50 minute read
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 visitors arrive outside the Dilmah packing factory in Colombo today, the impression they immediately have is of stability and continuation, of an established business running like clockwork, of an institution that has been here for as long as anyone 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 link the various parts of the estate and lead around to the entrance of the main office building. Here, cars draw up under a canopy of palms and deliver their passengers into the cool, calm air of the entrance lobby. There is never any noise or disturbance at Dilmah.
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
port for the shipment of tea to places all around the world. From Colombo, Dilmah teas are exported to more than 100 countries.This is very much a family company. No-one else is involved in its running. Decisions relating to company policy and marketing are made mostly by Merrill. He has a very loyal team of executives that includes his two sons, Malik and Dilhan, and is headed by Deputy Chairman Himendra Ranaweera, who has been with Merrill for over 20 years and who is his trusted lieutenant.
After school in Colombo, Malik went off to Babson College Boston and 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 Colombo, they worked in every department of the company in order to gain a thorough understanding of the way in which the business operated. Today, they work very closely together as a team, overseeing their own individual areas of responsibility but overlapping and sharing, whenever appropriate, to get the job done. Each of the three men brings different qualities and strengths to the company. Merrill is of course the driving force and takes a very ‘hands on’ approach, Malik tends to concentrate on management and operations, while Dilhan enjoys marketing and direct contact with the customers. Merrill’s passion and plans to transform the world of tea in his own lifetime are supported at every step by his sons’ same convictions and vision. They meet regularly to direct company business and, because the family spends a good deal of time together both in and out of work, 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 verandah of one of the bungalows up at the plantations.
Malik’s wife, Kimarli, is a banker and remains busy with her own work. Dilhan’s wife, Serena, assists him in his business-related, social activities and with the work of the MJF Charitable Foundation, while her primary role is in caring for their three children. The grandchildren are often to be found at the factory on a Saturday, or on the plantations when the family visits the tea region. As they grow up, they have been involved with the people who work for Dilmah, listening, learning, watching and sharing their
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
segments and showed the world that producing nations are fully capable of competing with the multinationals and retaining, for their benefit and that of their country, all the profits that are otherwise taken away. The tea that Dilmah grows on its own plantations is sold direct; it is not mixed with any other teas; it is not traded up by middle men; it is simply high quality tea traded fairly and honestly. The drink brings pleasure to 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 it. The company is seen by many as a pioneer because of the unusual way in which the business is run. Merrill’s theme that underpins the company’s approach to tea is, “Let’s go ahead with one focus - quality, quality, quality! People recognise the quality of Dilmah. We must listen to what the consumer says. We spend time in supermarkets, talking to the customers, asking them what they like, what they look for in a product. We need to keep our feet on the ground and stay in touch with the consumer. The more we grow as a company, the more we need to remember that!”
Merrill, Dilhan and Malik never lose sight of the certain knowledge that quality is the most important aspect of their product, and, as Dilhan explains, “we have continued to pursue my father’s vision for quality, authenticity, integrity and ethics in tea.” They never waver from these principles, even when competitors come along behind them and offer Dilmah’s customers what they say is a similar tea but at a lower price. When this happens, Dilmah may lose a certain amount of business for a short while but the customers soon come back because they realise they have been misled. Dilmah is determined not just to maintain the quality of its particular teas but of all Ceylon teas. What other tea companies have not yet grasped is that by selling low quality, cheaper tea, the consumer’s palate is trained to accept second or third best and to drink cheap tea. The long-term effect of this is that quality tea-producing countries like Sri Lanka are pushed aside in favour of countries whose tea is lower in price and lower in quality. So Sri Lanka and its tea industry suffer in the longer term. Dilmah’s strength in a difficult market is its honesty, its integrity and the quality of all its teas. But Dilmah’s vision is not just for the quality of the tea but also for quality of life.
Merrill’s philosophy in life and in business is guided by a quotation from the bible’s Book of Proverbs 11 in which Solomon says that “a generous man will prosper; he who refreshes others will himself be refreshed”. This quotation is displayed on the wall behind Merrill’s desk and it reflects Dilmah’s commitment not only to the spirit of philanthropy as expressed through the work of the MJF Foundation but also to the quality and integrity of the Dilmah product. Dilmah takes a long-term view on every aspect of business – the long-term success of always selling good quality tea, of being trusted and 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 it can grow and thrive, of investing in and training staff who will stay with the company and radiate their individual strengths outwards to the team around them. This approach is not about just earning profits; it is about nurturing and supporting a family in which every single member benefits. The motto at Dilmah is “Let’s go for quality, let’s go for ethics. The more we as a group do the right thing, the more we’ll succeed with the consumer.” And the genuine feeling is that it would not be detrimental to Dilmah if other tea companies took the same approach. On the contrary, the belief is that it would actually help everyone because more people would drink tea and so the entire sector would grow.
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
a strong sense of fairness. Throughout his life, Merrill has been driven by a desire for justice. He treats his clients, his trade associates, his employees, his friends and his family with the same consideration and respect. He offers customers a reliable, consistently high-quality product at a fair price. In his attempts to resolve imbalances and injustices, he has never been afraid of speaking the truth and seeking a just and fair solution – even if that means losing friends. Of his employees, he expects no more and no less than he would himself give, but he is always concerned for their welfare and always appreciative of the part they play in the success of the company. Dilmah was founded on a sense of fairness, fairness is the driving force that powers the company’s engine and the thread that binds and holds the entire structure together. In both his working and social life, the love that Merrill receives from his friends and family, and the respect and admiration he inspires in the business world and the tea industry say more about him than any words can convey.
The Workforce
When MJF Co. Ltd. started packaging the first Dilmah products, the company was relatively small, with approximately 70 people in the offices and between 150 and 200 in the factory. The product range in those days included three packs – cartons of 100 tagless tea bags, cartons of 100 tagged tea bags and packets of loose Ceylon tea. Today the range consists of more than 300 products and the number of staff needed to develop, pack, design and distribute those all over the world is obviously far higher and now there are 1000 employees in the factory and about 20,000 at the plantations, with agents and distributors also representing the company in more than 100 countries where Dilmah teas are sold. As in all their work, Merrill, Dilhan and Malik take an unusual approach to the way in which they relate to their employees and involve them in the daily operations of the company. “We try to train our people to share their thoughts on markets, possibilities, products, processes, etc; we try to empower people in a climate of changing needs.” In the office, on the production line, in the warehouse, in all sections of the company, this philosophy allows everyone to aim for a higher level of achievement and satisfaction and anyone can suggest ways to improve their individual routine and so help increase the overall productivity of the team. This approach is based on the Japanese concept of ‘Kaizen’ which means ‘continuous change’ and is designed to encourage people to strive for perfection by eliminating waste. It is a system specific to each individual employee and focuses on proposals that will improve his or her work as an individual. It involves three processes – the recognition of problems, 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 gifts to successful members of the team who achieve these goals.
One young man who spent a few years working for Dilmah wrote the following on his last day at the Colombo factory: “As this is my last working day at MJF Group, I take this opportunity to thank you for the opportunity given to develop professionally and personally into who I am. I am sorry that I could not meet you all personally and thank you. I believe this company is built on morals which are an inspiration to any employee. In this light, my deepest appreciation for the exposure, training and guidance provided by each of you, and mainly Chairman’s visionary spirit which was inspirational to me. May I also wish each of you and your families the very best in life and in business.”
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
the outside tells the truth about the teas inside. Various schemes have been tried over the years to try and protect the name of particular teaproducing countries or regions, but even in the days when Sir Thomas Lipton was advertising his pure Ceylon tea all around Britain, he was mixing it with leaf from India just like all the other blending and packing companies. That is exactly what Merrill has been trying to put a stop to for more than fifty years. And so Dilmah’s most important selling point is that its teas are sold with integrity and honesty. Whatever it says on the packet tells the truth. And whereas the average shopper picks up a packet that just says ‘Tea’, Dilmah gives detailed information about whether the tea is Single Origin from one country (Sri Lanka) and therefore teas from several different estates, Single Region (teas from several gardens in just one of the island’s famous speciality tea areas such as Uva or Dimbula), or Single Estate (from just one of the beautiful gardens such as Somerset Estate or Lover’s Leap where the tea is grown).
Dilmah’s packing factory in Colombo is probably the most impressive and certainly most efficient tea packing facility anywhere in the world. When made tea arrives here from the tea factories, it is thoroughly checked and cleaned by a series of cyclone, vacuum and metal detecting machines that remove all foreign bodies such as straw, paper, or pieces of metal to ensure that the tea meets international standards. Once a sample of the cleaned tea has been approved, the bulk tea is fed into a totally enclosed, air-tight system of tubes that controls the flow of the tea into the machines that make and fill the tea bags, or guides the correct quantity of loose tea into sealed packages. The advanced machinery is capable of packing untagged tea bags at the rate of 2000 per minute and tagged bags at up to 450 bags per minute. The filled products almost magically appear at the other end of the process, ready to be gathered up by the efficient hands of the girls who work in this section of the factory and stashed into the cases in which they are delivered to the customer. So what customers get is tea that is picked in the morning, processed later in the day, bulked and packed into paper sacks at the tea factory on the plantation, delivered to the Colombo packing plant, packed into teabags or packets and palletised ready for shipment just a couple of days later. Compare that with what happens in consuming countries where bulk teas are not actually packed into tea bags or cartons until about 12 weeks after they were made in tea
factories in India, Kenya, Sri Lanka, Indonesia or Brazil. Tea that is packed at source is fresh so no wonder Dilmah’s customers keep coming back for more!
Dilmah is known for its consistency and reliability and when consumers choose packets of Dilmah tea, they are captivated for life because they 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 ex-planter myself for 30 years, I write to congratulate you on the success of your venture”; “Having spent 26 years of my life in India mainly in the tea growing areas of the north and in particular Assam, I learnt how my palate appreciated good tea. I am writing to congratulate you and your family for making an excellent tea”; “For some years I have been buying other teas but having tasted Dilmah, I shall be buying it from now on”. Families all around the world feel that the Dilmah family members are their friends and that the tea they make is simply the best. But what they also like is the fact that Dilmah cares not just about the customers but also about those who are less well off: “I have just finished reading your news insert in my new packet of Dilmah tea. I felt that I had to write to you and tell you how impressed I am that you are using your wealth to help socially depressed people. You and your family have been blessed by God and you spread your blessings around.” A random selection of letters to Dilmah over the years give the same message – thank you for your tea and thank you for helping others who are less fortunate.
The Products
Dilmah’s very large range of widely varying products is evidence of how in touch Merrill, Dilhan and Malik are with the consumer. They move with the times, recognising the appreciation of tradition and heritage, responding to the demand for good quality tea, but also anticipating shifts in the market and responding to or indeed driving the demand for a fresher, snappier, more exciting 21st century approach. Having started with just three products in 1988, Dilmah now offers a wide range of tea bags and loose teas to suit every palate – from the rich flavour and full strength of the breakfast and afternoon teas to the aromatic and
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
consumer’ who wants a special experience beyond the everyday, an experience that offers a sense of indulgence, luxury, uniqueness, authenticity, ethical honesty, and style. As Dilhan explained at the 2007 Distributor Conference, “ We are not saying, ‘This is good tea, it’s got a good story, this is the one for you.’ We are saying, ‘What would you like? How could we serve you today?’ The tea experience goes beyond – it takes those teas and it offers them in a variety of different ways – iced, cocktails, mocktails; how would you like your tea today? That is what it’s about. The only requirement – it’s got to be good tea!” Branded shelving, counters, carts, kiosks and a ‘t-Bar’ are available for installation in such varied locations as shopping malls, department stores, hotel lobbies, airport lounges, spas, cruise ships, resorts, restaurants and cafes to allow eye-catching and effective presentation, brewing and service of the teas. The company is proud of its many outlets around the world and has found them an excellent way to reach new customers.
Single Region Teas
Whereas most tea companies have failed to recognise and take advantage of the similarities between tea and wine, Dilmah draws the parallels very successfully and markets a range of connoisseur teas using the same language used by the wine trade. The company has long appreciated the increasing understanding amongst consumers of different grape varieties, of the powerful influence on different wines of location, altitude, soil type, seasonality, climate, cultivation and production methods. As Dilhan explains “Ceylon is recognised by discerning tea drinkers as the home of the world’s finest tea. We grow tea from sea level to over 6,000 feet elevation with the flavour, aroma and taste of tea changing almost every 250 feet. Sadly, the commoditisation of the tea category in the last 30 years has meant that consumers have not had an opportunity to savour this wonderful variety.” By drawing on the obvious similarities between wine and tea, the packaging of Dilmah Single Region teas offers the customer details of the different growing areas, descriptions of the leaf and liquor, and exciting tasting notes that echo wine terminology. The four teas in the range take account of the almost magical variations in colour, flavour, aroma, leaf appearance and terroir, raising the teas into a quality bracket all their own and giving consumers an opportunity to savour the special character just as they would enjoy wines from different origins. When Dilmah asked four renowned wine tasters around the world to taste the teas, their tasting notes used all the wonderfully descriptive words and phrases usually associated with wine and demonstrated clearly how quality teas offer the same infinite variety of flavours and aromas.
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 in perfect, very fresh condition. This imaginative series is named from the Singhalese word for garden – ‘watte’ - and includes four fine teas:
Ran Watte, in the style of Champagne, means ‘golden garden’ and is grown at 6000 feet at the very top of the paradise island. It contains rivulets of flavour that linger and refresh, enliven and delight. This beautiful golden orange tea boasts an elegant lemony flavour with a light, delicate character and a mellow after-taste that is perfect with petits fours. New
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
it in style to a Pinot Noir: “charming, lush, supple, and like a good Pinto Noir, it also has some tannin-like backbone, while a light spiciness is present as well”. Ian McKenzie compares its colour to “a well-aged oloroso sherry”, and thinks that the aroma carries “undertones of sweet new-mown hay”, describing it as “fresh and lightly aromatic, even fruity and not dissimilar to the slightly gamey forest floor aromas found in pinot noir”. The palate, he says, “is immediately flavoursome and supple leading into a soft round medium bodied mid palate. The back palate develops richness and depth with mouth coating but fine and complex tannins resulting in great length – overall a lovely balance of attractive, almost fruity flavours and soft generous tannins”. And Edwin Soon describes it as “an almost savoury taste. Fruity, exotic perfume with a ‘balance’ in taste from the ample tannins, strong but not brooding. Comparable to a Pinot Noir wine made from grapes grown in cool climates. A tea that is delicate, radiant and elegant”.
Meda Watte, in the style of Shiraz, means ‘mid garden’ and is from the mid-grown region at altitudes of 2000-3000 feet. It yields a dark amber liquor that is strong, rich, full-bodied and grippingly pungent. In the aroma, Bob Campbell perceives “orange rind, cloves, vanilla, seaweed, earthy biscuit and peat smoke” and of the flavour, he says, “Elegance on a grand scale. Rich robust tea with firm, fine tannins”. Hubrecht Duijker describes Meda Watte as “firm, full, yet lively taste with hints of caramel, fresh figs and some floral elements, plus a good finish. Especially the structure and firmness are in line with an Australian style Shiraz. Like the other three teas, this one has a beautiful balance”. Ian Mckenzie says it is “sweet, lightly pungent and aromatic tobaccolike characters with complex roasted nut undertones, reminiscent of lightly charry barrel ferment characters found in many fine red wines”. And Edwin Soon describes it as “medium-bodied, deliciously dry and generous. Analogous to a Syrah grown in warm but not hot climate areas, on steeper hillslopes facing the sun. A handsome and impeccable tea”.
Yata Watte, means ‘low garden’ and is from elevations stretching from the shores of the Indian Ocean to 1000 feet. It gives a deep, mahogany-toned liquor that has a heavy robust, dark and creamy taste, plenty of personality and drinks well with black forest gateau. Bob Campbell’s description of the aroma is “lemon blossom, toasted, malted barley, biscuit and peat”, and of the flavour, “rich, full-bodied with a backbone of fine-grained, drying tannins”. Duijker explains, “The expressiveness of a good Cabernet Sauvignon can be experienced in this dark brown tea. It tastes round, full, almost muscular and juicy with elements of – ever so slightly sweet – spices and bay leaf. Very restoring indeed. And like a good Cabernet, with a long, harmonious finale”. For McKenzie, “This tea is somewhat of an enigma. The colour, aroma and initial palate sensations, which are all big, rich and flavoursome, lead one to expect a strong, heavy, mouth-puckering tannin finish. The surprise is that instead of flavour building as expected at the finish, it actually diminishes. The structure reminds me of Pinot Meunier sparkling base wine in that there is an immediate, rich, ripe, full mid palate but which then falls away. The aroma is pronounced, aromatic, rich and sweet with malt extract and hints of dried rosemary- like herbal characters. Toasty, nutty complexity adds an already powerful bouquet. The entry to the palate is rich and full-flavoured, building to a round, mouth-filling, soft richness and leading to surprisingly and pleasantly soft and velvety tannins on the back palate. Quite heavy initially, but agreeably soft and smooth on the after palate”. Edwin Soon agrees that it is like a “Cabernet Sauvignon grown on flat lands and lower altitudes with lots of sun – an authentic and stately tea.”
Premium Ceylon Tea
Dilmah offers a range of traditional gourmet black teas selected for their premium quality and taste. The teas offer finely balanced richness, flavor, strength & aroma for the perfect cup. Tea perfect for everyday drinking from the central highlands of Sri Lanka, reputed for its brightness & medium strength.
Gourmet Teas
The Dilmah Gourmet Teas offer a selection of unique teas reflecting the traditional favourites around the world. If you rely on old brand names for your speciality tea, such as English Breakfast or Earl Grey, you may be encouraged to taste Single Origin Dilmah Tea when you read the endorsement of renowned British food & wine writer Fiona Beckett in the Times of London, “Dilmah’s Earl Grey is outstanding. It is the best I’ve ever tasted and the strong Breakfast tea is good, too!”
Dilmah Exceptional Teas & Infusions
An exceptional range of teas, 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 all 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 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.
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
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.
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
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.
Creating the Teas
Who decides what tea goes into each product? Selecting tea for a consistency of flavour, character and quality is a highly skilled job that demands a well-trained palate, unwavering focus and steady judgement. It also means tasting hundreds of teas every day to find the ones that are of the right calibre for the single estate products.
Merrill is extremely particular about what teas go into Dilmah packets. He has never been willing to compromise on standards or let the customer down by substituting cheap tea for quality Ceylon leaf and he insists on maintaining quality. In the days when Ceylon first manufactured black tea, it was processed by the ‘orthodox’ method that respects the leaf, rolls it rather than rips it apart (as happens with CTC cut, tear and curl method) and offers up a black leaf that has layers of flavour, subtlety and finesse. 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 tradition and quality and so chooses orthodox teas. Merrill still insists on being involved in the development of new teas and once the right taste and the right leaf style have been decided, he hands over to his buyers and tasters and leaves them to buy the right teas at the auction, create the recipe and get it into production. Meanwhile, of course, the packaging designers and printers will have been hard at work, the PR team will have planned its strategy for the launch of the new product, and the marketing department will have devised its advertising campaign.
Every week, Dilmah’s tea buyers taste between 6000 and 7000 samples of tea that arrive from brokers offering teas from all of Sri Lanka’s estates. In Dilmah’s tasting room, the buyers and their assistants prepare the teas for tasting by measuring 2 grams of each into traditional white porcelain tasting cups and brewing them for 5 minutes. When the digital timers indicate that the leaf has steeped for exactly the correct time, the liquor is strained off into bowls, allowed to cool slightly before the noisy slurping and spitting begins. If the tea is destined for a 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 of tea is sucked sharply into the mouth so that it hits the taste buds all around the inside of the mouth and gives the taster an immediate impression of flavour, quality and strength. The taster’s first judgements are usually the best. He spits and moves rapidly on to the next bowl. Alongside him, a clerical assistant notes down all his comments about the appearance of the leaf, whether it has been well or badly made, and the character of its aroma and flavour.
For each of the Dilmah products, a particular character, leaf type and leaf size is carefully selected to give certain levels and layers of character, flavour and strength. For rich, strong, gutsy, dark brews, leaf from the low growing areas is chosen; for intense, full-bodied teas, mid-elevation leaf is sought; and for subtler, more elegant, lighter notes, high grown teas from Nuwara Eliya or Dimbula are ideal. Different character is required for different times of the day, for different palates and for different markets. For the European market the teas are lighter, 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 must give a subtle level of strength and flavour. Once the flavour and strength of a tea has been assessed and accepted, there are other
considerations that must be taken into account. Is the leaf size suitable for a particular tea, either loose or packed into teabags? Does too much powder fall through the tea bag paper? Has the tea been checked in the laboratory for pesticide residues? When all the relevant considerations have been made and the tea decided, a sample of the standard is stored for comparison and checking against new batches of the tea at a later stage.
The team of tasters is also responsible for quality checking samples drawn every 30 minutes from the factory production line during the working day to make absolutely sure that the loose tea or the tea in the tea bags is giving the correct flavour and strength to match the standard.
Quality Assurance
Dilmah’s Quality Assurance Department is obviously also key to analysing all aspects of the teas before, during and after the development, manufacture and packing of the different products. A team of top technologists works six days a week at the Colombo factory to support and inform the work of the tasters and new product development team with their expert knowledge of tea constituents such as minerals, caffeine and antioxidants. They also offer their knowledge and understanding of flavourings used in tea and in herbal and fruit infusions, and they check for residues left by pesticides and other plant protection agents. Throughout the entire journey of the leaf from tea plant to factory to tasting room, and into bulking and packing machines, samples are constantly examined and analysed to ensure the quality and high standard of all Dilmah products.
Dilmah’s Quality Assurance System demonstrates the commitment to quality and customer satisfaction. It ensures that the products purchased by the consumer conform to specified requirements via carefully monitored audits, inspections and evaluations of supplies and suppliers in accordance with international standards and planned arrangements. Quality improvement programmes across the company and the food safety management system help to continually improve quality and safety of all the products.
Standards of quality are so high at the Dilmah tasting and packing facility that in 1997, the MJF Group was awarded the ISO 9002 Certification. The high standards maintained under the ISO certification led in 2000 to Dilmah to become the first Sri Lankan company to receive HACCP (Hazard, Analysis Critical Control Point) Certification. HACCP principles and guidelines were developed by the Codex Alimentarius of the World Health Organisation to take a systematic approach to hazard and risk in the food industry. Qualification for certification is rigorous and challenging and Dilmah is rightly extremely proud to have achieved recognition for its high standards. It is another testament to the Fernandos’ care and consideration for the consumer, of their commitment to quality and their unceasing determination to be the best.
The company is certified in compliance with the following
• ISO 9001: 2008 - Quality Management System Certifying body: Det
Norske Veritas (DNV) • ISO 22,000 : 2005 - Food Safety Management System Certifying body: Det Norske Veritas (DNV) • HACCP - Hazard Analysis and Critical Control Point Certifying body:
Det Norske Veritas (DNV) • BRC - Global Standard for Food Safety Certifying body: SGS • ISO / IEC 17025 - Laboratory Accreditation for Chemical Testing
Certifying body: Sri Lanka Accreditation Board • Organic Tea Certification Certifying body: Institute for Market ecology (IMO) • Kosher Certifying body: Orthodox Union (OU) • Halal Certifying body: All Ceylon Jamiyyathul Ulama
Other Audits / Inspections
• Supplier Quality Management System (SQMS) for McDonald’s • Social Accountability programme for McDonald’s • Food Safety audit by McDonald’s - Japan • Ukrainian inspection • Byelorussian inspection
MJF Beverages
• ISO 9001: 2008 - Quality Management System Certifying body: Det
Norske Veritas (DNV) • ISO 22,000 : 2005 - Food Safety Management system Certifying body: Det Norske Veritas (DNV)
Dilmah’s Markets
In 1988, Merrill reached the point in his career when he was ready to pack and export his new, branded Dilmah tea as a quality 100% pure Ceylon tea, a better product than any other available. He already had a number of customers in Australia, so this country that Merrill knew so well was chosen as the launch market. There were all the usual hurdles to be overcome - high shipping costs, export duties and cartels – but Merrill stood up for what he felt was right, remained focused and determined, and provoked a freight war over costs between the major shipping companies. The eventual result was lower shipping prices, and so Merrill could afford to dispatch his first consignment of Dilmah Tea to Australia where stores in Melbourne were the first to stock the products. Within two years, the brand gained respect and a growing share of the market, and within three, the name was recognised nationally. Merrill went to Australia to promote the teas himself and spent time in the supermarkets and stores, talking to everyone, telling them the story of Ceylon tea. Today he is recognised everywhere as Mr Dilmah. People began to realise that Dilmah was different. They knew that when they bought Dilmah tea, not only were they going to brew a really good cuppa, but they were also helping Merrill to put something back into Sri Lanka. People wrote to him to say thank you; children met him or saw him on television and 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 not Dilmah, it’s not my cup of tea.”
After success in Australia, the products were launched in New Zealand where Dilmah is now the Number 1 brand. As confidence grew, Merrill took Dilmah into other countries with which he had long-term connections. He had traded into Russia since his days at A F Jones in the 1950s, had
visited Moscow many times and so had many contacts. He managed to open up the market for Dilmah and from 1988 to 1997 was such a major supplier in the country that his distributor became a very large and important company. But the next few years brought all the massive problems and upheavals of the break up of the USSR; stocks were hijacked; huge sums of money were lost; the ruble crashed; new stock sat unsold in warehouses. But in 1999, once the situation had become more 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 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 despite the fact that Dilmah is more expensive than other teas available, sales are increasing.
Similarly in Hungary, the Czech Republic, Slovakia, Bulgaria, Romania, Ukraine and Estonia, sales are increasing. Chile is also a very good customer, as are Japan, China and Taiwan. North America and Europe, including Britain, are harder nuts to crack but Merrill is determined and is constantly seeking out the best people who can open doors to supermarkets, foodservice companies and hotels. With an increasing interest in tea around the world, a greater awareness among the consuming public of different tea origins and categories, and a real concern for ethical trading policies, Dilmah stands a far stronger chance than most of winning new customers. After all, its range of teas offers everything the discerning customer seeks out - quality, choice and consistency, but above all a concern for those who grow, pick, manufacture, process and pack the tea. It is a tea that quenches the thirst and revives the spirit but also allows each and every one of us who drinks it to help Merrill give back to his workers, his community, his nation.
The Modern Marketplace
Retailing today is ruled by a few huge companies that wield enormous power internationally. They have stores all around the world, they dictate 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”, while others argue that these vast supermarket companies offer their shareholders better value and better returns, but that comes down to the same thing. Whatever the motive, the effect on the small supplier and on the ethics of the modern world is devastating. Giant retailers are locked in a public battle for supremacy using prices as their only weapon. In some markets over the years, Dilmah has been denied the ability to increase its retail prices for a two year period despite clear justification of the increased costs faced by the company. Meanwhile, the big retailers
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.
Dilmah Innovations in Hospitality
Sri Lankan Tea Company, Dilmah, has traditionally taken the lead in bringing innovation to a global tea category that has suffered decline as a result of commoditisation and multinational dominance. Signature events such as the Dilmah Thé Culinaire, Dilmah Tea Sommelier, Dilmah Real High Tea, The Chefs & the Teamaker and Tea in Five Senses are innovations in the tea category that seek to educate and inspire hospitality professionals to offer their guests a completely new tea experience. The events foster greater interest in quality tea, and greater respect for this healthy, natural and versatile beverage.
Dilmah Thé Culinaire - Thé Culinaire marries tea as an essential ingredient in food where professional chefs in the industry compete and showcase their cooking skills and creativity using the finest Ceylon Tea as a base in producing a complete meal par excellence. The Thé Culinaire event is created to integrate quality tea - not just any tea - into the lifestyles of consumers. The programme is designed to encourage greater awareness and understanding of real tea amongst chefs and hospitality professionals generally, by offering real tea as an ingredient in their culinary efforts.
Dilmah Tea Sommelier - The Tea Sommelier Competition is a showcase of skill and creativity in producing exceptional cocktails, mocktails and traditional hot beverages using Ceylon’s finest tea. The competition is designed to harness the skills of beverage professionals in the hospitality industry to celebrate quality, variety and innovation in tea. After water, tea is the most consumed beverage on earth and yet knowledge of tea, its preparation and variety, is severely limited amongst hospitality professionals and tea consumers alike. The Dilmah Tea Sommelier Competition is designed to change that by recognizing skilled brewing of tea, iced tea, and innovation in tea based beverages. In bringing these aspects of tea into focus, the competition is expected to foster greater interest in quality tea, and greater respect for this wonderful beverage. The aim of the Dilmah Tea Sommelier programme is to share with hospitality professionals and through them with people around the world, the experience of the finest quality Ceylon tea.
Dilmah Real High Tea - The tradition of afternoon High Tea is said to have begun in the 18th Century, aided by Anna Maria Stanhope, Duchess of Bedford who invited friends to tea with cakes and pastries at 5 o’clock in Belvoir Castle. The modern interpretation of Afternoon Tea is compromised by an over emphasis on food, forgetting the central element - tea. Dilmah Real High Tea made its debut in 2007 and continues in an endeavour to bring pleasure through the understanding and appreciation of Quality, Freshness, and Variety in tea. Real High Tea also aims to enhance that pleasure with tea gastronomy, to offer tea aficionados a truly enjoyable High Tea, that shares the story in each tea, offers the tea perfectly brewed and elegantly presented, accompanied by sweet and savoury cakes, pastries and sandwiches that are harmonious in taste.
The Chefs & the Teamaker - In celebration of the 21st Anniversary of Dilmah in 2009, the family tea company launched an innovative programme that fulfils the objective of integrating tea, the 21st century beverage, into modern lifestyles. In July 2008, eight celebrated chefs and restaurateurs from prestigious Australian establishments visited Sri Lanka for a tea adventure which became ‘The Chefs and the Tea Maker’ series. During their tour the chefs were inspired to produce four tea infused food and beverage recipes each and collaborated to produce a collection of recipes featured in a book that was launched
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.
