Ceylon tea is both the brand of

tea Tea is an aromatic beverage prepared by pouring hot or boiling water over cured or fresh leaves of '' Camellia sinensis'', an evergreen shrub native to East Asia which probably originated in the borderlands of south-western China and nor ...

which is produced in

Sri Lanka Sri Lanka, officially the Democratic Socialist Republic of Sri Lanka, also known historically as Ceylon, is an island country in South Asia. It lies in the Indian Ocean, southwest of the Bay of Bengal, separated from the Indian subcontinent, ...

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 product is appealed to a small group of consumers. The market niche defines the product features aimed at satisfying specific market needs, as well as the price range, production quality and the ...

, 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 (economics), 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 ...

has been decreasing continuously, whereas the share of Kenyan tea 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 made from the leaves and buds of the '' Camellia sinensis'' that have not undergone the withering and oxidation process that creates oolong teas and black teas. Green tea originated in China in the late 1st millenn ...

, flavoured tea, organic tea, instant tea,

iced tea Iced tea (or ice tea) is a form of cold tea. Though it is usually served in a glass with ice, it can refer to any tea that has been chilled or cooled. It may be sweetened with sugar or syrup, or remain unsweetened. Iced tea is also a popular pac ...

, 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 In business, a competitive advantage is an attribute that allows an organization to outperform its competitors. A competitive advantage may include access to natural resources, such as high-grade ores or a low-cost power source, highly skille ...

, it finds difficulties in capitalising on the advantage owing to the inability of engaging in international marketing 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, (; ) nicknamed The Lions, represents Sri Lanka in men's international cricket. It is a full Member of the International Cricket Council (ICC) with Test cricket, Test, One-Day International (ODI) and T ...

and the

Sri Lanka women's national cricket team The Sri Lanka women's national cricket team represents Sri Lanka in international women's cricket. One of ten teams competing in the ICC Women's Championship (the highest level of the sport), the team is organised by Sri Lanka Cricket (SLC), a ...

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