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JKH ventures into branded tea

John Keells Holdings(JKH) which has been in tea brokering for over hundred years has ventured into the tea trade by introducing Ran Kahata it own brand name for value added tea.

JKH will introduce its first value added tea brand to the local market through Gordon Frazer and Company Ltd. its fully own subsidiary which has over 100 years of expertise in tea both locally and internationally.

"JKH while establishing itself as an international player with its own brand names has decided on value addition to tea as one of its strategic growth areas for the future," JKH Deputy Chairman Jagath Fernando told the media on Tuesday.In order to establish itself as a significant player in international markets, John Keells intends to invest in building its brand presence in key regional markets, especially where Ceylon Tea is well recognised and accepted.

The Group intends to invest considerably in advertising and promotion to support these efforts which are intended to enhance the image of Ceylon tea and generate higher returns for the company and the country," Mr. Fernando said.

Gordon Frazer and Company Ltd. Director, Stephan Anthonisz said in terms of export only 37 percent of Ceylon tea is exported in value added form or branded and the majority of them are foreign owned brands.

"The producer therefore is at the mercy of commodity prices as bulk teas sales are governed by supply and demand and the price structure of the world market. The challenge ahead of us is to add value to Ceylon tea both at home and abroad and with the launch of Ran Kahata we are taking the first step on this long march to be a major player in the world tea market.

There will be many more value added products introduced by us locally and internationally in the years to come," Mr. Anthonisz said.The new product is marketed by Delmege Distributors (Pvt) Ltd.

 

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