Main Street Business

It was exactly 12 years ago in February of 2013 that I interviewed John Harney for the first issue of Main Street Magazine. While still working, he died a year later at age 83. His reserved parking spot remains vacant in front of the Harney & Sons tea factory on Route 22 outside of Millerton, New York. John Harney’s office, where I recently sat down with “Mike” Harney, is untouched, still covered with press articles, family photos, and Harney Senior’s framed US Marine uniform. Mike has been with Harney & Sons since the company’s first years and agreed to talk to Main Street about this family business founded by John Harney Sr. in 1983, its business growth, and its connection to our community.

Harney & Sons is actively involved in many good causes. How did this happen?

We support environmental efforts, especially the Dutchess Land Conservancy and Scenic Hudson, through our 1% for the Planet initiative. We’ve been a member since 2005 and have contributed over $6,000,000. That’s one percent not just of our profits but of our actual sales. Sometimes we give away money we haven’t even received. We also support local Salisbury charities like the Jane Lloyd Fund and the Salisbury Winter Sports Association.

Early on, our family was influenced by the philanthropic vision of Chuck Feeney, who built Duty Free Shoppers Group and during his lifetime anonymously donated all of his wealth to charity. That included over a billion dollars to Cornell, where he had attended the School of Hotel Administration, as did my father, my sister Elyse, and me. Chuck owned a house in Lakeville and became a family friend. When my younger brother Paul was 12 years old, Chuck bought him a lawn mower so he could start his own landscaping business. Chuck shared his vision of philanthropy and entrepreneurship with all of us.

When did you decide to join the business?

Chuck Feeney hired me as the general manager of the Richmont Hotel when I returned from France, which was where I met Brigitte, my wife. While at the Richmont, I attended Northwestern’s Kellogg Business School to get an MBA. After years of learning the tea business from Stanley Mason, my father, John Harney, started Harney & Sons and happened to be at a food trade show in Chicago sharing a booth with other small companies. Somebody asked me “why aren’t you there helping your father?” In 1988 I returned home to Salisbury, where I grew up with my young family. For the first year I wasn’t even paid. Just like my father, who had managed the White Hart, I went from the hospitality industry to tea. My younger brother, Paul, joined us when he got out of the Marines in 1997.

What was most difficult in those early years?

We were a tiny company. Our mother’s real estate business was helping to support the cash flow. Nothing is easy. You know the saying, “the first million is the hardest.” Our first big step wasn’t until 2003 when we bought this building with 89,000 square feet.

Are investment bankers still trying to buy the company?

When you talked to dad 12 years ago in 2013, specialty tea businesses were a “thing” and everyone wanted into the business. Today, although the market for tea is growing nicely, those private equity guys have moved on. I guess tea is out of fashion and they’re more interested in technology and real estate than in consumer goods. Recently Unilever sold off its global tea business, which included Lipton, Tazo, and PG Tips, for $5 billion, double its revenues. Potential buyers continue to call us, but we’re still not interested. New brands still try to get into the business, but most of these companies run out of money or ambition and just disappear.

What’s changed at Harney & Sons?

We’ve grown a lot since 2013, but I would still describe Harney & Sons as a specialty tea company. We had 120 employees then and maybe triple that now. Last year was a great year, and our sales have more than doubled in the last 12 years. It’s steady organic growth. Our direct-to-consumer Internet business has become more important and now accounts for 20% of our sales. It really made an important difference when COVID shut down hotels and restaurants, the bulk of our wholesale business. Advertising on the web where we can track effectiveness is a change for us – we never advertised before.

We are always discovering and introducing new teas and product extensions. We’ve added a distribution center in King of Prussia, Pennsylvania and broadened geographically. We are now doing all of our bottled and canned drinks at our facility in Hudson, New York.

What hasn’t changed is the company’s commitment to providing quality products for people to enjoy and honoring our father’s desire to remain a family business.

You just came back from South Africa. Do you enjoy business travel?

I wouldn’t do it if I didn’t enjoy going to exotic places and sampling tea. It’s important to visit our major growers just before the annual tea harvest in Asia and to explore new sources. I’m still the official tea taster for the company, I work with my tea buddy Elvira Cardenas. Travel brings me to obscure areas where we discover exceptional tea – Fujiian in China, Shui Xian tea in Taiwan, Japan, South Korea, India, Sri Lanka. And we got to domestic and international trade shows. Recently I was in Europe for a show in Lyon.

This year you turn 70. What is the next generation of leadership?

The plan is sort of laid out. Paul, who handles production and sales, is here now, and then there’s the next generation who already have important roles. Alex Harney, who founded our café, is in charge of all things digital – photography and video. Emeric Harney manages our Soho store and runs the marketing of our website.

What’s next for the Harney business?

Our intent is to continue growing by developing new products. Our newest is “Strawberry Milkshake,” which tastes like dessert in a cup without the calories. We are always discovering small, ancient teas and introducing them to the market – there’s an uncountable number of teas. Every year we develop a new blend for the lunar year – this is the Year of the Snake. And we continue to develop strategic private label lines, including for the Metropolitan Museum, Royal Palaces, and even the Schitt’s Creek TV show.

Why has Harney & Sons continued to be successful?

Well as dad always said, “Keep swinging the bat.” We believe in persistence, a commitment to selling a high-quality product, and training and educating our customers. We enjoy talking to our customers and have a great customer service team. Every year we ask our customers for ideas about new blends. French Macaron, a flavored white tea with a hint of lavender and almond was a recent winner. We stay true to our mission of making tea an everyday luxury. We only sell teas that taste good. Our message is always positive. We have tried to moderate price increases even though our own costs have continued to rise. We’re always thinking about how to adjust to the environment and try to treat our employees as family.

Can you read tea leaves? What’s your favorite tea?

The year of the snake should be very interesting. My favorite tea continues to be Jiuken Black with its combination of spicy and floral notes. Our mother, Elyse Harney, who is the president of Harney & Sons, drinks Dragon Pearl Jasmine.

Visit the flagship Harney & Sons location at 13 Main St, Millerton, NY, or find their products online at harney.com.