KUSMI TEA The historic tale of a Parisian brand born in St ...

KUSMI TEA

- The historic tale of a Parisian brand born in St-Petersburg -

The Kusmi Tea house, which was born in Russia and then flourished in France, is the perfect union between the celebrated gourmet and cultural traditions of these two countries. Empowered by 140 years of history, the brand has continually advanced its expertise to delight all food- lovers, and today reaches out to beauty and tea-lovers across the world.

I. KUSMI: A FRANCO-RUSSIAN STORY

In 1867, Pavel Michailovitch Kousmichoff founded the Kousmichoff tea house in St-Petersburg. It rapidly became one of Russia's foremost tea houses with 11 boutiques, and even supplied the Tsars' court.

Pavel himself created and carefully numbered the Russian blend recipes, kept secret since their creation and infused with the renowned "Russian taste": this label indicates a skillful alliance of carefully selected straight teas with bergamot, citrus and spice aromas. This knowledge is only possessed by the Russians. In 1888 Pavel created Prince Vladimir tea to celebrate 900 years since the Great Vladimir founded Holy Russia.

Viatcheslav and Constantin in the avenue Niel workshops, 1935

In 1907, Pavel sent his eldest son Viatcheslav to open a branch in London, at the time world centre of the tea trade, where he

created the Windsor and Victoria blends which are still available today.

Fleeing the revolution, in 1917 the tea house moved to Paris, near to the Arc de Triomphe and founded Kusmi Tea. The original Avenue Niel workshops have been kept with their d?cor and remain the brand's historic address.

Before the Second World War, Kusmi Tea extended its reach to the most prestigious destinations, from London to Zagreb, Berlin, Moscow and New York.

The tea house continued to expand during the inter-war years: it opened offices in New York, Constantinople, Hamburg and, notably, Berlin, where a large Russian community was established.

After the war, business declined little by little. The tea house was sold in 1972 on the verge of bankruptcy and in pitiful conditions.

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Constantin, Kousmichoff family's last heir, wanted to leave his prestigious expertise to passionate and creative experts. During his lifetime he wasn't able to fulfill this dream, but according to his daughter Catherine, he would be happy with how events have now turned out. The Orebi family took over Kusmi Tea in 2003. Present on the tea market since 1935, they descend from a long line of raw material buyers and were able to breathe new life into the tea house, keeping its spirit alive.

II. THE RENAISSANCE

In 2003, the tea house was only just being sustained by the last remaining loyal clients, who journeyed to the avenue Niel "sanctuary" to rediscover the historical blends. It was time to take action.

Sylvain Orebi decided to rebuild the company's fundamental core with his brother Claude:

- The tea blends were reassessed one by one, respecting the house formulas and using a selection of the very best straight teas combined with aromas from Grasse and Calabria, in order to recreate a coherent range of 80 tea varieties. These included the famous Russian Blends as well as aromatized teas (such as Cinnamon and Violet) and traditional teas (subtle blends of straight teas).

- The tins were given a new surge of life, reworking their original baroque style around the St Petersburg skyline silhouette, designed by Pavel at the end of the 19th century. Each tea was given its own color, with the entire range forming the brand's iconic multi-colored palette.

- The tea production process was also revised, preserving the essentials: artisanal aromatization (each blend is handmade following the house formula), using only cotton muslin bags that allow the whole leaves to unfurl during infusion (of course, no broken leaves or tea powder are used).

- Selective distribution was set up, exclusively in specialty delis and department stores

Kusmi's renaissance was founded on strong, strategic decisions: as Kusmi's clientele consists mainly of women looking for glamorous products that also provide a source of well-being, the tea house decided to position itself as a beauty product by launching a well-being range in 2007 with "Detox", followed by "Sweet Love", "Be Cool" and "Boost".

Kusmi boutique on the rue de Seine, Paris

For several seasons, Kusmi has also partnered with bi-annual fashion Week events and the "Who's Next" trade show in Paris,

which launches the latest fashion and ready-to-wear trends. Kusmi joined forces with Kiehl's in 2009 to

elaborate a new, exclusive blend called Imperial Label. Just like Kiehl's Imperial Body Balm, this blend is

inspired by the traditional Russian drink "Sbiten"- forefather to the tea we know and love today. This

delicious blend is re-edited in January 2010, adopting a new face and colors, and this time available in all

our points of sale.

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III. A TASTE FOR EXCELLENCE

Kusmi's owner Sylvain Orebi is also the brand's "nose" and benefits from twenty five years' "gringo" experience in selecting tea, coffee and cocoa. All of Kusmi's teas share a coherent gourmet signature, with discrete aromas that build up to create a delectable, refined finish. Sylvain Orebi creates each of his blends like a musical composition, creating harmonies (when each note blends into the next) and arpeggios (when tasting unveils each flavor one by one, with a top, middle and final note). Each stage in the teas' creation reveals their creator's quest for absolute excellence:

- Meticulous, un-compromising selection of "straight teas": India, China and Ceylon - Perfecting the development of well-balanced blends aromatized with the very best natural

essences from Grasse, Calabria and Madagascar - Artisanal tea fabrication in the Havre workshop where only the tin filling is automated.

IV. THE AMBITION: TO STRENGTHEN KUSMI TEA'S PREMIUM POSITIONING

Currently, no premium tea brand has successfully broken into all of the major global markets, as is the case with coffee. The Kusmi tea house aims to fulfill this role one day: while its name is pronounceable in all languages, its European story reaches out to international customers. It also has strong roots in Paris, the capital of taste and luxury. Sylvain Orebi hopes to continue the brand's international development, making Kusmi a benchmark across the world.

This development has been made possible by raising 2.5 M in 2009 and 2 M in 2010 with Audacia, the SME development fund created by Charles Beigbeder. Naturally, Kusmi's development started in France. Kusmi had already opened a modern, designer boutique in spring 2006 on the Rive Gauche in Paris, at the heart of St-Germain-des-Pr?s. In 2009, it opened a boutique in the BHV department store, followed by another in December on rue Danielle Casanova, a stone's throw away from Place Vend?me. In 2010, a further two boutiques opened their doors on rue des Rosiers in the very heart of the Marais, and on the Champs-Elys?es. The brand's aim is to open its own boutiques and franchises in the fifteen biggest French cities, starting with Bordeaux in April 2010 and Strasbourg in September 2011.

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From this point, Kusmi's ambitions turn global, with three priority countries:

- Germany: Kusmi settled here in 2007 and recently opened a corner in Hamburg. The Germans are consummate tea drinkers, with their convivial afternoon "zum Tee" tradition and continental climate. They also have a love of French gastronomy and a keen interest in the history of Eastern Europe. - North America: in September 2009, Kusmi inaugurated a boutique in the heart of Montreal; in June 2010 the brand opened a new boutique in New York's Upper East Side, as well as a corner at Bloomingdale's in December 2010. - Scandinavia: here the brand has a cult following and boasts six corners in Magasins du Nord across the country.

Kusmi Tea boutique in Montreal

Kusmi also has an online boutique, available in French, English and German. It enables internet users from over 40 countries around the world to have their favorite blends delivered. As the only truly Franco-Russian tea house, Kusmi's international development has only just begun...

V.: KEY FIGURES

TURNOVER SINCE 2006

2006 2007 2008 2009 2010

: 1,500K : 3,150K : 5,500K : 7.4 M (+36%) : 13 M (+75%)

NUMBER OF EMPLOYEES SINCE 2006

2006 2007 2008 2009 2010

: 16 : 41 : 48 : 62 : 100

SALES DISTRIBUTION

58% France 42% Export

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BOUTIQUES IN FRANCE:

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Boutique historique 75, avenue Niel ? Paris 17

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Boutique 56, rue de Seine ? Paris 06

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Boutique 25, rue Danielle Casanova ? Paris 01

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Boutique 56, rue des Rosiers ? Paris 04

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Boutique 71, avenue des Champs-Elys?es ? Paris 08

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Boutique 63, rue Porte Dijeaux ? Bordeaux

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Boutique 29 rue des Hallebardes ? Strasbourg

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Corner BHV Rivoli ? Paris 04

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Corner Galeries Lafayette Haussmann ? Paris 09

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Corner Lafayette Maison ? Toulouse

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Corner Galeries Lafayette ? Toulouse

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Corner Galeries Lafayette ? Nantes

BOUTIQUES ABROAD:

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Boutique 3875 Saint-Denis ? Montreal

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Boutique 1037 3rd Avenue ? New York

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Corner in Alsterhaus - Hamburg

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Corner in Magasin du Nord ? Copenhagen

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Corner in Magasin du Nord ? Lyngby

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Corner in Bloomingdale's ? New York

ONLINE BOUTIQUES:

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European boutique (languages: French and English) :

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German boutique: de

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North-American boutique (USA and Canada) : us.

NUMBER OF POINTS OF SALE IN FRANCE Over 300

TARGET CLIENTELE Female customers aged between 30 and 45. Profile: Follows fashion, fan of beauty and well-being products.

Contact : S?gol?ne B?al ? Tel : 01 58 71 22 02 ? mail : s.beal@ 5

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