Rise General Trading and Tenfu, the leading Chinese tea company, have formed a new partnership to expand into the regional tea market under the joint venture company Tea Trading International.

 

The new venture will be Rise General Trading’s first venture into the fast moving consumer goods (FMCG) industry, which will see them further diversifying their business interest, said a statement.

 

Tenfu, which has a leading tea sales network in China, is involved from start to finish in the entire production process of delivering quality teas to the mass market. 

 

From sourcing to packaging, to celebrating the Chinese tea drinking culture through retail stores, Tenfu is committed to upholding the tea drinking culture. 

 

It currently sells over 2,000 categories of tea sourced from selected tea producing regions in China, curated by its team of tea experts. Targeting the mid to high-end segment, the partnership with Rise marks its first foray into the regional market.

 

The Middle East and North African beverage industry offers considerable business opportunities and is predicted to rise 30 per cent over the next five years, driven by the continued growth in resident numbers and tourism, and along with it the F&B landscape, enabled by disposable income levels. 

 

In recent years Dubai has also established itself as a leading re-exporter of tea globally, with the efforts of the Dubai Tea Trading Center, established by Dubai Multi Commodities Centre (DMCC).

 

Ghassan Kassabji, chief executive officer, Rise, said: “We are confident that this JV is strategically positioned to maximise and seize these opportunities.  By leveraging the Tenfu knowledge and expertise in delivering quality tea to its customers in China, and our depth of knowledge of the region, this JV will launch multiple premium tea brands, suitable for the global market. This is the beginning of a long and fruitful relationship between Rise and Tenfu.”

 

Justin Lee, CEO, Tenfu, said: “Historically speaking, merchants have travelled along the Silk Road to trade all kinds of commodities.  We have listed successfully in Hong Kong and it seemed only a natural next step for Tenfu, as part of our growth plans, to explore opportunities in the Mena region. 

 

"Rise’s strong business acumen, local presence and commitment to collaboration, along with the world-class facilities offered by DMCC, are key push factors that make us confident that Tea Trading International will be a successful collaboration,” added Justin Lee, CEO of Tenfu.

 

According to Tea Trade International, plans are in place to rollout brands under the joint venture to the regional market in the coming months. - TradeArabia News Service