Streamlining Bulk Tea Distribution in North America

Bulk tea is shipped, efficiently, to US packing facilities from where FG distribution takes over

The cost of inland transport is expensive and limits competitiveness and reach .

FG production at origin allows brands to enter target markets anywhere in North America!

Ship to closest market port DCs. Affect national coverage through regional DCs

For existing packers with a view to growth this service is complimentary to existing in house FG capabilities.

We can replicate in house FGs seamlessly.

No need for capital outlay for capacity extension, until market viability is proven.

Example of savings

Commitment to stocks

  • By committing to stock contracts with various primary producers, Kost helps finance the industry and ensures that healthy stocks of raw material are available for their customers any time of the year.
  • As primary producers struggle with producing consistent cups, during irregular climactic conditions (only to increase with climate change), Kost uses this extensive stock to blend ( in or out of rotation) ensuring cup performance is the same, year round.
  • Without the insurance that on standard stocks provide, Buyers are forced to commit to teas very early, in order not to miss out on quantity and quality due to climactic conditions and/or competitor activity.

Importing for reexport

KOST is unique in that it has a licence to import teas from other origins for blending and reexport.

In recognition that all production areas produce some very small tea particulate matter, KOST buys and imports these teas, often from traditional high quality origins, to boost these producers efficiencies and to further de-risk customers from the vagaries of the Argentinean supply chain.

This capability not only sees KOST able to provide clients with more colour, body and flavour than primary producers during certain times of the year but also helps them to differentiate further.

Who should consider this?

Packers who want to extend their geography, competitively.

New players for a low cost entry into the category.

Businesses with ambition and competing priorities.

Example of savings

NJ based iced tea packer, has tea shipped from Buenos Aires @ $2200/44000lbs

Tea is packed and shipped to National chain to DC in Los Angeles = $5000

If direct shipped BA to Los Angeles $3400