Issue link: http://read.dmtmag.com/i/556538
STiR tea & coffee industry international 53 By Anne-Marie Hardie The Fairtrade Factor "These higher prices have been sustained thus far but could be at risk if a concerted effort is not made to rebuild the pre- mium, aspirational position of Ceylon tea, highlighting its supe- riority to other origins," said Premala Srikantha, director (pro- motion) Sri Lanka Tea Board. Brand recognition continues to be a challenge, according to David De Candia, an American tea buyer, who serves as ambas- sador for Ceylon Tea in the US and Canada. De Candia is senior director of tea at Coffee Bean & Tea Leaf, a 1,000-store global coffee and tea chain based in Camarillo, Calif. "When the country changed its name from Ceylon to Sri Lanka it lost the connection to the type of tea because the tea is Ceylon," said De Candia. He said that bridging this gap is one of his primary goals as ambassador. Originally a British colony, Ceylon declared its indepen- dence in 1948 but retained the British name of Ceylon until 1972 when Sri Lanka became a republic. Despite the name change, Sri Lankan grown tea is still known by its original Ceylon name. Concerned about developing new markets, in November 2012 Sri Lanka began taxing exports to amass a fund sufficient to finance a global marketing campaign. The fund now exceeds $50 million and provides up to $1 million in matching funds for tea companies targeting Europe, Asia, and North America. Polishing the Ceylon brand is integral to ensure that Ceylon tea is recognized for the high quality tea that it is, said Fernan- do. "The reputation of Ceylon tea has been misused by many brands initially to establish themselves and thereafter to profit without regard to the founding values and commitment," said Fernando. "Most of the world's major tea brands today were established on a foundation of Ceylon tea but retain nominal if any Ceylon tea content today as they have moved on to reduce cost by using tea from other origins," he said. Dilmah is committed to offering single origin, unblended Ceylon tea. "We encourage Ceylon tea growers to implement the sustainability, biodiversity, quality, ethical and other priorities that are necessary but at the same time to secure for Sri Lanka the benefit of those by establishing their own brands," said Fernando, adding, "It is a difficult proposition today although not an insur- mountable one." Export targets De Candia was appointed for his expertise and passion for Cey- lon tea. Sri Lanka imports to the US grew 23% from 2012 to 2013. The US is the world's largest economy and still the "un- disputed trendsetter to the world on food and beverage sector, service sector and most other sectors," according to Janaki Ku- ruppu, the first woman to chair the Sri Lanka Tea Board. The US is the fourth largest tea importing country. Cana- dian consumption is expected to increase 40% by 2020. Both countries prize specialty and value-added tea, said Kuruppu who intends to target the "iced tea" segment consumed by 8 in 10 Americans. Last year the tea board also appointed Michael Bunston OBE, tea ambassador to the UK. Bunston chaired the Interna- tional Tea Committee for 19 years. He is tasked with burnish- ing the brand in Europe. Increased outlays for advertising, trade missions and an upgrade to the Sri Lanka Tea Board website (www.pureceylontea.com) are underway. Continued on pg. 55 Organic certification was a relatively new concept when Stassen Bio Garden recognized its importance both to the planet and to the economy. It was 1987, and the tea estate made the decision to certify one of its tea gardens. The first step was to stop using chemical fertilizer and pesti- cides. Eliminating the residue took several years but as workers added compost and cow manure the soil gradually returned to good health. Planting indigenous trees helped alleviate soil ero- sion and support biodiversity. The shift to organic production just made sense to a com- pany that wanted to keep pace with market demands while pro- tecting the environment, explained Rajaratnam Gnanasekeran, manager, Idalgashinna Bio tea project. Like many workers on the tea plantations in Sri Lanka, Gnanasekeran is Tamil. Over the past three decades, he has worked extensively to ensure that the workers not only are heard, but that their rights remain a top priority. Changes didn't end with organic certification. Stassen Bio Garden wanted to do more, and so in 1992, they pursued Fairtrade certification. The motivation was twofold, said Gnanas- ekeran, who now chairs the National Fairtrade producer asso- ciation of Sri Lanka. The intent was to improve the lives of the workers and to respond to buyers. "We wanted to support the community and at the same time the buyers also wanted the Fairtrade tea," said Gnanasekeran. At that time plantations were controlled by authoritative man- agement, and workers operated in an atmosphere of fear and obligation. Under the Fairtrade standards, the workers were en- couraged to communicate and share both their ideas and their worries. "People are given dignity, freedom, and they are more independent," said Gnanasekeran. "They are given equal rights. All we wanted was everybody to be treated equally," he said.