Dilmah was launched in 1988, but its origins in Sri Lanka go back almost four decades earlier.
In the 1950s, Merrill Fernando, the founder of Dilmah, dedicated his life to tea. He found that tea ownership was fairly concentrated, which led to commercialization of the industry. Mr. Fernando, who believed that his country made tea with so much care and art, decided to combat this process of commercialization.
For this reason, Dilmah has been offering a product that is advertised as a unique taste of unmixed Ceylon tea packaged at the source for over 30 years. But what has the brand done over the years to maintain its relevance?
Product purpose
Dilhan Fernando, Merrill's son and the current CEO of Dilmah, talks to Retail World and believes that tea is more relevant today than ever.
"Tea is an antioxidant-rich drink that protects the human body from stress, dementia, diabetes, cancer, stroke, etc.," he says.
"In addition, we focus on one dimension
Now the social aspect is a cup of tea. We have had a relationship with hospitals for many years. The reason for this is that you are often speechless when you visit someone who is not feeling well. What we saw many, many years ago – over 20 years ago – when visiting a hospital was that a cup of tea has the opportunity to speak where words fail.
"Today there is (also) a terrible epidemic of loneliness in many parts of the world. That is why we see an enormous relevance in tea. Not only in the wellness area or in the offer of non-alcoholic decisions, but also in this social aspect to help people encourage people to have a cup of tea with someone, a simple but critical act to alleviate loneliness. "
A deeper purpose
The Merrill J. Fernando Charitable Foundation is committed to realizing the founder's vision of making business a human service affair. At least 10 percent of the profits from the sale of Dilmah are used by the foundation to help vulnerable women, men, girls and boys.
The main focus of the foundation is to be on long-term sustainability by empowering individuals, families and entire communities to help themselves. In this way, numerous projects and programs have been implemented across Sri Lanka that are considered useful, environmentally friendly and innovative.
"Beyond the experience with the product, we are particularly blessed for the purpose that my father defined and defined in the heart of Dilmah," says Dilhan Fernando. “This purpose makes business a question of human service.
“This philosophy strongly recognizes that we have learned that commercial goals are very compatible with sustainability and philanthropic (values).
“Yes, a company can make a lot more money if it doesn't invest in people, and so on. However, the fact remains that building a sustainable business will not only enable the company to work better with its employees and employees, create a happier environment, but also increasingly meet the needs of a new generation of consumers. This generation demands not only product quality and experience, but also the ethics and sustainability of the business. "
environmental Protection
The environment also plays a key role in Dilmah's business, with Dilmah Conservation at the heart of its commitment. When asked about the most important achievements in the field of sustainability,
Mr. Fernando notes that Dilmah has switched to bio-based materials since 2000 to ensure that its products are as sustainable as possible. Ninety-nine percent of Dilmah's materials are said to be bio-based.
"We still have some technological challenges because we have to have a barrier in your material for tea," he says.
“Unfortunately, we had to use a metallized film as a barrier for a considerable amount of time because (without it) tea absorbs every bit of moisture and can form bacteria. We were very careful to ensure the purity and quality of the product, but fortunately we are very close to the developments in packaging and materials technology to come up with a bio-based barrier material that would be suitable for our product teas. "
Environmental education is also important to Dilmah, as the company helps farmers and tea growers tackle a changing climate in their practice.
"We currently have a situation," says Fernando, "(where) does this climate change not only affect tea, but also drives many small farmers into terrible economic situations.
"We have seen a number of suicides among farmers. We see that people simply do not understand the changes because (their products) are a product of their cultural and agricultural heritage. It is often quite difficult for them to get away from something (that is not climate friendly) to move something (that is). "
Dilmah does this in several ways. The One Earth Center for Climate Change Research and Adaptation is one of them.
Dilmah addresses this development in its 2019 purpose book, saying that it was founded as part of the company's commitment to contribute to global and national strategies for adapting to climate change. The center is said to be the first such private sector facility dedicated to researching climate change and its effects on agriculture and food production.
Dilmah says it works in close collaboration with climate researchers, entrepreneurs and farmers to find innovative, concrete solutions and adapt climate-friendly technologies.
Successes, new products
In November last year, Dilmah received the “Product of the Year 2020” award for its Natural Infusion range.
According to Fernando, this range was built around traditional Sri Lankan natural medicine.
"We developed combinations of cinnamon, moringa, turmeric and pepper – combinations based on specific Sri Lankan recipes," he says.
Dilmah claims his infusions are high in antioxidants and good for the heart, while also highlighting ways to lower the risk of infection, non-communicable diseases, and some forms of cancer.
In relation to other recent developments, Fernando is discovering a new product line: Ceylon Golden Pekoe.
“We believe that many traditions are returning in a very specific and contemporary way,” he says. “This includes loose leaf tea, which is ultimately the most sustainable
Form to enjoy tea. It's not waste, so let's focus on (Ceylon Golden Pekoe). "
Dilmah also focuses on another range, Elixir of Ceylon Tea.
"We use hand-picked tea leaves that are extracted to an essence within 24 hours," says Fernando. "It is essentially an iced tea product to which you can simply add water. It is an authentic concentrate.
“The iced tea segment suffered from being marketed with strong sugar and flavors. So we're trying to give this segment authenticity and integrity again. "
In recent months Dilmah has launched Dilmah Inspirations, a selection of the “finest” gourmet teas in black, green and oolong. The teas and infusions are offered in "pure, natural form" or in "inspired" combinations with "authentic, artisanal and ethical" teas, aromas, herbs, roots and spices.
The Dilmah inspiration range includes:
- Tropical breakfast tea with turmeric, coconut and vanilla.
- Ceylon Spice Chai with Ceylon cinnamon, ginger, lemongrass & clove.
- Berry Sensation Tea with Indian Sarsaparilla.
- Italian almond with Sri Lankan nutmeg.
- Lively lime & orange with Ceylon cinnamon.
- French Vanilla Rose with Beal Flowers.
- Spring oolong with ginger.
- Green tea with jasmine flowers.
- Chamomile flowers.
- Peppermint leaves.
A selected area of inspiration is available from Metcash and Coles.
Wellness, origin, quality, ethics
Mr. Fernando has high hopes for the tea category and is happy to share some advice with Retail World.
"Wellness is in, origin is in and quality and ethics are in," he says.
“Over the years, the tea category has been decimated by commercialization and the discount culture.
“When we look at the black core tea and bring innovation, authenticity and origin – all the things that customers are telling us now – I think we have a fantastic opportunity. The core, the heart of the tea category, has been neglected. There was a lot going on in the periphery with flavored teas, tea enriched with water, etc.
“But ultimately, kernel tea has a bigger story than anyone else. In my opinion, black core tea with origin, authenticity, purity of origin and well-being is an opportunity to grapple with this new generation. "
