Ceylon tea is both the brand of
tea which is produced in
Sri Lanka
Sri Lanka (, ; si, ශ්රී ලංකා, Śrī Laṅkā, translit-std=ISO (); ta, இலங்கை, Ilaṅkai, translit-std=ISO ()), formerly known as Ceylon and officially the Democratic Socialist Republic of Sri Lanka, is an ...
and a historic term describing tea from that land. Ceylon tea has been described as not only a geographical descriptor but also a pillar of Sri Lankan culture, heritage and identity.
The Sri Lanka Tea Board is the legal proprietor of the Lion Logo of Ceylon tea. In 2019, Sri Lanka was the fourth largest
tea producer and the third largest tea exporter in the world.
The Lion Logo has been registered in 98 countries as of 2016.
Ceylon tea increasingly faces rising production costs, mainly due to increasing wages, fuel prices, and utility costs.
Packaging
In order for the Lion Logo to appear on a tea pack, it must meet four criteria. The logo should only appear on a
consumer pack, the pack should contain 100 percent pure Ceylon tea, it should be packed in Sri Lanka, and the brand should conform to the quality standards set out by the Sri Lanka Tea Board.
Ceylon tea is a recognised tea because of its controlled production and should be sold in its value-refined form in order to yield higher margins. It has been suggested that restricting the usage of the logo only to licensed companies would ensure the quality of the tea and capture the interest of more customers who appreciate a certified quality product.
Market and competition
The market for pure teas such as "pure Ceylon tea" is considered a
niche market
A niche market is the subset of the market on which a specific product is focused. The market niche defines the product features aimed at satisfying specific market needs, as well as the price range, production quality and the demographics that it ...
, occupying only 10 percent of the global market.
Data analysis reveals that Sri Lanka's
market share
Market share is the percentage of the total revenue or sales in a market that a company's business makes up. For example, if there are 50,000 units sold per year in a given industry, a company whose sales were 5,000 of those units would have a ...
has been decreasing continuously, whereas the share of
Kenyan tea
Tea is a major cash crop that is grown in Kenya. Kenyan tea has been the leading major foreign exchange earner for the country.
Most tea produced in Kenya is black tea, with green tea, yellow tea, and white tea produced on order by major tea pr ...
has been increasing at a higher rate, penetrating into Sri Lanka's market share.
More than 50 percent of the tea exports of Sri Lanka are still in the traditional bulk tea while the value-added tea (
green tea
Green tea is a type of tea that is made from '' Camellia sinensis'' leaves and buds that have not undergone the same withering and oxidation process which is used to make oolong teas and black teas. Green tea originated in China, and since the ...
,
flavoured tea
Tea blending is the act of blending different teas together to produce a final product that differs in flavor from the original tea used. This occurs chiefly with black tea, which is blended to make most tea bags, but it can also occur with such t ...
, organic tea,
instant tea
Instant tea is a powder in which water is added, in order to reconstitute it into a cup of tea. The earliest form of instant tea was developed in the United Kingdom in 1885. A patent was granted for a paste made of concentrated tea extract, sug ...
,
iced tea, and
ready-to-drink tea) exports account for 40 to 45 percent of total tea exports. However all types of value-added tea products yield a higher price than the bulk tea exports.
The global consumer preferences for tea are changing, therefore more convenient tea products meet a growing demand in the global market. Even though the Sri Lankan tea industry has a
competitive advantage, it finds difficulties in capitalising on the advantage owing to the inability of engaging in
international marketing
Global marketing is defined as “marketing on a worldwide scale reconciling or taking global operational differences, similarities and opportunities in order to reach global objectives".
Global marketing is also a field of study in general busin ...
activities.
Sponsorships
Sri Lanka Tea Board signed an agreement with Sri Lanka Cricket to sponsor the
Sri Lanka national cricket team
The Sri Lanka men's national cricket team, ( si, ශ්රී ලංකා ජාතික ක්රිකට් කණ්ඩායම, ta, இலங்கை தேசிய கிரிக்கெட் அணி) nicknamed The Lions ...
and the
Sri Lanka women's national cricket team commencing from June 2013,
and Ceylon tea is still sponsoring the national teams.
References
External links
The official website for the brand
{{Economy of Sri Lanka
1867 establishments in Ceylon
Sri Lankan brands
Sri Lankan tea
Tea brands