English Tea Shop has acquired Joe’s Tea Company as speciality tea sector ‘booms’
The deal will see Joe Kinch remain at the helm of his eponymous tea brand, with both parties now eyeing "opportunities for long-term growth"
Specialty tea company English Tea Shop has acquired organic tea brand Joe's Tea Company in a collective bid to strengthen their market share and capitalise on the ‘booming' speciality tea sector.
Both businesses already had a working relationship, which has spanned the previous eight years.
Since foundation in 2012, Joe’s Tea Company has sourced its premium organic Sri Lankan tea from English Tea Shop’s parent company Amazon Trading Ltd.
The deal will see Joe Kinch remain at the helm of his eponymous tea brand, with both parties now eyeing “strong competitive advantage opportunities for long-term growth”
Launched in 2010 by Suranga Herath, English Tea Shop currently sells its 130 variety of teas across 50 countries worldwide and works only with fair trade farmers and suppliers in Sri Lanka.
East London-based Joe's Tea Company was founded in 2012 by Kinch and currently counts M&S, Selfridges, Gordon Ramsay’s and The Breakfast Club among is clients.
With UK organic tea sales increasing by 11.8% to hit £28m last year alone, the increased demand for speciality tea is clear. An ever growing market, global sales are expected to hit $21.33bn by 2024 – with Mintel reports showing that those between the ages of 16 and 34 particularly enjoy fruit flavoured tea as appose to the traditional form.
In contrast, just 1% of all English tea products released in 2016 claimed they used seasonal flavours – suggesting this a possible area of disruption.
“We’ve always enjoyed a fantastic relationship with English Tea Shop and in our view, there’s no better business to work with. The new arrangement will allow us to consolidate our core business, but also to look at new options for sustainable growth. Joe’s Tea Company will continue to operate on its own terms, and offer the same – if not better – amazing quality taste and experience.”
“We’re delighted to have further strengthened our relationship with Joe and his brilliant company. The organic speciality tea market is getting a lot of attention at the moment – and rightly so – and we, alongside Joe, are excited about what the future holds.”
To read more on the business opportunities in the speciality tea market, click here.