Survey on Sustainable Tea & Coffee Consumption

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
not important at all not so important

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
not important at all not so important highly important
not important at all not so important highly important

Coffee

Coffee
not so important indifferent

36
indifferent highly important

important
highly important
important

indifferent
indifferent

important

important

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
not important at all not so important highly important

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
not important at all not so important indifferent

Coffee
not important at all not so important highly important

important

important

indifferent

indifferent

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.
highly important

Coffee
not important at all not so important indifferent

highly important

Fig. 3.26: Importance of impact on health Tea


not important at all not so important

Coffee
not important at all not s o important highly important

important

important

highly important

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

indifferent
indifferent important

important

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

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 familys 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
not important at all not so 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
not important at all not so important highly important important

37

Coffee
not important at all not so important highly important

indifferent

important

important

indifferent
indifferent

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
not important at all not so important highly important important

Coffee
not important at all not so important highly important important

Coffee
n o t i m p o rta n t a t a l l n o t s o i m p o rta n t h i g h l y i m p o rta n t i m p o rta n t

indifferent

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)

indifferent

i n d i ffe re n t

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

Consumer Survey on Sustainable Tea & Coffee Consumption


Fig. 3.30: Importance of reputation of the supplier Tea
not important at all highly important not so important

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
not important at all

important

Coffee
highly important
not important at all not so important highly important

indifferent

38

not so important

Coffee
not important at all not so important

important
highly important

important

important

indifferent

indifferent

indifferent

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
not important at all not so important highly important

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 highly important 2 important 1 16 25 41 2 52 11 63 2 1 3 49 15 64 4 39 21 60 3 2 5 20 19 39 19 5 2 6 12 22 34 20 8 3 7 28 25 53 8 2 2 8 15 32 47 11 3 4 9 5 15 20 19 14 12 10 4 16 20 21 14 10 11 7 18 25 21 11 8 12 26 28 54 5 3 3 13 10 18 28 17 11 9

indifferent

Total
important

Coffee

3 13 indifferent 4 not so important 5 not important at all 7 4

not important at all not so important highly important

indifferent important

Total

11

11

26

24

19

20

Chapter III - Consumption and Purchase of Tea & Coffee: Individual Consumers
Coffee 1 highly important 2 important Total 3 indifferent 4 not so important 5 not important at all Total 1 13 27 40 6 6 4 2 3 4 5 6 7 22 22 44 8 2 2 8 13 27 9 6 10 11 5 5 12 13

Fig. 3.33: Sources of information: tea and coffee


Source of information:friends

45 45 35 19 11 9 9 16 18 19 37 30 14 17 3 2 4 5

22 10 23 16 45 26 5 2 4 14 9 7
not important at all not so important

12 14 18

highly important

54 54 51 2 2 4 1

40 18 19 23 9 3 4 15 15 16 12 11 10 11 11 7

important

39
indifferent

Source of information:Radio
highly important

10

23 22 17

16

not important at all important

*Key to factors:
not so important

1. 2. 3. 4. 5. 6. 7.

Price Quality Taste Flavour Environmental concerns Social concerns Health concerns

8. 9. 10. 11. 12. 13.

Family Peers Supplier familiarity Supplier reputation Certification Promotion Schemes

indifferent

Source of information:Family
not important at all not so important indifferent highly important

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.

important

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.

Source of information:Television
not important at all highly important not so important

indifferent

important

Consumer Survey on Sustainable Tea & Coffee Consumption


Source of information:Print Media

Source of information:Comparative Testing Reports


not important at all highly important

not important at all


not so important important

highly important

not so important

important

indifferent

40

Source of information:Internet
highly important not important at all important

indifferent

not s o important indifferent

Source of inf ormation:Adv ertisements


not important at all not s o 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.

important

indifferent

Source of information:Research Reports


not important at all highly important

not so important

important

indifferent

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


1. 2. 3. 4. Lump sum monthly contribution Price per cup paid at the canteen Do not pay at all Payment beyond a certain minimum no of cups 5. Deduction from salary 6. 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
Subsidised price

CHAPTER IV
CONSUMPTION AND PROCUREMENT OF TEA & COFFEE: INSTITUTIONAL CONSUMERS
he 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.

41

How institutions supply tea/ coffee


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

No payment

Monthly contribution

Table 4.1: Modes of institutional tea & coffee supply Mode of supply By a canteen run by employees By an outsourced canteen Automatic vending machines Personal attendant Own arrangement Frequency 2 4 7 2 2 Percent 11.8 23.5 41.2 11.8 11.8

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)
12 10

No of organisations

Total 17 100 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 of institutions.

8 6 4 2 0 0--20 21-50 51-100 101-200 quantity purchased (kg) tea coffee

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.

Consumer Survey on Sustainable Tea & Coffee Consumption


In most institutions, the quantity of tea purchased was higher than the quantity of coffee. 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
29%

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

42

Tea
single multiple

4 39

5 25 50 75 25

6 17 50 67 33

7 50 50

10 8

11 42 42 84 8

12 8 23 31 31 23

highly 5 important Total

80 57

71%

important 35 13 indifferent 55 7

29 39 14 15 8

42 25 25 8

38 38 38 15 9

33 41 33 17 8

40 93 86 78

100 42

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
manufacturer retailer

not so 5 important not important at all Total Coffee highly important 5 1 29 43 72 21 7 2 85 15 3

15

8 4 5 6 7 45 55 100

33 8

24 9

25 10 9

8 11 36 46 82 9

38 12 8 17 25 33 25

61 31 8

42 27 9 42 55 55 8 18 36

w holesaler

important Total indifferent not so important

42 46 42 46 33 18 17 27

36 45 27 18

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

100 92 84 82 64

Factors influencing purchase of tea & coffee


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

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


Coffee not important at all Total 7 1 2 3 4 8 5 6 7 8 8 9 9 10 9 11 9 12 17

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

25 36

27

42

* Key to factors: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. Price Quality Taste Flavour Environmental concerns Social concerns Health concerns Peers Supplier familiarity Supplier reputation Certification Promotion Schemes

43

Cant 38 44 40 50 31 say No Yes 25 25 20 31 38 31 2 40 19 3 4 31 5

38 31 44 19 31

38 25 69 19 69 38 38 6 7 37 12 31 8 9 10

Coffee 1 Cant say No Yes

43 50 46 57 36 57 36 50 25 43 21 21 15 29 36 7 36 29 39 14 28 36 64 21 58 29 29 17 28

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?

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 cant say.

Consumer Survey on Sustainable Tea & Coffee Consumption


1. 2. 3. 4. 5. The brand of tea & coffee used The source of supply of tea & coffee The price at which it is available The quantity of tea & coffee served 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. 44 The results are shown in Table 4.4 Table 4.4: Employee feedback on tea & coffee
Tea Cant say No Yes 1 31 38 31 2 19 25 56 2 14 29 57 3 6 19 75 3 7 21 71 4 6 19 75 4 7 21 71 23 77 19 81 5 5 6 31 44 35 6 29 50 21 7 27 20 53 7 23 23 54

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.

Communication from suppliers Advertisements in print media Advertisements on Television Recommendation from Administration department of the institution. Recommendation from the CSR department of the institution Recommendation from procurement department of the institution Internet Research reports Competitors choice of brands Recommendation from employee(s) of the organisation 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 21 29 50 21 14 14 7 7 57 21 14 2 3 7 17 24 31 31 14 7 7 4 7 57 64 29 5 7 39 46 46 6 21 36 57 29 7 7 7 7 57 21 14 7 8 21 21 42 36 7 14 9 7 40 47 25 14 14 7 10 14 43 57 36

Coffee 1 Cant say No Yes 28 43 29

Highly important Important Total Somewhat important Not so important Not important at all Total Coffee Highly important Important Total

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.

28 1 36 27 63

35 2 7 59 66

45 3 7 18 25

7 4

7 5 7

14 6 26 33 59

35 7

21 8 20

28 9 7 39 46

7 10 17 42 59

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

67 67

38 45

7 7

25 45

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


Coffee Somewhat important Not so important Not important at all 1 18 18 7 2 26 3 29 38 7 4 33 5 55 6 33 7 7 58 27 7 8 42 7 7 9 31 16 7 10 24 19

Total

18

45

34

14

23

19

45

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.

Consumer Survey on Sustainable Tea & Coffee Consumption


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.

CHAPTER V
ATTITUDES OF INDIVIDUAL CONSUMERS TOWARDS SUSTAINABLE TEA & COFFEE
46

disagree and cant 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.

The consumers themselves however were not sure whether they were empowered and could he data on the attitudes and opinions of institutional and individual play a significant role in improving conditions consumers was obtained on a three-point scale consisting of agree, 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 Awareness about Tea & coffee it could be available in many forms like, certified The AIO statements used to measure the existing level of consumer awareness by Organic, Fair Trade, UTZ CERTIFIED, about cultivation and processing of tea & coffee consumed by them and the SA 8000, ISO 9001, Rain Forest, etc. Fig. 5.1 shows that the sample of individual consumers responses are presented in Table 5.1. was equally divided into two groups consisting Table 5.1: Consumer awareness about tea & coffee of those who had heard of sustainable tea & coffee and those who had not heard of it.
Statement C a n t Disagree say 31 15 16 Agree 33 36
yes

I have really never thought of finding out where the 36 tea /coffee I consume, comes from. I am concerned that farmers growing tea & coffee are 49 paid a fair price for their produce I am concerned that the companies I buy tea/ coffee 43 from are sourcing raw tea & coffee from farmers following sustainable agricultural practices. I am concerned that the companies I buy tea/ coffee 45 from are following good labour practices in processing/ manufacturing tea & coffee

Fig. 5.1 Consumer awareness of sustainable tea & coffee

No

42

Information needs of the consumers


15 40

The results of the survey revealed that consumers desired more information on the methods of cultivation, safety standards used, I believe that my actions can create a better world. 53 8 39 the social issues involved and the environmental In case of almost all the statements, only about a third of the consumers reported impact of cultivating tea & coffee (Table 5.2). that though they had really never thought of proactively seeking information They agreed that they would appreciate if such about the geographical facts regarding the beverages consumed by them, yet they information was available on the internet.

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


Table 5.2: Information needs of consumers
Statement 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. I feel that I should get more information about the safety standards in the cultivation and processing of tea & coffee. I feel that I should get more information about the social issues linked to the cultivation and processing of tea & coffee. I feel that I should get more information about the environmental impact of the cultivation and processing of tea & coffee. 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. Cant say 48 Disagree 9 Agree 43

Fig. 5.3 Extent of extra payment


Not w illing to pay e 76-100% 51-75% 26-50% <5%

11-25%

48

43

5-10%

50

11

39

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 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. Cant say Disagree 50 7 Agree 43

47

49

42

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
Yes

No

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.

Consumer Survey on Sustainable Tea & Coffee Consumption


Statement 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) 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) Cant say Disagree 50 12 Agree 38 Statement Cant say Disagree 9 Agree 42

I would feel good about the management of 49 my organisation if such sustainable tea & coffee was introduced for my consumption as part of their CSR policy

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. 2. 3. 4. 5. 6. 7. 8. Lack of information Genuineness of quality claims Availability of continuous supply Price/affordability Acceptability by other members Price/affordability Value for money Information regarding certification

48

49

13

38

The responses are presented in Table 5.5 Table 5.4: Problems in purchasing sustainable tea & coffee
Problems Highly important 49 54 29 Important Somewhat Not so important 3 2 8 Not important at all

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.

Lack of Information Genuineness of quality claims Availability of continuous supply Acceptability by employees Availability of brands

40 36 43

8 8 20

16 20

29 44

31 26

17 7

8 3

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


Problems Highly important 32 Important Somewhat Not so important 6 3 3 2 Not important at all 3

Price/ affordability Information re: certification

44 36 39

15 8 10

Value for money 49 46

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.

49

Consumer Survey on Sustainable Tea & Coffee Consumption

50

CHAPTER VI
ATTITUDES OF INSTITUTIONAL CONSUMERS TOWARD SUSTAINABLE TEA & COFFEE

n 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 Where the tea /coffee is grown How the tea & coffee is grown Cant say Tea 35 30 Cant say Coffee 40 34 29 33 20 27 27 33 Yes Tea 41 41 38 35 53 47 47 47 Yes Coffee 47 53 50 33 53 53 47 47 No Tea 24 29 38 35 29 29 29 24 No Coffee 13 13 21 33 27 20 27 20

Whether the cultivation of tea & coffee has an 25 impact on the environment Whether sustainable methods of cultivation are 30 being followed in growing the tea or coffee Whether farmers growing tea & coffee are paid a 18 fair price for their produce. The labour practices of companies you buy tea/ 24 coffee from Whether responsible practices are being followed 24 when tea & coffee is processed or manufactured Whether the way the tea & coffee is grown / 29 processed influences your health?

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


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
8
8

Coffee

51

Count

2 cant say no yes

Count

2 cant say no yes

Institutional role in promoting sustainable tea & coffee heard


heard

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 I can contribute to the adoption of sustainable farming and manufacturing of tea /coffee I believe I can exercise pressure on the suppliers to supply sustainable tea /coffee I would refuse to buy tea /coffee from suppliers if they are irresponsible towards environment I would change the supplier if aware of unethical or socially irresponsible business practices. My organisation would be willing to pay more for purchasing sustainable tea & coffee. If a choice is available, would you like to purchase sustainable tea & coffee? Have you engaged in a dialogue with your suppliers for more sustainable versions of tea & coffee? Have you ever changed your suppliers because of their environmental or ethical behaviour? Cant say 31 65 59 65 35 65 18 23 77 65 6 No 13 6 Yes 56 29 41 35 59 35 6 12

Consumer Survey on Sustainable Tea & Coffee Consumption


Table 6.3 Institutional role in promoting sustainable Coffee
Statements I can contribute to the adoption of sustainable farming and manufacturing of tea /coffee I believe I can exercise pressure on the suppliers to supply sustainable tea /coffee I would refuse to buy tea / coffee from suppliers if they are irresponsible towards environment I would change the supplier if aware of unethical or socially irresponsible business practices. Cant say 31 No 13 Yes 56

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.

65

29

52

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
26-50% 11-25%

59

41

65

35

less than 5%

My organisation would be willing 59 to pay more for purchasing sustainable tea & coffee. If a choice is available, would you 35 like to purchase sustainable tea & coffee? Have you engaged in a dialogue with your suppliers for more sustainable versions of tea & coffee? Have you ever changed your suppliers because of their environmental or ethical behaviour? 6

35

65

5-10%

Problems in purchasing sustainable tea & coffee


18 76

12

23

65

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).

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

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


Table 6.4 Problems in purchasing sustainable tea
Problems Highly important Important Budgetary constraints Lack of Information Genuineness of quality claims Availability of continuous supply Acceptability by employees Availability of brands Price/affordability Value for money Any other 12 29 29 18 24 18 24 30 29 47 53 71 47 59 24 35 65 41 29 18 12 29 17 29 35 17 6 23 Tea Somewhat Important Not so Important 12 29 Not Important at All 6 29

53

Information regarding certification 18

Table 6.5 Problems in purchasing sustainable coffee


Problems Highly important Budgetary constraints Lack of Information Genuineness of quality claims Availability of continuous supply Acceptability by employees Availability of brands Price/affordability Value for money Any other 18 29 29 18 24 18 24 30 Important 29 47 47 65 47 59 24 35 82 41 18 24 18 29 18 29 35 6 24 Coffee Somewhat Important Not so Important 12 6 Not Important at All

Information regarding certification 18

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

Consumer Survey on Sustainable Tea & Coffee Consumption


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. 2. 3. 4. 5. 6. 7. 8. 9. 10. Improve company image in the eyes of the world. Improve company image in the eyes of employees Encourage ethical practices Improve employee morale Reduce adverse impact on health Encourage development of eco labels Encourage adoption of best practices Improve standards of quality Prevent environmental degradation Any other (Please specify)

54

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 Improve company image in the eyes of the world. Improve company image in the eyes of employees Encourage ethical practices Improve employee morale Reduce adverse impact on health Encourage development of eco labels Encourage adoption of best practices Highly important 35 29 53 35 53 35 53 Important 24 53 29 24 41 47 29 Somewhat Important Not so Important 41 18 18 41 6 18 18 Not Important at All

Improve standards of quality Prevent environmental degradation

47 41

29 53

24 6

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

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
no

Fig. 6.5 Duration for implementation

can't say

within 6 months

bet 12-24 months

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.

55

yes

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

cant say

yes

no

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 cant say.

Consumer Survey on Sustainable Tea & Coffee Consumption


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

CHAPTER VII
SUMMARY OF THE FINDINGS
56

he 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

Chapter VII - Summary of the Findings


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. 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

57

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

Consumer Survey on Sustainable Tea & Coffee Consumption


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.

58

Appendix

APPENDIX
Table 1: World Tea Production (M Kg)
Country India North India South India Bangladesh Kenya Indonesia (PTP only) Malawi Sri Lanka Tanzania Zimbabwe Uganda Total June June June June June June June June Jan to June 2009 333.9 222.4 111.5 14.2 139.3 42.2 34.4 130.5 19.0 5.7 21.1 740.3 2008 345.7 226.0 119.7 16.0 157.4 40.5 31.1 171.3 18.5 6.72 15.18 802.4 +/-11.8 -3.5 -8.3 -1.8 -18.1 1.7 3.3 -40.8 0.6 -1.0 5.9 -62.1 % -3.4 -1.6 -6.9 -11.4 -11.5 4.3 10.6 -23.8 3.0 -14.7 38.7 -7.7

59

Source: www.indiatea.org Table 2 World Tea Exports (M Kg)


Country India Kenya Sri Lanka Zimbabwe Argentina China Tanzania Uganda Indonesia Jan to June June May Mar Mar May Mar Apr Feb 2009 74.6 167.9 107.3 1.9 20.1 124.3 6.5 10.4 14.6 2008 90.8 179.2 129.5 2.0 20.5 124.0 8.1 13.5 16.3 +/-16.2 -11.3 -22.2 -0.2 -0.4 0.3 -1.6 -3.1 -1.7 % -17.9 -6.3 -17.2 -7.5 -2.1 0.3 -20.0 -22.9 -10.4

Consumer Survey on Sustainable Tea & Coffee Consumption


Malwai Total Apr 19.4 546.8 22.9 606.7 -3.5 -59.9 -15.2 -9.9

Source: www.indiatea.org Table 3 District-wise Indian Tea Production (Th Kg)


District/State 2009 During June 2008 51,446 4,220 55,666 1,353 16,062 9,192 26,607 809 83,082 15,273 6,640 445 22,358 105,440 2009 132,644 16,455 149,099 3,690 44,466 23,134 71,290 2,037 222,426 76,938 31,806 2,725 111,469 333,895 59,117 4,563 63,680 1,132 16,669 9,499 27,300 895 91,875 18,210 7,379 586 26,175 118,050 Jan to June 2008 132,397 17,827 150,224 4,125 44,564 25,154 73,843 1,896 225,963 81,864 34,880 2,973 119,717 345,680 (+) / (-) in 09 over 08 During 7,671 343 8,014 -221 607 307 693 86 8,793 2,937 739 141 3,817 12,610 Up to 247 -1,372 -1,125 -435 -98 -2,020 -2,553 141 -3,537 -4,926 -3,074 -248 -8,248 -11,785

60

Assam Valley Cachar Total Assam Darjeeling Dooars Tarai Total West Bengal Others Total North India Tamil Nadu Kerala Karnataka Total South India All India

Source: www.indiatea.org Table 4 Indian Tea Exports


Jan to June M Kg 2009 North India South India All India 2008 North India South India All India 38.4 36.2 74.5 46.5 44.2 90.8 Rs Cr 585.09 398.77 983.86 565.31 367.42 932.73 Rs/Kg 152.45 110.28 131.99 121.47 83.07 102.76 M Kg 18.0 18.1 36.1 16.3 23.6 39.8 April to June Rs Cr 286.13 213.75 499.9 234.90 202.72 437.6 Rs/Kg 158.78 118.29 138.51 144.55 86.01 109.90

Appendix
Jan to June M Kg Diff. 08~07 North India South India All India -8.2 -8.1 -16.2 Rs Cr 19.8 31.4 51.13 Rs/Kg 31.0 27.2 29.23 M Kg 1.8 -5.5 -3.7 April to June Rs Cr 51.2 11.0 62.26 Rs/Kg 14.2 32.3 28.61

Source: www.indiatea.org 61 Table 5 Destination-wise Tea Exports From India Country January to March 2009 M Kg Russia Kazakistan TOTAL CIS UK Netherlands Germany Australia Ireland Poland USA UAE Iran Canada Iraq Saudi Arabia ARE Turkey Afghanistan 3.53 25.74 72.92 5.96 2.16 8.47 2.64 0.37 0.84 1.18 0.22 0.57 2.02 7.13 1.55 0.49 1.16 1.33 1.17 ValueRs Crs 61.65 32.48 98.16 27.38 8.98 16.17 32.38 5.54 7.63 38.05 93.25 21.42 9.05 10.47 15.23 11.49 Rs/Kg 103.44 150.37 115.89 103.71 242.70 192.50 274.41 251.82 133.86 188.37 130.79 138.19 184.69 90.26 114.51 98.21 0.75 3.35 0.03 1.73 6.50 23.91 0.25 10.68 86.67 71.37 83.33 61.73 M Kg 13.05 3.62 17.18 2.11 0.40 0.81 1.20 0.21 1.05 2.42 8.62 3.92 0.30 2008 ValueRs Crs 114.28 38.63 158.18 17.27 5.54 12.12 20.99 6.65 10.11 32.51 82.31 40.32 3.73 Rs/Kg 87.57 106.71 92.07 81.85 138.50 149.63 174.92 316.67 96.29 134.34 95.49 102.86 124.33 +/M Kg -7.09 -1.46 -8.71 0.53 -0.03 0.03 -0.02 0.01 -0.48 -0.40 -1.49 -2.37 0.19 1.16 0.58 -2.18 -0.03 1.80

Consumer Survey on Sustainable Tea & Coffee Consumption


Country January to March 2009 M Kg Kenya Japan Sri Lanka 62 Pakistan Others Total Exports Value (Rs Cr) North India South India 0.65 0.62 0.49 2.36 2.11 38.90 488 19.94 18.96 ValueRs Crs 4.09 17.64 6.46 16.48 22.55 488.16 495 295.87 192.23 125.49 -7 148.38 101.43 30.28 20.65 330.41 164.7 109.10 79.74 -10.34 -1.69 Rs/Kg 62.92 284.52 131.84 69.83 M Kg 0.87 0.43 1.74 1.83 1.99 50.94 2008 ValueRs Crs 5.07 9.63 14.05 11.51 23.78 495.11 97.19 Rs/Kg 58.32 223.95 80.75 62.90 +/M Kg -0.22 0.19 -1.25 0.53 0.12 -12.04

Source: www.indiatea.org

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Ian Phau, Denise Ong.(2007) An investigation of the effects of environmental claims in promotional messages for clothing brands Marketing Intelligence & Planning. Vol. 25, Iss. 7, pp 772-788 Jaffee, D. (2007). Brewing Justice:Fair Trade Coffee, Sustainability and Survival, University of California Press. Jean Nicolas Wintgens(2004) Coffee: Growing, Processing, Sustainable Environment VCH, Weinheim, Germany: Wiley,. Pp. 976. ISBN: 3 527 30731 Josephine Pickett-Baker, Ritsuko Ozaki. (2008) Pro-environmental products: marketing influence on consumer purchase decision, The Journal of Consumer Marketing, Vol. 25, Issue 5, p. 281-293 Lewis, Jessa and Runsten, David (2008) Is Fair Trade-Organic Coffee Sustainable in the Face of Migration? Evidence from a Oaxacan Community Globalizations; Jun, Vol. 5 Issue 2, p275-290, 16p. Linton, April (2008) A Niche for Sustainability? Fair Labor and Environmentally Sound Practices in the Specialty Coffee Industry Globalizations, Jun, Vol. 5 Issue 2, p231-245. Linton, April (2005) Partnering for sustainability: BusinessNGO alliances in the coffee industry, Development in Practice;, Vol. 15 Issue 3/4, p600-614. Louise R Morgan, Grete Birtwistle. (2009). An investigation of young fashion consumers disposal habits International Journal of Consumer Studies. Oxford:Vol. 33, Issue 2, pp190-198. Lucy Yates (2008) Sustainable consumption: the consumer perspective Consumer Policy Review, Vol. 18, Issue 4, pp 96-101 Luxner, Larry (2006) Ground in the Galpagos. Americas; Vol. 58 Issue 6, p5-6. Lyon, Sarah (2009) What Good Will Two More Trees Do? The Political Economy of Sustainable Coffee Certification, Local Livelihoods and Identities.Landscape Research; Apr, Vol. 34 Issue 2, p 223-240. M J Boomsma (2008) Sustainable Procurement from Developing Countries KIT Publishers. Maria Elena and Martinez-Torres (2006) Organic Coffee: Sustainable Development by Mayan Farmers Athens, Ohio: Ohio University Press, 2006, xiv + 176 pp Maria Elena Martinez-Torres. Organic Coffee: Sustainable Development by Mayan Farmers, Athens, Ohio: Ohio University Press, 2006, xiv + 176 pp. Mark Hidson. (2008) Sustainability through procurement Summit. Ottawa:May/Jun. Vol. 11, Iss. 3, p. 4-6. Marsh, A. (2007). Diversification by smallholder farmers: Vietnam Robusta Coffee Agricultural Management, Marketing, and Finance Working Document No. 19. FAO, United Nations, Rome. Martin, Jerry (2004) Earth-Friendly Food, Restaurants & Institutions; Vol. 114 Issue 11, p13-13. McCook, Stuart (2008), Coffee and Flowers: Recent Research on Commodity Chains, Neoliberalism, and Alternative Trade in Latin America Latin American Research Review; Vol. 43 Issue 3, p268-277. Mei-Fiang Chen. (2009) Attitude toward organic foods among Taiwanese as related to health consciousness, environmental attitudes, and the mediating effects of a healthy lifestyle, British Food Journal, Vol. 111,Issue 2, p. 165-178. Misra, Mano Susanta Mohapatra, and Narasimharao Kondamudi (2009) Waste coffee grounds offer new source of biodiesel fuel. Engineering & Technology for a Sustainable World; Mar, Vol. 16 Issue 2, p25-25. 65

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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. 66 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 Unilevers 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.

Bibliography
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 Tea Biotechnology Publication Details 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.

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Discipline Tea Quality Improvement Publication Details 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.

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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.

Bibliography
Discipline Plant Nutrient Dynamics Publication Details 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.

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Consumer Survey on Sustainable Tea & Coffee Consumption


Discipline Bio-management of Pests Publication Details 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

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Selvasundaram, R. Muraleedharan, N. and Sachin, P.J. Kairomones for trapping shot hole borer infesting tea. Poster presented at the international conference Area wide control of insect pests: integrating the sterile insect and related nuclear and other techniques sterile insect technique 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

Bibliography
Discipline Management of Pesticide Residues in Tea Publication Details 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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Discipline Medicinal Attributes of Tea... contd Publication Details

Bibliography

Das, A.S., Mukherjee, M and Mitra, C. 2004. Evidence of prospective 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.

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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] B(a)P 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.

Bibliography
Discipline Medicinal Attributes of Tea... contd Publication Details 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): 101 106. Bhattacharyya, A., Sa, G.., Das, T and Siddiqui, M. 2003 Black tea 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 hosts defense system; dual role of tea. In: Banerjee and Chaudhuri, T.C. (eds): Medicinal Properties of tea. Oxford & IBH, New Delhi (Ms 89 112). Shukla, Y and Tanya, P. 2002. Anticarcimogenic effect of black Tea on pulmonary tumors of Swiss Albino mice Cancer Letters, 176:37141.

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Discipline Medicinal Attributes of Tea... contd Publication Details 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)103 114. 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

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Krishnan, Rajesh and Maru, G.B. 2006. Isolation and analyses of polymeric polyphenols fractions from black tea, Food Chemistry 331 340. 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: 143 157. 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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