• Save
Darjeeling tea- a study
Upcoming SlideShare
Loading in...5
×
 

Like this? Share it with your network

Share

Darjeeling tea- a study

on

  • 905 views

 

Statistics

Views

Total Views
905
Views on SlideShare
905
Embed Views
0

Actions

Likes
0
Downloads
0
Comments
0

0 Embeds 0

No embeds

Accessibility

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment
  • http://www.rediff.com/money/report/tea/20070717.htm1)No doubt, the Darjeeling Tea has its genesis from China. But the Chinese tea seeds-bred tea plants in Darjeeling have acquired unique traits which even the Chinese have failed to bestow upon their plants despite relentless research and efforts," says RannenDatta, a senior consultant to various Darjeeling Tea gardens and the erstwhile secretary of Darjeeling Planters' Association, which has now been rechristened as Darjeeling Tea Association. 2)But the grandeur of Darjeeling Tea could be in peril. The consumers have been growing sceptical about the authenticity of Darjeeling Tea. Shailesh Sharma, an organic farming veteran associated with the Swiss-based Institute for Marketecology, which has of late begun monitoring and fostering organic farming in Darjeeling Tea gardens, told Commodity Market that adulteration and blending have badly hit the coveted high price of genuine Darjeeling Tea. "This has marred the earnings of tea gardens. Subsequently, planters have resorted to massive use of chemicals, fertilisers and pesticides to jack up yield in order to compensate the plummeting prices." 

Darjeeling tea- a study Presentation Transcript

  • 1. DARJEELING TEA
  • 2. WHO AM I?
  • 3. AGENDA • Case Facts • About Darjeeling Tea • Export Figures ( Tea and Darjeeling tea) • Legal Framework of TRIPS • Issues and Infringement • Regulations by Tea Board • International Marketing of Darjeeling tea • Recommendations
  • 4. Case Facts • Aims issues related to use of geographical indicators and their protection under WTO • Highlights the dichotomy of the level of protections available for geographical indicators under Article 22 & 23 of the TRIPS Agreement • About 40 million kg. of Darjeeling tea is sold worldwide whereas its production is only about 10 million kg • Besides, the name Darjeeling had been used for a variety of products and services other than tea, such as perfumes, lingerie, cocoa, coffee, soft drink, telecommunications etc., it has raised serious marketing concerns
  • 5. Darjeeling Tea Luxurious Enigmatic Aromatic • First planted in the early 1800s, the incomparable quality of Darjeeling Teas is the result of its locational climate, soil conditions, altitude and meticulous processing • About 10 million kilograms are grown every year, spread over 17,500 hectares of land • The tea has its own special aroma, that rare fragrance that fills the senses • Rich in anti-oxidants, this amazing tea strengthens your immune system. It courses through your veins and helps you unwind
  • 6. Darjeeling Tea • Definition (Formulated by Tea Board of India) o is cultivated, grown or produced in the 87 tea gardens in the defined geographic areas and which have been registered with the Tea Board o has been cultivated, grown or produced in one of the said 87 tea gardens o has been processed and manufactured in a factory located in the defined geographic area o when tested by expert tea tasters, is determined to have the distinctive and naturally occurring organoleptic characteristics of taste, aroma and mouth feel, typical of tea cultivated, grown and produced in the region of Darjeeling, India • Only 100% Darjeeling Tea is entitled to carry the DARJEELING logo
  • 7. Darjeeling Tea Flush Time Description Spring flush Late February- Mid April Springtime tea. The young leaves yield a light green tea with a liquor that is light, clear, bright and imparts a pleasant brick flavor Summer flush May-June Famed for its prominent quantity. The leaf has a purplish bloom. The liquor is bright, the taste full and round with a fruity note Monsoon flush July-September The nature of the liquor changes becoming stronger, retaining brightness and character Autumn flush October-November Autumn-harvested teas, large leaves that give a round taste and coppery liquor
  • 8. WORLD PRODUCTION - TEA
  • 9. WORLD EXPORT - TEA
  • 10. FARMS- EXPORTS
  • 11. EXPORTER’s INPUTS • Mr. Naveen Kapoor – in export business from past 15 years • Exports only speciality teas which are produced in small quantities – max 500kg/ year e.g., white tea (silver buds- Rs 20000-30000/ kg) • Demand of exports have shifted to gardens directly • License for export – used to be easier to get one earlier now take years and granted only if you have a background and name in tea business • Purchases from : Farms, stockist and brokers (auctions) • Vacuum packaging • Major export areas o Expensive Teas: Japan, UK, USA, Germany and Netherlands o Relatively Cheaper Teas: Middle East- Bahrain, UAE, Dubai, South Africa • Mode of transportation: Fedex, Bluedart • Terms of Payment: Advance payment • Mode of Promotion: 5-star and 7-star hotels
  • 12. Legal Framework of TRIPS • The Agreement on Trade-Related Aspects of Intellectual Property (TRIPS Agreement),3 the first multilateral instrument that deals with GIs,4 promulgates minimum standards of protection that WTO Members must provide for Gis • Article 22 of the TRIPS Agreement requires that all Members make available the legal means to prevent the use of a GI that (1) indicates or suggests that a good • originates in a geographical area other than the true place of origin in a manner that misleads the public as to the geographical origin; or (2) constitutes an act of unfair competition • GIs on two and only two categories of goods—wines and spirits—Article 23 of TRIPS Agreement provides additional protections
  • 13. Legal Framework of TRIPS • Level of Protection Under Article 22, the holder of an infringed GI only has access to legal recourse if consumers have been misled by the allegedly infringing label or if its sale constituted an act of unfair competition,6 whereas Article 23 plainly prohibits any use of a GI on wines or spirits that do not originate in the designated geographical region—whether or not the true origin is identified • Homonymous Indications Article 23 also protects the co-existence of homonymous GIs for wines. Homonymous indications are geographical names which are spelled and pronounced alike, but which designate the geographical origin of products stemming from different countries
  • 14. Issues and Infringement • Less than 10 million kg of tea is being churned out by the 87 gardens in Darjeeling annually. But some 40 million kg of 'Darjeeling Tea' is being traded globally every year • Adulteration and blending have badly hit the coveted high price of genuine Darjeeling Tea • Earnings of tea gardens decreasing, subsequently, planters have resorted to massive use of chemicals, fertilizers and pesticides to jack up yield in order to compensate the plummeting prices • Legal and registration expenses, costs of hiring an international watch agency and fighting infringements in overseas jurisdictions • Tea Board of India has spent approximately US$200, 000 for these purposes in 4 years • This amount does not include administrative expenses including the relevant personnel working for the Tea Board, the cost of setting up monitoring mechanisms, software development costs and so forth
  • 15. Issues and Infringement • Japan- Unauthorized use and registration of Darjeeling Tea and logo in Japan • France- While the Indian system protects French GIs, France on the other hand does not extend similar or reciprocal protection to Indian Gis • French law does not permit any opposition to an application for a trademark similar or identical to a GI if the goods covered are different from those represented by the GI • Darjeeling has been misappropriated as a trade mark in respect of several goods in class 25, namely, clothing, shoes and headgear • Tea Board opposed the application against the advertised marks for Darjeeling in classes 5, 12 and 28 by Dor François Marie in France. The French Examiner rejected the Tea Board‘s opposition and held that the respective goods did not o have the same nature, function and intended use o share the same distribution circuits
  • 16. Issues and Infringement • Russia- Tea Board filed an application for unauthorized use by a company of the word ‗Darjeeling‘ • This application was objected to on the ground of conflict with an earlier registration of the identical word by a company named ‗Akorus‘ • The Russian Patent Office overruled the objection and accepted the application of Tea Board of India for the word ‗Darjeeling‘ • United States-The Tea Board is opposing an application filed by its licensee in United States to register ‗Darjeeling nouveau‘ (‗nouveau‘ is the French for ‗new‘) relating to diverse goods and service such as clothing, lingerie, Internet services, coffee, cocoa and so on in respect of first flush Darjeeling tea • The registration application is under consideration even though ‗Darjeeling‘ is already registered under US CTM law
  • 17. Issues and Infringement • Based on feedback received from the World Wide Watch agency CompuMark which was appointed in 1988 to monitor conflicting marks globally and in the last couple of years, several instances of misuse and attempted registrations have been found and challenged by the Tea Board by way of o legal notices (8) o court actions (2) o oppositions/invalidation/cancellation actions (22) o domain name cancellations (2) against third party misuse of Darjeeling o These actions covered countries like Bahrain, Belarus, Bangladesh, Canada, Estonia, France, Germany, Israel, Japan, Kuwait, Latvia, Lebanon, Lithuania, Norway, Oman, Russia, Sri Lanka, Taiwan, UK and USA • In some countries like France, Germany, USA more than one action is pending • In India, over 20 legal notices have been served and 15 oppositions have been filed
  • 18. Regulations by Tea Board • All teas produced in the tea growing areas of India, including Darjeeling, are administered by the Tea Board, India under the Tea Act, 1953 • Tea Board has had sole control over the growing and exporting of Darjeeling Tea • Compulsory for all the dealers in Darjeeling tea to enter into a licence agreement with the Tea Board of India • Licensees must furnish information relating to the production and manufacture of Darjeeling tea and its sale, through auction or otherwise • Certificates of origin are issued for export consignments under the Tea (Marketing and Distribution Control) Order, 2000, the Tea Act, 1953
  • 19. • CTM Registration o registered the ‗Darjeeling logo‘ and also the word ‗Darjeeling‘ as certification trade marks (CTMs) under the (Indian) Trade and Merchandise Marks Act, 1958 (now the Trade Marks Act, 1999) • GI registration o Registration of the words ‗Darjeeling‘ and ‗Darjeeling logo‘ under the Geographical Indications of Goods (Registration and Protection) Act, 1999 • The Copyright Act, 1957 o The DARJEELING logo is copyright protected and registered as an artistic work with the Copyright Office • Worldwide Watch Agency CompuMark appointed to monitor conflicting marks Regulations by Tea Board
  • 20. Regulations by Tea Board • TIMELINE 
  • 21. Successful Enforcements • Tea Board has fought more than 15 cases against infringement and misuse of Darjeeling • Republic of Tea , USA (2000 – 2006) o Tea Board was successful in seeking rejection of trademark application for DARJEELING NOUVEAU in the name of Republic of Tea (―ROT‖) on the basis of its geographical certification marks for DARJEELING word and logo o The opposition had been filed by the Tea Board before the Trademark Trial and Appeal Board (TTAB) which has not only upheld Tea Board‘s opposition but also denied ROT‘s counterclaim for cancellation of the DARJEELING certification mark on grounds of generic • Dusong (Darjeeling with kettle device for stationery) France o In its decision, the Court of Appeal, Paris held that Mr. Dusong‘s mark impairs the geographical indication DARJEELING and is prejudicial to the Tea Board‘s interests in the same o Accordingly the impugned mark was nullified. Mr. Dusong has been restrained from using the same in any connection whatsoever
  • 22. Tea Board of India Promotional Activities • Generic promotion through Tea Councils to increase overall consumption of tea • Promotional programmes to enhance demand for Indian tea and increase market share. Activities include promotional support, participation in Fairs and Exhibitions, arranging Buyer-seller Meets and visits by trade delegations, etc. • Market development activities include market surveys, market analysis and tracking of consumer behaviour. This also includes making all relevant information available to exporters/importers • In order to enhance the equity of Indian Tea and its various sub-brands, efforts, are on to register the Board’s logos in various markets as well as to popularise the usage of these logos • Organizing seminars on IPRS and in particular Gis • Issuing advertisements in the national and international media promoting Darjeeling Promotional Schemes • Board‘s various promotional schemes under the Market Promotion Scheme are aimed at increasing India’s market share in the foreign market and maintaining it on a sustained basis as well as to encourage exporters to try out newer markets • Scheme for Assisting Tea Exporters towards Meeting Additional Transport & Handling charges being incurred for teas exported through ICD, Amingaon • Scheme for Participation in Fairs and Exhibitions with Tea Board: Each participating exporter is to be provided a minimum of 6 sq. mtrs. exclusive space • Promotional Support to Tea Association: Space Rent, Air Travel, Media/Advertising, Interpreter etc. • Promotion Scheme for packaged teas of Indian origin (Brand Support)
  • 23. Tea Associations Darjeeling Tea Association (DTA) • Darjeeling Tea Association (DTA), an umbrella organization of the 87 tea gardens of the Hills • The tea garden management on 23rd September 2013, decided to give 20% bonus to workers for the current fiscal year bringing joy to the over 55,000 labourers of the Hills tea industry DTRMA & NITM • Darjeeling Tea Research and Management Association (DTRMA) was established in the year 1994 at Shivmandir, 7 Km away from Siliguri, W.B., and is dedicated to Tea Industry to promote excellence • NITM was established in the same year under the aegis of DTRMA to generate a pool of trained manpower who could effectively run a Tea Industry • Post Graduate Diploma in Tea (PGDT) &Certificate Course on Tea Tasting (CCTT) Bombay Tea Traders Association • The Bombay Tea Traders Association came into existence in 1968 • Its initial membership was 74 members and today its strength is around 150 members, which consists of WHOLESALERS, RETAILERS, CHAIN SHOP OWNERS, PRODUCERS and EXPORTERS, mainly dealing in DRY TEA
  • 24. Darjeeling Tea Boutiques, Tea Tourism & Expo Darjeeling Tea Boutiques • The Darjeeling Tea Association (DTA) has planned to set up standalone Darjeeling tea boutiques across the country • The association has chalked out plans for 20 such exclusive Darjeeling tea boutiques across the country to promote this niche product in the domestic market • These 20 boutiques will come up in both tier I as well as tier II cities • Along with Darjeeling tea, these boutiques will also serve snacks like cafeterias • Each boutique will entail an investment between Rs 50 lakh to Rs 1 crore depending on the nature of the city, he added • It is envisaged that these boutiques will come up in association with the Union commerce ministry Darjeeling Tea Garden Tours • Tea tourism is catching up big time in this part of the country • Several tea estates in Darjeeling offer tea tourism which essentially means experiencing the garden life while enjoying luxury amenities and comfort • Tea garden tour or tea tourism is about staying in the tea garden (many estates offer the original but upgraded planters' bungalows with modern amenities), watching the garden workers pluck tea, enjoying the serene garden atmosphere, learning about the tea manufacturing process in the tea factory, experiencing the village life and culture of the workers, hiking the nature trails, and indulging into many other nature activities The World Tea & Coffee Expo 2013 • The World Tea & Coffee Expo 2013, was held at Mumbai, India from 15th – 17th Feb 2013 with over a 100 exhibitors from 8 countries and was attended by over 10,000 trade buyers and general visitors • It received very good response from Exhibitors and had a judicious mix of Indian & International Exhibitors • Leading Trade Bodies like Tea Board of India. (Govt of India), Federation of Indian Tea Traders Association (FAITTA), Bombay Tea Traders Association (BTTA), India-China Chamber of Commerce & Industry, Small and Medium Business Development Chamber of India, Confederation of Indian Small Tea Growers Assoc (CISTA) and Darjeeling Tea Association support this unique trade event
  • 25. FDI: Darjeeling Tea Industry • 6th May 2011 saw good news for the foreign investors who want to venture into the Darjeeling tea Industry particularly in India • An approval of two foreign proposals has been the key to the opening of the door for the other investors • The Union Finance Ministry had issued a statement that the purpose of such approval is for ―induction of foreign equity and foreign collaborator to carry out the business of production, distribution and export of tea‖ • This in a way is a good thing for the Darjeeling tea industry to prosper since even before such approval, foreign investors has not showed any interest on engaging to doing business on the tea industry thinking that the return of their investment on to the country of origin is impossible because in 1974 the Foreign Exchange Regulation Act (FERA), Conservation of Foreign Exchange and Prevention of Smuggling Activities Act were passed which prevented the remittance of the profits to be sent out of country
  • 26. Recommendations • Push for Article 23 to be expanded to include all GIs • Educate tea exporters on infringement and create awareness of brand ‗Darjeeling‘ • Promotion on social media with regular updates on Facebook and Twitter • Extend Certificate of origin for Darjeeling tea abroad • Upgradation of information technology infrastructure so that customs can accept notices from rights holder electronically
  • 27. THANK YOU