Tea trouble: Red Sea attacks impede Tetley supplies amid shipping disruptions

16 Feb 2024 --- British tea brand Tetley is keeping a close watch on its tea supplies as UK imports of black tea reach a “critical period” owing to trade route disruptions caused by the ongoing Red Sea attacks by Houthi rebels. This comes after British retail giant Sainsbury’s recently warned UK shoppers that there is a “nationwide” problem with black tea supplies.

“We are experiencing supply issues affecting the nationwide supply of black tea. We apologize for any inconvenience and hope to be back in full supply soon,” says a sign at one UK store.

The warnings were placed for black tea, with non-black teas such as Twining’s Lemon Green Tea and Peppermint not currently impacted.

But Tetley — owned by Tata Consumer Products — reassures consumers that it is taking measures to ensure supplies remain on market shelves.

“We are closely monitoring the situation in the Red Sea and the Suez Canal and reviewing our supply chain on a day-to-day basis to identify areas of risk and potential disruption,” a Tata Consumer Products spokeswoman tells Food Ingredients First.

The company has been implementing mitigation measures since December to ensure product flow, prioritizing maintaining its consistently high service levels.

Houthi rebel attacks on shipping vessels are raising the costs of F&B supplies globally (Image credit: Houthi Military Media).“Based on ordered and forecasted demand, we believe we can continue to deliver this, but acknowledge this is a critical period which requires our constant attention,” she adds.

A temporary glitch?
British Retail Consortium (BRC), the trade association for retail businesses in the UK deems the situation a short-term issue.

“There is temporary disruption to some black tea lines, but the impact on consumers will be minimal as retailers are not expecting significant challenges,” Andrew Opie, director of Food & Sustainability at the BRC tells us.

Britain is the world’s fifth largest tea importer and procures more than half of its imported tea from Kenya and India, making it reliant on the Red Sea route.

 Additionally, Brits drink over 100 million cups of tea a day, outranking coffee, which is also a consumer favorite in other parts of the world, as per the United Kingdom Tea & Infusions Association (UKTIA).

Meanwhile, the UKTIA has downplayed the Red Sea attacks’ impact on tea supplies. Sharon Hall, chief executive at the UKTIA, says the organization’s members were reporting “good stocks” of tea, and tea lovers need not be alarmed by news of potential shortage.

Following Sainsbury’s supply shortage warning, there have been reports of British consumers hoarding tea off the market shelves. However, Tetley says it has enough stock on the shelf.

Brits consume over 100 million cups of tea a day, says the UKTIA.“The mitigation we’ve had in place for some months now means we’ve got tea on the ground and on the shelves and orders are being fulfilled,” the Tetley spokeswoman tells us.

Ongoing disruption
Over the past two months, other essential global commodities, including grain supplies, have been under fire due to Houthi attacks on shipping vessels in the Red Sea. This is forcing the largest cargo companies to refrain from transporting goods through waterways leading to the Suez Canal, by which at least 15% of global goods are transported annually.

This is impacting the freight shipments that travel from China, India, Sri Lanka and Kenya, which produce about three-quarters of tea globally. 

The Indian tea market, projected to generate a revenue of US$14.4 billion in 2024, is also experiencing supply disruptions. 

In December, Dorje Teas in the Indian town of Darjeeling reported obstructions in tea shipments. The company experienced delays in picking up US and Europe-bound stocks from the Mumbai port.

Meanwhile, China leads the global tea market with a revenue of US$51,940 million in 2024. Due to the country’s perceived immunity from Houthi attacks, transit through the Red Sea has increased, with Chinese-linked container ships making up nearly 28% of Red Sea transits last month.

By Insha Naureen