South African Rooibos tea gains foothold in China through new partnership
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.
Image: DTIC
Western Cape Rooibos producer Carmién–Bergendal Rooibos Tea has signed a Memorandum of Understanding with Chinese importer ChanX Group to distribute South African Rooibos tea in China.
The agreement was signed during the China International Import Expo in Shanghai. It aims to expand the presence of South African Rooibos products in the Chinese market following a reduction in import duties from more than 30% to 7%.
China is currently the 11th-largest export market for Rooibos, accounting for about 3% of South Africa’s total production. Japan remains the leading export destination, followed by Germany.
Speaking at the signing ceremony, the International Sales Manager of Carmién, Charl Rudman, said the journey of the deal started in 2023.
“The initial attempts to market Rooibos in China were difficult due to a 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,” Rudman said.
Rudman added that after several rounds of discussions, both parties agreed to adjust packaging to include Chinese translations to better suit the local market. He said the first order was placed earlier this year, signalling the start of renewed commercial activity between the two companies.
“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.
"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,”
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