The Profit in Pu'er Tea

DELICATE WHITE TEAS AND COMPLEX OOLONGS ARE CAPTIVATING TEA LOVERS WORLD WIDE, BUT SOPHISTICATED CONNOISSEURS AND SAVVY INVESTORS KNOW THAT THE GREATEST RETURNS ARE FROM PU’ER TEA.

Pu’er teas are a unique style of tea that improves with age.  Private collectors and merchants invest in high quality Pu’er to reap the financial returns that come with the advancements in flavor and aroma over time.  During the past twenty years, returns from particular Pu’er investments have been outpacing most equity and real estate indexes.

The famous Red Chop tea disk produced in the early 1950’s currently demands over CAD$6,000 per piece.  In the last eighteen years it has gained over 12,000% in value from its 1988 price of $50.

Authentic Red Chop tea disks are difficult to come across, but similar financial gains are not as rare.  The widely sought after 1988 production of “7542 Green Pu’er” has appreciated over 4,000% since its introduction in 1993.  As the worldwide market for Pu’er tea expands, and the understanding about tea quality and aging increases, premium Pu’er investments can expect even faster and greater returns.

The good news for the consumer is that the overall quality of Pu’er is widely improving as producers compete to distinguish their teas. The liberation of China’s economic environment in the last twenty years has allowed tea farmers to profit from their efforts.  The profitable market has provided the needed demand and resources for tea estates to create quality not seen since pre-war China.

On the other hand, China’s domestic demand for Pu’er has never been so hot--which makes it difficult to acquire a share of the limited artisan productions.  Tea aficionados are now paying over $2,000 for new teas and over $13,000 for antique teas.  A recent charity auction in Beijing witnessed the transaction of a seven piece set of 2005 tea disks for CAD$258,000--approximately $36,900 for one tea disk, or over $100 per gram of tea.

While Pu’er has proven itself as an investment, and has become a status and lifestyle symbol, let us not forget that the true reward in Pu'er tea comes from tasting its rich and satisfying flavors.


Bill Lee
Tea Master, MTA
Institute of Masters of Tea Arts
www.mastersoftea.org

 

CHINA FLAIR TEA Inc.
www.chinaflairtea.com

September, 2006

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All rights reserved. Copyright © Bill Lee 2006