A Western Cape company, Carmién–Bergendal Rooibos Tea, has signed a Memorandum of Understanding (MoU) with the Chinese Importer, ChanX Group that will import and sell the South African Tea products and build distribution channels in China. The signing ceremony took place on the margins of the China International Import Expo (CIIE) currently taking place in Shanghai, China.
Carmién Tea is a producer, supplier, and exporter of Rooibos products, as well as private label packer to companies worldwide.
Speaking at the signing ceremony, the International Sales Manager of Carmién, Mr Charl Rudman said the journey of the deal started in 2023.
“The initial attempts to market Rooibos in China were difficult due to lack of awareness and high duties. Over 30% import duties were applicable at the time. The South African government, particularly the Department of Trade, Industry and Competition (the dtic) and other stakeholders worked to reduce duties to 7%, making re-entry into the market feasible,” said Rudman.
He revelead that despite initial disagreements on terms, the parties finally met and highlighted potential business opportunities that can benefit both.
“When the group mentioned the brand’s popularity in Japan, and the potential of opening new market possibilities in China, and after several emails and discussions, a decision was made to proceed with changes to the packaging, including Chinese translations. The first order was placed earlier in the year, and the rest is history,” he added.
Rudman said the story highlights the importance of multiple interactions to finalise a bankable business deal.
China is currently the 11th largest export market for Rooibos, accounting for only 3% of total production.
“There is optimism about the potential for China to move up the list and become one of the top export markets for Rooibos tea within the next few years. Japan is currently the number one export market for Rooibos tea, followed by Germany in second place. We as producers are just excited about the potential growth of the tea in the Chinese market and the potential to increase the market share,” he said.
The International Sales Manager of Carmién, Mr Charl Rudman together, with the Chief Executive Officer of ChanX Group, Mr Chen Xiaobin during the Memorandum of Understanding signing in Shanghai, China.
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