How sustainable supplier training is fast becoming a competitive advantage
Second only to water, tea is one of the most consumed beverages around the globe. Its popularity unites people the world over, as the German Tea & Herbal Infusions Association is keen to remind us as we once again celebrate International Tea Day on May 21. But if drinking tea unites the world, so too do sustainable supply chains. In an ideal world, tea should be sustainable from the cultivation of individual ingredients right to the consumer’s teacup.
In fact, tea drinkers, not least the younger generation, are increasingly making decisions based on both the traceability and sustainable extraction of raw materials in a way that conserves resources and is socially responsible.
Tea retailers and manufacturers who prioritized sustainability in their global supply chains at an early stage, working hard to train their suppliers on the ground where tea ingredients are grown and sourced, have since gained a major competitive advantage and are now reaping the rewards of their work. Located in Lower Franconia, Germany, Kräuter Mix GmbH is proud to be one such company. The organization, which specializes in dried spices, herbs and vegetables as well as plant-based raw materials for herbal and fruit teas and infusions, is already benefiting from having established reliable, long-term supplier relationships in the countries of origin for its ingredients. “Of course we could call up pretty much any supplier in Egypt and have a container of chamomile delivered. On paper, that works, but there’s too much room for error,” explains Ulrich Beuerle, who works in purchasing at the Abtswind-based company as a category manager for medicinal herbs and ingredients for herbal and fruit teas and infusions. Instead, Kräuter Mix takes a more thorough approach, including regular site visits to train and upskill growers and suppliers and ultimately achieve high-quality goods as well as security along the supply chain. “Clearly this doesn’t happen overnight,” added Beuerle, nevertheless sure that the results of forming reliable partnerships, most of which are now decades long, are worth it.
When Beuerle and his colleagues visit suppliers on site, sometimes joined by some of the team from sustainability management or quality assurance, they focus on the standard of the goods, procedures and processes in place. They also discuss new projects or suggestions for improvement with the suppliers. As a first port of call, these might include reducing foreign substances or ensuring natural products are packed and stored properly. “We go through the entire supply chain step by step on site in a very practical way,” explained the category manager.
During the supplier visits, Kräuter Mix’s purchasers scrutinise processes as well as products, in this case calendula and herbs from Egypt.
Hibiscus, a popular tea ingredient, comes from fields like this one in Nigeria.
Mutual reliability on an equal footing
Kräuter Mix’s primary suppliers of tea ingredients are based in Eastern Europe, China and Egypt. For example, chamomile, peppermint and lemongrass are sourced specifically from Egypt, while the German specialist in plant-based raw materials employs its own experienced local experts in China, one of the world’s top tea-producer countries, to source the very best natural tea ingredients like star anise or ginger. But each one of these primary suppliers shares one thing in common: a stable supplier base that has grown hand in hand with Kräuter Mix over the decades. The company’s long-standing suppliers understand that their investments and process optimizations will ultimately benefit both sides. After all, Kräuter Mix enjoys high quality, safe goods, while the suppliers receive fewer complaints, ongoing support, competitive prices and predictability thanks to their reliable customer in Abtswind. Beuerle further explains that many suppliers who started out with just basic equipment have gone on to become reliable partners. Some of these partners now work with small laboratories or quality assurance officers themselves or are involved in contract farming at an early stage, a process which involves training and upskilling their own farmers to become contract farmers.
With such strong and direct supplier relationships, Kräuter Mix is able to meet specific customer requirements, such as a wide range of cut sizes for the tea sector. But what about requirements like certified organic or sustainably certified goods? The company meets these through its EU organic certification in accordance with Regulation (EU) 2028/848 and NOP certification. “Through the National Organic Program (NOP), the US and EU now recognize each other’s organic standards as equivalent, which has allowed us to market organic products in the US,” explained Sophia Jakob from Kräuter Mix’s quality management team. And when it comes to sustainability, the family-owned business has met the requirements for the Rainforest Alliance seal as well as UTZ certification, which focuses on sustainable development at source, for a number of years now.
Ulrich Beuerle, category manager at Kräuter Mix, and members of his purchasing team regularly visit Egypt, where the company sources most of its chamomile.
Seal of approval for organic and sustainable products
Kräuter Mix, and more specifically its tea ingredients, is particularly well positioned in the organic segment: around half of its individual ingredients for tea are available in certified organic quality. What’s more, the company offers Rainforest Alliance (RA) certified products across popular items in the raw tea sector, such as hibiscus flowers, chamomile, ginger, rosehip and orange peel. Customers can rest assured that the relevant certification bodies check compliance with the respective standards on a regular basis. “RA farmers receive a premium on their sales price to ensure resource-conserving cultivation as well as fair working conditions and wages,” details Christine Schmalz, who is responsible for RA certification on the Kräuter Mix sustainability team. Furthermore, the sustainability certificates also benefit the people and village communities in the ingredients’ countries of origin in the form of investments. For example, around two years ago, Kräuter Mix funded a sustainability project that expanded the existing sanitary facilities for workers and the local area of a hibiscus supplier in Nigeria.
The construction of new sanitary facilities was part of a sustainability project as part of the Rainforest Alliance certification of Hibiskus from Nigeria.
Sustainability goals firmly in sight
Sustainability has long played a key role at Kräuter Mix, and the company takes a comprehensive approach to ensure its implementation. “Alongside environmental responsibility, we must also take social aspects into account,” emphasizes managing partner Bernhard Mix. The company also expects its suppliers to comply with these guidelines, which are laid down in its own supplier code of conduct. In fact, suppliers must agree to and sign this code to work with the company. The same holds true for the self-disclosure questionnaire on product quality and safety, which highlights the capabilities and processes of potential suppliers and is reviewed on a regular basis, including on site, should they partner with Kräuter Mix. All this with one goal in mind: to grow reliable partnerships for a secure supply chain.
