TEA

John Keells Tea Market Report :

Ex-estate teas in good demand

Most of the tea growing regions continue to experience heavy rains, which is not favourable to growing conditions. September is normally a slightly drier month but several areas have reported heavy showers with overcast conditions particularly during the last fortnight of the month. Except for a few days of dry weather at the commencement of the month, heavy downpours have been recorded thereafter.

On the production front crop prospects look a little bleak now, unless there is brighter weather to follow. It will take some time before a substantial jump in crop levels is recorded.

The latest statistics indicate that the total tea exports to end of August 2010 amounts to 200.8 Mkgs at an average of Rs 492 per kg as against 189.4 Mkgs at Rs 448 per kg for the corresponding period of last year. The export earnings from Tea in 2010 for the above period amounts to Rs 98.8 billion as against 84.9 billion in 2009.

There was good but irregular demand for the 8.2 Mkgs of Ex-estate teas on offer, opening at generally lower levels to last week and easing further as the sale progressed particularly for BOPF. Better Western BOPs on the other hand appreciated Rs 10 with the Below Best sorts also moving up by Rs 10 to Rs 15. The plainer varieties were Rs 5 to Rs 10 dearer. Nuwara Eliya BOPs were firm to dearer, whilst the BOPFs were irregularly firm. There was less demand for Uva BOP/BOPF, with price declines of Rs 10 to Rs 15 and more. There was less demand for low grown CTC PF1 on offer, whilst the high and Medium PF1 were firm to easier. Brokers continued to meet with good demand.

The 3.1 Mkg of Low Growns that came under the hammer this week, met with slightly less demand, particularly for the small leaf varieties.

Most Iranian buyers curtailed their purchases due to the ambiguity on Iranian authorities banning the imports of some agricultural products, although there is no reference to tea in the reports so far published in the media, the uncertainty kept most buyers on a low key. The main Iraq buyer too was rather quiet after many months of forceful buying. However the Russian buyers were rather active, while the main Saudi Arabian buyer too picked up a larger volume. The BOP1 grade which moved up sharply in last couple of weeks, declined several rupees and settled between Rs 500 to Rs 550. However the OP1 grade continued to obtain very attractive prices, while some wiry Ops too gained sharply. In the small leaf category FBOP/FF1s declined.

Western Teas

Select Best BOPs advanced Rs 10, other good invoices appreciated by a similar margin and more, Below Best sorts gained Rs 10 to Rs 15 on average, plainer varieties were irregularly dearer. A few Select Best BOPF were firm others declined Rs 10 to Rs 15 on average, Below Best sorts shed Rs 10 to Rs 15 and more, Plainer varieties declined Rs 15 to Rs 20 on average. Medium BOP/BOPF declined Rs 15 to Rs 20 on average.

Nuwara Eliya Teas

A few bright BOPs were firm, others declined Rs 5 to Rs 10 BOPF were irregularly firm.

Uva Teas

BOPs declined Rs 20 to Rs 30 and more, whilst the BOPF too were Rs 15 to Rs 20 easier. A few Select Best Udapussallawa BOPs gained Rs 10, others eased by a similar margin and more. BOPF declined Rs 10 on average.

CTC Teas

Low Grown CTC PF1s shed Rs 15 to Rs 20 and more. BP1s gained Rs 5 to Rs 10. High & Medium PF1s were firm to easier. BP1s gained Rs 15 to Rs 20 and more.

Low Growns

Lower demand. Select Best OP1s appreciated Rs 10 to Rs 15, Best types were fully firm, Below Best varieties were irregularly dearer by Rs 5 to Rs 10, poor sorts were steady.

Select Best along with the Best BOP1s declined sharply by Rs 10 to Rs 20, however Below Best and poor sorts maintained last levels. Select Best OPs eased Rs 5 to Rs 10, the balance too were lower by Rs 10 on average, wiry types appreciated Rs 5 to Rs 10 and more at times. Select Best OPAs shed Rs 10 to Rs 20, the balance too were lower by Rs 5 to Rs 10. Select Best Pekoes appreciated Rs 10 to Rs 20 and more following quality, however bold Pekoe varieties declined Rs 5 to Rs 10, flaky types too tended lower by Rs 10 to Rs 15.

Shotty Pekoe1s were fully firm, Best types too were firm on last levels, Below Best and poor sorts declined Rs 5 to Rs 10. Select Best and Best BOP/BOP. SPs declined Rs 10, Below Best and poor sorts too followed a similar trend. Select Best and Best FBOPs and FF1s declined Rs 15 to Rs 20, Below Best and poor sorts too were lower by a similar margin. Select Best and Best tippy varieties sold at fairly attractive levels but however prices were lower to last, Below Best and poor sorts too shed Rs 20 to Rs 30.

Off Grades

Select Best liquoring Fngs1s sold at firm levels while the Best and the Below Best were irregularly lower by Rs 10 to Rs 15, poorer sorts appreciated Rs 5. All BPs were lower by Rs 20. Select Best BMs declined Rs 20 to Rs 25 whilst the Best and the Below Best types were lower by Rs 15 to Rs 20, poorer sorts declined Rs 20.

All Low Grown Fngs were lower by Rs 10. Select Best BOP1As were lower to last by Rs 10 on average. Best and Below Best too were easier to last by Rs 10 to Rs 15 and more at times, whilst the Poorer sorts shed Rs 15 and more.

Dust

Lower demand. Select Best Dust1s were firm, others in the best and Below Best category declined Rs 15 to Rs 20 and more at times. Poorer sorts declined further. Clean secondaries shed Rs 20 to Rs 25 while the balance were firm. Best Low Grown Dust / Dust1s were firm while the balance eased Rs 15 to Rs 20.

Super Coffee launches Latte range

Targeting the young, trendy Sri Lankan consumers, Super Coffeemix Manufacturing Limited one of the Southeast Asian market leaders for 3-in-1 instant coffees, has introduced Super Coffee brand Latte into the Sri Lankan market.

The Super Coffee brand Latte, newly introduced to Sri Lanka, has an aroma and taste that is truly satisfying ,comes in an attractive sachet and design with contemporary colours to suit the image of modern and young adults.

The Super Coffee brand after many years of experience in the coffee business and providing millions of customers with their distinctive and approachable coffee, are now unleashing its Coffee brands to many markets , inspired by their belief that everyone deserves a great cup of coffee. They are determined to turn the traditional coffee model on its head with innovative new approaches in every phase of their business - in retail and packaged goods - and to take their premium coffee to the places their customers go in their everyday lives.

The Super Coffee brand Latte is currently available in Sri Lanka at most leading super markets across the island, including Keells Super, Arpico and Laugfs outlets.

Watawala exports Tetley Tea

First carton to Minister:

Watawala Plantations, one of Sri Lanka’s leading plantation companies commenced the packaging and exporting of pure Ceylon tea under the brand name Tetley, a world-renowned tea brand.

The first master carton of the first shipment of Tetley was presented to the Plantation Industries Minister, Mahinda Samarasinghe by Watawala Plantations Plc, Managing Director Vish Govindasamy.

Minister Samarasinghe said that this was significant for Sri Lanka as well as the Plantation Industries Ministry and will no doubt benefit the country’s economy. The producer of popular brands, Zesta and Watawala Kahata, Watawala Plantations is a joint collaboration with TATA Global Beverages, India, of which the Tetley Group has been a member since March 2000.

The company was also the first to introduce the concept of ‘plantation fresh’, where tea is directly sourced from the plantations, which was a major factor that attracted Tetley to commence its packaging operations in Sri Lanka.

“Recently there was a lot of brainstorming about how to launch pure Ceylon tea with the Tetley brand overseas. In that, they were able to look at our ‘plantation fresh’ concept and they have taken that concept into the Tetley brand with Pure Ceylon Tea and are now launching it in one of their largest overseas market”, Govindasamy said.

He said that this was a significant achievement for Sri Lanka as the Tetley brand was previously packed in the UK and India.

This venture will bring great esteem and a surge in export revenue to the country. The packaging will be done at the export packing facility of Watawala Plantations, he said. Tetley ‘plantation fresh’ Ceylon tea will be available in packets of 25 and 100 teabags and will be packed into shelf-ready tray cartons.

The first consignment of tea was shipped to an overseas market.

Projected volumes for Tetley Plantation Fresh Ceylon Tea are expected to cross 100 million teabags per annum.

Imperial Tea wins NCE Awards

Imperial Tea Exports, the manufacturer and exporter of high quality Ceylon tea was awarded the ‘Most Outstanding Exporter of the Year’ at the 18th National Chamber of Exporters of Sri Lanka (NCE) Awards Ceremony. Imperial Tea Exports also won with the award for the ‘Best Sri Lankan Brand Exporter’ for 2009.

Imperial Tea Exports Managing Director, Jayantha Karunaratne said “This judgement of our work, demonstrates the strength and solidity of Imperial Tea Exports and helps outsiders, especially our buyers, gain more confidence in our brand.”

He said that the company has recorded exceptional growth and high export value in the past year, despite the difficulties faced in the international markets due to the global recession.

Thus, the awards are a reflection of the company’s commitment to build a strong brand identity, backed by a diverse portfolio of tea products coupled with excellent customer service and quality as key drivers of business value additions. “One of the reasons for our applying for the NCE awards was to verify our performance vis-a-vis industry standards,” said Imperial Tea Exports Chief Marketing Officer, Deepal Chandrasekera.

“The company’s value growth in exports, research and development, brand promotions, productivity, net foreign exchange earned, job creation and new market development were assessed during the evaluation,” he said.

Established in 1994, Imperial Tea Exports, has made rapid progress in the international market. Today, it stands among the top ten largest exporters of tea in terms of volume.

The company’s flagship brand IMPRA has made substantial headway in the international arena, while other brands include Royal Elixir, Heavenly, Regal and Ni-Sal.

With a recorded annual export turnover of over US$ 61 million the company has a loyal clientele from a wide range of export markets across the globe such as Russia, Iran, Dubai, USA, Canada, Europe, China, Australia, Japan and the Middle East.

Imperial Tea Exports is committed to ensuring high quality and excellence in all its products. Stringent quality processes are adopted and the company’s tea packing facility is accredited by the ISO 22000, HACCP (Hazard Analysis and critical control point), BRC (British Retail Consortium), USDA Organic Certified (United States Department of Agriculture), NASAA (National Association of Sustainable Agriculture Australia), JAS, GMP (Good Manufacturing Practices) certifications. The company engages staff from internationally reputed monitoring companies.