A Message from Ippodo’s President

Here in Kyoto, summer is at its peak, and every day feels hotter than the last. We hope this message reaches you feeling cool and comfortable this season.

Much has happened in the tea industry in recent months. We would like to take the opportunity to inform you of the current situation and our plans moving forward while continuing to focus on producing the teas that you love.

Background- The Increase in Matcha Demand

Over the past year, interest in matcha has increased dramatically, leading to a supply shortage across the Japanese tea industry. While we are deeply grateful to see such passion for matcha emerge, we are also saddened to see some instances of bulk purchasing matcha products by unauthorized resellers. Moving forward, we are committed to getting our matcha products to as many customers as possible, and we have put purchase limits in place across sales channels globally.

The Current State of the Japanese Tea Industry

Tea is a specialty agricultural product, meaning its harvest is heavily dependent on natural growing conditions each year. Annual production is limited, and significantly increasing supply isn't possible overnight. For example, after planting a new tea tree, it takes over 5 years for it to grow before you can enjoy tea from it.

Remarkably, the four main varieties of Japanese tea (matcha, gyokuro, sencha, and bancha) can all be produced from the same tea trees, just by changing the growing and processing techniques.

This year, due to the unprecedented demand for matcha, many tea farmers switched from producing other types of tea to producing matcha instead. Even with their efforts, the supply of matcha is still not enough to meet demand. When their harvests were sold this May at the annual Kyoto wholesale tea market, the average trading price was approximately 2.7 times the price of the previous year, setting a new record.

Meanwhile, the shift toward matcha production has led to a decrease in the supply of other types of tea. As a result, the trading price for all teas increased as well, to a staggering average of approximately 2.5 times the previous year.

Our Difficult Decision to Increase Prices

Given these circumstances, we are forced to implement price increases on teas across categories. The increases will begin in the coming weeks, so please look for the specific details in upcoming announcements.

At Ippodo, it is our top priority to maintain our high standards of quality while minimizing the burden on loyal customers. It is our mission to share with the world the beauty that can be found in every cup of tea, and each of us at Ippodo is committed to serving you with passion and dedication.

We deeply appreciate your understanding, and we hope we can ask for your continued support for years to come.

Sincerely,

Masakazu Watanabe

President, Ippodo Tea Co.