A Cup of Kindness, The Story of Dilmah Tea by Dilmah

A Cup of

KINDNESS

THE STORY OF DILMAH TEA

A Cup of

KINDNESS

THE STORY OF DILMAH TEA

“We come into this world with nothing, we leave with nothing. The wealth some of us acquire is owed to the efforts and cooperation of many others around us. Let us, therefore, share that wealth, while we are still around, so that the goodwill and contentment created thereby may make our world a happier place for others too.”

Merrill J. Fernando Settlor, MJF Charitable Foundation

Businesses are rarely associated with kindness; the central objective of business is profit and that leaves no room for genuine altruism. This may seem to have changed for the better in the first decade of the new millennium. Unfortunately it is more the appearance that has undergone change, for the rhetoric on social responsibility is very rarely matched by reality. Merrill J. Fernando’s Dilmah is different. There was no strategic intent behind this though; when in the 1950s, Merrill J. Fernando conceived the notion that business ought to go beyond accumulating profit and deploy a part of that profit to serve the community, the concept of ethics in business was neither as popular as it is today, nor was it appreciated. Merrill asserts that it was his mother’s influence when he was a child that spurred him to seek a more compassionate form for his family tea company. The concept that the young teaman devised, of making business a matter of human service, has much greater relevance and importance in this greed driven century. The maxim that Merrill crystallized as the foundation of his business, is proven by social, economic and environmental challenges facing humanity today to be the only sustainable way for a business to operate. In light of the growing economic disparity and poverty that is manifest equally within nations that are considered rich and those considered poor, it is also evident that there is no other option. The philosophy of making business a matter of human service has global relevance for it presents an enlightened vision for the objectives of business – of going beyond profit to include broader social and economic objectives. The concept acquired greater momentum in 2007 with the integration of environmental conservation into the objectives of Dilmah. The Cup of Kindness to which Merrill J. Fernando has devoted his life has touched the lives of thousands of people. These lives are not only those of the beneficiaries of his MJF Charitable Foundation but also millions of customers around the world. Citing the importance of integrity, Merrill maintains an unwavering commitment to quality and to to Ceylon Tea, running contrary to the more profitable industry direction and the pressure of his peers who seek the less difficult path. That has brought fine quality, garden fresh Ceylon Tea and the pleasures that it offers, to millions of tea drinkers. The thousands of letters that Merrill has received over the years from appreciative customers testify to the solace, strength, encouragement and goodness they have experienced in his Cup of Kindness. The story of the passionate young man of modest means who came from a tiny hamlet to acquire global renown for his tea, is one that should be emulated by every business. The vision is a simple one – Merrill wishes to share his success with those less privileged; as he often says, the more he shares, the more he is blessed with.

© Ceylon Tea Services PLC 2012 All rights reserved. No part of this publication may be used or reproduced in any manner whatsoever without written permission from the publisher. Acknowledgements Author Jane Pettigrew is a tea specialist, historian, writer and consultant. Since 1983, she has been working in the UK and around the world to explain and share the fascinating world of tea. Photography Alan Benson, Dilhan C. Fernando, Adam Golec, Bree Hutchins, Sarath Perera, Julian Stevenson, Izabela Urbaniak and Piotr Witomski. Mary Evans Picture Library, UK Platé, Sri Lanka Edited, designed and laid out by the Brand Marketing Team at Dilmah. Printed and bound in Singapore ISBN: 978-955-0081-................ Ceylon Tea Services PLC MJF Holdings No. 111, Negombo Road Peliyagoda Sri Lanka

Contents The six pillars of Dilmah

10-11

Significant dates

12-15

Introduction

18-25

From the dragon court to the land of the lion

26-43

An island of tea

44-65

Independence!

66-91

The brand with a conscience

92-141

Reaching out to the world

142-165

The magic of Ceylon tea

166-183

Dilmah’s family group

184-203

The leisure and pleasure of tea

204-215

Preserving the past

216-217

The kindness in the cup

217-360

In 2005, Merrill and his sons Dilhan and Malik, pledged to follow the principles dictated by the Six Pillars of Dilmah in every aspect of their business and in the conduct of their workers, staff and management. The Six Pillars are Integrity, Tradition, Quality, Our Customer, Ethics, and Sustainability.

INTEGRITY

TRADITION

QUALITY

Dilmah and the companies of the MJF

Dilmah is respectful of the traditions of

Every aspect of Dilmah is a manifestation

Group maintain honesty and integrity

an industry that is centuries old, and of

of quality, beginning with the teas we offer

in every contact, with customers, with

a beverage with a 5,000 year history. The

our consumers, and extending to the

retailers, partners and everyone we

teas we offer are traditional and orthodox,

equipment we use to maintain an industry

have the pleasure of working with. That

made using a process perfected over

leading

honesty requires that Dilmah Tea is Single

generations.

excellence,

Origin, Single Region or Single Estate,

are respectful of these traditions and

concepts pioneered by Dilmah. This

embody authenticity. Moreover Dilmah is

ensures that our customer knows exactly

committed to protecting these traditions,

what is in our packs, and that we shall

communicating them to the world via the

remain consistent in offering customers

industry service projects of the company

exactly what we have claimed, and

and the MJF Foundation which seek to

exactly what our customer expects.

develop Ceylon’s great tea industry for

Innovations

the benefit of tea consumers.

Dilmah

standard to

our

presentation of our tea.

manufacturing

packaging,

and

OUR CUSTOMER

ETHICS

SUSTAINABILITY

Dilmah values our customer, maintaining

Dilmah is a brand with a conscience; a

Dilmah owes its success to the quality of

consistency in quality and taste to be

business established with the objective

Ceylon Tea. Our business was founded

as loyal to our customer as we hope

of going beyond business alone. In

therefore on an enduring connection

our customer will be to our brand. The

seeking to make his Dilmah a matter of

to the land and the communities in

Founder of Dilmah personally responds to

human service, Merrill became a pioneer

which we operate. We have pioneered

each customer communication, learning

in seeking justice in the world of tea.

from customer comments, respecting

His workers, underprivileged people in

minimizing our impact on the planet,

the wishes of customers and striving

the wider community, and his country’s

fostering respect for the environment

to fulfill their requests with integrity and

exploited Tea industry benefit from the

and

responsibility.

success of Dilmah. The activities of the

encouraging a harmonious coexistence

MJF Charitable Foundation in bringing

of man and nature. We believe that

a smile to the faces of workers and the

conservation is ultimately about people

community are funded by revenue from

and the future of the human race, that

the sale of Dilmah Tea. Dilmah applies the

efforts in conservation have associated

same ethics in respect of its customers.

human well-being and poverty reduction

Customer communications are honest

outcomes.

and transparent.

comprehensive

ensuring

its

commitment

protection

SIGNIFICANT DATES

1792

1796

1815

Tea recorded to be growing in Ceylon by Dutchman Christian Wolf

British East India Company takes over control of Ceylon from the Dutch

Ceylon becomes a British colony

Captain Percival finds tea growing in Ceylon

1842 Tea introduced to Ceylon

1854

1864

Ceylon Chamber of Commerce founded

8 acres of land on the Barra Estate in China planted with tea

Ceylon Planter’s Association established

1873

1883

23 pounds of Ceylon tea reaches London from Loolecondera Estate

First tea auction in Colombo

1886 9 million pounds of Ceylon tea produced Tea Syndicate fund set up to raise money to publicise tea abroad

1913

1917

1921

Ceylon Estate Agents’ Association set up

The Russian revolution means that Russia stops buying tea from Ceylon

Ceylon Estate Agents Association becomes Ceylon Estates Proprietary Association

1946

1948

1954

Ceylon Tea Centre opens in London’s Regent Street

Ceylon gains independence

Merrill J Fernando starts work with AF Jones Spends 12 months in London with Joseph Travers & Sons Ltd

A Cup of Kindness

The Story of Dilmah Tea

1816

1828

1839

Reverend Ringletaube suggests growing tea in Ceylon

First South Indian workers arrive in Ceylon to pick coffee

First tea seeds arrive from Assam at Ceylon’s Royal Botanic Gardens at Peradeniya

1866 James Taylor refers to experimenting with tea

1867 James Taylor lays out the first tea plantation in Ceylon

1868 Coffee Rust Fungus (Hemilieia vastatrix) first noticed in Ceylon

Railway from Colombo to Kandy opens

1888

1892

1894

Ceylon Association in London (CAL) established

Tea Syndicate fund converted to CESS fund

Colombo Tea Traders’ Association established under the auspices of the Ceylon Chamber of Commerce

1925

1927

1930

Tea Research Institute - TRI established

Thomas Lipton dies

Merrill J Fernando born in Negombo

1955

1958

1959

Merrill J Fernando returns to Colombo

MJF is appointed a director of A F Jones, and buys A F Jones with 2 partners when the company owners decide to return to England

MJF appointed Managing Director of A F Jones

Russian Embassy opens in Colombo

The Story of Dilmah Tea

A Cup of Kindness

1966

1968

Malik Fernando is born

Dilhan C Fernando is born

1975

1976

MJF considers retiring from the tea industry

MJF sells MJF Co Ltd

1985

1988

1989

Merrill J Fernando is asked to supply pre-packed teas to Russia

Dilmah Tea launched in Australia

Sri Lanka Tea Board re-introduces scheme to subsidise purchases of bagging machines

2000

2001

MJF Group acquires 70% share in Forbes & Walker (Pvt.) Ltd.

MJF Plantations purchases a controlling interest in Kahawatte Plantations Ltd

1962 MJF decides to part company from partners MJF makes his first visit to Russia MJF establishes MJF Co Ltd

1973 MJF Co Ltd makes 8.2 cents profit per pound of tea sold, highest net profit over Brooke Bond MJF registers MJF Exports Ltd

1997 Dilmah Tasting and Packing Factory awarded ISO 9002 Certification for tasting

Dilmah becomes sponsor of Sri Lanka’s national cricket team

MJF Plantations Ltd invests in Talewakelle Plantations Ltd and Elpitiya Plantations Ltd

2003

2004

2005

First Dilmah Global Partner Conference at Trans Asia Hotel, Colombo

December 26th Tsunami hits south coast of Sri Lanka

Dilmah receives award from Medinge Group for its work as a Brand with a Conscience Dilmah receives Presidential Merit Award for its contribution to the preservation of the environment

History of Ceylon Tea website set up: www.hisytorofceylontea.com

Second Dilmah Global Partner Conference

2008

Inaugural Dilmah Chefs and the Teamaker Australia programme

2009

2010

Dilmah celebrates its 21st Anniversary and the Founder’s 60th Year in Tea

Dilmah Distributor Conference Dilmah pledges a core commitment to sustainability

Dilmah School of Tea inaugurated in Colombo Merrill J Fernando celebrates his 80th birthday First International Tea School established at the Institut Paul Bocuse in France

A Cup of Kindness

Dilmah Chefs and the Teamaker Global Edition

The Story of Dilmah Tea

1972 Ceylon becomes a Republic and changes its name to Sri Lanka but the tea industry keeps its old name

1982 Merrill J Fernando establishes Ceylon Tea Services Ltd

1994 New Dilmah factory built at 111, Negombo Road, Peliyagoda, Colombo

2002 The MJF Charitable Foundation is officially inaugurated

2007 Third Dilmah Global Partner Conference Official inauguration of Dilmah Conservation Launch of the Dilmah Exceptional Range of Teas

2011 Inauguration of Tea in the Five Senses Launch of Dilmah Real High Tea Consumer and Professional Challenge in Australia Launch of TPR

The Story of Dilmah Tea

A Cup of Kindness

The Story of Dilmah Tea

A Cup of Kindness

I am an ordinary farmer learning to market our tea crop without middlemen so that I can retain in my country the earnings which are taken away by traders, leaving us poor. My earnings are shared with my workers and the wider community and reinvested to make tea a sustainable industry. I have made it my duty to extend a helping hand to others and the community. If we

A Cup of Kindness

learn to care and share with others, we will spread happiness, not create envy. If we learn to share our wealth, our world will be a far happier place for all. Merrill J Fernando

The

story of Merrill J Fernando’s Dilmah Tea Company is one that impresses and inspires, encourages and heartens. It is

a story of determination and tenacity, of unfailing vision and unwavering

The Story of Dilmah Tea

focus. It is the story of how one man, against all the odds, found a way of changing an industry and improving thousands of lives. Dilmah is the most successful company in Sri Lanka, engaged in value addition to tea and the marketing of tea under its own global brand name. After 40 years as a large exporter and supplier of bulk raw tea and in just 26 years of marketing Dilmah branded tea (initially in Australia), it has become an international giant that markets its top end teas in more than 100 countries. The company was established in 1962 by Merrill J Fernando, an extraordinary man who determined very early in his career to change the way in which the Ceylon tea industry worked, to sell excellent

The Story of Dilmah Tea

A Cup of Kindness

Ceylon tea, to keep the revenue from those sales inside Ceylon rather

his business career but also provided the greatest opportunity of his

than watching it go directly into the bank accounts of foreign companies,

life. He ventured out on his own into the big world of tea!

and to help those worse off than himself. When he started his career in tea in the 1950s, the tea industry and trade remained the backbone

He followed in the footsteps of all other tea companies in exporting and

of Ceylon’s economy and provided employment for almost a million

supplying tea in bulk to blenders and packers around the world. He

people. But the industry was still almost entirely in the hands of the British

realised, however, that he was himself helping foreigners to take away

and other multi-national companies. The trade was closed to locals

profits from his country but was helpless to do anything about it. His

although the government, both before and after Independence in 1948,

business continued to grow and he was recognised for his dedication

made persistent requests to those foreign companies to recruit locals

and commitment to the tea industry. The quality of service provide by

into the tea trade. The wealth earned from the production and trading of

Merrill J Fernando Co. Ltd. attracted many of the big international tea

Ceylon tea continued to line the pockets of mainly sterling companies;

companies to turn to him for some of their supplies, even though they

the committees and associations that moulded policy and controlled the

had their own branch offices or established agents in the country.

industry were made up of mostly foreign tea men; the fate of Ceylon tea was decided in London or by foreign planters and management

During his training in Mincing Lane, London, Merrill realised that

companies based in Ceylon; prices were set at the London auctions; an

Ceylon tea was used sparingly due to its high cost and that the

attitude of colonial paternalism and patronage ran right through the Sri

growing influence of brand names was beginning to replace quality!

Lankan tea establishment.

So he dreamt that some day he would market his own brand of pure Ceylon tea, packed fresh at source, and would bring quality, freshness

In 1950, after eight years of agitation by the locals for the trade to be

and integrity back to tea. As his business grew, his dream began to

opened up to them, Merrill was one of six young men whom were

haunt him! From that point on, he made up his mind that he would

selected to be trained as tea tasters with Mr O Peter Rust, tea taster

do what he could to market only high quality Ceylon tea, to make

to the Ceylon Tea Controller, the authority that supplied tea to the UK

Ceylon tea a success around the world, to break the hold that foreign

Food Ministry during the years following World War II. Upon completion

companies had on the Ceylon trade, to work, if necessary, outside

of his training, he joined A F Jones & Co. Ltd., a British tea company in

the framework that had been established by the early traders and to

Colombo, spent a year in London in order to further his training, returned

ensure that his employees were fairly treated and rewarded for their

to Colombo, became a director of A F Jones and, when his employers

contribution to the company’s success. With an honesty, integrity and

decided to sell out and leave Sri Lanka, he arranged, together with two

a genuine concern for others, Merrill dreamt of building a business

friends, to purchase the company.

that would improve the lives of fellow Sri Lankan citizens, that would make Sri Lanka a better place and would provide the finest tea on

A F Jones & Co made great progress under Merrill’s management and

earth to consumers around the world.

one of his unique achievements was winning the Russian tea business in 1958. But success can breed jealousy and envy, even within one’s own

And so in 1962, he laid the foundation for the MJF Charitable

team, and Merrill began to face disagreements and deceit from one of

Foundation whose aim is to share company profits with those in need.

his partners. A successful business requires complete focus from the

Over the years, the Foundation has helped both company employees

person at the head and disputes only distract and create losses. So

and those in the wider community - the sick in need of medical care,

Merrill walked out of A F Jones & Co. Ltd. in 1962. The events that

the poor who require education, those who need health care, isolated

followed over the following six months remain the bitterest experiences of

A Cup of Kindness

The Story of Dilmah Tea

communities who have little contact with the outside world, enterprising individuals who dream of setting up small businesses, deprived children, abused women, victims of the 2004 Tsunami, and those affected by the war between the Tamil Tigers and the Sri Lankan government. By keeping the company in the guiding hands of the Fernando family, Merrill and his two sons, Dilhan and Malik, have been able to build an incredibly successful organisation while consistently following those very strongly-held principles of ethical trading. This is the most important aspect of Dilmah and has underpinned the company’s work since long before ethical trading became an issue for other traders and for consumers. Unlike other large companies who create wealth that goes straight into shareholders’ pockets, Dilmah creates wealth that is given back to the people of Sri Lanka. The Dilmah philosophy is one of ‘fair trade’ - but not just as a label on tea packets in supermarkets telling consumers that profits from the product will go back to the workers in the country where tea is grown. Merrill J Fernando’s ‘fair trade’ is in his ethically produced Dilmah tea. This means paying the pluckers and factory workers a fair wage for their work and the farmers a fair price for their crop. Only then will the world become a fairer place for everyone to live in. But sometimes, people also need a helping hand and the spirit of kindness and understanding and the willingness to offer help to those in need lie at the heart of the company’s work.

Why does Dilmah work as it does? What has driven Merrill over the years to help so many? His own words explain: “We come into this world with nothing and we leave with nothing. The wealth some of us acquire is owed to the efforts and cooperation of many others around us. Let us therefore share that wealth, while we are still around, so that the goodwill and contentment created thereby, may make our world a happier place for others too. I always remember a little message given me by a friend many years ago which said, ‘I shall pass this way but once; any good, therefore, that I can do or any kindness that I can show to any human being, let me do so now. Let me not defer or neglect, for I shall never pass this way again.

The Story of Dilmah Tea

A Cup of Kindness

The Story of Dilmah Tea

A Cup of Kindness

The Story of Dilmah Tea

A Cup of Kindness

FROM THE DRAGON COURT TO THE LAND OF THE LION Tea Travels from China to Ceylon I want people to treasure tea. The worlds best is grown here in Ceylon, now called Sri Lanka. We are not using it to help our country. We are using it only to illuminate others. But that is not what I am after. Tea must illuminate our country and the lives of our people. Merrill J Fernando

established systems in the 19th and early 20th centuries which kept the industry tightly in British hands, which brought enormous wealth to many Victorian Britons, and which still permeate the industry in India and Ceylon today. Until the 1950s, the local people of Ceylon had little chance of attaining any position of importance or power in the industry. Tasters, brokers and managing agents were almost all British. Even after Ceylon won its independence from Britain in 1948, the trade did not visibly alter. But now, after 50 years of refusing to accept unfair or unreasonable rules and regulations, of standing up for equality, of always following his principles, and of planning for the future, Merrill has proved that things

can change. He has proved that the old systems are not necessarily the understand the significance of Merrill Fernando’s achievements

best, that Sri Lankan-owned companies can survive and grow where

and of Dilmah Tea’s success as an international tea company, it is

companies elsewhere have failed. More important than anything, he has

crucial to place Ceylon tea in its historical context. We need to recognise

proved that a company can achieve phenomenal financial success and

that for hundreds of years, China held the monopoly in tea production,

still trade ethically for the good of both employers and employees. Today,

that the English East India Company maintained a stranglehold monopoly

Merrill is Chairman of a group of companies worth millions of dollars that

on the trading of that tea to Britain, that the British planters and traders

grow, process, bulking, pack, broker and market tea, as well as having

A Cup of Kindness

The Story of Dilmah Tea

control over other essential, integrated activities such as transportation, warehousing, printing and packaging. But the journey that eventually brings us to Dilmah’s 21st century success started almost 5000 years ago in China in the 3rd century BC. From there tea travelled overland to the countries to the north, east and west of China, across the East China Sea to Japan, through treacherous oceans to Europe and North America until it became the everyday beverage of millions of people all over the world.

Tea Begins its Journey from China to Foreign Lands The Chinese reliance on tea for health and for pleasure is said to date back to the days of the legendary Chinese emperor, Shen Nung, who discovered the plant and its many benefits in approximately 2737 BC.

The Story of Dilmah Tea

A Cup of Kindness

Stories tell of the emperor’s experiments with herbs and plants and

economic policy. By the 11th century, Fujian Province alone was

describe how he enjoyed the aroma, flavour and refreshing properties of

producing roughly 7 million pounds of tea a year. Much of this, and

the tea infusion when a few stray leaves from a wild tea tree fluttered one

similar quantities produced in other regions, was consumed by the

breezy day into his pot of simmering drinking water. The legend then tells

Chinese themselves but exports also brought vast wealth to the state

how he encouraged his people to cultivate and drink the herbal brew as

and to the merchants who were licensed to trade it.

a daily health-giving beverage. It seems that the plants first grew in the swooping valleys and slopes of the Himalayan foothills in China’s Yunnan

In the 8th century AD, Japanese Buddhist monks travelled across

province and the people who lived there drank and traded it, usually

the East China Sea to study in Chinese monasteries and temples

compressed into cakes or bricks, or packed inside bamboo stems. Their

where tea sustained the Buddhist priests through their long periods of

ancient trading routes carried the tea northwards into Sichuan province,

prayer and meditation. Having discovered and enjoyed the revitalising

Tibet and Mongolia, and westwards along the silk road to Samarkand

benefits of the beverage, the Japanese monks took tea seeds home,

and the Turkic lands beyond. Tea was traded for horses to the nomadic

planted them in monastery gardens and taught their brother priests

tribes of the Tibetan Plateau and the more westerly regions of China. By

to cultivate the leaf and enjoy the green infusion. In the 12th century

the days of the Tang Dynasty (618-907AD), fifteen of China’s southern

AD, the fostering of closer relations with China spurred a widespread

provinces (the areas which are still today the main producing regions)

increase in the popularity of tea drinking in Japan and a fashion for

were all growing tea. The trading of tea, salt, textiles and other essential

whisking powdered tea into hot water – the method of brewing then

commodities were imperial monopolies and underpinned the country’s

favoured by the Chinese. Over the centuries, the Chinese had brewed

Over the centuries, the Chinese had brewed and served their tea in many different ways - boiling the freshly picked leaves in water; roasting and crushing compressed cakes of tea and steeping in hot water; or flavouring crushed and steeped leaf with salt, onions, orange peel, ginger, peach leaves or jasmine flowers.

A Cup of Kindness

The Story of Dilmah Tea

and served their tea in many different ways - boiling the freshly picked leaves in water; roasting and crushing compressed cakes of tea and steeping in hot water; or flavouring crushed and steeped leaf with salt, onions, orange peel, ginger, peach leaves or jasmine flowers. During the Song Dynasty (960AD - 1279AD), a new fashion developed - the young leaves were carefully gathered, stored in airtight ceramic jars for several months and then ground to a fine powder which gave a frothy, bright green liquid when whisked into hot water. The Japanese copied this ‘Matcha style’ tea, set in place strict rules governing its preparation and service, and gradually developed a tea philosophy based on Zen Buddhism that became a ritualised ceremony known as Cha-no-yu or ‘The Way of Tea’. The ‘Japanese green tea ceremony’ developed during the Muromachi Period (1392-1568) and is still practised today as a spiritual exercise and entertainment during which those taking part aim to attain a harmony with those around them and with the wider universe. The tea master

The Story of Dilmah Tea

A Cup of Kindness

The Story of Dilmah Tea

A Cup of Kindness

must choose all the tea utensils, the wall hangings, the flower vase and the rough ceramic tea bowls according to detailed guidelines and, once guests have been welcomed and have taken their places, the tea is prepared, served and drunk according to a set of carefully choreographed movements. The slow grace and meditative smoothness of the ceremony creates a sense of peace and calm – a valuable antidote to the frantic activities of everyday life.

European Customers Although Marco Polo had travelled extensively in China in the 13th century AD, there was little contact between the Chinese and European nations prior to the 17th century and tea does not seem to have provoked more than a passing interest. In 1559, Italian Giambattista Ramusio wrote that a Persian acquaintance had told him about Chai Catai, a Chinese herb used by natives of Sichaun province as a medicinal tonic for gout and stomach complaints. By the middle of the 16th century, the Portuguese had established a trading base on the Canton river, and the Dutch shipped their first consignment of tea to Amsterdam in 1606. With new trading agreements set in place between China and those two great seafaring nations, ships regularly set sail out of China’s south eastern ports of Macau, Fuzhou, Hangzhou, Guanzhou, Hankow and Shanghai to satisfy the thirst of the new European consumers. From Amsterdam and Lisbon the tea was re-exported to other European countries along with the fine porcelain tea bowls, saucers, teapots and other exotic oriental goods that had arrived on the same ships. Meanwhile, although the English East India Company was on good terms with the Chinese court, they were embroiled in a bitter struggle with the Dutch for supremacy of the spice trade and when they lost, they were forced to withdraw to bases in and around southern India. Left without any direct links to China, they had no chance of developing an English tea trade and the first tea to arrive in London in 1657 was brought into the docks on board a Dutch

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The Story of Dilmah Tea

East Indiamen. It was not until 1669 that the first consignment of 143

The caravans of two or three hundred camels, with each beast carrying or

pounds of tea, ordered and shipped by the English East India, was

hauling roughly six hundred pounds of tea, travelled in winter and spring

unloaded in the London docks.

from Kalgan, through the Gobi desert, and onward to Urga, where the teas were inspected. From here the camel train slowly made its way up to the

The chests of tea that made up those early shipments held both

town of Usk Kayakhta on the frontier between Mongolia and Russia and

black and green leaf, but the Chinese traditionally drink green tea and

the boxes of tea were once again inspected, then sewn into raw bull hides

the manufacture of black tea had only developed in the early 17th

(called tsybics), marked and loaded onto carts or sledges. The entire journey

century specifically to meet the demands of the country’s growing

from China to St Petersburg took at least six months.

overseas trade. Although cakes of compressed teas travelled well and satisfied the requirements of customers in Tibet, Mongolia,

With the price of both black and green teas too high for the working classes

Siberia and the northern Chinese provinces, the Europeans wanted

to afford, they quickly became the luxury indulgence of the moneyed classes

the loose leaf tea that the Chinese were themselves now drinking.

at the Russian court and in Western Europe. Royal families, aristocrats and

But the Chinese producers found that loose green teas did not keep

wealthy civil servants brewed tea using dainty Chinese porcelain pots. They

well during the long journeys by sea, and too many complaints and

served it in tiny Chinese porcelain bowls into which they dropped very small

wasted cargoes prompted the tea manufacturers to find some way of

pieces of sugar and sometimes a dash of cold milk or cream. As the tea

producing a tea that travelled more successfully. In the tea factories

was far too valuable to entrust to the servants, the only role of the maids

of Wuyi in Fujian province, where much of the export tea was made,

and footmen was to set furniture and tea equipage ready, bring up from the

a new method of manufacture was introduced during which the leaf

kitchen a large black kettle of hot water to decant into the more elegant and

was rolled, oxidised and then dried in large heated chambers built

decorative silver kettle, and clear dishes and furniture away after the tea

over wood-burning ovens. The smouldering fires were fuelled with

drinking was over. Although aristocrats and members of the royal families of

pine wood from the surrounding forests and so the brown leafed tea

Holland, France, Spain and Portugal continued to drink tea, the infusion never

acquired a slightly smoky aroma and flavour – the forerunner of the

became the drink of the working classes in those countries, coffee instead

smoky Lapsang Souchongs that we know today.

becoming their preferred beverage. In Russia, the samovar developed from the Mongolian cooking pot as a means of offering strong black tea to family

It was these black teas that also became popular in Russia. The

and friends throughout the day, and tea became the drink of the people. In

Russians had first learned about tea in the early 17th century when

England, tea became a way of life.

the Mongolian ruler, Altyun-Khan, sent a gift of tea to Tsar Michael Fedorovich. While the Dutch and the Portuguese were receiving their tea by sea, deliveries into Mongolia, Siberia and Russia arrived

A New North American Beverage

overland, hauled or carried by camels. At Kashgar, just outside the Great Wall on the Chinese Gobi Desert border, the Russian traders

In 1650, several years before London became aware of tea’s existence,

made their initial selection of the required black, slightly smoky teas

Dutchman Peter Styversant is said to have introduced tea to the Dutch colony

from Wuyi and transported them northwards to Urga in Mongolia.

that had recently settled in New Amsterdam. When the British snatched the

The Story of Dilmah Tea

A Cup of Kindness

Although the good people of Boston and other east coast cities turned their backs on tea for a while, and although Britain lost her North American colony shortly afterwards as a result of the War of Independence, the American people did not actually stop drinking tea. On the contrary, tea parties and tea drinking in America were as important over the coming years as they were in Britain.

city from the Dutch in1674 and renamed it New York, they found that what was to them a relatively new drink was already well established among the European settlers. And, as more and more migrants made their way across the Atlantic from Europe to North America to start a new life in a new land, families packed teapots, tea bowls, tea jars and a supply of leaf among the most treasured possessions that accompanied them. The ports on America’s east coast became important trading posts for tea and tea wares and, by the middle of the 18th century, cities such as Philadelphia and Boston had acquired reputations as fashionable centres where upper class tea parties were regularly held and the manners people displayed while drinking tea revealed much about social status and breeding. By the 1760s, consumption

A Cup of Kindness

The Story of Dilmah Tea

in the colony had reached over a million pounds a year but the trading

split open the tea chests and vowing never to drink English tea ever

of tea was still in the control of the English East India Company and,

again, the demonstrators hurled the entire cargo of tea into Boston

since King George III and his government insisted on imposing heavy

harbour. Although the good people of Boston and other east coast

taxes on the imported goods, the Americans became more and more

cities turned their backs on tea for a while, and although Britain lost

rebellious. When an increased tax of 3 pence a pound was imposed on

her North American colony shortly afterwards as a result of the War

tea, the North Americans were incensed and refused to pay. Tea exports

of Independence, the American people did not actually stop drinking

to the colony dropped, valuable stocks sat unsold and the Americans

tea. On the contrary, tea parties and tea drinking in America were as

meanwhile smuggled tea in from other sources. The East India Company

important over the coming years as they were in Britain.

in England sought permission from the government to send some of its surplus to the America market but when the ships arrived in Philadelphia and New York, they were not allowed to dock. In Charleston, cargoes

The English Learn to Love Tea

were seized by customs officials while, in Boston, a band of local men dressed as Native Americans clambered on board three ships that had

By the mid 18th century, tea was being consumed by the wealthy

sailed into port loaded with tea. Brandishing hatchets that were used to

throughout England, Scotland, Ireland and Wales. Tea had replaced

The Story of Dilmah Tea

A Cup of Kindness

ale and beer at breakfast, was the accepted refreshment during the day, was served after dinner to settle the stomach and help the digestion, and had become a status symbol among the upper classes who often chose to have family portraits painted to show family members grouped around the carefully arranged tea table. All the tea being consumed at that time was imported from China and, since the East India Company held a monopoly of imports from the Orient, it was on East India Company ships that the tea sailed into the London docks. The company had at last managed to gain access to the Chinese merchants and had started to bring home regular consignments of tea which were warehoused and sold in Company offices in the City of London. Auctions ‘by the candle’ made the tea available to apothecaries and merchants who sold it alongside herbal remedies, general provisions and luxury goods. At such sales, a candle was lit and when one inch of wax had burned away, the auctioneer brought down his hammer to end the bidding. The East India Company held on tightly to its monopoly, despite competition from other ambitious groups of merchants, and continued to deal with selected Chinese merchants in Canton where the English

While the early planters were hacking down jungle, planting more tea bushes and manufacturing more black tea to send home to the London auctions, the British bacik home were becoming a nation of tea drinkers. Tea was drunk at breakfast, employers made provision for tea breaks at work, and afternoon tea was fashionable at every level of British society.

A Cup of Kindness

were now based. Various duties, taxes, payments for certification and bribes (that had to be paid before the cargoes could set sail) kept the cost of tea to the Company high. With no alternative supply and with additional taxation imposed by the government in London, tea remained an expensive luxury. In 1813, the East India Company’s monopoly was due for renewal and those in favour of free trade argued bitterly that the Company used unacceptable strategies for keeping prices high and stocks restricted. One opponent wrote in 1824 that the Company had “most scandalously abused the monopoly of which they are now in possession …. the monopoly of the tea trade enjoyed by the East India Company costs the people of this country, on average, not less than two

The Story of Dilmah Tea

million two hundred thousand pounds sterling a year!” Eventually in

in Sumatra. They knew too that, in the 1780s, British botanist Joseph

1834, after almost 250 years of exclusive trading rights, the East India

Banks had reported that he considered India eminently suitable for the

Company’s monopoly was broken, its last auction was held in 1835,

cultivation of the plant. Stripped of their right to trade in 1839, and acting

and the British tea trade was now free to hold its own auctions, and

now as managing agents for the British government, the employees of

free to explore new sources of tea.

East India Company were in control of the administration of vast regions of India. While they had traded with China, there had been no need to

By the early 19th century, consumption in Britain had increased to

look elsewhere for supplies of tea, but now that their interests lay in

such a level as to make the value of payments to China a cause for

India, it was the obvious place to consider as a suitable location for tea

concern, if not alarm. Vast amounts of British silver were being paid to

plantations. When the plant was found growing wild in Assam, further

China for tea, but China wanted nothing in return from Britain – except

research was encouraged.

opium which was being grown on British territory in Assam, India. Despite the fact that it was illegal in China, British traders managed

With direction from India’s Governor General, Lord William Bentinck, a

to export large amounts of the drug to Chinese traders by a devious

committee was set up in 1834 to examine the very real possibility of

and complicated route of brokers, shipping agents and middlemen.

growing tea in Assam. Despite wild tea plants having been discovered

But the Chinese emperor soon declared that enough was enough and

growing in the Assam jungle, seeds were acquired from China – at

in 1839, ordered 20,000 chests to be deposited on the beach and

great risk due to Chinese determination that their secrets were not to

left for the tide to wash away. From this point, relations between the

be discovered at any cost – and the first attempts at tea cultivation were

two nations became more and more strained and in 1840, the Britain

made in Calcutta’s Botanical Gardens under the direction of Joseph

declared war on China and China retaliated by banning the export

Banks. The new plants were sent up to Assam where C A Bruce had

of tea to Britain. It was just as well, then, that the British had already

been put in charge of ‘Tea Forests’ and was working to cultivate both

started looking for new locations where tea could be cultivated and

Chinese and native plants. In 1837, samples of the first manufactured

manufactured.

tea were sent to London where they were tasted and well received and, when 12 chests of Assam tea arrived in London in November 1838, the tea was declared good enough to compete with any China teas.

The First British Tea Plantations

In 1839, the Assam Company was established, other speculators acquired leases to tracts of land in Assam, new plantations were laid out

The British knew that the tea plant was already growing successfully in

and increasing volumes of tea were shipped from India to the London

Japan and Java, and that experimental plantings had been established

auctions. In the north, parts of Terai, Dooars, Chittagong, Sylhet,

in Brazil and North America. They were also aware of suggestions

Darjeeling, and the Kangra Valley were developed while in the south,

made some years before that the plant might be successfully nurtured

new plantations were laid out in Travancore and Nilgiri. Tea consumption

The Story of Dilmah Tea

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The Story of Dilmah Tea

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in Britain steadily increased from 1lb 4 oz per head in 1831 to 2lb 12oz

books, books of etiquette, and manuals of household management gave

in 1861, the planters grew rich and the merchants made small fortunes.

instructions as to how to organise a tea party, how to brew and serve the tea, what food to offer, what ladies should wear, what time guests should

While the early planters were hacking down jungle, planting more tea

arrive and how long they should stay at such a party. No wonder then

bushes and manufacturing more black tea to send home to the London

that the tea trade in India was doing so well and that the planters were

auctions, the British bacik home were becoming a nation of tea drinkers.

constantly searching for new land on which to grow yet more tea.

Tea was drunk at breakfast, employers made provision for tea breaks at work, and ‘afternoon tea’ was fashionable at every level of British society. What had started in the late 1830s as a mid-afternoon refreshment

Tea Replaces Coffee in Ceylon

for Anna Maria, 7th Duchess of Bedford, perfectly filled the long gap between an inconsequential luncheon at midday and dinner at 7.30 or 8

And so the journey now brings us to Ceylon. The beautiful, teardrop-

pm, and groups of wealthy people in palaces, stately homes, and middle

shaped island was colonised by the Portuguese in the late 16th century,

class mansions invited friends and acquaintances to take tea with them

then dominated by the Dutch from 1658 until 1796 when the British East

in their elegant drawing rooms and gardens. Elsewhere, in rural cottages

India Company, acting as representatives of the British government, took

and humble Victorian terraced houses, the British working classes also

control and shared administration of the country with the Governor. In

paused for a while in the middle of the afternoon, put the kettle on to

1801, the island became the first British ‘crown colony’. Under the Dutch,

boil and then brewed their pots of afternoon tea. By the 1870s, cookery

Ceylon had gained importance as the producer of the world’s supply

Tea was not unknown in the island and was referred to in 1782 by the Dutchman Christian Wolf who said in a letter, “tea and some other sorts of elegant aromatic are to be found here. In 1796, a certain Captain Percival found that the tea plant has also been discovered native in the forests of the island. It grows spontaneously in the neighbourhood of Trincomalee and other northern parts of Ceylon.”

A Cup of Kindness

The Story of Dilmah Tea

of cinnamon, but the British Governor decided to free up some of the smaller cinnamon gardens for the cultivation of other crops. Production on the larger plantations subsequently decreased due to the overstripping of bark, an attempt to set up public auctions failed, the East Indian Company’s Ceylon cinnamon monopoly ended and prices fell. So, a decision was taken to plant coffee instead and vast areas of jungle and wild forest were cleared in order to make way for new plantations. Money was injected from London, land was sold to new planters and cheap labour was imported from South India. Local Sinhalese craftsmen were employed to hack down trees and construct essential buildings, and a network of bullock cart transportation was established by Singhalese villagers to carry the coffee beans down to Colombo for drying and export. Tea was not unknown in the island and was referred to in 1782 by the Dutchman Christian Wolf who said in a letter, “tea and some other sorts of elegant aromatic are to be found here”. In 1796, a certain Captain Percival found that “the tea plant has also been discovered native in the forests of the island. It grows spontaneously in the neighbourhood of

The Story of Dilmah Tea

A Cup of Kindness

Trincomalee and other northern parts of Ceylon.” He had apparently been

to when he retired in 1862, D G B Harrison and Martin Leake, recognised

told that “the soldiers of the garrison frequently used it. They cut the

a need for diversification and Taylor later wrote of them, “It was they

branches and twigs and hang them in the sun to dry; then they take off

who allowed me to plant cinchona and ordered me to plant tea and it

the leaves and put them into a kettle to boil to extract the juice, which has

was they who paid for these things and stood the risk of failure.” Taylor

all the properties of the Chinese leaf.” It had also been suggested as a

acquired seeds from Peradeniya Botanic Gardens in 1867 and planted

potential crop and in a letter written in 1816, the Reverend Ringletaube

them along the roadside of the coffee plantation in neat rows. When they

advised a friend who had recently arrived in Ceylon, “In the garden of Mr

grew successfully, more seed was brought from Assam and 20 acres of

Cripp, Master Attendant at Colombo, I am told grows the TEA PLANT.

newly cleared land was planted.

Were you to offer that you would introduce the culture of this most valuable PLANT in Ceylon, somewhere near Colombo (for instance at

Taylor experimented with manufacturing methods on the verandah of his

Caltura where Government has a piece of ground well fitted) perhaps the

bungalow, witnessed by E G Harding who worked on a nearby estate:

offer would take.”

“The factory was in the bungalow. The leaf was rolled on tables on the verandah by hand, i.e. from wrists to elbow, while the firing was done in

In 1839, the first tea seeds were planted at the Royal Botanic Gardens

chulas or clay stoves, over charcoal fires, with wire trays to hold the leaf.

at Peradeniya near Kandy and some of the plants grown here were

The result was a delicious tea which brought up locally at Rupees 1.50

subsequently planted in Nuwara Eliya. Two German brothers, Gabriel and

per lb.” Taylor was trying to produce a tea with a similar flavour to teas

Maurice Worms, acquired seeds from China and planted them among

produced in China but he wrote, “I saw that I had been making the teas

the coffee bushes on their Rothschild and Sogama estates. It seems

rightly enough but as I could not get it to taste like China tea sold in the

that they also attempted to manufacture tea there but found it such an

shops, I was always varying my process and spoiling batches of tea.”

expensive venture that they decided to concentrate on coffee. Eight

In 1870, the first samples of made tea, rolled, oxidised and pan-fired

acres of land were also planted with China seed in 1864 on the Barra

by Taylor were sent for sale on the Kandy market, and three years later,

estate but were not developed until the 1880s. In his A Hundred Years

23 lb were sent to the London auctions and valued at 3s 9d per lb. In

of Ceylon Tea, D M Forrest refers to the story that James Taylor himself

March 1872, he wrote in a letter, “I have a machine of my own invention

had experimented with tea manufacture in about 1866 using leaves from

being made in Kandy for rolling tea which I think will be successful. If so,

old tea bushes in his garden, which prompted Forrest to muse, “Does

we cannot help making a profit on tea, if it grows of fair quality in this

this suggest that perhaps more of the primeval coffee-men than we now

country. The picking and gathering of the leaves and the rolling are the

realise grew a few plants round their bungalows and even plucked and

greatest expenses in the production; the rolling costs nearly as much

consumed the proceeds…?”

as the gathering.” By the end of the year he had set up a fully-equipped factory that included his roller.

It is, of course, James Taylor who features most clearly in the earliest

days of serious tea cultivation in Ceylon. Taylor was originally recruited

By now, Ceylon’s coffee crop was beginning to suffer from Hemileia

in 1851 by Messrs G & J A Hadden to work as superintendent on their

vastatrix, the Coffee Rust fungus, which was first noticed in 1869 and

coffee plantations. His first job was at Narenghena estate where he

was to bring about the downfall of the coffee plantations on the island. It

worked under the supervision of George Pride and was then transferred

was impossible for the planters to know at that stage whether their plants

to neighbouring Loolecondera, an estate that was newly planted out with

would survive or not. Some planters uprooted all their stock and planted

coffee. When Pride died in 1857, the estate was sold to Keir, Dundas &

tea bushes, cinchona, cardamom, cocoa or rubber instead; some applied

Co and one of the new owners, John Gavin, turned out to be a man with

recommended treatments and waited; some wavered between optimistic

vision and a good business head. He and the two men he handed over

expectations of recovery and despair at the rapid progress of the Rust.

A Cup of Kindness

The Story of Dilmah Tea

Taylor was still not convinced that tea would prove to be a successful crop and continued to experiment with cinchona and cinnamon. But his success with tea had been enough to instil a sense of general optimism amongst the planters so that, when it became clear by the mid 1870s that coffee was not going to survive, they turned with a fair amount of confidence to tea. A quotation from the time hints at the possibilities for the future: “Mr Taylor of Loolecondera, than whom a more intelligent practical planter does not exist, contents himself with a very moderate yield. He does not distress his bushes and he tops the market, my conviction is that he shows a larger profit per acre with his 350 lbs than others do with 600.” In 1867, only 10 acres were recorded as being under tea. By 1875, 1,080 acres had been planted. In some cases tea was planted under coffee bushes whose lower branches were chopped off to facilitate the new crop’s growth; in others, land was specially cleared to create new plantations. The preparation of new tracts of land was exhausting, physically demanding work. Elephants were employed to heave trees and tangled roots out of the way, dense undergrowth was burned, drainage ditches were dug and roads built, factories were planned and constructed, and planting areas were marked out with stakes and rope on the rough, steep ground. With the sudden increased demand for planting material, there was a shortage of seed and, when Peradeniya and Hakgala Botanical Gardens could not supply enough, more was sought from India and new companies were set up in Ceylon with the sole purpose of growing new stock. And so, the foundations were laid. By the mid 1890s, coffee had almost totally disappeared from the Ceylon plantations and, while some planters gave up in despair and poverty, others followed the example of the tea pioneers and turned their land over to tea. Old coffee factories were converted and new mechanised tea factories were equipped with rollers and roll breakers, sifters and dryers, to speed up the manufacture of the increasing quantities of leaf being harvested from the newly established plants. Ceylon had become an island of tea.

The Story of Dilmah Tea

I have a machine of my own invention being made in Kandy for rolling tea which I think will be successful. If so, we cannot help making a profit on tea, if it grows of fair quality in this country. The picking and gathering of the leaves and the rolling are the greatest expenses in the production; the rolling costs nearly as much as the gathering

A Cup of Kindness

An island of tea Ceylon’s Tea Industry

To reach the position I am in today, I had to work very hard, travel extensively, take risks, face situations which made me stronger and gave me the courage and strength to keep moving and never to yield. Above all, I believe I received divine guidance. Merrill J Fernando

and political success. The lands of the Orient were therefore not

When

the British East India Company took control of Ceylon

routes and overseas territory, and to develop industry, commerce or

from the Dutch in 1796, their concerns were much

trade for the benefit of European investors and owners. However,

the same as those that had driven them to battle for almost 200 years

treaties and agreements signed with local rulers often imposed some

with the Portuguese and the Dutch for supremacy of the high seas in their

controls and under the Kandyan Convention of 1815, the British,

quest for power and wealth. Conquered territories were seen as a source

although given power over the entire island, were bound to maintain

of land to be utilised, labour to be harnessed, and resources, crops and

the laws, customs and institutions of the Kandyan kingdom. An early

products to be plundered. Company’s directors and employees based

failure to adhere to this agreement led to an insurrection in 1817 and,

their control and governance of the land on their desire for commercial

in preparation for expected resistance or rebellion, the British built a

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generally valued as ancient, fascinating or rich civilisations whose religions and philosophies perhaps had something to teach the newcomers (although certainly in some cases - and especially in India – some Europeans did adopt the local way of life, manner of dress and even the religion) but were viewed simply as territories to be tamed and exploited. The main concern of colonialist powers was to gain control of trade

The Story of Dilmah Tea

network of roads to facilitate the movement of troops – which proved to be rather useful later for the transportation of coffee and eventually tea. Peace was reinstated and the British went on to rule the country with a more liberal and responsible approach than the Dutch had demonstrated and managed to maintain generally good relationships with all concerned. The imposition of British ways and the poorly paid use of local labour does not mean that the island of Ceylon did not benefit from the development of the plantation industry. Indeed, the expansion of the plantations brought improved infrastructure, roads and railways, the clearing of vast tracts of jungle, the construction of new towns and villages, new employment and business opportunities for shopkeepers, merchants and retailers of consumer goods, transportation companies, merchant sailors, road builders, engineers, mechanics and domestic staff. It was in some of these sectors that local investors and entrepreneurs were able to establish successful businesses as the island’s economy grew.

The Story of Dilmah Tea

A Cup of Kindness

As earlier conquerors and rulers, the Portuguese and the Dutch had already set the pattern long before the British arrived. They invested in infrastructure, recruited local labour, shipped spices, ivory and precious stones back home to Europe, deposited large profits in European banks and paid the workers in Ceylon a minimal wage.

However, while recognising and acknowledging all the benefits, it

The British Become Tea Planters

is crucial to understand that the tea industry was underpinned by

structures and systems that continued to govern the way in which

As earlier conquerors and rulers, the Portuguese and the Dutch had

it was organised in the 19th and through into the 20th century. The

already set the pattern long before the British arrived. They invested in

British inevitably replicated and perpetuated their British way of life

infrastructure, recruited local labour, shipped spices, ivory and precious

in order to both create a semblance of home away from home and

stones back home to Europe, deposited large profits in European

also to enable British commerce to grow and strengthen. Their clubs,

banks and paid the workers in Ceylon a minimal wage. When the British

commercial associations, trade bodies, banks and other institutions

wrested control out of Dutch hands, Ceylon’s cinnamon gardens were

were organised and run along exactly the same lines as in Britain. They

producing some 400,000 pounds of the spice every year – valued by the

were established and maintained to protect British interests and to

British crown at £60,000 per year. Once in control, the British decided

keep the control of Ceylon tea firmly in British hands. And this perhaps

to diversify and tried indigo, sugar, cotton and tobacco before settling

predicted and prescribed the sort of businessman Merrill J Fernando

on the idea of growing coffee and coconuts – coffee on the higher land

would have to be if he was to build, in the 20th century, a successful

and coconut in the coastal regions. They set about acquiring more

enterprise that could operate as a truly Sri Lankan company and not

land, often with a careless disregard for ancient laws which gave every

simply as a clone of earlier British companies.

Sinhalese the right to a piece of land, thus disrupting in the longer term

A Cup of Kindness

The Story of Dilmah Tea

the structure of local communities. And then they started planting. Some Sinhalese entrepreneurs (and some Indian) also purchased land as the planting areas opened up around Adam’s Peak and up at the high elevations of Dimbula, Dickoya, Nuwara Eliya and Uva. But the majority of plantations were in European, and mostly British hands. The new planters recruited cheap labour from the indigenous population but, although Sinhalese craftsmen were willing in the early stages of development to chop down trees, clear undergrowth and erect necessary buildings, once those jobs had been completed, they showed no interest in continuing to work for foreigners but returned to their villages. And so the planters, unable to recruit enough workers from within the island, sent agents to Southern India to persuade Tamil villagers to leave their homes and take up the offer of work in Ceylon. Once recruited, this migrant workforce was shipped across

The Story of Dilmah Tea

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The Story of Dilmah Tea

A Cup of Kindness

the dangerous Palk Straights and brought, in hazardous and gruelling

town to come out. It is a very small town, ours. It is St Laurencekirk,

conditions, down the North Road from Jaffna to Kandy and beyond.

Kincardineshire, with a population of about 2,000 souls, yet at one

Many died during the sea voyage and many more perished on the road

time there were as many as fourteen St Laurencekirk men in Ceylon.”

to Kandy due to disease, attacks by wild animals, lack of water and food,

And so a steady stream of tough and hard-working Scots left their

and exhaustion.

small towns in Britain and sailed out to Ceylon to grow coffee, and then tea. There were Robertsons and Macgregors, Steuarts and

The first Tamil immigrants started work in Ceylon in 1828 and were

Fergusons, Alexanders and Camerons. Plantations were given

put to constructing roads and railways and clearing jungle. They lived

names that reminded the men of home – Moray, Lochiel, Glasgow, St

in appalling conditions and were very badly paid but they continued to

Andrews, Gleneagles, and Logie. Similarly, the English planters chose

accept employment in Ceylon because it offered a better life than was

the smartest of names for their new properties – Eton, Mayfair and

possible in the rural villages of southern India. In the days of coffee, these

Kensington.

journeys were undertaken by some at least twice a year as the Tamils came to harvest the seasonal coffee crop and then went home again.

The collapse of coffee meant that many disappointed, disillusioned,

The development of the tea industry offered more permanent positions

unemployed and even bankrupt planters left the island and returned

for families who, once they had arrived, were housed on the plantation.

home to Britain. But those who stayed, encouraged and heartened by

The ‘workers’ lines’ were dismal, offering single-room, mud-floored units

the success of experiments at Loolecondera and elsewhere, somehow

that were occupied by groups of three or four ‘coolies’. In cases where

found the strength to try again, this time with tea. Some who had

wives and children had accompanied the men from India, each of the little

given up and gone home now returned, while more promising young

apartments housed one family. Although at first it was only the individual

men just out of school or the military were encouraged to try a life in

planters and their womenfolk who provided any medical care and

planting. But they had to be tough, single-minded, resilient, of robust

welfare for the employees, a network of clinics, hospitals, dispensaries,

health and determined.

and childcare units was established as an accepted necessity. Each plantation functioned as a separate, independent entity with its own hierarchical structure, its own workforce and its own care facilities. Once

The Early Tea Plantations

families had settled on a particular plantation, they tended not to move elsewhere but became part of the resident population.

Facilities on the early plantations were primitive and the lifestyle basic. Planters and managers lived in small, roughly-constructed wooden cabins with the simplest of furnishings and utilities. They were often

New Recruits from Britain

isolated for long stretches of time and had to take full responsibility for every aspect of life on the estates – overseeing the workers in field

British recruits were also sought back home to work as superintendents

and factory, mediating in any disagreements, arranging medical care

and managers, overseers and assistants. From the small town of St

when necessary, taking care of the finances and paying the wages.

Laurencekirk in Scotland, came James Taylor and his cousin Henry

If the plantation was to run smoothly, the planter was required to be

Stiven, both of whom had been signed up by Messrs G & J A Hadden.

commander-in-chief, doctor, banker, welfare officer, plantsman and

Recent school leavers with no particularly bright prospects on the horizon

policeman all at the same time. During the change from coffee to

at home, they were typical of their age group and their social group. We

tea, money was often in short supply, making day-to-day life even

learn from the Times of Ceylon in 1907 that a certain Mr Peter Moir “....

more difficult and challenging. However, as the plantation industry

had come out to Ceylon in 1843. He was manager to Messrs Hadden’s

developed and prospered, the superintendent or planter usually

properties out here, and enticed a lot of young people from our small

acquired an assistant, an apprentice and a local supervisor known

A Cup of Kindness

The Story of Dilmah Tea

as a ‘kangany’ who recruited labour and then managed the workforce so that the planter or superintendent had little more to do with his Tamil employees. If housing for planters and employees was of the most basic kind, so too were the early tea factories. As William Forsythe explained in his Memoirs, “The first low-country tea houses had to be seen to be believed! They consisted of wattle and daub walls, cadjan roofs, mud floors and a few chulahs (open stoves), with grooved tables for hand rolling …”. Ceylon tea factories gradually developed a quite distinct form and shape. Whereas factories in Assam had been built with withering sheds, or ‘leafhouses’, separate from the actual factory, in Ceylon, two or three floors of withering troughs were placed above the processing area on the ground floor. One reason for this particular Ceylon style was the lack of suitable space for large buildings. Another was the fact that the coffee factories which had been converted to tea were often positioned close to streams and rivers where power could be generated. The cool damp air close to the ground was unhelpful to the withering process and so extra floors were added to accommodate the withering areas. Once this format had been established, most Ceylon factories were built in the same style. When the leaf had been gathered by the pickers, it was brought into the factory, carried up to the withering floors and spread out thinly on ‘tats’ – wooden structures with jute hessian stretched across them – for between 18 and 24 hours. The withered leaf was then sent down shoots to the rolling room on the ground floor. Before the introduction of mechanical rollers, the leaf was rolled by hand – a “laborious and somewhat disgusting operation”, according to Frederick Lewis in his Sixty Four Years in Ceylon, “after which it was thinly spread over shallow calico-bottomed trays, that

The collapse of coffee meant that many disappointed, disillusioned, unemployed and even bankrupt planters left the island and returned home to Britain. But those who stayed, encouraged and heartened by the success of experiments at Loolecondera and elsewhere, somehow found the strength to try again, this time with tea.

were placed on the tops of what looked like inverted hollow pyramids, the apex of which was filled with live charcoal”. Once machinery had been introduced to make the job easier, the leaf from the roller was shaken to break it up and then spread out on fermenting beds, made of smooth concrete, to oxidise. The charcoal stoves referred to by Lewis were gradually replaced with firing machines or driers that circulated the tea on a series of wire trays over a current of hot air. After sorting into different leaf sizes, the made black tea was ready for shipment to London.

The Story of Dilmah Tea

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The Story of Dilmah Tea

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The Story of Dilmah Tea

With a growing number of companies that had investments in the plantations and an increasing quantity of tea being offered for sale, various official bodies and organisations were set up to represent the interests of those involved.

Managing the Industry

and smooth functioning of the plantations and the disposal of the crop through a network of brokers, wholesalers and shippers. Although

Most of the land acquired by the British for planting at the beginning

their principal role was to supervise the estates and facilitate the sale

of the 19th century was mostly purchased by employees of the East

of the crop, agency houses often also offered banking facilities and so

India Company, by government representatives and officials, or by

employed ‘Visiting Agents’ whose job it was to value properties and

adventurous speculators – both companies and private individuals -

assess how much money might be loaned to an owner to help with

who recognised the future potential of the island. The companies that

the development of an estate. Sir Thomas Villiers described the work

owned the tea estates were registered as sterling companies based

of a Visiting Agent as “not so much to advise on the management

in London, or rupee companies based in Colombo. They were either

and cultivation of the estates but to estimate the amount of credit

partnerships or joint stock limited liability companies that had interests in

that could be given to the proprietor. Estates were also constantly

various concerns across a number of industries – in rubber, cotton, jute,

changing hands, and the Visiting Agent was called in on behalf of the

shipping, sawmills, copper and engineering. When money for investment

vendor or the purchasing party to value the property”. As this network

was needed, funds were sought from private individuals, family members,

of facilitators grew, the agency houses often represented more than

friends, tea merchants and other planters. If yet more cash was needed,

one planter or group of planters, thus creating an even more tightly-

more shares were offered to existing investors rather than raising capital

closed circle of controlling influences. And those controlling influences

by floating on the stock market, and so the tea companies remained in

were almost entirely British.

the same hands of a relatively small group of people who worked closely together to control their interests.

With a growing number of companies that had investments in the plantations and an increasing quantity of tea being offered for sale,

Given the vast distance between their offices in London and the estates

various official bodies and organisations were set up to represent

in Ceylon, and with little or no experience or understanding of the crops

the interests of those involved. In 1854, the Planters’ Association

being grown or indeed of plantation management, a third party was

(generally referred to as the PA) was established to represent the

required to manage the day-to-day running of the business. And so

planters and fight for the things they needed the government to do

the agency houses were born, staffed by particular individuals who had

to support the industry - build roads and railways, impose taxes,

already had dealings with producers and traders and who knew how

control imports of tea from China and India, and allow the importation

the plantations operated and understood prices, transportation and

of foreign labour. The PA had the right to nominate a member to the

shipping. These men offered the skills needed to ensure the profitable

Legislative Council and used every opportunity to act effectively as

The Story of Dilmah Tea

A Cup of Kindness

a pressure group for tea. In 1888, the Ceylon Association in London (CAL)

appealed to many and the number of banks, brokerages, shipping

was established for the “protection and furtherance of the general interests

companies, importers and transport companies grew rapidly and made

in Ceylon”. In 1894, the Colombo Tea Traders’ Association came into being

money for both foreign and Sinhalese investors.

with the purpose of promoting “the common interests of sellers and buyers of tea in the Colombo market”. And the Ceylon Estate Agents’ Association, set

In 1890 a new personality arrived on the Ceylon tea scene and he was

up in 1913, gave way in 1921 to the Ceylon Estates Proprietary Association

to bring Ceylon tea to the notice of the British public in a way that no

which was so powerful that it too gained the right to send a member to the

other grower, retailer or promotional body had ever done before. Before

Legislative Council. The existence and power of these bodies highlights the

he set foot on the island himself, Thomas Lipton, successful grocer and

way in which the Ceylon tea industry was run in very close collaboration with

publicity genius, secretly sent his agent to assess the possibilities of

the British government of Ceylon and with the London trade. The structure

buying land for tea growing in Ceylon. He told his friends and business

became such an established and powerful part of the tea trade that it was to

colleagues that he was setting off for Australia to explore business

continue for decades and was difficult to change later, even after Ceylon had

possibilities there but in fact, when the passenger steamer on which

gained independence from Britain.

he was travelling docked in Colombo, he disembarked and set about the business he had come for – that of purchasing tea estates. He planned to offer the public cheaper tea that he had grown himself on his

The Expansion of the Industry

own estates, instead of having to buy through an expensive network of brokers and middlemen. He bought four plantations almost immediately

Between 1882 and 1886, more and more land was purchased, more and

and several more soon after, and started growing and selling tea direct

more seed was propagated for new stock and Ceylon truly became a tea

to the consumer in Britain at a price well below the average, publicising

producing country. As the newly established plants started yielding more leaf

his Ceylon tea with the now famous slogan, “Direct from the tea

in the latter part of the decade, planters developed the idea of sharing factory

garden to the teapot”. He avoided the middle men; he side-stepped

facilities for processing it. Sometimes three or four estates sent their freshly

the auctions; he simply grew the tea and marketed it through his vast

harvested tea to one central factory. This made economically sensible use

network of family grocery shops. However, his plantations could not

of the expensive new machinery that had been manufactured in Britain and

produce nearly as much tea as he needed to meet demand and so, like

shipped in by companies such as Marshall of Gainsborough, Davidson of

everyone else, he found that he had to blend his ‘pure’ Ceylon tea with

Belfast or John Walker & Co. As their new inventions made the tea factories

teas from India. But, for many people, Lipton became synonymous with

more viable and as the amount of tea being produced increased, the

Ceylon tea and, already a millionaire from his chain of grocery shops, he

industry needed new structures and systems to cope with the manufacture,

became a multi-millionaire through his tea business.

transportation, storage and selling of tea. And with prices rising and the

demand for tea in Britain and elsewhere growing, those engineering firms

By 1900, the area under tea on the island had reached 387,000

were just one business sector that grew as a result of the burgeoning Indian

acres and total exports steadily rose – 151,011,454 pounds in 1903,

and Ceylon tea industries. The idea of investing in this thriving new sector

158,183,330 pounds in 1904, with most of that going to Britain. By

A Cup of Kindness

The Story of Dilmah Tea

1929, with improved cultivation and manufacture and a more scientific approach to planting and plant husbandry, exports had increased to 251,588,012 pounds of tea which earned a little under £15.5 million sterling. But exports of teas to London had in fact started very slowly. In 1873, James Taylor sent 23 pounds; in 1875, two boxes were shipped to London (and two more to New York); in 1876, 240 pounds were listed amongst sundry exports; in 1878, quantities started building and at the London auction, 10 chests were sold for “fairly satisfactory” prices. And, there had been little excitement at first. The London brokers wrote such comments as, “the quality of the liquor somewhat dull and capable of improvement”, and “the liquor though of good strength lacks flavour”. Some did not find it to their taste and compared it to Indian teas, not yet aware perhaps of the differences that growing conditions, altitude and climate can make to the character of teas from different origins. In

As the newly established plants started yielding more leaf in the latter part of the decade, planters developed the idea of sharing factory facilities for processing it. Sometimes three or four estates sent their freshly harvested tea to one central factory. This made economically sensible use of the expensive new machinery that had been manufactured in Britain and shipped in by companies such as Marshall of Gainsborough, Davidson of Belfast or John Walker & Co.

1884, only 2.5 million pounds of tea from 135 estates were auctioned in London, but with major successes for Ceylon teas at international trade fairs and exhibitions in Melbourne and Calcutta, interest in London picked up and by 1887, 15 million pounds were shipped into London. With the demand for tea in Britain growing due to a reduction in the tea tax and the rising popularity of the beverage amongst all classes, Ceylon teas began to make their mark and started fetching much higher prices. With so much tea now being offered for sale, and more than 90% of it going to London, it was recognised that Colombo would have to establish London style tea auctions to handle at least some of the tea being produced. The first of these was held on 30th July 1883 at the offices of Somerville & Co, one of Colombo’s leading tea brokers. Put up for sale were 5 separate lots of tea - one lot of 999 pounds of teas from Kabaragalla, three lots from ‘Agars’ land’ and four quantities of tea from Ooodawarra. At the end of July that same year, one auction offered 14 lots and gradually the number of lots and the variety of leaf grades increased. The auctions continued to be held at the premises of

The Story of Dilmah Tea

A Cup of Kindness

The Story of Dilmah Tea

A Cup of Kindness

the broking companies but by 1894, they were being regularly held

promotion of Ceylon tea. At exhibitions in London, Liverpool, Glasgow,

at the Ceylon Chamber of Commerce. Those in attendance each

Brussels, Melbourne, Paris, Chicago and Russia, Ceylon tea played a

week included brokers, representatives of the agency houses, and

prominent role. It was served in restaurants, small packets of it were

buying agents for wholesalers and packing companies in Britain and

given away, and mini model factories were set up to explain to the public

elsewhere. In 1891, the United Kingdom Tea Company of Mincing

how the tea was made. To raise the public’s awareness further, royal

Lane purchased a consignment of tea from Gallebodde Estate and

personalities were presented with gifts of tea, the thirst of the German

declared it “the finest tea ever grown”.

army was quenched by cups of Ceylon tea, and grants were awarded in the US, New Zealand, the Argentine Republic, Germany, Tasmania, Russia, Sweden, Canada, Switzerland, Austria, Indian and Africa to any

Promoting the Product

merchant who agreed to sell only pure Ceylon tea. In the City of London, some companies set up tasting rooms where Ceylon tea was served

Tommy Lipton was not alone in running advertising campaigns to

every afternoon, and in 1893, J Lyons agreed to serve Ceylon tea at the

publicise Ceylon tea to the wider world. The planters themselves

Imperial Institute in London at the price of 3 pence a cup. In 1891 a tea

took every opportunity to advertise their new product, offering it to

kiosk opened at the Colombo Passenger Jetty and ran for 9 years. In

friends and family, colleagues and work associates in their attempt

1894, Ceylon considered joint promotions with India and in 1896, the two

to raise awareness and create a demand. They discussed the need

countries collaborated in placing advertisements in 28 newspapers. By

to advertise both in Britain and in the newer markets of Russia,

1904, India and Ceylon were jointly sponsoring a three-year promotional

Canada and America. They tried, without success, to persuade the

programme in the North American district of St Louis.

government to fund a Ceylon Commissioner to represent them at the 1879 Sydney Exhibition, but Ceylon tea was well represented at

Dilmah today sells large quantities of tea to Russia and the important link

both the Melbourne International Exhibition in 1880 and at Calcutta

between the two countries was established in the mid 1880s when the

in 1883. From 1883 to 1886, the government gave greater financial

Ceylon planters recognised the potential there. Russia was for decades

support and in 1886, the Planters’ Association set up a voluntary Tea

the third largest consumer of black tea (after the UK and Australia) and in

Syndicate Fund in order to raise money to pay for the distribution of

1886 a certain Mr G H D Elphinstone, Scottish planter and promoter of

free samples of tea to traders in the US, Canada, Australia and New

Ceylon tea, went to Russia to assess the potential for promoting Ceylon

Zealand.

teas for the Russians to brew in their samovars instead of the black China teas they had traditionally purchased. Trade with Ceylon did grow but

At this point, H K Rutherford, of Mariawatte Estate took on the role

only slowly and by the turn of the century the Russians were still importing

of chief publicist for Ceylon tea. He urged the planters to promote

the vast majority of their tea from China – 119 million pounds in 1901,

their teas at the 1888 Glasgow Exhibition and suggested a voluntary

whereas imports from Ceylon amounted to only 18 million. By 1910,

tax of 1 rupee per 1000 pounds of tea to pay for such advertising

Ceylon tea imports had risen to 19.5 million but the Russian Revolution

and representation. In 1892, his idea of imposing an export tax to

of 1917 put paid to any further development when the Russians started

pay for promotion at the Chicago World Fair led to the government’s

growing their own tea around the Caucasus. It was not until the late 1950s

introduction in 1894 of the first ‘Propaganda Cess’ and the

that Russia once again started buying from Ceylon, dealing directly with

establishment of a committee, made up of 24 planters and 6 members

Merrill J Fernando who was by then working in the Colombo tea trade.

of the Ceylon Chamber of Commerce, to act as the official body for the

A Cup of Kindness

The Story of Dilmah Tea

A Cup of Kindness

The Story of Dilmah Tea

A Cup of Kindness

Although all tea manufactured in Ceylon up to this point had been black,

had recognised the need for soil analysis, a study of the chemistry

a decision was taken in the late 1890s to also manufacture green tea to

of tea, and the control of pests, blight and other plant diseases. In

meet the perceived demands of the North American market. In 1903, 7

1923 came the suggestion for the establishment of a tea research

million pounds of green tea were exported but demand was limited and

station in Ceylon and in 1928 the Tea Research Institute of Ceylon

quantities rapidly declined while exports of black tea steadily increased

was set up at St Coombs in Dimbula with a loan of Rs 1 million from

(Ceylon actually went on producing green tea until 1936, with its main

the government. In its quest to produce consistently better tea, the

customers in Russia, India and the US). Arguments and discussions

Institute has subsequently led the field in the vegetative propagation

persisted about the imposition of export and import duties and the use of

of new plants and in its work against plant disease.

resulting funds to sponsor promotional campaigns, but there was never enough money to run a sustained and effective campaign. By 1914 this

In the early 1930s, world overproduction of tea caused a further slump

lack of finances meant that all publicity and promotional activities had

in prices and the International Tea Restriction Scheme was introduced,

dwindled.

limiting production and exports from Ceylon. Although originally intended to last only 5 years, the scheme was kept in place until 1955. Tea prices remained low through the post war years and, with the

From World War I to Independence

threat of world depression and a surplus of poor stock widely available to the consuming public, the Ceylon planters decided that a sustained

The outbreak of World War I in 1914 brought new concerns. For the first

programme of publicity was essential if the tea-drinking world was

three years of the war, the planters were free to continue their business as

to sit up and take notice of Ceylon tea. In 1932, the government,

usual but in 1917, the government in London took control of imports and

the Planters’ Association and other concerned bodies (including the

prices of all tea going into Britain. And even though business returned

Ceylon Estates Proprietary Association, the Low-Country Products

more or less to normal once the war was over, with a record 140 million

Association and the Colombo Tea Traders’ Association) set up the

pounds of Ceylon tea arriving in London, problems at docks and depots,

Ceylon Tea Propaganda Board and appointed Gervas Huxley as their

and a surplus of government-controlled tea readily available, tea prices

Colombo-based Chief Commissioner. He travelled to Kenya, India and

in general fell and Ceylon teas no longer fetched the high prices they had

South Africa to discuss the possibilities of working together and then

enjoyed before the war. Voluntary controls on production were suggested

coordinated work in London with the newly set up Empire Tea Growers’

but not implemented, and the idea of scientific research with the aim of

Campaign. The Ceylon tea growers had already seen how well their

improving tea quality in the longer term was discussed as a possible

teas sold in markets outside Britain and so more commissioners were

answer to failing markets. Ever since James Taylor’s day, the planters

appointed for North America, Canada, Australia and New Zealand.

A Cup of Kindness

The Story of Dilmah Tea

Then in 1935, a new body, the International Tea Market Expansion Board, was set up to promote all tea from around the world rather than particular teas from just a few countries. And, while the Ceylon planters were again worrying about the promotion of their own teas, war intervened yet once more and destabilised world markets. Plans for advertising were pushed aside, controls over shipping and exports were immediately put in place, and the Ceylon industry concerned itself with supplying tea to the armed forces around the world and to those stationed in Ceylon as part of the Allied war against the Japanese. During World War II, the majority of Ceylon’s crop was sold under contract to the British government for a price fixed by them based on the individual estates’ average prices. The auctions were suspended from 1942 to 1947 and the brokers based in Ceylon were employed by the British government to inspect and value all the teas sold in Colombo. Once the war was over, other more pressing issues became important in the tea industry and in the wider community. There was growing disapproval for the way in which the majority of the profits earned from tea went into foreign pockets and did not benefit Ceylon. The question of landlessness had also been a suppressed issue ever since the early days of coffee planting. Vast tracts of land had been taken over and developed as plantations, ignoring and destabilising the traditional systems of land ownership. The more land was planted with coffee and later tea, the less land there was for the native people and the more families found themselves landless. These worries and concerns began to ferment and bubble to the surface, political pressure steadily strengthened and the movement for independence gained momentum. On 4th February 1948, Ceylon gains independence from British colonial rule.

The Story of Dilmah Tea

A Cup of Kindness

Independence! For Ceylon and for Merrill J Fernando The tea industry was subject to absolute exploitation via regulations of the British dominated Colombo Tea Traders Association (CTTA), shipping cartels, freight rates fixed to make value added tea exports far too uncompetitive, and numerous other restrictions aimed at protecting vested interests. They were harmful to local traders as they placed severe restrictions on their progress. I could not accept many of these. I was identified as a rebel. As I was running my own small business, I was the victim of all the rules and regulations which only benefited foreign trade interests. I created awareness of them 66

A Cup of Kindness

by recording my protest fearlessly. It was during this period that I acquired trading disciplines, knowledge and experience about tea and the industry, its weaknesses and shortcomings that the trade and government failed to recognise. Merrill J Fernando

Although

Ceylon gained its independence from the British in 1948, the tea industry

continued along much the same path as before. Roughly two thirds of the sector was owned and controlled by sterling companies based in the UK and, as well as the actual growing and manufacturing of tea, the majority of the related activities of buying and selling, storing, shipping, blending, packing, banking, insurance and retailing were in British hands. Several of the largest tea companies (Brooke Bond, the Co-operative Wholesale Society, Lipton, etc.) now had interests

The Story of Dilmah Tea

in the island’s tea industry and the structures had changed very little since the first Ceylon tea was exported to London 75 years before. Tea was the backbone of the country’s economy and provided, both directly and indirectly, employment for almost a million people. It was the largest earner of foreign exchange. But with the trade still in the hands of foreign, mainly British owners and investors, the profits from the tea industry were reaching bank accounts and pockets outside Sri Lanka rather than benefiting the newly independent country. And this continued well into the 1960s and inhibited essential changes in the Ceylonese economy. In their determination to keep control for themselves and with the usual arrogance displayed in so many similar colonial situations, the British tea planters had run their business rather like a club with limited membership. No Ceylonese had ever been allowed to train as a tea taster. Those jobs were for ‘members’ only! The locals were allowed to work as recruitment agents or factory managers but, despite persistent requests by the Ceylon government to the foreign companies to train local tea professionals, the skilled jobs were closely and jealously guarded.

The Story of Dilmah Tea

A Cup of Kindness

However, it must be remembered at this stage that some local planters

structures set in place by the British had to change if Ceylon was to

had been active, alongside the British and other foreign investors,

be allowed to develop as a truly independent state. One of those new

in buying land and in developing Ceylonese-owned tea estates –

Ceylonese was Merrill J Fernando.

particularly in the low country. While the British had focused their energies on the higher regions, the locals had concentrated on the

As a young man in newly independent Sri Lanka, Merrill knew that he

coastal areas where rubber and coconuts were grown alongside tea.

could not expect life in the tea trade to be easy. He knew that he would

Indeed, it has been suggested that without the early pioneering work

have to develop a new strategy if he was to break into a world that had

of those enterprising local planters, the important lower altitude areas

a long history as a British institution; he understood clearly that new

of the island may well never have been developed agriculturally. To

approaches and smart techniques would be needed and that risks would

represent the interests of these local tea producers, the Low-country

have to be taken; he also knew that he must stick unwaveringly to his

Products Association was formed in 1909 by Ceylonese planters and

principles.

businessmen and included amongst its members the man who was to become the first Prime Minister of Sri Lanka, Don S Senanayake. So, although the majority of the industry was owned and controlled

MJF Starts Trading

from London, it was not unheard of for Ceylonese businessmen to also be involved and to be very successful.

Born in May 1930, Merrill was just finishing his education as Ceylon was gaining independence. He had developed an interest in the tea industry,

During the lead up to Independence, there was a growing understanding

was determined to make this his profession and, when in 1950 the then

in Ceylon of the way in which colonial powers controlled their under-

Tea Commissioner, Mr P Saravanamuttu, eventually persuaded the British

developed colonies both politically and financially, and an increased

to train young Ceylonese tea tasters, Merrill joined the first group of six

awareness of how the world in general, and Ceylon in particular, was

apprentices. To support himself during this training period, he established

divided into ‘haves and have-nots’. Independence brought a series

a small local business supplying bulk tea to retail shops and restaurants

of policies that aimed to ‘Ceylonise’ employment, ownership of

in and around his home town of Negombo. He purchased his supplies

land, trades unions, banking and investment, but continuing foreign

from North Meddeloya Estates, owned by his good friend and wonderful

involvement in the plantation industry hampered this. Some of the

person, the late K R Mathavan, with the help of their mutual friend, Michael

local elite clung to the British ways, maintained established systems

de Silva. He also bought from private auctions. He paid around Rs 2.00

and perpetuated colonial attitudes. But a few of the newly independent

per pound for his purchases and made profits of about 20 cents a pound

Ceylonese knew that the economy of the island depended largely

to pay off the instalments on a brand new Morris Minor car. His marketing

on the plantation sector and recognised the dangers of a prolonged

strategy – and it is one that has underpinned his career in tea – was to

dependence on the London market. They understood that the basic

only sell carefully selected, good quality tea and to stress its freshness

A Cup of Kindness

The Story of Dilmah Tea

and quality to his customers. Clients in those early trading days quickly switched from the more ordinary teas they had previously been buying to the reliable and consistently high quality teas offered by Merrill. Despite having successfully completed his training as a tea taster, despite his early financial achievements and his very useful experience in the trading of tea, and despite Sri Lanka now being in control of its own destiny, Merrill could not find a way into the British-controlled tea industry. It was still closed to locals. Instead he took a job with an American petroleum company but continued to look for an opening in tea. Finally he was offered a job with A F Jones, a British, family-owned tea company, who took him on as a tea taster. A year in London, during

A year in London, during which he trained with tea wholesalers, Joseph Travers & Sons, gave Merrill a thorough understanding of what happened to tea from different origins once it arrived in the London warehouses. He discovered how price counted for everything, how quality had subsequently dropped and how cheap teas from several origins were blended together...

which he trained with tea wholesalers, Joseph Travers & Sons, gave Merrill a thorough understanding of what happened to tea from different origins once it arrived in the London warehouses. He discovered how price counted for everything, how quality had subsequently dropped and how cheap teas from several origins were blended together but then marketed to an unsuspecting public as single origin teas as, for example, ‘pure Ceylon’ or ‘pure Darjeeling’. He recognised that if the major packers and blenders were so strongly influenced by price, the future of the Ceylon tea industry was at risk, for those large, influential companies would and could easily source cheaper teas from other producing regions such as Africa and Indonesia, and turn their backs on quality Ceylon teas. And so, Merrill decided that his approach, the approach of the Ceylon tea industry and the methods of marketing and selling Ceylon tea would have to change radically if the island’s tea industry was to survive. But, over the years that followed, Merrill had to contend not simply with outmoded systems within the trade, and with shifts in world markets and consumption patterns, but with major political changes within Sri Lanka itself.

The Story of Dilmah Tea

A Cup of Kindness

The Story of Dilmah Tea

A Cup of Kindness

It was common practice in my small business to ship out over the weekend most of the tea I had purchased at the Tuesday auction. Such service was unknown in the trade but my employees believed it was the right way to do things and performed their duties as if they were working for themselves. Such was their loyalty and dedication that they helped me to establish a very strong, successful business. They shared the stress and pressure of work and every one of them performed well above and beyond the call of duty. We cared and we shared!

Changing the Systems

agents in Ceylon to service their business. Understandably, this made me very unpopular with those who were affected by my activity.”

After his year’s training in London, Merrill returned to Colombo in 1955

But those companies liked working with Merrill and his team simply

and continued his employment with A F Jones. In 1958, he was made a

because they were helpful and efficient. “It was common practice in

director and when his British colleagues decided to pull out of Sri Lanka

my small business to ship out over the weekend most of the tea I had

and return to London, he was able to buy the company with two friends.

purchased at the Tuesday auction. Such service was unknown in the

In 1960, he became Managing Director and expanded the company’s

trade but my employees believed it was the right way to do things and

business selling bulk teas, breaking into new markets, while increasing

performed their duties as if they were working for themselves. Such

exports to existing markets. A F Jones had for many years enjoyed strong

was their loyalty and dedication that they helped me to establish a

business links with Iran, Iraq and Libya while developing good exports to

very strong, successful business. They shared the stress and pressure

the UK, USA, Japan, Hong Kong and South America. Their weekly orders

of work and every one of them performed well above and beyond

were promptly and efficiently shipped out.

the call of duty. We cared and we shared!” Merrill took risks that the older established companies were never prepared to take and this

The company’s reliability, emphasis on quality and attention to detail

sometimes caused him problems but, despite criticism and efforts

meant that it grew at a time when others were struggling to retain their

by some competitors to discredit him, he stuck to his principles and

customers. Indeed, some of the multinational companies, with their own

proved himself to be a shrewd and determined trader.

offices in Colombo, often purchased substantial quantities of bulk tea

from A F Jones, as Merrill explained: “I was singularly fortunate in breaking

Merrill also managed to develop a very good working relationship

into major international packers and blenders directly or via agents,

with the Russians soon after the establishment of diplomatic relations

despite the fact that they operated their own offices or had exclusive

between Sri Lanka and the USSR. The Russian Embassy was

A Cup of Kindness

The Story of Dilmah Tea

established in Colombo in 1957, and in 1958 Merrill was invited to assist the Russian Trade Commissioner and a tea taster from the commercial division of the Embassy to set up a Tea Tasting laboratory prior to their entry into the tea auctions. Once this had been achieved, almost every company in Colombo tried to win the contract to supply tea to Russia, but it was A F Jones that was awarded the business and Merrill considers this to have been his greatest achievement in the bulk tea business. An exclusive deal made him the first to export tea to Russia since ties had been severed between Ceylon and the Bolsheviks in 1917 and Russia has continued to be a very important part of Merrill’s business operations. His close friend, the late Senator Sarath Wijesinghe, Deputy Finance Minister and a very prominent businessman, and the late Senator S Nadesaan, a well known lawyer, were largely instrumental in securing this business. In 1962, following a dispute with one of his partners, he walked out of a Board meeting and quit A F Jones, leaving his investments and some funds behind. That experience taught him the greatest lesson of his early business career. He pondered for a while and then returned to his favourite hobby – selling tea! To assist him, his good friend, the late S I Jaferjee, very kindly offered the use of the facilities of his family’s

The Story of Dilmah Tea

A Cup of Kindness

company. S I Jafergee and his brothers were all extremely kind and Merrill remains very grateful for their assistance in his hour of need. Two years later, Merrill moved into his own premises and established his own business under the name Merrill J Fernando Co. Ltd. Through his determination to prove that a Ceylonese Tea company could succeed, and by judiciously using the goodwill shown him by a few important public officials who understood his mission, his new company began to grow in strength and he clung to his dream of building a brand name of his own. Merrill began to consider the possibility of packaging ‘value added’ teas in Colombo rather than simply exporting chests of bulk tea. Up to now, all the teas exported from Ceylon, India and other tea producing countries were shipped in bulk to the consuming countries where they were blended, packed, branded, retailed and sometimes re-exported. If the raw material was readily available at lower prices elsewhere, he knew that the buyers would easily switch allegiance to other origins. Some of the largest of the British tea companies already had interests

A Cup of Kindness

The Story of Dilmah Tea

in Africa and would not continue to purchase from Ceylon if prices were

higher than on bulk teas and any profit in sales would be absorbed by

high. With supermarkets growing in influence and small family shops

the higher fright costs and this was a deterrent to developing value

beginning to disappear, the price of tea was dropping even further as

addition to tea in Ceylon. So he went to see the Minister of Trade and

stores offered cheap products such as tea as loss leaders. And, even

Commerce, Hugh Fernando (who had taught Merrill at school and was

though consumers were still buying what they thought was ‘Ceylon’ tea,

now in the government) and urged him to appeal to the shipping cartels

the blend in the packet was far more likely to contain other teas from other

to reduce the rate. The Minister knew that the shipping companies

origins such as Africa, Indonesia, China and India. Merrill understood

would drag their feet and perhaps never agree to a reduction. Instead,

that if Ceylon tea producers simply went on offering bulk teas that were

he agreed to reduce the export duty on value added packets by 15

expensive, gradually they would find that they could not sell their teas and

cents in the pound. The Colombo Tea Traders’ Association and the

their industry would collapse. The drift towards mass market commodity

shipping companies (working together to protect their own vested

tea had begun and quality was beginning to fade away.

interest) immediately raised the freight rate by a further 15 cents per pound, thus forcing Merrill to abandon his plans to pack Ceylon teas

The answer, he thought, was not to continue selling chests of bulk loose

at source. But he did not give up. He simply bided his time. “My failure

teas but to also start packaging high quality, 100% pure tea at the source

to correct the freight rate imbalance inspired me to look seriously at

and to export the value added tea in packets that were ready to stack

moving away from bulk teas to value added teas – this became my

on the supermarket shelf. As he had customers in Australia who were

dream. I committed myself to developing a suitable infrastructure for

interested in importing packaged tea, he decided to press ahead with the

value added exports.”

project. But the freight charge on packeted tea was 15 cents per pound

The Story of Dilmah Tea

A Cup of Kindness

Control of the Shipping Lines

turned down and we remained impotent. Finally the cartel was broken by a government official, the late P B Karandawela, Secretary, Ministry

But Merrill had to endure other injustices and imbalances. His spat with

of Shipping, who had the courage to do something that should have

the shipping companies highlighted the way in which the old systems

been done years before.” Merrill made up his mind that the situation

continued to allow an unfair advantage to British or foreign owned

must change. He went back to Hugh Fernando, explained how serious

companies and worked against Ceylonese enterprise. The British

the situation was and managed to gain the support of the Minister who

companies still controlled the shipping of tea very tightly and Ceylon’s

subsequently ruled that all teas shipped to London must be carried

own shipping lines were not permitted to carry any tea at all. Ceylon was

by local shipping companies and not by the UK Ceylon Conference.

exporting between 70 and 80 million kilos of tea direct to the London

It was a bold step and one that caused shock and outrage in both Sri

auctions every year and every single gram of it had to be carried on

Lanka and London. Other Ceylonese could not believe that Merrill,

ships owned and run by the UK Ceylon Shipping Conference. Ships on

with the support of key politicians, was prepared to ‘upset the apple

the outward journey took tea and other produce to Britain, and ships

cart’, and many of his friends turned against him, convinced that this

sailing back to Colombo brought plantation supplies such as fertiliser

change would mean that Sri Lanka would no longer be able to export

and machinery. These conferences had been formed during colonial

her tea. But Merrill was unmoved. To him it was utterly wrong that

days and prevented other companies from trading, not just in Ceylon

Ceylon’s ships were not allowed to carry Ceylon tea. And he was

but in other countries too. The Ceylon Shipping Lines, with the Ceylon

right to stay firm. In the end, the National Carrier was allowed to join

government as the major shareholder, simply could not carry Ceylon’s

the Conference and Ceylon tea continued to reach the international

own tea. In order to research the situation further, the government set

markets on Ceylon’s own ships.

up the Ceylon Shipping Enquiry Commission in 1958 but the Ceylonese members of the group could not agree with the foreign experts (who, not

Having won the shipping war once, Merrill took on the major shipping

surprisingly, reported that they felt that Ceylon was not yet economically

lines again later in the 1980s when his business with Australia was

stable enough to be able to support her own merchant fleet) and so the

building. The only two Australian Ceylon Conference shipping lines

establishment of a Ceylonese Shipping Corporation was postponed until

authorised to carry tea were P & O and Nedlloyd and their ships did

1971. And, although the Ceylon Shipping Lines managed then to extend

not sail on a regular basis. This meant that cargoes sat in expensive

their business into ship-broking, they were still not allowed to carry tea.

warehouses for anything up to three months, accumulating interest charges and, in the case of tea, losing freshness and quality. Merrill

Merrill was angered and frustrated by the fact that the government was

could not afford to have his tea sitting around for three months and

listening more closely to ‘foreign experts’ than to local professionals and

his customers could not afford to wait – they wanted their deliveries

that the restrictive practices were holding local businesses back. “I was

every month. And while the international lines sat idle in port, he knew

incensed at the plight of the national shipping line owning ships but not

that vessels from the French shipping company, Messagerie Maritime,

allowed to carry our own cargo because it was not a member of the

sailed through Colombo every fortnight on their way to Australia. But,

Conference line. Repeated applications to join the Conference were

not being part of the Conference, they carried no tea when they sailed out. Merrill knew that if the Australians could not get their tea from

A Cup of Kindness

The Story of Dilmah Tea

Ceylon, they would buy more and more from Indonesia whose ports had regular sailings to all destinations in Australia. The British remained unconcerned while Ceylon’s exports to Australia were dwindling. After a long fight, Messagerie Maritime vessels were permitted to load up to 250 tons on each sailing from Colombo. This should have helped the smaller companies like Merrill’s, but instead, the larger companies now booked the entire space on board Messagerie ships, thus shutting out the smaller companies. So, having done the groundwork and having successfully influenced the government and other bodies to change the rules and regulations, it was not Merrill who benefited but the big powerful companies. They would sometimes book their entire space allocation but then fail to use it at the last minute – too late for smaller consignments to be loaded. This was a game of tactics calculated to block the smaller local traders. But Merrill persisted, used his well wishers to prevail on shipping agencies to respect the needs of small shippers by allocating space on board for small consignments of 40 or 50 tons. As in all the situations where he saw injustice, Merrill simply refused to give in. He fought “tooth and nail” until the situation was resolved.

The Colombo Tea Traders’ Association (CTTA) had been created by the British in 1894 to protect the interests of both planters and exporters and, until the 1960s, remained heavily dominated by British interests. The Ceylonese traders had to accept this situation without making any attempt to change the balance of power.

The Ceylonisation of the Ceylon Tea Trade As a young trader with very strong views about the Ceylon tea industry and its future, it was inevitable that Merrill became actively involved in some of the trade bodies operating in Colombo. The Colombo Tea Traders’ Association (CTTA) had been created by the British in 1894 to protect the interests of both planters and exporters and, until the 1960s, remained heavily dominated by British interests. The Ceylonese traders had to accept this situation without making any attempt to change the balance of power.

The Story of Dilmah Tea

A Cup of Kindness

Two or three members, including Merrill, began to realise that things

Just as the Ceylon tea trade was learning to take charge of its own affairs,

could not go on as they were for very much longer. The first rebellion

so the Associations and Committees that governed it were also maturing

came when the Muslim tea trading community requested that the tea

and becoming more independent. But the new controlling group had to

auction be held back by a few hours so that its members might be free to

take care. Behind the scenes, the plantation owners with tea to sell went

fulfil their religious duties on the day of Ramadhan. The British refused the

on calculating and manoeuvring to regain some of their lost power. In 1969,

request and emotions ran high. A secret decision was taken among the

an unusually large number of plantation companies in the Whittals Group

non-British members to vote the CTTA committee out at the subsequent

applied for membership to the CTTA and Merrill, being the most outspoken

AGM, which preceded the election of a new committee. Two prominent

of the existing members, objected. He pointed out that the producers’

members of the Muslim community in the trade, Abbas Akbarally and

interests were well looked after by the Planters’ Association and, although

Amin Suby, convinced Merrill of the need to change the committee

the CTTA had been established to protect both buyers and sellers, it would

so they worked together to achieve this objective. Accordingly, a new

be unacceptable to allow the membership to number more sellers than

committee was elected with majority control resting in the hands of

buyers. The vote backed his view unanimously and so the locals won.

local members. The chairman was replaced by Austin Perera of the Co-

George Willis, CTTA Chairman at the time, understood Merrill’s point of view

operative Tea Society, and all the European tea buyers (with the exception

and held with him.

of Lipton, whose chairman George Willis was one person who appeared

to appreciate local aspirations) were replaced by local buyers, including

Merrill was not the only vocal member of the CTTA but his determination

Merrill. He was invited to become Chairman but declined the honour.

and continued pressure certainly made others aware of the importance of

Abbas Akbarally also declined.

an independent tea trade as well as an independent nation.

A Cup of Kindness

The Story of Dilmah Tea

From Independence to Nationalisation After Independence, the tea industry carried on much as before but, lingering in the background was the threat of future nationalisation of the tea estates. This meant that British plantation companies started to divert their financial interests elsewhere (mainly to Africa) or, if they were still involved in the island’s tea industry, they invested little and allowed estates and factories to stagnate. Some sterling companies sold out to new local owners and some of the large estates were split up and sold as smaller gardens, but, with a lack of continuity of ownership and management, tea yields, efficiency and production levels all suffered. Although the Ceylonese government had started to nationalise other industries, the tea sector was left alone because the government did not want to alienate British goodwill or scupper the possibility of loans. And so the trade continued much as before, with little thought to the future, and when the nationalisation of the plantations started in 1971, tea bushes on at least two thirds of the estates were neglected, buildings run down and the standard of workers living conditions well below what was considered acceptable.

The Story of Dilmah Tea

A Cup of Kindness

In 1972, Ceylon became a Republic and took the new name of Sri Lanka, but the Ceylon tea industry was allowed to keep its old name for marketing and publicity purposes. Up to this point, despite Independence, the tea industry was still run by British-owned ‘agency houses’. Under this system, British tea companies had an agency house in London and another in Colombo, and the plantation managers managed the labour on the tea estates, the Colombo agency managed the plantations and the London agency managed the company. The Agency houses also exercised a great deal of control over warehousing, shipping, insurance and the marketing of tea, and were, of course, resisting nationalisation of the plantations. A study carried out by the Commission of Inquiry from 1971 to 1974 under the United Front government concluded that this was working against Sri Lankan interests and reported that they felt the agency houses and tea broking companies should be closed down. The Commission’s chapter on Exporting Activities of Agency Houses wrote, “The observation has been made more than once in

A Cup of Kindness

The Story of Dilmah Tea

this Report that the trading profits available to Sri Lanka and to other

Companies wholly listed abroad obtained large profits with net profits

developing countries from the export of commodities like tea, rubber,

on turnover of 9 cents per lb. Most Ceylon-based companies and

coconut and other agricultural products, are limited by price movements

Agency houses earned smaller profits with net average profits per lb

and the fluctuations of exchange rates over which these countries have

ranging from 0.001 cent to only 2.2 cents (or they sustained a loss),

little control.... there are several possible causes that can lead to this

whereas Merrill J Fernando & Co., a private liability company with Sri

situation”. Some of those causes were listed as “competition among local

Lanka nationals as its shareholders obtained a large profit and a net

exporters which enables importers to keep the export prices low; the

profit on turnover of 8.2 cents per lb. The Report went on to clarify that,

sales contracts or agreements having conditions that they preserve the

“the profits generated by the transactions of the Sri Lanka company

buyers interests to the detriment of the sellers; the currency of invoicing as

belong to the parent company.” This guaranteed that profits inevitably

well as the carrier being determined by the buyer; the timing of contracts,

left the country. But, despite its findings, the Commission did not

purchases, shipments and payments being at the buyers’ choice instead

recommend that any British owned companies should be nationalised.

of the exporters”. These were all matters that had preoccupied Merrill and which he had worked vigorously to change and figures published in

Prior to this, in 1971, the government had already introduced a Land

the Commission’s Report demonstrate how successful he had been in

Reform Act which imposed a limit of 50 acres per person as the

combating the negative effects of the Agency House system. The Report

maximum area of agricultural land that any individual was permitted to

includes a list showing the “outcome of exports made in 1970 by local

own. All land above that amount was taken over by the government

branches of companies incorporated abroad, Agency Houses and their

and compensation was eventually paid to the previous owner. In 1974,

associates and some other exporters”, and shows how results varied.

Merrill J Fernando lost the greater part of a plantation that he owned.

The Story of Dilmah Tea

A Cup of Kindness

A second wave of the takeover of land by the state took place in 1975

involvement has continued since those days. But he declined the offer

and, as a result of this five year programme of land reform, the ownership

of management in view of his other business commitments which began

and management of the plantation sector completely changed. British

to demand more and more of his time. In an alliance with two of the

control of the tea sector was finally broken and the larger tea estates

plantation industry’s management companies, MJF Plantations Ltd. (a

were put under the control of two newly established government bodies,

company within the MJF Group) today has significant financial interests

Sri Lanka State Plantation Corporation (SLSPC) and Janatha Estate

in two groups of estates – Elpitiya Plantations Ltd. and Talawakelle

Development Board (JEDB). By 1990, the government owned 502

Plantations Ltd. – and a controlling stake in a third group, Kahawatte

estates ranging in size from 150 hectares to 1,000 hectares. These were

Plantations Ltd.

almost all managed by the SLSPC or the JEDB and produced roughly 65% of all Sri Lanka’s tea. But the long-term effects of this arrangement were disastrous. With private ownership replaced by state management,

Dilmah is Born

all incentive and motivation was lost, productivity and performance fell dramatically and almost all the plantations ran at a loss. It was to take

Meanwhile, despite all the political upheavals and the problems that the

another 20 years to successfully restructure the plantation industry.

Ceylon tea trade was facing during this period, Merrill clung to his dream of creating a company that would sell 100% pure Ceylon tea packed

In 1990, the government appointed a task force to examine ways of

at source. As the consumer was being offered lower and lower quality

reversing this downward trend and their findings, published in 1991,

blended teas, Sri Lanka was beginning to feel the impact of reduced

led to another major restructuring of the state-owned plantation sector.

demand from the big packers and blenders. Exports from Sri Lanka

Carefully selected private sector companies were invited to take on the

dropped to such a low level that the government had to subsidise the

role of Managing Agents, originally on a 30-year contract. But the length

industry in order to keep the plantations afloat. Over a period of 15 years

of contract was suddenly reduced to 5 years which meant that banks

or so, Merrill planned and calculated, waiting for the right time to push

and other financial organisations were unwilling to lend the necessary

ahead with his revolutionary idea.

funds. Additional problems were caused by the political instability of

forthcoming general elections in 1994, increased labour costs and falling

In 1975, with socialism, nationalisation and an ailing economy, life in Sri

tea prices. Since those days, an on-going programme has aimed to

Lanka was hard. Industrial strikes and work stoppages added to the

involve the private sector more and more in the management of the

economic difficulties, food was running out and the country was on the

plantations while ownership remains in government hands. As a very

brink of bankruptcy. Many professionals and intellectuals were leaving Sri

successful company in the 1990s, Merrill J Fernando Co. Ltd. was

Lanka for good and Merrill too walked away – from the tea business and,

invited to take on the management of one group of estates and his

for seven months of travel, from the island.

A Cup of Kindness

The Story of Dilmah Tea

At the time, his two sons, Dilhan and Malik, were still small and were considered by Merrill to be his greatest asset. So, in 1988, he crafted their two names into the name of the new brand and Dilmah was born! And, as Merrill himself says, both the packaging and the content had to be excellent because Dilmah was to be the third member of my family!

The Story of Dilmah Tea

A Cup of Kindness

He was dispirited and depressed that he had fought through all those years for nothing. So he spent time travelling around the world, visiting friends, meeting business colleagues, explaining his reasons for giving up, but “not one of them agreed with my philosophy!” They argued with him, told him he had made a huge contribution to the tea industry, reminded him that he had helped many of them to develop their own businesses in various parts of the world, and impressed upon him that, as an entrepreneur and a man of vision, he must not quit. They made him realise that there was a great deal more that he could and should do for the tea trade and urged him to return to Sri Lanka and to the tea business. He did indeed go back – but not with the intention of following their advice. And then, something happened that was to change his mind. He was involved in a car accident that left him unconscious for several hours, and with a few broken ribs and gashes to his head and his back. His friends told him that his car was a total wreck and that, as it seemed to be a miracle that he had survived, he should now devote his life to prayer and to the service of the poor and underprivileged – a thought that struck him very deeply and stayed with him. During his period of recovery, he realised that if he did not return to the tea trade, he would never have the opportunity to build his dream ‘value added’ business. He also realised that to be able to help the poor and underprivileged, he needed to build up funds and goodwill – and the best way to do that was to go back into the tea business.

A Cup of Kindness

The Story of Dilmah Tea

In 1977, the introduction by the newly elected government of a free

Ceylon tea in branded packets. This had been his goal for a long time

market economy in Sri Lanka and the removal of import and export

and his mind was made up that this was the only way to save the Ceylon

exchange controls started to make things easier for him, although

tea trade and keep the profits in the country. His unceasing efforts to

it was not all plain sailing. A free market economy means a period

import two tea bagging machines failed. An import licence and foreign

of evaluation of currency to encourage manufacture and exports.

currency allocation were needed to purchase them and his applications

This inevitably brings misery and suffering to the poor and even to

were always rejected. On one occasion, a senior official pointed out that

the middle classes, while the rich grow richer and accumulate yet

he was chasing a rainbow and argued that if Merrill could export value

more wealth. However, the economical climate was good for business

added tea, why were the big multinationals operating in the country not

and Merrill set up MJF Exports Ltd. which, continued to supply bulk

doing so! That was a foolish question but Merrill quietly pointed out that

teas to foreign customers. By now he was exporting over 220,000

the multinationals only source raw bulk tea for value addition elsewhere.

chests of tea a year to Australia, Canada, the USA, New Zealand,

Not surprisingly, the official did not understand his point!

South Africa and the UK and his direct and indirect customers included nearly all international brands. He was classed as the fourth

By now, the tea bag was beginning to take over from loose tea in the

largest exporter of tea in Sri Lanka and the business was continuing

world market and so Merrill persuaded the Sri Lankan government to

to grow because of the honest and reliable service he offered all his

recognise the need to very generously extend support for the export

customers. He focused on the small details in every situation so that

of value added teas. Initially, he purchased two IMA bagging machines

the wider, bigger things would follow naturally. He chose his teas very

from Italy, installed them in a small factory of approximately 14,000

carefully, he travelled widely in order to meet his clients and develop a

square feet, and secured the exclusive agency for the machines in Sri

personal relationship with them, he advised them as to which tea and

Lanka. He also secured the exclusive agencies of the leading suppliers

which type of leaf was best for their requirements, he helped them

of filter paper, tags, envelopes, wire and all other materials required for

save money wherever possible and he always persuaded them to buy

the manufacture of tea bags and he incorporated Package Care Ltd. to

good quality tea.

represent and service the local tea bagging industry when it got going. Package Care Ltd. became the leading supplier of packaging machinery

But Merrill was still planning his move away from the export of bulk teas

and materials and still provides an important service to the packaging

and towards establishing a company that packed and marketed pure

industry today.

The Story of Dilmah Tea

A Cup of Kindness

The Story of Dilmah Tea

A Cup of Kindness

At the start, tags and envelopes for tea bags had to be imported

owned brand, all the Company’s profits remain in our country and they

from Japan, were very expensive and took four weeks from the

are shared with our workers, the wider community and are reinvested

placing of an order to delivery. Merrill recognised an opportunity to

in making tea a sustainable industry.”

produce them locally. He teamed up with his friend K R Ravindran and they jointly founded Printcare Ceylon Ltd in a garage sized space at

As a major bulk tea supplier to Australia, Merrill had made many good

Peliyagoda with three employees and an equal share each. This was

business contacts there. Bill Bennett, who trained as a tea taster and

a perfect partnership. Merrill knew his tea while Ravi had printing ink in

blender at Heath & Co. in Colombo became one of his close and trusted

his veins. Merrill in his foresight never interfered with the management

friends. Bill worked with his father in their family company, H A Bennett

and gave Ravi a complete free hand to develop the business and

& Sons, and later became its owner. He was the leading broker in tea

encouraged him to work with the rest of the tea trade. In due course

and coffee and represented Merrill’s company, selling Merrill’s bulk teas

they broad based the company inviting their friends (heavy weights in

to many of his customers. He also introduced Merrill to Jack Sholer

their own rights) to invest in the company. Printcare Plc is today the

and his brother Peter J Bennett who owned the Australian Tea & Coffee

country’s largest printing and packaging company and is arguably, the

Company and operated a factory in Melbourne supplying private label

world’s largest supplier of tags and envelopes for tea bags supplying

tea and coffee to supermarkets. Peter and Jack were very different to

nearly every major tea brand in the world including Lipton, Tetley and

Bill both in character and in their approach to business but they were

Twinings. It was listed in the Colombo stock exchange in 1995 with a

good fun. Demand for tea bags was increasing rapidly and their factory

sizable float amongst the general public.

was unable to cope so they turned to Merrill for help. That was Merrill’s great opportunity.

In 1982, Merrill was persuaded by his friends in government to take the company public since there was not one single public listed tea

Merrill made a major breakthrough when he won the contract to pack

company. In return, he was offered tax free status for a ten year period

‘Farmland’ tea bags for G J Coles, the largest supermarket chain in

and this was quite an attractive and tempting proposition. So Ceylon

Australia at that time, and so the tea bag business thrived and profits

Tea Services Limited floated 20% of its stock on the Colombo stock

increased. Nearly all the other chains in Australia turned to Merrill for

exchange and was oversubscribed within 7 hours. Its performance

their house brands and he kept this business for years until generic tea

since then proves that value added exports are the answer to the

replaced good tea in most house brands.

elimination of poverty! Today, Ceylon Tea Services Ltd markets tea to

90 countries around the world, is No 22 in rank and accounts for 0.86%

The time now seemed right to take the final step to achieving his

of the Colombo Stock Exchange capitalisation. In the company’s

long-term dream – to launch his own brand of 100% pure Ceylon tea

2008 Annual report, Merrill wrote to shareholders, “Your return on

packed in Ceylon and shipped out to the world ready to go straight

investment over a 27 year period has been remarkable. An investment

onto the supermarket shelves. But what would he call this exciting

of Rs10,000 on 1000 shares at the IPO has delivered Rs1,400,250

new brand? At the time, his two sons, Dilhan and Malik, were still

dividends up to 31st March 2008 and its current market value stands

small and were considered by Merrill to be his “greatest asset”. So, in

at Rs6,100,000. This is equivalent to an annual compound return of

1988, he crafted their two names into the name of the new brand and

34.9%. Your original purchase of 1,000 shares now stands at 20,000

Dilmah was born! And, as Merrill himself says, “Both the packaging

via bonus issues. Tea is a very profitable business but unfortunately

and the content had to be excellent because Dilmah was to be the

profits often go into the wrong pockets. In establishing a Sri Lankan

third member of my family!”

A Cup of Kindness

The Story of Dilmah Tea

A Cup of Kindness

The Story of Dilmah Tea

A Cup of Kindness

The brand with a conscience Concern for the consumer and the workforce I am not marketing tea. I am marketing a philosophy – the philosophy of caring and sharing, of giving everyone a very fair deal. I offer my customers the freshest and finest tea on earth; I provide my workers with the best possible deal; I share with the wider community and reinvest in the industry to make tea sustainable. My business is a matter of human service. Merrill J Fernando

When

can remember. But this is in fact a relatively new factory and office complex, built in 1994 to accommodate warehousing space, bulking a vast packing room with state of the art machinery, a tasting room and a large suite of offices. The previous factory was built just a short distance from here but very quickly became too small for the rapidly growing operation. As visitors approach, the front gates swing open to reveal an impressive complex of factories and offices. In the delivery bay, trucks are unloading sacks of tea that have just arrived from the factories at the plantations, the three storey block that holds the bulking and packing facilities stands imposing and proud, lush borders of exotic flowering plants and palm trees shade the pathways and roads that

visitors arrive outside the Dilmah packing factory in

link the various parts of the estate and lead around to the entrance

Colombo today, the impression they immediately

of the main office building. Here, cars draw up under a canopy of

have is of stability and continuation, of an established business running

palms and deliver their passengers into the cool, calm air of the

like clockwork, of an institution that has been here for as long as anyone

entrance lobby. There is never any noise or disturbance at Dilmah.

A Cup of Kindness

The Story of Dilmah Tea

Everyone behaves calmly, thoughtfully, and with the same sense of purpose as the three men they work for. There is an atmosphere of respect and quiet dignity, an underlying strength of purpose. Up on the 4th floor, a vast open-plan office is the Dilmah nerve centre. At their desks all around the huge space, the PR team work on the current publicity campaign, the export department coordinates shipments, accounts are controlled, the product development team plan ahead, creative design teams work on new packaging. In the tea tasting area at the far end, a team of 20 or so people are examining leaf, slurping and spitting the liquors, making notes, entering tea auction details into computers, discussing with colleagues the merits or disappointments of the different teas. On the floor below are laboratories, training rooms, studios, print rooms and more offices. Upstairs, the door to Merrill’s office opens and closes a hundred times or more throughout the day as members of this quietly focused team come to ask questions, respond to a request for information, discuss products, seek advice, or attend a meeting around the boardroom table. From the window the view of the Kelani river is a reminder of the importance of Colombo as the main

The Story of Dilmah Tea

A Cup of Kindness

port for the shipment of tea to places all around the world. From Colombo,

a very ‘hands on’ approach, Malik tends to concentrate on management

Dilmah teas are exported to more than 100 countries.This is very much a

and operations, while Dilhan enjoys marketing and direct contact with the

family company. No-one else is involved in its running. Decisions relating to

customers. Merrill’s passion and plans to transform the world of tea in his

company policy and marketing are made mostly by Merrill. He has a very

own lifetime are supported at every step by his sons’ same convictions

loyal team of executives that includes his two sons, Malik and Dilhan, and

and vision. They meet regularly to direct company business and, because

is headed by Deputy Chairman Himendra Ranaweera, who has been with

the family spends a good deal of time together both in and out of work,

Merrill for over 20 years and who is his trusted lieutenant.

the discussions and development of ideas ripple through the day – over lunch, while enjoying an evening drink, at dinner, in the car, sitting on the

After school in Colombo, Malik went off to Babson College Boston and

verandah of one of the bungalows up at the plantations.

Dilhan to the London School of Economics to follow degree courses in

subjects that would benefit them once they joined Dilmah. On their return to

Malik’s wife, Kimarli, is a banker and remains busy with her own work.

Colombo, they worked in every department of the company in order to gain

Dilhan’s wife, Serena, assists him in his business-related, social activities

a thorough understanding of the way in which the business operated. Today,

and with the work of the MJF Charitable Foundation, while her primary

they work very closely together as a team, overseeing their own individual

role is in caring for their three children. The grandchildren are often to be

areas of responsibility but overlapping and sharing, whenever appropriate,

found at the factory on a Saturday, or on the plantations when the family

to get the job done. Each of the three men brings different qualities and

visits the tea region. As they grow up, they have been involved with the

strengths to the company. Merrill is of course the driving force and takes

people who work for Dilmah, listening, learning, watching and sharing their

A Cup of Kindness

The Story of Dilmah Tea

fathers’ and grandfather’s intense involvement in Dilmah’s world of tea and the world beyond.

The Dilmah Work Ethic Dilmah is a company driven by passion. It is not just another tea company selling a commodity. It is a family selling high quality tea to enhance ordinary people’s lives both in Sri Lanka and around the world. Merrill’s decision to add value by packaging tea at source was in order to guarantee Dilmah customers the freshest tea on the market (fresh tea contains a higher level of antioxidants with their positive health message). Value addition at source enables Dilmah to retain in Sri Lanka earnings otherwise accrued off-shore by multinational companies. The only profitable segments of the tea industry are value-addition packaging, branding and marketing, all of which are in the control of those multinationals. And the farmers are left penniless. In launching his family brand, Dilmah, Merrill ventured out into those profitable

The Story of Dilmah Tea

A Cup of Kindness

The Story of Dilmah Tea

A Cup of Kindness

segments and showed the world that producing nations are fully capable

The long-term effect of this is that quality tea-producing countries like

of competing with the multinationals and retaining, for their benefit and

Sri Lanka are pushed aside in favour of countries whose tea is lower

that of their country, all the profits that are otherwise taken away.

in price and lower in quality. So Sri Lanka and its tea industry suffer in

The tea that Dilmah grows on its own plantations is sold direct; it is not

the longer term. Dilmah’s strength in a difficult market is its honesty, its

mixed with any other teas; it is not traded up by middle men; it is simply

integrity and the quality of all its teas. But Dilmah’s vision is not just for

high quality tea traded fairly and honestly. The drink brings pleasure to

the quality of the tea but also for quality of life.

its consumers and all the profits go back to Sri Lanka to help make life better for the people who grow, pick, manufacture, pack and market

Merrill’s philosophy in life and in business is guided by a quotation

it. The company is seen by many as a pioneer because of the unusual

from the bible’s Book of Proverbs 11 in which Solomon says that “a

way in which the business is run. Merrill’s theme that underpins the

generous man will prosper; he who refreshes others will himself be

company’s approach to tea is, “Let’s go ahead with one focus - quality,

refreshed”. This quotation is displayed on the wall behind Merrill’s

quality, quality! People recognise the quality of Dilmah. We must listen

desk and it reflects Dilmah’s commitment not only to the spirit of

to what the consumer says. We spend time in supermarkets, talking

philanthropy as expressed through the work of the MJF Foundation

to the customers, asking them what they like, what they look for in a

but also to the quality and integrity of the Dilmah product. Dilmah

product. We need to keep our feet on the ground and stay in touch with

takes a long-term view on every aspect of business – the long-term

the consumer. The more we grow as a company, the more we need to

success of always selling good quality tea, of being trusted and

remember that!”

so gaining a place in the consumer’s heart as well as their cup, of investing in the infrastructure of the company and the industry so that

Merrill, Dilhan and Malik never lose sight of the certain knowledge that

it can grow and thrive, of investing in and training staff who will stay

quality is the most important aspect of their product, and, as Dilhan

with the company and radiate their individual strengths outwards to

explains, “we have continued to pursue my father’s vision for quality,

the team around them. This approach is not about just earning profits;

authenticity, integrity and ethics in tea.” They never waver from these

it is about nurturing and supporting a family in which every single

principles, even when competitors come along behind them and offer

member benefits. The motto at Dilmah is “Let’s go for quality, let’s

Dilmah’s customers what they say is a similar tea but at a lower price.

go for ethics. The more we as a group do the right thing, the more

When this happens, Dilmah may lose a certain amount of business for a

we’ll succeed with the consumer.” And the genuine feeling is that it

short while but the customers soon come back because they realise they

would not be detrimental to Dilmah if other tea companies took the

have been misled. Dilmah is determined not just to maintain the quality of

same approach. On the contrary, the belief is that it would actually

its particular teas but of all Ceylon teas. What other tea companies have

help everyone because more people would drink tea and so the entire

not yet grasped is that by selling low quality, cheaper tea, the consumer’s

sector would grow.

palate is trained to accept second or third best and to drink cheap tea.

a generous man will prosper; he who refreshes others will himself be refreshed.

A Cup of Kindness

The Story of Dilmah Tea

A Cup of Kindness

One absolutely essential element in the Fernando family’s approach to both life and business is based on Merrill’s total belief in simplicity and a lack of self-importance. Whilst many successful business people may change their manner and approach to become over-concerned with material wealth and power, there has been no such change in Merrill’s life. He has always been driven by honesty and modesty and by his unswerving objective to deliver to consumers an outstanding tea experience while at the same time ensuring a general benefit to the underprivileged in society and to the environment. Merrill is very much the same today, with the same ethics, approach, demeanour and conduct, as he was when he started out in tea decades ago. Consequently, no member of the Dilmah team today is permitted to ever consider themselves to be something special. The Fernandos feel that the moment any one of them thinks of himself or herself as too important, that’s the moment of weakness when they can lose touch with reality and so risk putting the entire structure in danger. Merrill, Dilhan and Malik consider Dilmah to be a small company and as a family, they do things simply. They have strong Christian beliefs and a deeply-held desire to abide by the values and principles of integrity, honesty and transparency required by those beliefs. The Fernandos’ religious beliefs translate directly into a code of conduct for their business activities and therefore define their philosophy of making their business a matter of human concern. Merrill has always believed fervently in the importance of trusting and being true to oneself, of being confident and disciplined and of avoiding anger and jealousy. His philosophy touches everything he does and says, and Dilmah is based on a desire to help others find the same strength and focus. The company is about teamwork and respect and

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a strong sense of fairness. Throughout his life, Merrill has been driven

As in all their work, Merrill, Dilhan and Malik take an unusual approach

by a desire for justice. He treats his clients, his trade associates, his

to the way in which they relate to their employees and involve them in

employees, his friends and his family with the same consideration and

the daily operations of the company. “We try to train our people to share

respect. He offers customers a reliable, consistently high-quality product

their thoughts on markets, possibilities, products, processes, etc; we

at a fair price. In his attempts to resolve imbalances and injustices, he has

try to empower people in a climate of changing needs.” In the office,

never been afraid of speaking the truth and seeking a just and fair solution

on the production line, in the warehouse, in all sections of the company,

– even if that means losing friends. Of his employees, he expects no more

this philosophy allows everyone to aim for a higher level of achievement

and no less than he would himself give, but he is always concerned for

and satisfaction and anyone can suggest ways to improve their individual

their welfare and always appreciative of the part they play in the success

routine and so help increase the overall productivity of the team. This

of the company. Dilmah was founded on a sense of fairness, fairness is

approach is based on the Japanese concept of ‘Kaizen’ which means

the driving force that powers the company’s engine and the thread that

‘continuous change’ and is designed to encourage people to strive for

binds and holds the entire structure together. In both his working and

perfection by eliminating waste. It is a system specific to each individual

social life, the love that Merrill receives from his friends and family, and

employee and focuses on proposals that will improve his or her work as

the respect and admiration he inspires in the business world and the tea

an individual. It involves three processes – the recognition of problems,

industry say more about him than any words can convey.

the generation of ideas to solve the problems and the implementation of those ideas. Employees are rewarded for each suggestion and idea that is implemented, and reward ceremonies are held at the factory to present

The Workforce

gifts to successful members of the team who achieve these goals.

When MJF Co. Ltd. started packaging the first Dilmah products, the

One young man who spent a few years working for Dilmah wrote the

company was relatively small, with approximately 70 people in the offices

following on his last day at the Colombo factory: “As this is my last

and between 150 and 200 in the factory. The product range in those

working day at MJF Group, I take this opportunity to thank you for the

days included three packs – cartons of 100 tagless tea bags, cartons of

opportunity given to develop professionally and personally into who I

100 tagged tea bags and packets of loose Ceylon tea. Today the range

am. I am sorry that I could not meet you all personally and thank you.

consists of more than 300 products and the number of staff needed to

I believe this company is built on morals which are an inspiration to any

develop, pack, design and distribute those all over the world is obviously

employee. In this light, my deepest appreciation for the exposure, training

far higher and now there are 1000 employees in the factory and about

and guidance provided by each of you, and mainly Chairman’s visionary

20,000 at the plantations, with agents and distributors also representing

spirit which was inspirational to me. May I also wish each of you and your

the company in more than 100 countries where Dilmah teas are sold.

families the very best in life and in business.”

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Dilmah makes sure that everyone is well provided for in terms of health care and general welfare. There are also incentives and rewards for long service and loyalty. Merrill feels that everyone should have his or her own home and if, after ten years’ service, an employee puts forward a proposal to build a house, money from a special fund that Merrill set up some years ago helps with the costs. If anyone has a personal problem such as a sick child who needs special medical treatment, an elderly parent who needs care, or a funeral to pay for, they can make an application for help. Financial assistance is awarded on a case by case basis. Much of MJF Group’s charitable work is in the wider community but Dilmah employees come first.

Honesty and Quality When most people around the world go shopping for a packet of loose or bagged tea, they have no idea that the tea they choose is a blend of teas from many different origins and, even if the packet says Ceylon, Kenya or Darjeeling, there is no guarantee that the name on

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the outside tells the truth about the teas inside. Various schemes have

cleaned by a series of cyclone, vacuum and metal detecting machines

been tried over the years to try and protect the name of particular tea-

that remove all foreign bodies such as straw, paper, or pieces of metal

producing countries or regions, but even in the days when Sir Thomas

to ensure that the tea meets international standards. Once a sample

Lipton was advertising his pure Ceylon tea all around Britain, he was

of the cleaned tea has been approved, the bulk tea is fed into a totally

mixing it with leaf from India just like all the other blending and packing

enclosed, air-tight system of tubes that controls the flow of the tea into

companies. That is exactly what Merrill has been trying to put a stop to for

the machines that make and fill the tea bags, or guides the correct

more than fifty years. And so Dilmah’s most important selling point is that

quantity of loose tea into sealed packages. The advanced machinery is

its teas are sold with integrity and honesty. Whatever it says on the packet

capable of packing untagged tea bags at the rate of 2000 per minute

tells the truth. And whereas the average shopper picks up a packet

and tagged bags at up to 450 bags per minute. The filled products

that just says ‘Tea’, Dilmah gives detailed information about whether the

almost magically appear at the other end of the process, ready to be

tea is Single Origin from one country (Sri Lanka) and therefore teas from

gathered up by the efficient hands of the girls who work in this section

several different estates, Single Region (teas from several gardens in just

of the factory and stashed into the cases in which they are delivered

one of the island’s famous speciality tea areas such as Uva or Dimbula),

to the customer. So what customers get is tea that is picked in the

or Single Estate (from just one of the beautiful gardens such as Somerset

morning, processed later in the day, bulked and packed into paper

Estate or Lover’s Leap where the tea is grown).

sacks at the tea factory on the plantation, delivered to the Colombo packing plant, packed into teabags or packets and palletised ready for

Dilmah’s packing factory in Colombo is probably the most impressive and

shipment just a couple of days later. Compare that with what happens

certainly most efficient tea packing facility anywhere in the world. When

in consuming countries where bulk teas are not actually packed into

made tea arrives here from the tea factories, it is thoroughly checked and

tea bags or cartons until about 12 weeks after they were made in tea

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factories in India, Kenya, Sri Lanka, Indonesia or Brazil. Tea that is packed

news insert in my new packet of Dilmah tea. I felt that I had to write to

at source is fresh so no wonder Dilmah’s customers keep coming back

you and tell you how impressed I am that you are using your wealth to

for more!

help socially depressed people. You and your family have been blessed by God and you spread your blessings around.” A random selection of

Dilmah is known for its consistency and reliability and when consumers

letters to Dilmah over the years give the same message – thank you for

choose packets of Dilmah tea, they are captivated for life because they

your tea and thank you for helping others who are less fortunate.

know that every packet holds high quality tea. Customers write regularly to Merrill to express their appreciation: “My wife and I have been drinking your Dilmah tea almost since it came into the market in Australia. As an

The Products

ex-planter myself for 30 years, I write to congratulate you on the success

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of your venture”; “Having spent 26 years of my life in India mainly in the

Dilmah’s very large range of widely varying products is evidence of how

tea growing areas of the north and in particular Assam, I learnt how my

in touch Merrill, Dilhan and Malik are with the consumer. They move

palate appreciated good tea. I am writing to congratulate you and your

with the times, recognising the appreciation of tradition and heritage,

family for making an excellent tea”; “For some years I have been buying

responding to the demand for good quality tea, but also anticipating

other teas but having tasted Dilmah, I shall be buying it from now on”.

shifts in the market and responding to or indeed driving the demand

Families all around the world feel that the Dilmah family members are

for a fresher, snappier, more exciting 21st century approach. Having

their friends and that the tea they make is simply the best. But what they

started with just three products in 1988, Dilmah now offers a wide range

also like is the fact that Dilmah cares not just about the customers but

of tea bags and loose teas to suit every palate – from the rich flavour

also about those who are less well off: “I have just finished reading your

and full strength of the breakfast and afternoon teas to the aromatic and

A Cup of Kindness

The Story of Dilmah Tea

delicate subtlety of Ceylon Silver Tips and lightly flavoured Earl Grey. The teas are offered to consumers in various styles of packaging – in cartons and packets; printed tins carrying colourful historic and inspirational images; sleek, minimalist, modern tins; ceramic jars; and wooden presentation boxes. The range includes products that are tailored to home consumption, restaurant and hotel service, the gift market and the hospitality and retail sector. Whereas almost all the other teas that Dilmah sells are 100% Ceylon tea, the t-Series recognises the growing interest in high quality black, green, white, oolong and flavoured teas from countries such as China and Japan as well as Sri Lanka. The elegant teas that make up the stylish collection are packed in beautiful silver tins labelled in intense and excitingly bright colours, and in mini timber boxes finished in rainbow colours. Some of the teas are loose while others are packed in luxury leaf tea bags that have brought visual excitement to bagged tea.- The young, vibrant style of the t-Series is emphasised by its daring legend “tea-time rocks” that is boldly stated on the bright chequerboard of its lid label. The philosophy that lies behind the t-Series is to reach out to the ‘super premium

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consumer’ who wants a special experience beyond the everyday,

by discerning tea drinkers as the home of the world’s finest tea. We grow

an experience that offers a sense of indulgence, luxury, uniqueness,

tea from sea level to over 6,000 feet elevation with the flavour, aroma and

authenticity, ethical honesty, and style. As Dilhan explained at the

taste of tea changing almost every 250 feet. Sadly, the commoditisation of

2007 Distributor Conference, “ We are not saying, ‘This is good tea,

the tea category in the last 30 years has meant that consumers have not

it’s got a good story, this is the one for you.’ We are saying, ‘What

had an opportunity to savour this wonderful variety.” By drawing on the

would you like? How could we serve you today?’ The tea experience

obvious similarities between wine and tea, the packaging of Dilmah Single

goes beyond – it takes those teas and it offers them in a variety of

Region teas offers the customer details of the different growing areas,

different ways – iced, cocktails, mocktails; how would you like your

descriptions of the leaf and liquor, and exciting tasting notes that echo

tea today? That is what it’s about. The only requirement – it’s got to

wine terminology. The four teas in the range take account of the almost

be good tea!” Branded shelving, counters, carts, kiosks and a ‘t-Bar’

magical variations in colour, flavour, aroma, leaf appearance and terroir,

are available for installation in such varied locations as shopping malls,

raising the teas into a quality bracket all their own and giving consumers

department stores, hotel lobbies, airport lounges, spas, cruise ships,

an opportunity to savour the special character just as they would enjoy

resorts, restaurants and cafes to allow eye-catching and effective

wines from different origins. When Dilmah asked four renowned wine

presentation, brewing and service of the teas. The company is proud

tasters around the world to taste the teas, their tasting notes used all the

of its many outlets around the world and has found them an excellent

wonderfully descriptive words and phrases usually associated with wine

way to reach new customers.

and demonstrated clearly how quality teas offer the same infinite variety of flavours and aromas.

Single Region Teas

The Watte series was almost five years in preparation and is a selection of unique teas, packaged in foil in order to deliver them to the consumer

Whereas most tea companies have failed to recognise and take

in perfect, very fresh condition. This imaginative series is named from the

advantage of the similarities between tea and wine, Dilmah draws the

Singhalese word for garden – ‘watte’ - and includes four fine teas:

parallels very successfully and markets a range of connoisseur teas

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using the same language used by the wine trade. The company has

Ran Watte, in the style of Champagne, means ‘golden garden’ and is

long appreciated the increasing understanding amongst consumers

grown at 6000 feet at the very top of the paradise island. It contains

of different grape varieties, of the powerful influence on different

rivulets of flavour that linger and refresh, enliven and delight. This beautiful

wines of location, altitude, soil type, seasonality, climate, cultivation

golden orange tea boasts an elegant lemony flavour with a light, delicate

and production methods. As Dilhan explains “Ceylon is recognised

character and a mellow after-taste that is perfect with petits fours. New

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The Story of Dilmah Tea

Zealand Wine Master, Bob Campbell, describes Ran Watte’s aroma as “vanilla, citrus/orange, blackcurrant bud, biscuit and peach” and the taste as “supple, light-bodied tea with fine, chalky tannins”. Hubrecht Duijker, Dutch Wine Taster, describes Ran Watte as “smooth, with a pinch of spiciness – and a fine aroma with some peach and other citrus fruit. The hint of spiciness has the same function as the crispness (from the chalk soil) that distinguishes Champagne from other sparkling wines”. And Australian Winemaker, Ian McKenzie, describes the aroma as having “lifted, lively, lightly herbal aromas with undertones of delicate lemony/citrus fruit with added complexity of light aromatic spice and hints of orange rind” and enjoys the “light, lively, fresh, herbal palate developing with fine grained tannins to a soft elegant but flavoursome mid palate and finishing with a dry, lightly astringent sensation – a lovely balance of herbal flavours and tannin with great palate strength”. Edwin Soon, Singapore Wine Judge & Writer, describes the tea as “bright, breezy, effortlessly light and snappy yet with tannins of fortitude. Long lasting in aftertaste. Like Champagne made from cool climate grapes picked just before they get too ripe. An exquisite and alluring tea”. Uda Watte means ‘high garden’ and is grown at altitudes of between 4000-5000 feet. The crisp, cool air creates a distinctive high-grown, full-bodied, rounded and refreshing blend. It brings out a brilliance of creamy richness and layered depth with an intense aroma. It is structured and well-defined while retaining a bright, flavoury note. It has an intense nose with a splendid finish and is outstanding with baklava. Bob Campbell’s writes of the aroma as “Vanilla, hay, mint, peach biscuit, peat and wood smoke” and the taste as “soft, subtle with a smooth, almost velvety structure and a lingering finish”. Hubrecht Duijker likens

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it in style to a Pinot Noir: “charming, lush, supple, and like a good Pinto

And Edwin Soon describes it as “medium-bodied, deliciously dry and

Noir, it also has some tannin-like backbone, while a light spiciness is

generous. Analogous to a Syrah grown in warm but not hot climate areas,

present as well”. Ian McKenzie compares its colour to “a well-aged

on steeper hillslopes facing the sun. A handsome and impeccable tea”.

oloroso sherry”, and thinks that the aroma carries “undertones of sweet new-mown hay”, describing it as “fresh and lightly aromatic,

Yata Watte, means ‘low garden’ and is from elevations stretching from the

even fruity and not dissimilar to the slightly gamey forest floor aromas

shores of the Indian Ocean to 1000 feet. It gives a deep, mahogany-toned

found in pinot noir”. The palate, he says, “is immediately flavoursome

liquor that has a heavy robust, dark and creamy taste, plenty of personality

and supple leading into a soft round medium bodied mid palate. The

and drinks well with black forest gateau. Bob Campbell’s description of

back palate develops richness and depth with mouth coating but fine

the aroma is “lemon blossom, toasted, malted barley, biscuit and peat”,

and complex tannins resulting in great length – overall a lovely balance

and of the flavour, “rich, full-bodied with a backbone of fine-grained,

of attractive, almost fruity flavours and soft generous tannins”. And

drying tannins”. Duijker explains, “The expressiveness of a good Cabernet

Edwin Soon describes it as “an almost savoury taste. Fruity, exotic

Sauvignon can be experienced in this dark brown tea. It tastes round, full,

perfume with a ‘balance’ in taste from the ample tannins, strong but

almost muscular and juicy with elements of – ever so slightly sweet – spices

not brooding. Comparable to a Pinot Noir wine made from grapes

and bay leaf. Very restoring indeed. And like a good Cabernet, with a long,

grown in cool climates. A tea that is delicate, radiant and elegant”.

harmonious finale”. For McKenzie, “This tea is somewhat of an enigma. The colour, aroma and initial palate sensations, which are all big, rich and

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Meda Watte, in the style of Shiraz, means ‘mid garden’ and is from

flavoursome, lead one to expect a strong, heavy, mouth-puckering tannin

the mid-grown region at altitudes of 2000-3000 feet. It yields a dark

finish. The surprise is that instead of flavour building as expected at the

amber liquor that is strong, rich, full-bodied and grippingly pungent.

finish, it actually diminishes. The structure reminds me of Pinot Meunier

In the aroma, Bob Campbell perceives “orange rind, cloves, vanilla,

sparkling base wine in that there is an immediate, rich, ripe, full mid palate

seaweed, earthy biscuit and peat smoke” and of the flavour, he says,

but which then falls away. The aroma is pronounced, aromatic, rich and

“Elegance on a grand scale. Rich robust tea with firm, fine tannins”.

sweet with malt extract and hints of dried rosemary- like herbal characters.

Hubrecht Duijker describes Meda Watte as “firm, full, yet lively taste

Toasty, nutty complexity adds an already powerful bouquet. The entry to

with hints of caramel, fresh figs and some floral elements, plus a good

the palate is rich and full-flavoured, building to a round, mouth-filling, soft

finish. Especially the structure and firmness are in line with an Australian

richness and leading to surprisingly and pleasantly soft and velvety tannins

style Shiraz. Like the other three teas, this one has a beautiful balance”.

on the back palate. Quite heavy initially, but agreeably soft and smooth on

Ian Mckenzie says it is “sweet, lightly pungent and aromatic tobacco-

the after palate”. Edwin Soon agrees that it is like a “Cabernet Sauvignon

like characters with complex roasted nut undertones, reminiscent of

grown on flat lands and lower altitudes with lots of sun – an authentic and

lightly charry barrel ferment characters found in many fine red wines”.

stately tea.”

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Premium Ceylon Tea

be encouraged to taste Single Origin Dilmah Tea when you read the endorsement of renowned British food & wine writer Fiona Beckett in

Dilmah offers a range of traditional gourmet black teas selected for their

the Times of London, “Dilmah’s Earl Grey is outstanding. It is the best

premium quality and taste. The teas offer finely balanced richness, flavor,

I’ve ever tasted and the strong Breakfast tea is good, too!”

strength & aroma for the perfect cup. Tea perfect for everyday drinking from the central highlands of Sri Lanka, reputed for its brightness & medium strength.

Dilmah Exceptional Teas & Infusions An exceptional range of teas, some pure tea, some flavoured with

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Gourmet Teas

carefully selected additional ingredients, are exceptional for their

The Dilmah Gourmet Teas offer a selection of unique teas reflecting the

and indulgent selection that brings together all the heritage, history

traditional favourites around the world. If you rely on old brand names

and timeless pleasure of tea with contemporary 21st century taste

for your speciality tea, such as English Breakfast or Earl Grey, you may

and sense of style.

A Cup of Kindness

quality, fragrance and character. They form a contemporary, luxurious

The Story of Dilmah Tea

Dilmah 21st Anniversary Teas In 2009, Dilmah introduced its range of 21st Anniversary Teas to celebrate the 21 years of Dilmah. For the first time, these teas included a message from Malik and Dilhan along with an on-pack panel of ‘Life Stories’ and environmental messages. This idea started when the brothers realised that many consumers around the world did not fully comprehend Dilmah’s commitment to ethics and human service. Malik and Dilhan have therefore encapsulated the impact of the MJF Foundation in a series of life stories that give details of beneficiaries and explain how their lives have been improved and enhanced by the projects that MJF funds. The objective is to share with consumers the work of the Foundation (of which, by buying and drinking Dilmah tea, they are all a part) and thereby demonstrating the power of the concept of business as a matter of human service.

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Dilmah Exceptional Teas & Infusions A range of 12 tea blends, some pure tea, some flavoured with carefully selected additional ingredients, are exceptional for their quality, fragrance and character. They form a contemporary, luxurious and indulgent selection that brings together al the heritage, history and timeless pleasure of tea with contemporary 21st century taste and sense of style.

Dilmah 21st Anniversary Teas In 2009, Dilmah introduced its range of 21st Anniversary Teas to celebrate the 21 years of Dilmah. For the first time, these teas will include a message from Malik and Dilhan along with an on-pack panel of ‘Life Stories’ and environmental messages. This idea started when the brothers realised

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Dilmah Organic Teas Dilmah launched its first organic products in 2008 and now offers a selection of organic teas and infusions that are certified compliant with European Union regulations, the United States National Organic Program and Japanese Organic JAS Standard.

Green Teas The Dilmah Green Tea range features teas selected personally by Merrill J. Fernando, who has researched many tea gardens and selected very special green teas which are appreciated by consumers all over the world. The Dilmah Green teas are a naturally indulgent experience offering all the goodness in tea.

The Story of Dilmah Tea

Fun Teas The Dilmah Fun Teas are designed to offer a taste experience that is as pleasurable as it is authentic and functional. Each tea is crafted to ensure that delicate balance of flavour and tea. The authenticity in tea is celebrated in the quality of the Single Region Ceylon tea whilst the function – the health benefits in tea – are embodied in the use of high quality, garden fresh teas.

Ready To Drink Dilmah Ice Tea In 2008, Dilmah launched its Ready-to-drink Dilmah Ice Tea after five years of research. The company was keen to create an RTD tea which was not simply another variation of products already offered by other

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brands but which was a healthy, authentic, natural alternative. Dilmah decided that the only acceptable approach was to produce an iced tea from freshly harvested tea leaf within hours of plucking and to use no chemical or other elements that could be harmful to human health. Most RTD products on the market are essentially manufactured by the large scale brewing, cooling, pasteurising and bottling of poor grade black or green tea and often involve chemical treatment. The teas are exported thousands of miles to the consuming country for processing and, because they contain mostly fibre and older leaf, they have a lower antioxidants level than fresher, younger leaf. The resulting product offers little to the consumer except convenience. Ready-to-drink Dilmah Ice Tea is made from freshly harvested leaf that is bursting with flavour and the transformation from fresh leaf to tea concentrate is completed within 24 hours, sealing in all the goodness and the flavour. The company’s dedicated RTD tea factory was built at Rilhena Tea Estate in Kahawatte in the Ratnapura district on the plantation where the tea is grown and plucked. The leaf is plucked, brought into the factory and immediately processed by the usual method to make black tea. But, instead of being dried after oxidation, it is used immediately to manufacture an iced tea concentrate. The three year research and development programme that produced this genuinely innovative RTD tea involved scientists, consultants, food technologists, production and technical staff and the resulting product offers consumers the real authentic taste of tea and an additional health benefit since it has been shown to contain a higher level of antioxidants than other RTD teas. Freshleaf contains no chemicals or preservatives and uses only natural flavours.

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Creating the Teas

In Dilmah’s tasting room, the buyers and their assistants prepare the teas for tasting by measuring 2 grams of each into traditional white

Who decides what tea goes into each product? Selecting tea for a

porcelain tasting cups and brewing them for 5 minutes. When the

consistency of flavour, character and quality is a highly skilled job that

digital timers indicate that the leaf has steeped for exactly the correct

demands a well-trained palate, unwavering focus and steady judgement.

time, the liquor is strained off into bowls, allowed to cool slightly before

It also means tasting hundreds of teas every day to find the ones that are

the noisy slurping and spitting begins. If the tea is destined for a

of the right calibre for the single estate products.

market where the tea will be drunk with milk – in Britain or Australia, for example – the tea is tasted black and then with milk A spoonful

Merrill is extremely particular about what teas go into Dilmah packets. He

of tea is sucked sharply into the mouth so that it hits the taste buds

has never been willing to compromise on standards or let the customer

all around the inside of the mouth and gives the taster an immediate

down by substituting cheap tea for quality Ceylon leaf and he insists on

impression of flavour, quality and strength. The taster’s first judgements

maintaining quality. In the days when Ceylon first manufactured black tea,

are usually the best. He spits and moves rapidly on to the next bowl.

it was processed by the ‘orthodox’ method that respects the leaf, rolls it

Alongside him, a clerical assistant notes down all his comments about

rather than rips it apart (as happens with CTC cut, tear and curl method)

the appearance of the leaf, whether it has been well or badly made,

and offers up a black leaf that has layers of flavour, subtlety and finesse.

and the character of its aroma and flavour.

CTC teas were developed for the tea bag market in the 1930s and the small black particles of tea give only strength and colour. Dilmah stands

For each of the Dilmah products, a particular character, leaf type

for tradition and quality and so chooses orthodox teas. Merrill still insists

and leaf size is carefully selected to give certain levels and layers of

on being involved in the development of new teas and once the right

character, flavour and strength. For rich, strong, gutsy, dark brews,

taste and the right leaf style have been decided, he hands over to his

leaf from the low growing areas is chosen; for intense, full-bodied

buyers and tasters and leaves them to buy the right teas at the auction,

teas, mid-elevation leaf is sought; and for subtler, more elegant, lighter

create the recipe and get it into production. Meanwhile, of course, the

notes, high grown teas from Nuwara Eliya or Dimbula are ideal. Different

packaging designers and printers will have been hard at work, the PR

character is required for different times of the day, for different palates

team will have planned its strategy for the launch of the new product,

and for different markets. For the European market the teas are lighter,

and the marketing department will have devised its advertising campaign.

intended to be drunk without milk; for the Russians, a small black leaf must give a robust flavour; for the Arab markets, a large elegant leaf

Every week, Dilmah’s tea buyers taste between 6000 and 7000 samples

must give a subtle level of strength and flavour. Once the flavour and

of tea that arrive from brokers offering teas from all of Sri Lanka’s estates.

strength of a tea has been assessed and accepted, there are other

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considerations that must be taken into account. Is the leaf size suitable

into bulking and packing machines, samples are constantly examined

for a particular tea, either loose or packed into teabags? Does too much

and analysed to ensure the quality and high standard of all Dilmah

powder fall through the tea bag paper? Has the tea been checked in the

products.

laboratory for pesticide residues? When all the relevant considerations have been made and the tea decided, a sample of the standard is stored

Dilmah’s Quality Assurance System demonstrates the commitment

for comparison and checking against new batches of the tea at a later

to quality and customer satisfaction. It ensures that the products

stage.

purchased by the consumer conform to specified requirements via carefully monitored audits, inspections and evaluations of supplies

The team of tasters is also responsible for quality checking samples drawn

and suppliers in accordance with international standards and planned

every 30 minutes from the factory production line during the working day

arrangements. Quality improvement programmes across the company

to make absolutely sure that the loose tea or the tea in the tea bags is

and the food safety management system help to continually improve

giving the correct flavour and strength to match the standard.

quality and safety of all the products. Standards of quality are so high at the Dilmah tasting and packing

Quality Assurance

facility that in 1997, the MJF Group was awarded the ISO 9002 Certification. The high standards maintained under the ISO certification

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Dilmah’s Quality Assurance Department is obviously also key to analysing

led in 2000 to Dilmah to become the first Sri Lankan company to

all aspects of the teas before, during and after the development,

receive HACCP (Hazard, Analysis Critical Control Point) Certification.

manufacture and packing of the different products. A team of top

HACCP principles and guidelines were developed by the Codex

technologists works six days a week at the Colombo factory to support

Alimentarius of the World Health Organisation to take a systematic

and inform the work of the tasters and new product development team

approach to hazard and risk in the food industry. Qualification for

with their expert knowledge of tea constituents such as minerals, caffeine

certification is rigorous and challenging and Dilmah is rightly extremely

and antioxidants. They also offer their knowledge and understanding of

proud to have achieved recognition for its high standards. It is another

flavourings used in tea and in herbal and fruit infusions, and they check for

testament to the Fernandos’ care and consideration for the consumer,

residues left by pesticides and other plant protection agents. Throughout

of their commitment to quality and their unceasing determination to

the entire journey of the leaf from tea plant to factory to tasting room, and

be the best.

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The company is certified in compliance with the following

Dilmah’s Markets

•

ISO 9001: 2008 - Quality Management System Certifying body: Det

In 1988, Merrill reached the point in his career when he was ready to

Norske Veritas (DNV)

pack and export his new, branded Dilmah tea as a quality 100% pure

ISO 22,000 : 2005 - Food Safety Management System Certifying

Ceylon tea, a better product than any other available. He already had a

body: Det Norske Veritas (DNV)

number of customers in Australia, so this country that Merrill knew so well

HACCP - Hazard Analysis and Critical Control Point Certifying body:

was chosen as the launch market. There were all the usual hurdles to be

Det Norske Veritas (DNV)

overcome - high shipping costs, export duties and cartels – but Merrill

•

BRC - Global Standard for Food Safety Certifying body: SGS

stood up for what he felt was right, remained focused and determined,

•

ISO / IEC 17025 - Laboratory Accreditation for Chemical Testing

and provoked a freight war over costs between the major shipping

Certifying body: Sri Lanka Accreditation Board

companies. The eventual result was lower shipping prices, and so Merrill

Organic Tea Certification Certifying body: Institute for Market ecology

could afford to dispatch his first consignment of Dilmah Tea to Australia

(IMO)

where stores in Melbourne were the first to stock the products. Within

•

Kosher Certifying body: Orthodox Union (OU)

two years, the brand gained respect and a growing share of the market,

•

Halal Certifying body: All Ceylon Jamiyyathul Ulama

and within three, the name was recognised nationally. Merrill went to

• •

•

Australia to promote the teas himself and spent time in the supermarkets Other Audits / Inspections

and stores, talking to everyone, telling them the story of Ceylon tea. Today he is recognised everywhere as Mr Dilmah. People began to realise

•

Supplier Quality Management System (SQMS) for McDonald’s

that Dilmah was different. They knew that when they bought Dilmah tea,

•

Social Accountability programme for McDonald’s

not only were they going to brew a really good cuppa, but they were

•

Food Safety audit by McDonald’s - Japan

also helping Merrill to put something back into Sri Lanka. People wrote

•

Ukrainian inspection

to him to say thank you; children met him or saw him on television and

•

Byelorussian inspection

told their mothers they wanted “that man’s tea”! Today, Dilmah is the fastest growing brand in the country and as one customer put it, “If it’s

MJF Beverages

not Dilmah, it’s not my cup of tea.”

•

ISO 9001: 2008 - Quality Management System Certifying body: Det

After success in Australia, the products were launched in New Zealand

Norske Veritas (DNV)

where Dilmah is now the Number 1 brand. As confidence grew, Merrill

ISO 22,000 : 2005 - Food Safety Management system Certifying

took Dilmah into other countries with which he had long-term connections.

body: Det Norske Veritas (DNV)

He had traded into Russia since his days at A F Jones in the 1950s, had

•

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visited Moscow many times and so had many contacts. He managed

for ethical trading policies, Dilmah stands a far stronger chance than most

to open up the market for Dilmah and from 1988 to 1997 was such

of winning new customers. After all, its range of teas offers everything

a major supplier in the country that his distributor became a very large

the discerning customer seeks out - quality, choice and consistency, but

and important company. But the next few years brought all the massive

above all a concern for those who grow, pick, manufacture, process and

problems and upheavals of the break up of the USSR; stocks were hi-

pack the tea. It is a tea that quenches the thirst and revives the spirit but

jacked; huge sums of money were lost; the ruble crashed; new stock sat

also allows each and every one of us who drinks it to help Merrill give

unsold in warehouses. But in 1999, once the situation had become more

back to his workers, his community, his nation.

settled, Merrill decided to try again and, although the Russians now buy more branded teas from British companies and bulk teas from Vietnam, Dilmah’s market share is growing. Other East European markets are also

The Modern Marketplace

showing signs of growth, especially in Poland where Merrill had kept in touch with his friends over the years. He found a new distributor and

Retailing today is ruled by a few huge companies that wield enormous

despite the fact that Dilmah is more expensive than other teas available,

power internationally. They have stores all around the world, they dictate

sales are increasing.

prices to the supplier and are driven by one thing and one thing only – profit! Some define this as a “pathological pursuit of profit and power”,

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Similarly in Hungary, the Czech Republic, Slovakia, Bulgaria, Romania,

while others argue that these vast supermarket companies offer their

Ukraine and Estonia, sales are increasing. Chile is also a very good

shareholders better value and better returns, but that comes down to

customer, as are Japan, China and Taiwan. North America and Europe,

the same thing. Whatever the motive, the effect on the small supplier

including Britain, are harder nuts to crack but Merrill is determined

and on the ethics of the modern world is devastating. Giant retailers are

and is constantly seeking out the best people who can open doors to

locked in a public battle for supremacy using prices as their only weapon.

supermarkets, foodservice companies and hotels. With an increasing

In some markets over the years, Dilmah has been denied the ability to

interest in tea around the world, a greater awareness among the

increase its retail prices for a two year period despite clear justification of

consuming public of different tea origins and categories, and a real concern

the increased costs faced by the company. Meanwhile, the big retailers

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The Story of Dilmah Tea

increased their margins! Suppliers are also forced by the supermarkets to pay for advertising and promotion, funding such offers as ‘buy one get one free’ and free gifts worth almost as much as the product, and refusal to cooperate means the deletion of their products from the store. Any companies wishing to reach existing customers and find new ones need to sell their products through the supermarkets chains, but they face a daunting task. How has Dilmah survived the battle with the supermarkets? By holding steadfastly to its belief in quality, freshness, reliability and ethical trading. Dilmah knows that consumers around the world today want a tea that not only tastes wonderful but that is plucked, processed and packed by workers who are treated fairly. Some companies use ethics as a marketing ploy; everything Dilmah does is driven by its philosophy of ethical trading. In Dilhan’s words, “Ethics are an obligation, and not a marketing strategy. Consumers today are expected to pay a premium for so called ethical trading.That is wrong, because ethics must be an integral element of every product and must demand total commitment to sustainable, ethical behaviour in the business model. Failing to do so makes a business a parasite, extracting benefit from the community but giving nothing back.” Dilmah offers a tea that gives consumers confidence that they are buying an ethical product that has been manufactured and packed to the highest possible standards.

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Dilmah Innovations in Hospitality

Competition is designed to change that by recognizing skilled brewing of tea, iced tea, and innovation in tea based beverages. In bringing

Sri Lankan Tea Company, Dilmah, has traditionally taken the lead in

these aspects of tea into focus, the competition is expected to foster

bringing innovation to a global tea category that has suffered decline as a

greater interest in quality tea, and greater respect for this wonderful

result of commoditisation and multinational dominance. Signature events

beverage. The aim of the Dilmah Tea Sommelier programme is to

such as the Dilmah Thé Culinaire, Dilmah Tea Sommelier, Dilmah Real High

share with hospitality professionals and through them with people

Tea, The Chefs & the Teamaker and Tea in Five Senses are innovations in

around the world, the experience of the finest quality Ceylon tea.

the tea category that seek to educate and inspire hospitality professionals to offer their guests a completely new tea experience. The events foster

Dilmah Real High Tea - The tradition of afternoon High Tea is said

greater interest in quality tea, and greater respect for this healthy, natural

to have begun in the 18th Century, aided by Anna Maria Stanhope,

and versatile beverage.

Duchess of Bedford who invited friends to tea with cakes and pastries at 5 o’clock in Belvoir Castle. The modern interpretation of Afternoon

Dilmah Thé Culinaire - Thé Culinaire marries tea as an essential

Tea is compromised by an over emphasis on food, forgetting the

ingredient in food where professional chefs in the industry compete

central element - tea. Dilmah Real High Tea made its debut in 2007 and

and showcase their cooking skills and creativity using the finest Ceylon

continues in an endeavour to bring pleasure through the understanding

Tea as a base in producing a complete meal par excellence. The Thé

and appreciation of Quality, Freshness, and Variety in tea. Real High

Culinaire event is created to integrate quality tea - not just any tea - into

Tea also aims to enhance that pleasure with tea gastronomy, to offer

the lifestyles of consumers. The programme is designed to encourage

tea aficionados a truly enjoyable High Tea, that shares the story in

greater awareness and understanding of real tea amongst chefs and

each tea, offers the tea perfectly brewed and elegantly presented,

hospitality professionals generally, by offering real tea as an ingredient in

accompanied by sweet and savoury cakes, pastries and sandwiches

their culinary efforts.

that are harmonious in taste.

Dilmah Tea Sommelier - The Tea Sommelier Competition is a showcase

The Chefs & the Teamaker - In celebration of the 21st Anniversary

of skill and creativity in producing exceptional cocktails, mocktails and

of Dilmah in 2009, the family tea company launched an innovative

traditional hot beverages using Ceylon’s finest tea. The competition is

programme that fulfils the objective of integrating tea, the 21st century

designed to harness the skills of beverage professionals in the hospitality

beverage, into modern lifestyles. In July 2008, eight celebrated chefs

industry to celebrate quality, variety and innovation in tea. After water,

and restaurateurs from prestigious Australian establishments visited

tea is the most consumed beverage on earth and yet knowledge of

Sri Lanka for a tea adventure which became ‘The Chefs and the Tea

tea, its preparation and variety, is severely limited amongst hospitality

Maker’ series. During their tour the chefs were inspired to produce

professionals and tea consumers alike. The Dilmah Tea Sommelier

four tea infused food and beverage recipes each and collaborated to produce a collection of recipes featured in a book that was launched

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at the 21st anniversary events held in Australia. Continuing the success of the Australian event, the Global event was launched from the 16th 27th of July, 2010. This brought together celebrated chefs from over 12 countries. Tea in Five Senses - ‘Tea in Five Senses’ builds upon a notion that lies at the heart of Dilmah - that fine tea is an indulgent pleasure, and an experience to be savoured not just in taste, but on the eye, the nose and only then on the palate. In the fifth sense, the tranquility in tea is magnified. By pairing tea with music the five senses are utilised for a truly indulgent tea experience. In the same way that harmony of flavour on the tongue produces pleasure, the relationship that exists amongst taste, aroma and sound, is beautiful in its harmony.

Dilmah School of Tea The Dilmah School of Tea was established in May 2009 as a tribute to Dilmah Founder Merrill J. Fernando who celebrated his 60th year in tea. The School of Tea has the objective of sharing the Teamaker’s passion for tea with tea drinkers and tea aficionados engaged in enjoying and serving tea around the world in order to facilitate their greater understanding, appreciation and awareness of tea. First International Tea School - In 2009, the world’s leading centre of culinary and hospitality excellence - Institut Paul Bocuse and Dilmah announced a partnership in establishing the first International Tea School. The partnership is designed to inspire passion in tea through knowledge of the artisanal aspects of tea. Sessions of the School of Tea commenced in October, 2009 with modules covering the theory and practice of tea, in relation to its manufacture, brewing, presentation and appreciation.

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Reaching out to the world Marketing and Distribution Quite apart from the freshness, quality and integrity of Dilmah tea, consumers demonstrate their love and affection for a family-owned product which is backed by its Founder by adding his face to every pack of tea. No responsible person or Founder of a company would do so unless he is committed to the finest quality of his product and is able to guarantee that personally. That is the difference between all brands around the world – faceless brands as consumers call them - and Dilmah tea, the brand with the face to it. Merrill J Fernando 142

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There

was a time in the 1890s when Ceylon tea was not widely known or appreciated, a time when the

planters did what they could to introduce their product to new markets by running promotional campaigns at world fairs and exhibitions, serving it in dedicated kiosks and tea rooms, through catering contracts, and offering it as gifts to famous people and members of royal families. During those early years of tea production in Ceylon, no-one could ever really decide what should be done about advertising, and the indecision and lack of direction were compounded by two world wars, an economic slump around the world and a reduction in tea consumption because of rationing and lack of supply. During the first years of Merrill’s tea career, The Ceylon Tea Board started its campaign to open Tea Centres in various capital cities around the world. The Ceylon Tea Centre in London’s Lower Regent Street opened in 1946

The Story of Dilmah Tea

and further branches followed in Leeds, Manchester and Edinburgh in the 1950s. At their peak in the 1960s, the British centres together served over half a million cups a week. The campaign continued in other major cities and Melbourne opened in 1959, Copenhagen in 1961, Sydney in 1963, and Brisbane in1966. Then in the 1960s, came the establishment, in Denmark, Australia, France, New Zealand and Britain, of ‘Tea Councils’ whose role was the generic promotion of tea with financial support from India and Ceylon. And in Sri Lanka, the Lion Logo made its appearance. The purpose of the application of the Lion Logo to packets of Ceylon tea, introduced in the 1980s, is to guarantee to consumers that what they are buying inside those packets is 100% quality Ceylon tea. But, as with all such quality food marks, it is impossible to know whether the packets really do contain only quality teas from Ceylon or whether the packers and blenders using the logo have added teas from other

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origins to whatever Ceylon tea is in the blend. So it is difficult to quantify

blending and packing it in Sri Lanka and sending it out into the world

the benefits earned by paying a tax to the Ceylon Tea Board for the

market as a branded product, he has been able to develop a powerful

necessary quality testing and administration of the logo. Does the logo

and effective marketing strategy.

really promote Ceylon tea? Do the blenders and packers using the logo sell more Ceylon tea or do they just sell more blended tea from other

The first campaign to promote Dilmah ran in Australia, but it was

origins? Merrill has remained a severe critic of the use of the Lion logo

advice from New Zealand that helped shape the content of the first

which has only assisted overseas brands to increase sales while Ceylon

advertisements. Merrill’s New Zealand advertising agency told him, “If

tea imports dwindled. He has always had his own views on how best to

you maintain a quality product and have an honest face, then consumers

promote, market and sell Ceylon teas.

identify with what you eat and drink and will want to share in that.” He was at first reluctant but eventually agreed to appear in the first adverts

Dilmah’s Marketing Strategy

as himself, as the founder of the company, and as an honest farmer trying to sell an honest product to ordinary people. Once the campaign started, Dilmah’s sales and successes went from strength to strength

Early in his career, Merrill recognised the fact that, as suppliers of bulk

and the commercials that go out today on Australian and New Zealand

tea, it has always been difficult for tea producing countries to successfully

television have continued the family message and theme. Merrill

promote their product. Once the teas reach the consuming countries,

speaks to viewers from the tea estates and factories, alone or with

they are blended with teas from other origins and once the tea is in

Dilhan and Malik and sometimes with the grandchildren; the workers

the packet, the consumer cannot possibly know where the teas have

in the background are shown plucking the tea, an elephant or two

come from.

Advertising by individual growers is therefore pointless.

sways rhythmically along a pathway, children in smart school uniforms

And if the producing countries contribute funds to tea associations

scamper off along the path from the village to catch their school bus.

and tea councils in the consuming countries for the generic promotion

Merrill tells viewers that the workers are “partners in my business to

of tea, their money may well help to influence overall consumption but

bring you a perfect cup of tea and when you buy Dilmah, you bring

any increase will not necessarily benefit them directly. This is especially

smiles to their faces.” The message is simple - buy Dilmah tea, help

true if tea from a particular origin is more expensive than teas from other

put the money back into Sri Lanka to improve the workers’ lives, and

sources because the blenders will generally buy the cheaper origins.

also enjoy a really good cup of tea! Today, Australians everywhere

Sri Lanka has suffered over the years because of the high prices of her

recognise Merrill as ‘Mr Dilmah’ and stop him in the street to chat

teas and the comparatively low prices of teas from other tea producing

about the tea, or they write to thank him for his wonderful tea. He has

countries. But Dilmah, as a branded company selling only packs of tea

become a trusted friend.

that contain 100% pure Ceylon tea, can advertise and promote itself not

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just as Dilmah but as a pure Ceylon, single origin tea. This has always

Since those pioneering adverts, Dilmah has gone on to run a

been Merrill’s approach and by taking control of the bulk tea at source, by

comprehensive programme of promotion and advertising around the

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world, adapting the message to individual markets, keeping up to date with modern developments, changing fashions and shifts in social and economic situations. But, whether the campaign is to promote everyday tea bags, the gourmet blends or the new t-Series, the underlying message is always the same and the images very often include one or other member of the family and the stunningly beautiful tea plantations where Dilmah’s teas are grown. The following are just some of the outstanding projects that Dilmah has been involved in.

Sponsorship and Support of Others Companies all around the world use sponsorship of sport, literature, fashion, theatre, music and art as an effective way of promoting their products and Dilmah is no exception. But Dilmah’s approach is about far more than simply promoting its tea through such links. The company always seems to find a truly heart-warming way of lending support to others while at the same time telling more people about how drinking Dilmah tea can benefit the people of Ceylon. As well as giving so much back to the community through the MJF Charitable Foundation, the company has backed many campaigns over the years to raise and donate funds to charity or to events and activities that bring health and happiness to many. In 2001, Dilmah sponsored a visit to Colombo by internationally acclaimed classical pianist Raul Sunico who performed for free to raise money for the Ceylon Breast Health Centre which cares for underprivileged women. In 2002, Dilmah sponsored a collection of teapots designed or signed by celebrities who are great tea drinkers (including actress Glenda Jackson, performer Cliff Richard and author Arthur C Clarke) and auctioned them to raise funds to help restore the clipper ship Cutty Sark, now in dry dock in Greenwich, London. Built in 1869 to carry chests of tea speedily from

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China to the London docks, the vessel was diagnosed in 1997 as needing

Also in 2006, Dilmah and Landcare, an Australian environmental

major restoration work. The teapots ranged from craft pots from small

charity that looks after and improves bushland, beaches, native plants

potteries to sleek porcelain pots from such major potteries as Wedgwood

and wildlife, worked together with schools to improve water quality

and Royal Doulton.

and the condition of rivers, streams, wetlands and floodplains. The funds donated by Dilmah provided water quality testing kits so that

In 2006, Dilmah sponsored a photographic event to raise money for the

120 community groups and schools can monitor and care for the

Association for the Support of Vietnamese Handicapped and Orphans

quality of their local water supply.

(ASVHO). Banners in the street, flyers, a website and adverts placed in local newspapers announced the project and invited young people,

In 2003, ten cents from the sale of selected, specially-marked packs

including those with disabilities, to take photographs of friends, family

of tea sold in Australia raised $50,000 for the Starlight Children’s

and people in the street. The theme was ‘family and people in a rapidly

Foundation, an Australian charity that assists sick children and their

modernising Vietnam’ and the interest and enthusiasm was immediate.

families. In 2004, an on-pack promotion in New Zealand (involving

Cameras were handed out, the photos were judged by a panel of experts,

the donation of 30 cents from every pack of Gourmet Earl Grey and

prizes were awarded for the best eight shots, the prize winners gave half

English Breakfast tea) raised $20,000 and Merrill presented a cheque

their winnings to the ASVHO, an exhibition of all the work was arranged

for that amount to Hospice New Zealand which runs 37 hospices. As

and an auction of the images raised money from hundreds of visitors. A

well as raising those funds, Dilmah has also provided free tea to the

total of $6500 was presented by Dilmah and was used to purchase 75

hospices for the past 10 years.

wheelchairs.

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Tea and Sport Sport is another favourite of Dilmah’s sponsorship programme. And cricket is top of the list! The British brought cricket to the island in the 19th century and established British style cricket clubs with their own grounds and pavilions amongst the tea estates. Today cricket is very much a local sport and there is a natural link between Sri Lanka’s number one team and Sri Lanka’s number one tea. The tea company’s sponsorship of the national team began in October 2001 and during their first season together, the team won the ICC Champions Trophy and reached the semi-finals in South Africa where they eventually lost to Australia. Former Australian wicket-keeper, Ian Healy, once said of the connection between his favourite game and Dilmah Tea, “A game with so many tea breaks in it deserves Dilmah! It makes perfect sense…” And Tony Greig, former captain of the English cricket team agreed: “Sri Lanka’s cricketers came of age on tour in Australia and went on to win the coveted World

The Story of Dilmah Tea

The British brought cricket to the island in the 19th century and established British style cricket clubs with their own grounds and pavilions amongst the tea estates. Today cricket is very much a local sport and there is a natural link between Sri Lanka’s number one team and Sri Lanka’s number one tea. The tea company’s sponsorship of the national team began in October 2001.

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Cup….. Dilmah Tea has become the Sri Lankan cricket sponsor and in so doing has embraced the great love that Sri Lanka and Australia have for the game of cricket and tea.” Visiting players and officials from all over the world are often invited to the Dilmah factory to meet Merrill and sample the teas, and spectators are also rewarded for their loyalty as customers. In 2003, Dilmah organised an online auction of four autographed cricket bats, three of which were signed by the members of the international teams of Australia, India and Sri Lanka, and one that was signed by past cricketing heroes. The money raised paid for a day of cricket for one hundred underprivileged or orphaned Sri Lankan children at Colombo’s P Sara Stadium. The children, aged between 10 and 12 years old, were organised into teams and tutored by experienced cricket umpires and managers before playing four matches each and then meeting with some of the players from the national side. In 2004, a lucky father and son won special hospitality tickets to the Asia Cup and, so that they could enjoy every single minute of all the matches, were hosted for the nine day series at Colombo’s five star Galadari Hotel. So they got to meet the players, collected autographs, and even managed to have their photograph taken with their cricketing heroes. Memories for a young boy and his father to cherish! The competition was organised through the Dilmah Cricket Network website (launched in 2002) and part of the prize was a visit to Dilmah to taste the teas and understand a little more about how the beverage that keeps the cricketers going is bulked and packed. In early 2005, Dilmah also backed the National Cricket of the Blind (NCAB) tournament which involved nine teams from around the island in a series of matches held in different regions. Very sadly, one of the teams had to withdraw because several cricketers from the Blind School in Tangalle on the south coast had lost their lives in the Tsunami that struck Sri Lanka on December 26th 2004. The team was travelling to Colombo when the cruel wave hit the coast and washed its bus away. Dilmah’s sponsorship

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of the Blind Cricket Team continues and, as they bat and field using a

Tea, Food and Spice

special ball containing bells to help players locate it on the field, the skill of the players brings amazed admiration from supporters and spectators.

At last people are beginning to understand that tea offers the same wonderful range of taste experiences as fine wines, and for some

The link between Dilmah and the annual national tournament was

time, Dilmah has been leading the market in raising awareness of tea’s

strengthened when the MJF Foundation organised a special cricketing

connoisseur qualities. In 2005, Merrill invited Sri Lanka’s finest chefs

day in 2007 for two of its beneficiary organisations – School for Visual

to join him in bringing unusual and exciting flavours to the consumer.

and Hearing Impaired, Moneragala and the School for the Visual Impaired

They were each challenged to devise a ’Menu Dégustation’ featuring

at Ratmalana.The teams were invited to play against each other at the

speciality teas from the Dilmah range as ingredients in marinades,

Mercantile Cricket Association grounds in Colombo watched by all the

sauces and reductions, flavoured sorbets and petit-fours. Judges

pupils and staff from the two schools. The highlight of the day for the

included food industry professionals, and prizes were awarded for

teams was meeting Merrill J Fernando and the Guest of Honour, former

composition, creativity, preparation, appearance, service, practicality

World Cup winning captain and Chairman of Sri Lanka Cricket, Arjuna

and, of course, taste. In March that year, a similar ‘Thé Culinaire’ contest

Ranatunga. During the lunch break, they also met Sri Lankan international

took place in Warsaw and chefs from the city’s top seven restaurants

cricketers, Michael Vandort, Jehan Mubarak and Kaushalya Weeraratne.

stunned guests with their innovative and creative menus. The teas

The event coincided with Merrill’s 78th birthday and later that evening, the

that featured in the winning menu included Dilmah’s Ceylon Orange

two school groups were hosted to a celebratory dinner and an awards

Pekoe, Jasmine Green, Ginger Spice, Mediterranean Mandarin, Earl

ceremony at which Merrill was presented with a surprise birthday cake.

Grey, Lapsang Souchong and Ceylon Cinnamon. Indonesia enjoyed

Before returning home, the children from Moneragala spent the following

its Thé Culinaire in 2006 at Jakarta’s Ritz-Carlton hotel and the week-

day at Dehiwela Zoo.

long adventure in tea offered visitors the opportunity to view and taste rare and unique teas such as the First Ceylon Souchong and

With such an obvious link between tea as a healthy drink and sport, cricket

the First Ceylon Camellia Flower Tea. Guests were served hot tea and

is not alone in enjoying the benefits of Dilmah’s generosity and support.

iced tea cocktails such as Dilmah Sencha with Chivas and Cointreau,

On 28th September 2003, The Dilmah Football Cup was inaugurated in

and Dilmah Earl Grey Ice Cream t-Shake. Chef William Wongso’s

Vietnam and involves Hanoi High Schools in an annual football competition.

imaginative menu demonstrated perfectly how speciality teas can be

Dilmah tea is offered free to the players, organisers and guests during the

used as a gourmet ingredient in culinary treats such as ‘puff pastry

competition and Dilmah awards bonuses to the top four teams and prizes

baked essence of Kampung chicken’ and ‘Foie Gras and Morel with

to the best player, the best style team and the school with the highest

Dilmah Ceylon ‘Young Hyson’ green tea’.

number of supporters. Similar competitions in Norway and Georgia were also supported during the World Cup in 2006. In 2004, Dilmah tea

In February 2007, with the cooperation of the Chefs’ Guild of Lanka

refreshed tennis players and spectators during the Federation Cup, the

and World Association of Chefs’ Societies (WACS), Dilmah inaugurated

International Tennis Federation’s international competition for women.

the first National Tea Sommelier competition. Held at Waters Edge

With Russia an important customer of Dilmah, it was gratifying to watch

Country Club in Colombo, 28 participants from top hotels around the

the Russian team win for the first time. And in 2006, Russian ice skating

world competed to create tea based cocktails and mocktails. The

champion, Evgeny Plyuschenko became the sporting face of Dilmah tea.

winner, Jeewanthi Adhikari from the Taj Samudra Hotel, Colombo went

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on to represent Sri Lanka at the Asia Pacific Dilmah Tea Sommelier Competition in March 2007. Judged by a panel of distinguished restaurateurs, chefs and wine sommeliers, each contestant was asked to create a tea based beverage that was assessed for its taste, utilisation of tea, creativity, innovation, presentation, technique and timing. The winner was once again Jeewanthi Adhikari and she went on to represent Sri Lanka at the Dilmah Tea Sommelier World Championship in Poland. To sum up the philosophy behind these exciting competitions, Merrill explained, “Dilmah represents authenticity, ethics and genuine innovation in tea, and the Tea Sommelier championship reflects those values by promoting excellence in the art of preparing tea and tea based beverages. It also brings the skill of the world’s finest culinary professionals to tea. That combination of culinary skill and the finest tea on earth will only help develop the image of Ceylon tea.” And Dilhan added, “The Dilmah Tea Sommelier programme is our tribute to nature’s healing herb. It is also

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a manifestation of our belief that tea is the beverage for the 21st century

2006 and ran alongside an on-pack fund raiser which resulted in a

– as much for its healing and protective properties as for its variety,

donation of $25,000 to Hospice New Zealand’s 37 hospices.

range of indulgent taste, flavour and aroma experiences.” Sri Lanka was once the world’s largest exporter of cinnamon and was

The Health Message

also famed for its ginger and black pepper. So what better location for a Spice Festival at which visitors could sample some of those famous

Like all tea companies, Dilmah enjoys telling its customers how good

flavours. The first such event in October 2005, held in Colombo, was

tea is for all of us. We now know from epidemiological and animal

sponsored by Dilmah and combined music, dance and spiced dishes

studies that all types of tea can help protect us against certain

from all around the world in a spectacular celebration of colour, flavour

forms of cancer, especially oesophageal, oral, lung, stomach, liver,

and fun. A competition to create the best Chai using Dilmah’s variety

colon and skin cancers. Tea may also help to protect our hearts and

of spice-flavoured teas produced the winning recipe of ‘Ginger and

circulatory systems, inhibit the development of cavities in teeth and

Cinnamon Sp’Ice’. Meanwhile, in New Zealand, celebrity chef Jo Seager

gum disease, boost the immune system, reduce the harmful effects

met Dilmah’s challenge to involve the New Zealand public in creating a

of some bacteria, help to ward off the effects of Alzheimer’s disease,

delicious tea bread or fruit cake recipe that included Dilmah tea. The

offer beneficial effects to diabetics, and help our bodies fight other age-

cookery contest was part of World Hospice and Palliative Care Day in

related diseases. It seems that tea can also help us sleep better since

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one of the amino acids in tea, theanine, appears to improve the quality of sleep and the mental state upon waking. On-going studies are bringing us more and more good news about how just beneficial tea can be to our health and well-being and this is helping to increase consumption. However, because of government regulations and controls, tea companies have to be quite reticent in their use of on-pack messages about tea and its health benefits. Dilmah strengthens the health message by using words such as ‘goodness’, ‘pure’ and ‘natural’ on its packaging, in its publicity and when talking directly to customers. It is obviously important that Dilmah’s marketing team and its agents and distributors around the world know about and understand the latest findings resulting from tea and health research. To ensure that relevant information is passed on, articles on tea and health appear regularly in Talking Tea, Dilmah’s in house magazine, the most recent findings are posted on the Dilmah website, and when the Dilmah team comes together for conferences, specialist speakers are invited to bring everyone up to date. When talking about tea and health, the message needs to be conveyed in everyday terms that ordinary people can understand, and so the healthgiving benefits of tea are often compared to the beneficial properties of the foods we eat on a daily basis. Fruit and vegetables provide a clear point of comparison and we can now tell consumers that tea has a higher antioxidant content than many fruits and vegetables. The benefit of consuming plants that contain antioxidants is that they encourage new growth of tissue in the human body, they are a source of energy, and they provoke the detoxification of bad chemicals generated by our bodies or absorbed, eaten and drunk by us. But to gain the maximum from the consumption of antioxidant-rich foods, those foods must be fresh or the antioxidant activity begins to diminish. Tea is no exception and the fresher the tea, the more powerful the antioxidants when the tea is drunk. Most teas consumed by the average tea drinker are at least

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10-12 months old, having been stored in warehouses in India, Sri

quick fix solutions of new breeds of data-based marketing managers.

Lanka, Africa, Indonesia, etc, then transported by container ship from

Have they walked the markets? Have they dwelled in-depth on traders’

warehouses in the country of origin to warehouses in the consuming

issues? Have they identified regional differences? Have they observed

country, from the warehouses to the blending facilities, and then, once

consumers at stores? Have they studied the store and the shelf?” If

inside packets, cartons and tins, back to the warehouse to await

the answer to those questions is “no” how can a company understand

delivery to the customer. Dilmah teas, in contrast, are picked in the

its individual markets? Dilmah team members know they must ‘walk the

morning, bulked and transported within a day or two, packed into tea

markets’ and stay in touch with the consumer.

bags and packets of loose tea in Colombo a couple of days later and shipped within the week. The longest part of the journey is the sea

Outside Sri Lanka, in over 100 countries where Dilmah teas are sold,

voyage, which varies according to destination, but the cartons, tins

there is a vast network of sales agents and distributors who drive the

and packets reach the supermarket shelf within 2 months, bringing to

business, visiting existing customers, finding new markets, extending and

the customer tea that tastes fresher because it is fresher!

perpetuating the family oriented, reliable and honest ethic of Dilmah teas. There is a very close bond between the team at head office in Colombo and the vast extended family of partners, agents and sales staff who sell

The Marketing Team

the teas abroad. In some markets, distributors have taken the initiative and developed their own way of reaching more customers. In Poland,

In Sri Lanka, the sales and marketing team at head office are constantly

for example, Dilmah’s long-term distributor Tomasz Witomski took on the

driving and co-ordinating the work of Dilmah around the world -

challenge of bringing high quality tea to the Poles shortly after communism

creating new advertising campaigns, writing the script for television

ended and, in 2002, with his wife Julita, introduced the Fine Tea Lovers’

adverts, arranging sponsorship deals, setting up partnerships with

Club. They felt that advertising alone was not enough to attract new

charities, and co-ordinating radio, television and press interviews.

customers and wanted to try and raise the profile of Dilmah in the media.

And the Fernandos themselves keep in very close contact with

But it is illegal in Poland to mention brand names outside of advertising.

their customers by phone calls and visits to supermarkets, events,

So they set up the Fine Tea Lovers’ Club, “patronised by Dilmah”, and

promotions, sponsorship activities to chat, answer questions and

it succeeded in attracting a wide-ranging group of tea lovers, while at

show support. They have a policy of talking to ordinary people,

the same time enabling them to promote quality and variety, and also

keeping in touch with latest trends, trying to understand what the

allowing the media to talk about Dilmah as patron. The Club is now active

consumer really wants. This is what Dilmah’s Director Sales, Roshan

in several cities and club members enjoy regular meetings, presentations

Tissaaratchy calls “walking the markets”. He says, “Each market

given by special guests, tea tastings, discussions about the health

is a challenge with its own peculiarities and specialties and it is

benefits of tea, and events that link tea to art, literature and music. As the

always a refreshing and motivating experience to work with teams

Club has grown, it has added electronic membership cards, computer

of professionals in establishing a direction and plan for the brand….

access, a website, a library of books on tea, and special benefits and

Advertising campaigns and excessive ‘above the line’ budgets are the

offers to Club members in Dilmah Boutiques.

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In 2003, Dilmah brought together representatives of this strong team

do not need aid, we need fair trade from developed nations”. To remind

at its first ever Dilmah Global Partner Conference at the Trans Asia

everyone working for the company of the principles that underpin the

Hotel in Colombo. After a tour of the factory and tea tasting room,

work of Dilmah, the company’s Five Pillars of Dilmah were announced at

and a colourful opening ceremony of welcome speeches, dance and

the 2005 conference. The family pledged to follow principles of Quality,

traditional music, the two day conference worked through all the crucial

Tradition, Ethics, Customer and Integrity. It is this philosophy that is

issues of guiding principles, global trends in tea drinking, marketing

bringing Dilmah recognition as a company with a conscience all around

issues and campaigns, the product range, what makes Ceylon and

the world.

Dilmah tea special, the charity work of the MJF Foundation and all the aspects of trading, promotion and business that make Dilmah what it is.

In 2009, Dilmah turned ‘21 years young’ and the celebrations began in

At the second Distributor Conference in 2005, Dilmah introduced a new

New Zealand and Australia – Dilmah’s first two market in 1988 - with a

reward scheme for distributors - the Founder’s ‘3R Global Distributor

series of consumer events and visits by Merrill during which he travelled

Award’. This is presented for Results, Recognition and Rewards and

around the countries to meet customers. His main objective was to thank

consists of prizes such as free holidays in Sri Lanka at the company’s

consumers for giving his fledging company (and what was then such

new Tea Trails luxury bungalows, rebates on sales and free stock. The

an audacious idea) a chance. It was consumers in Australia who helped

awards are judged in various categories – Achievement of Purpose,

establish Dilmah there by writing to Coles Supermarket buyers shortly

Import Value over US$ 1 million, Best Performance in Emerging

after the launch of the new company to express their appreciation of

Markets, Best Performance for New Products, Innovative Marketing,

the quality of Dilmah teas. At a time when Merrill faced extinction due to

Special Achievements and Innovative Merchandising.

aggressive discounting by his multi-national competitors, those letters ensured the survival and growth of Dilmah. During his visits, Merrill also

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The message that Dilmah wants Dilmah global partners to take back

took the opportunity of restating the founding values of Dilmah that are

home with them from conferences and to remember in every single

embodied in the Six Pillars. And an exhibition of images shared the

moment of their work is that Merrill, Dilhan, Malik and the staff are all

Dilmah story with photos of the tea business from plant nursery to tea

working to one goal – to offer the customer what he or she wants but

tasting, of the work of the MJF Foundation, of Dilmah Conservation

also, in Merrill’s word “to get the wealth rightfully back to our country. We

projects and the various concepts in tea innovated by Dilmah.

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The magic of ceylon tea Ceylon’s Teas and Plantations Nothing can capture the essence of this natural, beautiful tea country more clearly than a cup of Ceylon’s finest high grown tea. Reflecting the art of the tea maker, fine Ceylon Tea also captures the magnificence of nature in a cup of calm and healing. Dilhan C Fernando

The

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tea growing mountains of Sri Lanka have a breathtaking

What is it that makes Ceylon tea so markedly different from teas grown elsewhere in the world? It is the soil, the climate, the cool moist air, the seasonal monsoons that drench the land twice a year, the differing altitudes and various cultivars of the tea bush that are suited to the different local conditions, the particular manufacturing process employed in the factories, the skilful handling of the leaf – all these play a part in creating the magic of Ceylon tea.

Life and Work on the Plantations

beauty that places them among the island’s most

memorable locations. Here in the country’s southern central mountain

Since the days when the British brought Tamil workers from southern

range, the bushes wrap themselves around the contours of the gently

India to Ceylon to harvest the coffee crop, the plantation workers have

curving slopes, clothing the land in a perfectly-tailored coat of green. Here

mostly been Tamil. The families are provided with free housing on the

and there, the rich red soil reveals its role in holding fast the roots and

plantation and while the women work as pickers, the men carry out the

nurturing the essential leaves while waterfalls, rivers and craggy outcrops

heavier work of pruning, weeding, and general plantation maintenance,

add texture to the rolling landscape, holding the gaze of visitors as they

or work as factory operatives to actually manufacture the tea. Families

marvel at such perfection.

are also provided with electricity, water, childcare, medical care and

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a small plot of land on which to grow essential vegetables and rear livestock. There are crèches for the babies and schools for the children and each morning and afternoon, groups of white-clad school children can be seen running along the pathways between the tea bushes on their way to and from their classrooms. One large plantation, capable of manufacturing one million kilos of tea every year, employs roughly 1200 workers and supports anything up to 6000 people living on the estate. Plantation workers generally have a better standard of living than workers in other industries and, whereas other plantations meet the essential obligations, MJF Group actually go much further than local legislation demands. They care for their workers from cradle to grave, treating them as partners in the business. The provision of medical care is obligatory, but MJF Group builds new and better hospitals, funds clinics and eye-care units, it provides ambulances, transfers serious medical cases to larger hospitals when necessary and pays the costs, builds shelters for abused women, pays for the children to watch special cricket matches and funds specialist equipment for the Scool for the Visual and Hearing Impaired.

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Each plantation is divided into divisions and the division manager takes overall control of the supervisors and teams of workers – known as ‘gangs’. Two field officers oversee the work of each gang of between 20 and 30 pickers and every morning, jobs are assigned according to the work that needs to be done, the amount of plucking required, the quantity of flush that is ready to be picked. The plantation manager also lives on site and is provided with a bungalow, a car, a driver and necessary staff. His work is absolutely key to the success of the estate. He needs to have a deep understanding of the workers’ culture, religion, family structure, attitudes to education and health, work and social life. Just as in the pioneering days of tea planting, the manager’s role has to be more than simply that of ‘boss’ if he is to produce quality tea and run a stable, successful workforce. MJF hold shares in three plantation groups – a controlling interest in Kahawatte Plantations Ltd and a significant stake in Talawakelle Plantations Ltd and Elpitiya Plantations Ltd.

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MJF Holdings works constantly to improve conditions for the families who

estates have been provided with IT centres. Two Government schools in

live on the gardens. At Elpitiya Plantations Ltd, children who gain high

the Tientsin and Dunkeld areas have been adopted by the Foundation

marks in their Year Five examinations are rewarded with uniforms, exercise

to support the infrastructure and quality of education for more than 700

books and shoes by the MJF Charitable Foundation, and retired workers

children and educational scholarships are awarded exclusively to children

(who stopped working at 60 years of age after 25 years of working on the

of plantation workers and staff – this includes the first ever admission

estate) are being given free mid-day meals. On many of the tea estates,

of the son of a plantation worker to Sri Lanka’s Medical College. At

the Foundation has built Child Development Centres where children of the

Houpe Estate, part of Kahawatte Plantations Ltd, the previously rather

plantation workers are cared for, fed and nurtured through their pre-school

dilapidated plantation hospital was upgraded with money from the MJF

years with a holistic programme that involves nourishment, security and

Foundation and now provides care facilities for 3200 plantation workers

affection, mental stimulation and motor skills development. Merrill and his

and a further 2000 people from other nearby plantations and villages. A

sons believe that, with careful planning and this kind of care, the future of

Specialised Eye Care unit at the Dickoya Government hospital provides a

these young children can be significantly influenced and improved. The

free service to a large number of local residents, most of whom live and

Child Development Centres offer pre-school care for almost 3500 children

work on the tea plantations. And more than 250 worker housing units on

under the age of 5 years. Midday meals are also provided for these children

Dilmah plantations have been improved and 25 drinking water projects

on more than 30 of the plantations. Special classes provide tuition in

have benefitted 800 families.

English and Maths for children, and primary schools for 300 children in the tea plantation districts have been built. Government schools on Dilmah

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For Merrill, the welfare of the workers is a huge responsibility since, in his own words, they are “my partners in my mission to bring you the finest tea on earth”. By taking a financial interest in the plantations, MJF Holdings Ltd can ensure that the tea is of excellent quality and that the profits can be ploughed back into the plantation and the workers’ lives so that they benefit directly from the success of the estates and of Dilmah Tea. There really is no fairer way to run a business than that.

The Tea Growing Regions From the lowest sea-level gardens in the south western coastal district of Galle, the bushes scramble upwards to heights of 6000 feet in Nuwara Eliya. In the steamy coastal plains, the bushes flush all year and are plucked every seven or eight days. In the cooler hill country, the plants are slower to push out new shoots and allow their leaves more time to develop and concentrate a more subtle flavour and brightness. The island’s teas are harvested throughout the year but their character and quality change in the different regions according to variations in local weather conditions. Three differing altitudes and six main areas produce teas with distinctive individual characters dependent on climate, soil types and the manufacturing methods used. The low areas, where tea grows from sea level to 2000 feet, yield teas that are strong and coloury but lack the distinctive flavour and brighter fresh taste of the higher grown teas. The mid country teas grow at elevations of between 2000 and 4000 feet and give a richness of flavour and good colour but are less powerful than the low growns. The high grown teas, planted at altitudes ranging from 4000 to 6000 feet, are the best that the island offers. They are flavoury and aromatic, more subtle and multilayered in personality, and give liquors of a lighter golden colour than teas harvested lower down the slopes. The regional names – Galle, Ruhuna, Ratnapura, Dimbula, Uva, Nuwara Eliya and Kandy – are synonymous with quality teas that are well known around the globe and sought after for the flavours and aromas they each offer.

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Sitting on the south western edge of the island at a distance of approximately

Sri Lanka’s Tea Plants

120 miles from Colombo, Galle is an area famed for its lace, fish and coconuts. It was once the main port of the island, exporting cinnamon and ivory to the

The Tea Plant, known in Latin as Camellia sinensis, is an evergreen shrub

Romans, Greeks and Arab nations. Its teas are classed as low growns and

that produces thick, sturdy, shiny leaves with a slightly serrated edge,

give good colour and a strength that is popular in Western Asia, the Middle

and delicate, lightly perfumed, white flowers with vivid yellow stamens.

Eastern and CIS countries. A little further to the north and slightly inland, the

A native of China and India, the bush is categorised into three varieties

warm and humid low growing region of Ruhuna (which includes the sub district

– Camellia sinensis sinensis (the Chinese subspecies), Camellia sinensis

of Ratnapura) is protected from the harsh winds of the south west monsoon

assamica (the Indian subspecies that grows as a native of Assam), and

by the Sinharaja Forest Reserve. The bushes growing here produce attractive,

the Camellia sinensis subspecies lasiocalyx (the Cambodian variety). The

large, very black-leafed teas flecked with silver and golden tips that give a thick

Chinese variety thrives on high mountains, and in the cold, misty climate

sweet, smooth liquor.

of such locations, pushes out leaves that grow to roughly 5 centimetres (2 inches) long. It grows happily in Tibet, China, the upper slopes of

Around the ancient royal capital, mid-grown Kandy teas are harvested from land

India’s Darjeeling region and of Sri Lanka’s tea growing mountains. The

originally cleared in the early 19th century for the coffee trees that were later

Assam variety prefers the hot humid conditions of lower-lying areas

replaced by tea. The smooth, light, almost malty teas drinks well without milk

and produces leaves that can reach a length of 35 centimetres (14

and were once popular in Australia, Europe, Japan and North America.

inches). It is found predominantly in Assam, Burma, the lower slopes of Darjeeling and the low, coastal regions of Sri Lanka.

On the eastern side of the central mountains, Uva produces mid and high grown teas whose reputation is recognised around the world. The desiccating

An 1886 report from Ceylon’s Royal Botanic Gardens at Peradeniya

Cachan wind that blows from the north east from July to September every

near Kandy refers to the first plantings of tea on the island and mentions

year causes the bushes to almost wrap themselves up against the harsh dry

the arrival of the Assam variety of tea bush in 1839: “In December

air and concentrate the powerfully pungent, mellow aroma and flavour into

1839, Dr Wallich, the eminent Indian botanist, at that time at the head

their protected leaves. These unique teas are highly prized throughout the tea

of the Calcutta Botanic Gardens, sent to Peradeniya seeds of the then

drinking world.

recently discovered ‘Indigenous Assam Tea’ and these were followed, in February 1840, by 205 plants. In May, the then superintendent at

To the west of the central spine of the mountain range lies Dimbula where the

Peradeniya, Mr Normansell, sent several plants to Nuwara Eliya, and

south west monsoon drenches the land during August and September every

a man was supplied to look after them.” Once the Ceylon planters

year to produce the best quality teas in January and February. The beautiful, wiry

had decided to press ahead with the planting of tea to replace coffee

leaves give body and strength, a powerful aroma and an almost oaky flavour.

in the 1870s, seed was acquired from Peradeniya and when demand outstripped supply, more seed was purchased from India. The bushes

The high growing region of Nuwara Eliya yields the finest of Ceylon teas that give

from which the seeds were gathered were a mixture of plants and

an exquisite golden liquor with a delicate perfume and a bright, brisk flavour. Up

hybrids resulting from the very first experimental plantings in Assam

in the highest peaks of the mountains, the weather is cool, cloudy and often

when both Chinese and local plants were used. The seeds that

damp, and the tea bushes grow more slowly amongst Cyprus and Eucalyptus

reached the Ceylonese plantations were therefore also a mixture of

trees. The leaf is plucked all year but the finest of these high grown teas are

Camellia sinensis sinensis and Camellia sinensis assamica.

gathered in January and February.

As the years have passed, the unpredictable gathering of seeds has

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given way to the more reliable production of cloned plants grown from leaf cuttings gathered from mother bushes. The parent plants are carefully selected for their best features and the cuttings are vegetatively propagated to produce reliable and high-yielding stock. The young plants are tended in nurseries in polythene sleeves and then, as they mature, are sheltered from too much sun by bracken shades. When they reach an age of between 1 year and 15 months, they are planted out on new plantation areas or are used to fill gaps where worn out, older plants have had to be removed. The baby bushes are left for two years before they are considered mature enough to have their new shoots and leaves gathered for tea manufacture and, once established, will go on yielding good leaf for up to 100 years. Over their lifetime, they are pruned every year or two in the lower areas and every 3-5 years at higher altitudes to encourage new growth and the bush is shaped so that a low flat wide area is available for plucking.

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Gathering and Manufacturing the Tea For the best teas, as the bushes ‘flush’ to push out their new growth, the pickers remove the first two young leaves and one new leaf bud. The speed at which new shoots appear depends on altitude, temperature, humidity, wind, sunshine and all the other variables that influence the plants. Each morning, the female pickers set off at 7 o’clock to harvest the leaf and bring it into the factories. Swathed in protective waterproof clothing to keep them dry from the moisture that clings to the branches and leaves, the women work their way gently through the fields, assigned to particular sectors of the plantations according to the readiness of the ‘flush’. Depending on the altitude, the ambient temperature and the quantity of rain that has fallen, the leaf is gathered every 5-12 days.

The women carry with them long slender wooden sticks which they lay on the ‘plucking table’ (the top of the bushes where the new tender shoots have formed) and use them as a guide to ensure that they take the same length of shoot from each bush and maintain an even level. The pickers’ nimble fingers try to avoid taking too much stalk, coarse leaf or twigs as those add only bulk to the leaf and not flavour. If less than 65% of the plucked leaf is made up of neat, high quality shoots of two leaves and a bud, the quality of the made tea will go down and prices will fall. Tea is harvested by machine in many parts of the world today but cannot achieve the quality of hand picked tea. So, in Sri Lanka, although hand picking is more labour intensive and therefore more costly, it allows producers to manufacture a better quality tea. Sri Lankan teas do much better in world markets when planters concentrate on gathering a slightly smaller quantity of excellent quality

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shoots and so are able to produce high quality teas that deserve and earn both high prices and respect. The freshly plucked leaf is carried on the pickers’ backs in baskets which, once full, are brought to a mustering point where the tea is carefully weighed, checked for quality and loaded onto trucks that carry the leaf to the factory. The target weight for a picker each day is 20 kg and for every kilo over that, they are paid a bonus. Between two and three thousand leaves are required to manufacture one kilo of made black tea. It is important that the leaf is not damaged and does not lie around for too long before the manufacturing process begins, for rough handling and too much time in baskets and bags can have a negative effect on the final quality of the made tea. Three times a day, trucks pull up at the factory with a new load of freshly plucked leaf which can be made into white, green, oolong or black tea. Most of the tea is grown on plantations that house, employ and provide benefits for the pickers, but some of the leaf is sold to the factories by smallholders who own their own land. Just as the pickers are trained to pick the best shoots, to bag it carefully, to make sure it reaches the factory quickly, so the smallholders also need to understand the importance of better standards, careful handling and fast delivery to the factory. Incentive schemes for better leaf are helping to encourage these essential improvements. Ceylon tea is traditionally black but some producers today also manufacture green, oolong and white varieties. Ceylon’s white teas, often called ‘silver tips’, are made from tightly-furled leaf buds from a particular varietal of the tea bush whose buds are longer and fatter than other types. These buds are gathered before they begin to open, and are dried for 2-3 days in the sun. White teas are expensive to produce and need extremely careful handling, so only small quantities are available. Ceylon green teas are made from freshly gathered leaves and leaf buds which are then steamed, rolled either by hand or by machine and dried. Oolong teas are made by withering, rolling, lightly oxidising (between 30%-70% oxidation) and drying leaves and leaf buds.

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Black tea is made from freshly picked leaves and leaf buds which are

teas from Africa, Indonesia, etc. (they included the UK, Canada, Australia

withered, rolled, 100% oxidised and dried. Two different methods of

and New Zealand) would not be seduced back to Ceylon by the offer of

rolling are available. The ‘orthodox’ rolling machines twist and press

similar CTC teas. He felt that the only way to attract new customers, and

the leaf, breaking the cell walls and allowing the natural juices from

possibly the old ones too, was by offering something better - traditional

the leaf to come into contact with oxygen in the air but maintaining

orthodox Ceylon teas. By steadfastly refusing to switch from orthodox to

large pieces of leaf. This ‘orthodox’ rolling evolved from the original,

CTC, Merrill was determined to bring quality back to Ceylon tea.

centuries-old, hand rolling used for tea manufacture in China, and is still the most popular method of preparing the leaf for oxidation in Sri Lanka. ‘CTC’ (cut, tear and curl) machines macerate the leaf to very

Black Tea Manufacture

small particles that brew very quickly and are generally destined for use in tea bag blends.

When the leaf arrives at the factory it is taken to the upper floors and laid out in withering troughs (previously ‘tats’ made from Hessian stretched

Some of Sri Lanka’s factories in the low grown regions of the island

over wooden frames) to lose some of its water content. When the leaf

produce CTC teas but when some of Ceylon’s tea producers turned

is fresh off the plant it contains approximately 78-80% water and after

away from orthodox manufacture in favour of this modern methodology,

withering it holds only 40-45% water. The leaves are spread in thin layers

it caused a good deal of heart searching and controversy. As the

to allow the warm air of the withering room to circulate for about 18 hours.

British pulled out of Ceylon in the 1950s and looked to Africa for the

In most factories, the process is speeded up by blowing warm air through

establishment of a new tea sector, the increasing popularity of the tea

tunnels underneath the wire screens that hold the leaf for about 6 hours,

bag and the consequent need for small leafed, quick-brewing teas led

depending on the ambient temperature and humidity. Care is needed, for

to the development of factories there that produced teas only by the

if the air pumped through the leaf is too hot, the leaf can dry too quickly

new CTC method of manufacture. Sri Lanka started its conversion to

and the natural changes in the leaf that are essential to a good quality tea

CTC in the early 1980s in an attempt to increase exports and profits.

cannot take place. Some factories now carry out regular weight checks

The Tea Board invested in CTC machinery and helped subsidise estates

throughout the withering process to make sure that they catch the leaf at

that switched to CTC production. But, in Merrill’s opinion, CTC ripped

exactly the right moment. Experienced factory managers also recognise

the heart and soul out of tea just as the machines ripped and shredded

the right smell and feel of the leaf but it is a subtle combination of science

the leaf. He recognised that if the multinational tea companies invested

and experience that achieves the best results.

in CTC production in Sri Lanka, the island would only be able to produce dust and fannings grades instead of the exquisite, traditional

When the leaves have become limp and soft, they are sent down chutes

large and broken grades that Ceylon was so famous for. That would

to the large orthodox rolling machines on the ground floor of the factory

mean turning their backs on Ceylon’s long tea heritage; it would mean

which twist and press the leaf, or to CTC machines which chop them

simply adding to the oversupply of cheap, lower quality teas already

into small particles. When manufacturing orthodox teas, the leaf is often

on the market; and, more importantly, it would mean losing traditional

put through the roller three times and, in some factories, is then also

markets in the middle east where the larger leaf teas are so popular.

passed through a ‘rotorvane’ machine which breaks and twists the leaf

Merrill knew that customers who had already switched to cheaper

further. The rotorvane operates rather like a mincing machine, its rotating,

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twisting blade breaking the leaf as it pushes it down a revolving metal

too much heat for too long will spoil the tea, while too little heat for too

spiral. When the leaf comes out of the orthodox, rotorvane or CTC

short a time will leave too much moisture in the leaf and so reduce its

machines, it is spread out on ceramic, concrete or aluminium slabs

keeping qualities. The ideal moisture content is between 2% and 3%.

in cool, humid air to ‘oxidise’ or, in old-fashioned tea vocabulary, to

The factory manager’s role in overseeing the manufacturing process

‘ferment’. This can take as little as 15 minutes in high grown regions

is obviously of prime importance but each and every worker in the

during the peak quality season, but may last from 30 minutes to 3

factory also needs to understand the different stages of the process

hours out of season when the air is cooler. It is at this stage that a

and where things can go wrong.

chemical reaction takes place between the oxygen in the air and the contents of the leaf; the leaf changes gradually from green to amber to dark coppery brown and the air is filled with the tea aroma we all

Tea Grades

recognise when we brew a pot of black tea. When the tea emerges from the dryer or oven, it is passed over electroWhen the oxidation process has gone on for long enough, the tea must

static rollers that draw out any unwanted fibre from leaf veins and

be dried and so goes into a large oven that dries trays of tea as they

stalks that add bulk but no flavour or quality to the finished tea. At this

move over a series of conveyor belts. Or the oxidised leaf is passed

stage, the black tea is still a mixture of large and small particles. Since

through a ‘fluid bed dryer’ (FBD) which blows a moving stream of tea

different sized particles of tea brew at different rates, it is important

through the hot air and ensures a more even drying. This crucial part

that each tin or packet of tea or each tea bag contains pieces that are

of the process, which seals in the flavour, needs careful monitoring as

more or less the same size, so the bulk dried tea is passed through

Since different sized particles of tea brew at different rates, it is important that each tin or packet of tea or each tea bag contains pieces that are more or less the same size, so the bulk dried tea is passed through a machine that shakes the leaf through vibrating sieves with different sized meshes and sorts it into ‘grades’. Once the tea has been graded, it is bulked and packed into sturdy paper sacks ready for transportation.

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a machine that shakes the leaf through vibrating sieves with different sized meshes and sorts it into ‘grades’. Once the tea has been graded, it is bulked and packed into sturdy paper sacks ready for transportation. Grade names vary around the world, but in Sri Lanka, the leaf is divided into leaf grades and broken grades as follows:

Leaf Grades Orange Pekoe (OP) – long, thin, wiry leaves which sometimes contain golden tip; generally, the liquor is light golden in colour Flowery Orange Pekoe (FOP) – long, thin, wiry leaves with lots of golden tip; expensive and high quality Pekoe (P) – shorter pieces than Orange Pekoe and less wiry; the liquor has more colour than Orange Pekoe Souchong (S) – bold, rounder pieces of leaf that give a pale golden liquor

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Broken Grades Broken Orange Pekoe (BOP) – smaller than the leaf grades, contains plenty of golden tip and gives good colour and strength Flowery Broken Orange Pekoe (FBOP) – better quality than BOP with lots of golden tip Broken Pekoe (BP) – slightly larger than Broken Orange Pekoe and gives less colour Broken Pekoe Souchong (BPS) – a little larger than Broken Pekoe and gives a lighter liquor Broken Orange Pekoe Fannings (BOPF) – smaller than Broken Orange Pekoe so brews more quickly giving good colour and strength Fannings – small particles that have broken off from larger leaf sizes; suitable for use in tea bags Dust – even smaller particles than fannings, used for tea bags

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The appearance and character of the different grades vary according to elevation. The leaf of the high grown teas is always browner in colour and lighter in liquor than the lower grown teas which have a jet black appearance. The high grown teas also have a smaller leaf as the bushes grow more slowly at the higher elevations.

The appearance and character of the different grades vary according

tea companies around the world so that they can decide what they wish

to elevation. The leaf of the high grown teas is always browner in

to buy. Private contracts between the producers and major international

colour and lighter in liquor than the lower grown teas which have a jet

tea companies mean that a factory knows what its customers need in

black appearance. The high grown teas also have a smaller leaf as the

terms of quality, appearance and quantity, and the buyers work very

bushes grow more slowly at the higher elevations. Merrill developed

closely through agents in the country of origin to achieve the standard

the very special Watte Range that exploits the synergies between

they require. Teas are tasted again and again to ensure that standards are

wine and tea and captures the ‘terroir’ of the four primary regions of

always met. When teas are sold, the teas have been tasted by the factory

peak Ceylon teas – ‘Ran Watte’ peak tea; ‘Uda Watte’, high grown;

manager, by the brokers who sell the teas, and by the companies who

‘Meda Watte, mid grown; and Yata Watte, low grown.

buy from the brokers; production samples, offer samples, and purchased samples are all tasted to make sure that the teas have not lost quality during storage at the factory, during transportation or at the warehouse

Reaching the Customer

after purchase. It is crucial that the tea is checked at every stage so that quality is consistent and the consumer is not disappointed. A tea

Once the tea has been manufactured and graded at the tea factory,

company can receive up to 10,000 samples every week and from those

each batch is tasted for quality and samples are sent to brokers and

will select the teas that offer the taste and appearance and size of leaf

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required for particular teas. In Dilmah’s tasting room, the tasters select, for

Always use fresh, cold water that contains plenty of oxygen, for the tea

example, the right small leaf for teabags for Australia or large leafed loose

cannot give of its best when brewed in water that is stale or flat or re-

teas for customers in the Arab states.

boiled. So each time tea is brewed, fill the kettle with freshly drawn, cold water. Soft water is best and if buying bottled water for the preparation of

In order to ensure consistency and quality, the tea factory must package,

tea, be sure to check that the pH of the water is around 7, and that there

label and store the teas carefully. Some of the very finest large leafed teas

are no added salts in the water.

are still packed in traditional tea chests but most teas today go into large multi-layer paper sacks which have an aluminium foil layer as well as tough

Choose a spotless teapot made of porcelain, bone china, stoneware,

paper to ensure that the bags are resistant to odours and water vapour and

pottery or glass. Silver pots look lovely but can hold onto the flavour of

are easy to palletise or stack on slip sheets for transportation on trucks and

tea previously brewed inside.

in containers.

Brewing Ceylon tea

To brew black and oolong tea Set the water to boil and when the water is almost at boiling point, pour

Different tea drinking nations around the world brew and serve their tea

a little into the pot to warm it. Swill around and then pour the water away,

in their own individual way. In western countries, the traditional method of

leaving a clean, empty, hot pot. Measure the tea into the pot, allowing

steeping loose leaf tea in a teapot has gradually given way to the dipping of

2.5-3grams for two cups of tea, pour on the boiling water as it comes

a teabag in a mug. In the US, despite a renaissance of interest in tea and

to a rolling boil, put the lid on the pot and leave to brew for 3-5 minutes

the establishment of hundreds of new tearooms all over the country, many

depending on the size of the leaf (the larger the leaf, the longer it will take

people still pour lukewarm water from a thermos jug onto a tea bag in a

to brew).

cup. In Russia, some still use their traditional samovar to prepare a very strong black tea that is then diluted in the cup with hot water drawn through

Oolong teas are best drunk without milk. Black teas will take a little milk,

a tap in the side of the samovar. In India, milky, sweet, spiced ‘chai’ is still

lemon and sugar to taste.

boiled up on street corners and railway stations and served to customers in little unglazed pottery, handleless cups. In France, a light brew is drunk without milk, in the UK, cold milk and rather too much sugar is stirred into

To brew white and green tea

the tea, while in Sri Lanka itself, hot milk is added. Because it understands how habits and preferences vary around the world, Dilmah Tea balances its

Prepare the water and the teapot in exactly the same way as for brewing

different teas to suit all these different markets. But, no matter how the tea

black tea but when the water has boiled, allow to cool to approximately

is served, there are certain golden rules to observe when brewing.

75º - 80ºC before pouring onto the tea. Boiling water can make green tea taste rather bitter and slightly cooler water allows a more gentle flavour

Buy a good quality tea and store it well in an air-tight container away from

to develop.

humidity, light and strong smells. Tea absorbs moisture and other aromas very easily so it is important to store both teabags and loose tea inside a

White and green teas are best drunk without milk.

container that will keep these enemies out.

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Dilmah’s family group MJF Group of Companies We are the only vertically integrated family tea company in the world, possessing expertise in every aspect of the tea industry, from picking and tasting to packaging and marketing. Merrill J Fernando

When

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customers in Australia, New Zealand, Russia and Poland. Merrill’s first independent company was established in 1962, a bulk tea trading company which, by 1977, was the fourth largest exporter of tea in Sri Lanka. It became clear to him that, in order to benefit from the success of his own company and to ensure that any wealth it created stayed in Sri Lanka, it was essential to establish companies that could provide all the services he needed. So, he bought into the plantation

Dilmah was launched in 1988, the brand had grown

industry when the gardens were made available in the 1980s so that

out of Merrill J Fernando’s determination to market

he could grow quality tea; as soon as he had invested in tea bagging

Ceylon teas that were grown, packed and marketed in Sri Lanka and

machinery, but was not yet ready to launch Dilmah, he established a

earned profits for Sri Lanka. The work that had gone before the birth of

tea bagging company that specialised in manufacturing own label tea

Dilmah under the name of Merrill J Fernando Company Limited laid the

bags; when he needed labels and cartons printed, he set up a print

foundations, established the demand, created links with loyal, long-term

company; when he required the services of a packaging company,

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The Story of Dilmah Tea

he created one; to meet transportation and haulage requirements, he established a travel and trucking company; and he invested in one of Sri Lanka’s largest tea broking companies so that the family business could become a truly integrated one. All the companies that MJF Group now owns function as independent entities, servicing Dilmah but also operating in the open market as profitable businesses. This allows yet more money to go back into the profits of the MJF Group which means that more can be given back to the workers and the community via MJF Foundation. It is a concept that really works. Today, approximately 10 million kilos of tea are exported by Dilmah to more than 100 countries and the company is rated amongst the top 10 international tea brands.

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Companies in the ‘MJF Group’ (MJF Holdings Ltd.)

Tea Export Companies Ceylon Tea Services PLC MJF Teas (Pvt.) Ltd. MJF Exports (Pvt.) Ltd. Dilmah Fine Teas & Herbs (Pvt.) Ltd. MJF Beverages (Pvt.) Ltd. Tea Sector Companies Forbes & Walker (Pvt.) Ltd. Kahawatte Plantations PLC Property, Transport, Packaging& Investment companies PCL Solutions (Pvt.) Ltd. MJF Travel & Trucking (Pvt.) Ltd. Dilmah Properties (Pvt.) Ltd. City Properties (Pvt.) Ltd. MJF Properties (Pvt.) Ltd. Merrill J. Fernando & Sons (Pvt.) Ltd. Timber Concepts (Pvt.) Ltd. Leisure Sector Companies MJF Leisure (Pvt.) Limited Tea Trails (Pvt.) Limited F&W Leisure (Pvt.) Ltd. Weligama Cape (Pvt) Ltd Strategic Partners with significant MJF investment: Printcare PLC Printcare Universal (Pvt.) Ltd. Packages Lanka Ltd. The Fortress Resorts PLC The Ceylon Spice Co (Pvt.) Ltd Joint-ownership Companies: Talawakelle Tea Estates PLC Elpitiya Plantations PLC Community Service (non-profit): MJF Charitable Foundation Dilmah Conservation The Ethical Tea Society MJF Media

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Printcare Plc

China, Kenya, Oman, Saudi Arabia, UAE, Iran Korea, Israel, Malaysia, Singapore, Papua New Guinea, Turkey, Pakistan, India, Bangladesh and

Although Printcare Plc is not a subsidiary of the MJF group it is an associate

Hong Kong.

company co founded by Merrill and where he still serves as non executive Chairman from inception.sted in the Colombo Stock Exchange Printcare

In following Merrill’s mantra, Printcare is socially and environmentally

shares has a sizable foat with the public.

responsible, taking care of the health and safety of its employees and

Initially this award -winning company was established to produce tea bag

making sure that waste products are either recycled or disposed of safely

labels and sachets for the tea trade, today it is much more than just a print

and well within world guidelines. The company’s headquarter complex

company. Selected as a Business Superbrand, Printcare is a leader in the

is fascinating to walk around – there are stylish committee and board

printing and packaging industries. Well known for being the global leader in

rooms, the staff canteen is friendly and comfortable and looks out over

tea bag tags and envelopes, supplying the worlds most reputed tea brands,

a superbly landscaped garden with bird cages and an orchid house,

Printcare is now a diversified group which is also a leader in printing and

production areas that are stacked with vast reels of paper, and printing

packaging for the apparel and FMCG sectors, security printing for the lotteries

machinery which is state of the art. There are many awards on display in

and telecom industries, printing and binding for the publishing industry, and

the reception, everyone is helpful and kind and there is a dynamic buzz in

specialized digital media services.

the air. Printcare meets a vital packaging need that was previously met by companies abroad and so it helps to keep product costs down and fits

As described elsewhere the company, was founded in the early 1980s by

neatly into the MJF philosophy of keeping profits inside Sri Lanka.

Merrill and K R Ravindran. The idea behind this strategic partnership between Merrill and Ravi developed from an understanding that the tea chest would gradually disappear (and it has for all but the most delicate teas) and that a

Printcare comprises the following seven companies:

more modern form of packaging such as light cartons and attractive packets would be needed. Printcare was the first company in South Asia to produce

Printcare Plc (PCL) which prints and finishes tea bag tags and envelopes,

tea bag tags and the first to supply such tags to world markets. Today, the

and produces tea tags and sachets for every type of bagging machine

company produces tea bags and sachets for every type of bagging machine

Printcare Universal Ltd (PUL) which prints and finishes cartons and labels

available and is the preferred tea bag tag supplier of most of the large tea

for the food and healthcare industry

brands around the world.

Printcare Packaging (Pvt) Ltd. (PCP) which produces packaging for the non food industry including cigerettes and the garment industry

190

Printcare is now a major player working out of two premises that cover a

Printcare Publishing (Pvt) Ltd. (PCP) which publishes books, periodicals,

nine acre site in the outskirts of Colombo and where offices and workshops

annual reports, brochures, leaflets and magazines

are equipped with state-of-the-art technology for offset, gravure, flexo and

Printcare Secure Ltd. (PSL) which prints scratch lottery tickets and pre-

screen printing processes. The company was floated on the Colombo stock

paid phone cards and other security products

market in 1995 and exports its products to nearly 25 countries, including

Printcare Pre Media Ltd (PPM) Offering digital pre press and pre media

Ukraine, Great Britain, Japan, Australia, New Zealand, Poland, Germany, Italy,

services, and offerinf packaging consultancy and audit services.

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The Story of Dilmah Tea

Printcare India Ltd (PCIL) which is a company located in India and produces tea bag tags and envelopes for the Indian tea industry.

PCL Solutions (Pvt.) Ltd. PCL Solutions (Pvt.) Ltd is the exclusive local agent for several world-class manufacturers of packaging machinery and material, offering packaging solutions for most industries while specialising in the tea industry. PCL Solutions is committed to upgrading technology and capabilities of local industries to compete effectively overseas. After sales support is first class - as the largest manufacturer of pre-packaged teas in Sri Lanka, the MJF Group has substantial technical and spares backup for its own needs as well as for customers. PCL Solutions (Pvt.) Ltd represents among others, Glatfelter (UK) teabag paper, Marden Edwards (UK) tea bagging machinery, Lock Inspection (UK) metal and needle detectors, Jung Woo (Korea) cotton thread, Gutman (Germany) teabag aluminium wire, NASA (Japan) tea bag machinery.

Timber Concepts Timber Concepts (Pvt.) Ltd was established in 2000 to meet the Group’s requirement for quality timber containers for presentation of its Dilmah Tea in hospitality channels. Equipped with state of the art machinery and skilled personnel, the company grew into the major supplier of timber containers to the tea industry. Having expanded into other sectors with its quality boxes for packaging and gift presentations, Timber Concepts underwent a major expansion in 2005 with the opening of an 18580 square metre production and warehousing facility. This facility and associated investments in personnel and technology facilitates its continued growth and development of new opportunities for its products.

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Forbes & Walker

Forbes Leisure

In March 2000, MJF Holdings Ltd., purchased Forbes & Walker Ltd.,

The MJF Group took its first steps into the leisure industry in 2005 and The

jointly with a consortium of Forbes & Walker Management & Staff.

MJF Group took its first steps into the leisure industry in 2005 and now

Forbes & Walker (Pvt.) Ltd, which is the holding company of Forbes &

has two resorts (Tea Trails, in the tea-growing hill country, and The Fortress

Walker Tea Brokers (Pvt.) Ltd, Forbes & Walker Commodity Brokers

Hotel on the coast near Galle), and a project at Weligama on the Southern

(Pvt.) Ltd. and Forbes Services (Pvt.) Ltd, was founded in 1881 by

coast of Sri Lanka – Weligama Cape Resort. Tea Trails offers tourists

James Forbes, a tea taster, and George Chapman Walker, a British

accommodation in four ex-planters’ bungalows in the stunningly beautiful

Army officer. The Forbes & Walker Group is one of the oldest broking

Western Dimbula tea region of the island. The Fortress is a newly-built

houses in Ceylon, and today is the largest. The Forbes & Walker

luxury hotel, designed in the style of the 300 year old Dutch fort that once

Group is primarily a tea broker, accounting for around 25% of all tea

guarded the south west coast of the island. Weligama Cape Resort will

offered for auction at the weekly Colombo auctions, although the

feature 40 luxury villas on the picturesque Weligama Bay with a residential

company also handles a sizeable share of Sri Lanka’s rubber, coconut

feel and butler service.

and spices sold through auction. Current Business of the Forbes & Walker Group is around Rs. 10 billion, mostly from tea.

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MJF Plantations Ltd. The MJF Group owns a majority share in Kahawatte Plantations PLC., which owns an extent of 12,620 hectares of tea and other crops. In addition to our own Kahawatte Plantations PLC, MJF Holdings Ltd., the apex entity in the MJF Group has become joint owners with two of Sri Lanka’s leading plantation management companies, by jointly acquiring and managing some of Ceylon’s Finest Tea Gardens. The two Plantation groups, Elpitiya Plantations PLC and Talawakelle Tea Estates PLC, account for over 5% of total Ceylon Tea production and include Rubber, Coconut and Oil Palm. The MJF Group’s plantation interests enable Dilmah to drive innovation in tea from the tea nursery and to produce and pack Ceylon’s Finest and Freshest Tea. Tea Gardens owned and managed by these companies are located in the High, Mid and Low elevational areas of Ceylon, producing a spectrum of flavours, grades and characteristics in tea.

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The three plantation companies - Kahawatte Plantations PLC,

Dessford

Elpitiya Plantations PLC and Talawakelle Tea Estates PLC - together

Somerset

produced just under 17 million kg of tea in 2009 – 6% of Ceylon’s

Tea production of 291 million kg in that year.

Mattakelle

Great Western

Palmerston Estates in the Elpitiya Plantations PLC:

Radella

Dunsinane

Bearwell

Bentota

Holyrood

Deviturai

Logie

Elpitiya

Wattegodde

Igalkande Katandola

The Talawakelle Tea Estates PLC owns an extent of 6,491 hectares

Gulugahakanda

and Elpitiya Plantations PLC 8,851hectares.

Habarakada Lelwela

In 2001 MJF Holdings Ltd., acquired a majority stake in Kahawatte

Talgaswela

Plantations PLC., which owns 16 estates in the Nawalapitiya

Mapalagama

and Kahawatte regions of Ceylon. The company controls 12,620

Fernlands

hectares, of land and directly employs over 9000 persons in the

Nayapana

production of tea, spices and rubber. Plantations in the Kahawatte

Meddecomra

Plantations PLC (tea, rubber & timber) Ekerrella Endane Houpe

Sheen

Hunuwella Opatha Pelmadulla Poronuwa Rilhena Wellandura

Barcaple

New Peacock

Craighead

Galamuduna

Imboolpitiya

Kataboola

Queensberry Westhall The Talawakelle Tea Estates PLC: Moragalla Pitiagoda

Ceylon Tea Services Ltd.

Walahanduwa Deniyaya

Ceylon Tea Services PLC is the largest exporter of branded tea

Handford

from Sri Lanka. The company is quoted on the Colombo Stock

Indola

Exchange (CSE - CTEA). The company pioneered the value-

Kiruwanaganga

addition of tea at origin. Tea has long been Sri Lanka’s biggest

and most important export, with direct & indirect employment

Calsay (Chelsea)

Clarendon

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in the sector exceeding one million persons. This public quoted

The Story of Dilmah Tea

Company, was incorporated with the express purpose of developing an export market for pre-packaged Pure Ceylon Tea, to ensure that all value-added benefits remain in Sri Lanka. The company has developed world class manufacturing capability in state of the art facilities for the production of Dilmah tea in a variety of presentations.

MJF Exports Ltd. MJF Exports (Pvt.) Ltd. is a long established tea exporter with an excellent track record of trading in expertly blended and original garden teas to blenders and packers world-wide.

MJF Teas Pvt. Ltd. MJF Teas Pvt. Ltd. specialises in the development of the Dilmah brand in the former Soviet states where Dilmah is recognized as a premium tea. Almost 95% of the total turnover is attributed to packeted tea exports to the former CIS, this being the major segment in the tea category in this region. Teabags are a growing segment. This company has steered the development of Dilmah in Russia, Ukraine and other CIS nations.

MJF Beverages (Pvt.) Ltd. MJF Beverages (Pvt.) Ltd. was established in 2007 to produce and market a uniquely authentic Ready to Drink (RTD) Tea. Made from a patented process developed by Dilmah over more than 5 years, the MJF Beverages facility in the company’s Rilhena Tea Garden, produces RTD Tea from freshly harvested tea leaves. The method is substantially superior to that which is used by all other RTD Tea brands.

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MJF Travel & Trucking (PVT) Ltd

based in Tamil Nadu, India. The Amalgamation Group is one of South India’s largest business groups with a history of global linkages with world

MJF Travel & Trucking (Pvt.) Ltd owns and operates a fleet of

class companies such as Perkins UK, Massey Ferguson UK, Yuasa Japan,

commercial vehicles. The Company was initially set up to service the

Repco Australia.

internal requirements of the Group and has in recent years grown and expanded its fleet of Prime Movers and Trailers. The company’s fleet includes Nissan and Renault Prime Movers and container

MJF Media

trailers, TATA Benz trucks and other vehicles for transport of goods. Launched in December 2011, Everlasting FM is the first of three channels planned by MJF Media, across English, Sinhala and Tamil languages. The

Merrill J Fernando & Sons Pvt Ltd.

format for these channels will be entertainment combined with messages of inspiration, hope, and education in the areas of the environment, nutrition,

Merrill J. Fernando & Sons Pvt. Ltd is the investment company of

science and technology, cuisine.

the Group. The Company has undertaken large scale investment in public quoted companies in Sri Lanka and actively trades on the Colombo Stock Exchange.

Dilmah Abroad MJF – Moscow (Russia) [MJF Teas Ltd., Representative office]

Dilmah Properties (Pvt) Ltd. Dilmah Properties (Pvt.) Ltd owns property in the city and suburban Colombo. The company owns an office and warehousing complex of 260,000 square feet with modern facilities.

MJF – Kiev (Ukraine) [MJF Teas Ltd., Representative office] MJF – New Delhi (India) [MJF Teas Ltd., Representative office] Dilmah (SEA) Pte. Ltd. [Dilmah Representative office for Singapore & Malaysia] Dilmah New Zealand Ltd. [Dilmah Representative office] Dilmah Foodservices (Aus.) Ltd. [Marketing office] Dilmah Australia Ltd. [Dilmah Representative & Marketing

Stanes MJF Teas Ltd Stanes MJF Teas Ltd. is a company incorporated in India as a joint venture between the MJF Group and the Amalgamation Group

The Story of Dilmah Tea

office for Australia] Dilmah Central Asia Ltd. [MJF Teas Ltd., representative office] Stanes MJF Teas Ltd. [in partnership with the Amalgamations Group, India, tea packing & export)

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The leisure and pleasure of tea Tea Trails and The Fortress You will think I write a lot about the scenery, but if you saw it you would not think I said too much. James Taylor

Tea Trails Ceylon’s tea plantations once worked as small individual entities, each with a factory and a bungalow for the estate manager. Today, smaller gardens have been consolidated into larger groups and so over the

When

you stand in Sri Lanka’s tea hills and allow your eyes

past few years, some of the bungalows have become redundant.

to slowly scan the gentle green slopes that are home

With the vision that guides all aspects of their work, Merrill, Dilhan

to millions of tea bushes and shade trees, it becomes clear that James

and Malik Fernando bought four of the abandoned British planters’

Taylor’s words ring true. We do not have the vocabulary to capture the

homes and turned them into stylish boutique villas to provide luxurious

full beauty of the island and can only wonder at the magnificence that

accommodation for visitors who wish to relax and rest amongst the

surrounds us. For those who wish to see for themselves, there are four

peace of the tea estates.

holiday homes set up in the smoothly undulating Dickoya district of the

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tea region where guests can learn just a little of what life has to offer on a

Visitors to the Tea Trails bungalows can take the conventional route

tea plantation while surrounded and enchanted by nature’s scenic beauty.

and travel the three hour journey by car from Colombo. Alternatively,

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a train journey carries travellers up through the hills to Hatton from Colombo, Kandy or Nanu Oya. Or, for a faster, more adventurous arrival, a sea plane from the capital swoops down to land its passengers on Castlereagh Reservoir. From here, a car transports guests to the chosen bungalow. The suites in each of the houses have been decorated and appointed with great taste and sensitivity, showing both an understanding of the fascinating history of the region and an awareness of visitors’ needs. Pictures and photographs depict personalities, families, costumes, tea workers and locations from the past; much of the furniture is locally designed and crafted; antiques and carefully chosen decorative objects create an ambience of elegance, heritage and a pride in the past. Muted tones and natural woods bring a harmony to the rooms, while the vibrant

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colours of fresh flowers add an exotic beauty and visual excitement. Silk cushions, footstools, writing desks, indoor games and books add indulgence and luxury and as soon as guests arrive, they feel at home. Once established in their suites, visitors enjoy utter comfort, butler service, and exquisite cuisine expertly prepared by internationallytrained chefs. Many of the vegetables, fruits and herbs that add their colour, flavour and aroma to the impressive and delicious menu are grown organically in the bungalow gardens and so are as fresh as anyone could wish for. Every meal is a luxurious treat and if visitors are at their holiday home in the middle of the afternoon, an elegant afternoon tea, with traditional Dundee cake, scones, strawberries and cream, is served in keeping with the highest standards of gourmet excellence. Guests are looked after with a charm and kindness that is rare in today’s world. Visitors can set their own pace here, simply resting in their garden with tea bushes, giant bamboo and colourful flowers as a backdrop. Or days can be filled with meandering bicycle rides; satisfying rounds of

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golf at one of the highest golf courses in Asia; visiting a tea factory to see

the estate, it stands at 4600 feet and has six rooms and suites that

how tea is plucked, made and packed; trekking through the countryside

open onto magnificent English gardens where roses scramble, leafy

with a picnic lunch and a local guide; daring to face the challenge of white

arbours offer quiet moments of rest and relaxation, and the clay tennis

water rafting in the gorge where Bridge Over the River Kwai was filmed;

court attracts the more athletic. The atmosphere is colonial with a

peacefully watching some of the local bird life; exploring local temples,

modern twist. There are polished wooden floors and four-poster beds

churches and nearby villages; or indulging in a therapeutic massage at

in plush bedrooms, gracious dining rooms and an expansive lounge

the Tea Spa. Make a dawn expedition to Adam’s peak holy mountain or

with an open fireplace where log fires crackle on cooler evenings. In the

visit nearby Darrawela Planters’ Club, built in 1868, where club facilities

corridor are photographs taken in Ceylon by Julia Margaret Cameron

offer tennis, snooker, pool, badminton, cricket and rugby. The climate is

when she and her husband, a tea planter, moved to the island in the

kind here – never too hot, a hint of a cool breeze from time to time, pure

1870s. She died in Ceylon and is buried at nearby Bogawantalawa

unpolluted air, a soft humidity, and light misty clouds that shield the skin

Church.

from burning sun. This is truly a place of peace where the body can relax and the mind is cleared of the worries and stress of modern life.

One group of visitors commented:

The bungalows each have an individual personality and a story to tell.

“We loved our three nights at the Tientsin bungalow at Ceylon Tea

Tientsin was one of the first planter’s houses to be built in Ceylon and

Trails. The head butler and his staff provided a fantastic experience.

is named after the Chinese village from which the original tea seedlings

Tientsin has six rooms total - we stayed in the Meares luxury room

came to the island. Built in 1939 by Mr Irvine Stewart when he established

and everything - from the included laundry service, evening cocktails,

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mountain hike with the head gardener, walks around the Tea Trails

service is second to none and the chef asked us each day what we

property and tea factory tour - was amazing. We had amazing meals

would like for every meal! The food was stunning and so much of it!

here, from breakfast to afternoon tea to dinner.”

Three fabulous meals a day plus high tea!”

Norwood, at 4300 feet, was built in 1890 and then rebuilt in 1950. It

Castlereagh is a 1925 bungalow with swimming pool, croquet lawn,

is located in the Bogawantalawa Valley sheltered by one of the finest

library, pretty summer houses tucked away in quiet corners of the

bamboo stands in the world. A half-circle of tea bushes surrounds the

extensive gardens, and unrivalled views over the lake, tea fields and

bungalow to the rear - almost like an amphitheatre of green - while in

mountains. The rooms all reflect the Tea Trails elegance and style with

front, the hillside slopes gently away, offering a clear view of the eastern

parquet floors and open fireplaces evoking the life and times of the

end of the valley. The generous suites are arranged with colonial furniture,

planters.

four-poster beds and indulgent black and white bathrooms generously stocked with bath oils, body lotions and large, softly thick towels that

Visitor comments include the following:

wrap and sooth. A spacious lounge and well-stocked library lead out to a croquet lawn, a large swimming pool and sun deck and gardens that

“We stayed at Castlereagh for two nights in March and it was the most

have hardly changed since they were laid out in the 19th century.

magical experience of our honeymoon. The service was fantastic, the food delicious and the gardens beautiful. It really was like stepping

Comments from some of those who have stayed there praise the location,

back in time: high tea on the verandah, pre-dinner drinks in one of the

the food and the decor:

two sitting rooms, four course meals with excellent Argentinian wine and then port. Our room, Tate, had a four poster bed and wonderful

“We stayed at Norwood bungalow for 2 nights en route to Amanwella.

views over the garden and down to the lake. The stay includes a

We loved every aspect - the food, the rooms (we had 2 garden suites),

fascinating tour of a local tea factory and on the way back we got the

the staff and we loved having meals on the terraces. The cream teas were

chance to visit both Norwood (with its huge pool) and Summerville

a delight!”

(with floor to ceiling picture windows looking out over the terraced garden and the lake) which are equally gorgeous bungalows, although

“Although we enjoyed every aspect of our stay in Sri Lanka, the highlight

they are all different. We would love to go back!”

of our trip was definitely our stay at The Norwood Bungalow in the Ceylon

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Tea Trails. Norwood Bungalow is an amazing place and we loved every

“This is how small hotels should be; immaculate service, wonderful

minute of our stay there. It was so wonderful to wake up to the fabulous

position, very good food, lovely rooms, well fitted, really good linen,

views from our windows each morning, surrounded by tea plantations

very good pillows (always a good sign). Guests are treated as though

and beautiful scenery. The decor and layout of the bungalow is beautiful,

they own the place and you quickly slip into the role of the colonial tea

and the bedrooms were stunning. Everyone at Norwood made us feel

planter’s guests; the staff are always available, always helpful, always

very special, and we could hardly believe that we were lucky enough

happy; each bungalow has 5 rooms, a chef, a manager, waiting staff,

to experience the wonderful Tea Trail experience and atmosphere. The

houseboys, gardeners and gateman. The chef comes to discuss your

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meal requirements for the day at breakfast, and lunch can be a beautifully prepared packed lunch if you are walking through the tea estates, which is the great pleasure. If you are going to Sri Lanka, don’t miss this place.” “We had a wonderful 2 nights stay in the Castlereigh bungalow. The exceptional service, the gourmet cuisine and the unique location of the property won our hearts. We were particularly impressed with the all inclusive package of Tea Trails. Though initially, we had thought it a bit expensive and on par with prices at hotels in the Aman Group, after our stay, we thought it was worth every penny.” Summerville is the smallest of the bungalows and has the air of a country cottage. It stands high above the lake facing Castlereagh. Its rooms are decorated in ‘neo-traditional’ style with a subtle balance of classical and contemporary. Some of the bedrooms open onto private gardens and the large picture windows of the lounge offer views of the garden and the tea fields in the distance. Visitors were impressed: “We were also taken to look at the beautiful Castlereagh and Somerville bungalows. We walked from Norwood to Castlereagh through working tea plantations. It was fantastic to see how the tea is picked, having been to a tea factory earlier on in our holiday. Each of the bungalows has its own character, but all are so tastefully decorated and maintained and have the most magnificent views.” “We were totally overwhelmed by the Tea Trail experience and how we were treated - just like Royalty. We would definitely like to visit again and to stay for longer as our 3 nights were just not enough. We have returned home with some fabulous memories and photographs of our time there. If you go to Sri Lanka, you must stay at The Ceylon Tea Trails - they are out of this world and words just cannot do them justice.”

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One couple who spent time at Tea Trails described their time here as the

porcelain teacups with swooping handles and saucers that replicate the

‘silver tip’ of their trip to the island. Everyone who comes feels the same.

undulating movement of the gentle waves that lap the shore.

These historic homes offer an inspirational experience, a chance to indulge and rest, to understand the past and consider the present, an opportunity to

Visitors arrive by sea plane or by road and, once they have taken in

reflect on an industry that has given the world so much.

the breathtaking surroundings and exquisite design, they then have the choice of wandering through the landscaped gardens, rocking gently in a

In 2006, Tea Trails was selected by Condenast Traveller as one of the world’s

hammock, relaxing on a lounger facing out to sea, swimming in the large

best deluxe properties for its annual ‘hot list’.

private pool, or working out in the gym. The nearby water sports centre will arrange scuba sessions, and for those guests whose muscles need treatment, the Sen Spa offers various treatments that relax or repair. In the

The Fortress

evenings the hotel bar offers the comfort of large rattan armchairs with soft, cream-coloured cushions, or the option of quirky, clear Perspex, cocoon-

Sri Lanka’s south west coast around Galle offer tourists peaceful, palm-

style armchairs suspended from the ceiling and softened inside by large,

shaded beaches, the excitement of scuba diving, surfing and swimming in

bright crimson cushions! As in this restful room, furniture throughout the

the clear waters of the Indian Ocean, and each day at dawn and twilight, the

hotel is unusual, eye-catching, designed and positioned to add a visual

fascinating sight of the stilt fishermen who balance patiently on wooden poles

beauty to the harmony of the hotel space.

while waiting for the fish to bite. The hotel has 49 luxury rooms and two suites that are decorated and At Kagala Beach, not far from historic Galle town, stands the Fortress luxury

arranged in five different styles - from traditional Ceylon to sleek modernist

hotel, built to echo the style of the Dutch fort that once dominated the area.

and futuristic minimalism. Through generous French doors flanked by

Dilmah is a part of this joint venture and, because tea drinking is such an

ceiling to floor windows, bedrooms lead onto balconies and terraces that

important part of restful days and memorable holidays, has installed within

overlook the ocean; bathrooms are an inviting blend of white porcelain,

the hotel a Dilmah Tearoom where a trained tea sommelier is available to

glass and stunningly beautiful chrome accessories; candles flickering in

help guests choose from the extensive tea menu. For tea drinkers not familiar

stone and glass vases, exotic fresh flowers and glimmering, subdued

with Ceylon tea and the range of wonderful flavours available, an expert

lighting add to the tranquillity and calming composure of this magical place.

explanation and description of the different regions and leaf types adds to the

This and the exquisite beauty of the hill country and the tea plantations are

pleasure and sense of adventure in tasting something new. Tea is served in

just a few of the treasures that Sri Lanka offers to its visitors.

elegant glass or white porcelain teapots and drunk from stylishly innovative

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Preserving the past Dilmah’s Digital Tea History Website It is imperative for the future of this industry that we shall not forget the past and those that made history in creating our tea industry. Dilhan C Fernando

often unique publications and papers have been collected, indexed, repaired and properly stored and where copyright is thought to have lapsed, information has been made more widely available through the dedicated web pages. So web users can browse through early descriptions of how the plants were laid out and cared for, read the minutes of meetings of various tea associations, view old tea

2003, inspired by his family’s desire to share, Dilhan C Fernando

photographs, search through statistics from the 19th century and

decided to set up a new website telling the story of “The History

study more recent articles about Sri Lanka’s tea industry. The site

of Ceylon tea”. He describes it as a tribute to all the courageous men

attracts considerable interest, particularly from former planters and tea

who dedicated their lives to creating a great industry in harsh and hostile

writers, and the material provides an invaluable source of information

conditions, who strove fearlessly and with great determination to establish

for tea historians, students and researchers.

plantations on land where tea had never grown before. But much of their

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history was never systematically archived and the history website aims

The website now has more than 100,000 pages of literature that tell

to preserve the records and papers that document their work. Dilmah

the tea story, a photo album and a ‘Planters Register’ that acts as

is partnering the Planters’ Association of Sri Lanka to digitally archive

a database allowing planters to record their planting experiences.

all the materials and save them for future generations. Ancient and

The Forum Message Board enables former planters to keep in

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touch with friends and acquaintances around the world. One fan of the website wrote, “Congratulations on a wonderful site containing very valuable information about Ceylon Tea as well as other related historical data from ancient times. The site is very professionally designed and easy to use”. And Victor Melder of the Sri Lankan Library in Melbourne, Australia, wrote, “HOCT is one of the greatest projects undertaken in Sri Lanka as it will open a new spectrum accessible to all. My compliments and salutations to Mr Merrill Fernando and Dilmah for undertaking this worthwhile project.” Dilmah has appealed for the donation of any other anecdotes, books, papers, letters, and manuscripts that have a relevance to the history of Sri Lanka’s tea industry.

The web address is www.historyofceylontea.com

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The kindness in the cup The MJF Charitable Foundation Dilmah channels a significant share of its profits into the MJF Foundation whose primary charter is that of alleviating poverty, helping the underprivileged, the sick and the disabled. This decision was inspired by my conviction that people – our employees and customers worldwide – have assisted the growth of our family business and in turn, it is our duty to return these earnings to those very communities that support us. Merrill J Fernando

All

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three meals a day, wear one pair of shoes, drive one car. Each one of us only needs just so much and when we have all that and much more, what can we do with the extra wealth? The Fernando philosophy is to give back, to serve a higher purpose and help those who are less fortunate. In 1962, Merrill set up the first of his own companies with a staff of 18 people and he decided then that his employees and their children should share the profits and benefit from their hard work. And so, he gave them money to buy school uniforms, books, shoes and other necessities, and to pay for essential medical treatment for family members. His humanitarian gestures became part of company life and, as he explained it later himself, “I made it my duty to extend a

his life Merrill has shown an immense concern for the

helping hand to my employees and to the community. This is my way

underprivileged in society, for those who struggle against poverty,

of practising corporate responsibility and social justice.” Since those

sickness or abuse, or have less material wealth than ourselves. As Dilhan

early days, the concept of giving back to the workforce and to the

and Malik were growing up, he taught them that we can each only eat

community has grown to become an integral part of the MJF Group

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and Dilmah Tea. By 2000, the companies were employing thousands of workers in the tea industry, on the plantations, in other businesses within the MJF Group, and so the charitable aspect of the MJF approach needed restructuring and formalising to make the work more effective. In 2002, the MJF Charitable Foundation was incorporated with the initial objective of expanding its activities. Today, its amazing work runs more than 100 projects every year and touches the lives of more than 60,000 people in the tea industry and the wider community. The work is funded by revenue from the companies within the MJF Group (including Dilmah Tea), and from Merrill’s personal wealth; Dilhan and Malik have also pledged to bequeath some of their wealth to the charity in their wills. At a conference in Melbourne in 2006, Dilhan explained clearly how the idea had developed: “What started out very simply with my father helping those less privileged amongst his small team evolved into an effort of some significance. All this followed a natural and very logical path; as the business grew, more revenue was available and greater benefit could

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be shared. Most importantly, the entire effort is made possible by our

commitment. The pleasure of helping others and the sense that they

consumer - the person who buys our product. My father’s dream was to

are helping to improve lives is the only reward they seek.

bring quality back to tea. He wanted to reverse commoditisation which was a by-product of consolidation in the industry. He also wanted to give

In 2004, the tragedy of the tsunami and an immediate sense of

producers and the industry a fair deal, a just reward for their labour. He

urgency forced the family and the company to take stock, to assess

desired a truly ethical tea”.

how they could help to ease the loss and pain of so many thousands of Sri Lankan people living and working around the island’s coastal

Merrill’s philosophy, now the mission statement of the Foundation behind

belt. Dilhan took on two more members of staff, Merrill donated vast

this remarkable work, is quite simple:

sums of money, land, buildings and assets and an extra division was added to the Foundation to only work with tsunami victims. As the

“We came into this world with nothing, we leave with nothing. The wealth

team started to examine and assess what they could do in areas

some of us acquire is owed to the efforts and cooperation of many others

struck by the tsunami, they uncovered other secondary issues where

around us. Let us, therefore, share that wealth, while we are still around,

they felt they could help.

so that the goodwill and contentment created thereby make our world a happier place for others as well.”

The Fernando family involve themselves directly, getting to know the families concerned, considering carefully how to make a difference,

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In the very early days, Merrill would give money whenever his employees

planning for a future that empowers individuals and allows them

approached him with a problem. As the work grew, Dilhan became

to take control of their own lives, often for the first time. The MJF

involved and recruited Hiran Fernando (no relation to Merrill, Dilhan and

Foundation does not limit its role to helping any particular religious

Malik) as Administrator of the Foundation to assist in co-ordinating and

or social group and so projects are in progress with Tamils, Hindus,

implementing the various projects. Whereas many charities and NGOs

Buddhists and Christians all over the island. During the civil war

spend approximately 40% of their funds on administration costs, the

between the government and the Tamil Tigers, the work often took

Foundation kept its expenditure to 2% in the early years and today, even

the MJF team into the war zone where the Tigers were fighting for

with the marked expansion of the work, staff, and with the increased

an independent Tamil homeland, and so could be dangerous and

distances involved in operating in remote regions, that figure has now

unpredictable. This obviously had to be taken into account but the

been increased to 5% and the full amount of the overheads is reimbursed

driving force was simply the desire to help, to get the job done, and

by the Dilmah Tea companies. In keeping with the Dilmah philosophy and

even government officers recognised that the Foundation achieved

to keep costs down, staff working for Dilmah and for other companies

more than long years of peace negotiations simply because it brought

within the MJF Group contribute their own time and talents to the various

people together to talk to each other across a table. Now since the

projects and events. Several company employees are now involved in

end of the conflict, the Foundation is working towards programmes

the many projects that are run every year both inside the company and

of reconciliation amongst the communities and empowerment for

in the wider community and this willingness to give back, inspired by

the war affected families, especially war widows and single parent

Merrill and his own family, has brought a great sense of unity, loyalty and

households.

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Dilmah and the MJF Foundation recognise that they cannot solve all of Sri Lanka’s problems but their work is making a difference by providing educational scholarships, funding medical facilities, paying for crèches, providing midday meals for retired tea workers and for estate children, assisting with hospital costs, eye clinics, shelters for abused women, funding for vocational training and homes for the disabled and so much more. But the work is not simply about providing financial assistance. Once a need or a problem has been identified, each project is researched, implemented, managed and monitored so that it brings long term, sustainable results that empower families and communities and give them a brighter future. The Foundation maintains its involvement in every project over a period of up to four years to ensure that it is running according to plan and achieving social, economic and environmental sustainability. It would be impossible to document every single one of the major projects that are run every year, so what follows is a summary of just a few of the remarkable achievements

Tsunami Relief Programme On December 26th 2004, Boxing Day, an underwater earthquake north of Sumatra in the Indian Ocean caused waves up to 30 feet high to swamp the southern and eastern shores of Sri Lanka as well as areas of Thailand, Indonesia, India, and East Africa. Sri Lanka’s fishing villages and tourist areas were totally devastated, entire communities were wiped out, parents lost children and children were orphaned. Businesses were ruined, houses washed away, hotels demolished, people’s lives decimated in seconds. Within hours of the appalling tragedy, Merrill had committed 25 million rupees to a special MJF Foundation relief fund and, as the scale of the

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On December 26th 2004, an underwater earthquake north of Sumatra in the Indian Ocean caused waves up to 30 feet high to swamp the southern and eastern shores of Sri Lanka as well as areas of Thailand, Indonesia, India, and East Africa. Sri Lanka’s fishing villages and tourist areas were totally devastated, entire communities were wiped out, parents lost children and children were orphaned. Businesses were ruined, houses washed away, hotels demolished, people’s lives decimated in seconds.

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disaster became clear, that was increased to 50 million. And, as Dilhan,

with generators, pumps, high pressure cleaning equipment to pump sea

Malik and Merrill realised that the normal aid channels and organisations

water out of wells, clear debris from homes and clean houses and other

simply could not cope with the enormity of the event, they used the

buildings. When, with the blessing of the Liberation Tigers of Tamil Eelam

resources of the MJF Group of companies to organise a relief programme

(the LTTE) and the Sri Lankan army, the Foundation went into LTTE territory,

of their own. They set up a relief logistics centre on the outskirts of

they found the 128-bed hospital at Kilinochchi trying to look after more than

Colombo and drew up plans for a short-term emergency operation and

800 people who all needed urgent medical care.

a longer term rehabilitation programme. On Wednesday 29th December,

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medical teams were dispatched to Hambantota, Ambalantota, Rakawa

This work demanded immense sensitivity and patience, understanding

and Kilinochchi, while at Tangalle, a refugee centre was set up in

and tenacity. When the Foundation expressed an interest in working inside

partnership with local charity Navajeevana and provided 4000 meals

LTTE territory, they encountered wariness and a suspicion that Dilmah

a day. MJF were involved in delivering supplies of food, candles,

perhaps just wanted to make some publicity mileage out of the tragedy and

matches, nutritional supplements and clothing. Volunteer staff from the

suffering. But gradually Dilhan and his team managed to win the trust of the

MJF Group Engineering Department and the Production team worked

locals and persuaded them that the company genuinely wanted to help.

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Dilmah personnel demonstrated that they were just ordinary people trying to help. They visited the families in their homes, they drank tea together, they chatted and discussed the best ways to tackle the enormous problems facing the island. It was essential to understand that the fishermen who had lost everything were not poor or downtrodden before the tsunami; they were successful, rural, middle-class men who now faced having to work as labourers in the city. Dilmah staff knew this and behaved accordingly. The MJF approach is always to become involved at the micro-level, to get to the heart of the matter, to listen and to discuss the best way forward – never to impose their own will but to work with the communities to really help with long-term solutions.

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After the Tsunami With a clear understanding that world interest would dwindle once the immediate news coverage was over, the Foundation planned its longer term programme to help tackle the psychological, social and employment problems in the worst-affected areas. As a first response, the Foundation established centres in four towns in the Hambantota District where up to 100 people could be accommodated and fed, receive any necessary medical and psychological care, and have a place in which they could come together with their families and neighbours to talk about what had happened to them – something that is recognised as a crucial part of coping with the shock and mourning that followed the tsunami. Once the immediate needs had been met, the Foundation embarked on a programme of mid- and long-term activities and projects that would help the affected communities to recover socially, economically and psychologically. And the key to the way in which all the projects are now run is the aim not just to help with money or facilities but to empower the victims and help them take control of their own lives in a way that they had never previously known or understood. One of the most pressing needs was to have fishing boats repaired or rebuilt and to repair or provide new fishing nets and outboard motors. The Foundation worked with CeyNor Foundation (a Sri Lankan government and NORAD joint venture) to buy nets and to repair and replace the fibre glass boats that are essential to the fishing community. Less than 10% of the boats had survived and the meagre income of the fishermen would never have allowed them to acquire more. BBC Southern radio sponsored new boats at Lunama and MJF Foundation facilitated that operation while also providing boats to the villages of Wanduruppa and Welipatanvila. When the BBC said that they and their listeners would like to help, the MJF Foundation told them that it would only accept the money if each listener or group of listeners donated a specific item – a bicycle or an outboard motor, for

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example - and the donor’s name then had to be painted on whatever was

working since early 2005 to establish pre-schools in affected villages and

given. The Foundation felt that this was important because they wanted the

towns. Pre-schools are an essential element in the healing process and

aid to be completely transparent and felt that the results of the donation

have an important role to play in equipping the children with essential

had to be visible and tangible. It was an emotional day when the first of the

life skills. Four schools catering for approximately 320 children are now

boats were handed into the care of the villagers who could once again fish

operated by teachers specially trained by the Foundation in managing

for their living.

issues of trauma, poverty and malnutrition. Equipment and materials were provided by MJF, and the Foundation keeps a monitoring watch

The fishermen had also lost the bicycles on which they travelled to and from

over the work in order to identify any new needs as and when they arise.

their work and more than 200 bicycles were donated by the Foundation.

With so many houses simply washed away by the massive wave, there

Also provided were storage facilities for boats, nets and for the outboard

was and still is a need for new housing in many parts of the island and

motors which previously had to be carried two or three kilometres home

the Foundation is working with local government officers to build new

every evening for safe keeping and back again the following morning. But

road networks and new houses. This is a programme that involves the

with the fishermen back at work, Dilhan and his colleagues began to look at

community, the residents, the planners and the Foundation to create new

the exploitative relationship between the fishermen and the middle men who

villages where everyone belongs. The MJF Foundation, with Sri Lanka

regularly bought the fish.

Government and UN Habitat, pay for the construction of the necessary new roads and then oversee the planning of such essential buildings as

Although the price was almost always too low, what could the fishermen

a community centre, pre-school facilities, hospitals and housing. Each

do? They needed to sell their catch before it started to lose its freshness

of the new residents is assigned a plot of land and materials for the

so they took whatever price they could get. But the MJF Foundation saw a

construction of the first stage of their own house. On-site engineers then

better way. They built ice factories! And they established links between the

check the foundation and inspect their work before the next batch of

fishermen and local restaurants and hotels. So if they want to work with the

necessary materials is provided. Imagine the pride of each villager when

brokers, the fishermen still can, but they are now equipped to run their own

they are finally inside their own house – a house they have built with their

businesses without having to rely on any middle men. They can catch their

own hands.

fish, pack it in ice, and transport it in refrigerated vehicles donated by the Foundation to their new customers. These customers also benefit by gaining

In December 2008, ‘Sithijaya’ – the Merrill J. Fernando Centre for the

the attention of tourists and other local clients who admire them for the fact

Differently-Abled was opened in Ambalantota, a division of Hambatota

that they are helping the local community. It runs as a beautifully simple, neat,

District where 27,300 people were displaced by the tsunami. In 2006, MJF

satisfactory, sustainable cycle that has advantages for everyone involved.

Foundation identified the need for a facility to care for the disabled and

And since the fishermen also received training in technology, in marketing,

so solicited the expertise of organisations already working with disabled

in the best ways to preserve their fish, in organising their finances, they are

people in other parts of Sri Lanka. The state-of-the-art Centre, designed

now better equipped than they were when the tsunami so cruelly stole the

by Sri Lankan architect, Nihal Bodhinayake, provides occupational,

tools of their trade.

physical and supplementary therapies for approximately 600 people who receive training in sewing, agriculture and the crafting of accessories

The children of the communities that were ripped apart by the tsunami

from locally-available raw materials such as palm leaves. To encourage

obviously had and still have special needs, and the Foundation has been

and inspire those who would be attending classes and taking part in

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the therapies offered, the opening ceremony included a display of items

community to benefit the lives of more and more people. In just the first two

made by two carpenters - brothers who are both hearing-impaired – and

years of the programme, 264 SEPs were initiated, and upto now over 750

a performance of singing and dancing by differently abled children who

SEPs have been supported through the programme. New entrepreneurs that

were among the first to benefit from the service offered at the Centre. As

have been helped by the scheme include ayurvedic medical practitioners,

Merrill said at the opening, “Although these people suffer from disabilities,

carpenters, builders, hairdressers, potters, mushroom farmers, beauty

they possess the mental faculties to do great deeds and should therefore

therapists, and textile manufacturers. To date, SEP has touched the lives

be provided with the opportunities of their peers.”

of over 2,500 people. SEP has been internationally acclaimed as one of the most effective self-help programmes since it focuses on building on an individual’s talents and makes them independent, thereby avoiding the

Small Entrepreneur Programme

‘dependency syndrome’ that is so common in many charities projects.

In the tsunami, many people lost not just their loved ones and their homes

In 2007, the Small Entrepreneurship Programme was further extended to

but also their business premises and the tools of their trade and so the

work with people who had been in prison through the Reform & Integrate

Foundation set up a ‘Small Entrepreneurship Programme’ (SEP) to help

Programme. In Sri Lankan communities, people who has been convicted

them re-establish themselves in business. Dilhan and the Foundation team

(rightly or wrongly) of a crime and has spent time in prison is generally

went out to find individuals who had been marginalized by the disaster

not accepted back into the community or given a chance to rebuild their

and who had the capability, commitment and desire to better themselves

life. People rarely help them to start building their lives again and so the

and their families by translating their commitment and dedication into a

offender and his or her family are stigmatised and live as outcasts. The

product or a service. The evaluation process to find suitable candidates

MJF Foundation decided that they wanted to work with ex-prisoners who

is exhaustive in that each person is interviewed several times and their

showed a genuine desire to reform and make amends. So, in collaboration

capabilities, skills and talents tested. Only individuals who support their

with the prison service, the Foundation carefully selected people who had

families in the traditional rural way and so care for parents, parents-in-law,

performed well in the rehabilitation programme and were due for release

brothers and sisters as well as their spouse and children, are considered

on parole. Dilhan met with those people, tried to assess their talents and

for the scheme. If they qualify, SEP then assists to provide equipment,

skills as well as their attitude, and money was then given to help them set

materials and machinery, but never cash. If an individual project runs

up small businesses. Through the existing parole monitoring system, the

successfully, more assistance is given to develop the business further.

participants were monitored to check that they were working well, earning,

SEP also includes an apprenticeship programme whereby successful

saving, and taking care of their children. As with all the SEP projects, every

enterprises are monitored on a quarterly basis and required to take on

single person involved is doing well - no-one has let themselves or the

trainees who then also benefit by learning a new skill. This then allows

Foundation down. To date, nearly 200 former prisoners have benefitted

them, in turn, to possibly qualify for SEP, build a new business, take on

from the programme which supports prisoners with their vocations and has

apprentices and so increase the benefits that ripple outwards into the

been hailed as a success in combating recidivism.

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The Small Entrepreneur Programme initiated by the Foundation to address issues of poverty has reached out to more than 750 people around Sri Lanka. The success stories that emerged from the distribution of equipment following the tsunami, to enable communities to resume their vocations, prompte d the MJF Charitable Foundation to develop this poverty alleviation programme – a long-term, socio-economic relief effort.

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Different products developed under the Small Entrepreneur Programme.

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The Small Entrepreneur Programme has touched the lives of over 2,500 people and has been internationally acclaimed as one of the most effective self-help programmes since it focuses on building on an individual’s talents allowing them to live independent and productive lives.

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Vocational training for prisoners initiated under the Reform and Integrate programme of the MJF Charitable Foundation.

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Samantha, a recipient of the Prison SEPs is now a successful tailor and businessman thanks to the MJF Charitable Foundation and its Reform and Integrate programme. Today, he is also a community leader in his village Pahalalanda in Siyambalanduwa where a successful orange plantation is flourishing under the patronage of the MJF Charitable Foundation. Following page: The orangery in Pahalalanda interspersed with pineapple plants grown as a secondary crop.

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As part of the Small Entrepreneur Programme, nearly fifty bicycle repairman in Batticaloa were supported to upgrade their existing repair shops to facilitate better services to the people. This initiative aims to uplift the livelihoods of beneficiary communities while supporting long term conservation of natural resources.

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Empowering the People of the North through the Small Entrepreneur Programme. Fishing communities that lost their livelihoods due to the war and the December 2004 Tsunami were supported by the MJF Charitable Foundation through the provision of fishing boats and equipment.

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In an effort to support women in the Northern peninsula, the MJF Charitable Foundation implemented the Small Entrepreneur Programme in Point Pedro, Batticaloa. A majority of these families headed by widows are supported to carry out various vocations including processing of dry fish, goat rearing, sewing and dress making. Over 160 war affected women have been supported through the initiative. Following pages: Recipients of the Small Entrepreneur Programme in the North busy at their vocations.

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The ‘Local Heroes’ Scheme

determined way doing for his business what Merrill had done for tea. With Rs 500,000’s worth of assistance, he was able to secure a small

When MJF Foundation had funded 300 SEP projects, a decision was

loan from the bank, upgrade his factory, invest in new equipment

taken to continue the work at a moderate level - with the objective of 100

and machinery, install solar panels and increased his workforce. The

schemes each year - but to extend the concept into what is now called

Foundation stipulated that he must employ 20% of his workforce from

the ‘Local Heroes ‘ programme. This involves a much larger contribution

the nearby home for disabled people, he must pay 25% higher wages

approximately ten times higher than the initial ceiling on SEP assistance.

than the national average, he must stop buying ‘Undu’ flour (the raw

Local Heroes works on a much larger scale and takes a much broader

material for the papadams) from an Indian supplier but must switch to a

perspective of humanitarian assistance through entrepreneurship.

local Sri Lankan Undu producer, and he must buy that local flour at 25% above the market price. Dilhan’s team helped him to find a good local

The first Local Hero was D M Dharmadasa, a hard-working, committed

Undu supplier and worked with government officers to help improve the

papadam manufacturer at Kumbukkana near Moneragala. He had

quality of the crop. The local Undu producer was encouraged by the fact

constructed his factory of clay and mud and ran his business with no

that he knew he would have a Dharmadasa as a guaranteed, long-term

electricity and no automated machinery and he was, in his small but

customer and that he would be paid more for his product than other suppliers. The Foundation organised advice on ISO and HACCP food

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safety and quality requirements, and assisted in organising electricity and proper road access to his property. The Foundation team also worked with Dilmah Marketing to design an innovative new pappadam product made from fibre-rich Kurakkan, a health food ingredient popular in Sri Lanka. Since the start of the project, Dharmadasa has responded to MJF advice to put his prices up and, with MJF help and support, has found new customers outside the local area. He currently employs eight people from his village, including two who are differently-abled and he has installed renewable energy sources. Profits from the initiative will help develop the pappadam factory, pay higher wages to the workers, pay a higher price to local Undu farmers and also assist the Home for Elders. Just as with all Foundation projects, this is another ‘win win’ situation. The second Local Heroes project was set up at Ilukkumbura Village in the Knuckles Conservation area where the Foundation worked with a

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Pottery triumphs over poverty – Mankada, established through the MJF Centre for Empowerment through Sri Lankan Traditional Art & Craft is supporting community upliftment in villages adjacent to the Udawalawe National Park in South Eastern Sri Lanka. These community members are trained in pottery making and are now able to provide a better life for their families. Following page: Beautiful and original craft created by the women potters of Mankada.

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community of tomato growers. In the past, the villagers were financially

Mankada to expand the operations and to build a direct sales centre close to

dependent on the local ‘mudalali’, the local money lender whose loans

nearby Udawalawe National Park.

were set off against produce delivered to him during the growing season. But very low rates of pay and debts to the mudalali left the villages very

The exquisite Mankada pieces have now captured the attention of world

poor and so MJF has established a village-level Farmers’ Association

renowned chef Jamie Oliver who will feature several Mankada items in his

which now extends loans free of interest and uses money paid back to

Jme Collection this year.

fund seed and other materials for the following season. The Foundation also set up links between the villagers and the regional wholesale market

Udawalawe National Park is home to many species of wild animals and

at Dambulla and the local producers were trained how to negotiate with

among the products now being made by the potters are decorative casts

the traders and achieve the best prices for their goods. Their produce

of footprints of some of them – elephants, deer, buffalo, mongoose, monitor

now fetches prices ten times higher than when they were dealing with the

lizards, leopards and sloth bears. With the help of park wardens, the villagers

mudalali. The success of the programme has led to similar programmes

venture into the park to look for fresh footprints, fill them with plaster-of-

in 5 more remote villages in the area.

paris and turn them into moulds within minutes. The footprints are also used to decorate plates, ornaments and jewellery. Tourists can buy these

The third project has turned communities living adjacent to the

as mementoes at a stall at the entrance to the park which is manned by the

Udawalawe National Park in South Eastern Sri Lanka, who were

villagers, and the profits go back to Mankada. The next stage of the project

previously dependent on the nearby sugar cane plantations for livelihood

is to eventually form a group of pottery villages that produce handcrafted

support, into a successful community of potters named Mankada – The

ceramic jewellery and handicrafts.

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Crafts. The Foundation discovered that earlier generations in the village

In 2008, Animal Tracks was picked as one of the five best environmentally

had been potters who manufactured curd pans, and so set up a scheme

sustainable projects profiled by IUCN at its International conference in

designed to empower the villagers by establishing a sustainable pottery

Barcelona. Dilmah was congratulated by IUCN for its unique effort in

industry that they could run themselves. The Foundation team seconded

integrating humanitarian and environmental aspects into their company’s

Ajith Perera, acclaimed potter and designer, to train the local residents

business model and at a ceremony at IUCN headquarters in Switzerland,

in traditional skills and the potter now make truly beautiful hand-crafted

Director General Julia Marton-Lefevre commended the MJF Foundation

tea pots, tea bag holders, jewellery, kitchenware and various ornaments.

for “the visible improvement in the lives of communities that depend on

Having achieved the required level of competence, the Mankada potters

natural resources, and enhancing community appreciation of the need for

received their first order from Poland for handmade pendants in ten

conservation of natural resources for future generations. ” The partnership

different designs based on endangered species of fish and animals

between IUCN and Dilmah began in the aftermath of the tsunami and

found in Sri Lanka and the promotion has since been extended to other

the contact was solidified later when Dilmah sought the agency’s help in

countries such as Australia and New Zealand. The proceeds of the

streamlining its social responsibility work. It is a mutually beneficial relationship

sales are given back to the community through a Co-operative Society

in which, according to Dilhan, “we learned sustainable work while IUCN

established by MJF Foundation, and the money has been reinvested in

learned management techniques and how the private sector works.”

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Hospitals and Medical Care The MJF Foundation was already involved in many charitable projects before the tsunami struck the island and that work has continued. In 2003, Dilmah Tea announced that it would adopt Hope Cancer Hospital at Maharagama as its key corporate social responsibility project. The project started with the donation of one hundred thousand cricket posters to be sold as fund-raisers, an outright contribution of money and a link to sales of tea in Sri Lanka. For every 500 gram packet of tea sold, one rupee was pledged to the Hope fund and so sports fans, tea drinkers and the company supplying that tea joined forces in supporting the Cancer Hospital. The connection between Dilmah Tea and cricket was strengthened through the Dilmah Cricket network website which tabulated the amount of money raised, not just through sales of tea but also paid for every run scored, every catch and every wicket taken during matches played by the Sri Lankan cricket team. On the day when the formal partnership between Dilmah Tea and Hope Hospital was announced, Dilmah’s contribution had already reached one million rupees. In June 2005, the Foundation donated a kidney dialysis machine to the Teaching Hospital in Kurunegala. And, since identifying an urgent need for optical care, the Foundation held a free eye clinic at the Houpe Hospital in Kahawatta. Partnering with the International Centre for Eyecare Education (ICEE), an Australian-based NGO, the Foundation ran morning and evening clinics over five days and after extensive examinations, 1395 people were prescribed glasses. Having identified such a great need for eye care, a new eye unit has been established at Pelmadulla sponsored by the Japanese company ALCON who paid for the equipment, and by the MJF Foundation which provided everything else. Treatment for such conditions as cataracts is free and any necessary medication is also given at no cost to the patient.

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A medical camp organised by the MJF Charitable Foundation for plantation communities in Dickoya.

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To date, six eye care programmes have been run, 4563 people have been screened, 3289 have been equipped with glasses and 352 have had cataracts removed. In 2004, Houpe Estate Hospital was in a rather dilapidated state and was badly in need of refurbishment so the Foundation donated funds for the necessary work and provided an ambulance, technical and material support. Today, the hospital provides facilities for 3200 plantation workers and approximately 2000 from nearby villages and plantations. As a result of commitment and support from the MJF Foundation, the board of Kahawatte Plantations Ltd. pledged money to also build a Health Training Centre at the hospital.

Schools, Further Education and Community In 2008, the MJF Charitable Foundation completed the development or construction of 74 Child Development Centres as part of an ongoing programme to construct or develop and equip such centres and primary schools. Some 3,500 children below the age of 5 are cared for at the

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centres where they are provided with a nourishing meal, and where their

encouraging statistic within a relatively short space of time. Students

care, intellectual and social development are facilitated using materials,

preparing for the General Certificate of Education – Ordinary Level

equipment and training offered by the Foundation. Traditionally, tea estate

examination are supported since 2010 with free English and mathematics

crèches are of fairly basic standard but MJF Foundation’s facilities have set

classes under the special education project for students in 22 schools in

a new standard with spacious layout and high quality equipment.

the Talawakelle Educational Zone. Already, two batches of students have sat for the examination and the Talawakelle Zone has become the best

MJF also awards scholarships to high-achieving students whose parents

zone in the Nuwara Eliya District.

could not otherwise afford to send them to university or other establishments of further education. An area of particular concern, Merrill has placed

Those with relevant qualifications and training are offered employment

special emphasis on supporting secondary and tertiary education for

within the tea estate sector by MJF Plantations, so enabling them to use

children in the plantation sector. Plantation workers have continuously

their education to empower themselves and to secure white collar and

been deprived of accessing higher education and the numbers that have

clerical jobs which would otherwise have been outside their scope.

gone on to receive university educations have been shamefully below the national average. Such a damning statistic demonstrates the endemic lack

Several schools in the tea regions are being supported with improvements

of opportunities and resources that have systematically impeded plantation

to their infrastructure and new or enhanced IT facilities, and more than

workers and their kith and kin from accessing higher education. In rectifying

1,500 children from Dilmah plantations are provided with school bags,

this anomaly, the Foundation set up MJF Scholarship Scheme, which has

books and other essential equipment at the beginning of their school

thus far provided scholarships to more than 206 students, of which 106

year.

students have already gained entrance to universities – an enlightening and

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Nurturing children in the plantations – the MJF Charitable Foundation has built 14 new crèches and renovated nearly 60 situated in the Dilmah tea estates where over 3500 children under the age of 5 receive care, nutrition and attention. Following pages: MJF Kids Dancing the traditional ‘Kawadi’. A nursery and crèche managed by the MJF Charitable Foundation in the Dilmah plantations.

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“Knowing that your children are being cared for is a big burden off our shoulders. Now we can actually concentrate more on our work but it wasn’t always like that.” Devi, Tea Picker on Somerset Estate Following page: “Education is a tool to get beyond a hopeless situation. I want to give these children that chance.” Merrill J Fernando

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MJF Kids programme

At the 2007 3rd Dilmah Global Distributor Conference, a boy named Lahiru stood up in front of the large international gathering and told his

In the vicinity of the MJF Group, lie some of the most impoverished urban

story. “I am from a motherless family,” he told the crowd. “I have a brother

dwellings in the country’s capital, Colombo. The majority of the people in

and sister and live close to the Dilmah company. Despite the adversities

these ‘slums’ are uneducated, which is a trend that tends to repeat itself

we are faced with in terms of housing, schooling, family and many others,

from one generation to the next as products of their environment. Sadly,

we are fortunate to have the blessings of Dilmah to support us physically,

therefore, the children miss out on an education as their parents often

mentally and spiritually. We go to the Dilmah complex every Saturday,

keep them at home to care for other children or to help with work.

where we are provided with opportunities to enhance our English and mathematics, computer knowledge, life skills and leadership training,

Essentially, the future prospects of these children are bleak and most are

sewing and cookery and other interesting things. I am aiming to make

destined to work in menial jobs later in life.

maximum use of the support extended to us by Dilmah and hope to be a doctor when I grow up. I wish to make my life and that of my brother

Compounding this issue is the prevalence of domestic violence and

and sister somewhat different to what we live today and I am confident

abusive behaviour, a trait that manifests itself in impoverished, uneducated

that Dilmah will be with us in our life journey. On behalf of my fellow MJF

and crowded communes. As a result, it is impossible for these children to

Kids I thank you all.”

enjoy a normal and secure childhood. In 2006, a school was built at Maha Ara with money raised by Peter In an endeavour to break this vicious cycle of entrenched poverty in the

Kuruvita, owner of Flying Fish Restaurant in Sydney, Australia, and handed

nearby slums, the Foundation set up the MJF Kids programme. The

over to the community and local education authorities along with a

objective of the programme is to provide these children with education,

computer training facility, library books and a herb garden which students

life-skills training, and a general exposure to progressive alternatives

and staff now look after. The building fulfils a duel role, functioning both

outside of their own limited and often dreadful life-experiences. As a

as a school and a community centre.

consequence, they will be equipped to step outside of their existing environs and establish a better quality of life for themselves and their

When the Development Society of the School for the Blind at Ratmalana

families, one day.

appealed for an Index Braille Embosser for the production of reading materials for its 300 students, the Foundation arranged for such a

Today, more than 700 children from the MJF Kids and are exposed to

machine to be imported and delivered to the school for use with its

a life of possibility. The children gather a few times each week at the

computer system.

MJF premises and are guided by caring teachers in arts, crafts, sewing and IT, and are assisted in their school curriculum such as in English,

For the past 60 years the Sri Lankan Federation of University Women

science and mathematics. The children also undergo character-building

has provided training for undergraduates and graduates to help them

exercises, leadership programmes and group activities.

prepare for the world of work but had no training centre of their own and worked out of a room hardly big enough to hold three people. In 2005,

The ‘MJF Kids’ are the pride and joy of the Founder and following its

the MJF Foundation pledged its support for the establishment of such a

success, the programme is being replicated in other impoverished areas

centre where the women can run a wide range of courses in the use of

including the Founder’s hometown of Pallansena, a little fishing hamlet in

computers, English language and interviewing skills.

Negombo, and at the Diri Daru Piyasa in Moratuwa.

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MJF Kids Programme – A life away from the poverty, hunger and despair of Colombo’s urban slums. The MJF Kids enjoy their time at the various MJF Centres island-wide. Following page: Using puppetry to create harmony – MJF Kids at the Moratuwa MJF Centre enjoying an evening of creativity during a puppetry lesson.

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“Every time I watch the MJF Kids perform, I feel deeply moved by their boundless energy and talent. It takes so little to appreciate this talent and to harness it.” Merrill J Fernando Following page: Traditional dancing lessons for MJF Kids at the MJF Centre in Peliyagoda.

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The Daron Curtiss Centre for Graphic Design was unveiled at the MJF Foundation Centre in 2011. Supported by long time friend of the Founder, Daron Curtiss of New Zealand, this centre offers classes in Graphic Design for underprivileged children and young adults from across the country. The first batch of students, who receive entirely free training, include several who are physically disabled and for whom graphic design represents a way of economic advancement. Following page: The MJF Foundation Centre in Moratuwa.

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The MJF Foundation Centre in Moratuwa provides a multitude of facilities for children, youth, women and the differently abled.

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More Work at The Plantations

you to come back and work for us as clerks, accountants, managers, doctors, opticians?’ The more we improve conditions on the plantations

As well as the schemes described already, the Foundation is constantly

and in the villages, the more people will stay and not automatically leave

working to improve the overall quality of life for the plantation workers,

for the big cities.”

with specific emphasis on the lives of women and children. Upto now, 14 new crèches have been built and 60 have been upgraded at the tea

Improved housing, water supply, sanitation and electricity ensure that

plantations providing the best teachers, excellent facilities, medical care,

plantation workers live in decent conditions. At Kahawatte, the Foundation

medical charts for each child to track any nutrition deficiency and oversee

has embarked on a programme to provide clean drinking water for 1600

the administration of protein supplements and milk. All the children on

workers and their families. Prior to the enhancement of the water supply,

the tea estates now get free milk, which is crucial for their physical and

local people had to walk long distances to fetch water. The Foundation is

mental development. And at all plantation Child Development Centres,

also funding training in Household Cash Management and in the reduction

there is now provision of pipe-born water, nutritional midday meals for

of use of tobacco and alcohol. Because of the vastly improved conditions,

all the children under 5 years, Grade ‘A’ facilities and services, and the

educational programmes for pregnant mothers and the provision of

provision of a television and video recorder. Parents are encouraged to

maternity units and local clinics, post-natal deaths have dropped by 90%.

send all their children to the Child Development Centres at the proper age of 6 and in 2007, as an incentive, the Foundation gave 575 children

At the 2007 Distributor Conference, a woman called Devamani stood up

a smart new school bag and school equipment on the day they started

to address the assembled crowd. She told them, “I am a tea picker from

their first term.

Endane Estate which belongs to the MJF Group. After the MJF Group took over that estate, things very quickly began to improve and change a great

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The MJF Group continues its care of the children of plantation workers

deal. We now have better roofs on our houses; water is available right at

and provides scholarships for those who wish to go on to university or

our doorstep and within our homes. Our children have been cared for and

other further education establishments. More children from the plantations

are looked after very well and there is a spacious crèche that has been

are now attending school than ever before, 206 students have gone

given to us where the children can enjoy their time. They have much in the

on to further education and 106 of those have gone on to university.

way of pre-school activity and outdoor play for physical stimulation. We are

In the January 2012, the 100th university scholarship was awarded to

provided nutritious meals every day at the crèche, such as chick peas and

the daughter of a Dilmah Plantation staff member. Merrill is aware that

other pulses, and we are also taught hygiene practices, and the children

they will inevitably see a labour shortage on the tea plantations in the

benefit from that. We are fortunate to be working for a plantation within the

future once many of the younger generation have qualified. But as Dilhan

MJF Group and we thank the Foundation for all that they do to make the

explained, “We say to the youngsters, ‘Tea has helped you. Can we get

place were we work and live a much better one that what it was before.”

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For many estate children, pursuing further education is just not possible as most parents do not have the means to support on-going education. The MJF Scholarship Scheme has enabled these children reach their full potential. Anuruddhika Vidhanapathirana (extreme left), MJF Scholarship recipient and budding lawyer with the Founder. Balakrishnan Satyaraj (left), the son of a tea picker on Somerset Estate, became the first child from the plantation sector to enter into medical college. He says “My success has motivated and given new hope for other students in the plantation sector to put in an extra effort in order to get a university education”.

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Providing a better education for our children, supporting schools in the plantations sector and providing support classes for Ordinary Level students. Following page: An initiative of the MJF Charitable Foundation to enhance educational standards of plantation kids.

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The Diriya Centre, Siyambalanduwa Siyambalanduwa, situated off Moneragala is one of the poorest and most underdeveloped regions in the country. The communities in this rural region have little access to education and few employment prospects and are therefore destined to be farmers who barely manage to eke out a living. Recognising their helplessness, the MJF Foundation established the Diriya vocational training centre through the Ethical Tea Society. Diriya offers Diploma level courses in IT and dress-making, and also provides special revision classes for students sitting for the General Certificate of Education Ordinary Level examinations. Approximately 500 students benefit from the centre and the pass rate at exams increased by 57% in just the first year of the centre’s establishment. Most students who complete training programmes at the Diriya centre find gainful employment or become self-employed based around the training programmes that it conducts. Several programmes to uplift the lives and livelihoods of rural Sri Lankans were initiated through the MJF Charitable Foundation. The programme aims to enhance the lives of impoverished, rural women in the Weerawila and Ambalantota communities and has built and equipped two vocational training centres with sewing machines and computers, providing over a thousand women with the means to a better livelihood. Right: Students leaving the Diriya Centre in Siyabalanduwa after support classes.

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Empowering women from marginalised communities and providing a livelihood source for the future.

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The arts and crafts turned out by the talented students of the School for the Hearing and Visual Impaired in Monaragala. The MJF Charitable Foundation established the Daskam Nivasa or House of Talent as a venue for carrying out vocational training and as a place to exhibit the different products developed by the students. Following page: Differently abled students of the School for the Hearing and Visual Impaired in Monaragala busy at their sewing machines.

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Caring for differently abled children is an important part of the MJF Charitable Foundation. The Foundation manages the Monaragala School for the Hearing & Visual Impaired, Sithijaya, the Merrill J. Fernando Centre for the Differently-Abled in Ambalanthota and Diri Daru Piyasa at Moratuwa all catering towards the betterment of differently abled children and youth in Sri Lanka. Following page: MJF Cricket stars – being differently abled did not stop this team of young men from becoming the best differently abled cricket team in Sri Lanka.

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Being differently abled should not stop anyone from achieving their dream. “We see the world though we are blind, we hear the world though we are deaf, we speak to the world though we are dumb. Thank you for making this possible.” Student, School for the Hearing & Visual Impaired, Following page: Creative time at Sithijaya, the Merrill J. Fernando Centre for the Differently-Abled in Ambalanthota.

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Care for the Environment

eventually released back into the wild. There is also a resource centre which tells the story of the elephant and documents its gentle nature

Until 2006, the MJF Foundation mainly followed an agenda of social

and family instinct, and aims to explain to farmers and smallholders

justice but the work of the Foundation now also includes a commitment

how to live in harmony with these symbolic creatures.

to the conservation of the environment because it has a direct impact on human life. Dilmah had already shown an interest in this area when they

On 5th June 2008, World Environment Day, Dilmah Conservation

sponsored the World Conservation Union’s Asia Regional Conservation

celebrated with a unique initiative designed to broaden awareness of

Forum held in Colombo in December 2003. Representatives from

issues of environmental sustainability and reduction of global warming.

governments, non-government organisations (NGOs), research and

Dilmah and IUCN have worked to evolve a series of messages

scientific organisations, bilateral and multi-lateral donors, UN bodies,

that increase awareness of issues that threaten the environment

eminent scientists and conservationists from 23 countries came

and biodiversity and offer tips on how everyone can work towards

together to discuss environment and conservation issues in the region

more sustainable lifestyles. Merrill championed the call to action in a

and to ensure that efforts to achieve agreed goals are well-informed,

symbolic tree-planting ceremony at MJF Group premises and at two

relevant, effective, compatible and connected. Dilmah’s involvement

other MJF companies, Timber Concepts and MJF Travel & Trucking.

demonstrated its commitment to the wide range of issues – from sport

The Jak tree that was planted symbolises the Dilmah orientation

and health to housing and conservation.

towards environmental sustainability with a humanitarian dimension, for Jak is a native species of the Asian tropics, its broad leaves offering

In 2007, Dilmah Conservation was announced as a business objective

shade from the sun and its fruits offering food.

of the MJF Group of companies, with the aim of protecting the

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environment by encouraging a harmonious co-existence between man

Dilmah has always believed that one must care for the Earth and our

and nature. The effort of this conservation aspect of Dilmah’s activities

initiatives to support the Montreal Protocol includes the change over

is supported and assisted by the World Conservation Union (IUCN), the

from ozone depleting chemicals to earth friendly substitutes in Dilmah

world’s largest conservation organisation which provides environmental

tea gardens. Dilmah’s efforts in this regard have been commended

expertise and research facilities in various parts of Sri Lanka to help

by the United Nations Environment Programme (UNEP) in their

implement conservation programmes and a host of other credible

publication Goal Zero – Success Stories from Asia and the Pacific in

government institutions and organisations.

phasing out ozone depleting chemicals.

Dilmah Conservation is working to support the welfare of one of Sri

Dilmah Conservation is working in the Northern and Eastern

Lanka’s most endearing and revered animals – the elephant. At

Provinces to document the status of the coral reefs and other marine

Udawalawe, Dilmah is assisting the Department of Wildlife Conservation

environments as well as carry out research on conserving the dugong

with the Elephant Transit Home (ETH) to establish proper facilities where

in Sri Lanka. With the end of the war, some of these areas have opened

wild elephants suffering from various medical conditions can be treated,

up for the first time and due to minimum levels of human interferences

and where orphaned baby elephants can be cared for, nurtured and

during the war these coral reefs and other marine environments have

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remained relatively well preserved as compared to areas on the Southern coastline. However, at present easy access to these areas are creating the possibilities of future exploitation of these marine resources. Dilmah Conservation will support sustainability efforts in Sri Lanka to create better lives and livelihoods for communities to live enriched lives causing least harm to nature around us. These efforts include ensuring sustainability in Dilmah tea gardens to improve productivity and research on high yield food crops. A series of biodiversity assessments were carried out in Dilmah tea estates to ensure the conservation of biodiversity in tea gardens. Tea gardens have been identified to harbor various species of fauna and flora and these assessments were launched in order to identify and document these species for future conservation. As the first step, Dilmah Conservation worked with the Department of Zoology, University of Colombo and the IUCN Sri Lanka Country Office to carry out these assessments at Kahawatte and Rilhena, two estates in the Dilmah group. Some of the fish species discovered in the waterways coursing through Dilmah tea gardens have been replicated at the Mankada pottery centre. These species include various endemic and indigenous varieties. Greening Batticaloa, is a dual purpose initiative aimed at increasing the green cover in Batticaloa while providing a livelihood option for beneficiary communities through the planting of cashew trees. According to research, Batticaloa, an area affected by two distinct natural disasters within a span of thirty tears, needs 150 sq. km of forest cover to reverse its adverse effects. Dilmah Conservation will work with the Cashew Cooperation, relevant Divisional Secretariats and the Sri Lanka Army to address this situation by planting 50,000 cashew trees within a span of three-years in some of the severely affected coastal areas. The cashew trees will form a protective green canopy which will adjust the ecosystem through carbon absorption mechanisms.

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Previous page: Working with the gentle giants – Dilmah Conservation continues to protect and conserve the Asian elephant. Work in the Udawalawe National Park and adjacent communities are part of Dilmah Conservation’s work aimed at making Udawalawe into a model national park. Dilmah supports the Elephant Transit Home (ETH) and continues to upgrade the Information Centre (following page) which functions as an information dissemination tool for visitors. The Foundation has assisted the Department of Wildlife Conservation to establish proper facilities for the treatment of wild elephants by caring for, nurturing and eventually releasing back into the wild, baby elephants that have been orphaned as a result of the human elephant conflict.

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Using nature as a tool to bridge the rifts created during 30-years of protracted war is an initiative of Dilmah Conservation and Professor Sarath Kotagama of the Field Ornithology Group of Si Lanka (FOGSL). Furthermore the, Birds of Sri Lanka, a comprehensive guide on Sri Lanka’s avian fauna was published in Tamil in January 2012 as part of the initiative. This is the first publication on birds to be published in Tamil in Sri Lanka. Dilmah Conservation is also supporting the scientific community in Jaffna rebuild the Field Work Centre in order to facilitate exchange of scientific data between the people of the north and the south. WED initiatives were launched in 2011 to inculcate conservation sense into young minds through the use of technology. Now in its second consecutive year, it is carried out in collaboration with the Sri Lanka Association for the advancement of science (SLAAS) and the Field Ornithology Group of Sri Lanka (FOGSL).The initiatives, Go wild on the web and Nature Database have created interest and enthusiasm towards environmental conservation amongst many students island wide.

Sustainable agriculture A fundamental objective of Dilmah Conservation is to educate and impart knowledge on matters relating to the environment. The Sustainable Agricultural Research Centre (DCSARC) was established at the Moratuwa MJF Centre to focuses on biochar research as part of this objective. The Centre aims to carry out extensive research to convince government authorities involved in agriculture related activities that there is suitable technology to introduce sustainable agricultural models without being dependent on chemical fertiliser or organic fertiliser. The main CO2 pool in the world is locked in the soils, and the Centre will conduct carbon release tests before and after biochar usage to prove that carbon sequestration could be achieved by applying biochar in agriculture.

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Using bioremediation methods to rejuvenate our tea industry will support healthier tea plantations in the future. Following page: Dilmah Conservation is carrying out a pilot study at Houpé Estate in Kahawatte. Some of the methods under trial are biochar and aerated compost tea to improve soil condition naturally, without chemical additives.

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Fish species discovered in the waterways coursing through Dilmah tea gardens are among the original craft replicated at the Mankada pottery centre in Udawalawe.

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Kids and conservation as part of the Greening Batticaloa initiative - Involving children in conservation is a way to inculcate respect and love for the environment. This is part of Dilmah’s commitment to sustainability.

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In January 2012, Dilmah Conservation laid the foundation stone to rebuild the Field Work Centre (FWC) in Thondamanaru, Jaffna. This marked a highlight of the ‘Reconciliation through Power of Nature’ programme carried out in partnership with Professor Sarath Kotagama of the Field Ornithology Group, Sri Lanka (FOGSL) and the Centre for Children’s Happiness, Jaffna (CCH) to create harmony and reconcile communities pushed apart during thirty years of war.

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Bird watching and appreciating nature on the Thondamanaru Lagoon – a group of Jaffna students enjoying a rare opportunity to enjoy the benefits of nature as part of the ‘Reconciliation through Power of Nature’ programme. This event also marks the publication of the first ever Tamil publication on birds of Sri Lanka. Following page: Firsthand experience in bird watching for the children of Jaffna.

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Northern students visit the Sinharaja National Heritage Wilderness Area (also a UNESCO World Heritage Site) in South Western Sri Lanka with Professor Sarath Kotagama of the Field Ornithology Group of Sri Lanka (FOGSL) as part of the ‘Reconciliation through Power of Nature’ programme of Dilmah Conservation, FOGSL and Centre for Children’s Happiness, Jaffna (CCH). Following page: “Nature is a common platform for everyone, be it children from the North or the South. A chance to enjoy nature gives children an understanding that it must be conserved.” Professor Sarath Kotagama

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Previous page: An indigenous way of life threatened. Uplifting the lives of indigenous communities - Sri Lanka is home to unique indigenous populations and the Veddahs are identified as the original inhabitants of Sri Lanka with a history that spans thousands of years. Their lives are affected by the onset of development and Dilmah Conservation is supporting their dignified existence through various initiatives. Following page: Coastal Veddahs on their annual ‘Pada Yathra’ or the Pilgrimage of Faith.

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Supporting traditional communities – The nomadic gypsies or the Ahikuntaka are known for their snake charming skills and colourful lifestyles. They lead lives far removed from the mainstream and face numerous difficulties in this day and age. Dilmah is supporting the preservation of their unique cultural identity through the establishment of a cultural centre.

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MJF Charitable Foundation Abroad

Dilmah has also partnered with Hospice New Zealand by providing their tea requirement for every Hospice around New Zealand for the past

Although most of the projects funded by the Foundation are Sri Lankan

12 years. This ensures that the patients and their families and friends,

based, a few schemes are running in other countries where Dilmah sells

volunteers and staff are always able to have a comforting cup of the

its products. In Africa and Asia, educational projects are funded, managed

finest quality tea.

and monitored through existing Dilmah market structures, while in Latvia, Lithuania and Estonia, centres funded by profits from sales of Dilmah teas

Campaigns to raise money and help local charities have also been run

provide training, counselling, food and beds for street children of all ages

in Vietnam, Norway, Georgia and Australia.

who have nowhere else to go. In 2004, Dilmah supported the Cyprus Anti Cancer Society by donating

International Recognition

3000 mugs worth one Cyprus pound each through two supermarket

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chains in order to raise money for the charity. Dilmah’s agent in Cyprus,

In 2005, Dilmah was honoured by the Medinge Group, an international

Myrto Clappa of Clappas Trading House Ltd., arranged for handouts to

think tank group of professionals whose aim is to influence business

be available to consumers to give information about how the money from

and society to become more humane and caring and to encourage

the sale of the specially designed mugs would be spent and to tell people

‘compassionate branding’. In 2005, Dilmah was prominent on the

about the health and anti-cancer properties of tea. Colourful posters were

annual list that names the ‘Top Brands with a Conscience’. The list is

put up in every store to draw attention to the scheme and the mugs

“evaluated on criteria including evidence of the human implications of

were arranged in prominent eye-catching displays near the posters and

the brand, and considering the question of whether the brand takes

leaflets. Dilmah employees were also there to talk to consumers and

risks in line with its beliefs. Evaluations are made based on reputation,

discuss tea, the charity, the scheme, and the mugs. The mugs were all

self presentation, history, direct experience, contact with individuals

sold in a couple of weeks, with some customers buying more than one in

within the organisations, media analysis and on an assessment of the

their wish to donate to such a worthy campaign.

expressed values of sustainability.”

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Also in 2005, Dilmah Tea received a Presidential Merit Award in

Foundation’s work is proof that MJF Group is achieving what others have

recognition of its contribution towards preservation of the environment

not. The team has been out into the devastated areas, is helping to put

and the promotion of an environment friendly culture. Dilmah was the

lives back together again, offering little rays of hope to those who lost so

only company to receive such an award in the industrial category and

much. The practical support, the vision for a better future, the emotional

was praised for its efforts to make the tea plantation industry sustainable,

and spiritual support they have given are a truly remarkable testimony to

to promote conservation and biodiversity and to support the traditional

a family who really cares.

ayurvedic system of medicine. As Dilhan once wrote, “Dilmah today represents much more than a brand

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The Merrill J. Fernando Charitable Foundation has received many

of tea with a commitment to quality. The brand followed its Founder in

donations over the years from other organisations and whereas donors

blazing a trail since it became the first brand to be picked, perfected

cannot trace the funds paid to some of the larger, sometimes rather

and packed in a producing country. The Ethical Tea, Dilmah represents

anonymous charities, those who give to the MJF Foundation can be

a philosophy that has relevance beyond its category. In benefiting the

sure that donations are reaching those who need help. At the end of

workers and community that makes Dilmah possible, it is the most

2006, it was announced that vast amounts of money donated by people

pragmatic and effective example of genuinely fair trade – trade that

all around the world to help tsunami victims had still, two years on, not

benefits the producers beyond the token benefit that the Fair trade

been spent by the various charities. But the above summary of the

movement advertises. Dilmah also benefits the consumer in that the

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brand, represented by the Founder, his family and team who all share his vision, listens and respects the covenant it established in 1988 with the consumer”. Many years ago, Merrill had a dream to create a business that would go beyond traditional boundaries and be of human service. He has fulfilled his dream. Dilmah has broken through the traditional constraints of Sri Lanka’s tea industry, brings ethically produced tea to tea lovers all around the world, and renders a humanitarian service to thousands and thousands of people in Sri Lanka through the MJF Charitable Foundation. When Dilmah celebrated its 21st anniversary in 2009, events in the company’s first two markets, New Zealand and Australia, offered an opportunity to tell more consumers about the achievement of the Foundation and to repeat and reinforce the message of Merrill’s enduring desire to ensure that others benefit from Dilmah’s success.

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Previous page: “My greatest joy is in their smiles.” Merrill J Fernando Working for the welfare of our staff is an important part of the Dilmah doctrine that business is a matter of human service. Following page: “Our greatest strength is our workforce.” Merrill J Fernando

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For centuries, problems of mankind have been solved over a cup of tea Whether they were problems between nations, amongst businesses, even in families, between husbands and wives, tea has been the soothing balm that helped their solution. The simple act of pouring a cup of tea is, in itself, an ice-breaker, providing pleasurable anticipation of the goodness that is to follow. I have dedicated 63 years of my life towards providing that cup: not only to solve problems but to add sunshine, to our day, with every sip of Dilmah. Merrill J Fernando

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Changing Lives Supporting people to enhance their lives and livelihoods is an integral part of the work carried out by the MJF Charitable Foundation. The central theme of this model is to improve the standard of a capable individual and use this success to benefit the wider community. The recipients of the Small Entrepreneur Programme of the Foundation have gone a step further in becoming part of mobilising a larger community and truly Changing Lives. The following stories are a fraction of the over 10,000 lives that have been enhanced by the activities of the MJF Charitable Foundation upto now.

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Sathyabama, seamstress In a small house located in Batticaloa, in the East of Sri Lanka

Today, Sathyabama is a successful small entrepreneur with a

lives Sathyabama, a mother of four and a woman of immense

small clothing business thanks to the sewing machine given by

courage and strength. Sathyabama has had to fend for

the MJF Charitable Foundation. In addition to the income earned

herself and her family due to various adverse socio-economic

from sewing clothes, the Foundation also helped Sathyabama’s

circumstances. Her husband, a former combatant, is paralysed

husband acquire a fishing boat in which he goes fishing with

as a result of an injury suffered during the war. In 2004, the Indian

assistance from his friends. Sathyabama attributes her new lease

Ocean tsunami destroyed their small fishing business that was

of life to the MJF Charitable Foundation which has helped her raise

providing a meagre income. Since then Sathyabama has been

her head in what seemed a hopeless situation. She says “Thanks

the sole breadwinner of the family.

to the MJF charitable Foundation and the support given to me, our lives have taken a happy turn and we live comfortably now”.

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Thushara Madushanka Thushara

Madushanka

young

lad

hailing

from

end his life several times. He was at his lowest ebb, when the Sri

Siyambalanduwa in the Moneragala District, identified as one

Lanka Army stepped in and gave him a pair of artificial limbs and

of the poorest areas in Sri Lanka. In 2009, he enlisted in the

directed him to the MJF Charitable Foundation. The Foundation

Sri Lanka Army after completing his secondary education to

provided assistance to Thushara to purchase a custom modified

help support his parents and siblings. Misfortune struck a few

3-wheeler which enables him to drive despite his disability.

months after he joined when he lost both his legs in a mortar

Today, Thushara is the proud father of a baby boy and credits

attack, during the conflict that prevailed.

the Foundation for having given him a new lease in life.

His dreams of a better life were shattered and during the 1½ years he was confined to the wheelchair, Thushara attempted to

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Udayaratne, cycle repairman An extensive burn injury at childhood left Udayaratne of

Today, Udayaratne runs a flourishing business and has found

Moneragala disfigured for life and suffering from impaired

loyal clients amongst the society that initially rejected him, and

growth. Ostracised by society due to his disability, Udayaratne

has managed to build a home for himself and his parents with

found it difficult to find employment. Despite these obstacles,

his earnings. Generous in nature, Udayaratne never turns away

Udayaratne was determined to provide a better life for his

clients – even if they are unable to pay him for his services. His

parents and his family. As he was unable to find work anywhere

philosophy is that it is with the poor man’s money that he has

Udayaratne chose to start his own business – a cycle repair

built his business and therefore he needs to give back to the

shop. Unfortunately he did not have sufficient resources to

community what they have made possible.

purchase the tools for his business and approached the MJF Charitable Foundation for assistance which was readily given.

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Anuruddhika, budding lawyer Anuruddhika Vidhanapathirana is a budding lawyer. She was

Anuruddhika and her brother are among the two hundred

able to successfully complete her Bachelor of Laws from the

plus recipients of the MJF Scholarship scheme that supports

University of Colombo with assistance from the MJF Scholarship

deserving children in the plantation sector with financial aid to

scheme of the MJF Charitable Foundation which supports

complete their Advanced Level examinations and university

secondary and tertiary education of children from Dilmah

education.

Plantations. Anuruddhika is not the only recipient in her family to receive a scholarship – her younger sibling, an engineering

Of her achievements, Anuruddhika says “my education was

student, is presently at the Ahmadabad University in India where

made possible because the MJF Foundation provided me with

he is completing his Bachelor of Engineering.

a scholarship. I am a proud recipient and I intend to use this opportunity to better myself and the community I live in”.

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Visvanathan Bamini Visvanathan Bamini of Point Pedro is a mother of three. Since

engage in the work on her own and sell her produce direct. They

the disappearance of her husband nearly five years ago, Bamini

both stated, “We are very grateful to the MJF Foundation for

has struggled as a single parent to provide for her family and

having selected deserving women in this part of the country for

worked as a manual labourer for a dry fish vendor in the area.

their project at a time when we were really in need of support as

The MJF Foundation supported Bamini by providing her with

virtually no one had taken any steps to support us since the war

the necessary utensils for commencing her own business of

ended several years ago”.

processing dry fish. They are optimistic about enhancing their earning capacity Today, she works in collaboration with her neighbour Donald

through their venture.

Rajini, also a mother of three and war widow, and is able to

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Samantha, businessman and community leader Samantha is a recipient of the Prison SEPs launched as part

where a successful orange plantation is flourishing under the

of the Reform and Integrate Programme of the MJF Charitable

patronage of the MJF Charitable Foundation. Samantha has not

Foundation. This novel Programme provides livelihood support

only enabled himself with support from the Foundation, but he

for former prisoners and enables their dignified reintegration

has also managed to enable others in his community. He is now

into society that often shuns them due to the stigma associated

happily married to a girl from his village and is the father of a

with prison. Samantha was supported to establish his tailoring

baby girl. He is a true example of ‘Changing Lives’.

business with aid from the Small Entrepreneur Programme of the Foundation and today he employs two people from his village, offering them an opportunity for betterment as well. He is also a community leader in his village in Siyambalanduwa

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MJF Holdings Ltd 111 Negombo Road, Peliyagoda, Sri Lanka. ( +94 11 482 2000 Fax +94 11 482 2001 info@dilmahtea.com www.mydilmah.com

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A Cup of Kindness, The Story of Dilmah Tea

Articles inside

The kindness in the cup

Preserving the past

The leisure and pleasure of tea

Dilmah’s family group

Independence

The magic of Ceylon tea

The brand with a conscience

Reaching out to the world

From the dragon court to the land of the lion

An island of tea

Introduction

The six pillars of Dilmah