How Do We Price Our Teas?

As you may have read in this post, on average in the UK, the big supermarkets and tea brands keep around 67% of the retail price of the pack of black tea, and only 4% goes to the tea workers themselves.

As Darvaza Teas, we want to turn this around. We refuse to compromise, on anything at all: We want good tea, and we want that the people who made it possible receive their fair share.

To achieve our goal, we took a hard look at what it takes, and how much it costs, to bring you the high quality teas that India has to offer:

  • We do not buy our teas in auctions. In fact, we do not use intermediaries at all. We deal with the producers directly and purchase their own production. No commission!
  • We negotiate with the tea gardens to ensure that their and our business are on equal footing: we both aim to see each other thrive. So yes, that means that we probably pay more than the norm for our teas.
  • We look to reduce every other cost involved, without ever sacrificing our philosophy of quality and sustainability. For example, we will not open a brick & mortar shop.

In the end, how do we fare? We can show you what you don’t usually see, the “behind-the-scene” of the tea industry:

Darvaza Teas | Price structure pie chart

  • 35% of our retail price goes back to the tea garden;
  • 12% goes into importing tea: that corresponds to the shipment of tea from India all the way to our UK facility and that includes the taxes levied on herbal tea;
  • 13% goes into the packaging that you receive. Packaging can be as simple or as complicated as we make it. You can read more about our packaging choices here;
  • 27% goes into running Darvaza Teas: these are our costs, which cover all the essential functions of the company and the salaries;
  • Finally, 13% is our profit. In other words, this is our investment into the future of Darvaza Teas, so that we can keep searching for more great teas and other novelties.

Too many numbers? The two key ideas are:

  • The big players in the tea industry in the UK takes around 2/3 of the retail price and send back a little over 5% to the producers
  • Darvaza Teas takes a little over 1/3 of the retail price and we send back around 35% to the tea gardens

Darvaza Teas was born out of the conviction that with you, we could all play a game where everyone wins. We are proud to make it work.

Join us. Let’s drink tea better.

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