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SRI LANKA2003

American tea drinkers, rejoice – quality tea is coming back!

Only the tender new growth is picked for tea.
Photo by James Overly
Tamil ladies in tea country collecting firewood for home use.
Photo by Alex Kersis
95 percent of Sri Lanka’s tea pluckers are Tamils.
Photo by James Overly
Original machinery used in a tea factory, now in the Ceylon Tea Museum in Hantane near Kandy, the world’s first tea museum.
Photo by James Overly

American tea drinkers, your days in the wilderness are almost over. No longer will you be at the mercy of the big multinational tea brands that sell you cheap, bottom-quality blends from Africa and South America for your iced tea and tea bags. No longer will you have to drink trashy herbal “teas,” which are not teas at all, but concoctions made from twigs and bark. You will soon experience the taste of tea that used to be! Quality tea is coming back, direct from the garden in Ceylon to your teapot.

The tea growers in Sri Lanka, as Ceylon is now known, have tired of seeing their quality teas abandoned by the mass producers in favor of cheap, low quality teas. After all, the large companies got their names and reputations in the first place by selling high quality Ceylon tea.

The Sri Lankan tea growers thought they could do little about the multinationals’ market manipulations, because with one exception, they had never established and marketed their own tea brands. Instead, they were growers who shipped the tea in bulk for blending and packaging in other countries.

The exception, Dilmah Tea, showed that Sri Lanka could add value at the point of origin, and sell fresh, high-quality tea in any market at no extra cost. The fifteen-year old company is now the third largest tea company in the world. Theirs is the example the rest of the Sri Lanka tea industry is about to follow.

The Sri Lanka tea industry has just formed an association that for the first time brings together everybody in the tea industry—planters and small holders, factories, brokers, traders, sellers and exporters. With funds soon to be supplied by the Asian Development Bank, the tea industry will have money to overcome their common deficiency—lack of knowledge of packaging and marketing.

Sri Lanka remains the largest tea exporter in the world, exporting some 295 million kilograms of tea in 2001. China and India have larger tea production, but in both cases the crops primarily serve to meet domestic consumption. However, as a result of the changes in the tea market, and the failure of the government to adequately capitalize and organize the tea industry when it was nationalized, the price of tea in real terms has been declining.

Officials say an objective of the association will be to reassert Sri Lanka’s position as the top producer of quality teas. There are plans for the association to assist with brand marketing, but it will also assist in promoting generic teas.

The organization foresees a two-pronged strategy to develop an effective marketing program, and to strengthen the industry and its exports by developing a quality assurance program.

The marketing program will seek to establish Sri Lankan brands, and sell directly to countries like the United States. Presently, most U.S. imported teas come from countries that process tea, instead of growing it.

The quality assurance program will certify tea by type and grade. The association may also develop a system similar to the French system of controlling wine names by region. Officials say it is possible to certify tea by estate and year, as well as by region.

The association will begin marketing efforts in the United States in April, when officials will make a presentation in Boston. Association members acknowledge that the American market presents unique challenges, but they also know that there is always a market in the U.S. for quality.

Malik Fernando, Dilmah Tea director, says, “Only the oldest Americans have ever tasted real quality tea, and the American preference for tea bags and iced tea has made it easy for the multinationals to peddle cheap teas in the U.S.”

“It’s no wonder that coffee dominates the American market,” he says. “Americans who only know iced tea and tea from tea bags will be amazed at the taste of quality tea.”

Fernando says his company plans to enter the U.S. market within a year or two, and will market its full line of quality varieties, garden teas, and herbal infusions, the proper name for so-called “herbal teas.”

SPONSORS
Airport & Aviation Services
Sri Lanka Telecom
Crescat
Board of Investment
Jaya Container Terminal
SriLankan Airlines
Citibank
TEAM
Project Director
Alexander J. Kersis III
Senior Writer
James Overly

 

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