As tea grows in popularity in the United States, channels of distribution of this fine product are expanding and becoming more efficient. A major part of the entire distribution channel is the tea wholesaler that provides value added products and services to the tea offering.

The Tea Distribution Channel

Like most food products, tea is distributed through three major channels:

• Retail

• Wholesale

• Distributors

Retail

Retail channels deliver tea directly to the consumer for consumption without involvement of a third party, Retail channels generally involve gourmet markets, high end grocery stores, health food stores and other outlets where the consumer can visit and make an informed tea selection.

Retail also includes mail order and the internet equivalent e-commerce shopping. E commerce has grown dramatically as web sites become more informative and selections of quality teas are expanded. E-commerce allows the convenience of shopping at home and has become a highly efficient way to purchase quality tea products.

Wholesale

The wholesale channel involves entities that purchase for resale. During this process the wholesaler adds value in a variety of ways. This value is critical for the tea enjoyment of the ultimate consumer and takes many forms. For example:

• Creation of a pleasant environment that creates strong feelings of well being

• Addition of food items like sandwiches, deserts, fruits etc that complement the tea experience

• High end fine dining that is complemented by a cup of quality tea

• Resorts that offer iced tea as a refreshing beverage in idyllic settings