Sri Lanka’s Dilmah looks to GCC for tea expansion

Mubasher: Leading Sri Lankan tea brand Dilmah has unveiled plans to expand its footprint in the GCC and Middle East regions.

The expansion will come in the form of increasing sales across the regions through agreements with five-star hotels, regional airlines, as well as the launch of the exclusive t-Lounges, Dilmah revealed in a statement released on the sidelines of the Gulfood trade exhibition in Dubai.

Dilmah, which currently sees sales of around 7% to 8% at present from the Middle East and GCC, is looking to raise that level to 15% to 20% by the end of 2018.

Over the past three years, Dilmah and its subsidiaries have reported combined sales of around $66 million per annum.

"The Middle East region has a long history with tea and is home to a very large tea drinking population that also includes a large expatriate contingent of tea enthusiasts,” Dilmah’s founder Dilhan C Fernando stated.

The Peliyagoda-based tea brand is currently present in several of the Middle East’s leading airlines. Its most notable agreement is a 25-year deal with Emirates Airline.

"We are delighted to have met several distributors who could be our potential partners in the other Middle Eastern market.  Gulfood is an ideal platform to expand to other markets," Fernando added.

Having launched its high-end t-Lounge in Dubai, Dilmah unveiled plans to roll out similar concepts in other destinations across the GCC. However, it did not name its markets of interest in the region.

The Sri Lankan tea-maker currently produces around 14 to 15 kilograms of tea per year from plantations covering 50,000 acres in land.

Another concept Dilmah is planning to bring to the region is its Dilmah School of Tea, Fernando revealed, explaining that the concept inspires a passion for tea among hospitality professionals, tea aficionados, and consumers.

Mubasher Contribution Time: 04-Mar-2018 08:29 (GMT)
Mubasher Last Update Time: 04-Mar-2018 08:29 (GMT)