STiR coffee and tea magazine

Volume 3, Number 5

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STiR tea & coffee industry international 71 the past couple of years, he said. The branded tea opera- tion protects KDHP against the vagaries of the tea auction market where prices are unpredictable and can nosedive depending on supply and demand. KDHP has also established its bulk brands (known as auction marks) which are among the top-selling offerings at the Cochin auction. Premium CTC estate marks include Kanniamallay, Vagavurrai, and Chokanad. Orthodox auction marks include Chundavurrai, Grahamsland, Rajamallay, and Thenmallay, all of which are very popular with exporters. To further strengthen its operations KDHP launched the new Madupatty premium CTC mark in the Kochi auc- tions. Thomas said these teas are targeted at the Kerala market. He said the company is developing and will soon introduce new varieties of its Ripple retail brand. Besides the conventional black teas KDHP also has a range of high grown green teas (Yellapatty), high grown organic teas (Kundaly), and its TOP Station Special Teas, which are hard withered winter teas. Like the multimationals on a smaller scale KDHP is vertically integrated with all the advantages of manufacturing and selling an entire range of exquisite teas. Abraham said that KDHP is now the largest producer- exporter in South India supplying multi-national brands including Tata Global Beverages Ltd., Tetley, Unilever, Typhoo, Sunty Russia, Tapal Tea (Pakistan), Debsh Tea, and Golchin from Iran. The future of tea Given its success, it is unclear why KDHP's model has not been widely adopted. Several years ago the Ethical Tea Partnership and a coalition of major tea companies in cooperation with the Future Forum in London initiated Tea2030 to address the challenges of highly competitive global market. Tea generates $90 billion globally but very little of this wealth reaches workers. "It is amazing to see how the tea industry is making serious efforts and investments to address difficult issues such as wages and smallholder inclusion," observes Joost Oorthuizen c.e.o. of IDH – The Sustainable Trade Initiative. "These and other deeply rooted problems, that only a few years ago were 'owned' by civil society groups, are now high on the agenda of the international tea industry. We can use this positive energy by working together and col- laborating with retailers, government agencies, and NGOs, who all have a part to play." ETP and IDH and industry leaders have not ruled out large-scale plantations but it is clear the colonial model is failing due to its reliance on low-paid labor. Quality production by small holders is one solution. Tata Global Beverage's willingness to establish an employee-owned venture confronted that challenge directly. As a result TGB has a reliable supplier of quality tea and workers at a once-failing plantation are financially secure. Success in Munnar demonstrates that everyone benefits when small holders take the reins. KDHP stands amid the rest as a garden of hope. KDHP has developed strong brands in the domestic market and continues to innovate with value-added teas such as its Kundaly and Ripple lines. It grows thousands of roses to flavor its rose tea, below. KDHP won 6 Golden Leaf India Awards in 2014, three each for its CTC and Orthodox teas. The competition is a joint initiative of the Tea Board and United Planters Association of Southern India. (UPASI).

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