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World Cup helps tea makers

By Qiu Quanlin (China Daily)
Updated: 2006-07-04 08:29

Guangdong is the powerhouse for herbal tea products, with annual sales hitting 2 million tons.

It is estimated that there are about 1,000 herbal tea brands in Guangdong, of which about 500 are based in Guangzhou, the provincial capital. Herbal tea production is expected to reach 60 million tons by 2010.

After the national recognition, many herbal tea makers are expecting to increase their sales networks both inside and outside the Pearl River Delta.

Huang said his company plans to open 200 more outlets in Guangzhou this year.

The company, which was established in 1997, now boasts more than 800 outlets in the Pearl River Delta.

It is also seeking opportunities in North China and Southeast Asian countries.
"As more people become aware of herbal tea's benefits we think the markets will grow," Huang said.

Xu Xingquan, an official with the Xu Qi Xiu Herbal Tea Co Ltd, which is based in Foshan, said his firm would open more than 200 outlets in Guangzhou over the next two years.

Another producer, Jiang Sheng Tang, is planning 1,000 outlets in Guangdong Province this year.The company moved its headquarter from Foshan to Guangzhou last year in a bid to improve profits.

At present, the company has about 400 tea shops in Guangdong, of which 40 are in Guangzhou.

Sources with the company said that it plans to open chain stores in Shanghai, and Zhejiang and Hunan provinces.

Herbal tea makers are also being urged to pay more attention to quality.