Financial Times

BPL to sell single estate teas
Bogawantalawa Plantations Ltd (BPL) plans to embark on a new marketing drive to export its teas direct to consumer markets under its own brands as single origin or single estate teas.

The company wants to refocus its marketing efforts and promote value added single origin teas from Bogawantalawa Valley in much the same way as French wines are identified by their origin, said Angelo Wickramasuriya, vice president - marketing of BPL Tea, a subsidiary of Bogawantalawa Plantations Ltd.

BPL produces about 10 million kg of tea a year and plans to add value to at least a million kilos under its own brand, he said in an interview. The firm already exports a limited quantity of teas from the Bogawantalawa Valley, situated above 4,500 feet and known as the 'Golden Valley', directly under its own label as well as for private labels.

BPL has its own exclusive marketing arm in North America where the market for specialty teas is "taking off," Wickramasuriya said. "There is a new movement away from coffee and other beverages into tea.

"We will exploit the agro-climatic conditions which contribute to the flavour profile to enhance the full-bodied cup," he said. Wickramasuriya said Regional Plantations Companies (RPC) such as BPL were trying to go up the value chain because in dollar terms the selling price has been stagnating for the last 20-25 years against rising production costs such as wages.

"RPCs are in a very tight situation," he said. "Their national sale averages are about the same as the cost of production. We find it difficult to compete." BPL wants to market Bogawantalawa tea like wine where the vineyard is taken as the brand.

"We're going with Bogawantalawa as an exclusive, high quality product," he said.
BPL recently invited some of its tea buyers from the US to spend time on Bogawantalawa tea gardens to get a first hand knowledge of high grown specialty teas and how they are processed from field to factory.

BPL is planning to promote single estate teas such as Loinorn, Norwood, Bogawana, Campion, Kotiyagala, Lethenty, Bogawantalawa and Wanaraja.
Sri Lanka exports about 300 million kg and has 20 percent of the world tea market, which is around 1500 million kg of tea a year.

Tea accounts for 40 percent of volume in the global non-alcoholic beverage market but only 11 percent in value behind carbonates, coffee and bottled water. The world beverage market consumes about 315 billion litres (or 2.7 million tonnes) of tea-based beverages annually with an estimated value of $26.4 billion.

Tea is often considered the most popular non-alcoholic beverage after tap water. Tea producers are seeking niche, high value markets for gourmet and specialty teas as well as ready-to-drink (RTD) beverages in an effort to become less dependent on cyclical commodity markets.

They also want to exploit growing evidence that drinking tea has health benefits and can help fight cancer, heart disease and diabetes. RTDs, given its convenience factor, is a fast-growing sector and popular among consumers in affluent markets. Iced tea is popular in the US and is growing in popularity in Europe and the Far East.

From as far back as 1869,when Bogawantalawa Estates was established and began exporting teas, the valley has been known for its distinct variety of tea.
Over the years it has become sought after and hailed by connoisseurs as a tea that has a flavour all its own, with a rich aroma and bouquet, said Wickramasuriya.

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