Luxury tea brands target Dubai

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Upali Kahandawa says Dubai imports 42,000 tonnes of Ceylon tea annually

Global tea companies are targeting the Dubai market for expansion, having pinpointed it as an ideal market for their luxury brands.

Having opened its regional headquarters in Dubai last month, Newby Teas of London is now hoping to secure a position in the UAE's five-star hotels and restaurants. The UK-headquartered company also plans to roll out the brand across the GCC in the coming months, and working alongside regional distributor Geralt ME, it aims to achieve an AED184 million (US $50 million) share of the market within five years.

"The region is currently under-serviced in terms of quality tea, and considering the high standards that most people have here, we are surprised at that. The price of our products reflect the quality, so we have set our sights on the Middle East's $2 billion tea market," said NK Sethia, founder, Newby Teas of London.

Boasting a product portfolio of more than 100 flavour combinations, in tea flavours, tisanes and infusions, the packing and preservation facilities are based in the UK and Kolkata, India.

The UAE is also being targeted by leading tea companies from Sri Lanka, which currently ranks as the largest exporter worldwide, with the Middle East, Africa and Asia accounting for more than 50% of its business, followed by Russia and the UK.

"Dubai imports 42,000 tonnes of Ceylon tea annually, 95% of which is used for re-exports. We are targeting the middle and upper level of the market, with particular interest generated from our Dilmah brand," said Upali Kahandawa, tea promotion counsellor, Middle East, North Africa & West Africa, Consulate General of The Democratic Socialist Republic of Sri Lanka.

"Our key competitors in the Middle East market are India, Kenya, China and Indonesia, however we have the biggest tea auction and research centres in the world, and we have been carrying out some very successful marketing campaigns in Iran and Syria," Kahandawa commented.

Generating more than $1million worth of orders at Gulfood last year, companies representing the Sri Lankan industry this year include Meezan & Company; Silkenty Designer Teas & Gift Teas; Tea Trends Exports; and ADAM group, having fought off competition from 30 exporters.

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