
Vancouver, B.C. based Tealeaves began as a small tea packer and retail shop in 1994. While many tea brands have grown retail or moved into mass–market sales over the last decade and a half, Tealeaves took a different route: tailoring its blends and products specifically for the luxury hotel and restaurant market.
Today, the company’s list of clients is packed with sterling hospitality brands, including Four Seasons, St. Regis, Mandarin Oriental and Grand Hyatt. The partnerships allow Tealeaves to put its product in front of quality–focused consumers, often in the comfort of their own $400–a–night hotel rooms — and company reps say many of those influential consumers have become regular Tealeaves customers.
Q: Did you aim to enter the hotel/restaurant segment when you
first started the company?
Sutherland: No. We were convinced we would have dozens of tearooms throughout North America within a few years. But instead, fate intervened. Ruy Paes–Braga [of Four Seasons] discovered, taught, mentored and encouraged us to showcase our teablending
skills in the hospitality space. I still remember the first
time we tasted our teas with chefs and how they were so excited
to taste very different tea palate profiles.
Chan: Paes–Braga is known as the godfather of Four Seasons.
He was the first general manager of the first Four Seasons and
trained something like half of all the other GMs across the world.
He wandered into our tearoom one day and liked our tea recipes.
He encouraged us to get into the wholesale business — starting
with his hotel in Vancouver. He basically taught us the business,
establishing the standards we still follow today. We owe a lot to
Four Seasons for giving us our start.
Q: What did you learn from him that’s been so vital to working
with Four Seasons and other luxury brands?
Sutherland: In addition to making the best teas, we learned our
job requires us to have impeccable supply–chain logistics, quality
assurance and quality–control standards. Making world–class tea
is only one aspect.
Chan: At Four Seasons, you’ll never hear the door slam one room over and you’ll never hear the toilet run, and that’s because everyone in the company is so diligent about quality control.
Paes–Braga taught us to look at the details no one else looks at.
Supply chain logistics are essential. We’re obsessed with them. At
the end of the day, if the guy who’s putting the product into the shipping box is kind of careless, that’s going to screw the whole system up. And if something does go wrong, how fast is the error fixed?
That’s key to quality.
Q: Your products are
available on your web
site and then through
your other luxury partners.
Would it ever
be possible for you to
expand into something
like grocery?
Chan: It’s hard because
hotels can’t hide who
their supplier is anymore.
One well–regarded
company’s VP of food
and beverage told me:
"Look, my guests walk
into our restaurant,
and they pay a lot of
money. I don’t want
them to blog that I’m
serving a tea they can
get at the corner grocer
for $0.10 a bag." l think now a lot of our clients
are worried about
brand association.
Sutherland: End users
can Google a brand on
their iPhone and immediately
understand
(and calculate) what
that serving of tea cost
the hotel, restaurant
or cafe. Tea is very visible
in a hospitality setting —
much more so
than the brand of vinegar
used in a salad.
Q: Are at–the–table Web
searches really that big
of a deal?
Chan: It’s changing the
nature of the high–end
market. The people
everyone wants to go
after are those who are
40 and under — they are
the emerging consumers
of luxury. They definitely
feel like it’s OK
to sit in a restaurant
and Google everything.
They’re much more
discerning than the
previous generation,
much more knowledgeable
because of smartphones
and mobile
Web. And they’re the
ones who have the
expense accounts and
stay in the nice hotels.
Q: Your tea is available
to hotel guests in
their rooms in bag and
sachet form. How do
you ensure the product
is going to be produced
well in that very nontraditional
tea setting?
Chan: The hot water
situation in a lot of
hotels is actually
pretty good because
we advise them to have
electric kettles. They
have automatic shutoff
switches, which is
much more important
than people realize. A
common error in tea
infusion is the overboiling
of water, which
becomes flat (meaning
lower dissolved oxygen)
and the subtleties
of the tea are lost. But
even if the water temperature
is not optimal, we can compensate by altering the blending composition. We basically try to bulletproof the product using different kinds of tea,
whether it’s in a sachet or whole leaves.
Q: Do you actively go after new hotel accounts? What’s your
strategy?
Sutherland: We do see significant referrals from our hotel clients, but we feel that the tea world is still very small (especially
compared to the brand power of coffee companies), so the vast
majority of our customers – whether hotels or end–consumers — find
us by word–of–mouth. Many chefs have remarked that we are
the "secret ingredient in the kitchen." Overall, we focus on our job,
which is to make the best tea and offer all the logistics support
that is required of an outstanding vendor. Our clients come to
us looking for the best and we make sure we deliver exactly what
they want, when they want it.
Q: What have you learned from working with so many world–class
chefs?
Chan: A lot of them had a lot to do with how we built product. We
are lucky to be interacting with highly palate–educated culinary
professionals who are not in the tea world, which is great because
they’re going to give us an objective opinion. Some teas have been
made the same way for 50 or 100 years because that’s what the
garden workflow has been for decades. But the truth is some of
these teas just aren’t relevant anymore. A great example is gunpowder tea. We’re probably the only tea company in the world
that doesn’t use gunpowder at all. It’s popular because it’s really
cheap; you can buy it at auction or direct from a garden for way
less than other unfermented teas, but it’s oily, tannic, and it’s not
vegetal or fresh. We found that when we put a collection of green
teas including a gunpowder in front of an expert taster like a chef
or sommelier, that person will always taste that gunpowder and
say, "Gross, what is that? Get it out of here."
Q: What’s the most important thing to keep in mind when
approaching high–end restaurants and hotels?
Sutherland: The key point here is quality. It’s not enough to just
be in front of luxury–focused consumers; you need to impress the
aficionado and show him or her that this is the very best cup of
tea or herbal they have ever savored. That comes from years of
hard work and dedication. You can’t just slap a label on a tea bag
and be "luxury" or "high quality."
Chan: Picture (celebrity chef) Gordon Ramsay. That’s the guy
who is your client. Yeah, you have to be a little crazy to sell to
him, but if you want to be the best, you've got to be able to sell
to him and he’s got to be happy with what he gets. In the end, it’s
probably easier to sell to McDonald’s or mass market. They want
consistency and won’t scream at you every time something really
small goes wrong.