US tea is about to get a $5bn infusion, with the government providing an unprecedented lifeline for some of the world’s largest producers.
In a statement on Monday, the US Treasury Department said that it had provided $2.8bn in financing to the American company, Teavana, to finance the expansion of its teashop in Washington state, as well as in Oregon, California, Colorado and New Mexico.
Teavana has become one of the most popular teas in the world.
It has grown to become the fourth-largest tea producer in the United States, according to the World Tea Federation.
The company’s chief executive, Peter Ries, told Bloomberg that it was the biggest infusion of funds for a US company since the 2008 financial crisis.
According to Reuters, Teas United, a trade group for the global tea industry, said the infusion was a “significant boost” to the global market for tea.
In addition, Teawas Tea in Washington, which sells tea in the US to restaurants and supermarkets, said it was expecting $1.7bn in funding.
“The US government is the only global market that has a direct line to our customers,” Teaws CEO Jim Rifkin told Reuters.
“They know what we do and they understand that we’re an American company that grows the tea.”
“This is a very exciting time for us and our investors,” he added.
Teawas has already spent $1bn on expansion plans in the past, including the opening of a tea shop in Colorado.
The US$3bn infusion is part of the countrys $5.4bn bailout of the tea industry that will be completed by the end of January.
Teas United said Teavanas latest infusion would allow it to focus on growing its brands in the West.
Ahead of the infusion, the company announced it had acquired its remaining tea acreage from Teawashas.
It said that Teawashes future plans include expanding its tea production capacity, expanding its product range and creating new markets for Teavas products in Asia, Latin America and Europe.
“We are committed to growing our business, expanding our product portfolio and working to become a global leader in the tea sector,” Teavams chief executive Jim RIFKIN said.
“It’s exciting to have such an international and powerful partner, and we’re excited to help Teavans global expansion, as we see it as a critical component to our long-term success.”
Teavas tea is produced in the American state of Washington.
Teawashaws teapots are designed to produce tea that tastes like freshly brewed tea.
Teavaskas is the most expensive tea brand in the USA, with a premium price tag of more than $100,000 (£62,000).
Teawawas is a joint venture between Teavanda and the Washington-based Teavanna Corporation, which is owned by the US-based Anheuser-Busch InBev.