CANADA
Steeped Tea is a Canadian MLM (multi-level marketing) firm selling wellness-focused tea and related accessories through 10,000 “consultants.” It has enjoyed rapid growth and won many awards in Canada. Sales are around $16 million. Now expanding in the US it is being compared, favorably, to Avon and Pampered Chef. The c.e.o. describes the firm as a tea party company, not a tea company.
Is this a potential distribution channel for selling quality tea or an unsustainable “pyramid” model? The question is an open one and routinely asked and answered in articles and reviews. There a uniform agreement that it is a solid, well-managed firm, with high business ethics and a sound strategy and impressive revenue growth. The consultants do not pay upfront fees or get rewarded by signing up more new ones.
The main reported strengths of Steeped Tea are:
• It builds on the social nature of tea gatherings, with women the primary market.
• It has a strong and well-priced product line of a hundred whole leaf teas and accessories.
• Its track record is strong: over 10 years of rapid growth and sustained financial performance with no debt.
Weaknesses mentioned in most reviews are:
• There is a lack of training and marketing expertise among the consultants, many of whom will be able to tap their own social contacts but face challenges in expanding beyond them.
• While commissions are high, the unit sales prices may not support the time commitment for many consultants.
• Steeped Tea’s priority in supporting its consultants has led to a policy of making them the customer ordering vehicle, with no consumer e-commerce access.