From the 1st August, we unfortunately have had to increase our prices for matcha.
The nearly decade in business, we've only had to increase our prices modestly twice. We had been warned by our suppliers about the looming price increases but we did not know the severity of the price increases. Though matcha had been quietly enjoyed for many years, it has recently boomed largely driven by social media and tourism.
Until a few weeks ago, we were told about the price increase from our Kyoto tea makers and it was much worse than we thought and it would take into effect quickly. Many late nights pursued after that to figure out what this is going to do and what were needing to do.
Below for your transparency is the report that was shared with us so you understand the situation.
With these facts, it is inevitable that the prices will be going up - double if not more.
Now with matcha being consumed as a caffeine choice instead of coffee, it will no doubt face the same situation as coffee - environmental factors, demand, increasing supply costs.
The things to consider is comparing quality. You may compare matcha and wonder what the quality is like. Our second harvest Premium Kyoto is a much higher quality second harvest compared to some on the current market which is reflected in the price. Quality is dictated by colour, taste and harvest.
Both are second harvest - our Premium Kyoto on the right, left is another brand.
We asked how long our suppliers thought this supply issue would last - they said at least 2 years. About 6% of all tea produced in Japan is tencha, the type of plant used to make matcha. Farmers are now trying to convert their farms into tencha, this takes up to 5 years from seed to first harvest. Tea bidding for first and second harvest was fierce, with prices our tea makers have never seen before. We can confidently say, the worlds two largest consumer countries - China and the USA have a HUGE thirst for matcha.
This hasn't only affected matcha - but Japanese makers of matcha tools. Suikaen, a Japanese Whisk maker, which we first stocked in 2021/2022 and visited last year stopped supplying due to overwhelming demand. We stocked a bamboo whisk holder made in Japan which was popular - our next wait is November and there are no guarantees (sold out in Feb),
Our price decision was not made lightly. In order to still be in business, we can't be selling it at cost (sorry guys!), so therefore we needed to update our pricing to be able to secure the supply. On our May shipment, our Mie tea makers threw on the increase out of the blue which threw our forecasting out. We have been absorbing the increase in price but we can no longer do it.
We're sorry to be the bearer of bad news, but the good news is quality and supply will be stable. And we'll be able to supply your favourite cafes so you can continue getting great matcha.
Honestly, we'd like to thank everyone who has brought from THEA and continued to support our business. If you've followed THEA since the beginning, it has been a labour of love to bring quality matcha to New Zealand. We hope to still continue bringing quality teas to New Zealand and beyond.
- May & Enna
Co-founders
