P E O P L E
Wolfgang Tosch Janet Ruto
P RO C E S S & P RO D U C T
Cold Brew's a Hot Ticket!Coffee Connections
S U S T A I N A B I L I T Y
Together We're StrongerDoing the Right Thing
I N N O V A T I O N
Future Shaping FinlaysBoston Tea Party
I S S U E 1 6 5
Focus on China
A M A G A Z I N E B Y F I N L A Y S
Cover story: Made in China
Photography by Giulio Mazzarini
www.gmazzarini.com
Environmental Impact Statement
This magazine is printed by an ISO14001 printer using
vegetable based inks on FSC accredited paper which has
been carbon captured through the Woodland Trust scheme
which has the following benefits:
2.64 tonne of carbon captured
8159 car miles
66.27m2 of new native woodland
All contents © James Finlay Limited 2019
Finlays 1750 magazine is published yearly by
James Finlay Limited, Swire House, 59 Buckingham Gate,
London SW1E 6AJ United Kingdom.
www.finlays.net
Production Team:
Guy Chambers, Duncan Gilmour, Kamini Dickie
Printed by 21 Colour
www.21colour.co.uk
Designed by GEM Creative Design
www.gemcreativedesign.com
08Cover story: Made in China
CONTENTS
76Innovation: Boston Tea PartyHow tea has become increasingly
important to the craft beer industry.
88Finlays' People: Janet RutoProfiling James Finlay Kenya's Gender
Empowerment Manager.
90Sustainability: Sustainable FutureJo Millar outlines sustainability targets
and objectives for the coming year.
96Finlays' NewsroundThe latest news and happenings from
around Finlays.
104Finlays' Roots: Tea-volutionDuncan Gilmour explains how Finlays
became a key player in the tea industry.
116Finlays' SpotlightMeet Liu Renjun (LRJ), QA Manager,
James Finlay Guizhou.
04WelcomeIntroducing Finlays' new-look 1750
magazine.
08Cover Story: Made in ChinaAll the tea in China; past, present
and future.
24Cover story: Made in China Camellia sinensis - from ChinaRoss MacDonald traces the historic
roots of China tea.
30Finlays' Global Footprint and Business ReviewWhere we are, and what we do.
36Finlays' Fascinating FactsFascinating facts and figures from
around the business.
38Sustainability: Together We're StrongerWorking with Starbucks to help
communities in Kenya and Sri Lanka.
46Innovation: Future Shaping FinlaysInnovating for a sustainable future.
54Finlays' People: Wolfgang ToschAn introduction to Finlays' Group
Innovation Director.
58Sustainability: Doing the Right ThingOur Hopton Estate in Sri Lanka.
62Finlays' People: Sudath AriyathilakeThe Senior Manager of Hopton Tea
Estate and his mission.
64Process & Product: Coffee ConnectionsSourcing supplies of sustainable coffee
through relationship building.
72Process & Product: Cold Brew's a Hot Ticket!Exploring recent innovations in the
Ready to Drink/Iced Coffee market.
64Process & Product: Coffee Connections
38Sustainability: Together We're Stronger
88Finlays' People: Janet Ruto
76Innovation: Boston Tea Party
104Finlays' Roots: Tea-volution
5 F I N L AY S 1 7 5 0
WELCOME
Wthe year that Finlays started business!). So - what has changed
in this Finlays magazine and why? In the last few years, the
use of digital communication (email, intranets, WhatsApp
messaging) has grown dramatically. An increasing amount of
company and industry news is being shared immediately. As
a result, we felt that it was time to review the purpose and
value of our printed bi-annual Finlays magazine. After seeking
feedback from employees, customers, other readers and
stakeholders, we have decided to make three major changes.
First, we have defined the main purpose of 1750 as to explore
‘what is best?’ in the global natural beverage industry. These
days, thanks to the internet and social media, we are all faced
with a surplus of information but a shortage of time. We are
drowning in information, but often left thirsty for knowledge.
ELCOME to our new Finlays
magazine which has been re-
titled ‘1750’. The magazine
has been given a thorough
overhaul combining both
innovation and tradition
(hence our new title ‘1750’ –
To borrow heavily from Robert Pirsig, author of Zen and The
Art of Motorcycle Maintenance, ‘“what is new?” is an interesting
and broadening eternal question, but one which, if pursued
exclusively, results only in an endless parade of trivia and
fashion, the silt of tomorrow. (We) would like, instead, to be
concerned with the question “what is best?” a question which
cuts deeply rather than broadly, a question where answers tend
to move the silt downstream… Some channel deepening seems
called for.” In 1750, we seek to use our global coverage and
industry knowledge to provide a unique perspective to readers
– employees, customers and interested stakeholders alike.
Second, we have changed from semi-annual to annual. After all,
digital communication is a far faster means of disseminating
news than a printed magazine. So the content of 1750 will now
focus on broader issues (‘what is best?’), rather than detailed
news (much of which is now shared digitally). We will publish
one slightly larger and longer magazine once a year.
Third, we have committed to increasing the quality of the
magazine – both in terms of content and imagery. We seek to
reflect perspectives on the beverage industry, not just from our
7 F I N L AY S 1 7 5 0
OVERVIEW
Nby serving as the industry’s trusted leader in the supply of
tea (in all its wonderful varieties, formats and applications),
coffee and botanical extracts to the world’s beverage brand
owners.” We have increased investment in the core areas of
our beverage businesses. In the US, we have invested in a new
liquid tea extract facility in Rhode Island, which completed
commissioning in early 2019, and have expanded our cold
brew coffee extract capacity in Texas with Aspen Beverage
Group, which was acquired in 2017. In China, we are opening
a wholly-owned tea facility in Guizhou (details of which
are covered in this issue). We have also divested non-core
areas, selling our non-beverage businesses in Sri Lanka and
announcing the closure of Finlay Flowers in Kericho, Kenya. At
the same time, internally, we have driven an initiative under
the banner of ‘1Finlays’ that helps us to work together globally
in a more structured way. Simply put, a lot has changed in a
short space of time and I am happy to report that our progress
OW let me turn briefly to
Finlays. As reported in
previous issues of Finlays
magazine, we started a
strategic transformation of
our company in 2017. We laid
out a vision “to grow Finlays
profitably and sustainably
on this transformation has been solid. Most importantly, we
continue to receive very positive feedback from customers
about their desire for what we offer – and this is already
translating into new business in several markets. Turning
to our overall performance, 2018 was a challenging year –
especially in China (with a softening in demand and rising
costs) and Sri Lanka Tea Estates (where prices remained weak).
2019 has started well and we remain confident that we are well
positioned for a number of our focus areas to grow profitably.
Finally, let me close by thanking Duncan Gilmour who has
been a very knowledgeable and diligent Editor of Finlays
magazine over the past few years. ‘1750’ has now been
handed over to the very capable Kamini Dickie, supported
by internal and external contributors. We hope you enjoy
‘1750’ and look forward to receiving your feedback.
Guy Chambers
Group Managing Director
Guizhou province). Duncan Gilmour’s article explores Finlays’
wider role in the development of the global tea industry. We
also feature Jim Koch, the legendary entrepreneur and founder
of Boston Beer, who shares with us his insights on innovation
in the brewing industry which is now encompassing the use
of tea in their growing portfolio of beverages. As previously,
we also provide an overview of some of the interesting and
exciting things that are happening around the world of Finlays
– including news items and profiles of staff members driving
change in the industry. The team is proud to present this new
format of the magazine – do let us know what you think.
own experience but also from others, including from industry
thought leaders such as Jim Koch in this issue. Furthermore,
we seek to bring our articles to life with imagery from the work
of leading photographers – such as our collaboration with
Giulio Mazzarini which starts in this issue.
In this issue, we explore the broad theme of tradition and
innovation in the natural beverage industry as well as
specifically in Finlays. In our main feature, we look at the
role of China in the tea industry – by exploring the past (and
Finlays/Swire’s historical links to tea in China), the present
and the future (looking at our new tea sourcing operation in
9 F I N L AY S 1 7 5 0
Made in ChinaWE INVESTIGATE HOW FINLAYS’ CONNECTION WITH HUMANITY THROUGH
NATURAL BEVERAGES GOES DEEPER THAN YOU MIGHT FIRST IMAGINE.
Photography: Giulio Mazzarini
1 1 F I N L AY S 1 7 5 0
‘China is the world's largest tea producer, accounting for more than 40 per cent of annual production on
an on-going basis.’
Quietly, and increasingly at speed, a revolution is taking
place in the supply of Chinese tea. China has now started
to export quantities of qualified tea that previously had not
been thought possible. This transformation is being helped by
Finlays, a tea merchant steeped in tradition, yet one proving
itself capable of meeting this new challenge. The Company’s
ability to connect growers to international buyers is allowing
a new generation of Chinese tea growers, employing the best
of agricultural practices, to obtain value from harvests that
otherwise would have gone to waste.
China is the world’s largest tea producer, accounting for
more than 40 per cent of annual production on an on-going
basis. It is also the world’s most varied, with hundreds and
possibly thousands of varieties of tea being grown. Yet only a
small number of these are familiar to tea consumers beyond
its borders. To date a limiting factor has been agricultural
practice. Unfortunately, the conditions under which tea is
grown in the more traditional tea producing areas of China
means that only a small percentage is suitable for export.
China is also under pressure from domestic consumers to
change the way in which tea is grown and manufactured.
A solution to this problem is beginning to be seen in the
high hillsides of the southern Chinese province of Guizhou.
Here the regional government, concerned with levels of rural
unemployment, several years ago began clearing underutilised
land for the express purpose of growing tea. Beyond providing
employment, this initiative also offered the possibility of
introducing good agricultural practices, ones which were not
>>
1 3 F I N L AY S 1 7 5 0
‘After five years the tea produced in that one province is more than in the whole of Kenya which is the third largest producer in the world.’
Finlays has been tracking developments in Guizhou for several
years noting that farmers were only able to sell the first flush
of each year’s spring tea to domestic buyers. Each season as
many as three further flushes were left unharvested due to an
inability to identify buyers.
To meet this challenge, Finlays has built a secondary
processing plant in Sinan and recruited a team of young
Chinese scientists who have been tasked with guaranteeing tea
quality by working with local tea growers to ensure that good
agricultural practices are the norm. Crucially, in connecting
growers with markets, Finlays has insisted on traceability and
transparency to ensure that international buyers can be certain
that what they’re purchasing is qualified tea. This promise is
dependant on the overuse of plant protection products. Five
years after planting, the first teas are beginning to come to
market in some quantity. It is important to remember that in
China everything undertaken is on a scale unfathomable in
other economies.
As Guy Chambers, Finlays’ Managing Director, notes, “After
five years the tea produced in that one province is more than
in the whole of Kenya which is the third largest producer in
the world.”
>>>>
Judy Chao and husband, Hong Ding Tea.
1 5 F I N L AY S 1 7 5 0
LRJ's family home.
1 7 F I N L AY S 1 7 5 0
‘A sourcing and supply model has been introduced which differs from that which Finlays uses in its
other key producing areas.’
being backed by independent external audits, the objective of
which is to have all growers supplying tea to Finlays routinely
audited, and their field practices approved, by Rainforest
Alliance.
Creating sustainable relationships
As a vehicle for this project James Finlay Guizhou (JFG) was
set up in the spring of 2018 having recruited Patrick Watene,
a New Zealander with 15 years’ experience working with agri-
businesses in China, as its Managing Director. Watene is well
aware of the what is needed to ensure success. “Obviously we
prefer to take tea that has not been subject to use of pesticide
or herbicide,” he says. “But the key thing for us is making sure
that it’s qualified and meets the customer’s specification and
the requirements for market access.”
Watene has had a busy year. His accomplishments include
building from scratch a management team with the necessary
capabilities. “We have a very young team in Guizhou which
is a reflection of the environment that we are in and I think
it’s very good for the future of the business.” says Watene
“We have a lot of very capable managers who will, I think,
be really ‘long-termists’ provided we continue to give them
opportunities and challenges.”
Part of the project involves JFG building a secondary
processing plant, which is projected to begin production
in April 2019. Perhaps most importantly, a sourcing and
supply model has been introduced which differs from that
>>
1 9 F I N L AY S 1 7 5 0
‘When you are building up this type of business you want partners to be in there with you, so you have to understand their aspirations.’
and pesticides and the application of environmentally
friendly alternatives such as pest catchers. The objective is
to keep pesticide use to an absolute minimum, thus reducing
environmental impact whilst still allowing tea farming to occur
productively. This is aided by the Guizhou terrain. The tea
fields are at altitudes, high enough to ensure that the climatic
conditions help reduce or eliminate the need for pesticides.
Watene is optimistic that strong commercial partnerships can
be created and sustained with tea growers. “When you are
building up this type of business you want partners to be in
there with you, so you have to provide the right incentives and
understand their aspirations whilst we are trying to achieve
ours.”
which Finlays uses in its other key producing areas where the
Company both owns land and buys in tea from outgrowers.
Guizhou is the first instance where a Finlays' tea processing
factory relies solely on outgrowers, rather than owning and
operating land in conjunction with a tea factory. Instead it is
partnering with a number of small to medium sized farmers.
It is hoped to nurture this new crop of tea growers, acquainting
them with Finlays’ best agricultural practices from around the
world. These include the introduction of machine harvesting,
help with deciding on the optimal use of fertilizers, herbicides
>>
2 1 F I N L AY S 1 7 5 0
The here and now
For Finlays’ customers interested in making use of qualified tea
sourced from China, they have the benefit of the Company’s
world-wide reputation further reinforced by the assurance of
an external audit undertaken by Rainforest Alliance.
JFG recently staged its first annual suppliers conference
in Sinan, which attracted 45 representatives from 27 tea
suppliers. Watene reports that out of this group, 21 have fully
committed to Rainforest Alliance training. The intention is
to have them audited by the end of April. As a result, the
vast majority of made tea from Sinan, mainly green and
black fannings, will come from Rainforest Alliance accredited
producers. Production is expected to increase significantly
over the next five years. To make this possible, the number
of growers who partner with JFG are expected to increase to
around 60, all committed to supplying properly accredited
tea. All Guizhou suppliers are expected to be Rainforest
Alliance certified within their first year of supply.
The tea growers’ farms vary in size, from around 60 hectares
up to 200 hectares. Watene observes, “These are enterprises
that are of a reasonable scale but in the broader tea industry
in Guizhou and other provinces, they are small holders.”
A robust quality control function ensures that tea destined for
both foreign and domestic markets is fully tested and assured
as qualified tea. “Nothing goes out the door unless it’s been
tested by an internationally certified laboratory. It must meet
customer specifications and market access requirements.
Those two things are non-negotiables.” says Watene.
JFG’s quality assurance team also monitor the tea as it grows
on their partners' farms. As an example, by using hand held
devices, real time reports can be produced which detail the
extent of pesticide use. Data collection is not just about
compliance but is intended to offer benefits for both tea
grower and tea merchant. As Watene observes, “The more we
know, the more we can help. And that all comes down to data.”
Vast future potential
Guizhou has the potential to transform the way tea is grown,
processed and brought to market. Given the size of the
Chinese tea market this could have significant consequences
for the way in which tea is cultivated in the country more
generally. With this in mind, JFG has made provision for a
possible scaling up of production. It’s modular and additional
processing lines can be easily added as required. Watene notes
that Guizhou has hundreds of farmers with whom Finlays
could arrange partnerships, unlocking additional hectares
of virgin land with tea-growing potential. He elaborates, “I
always talk about 20,000 tons plus. My own opinion is that
it could be significantly more as this type of sourcing and
supply model gives huge opportunities for scalability.”
The story of Chinese tea isn’t just about volumes it is
very much about varieties of tea, many of which are, as
yet, unavailable outside the country. With a certain wry
admiration, Finlays’ Managing Director Guy Chambers notes
that China is centuries ahead of the rest of the world in terms
of developing tea varieties. Imagine, if you will, 1,600 varieties
>>
>>
Tea Researcher.
2 3 F I N L AY S 1 7 5 0
‘Traceability, transparency and scalability of Chinese tea are all in the offing thanks to Finlays - tea merchant to the world.’
Imagine, if you will, Finlays not so much as a tea merchant but
as a librarian. With what’s underway in the tea-growing hills of
Guizhou there’s potential to bring to market new books, new
stories: not only about well-known black and green teas but
potentially many other varieties. Finlays has the ability to make
this happen by bringing together tea growers with otherwise
inaccessible buyers. “For farmers in Guizhou, Finlays act as a
connector,” affirms Chambers “Enabling them to access both
domestic and international markets”.
There you have it – traceability, transparency and scalability of
Chinese tea are all in the offing thanks to Finlays – tea merchant
to the world and now, a librarian of Chinese tea varieties. For
tea aficionados worldwide, potentially a very exciting future.
of oolong tea alone. He uses the analogy of a vast library, one
where because of agricultural practices the only book checked
out by the West related to black tea “The way forward is to
go back to the library and take out another book,” he says.
“You can spend a lifetime just finding out about the existing
varieties in China.” Like Watene, Chambers believes that the
potential for scaling up production in Guizhou is well beyond
the initial conservative business plan projections. He estimates
that current production in Guizhou is between 400,000 and
500,000 tons annually.
>>
Su Shuibiao, Owner, Su Fu Tea.
2 5 F I N L AY S 1 7 5 0
Camellia sinensis - from ChinaROSS MACDONALD, IN A SERIES FOCUSING ON COUNTRIES AND THEIR LINKS TO THE
TEA TRADE, LOOKS AT CHINA WHERE THE STORY BEGAN, AND WHICH TODAY REMAINS
PRE-EMINENT NEARLY 5,000 YEARS LATER.
Words: Ross Macdonald
Knowingly or not, the Swedish taxonomist Carl Linneaus
forever joined tea and China together. To honour his
contribution to botany, Linneaus chose to name the genus
of the perennial shrub after Georg Kamel, a late seventeenth
century missionary; Camellia being a latinised form of Kamel.
To reflect where the plant was first discovered, the species
now known as tea was named sinensis meaning, in Latin, “from
China”. In doing so, wherever it travelled in the world, in
whatever form, tea would always be linked back to its origin.
After more than two thousand years, tea’s largest producer,
consumer and innovator, remains China.
To put China’s importance into some context: of the almost
six billion kilos of tea produced annually worldwide, over
40% is Chinese. The same country is responsible for over
80% of all green tea manufactured globally. It is the only
country in the world with more than 2 million hectares of
land under tea (that’s to imagine every inch of a country the
size of Wales covered in a blanket of waist high green bushes).
China today continues to exert as much influence over tea
production and consumption as it did at the industry’s birth.
The global nomenclature for tea continues to reflect China’s
indelible stamp on the industry. Around the world there are
only two commonly used words to describe the beverage: one
shares its derivative with the English ‘tea’ – the French thé
being one example. The alternative has its basis in the word
cha, such as çay in Turkish. Both have their roots in China.
The pronunciation of the Chinese character for tea, 茶, varies
depending on the Chinese dialect; however, it is always written
>>
2 7 F I N L AY S 1 7 5 0
‘It is a widely held belief that tea was first consumed by the Emperor Shen Nung in the third
millenium BC when a leaf dropped into a pot of boiling water.’
identically. In today’s Mandarin, it sounds like ‘chá’, but in
the Min Nan dialect of Chinese, spoken in Fujian Province,
the word is pronounced 'dei' (like 'day'). Tea products that
were brought to the world by sea, from the coastal ports in
Fujian were referred to as 'dei' which became tea, thé etc.
The sophisticated network of Silk Roads that bore tea to the
interior of Persia, Russia and Central Asia sold the product as
‘cha’. Tea innovations that created products vastly different
from a boiled leaf continue to reflect this etymology – mat-
cha, kombu-cha and bōbà nǎichá (bubble-tea) being good
examples.
It is a widely held belief that tea was first consumed by the
Emperor Shen Nung in the third millennium BC when a leaf
dropped into a pot of boiling water. His reaction to the taste
and stimulus he received from its consumption, combined
with his reputation as a healer, generated a wider interest
and from this point cultivation and consumption would soon
increase on a commercial scale. As domestic demand for tea
grew, so too did its production. Cultivation spread across
the provinces of southern China, with each creating its own
distinctive types of tea, characteristics and reputation. Whilst
Jiangsu and Guandong polished their processes for green
teas, Fujian became a leader in the manufacture of white tea
and oolong. Yunnan province, further south and west, and an
area where wild tea remains common today, was made famous
for its black and pu’erh tea types. China’s varied climate and
topography encourages a large variety of tea products. The
local terroirs allow the tea artisans to create unique processes
from what were often a single annual harvest resulting in
a broad spectrum of teas, styles and customs. Rather than
>>
2 9 F I N L AY S 1 7 5 0
these teas being cultivated on a mass scale, an industry of
smaller producers making specialised products was born. This
led to competition recognised by the Imperial Court resulting
in producers focusing on quality, reputation and detail
exemplified in the creation of yellow and tribute teas which, if
liked by the Emperor, would command a huge price and elevate
the name of the teamaker to immortality. Foreigners quickly
identified the opportunity to cash in on these different and
exciting beverages. During the 17th century, Portuguese, Dutch
and later British vessels began trading with the ports of south
east China. Not only did their ships carry the produce back
to Europe, they also sent botanists to the mainland to try to
extract the secrets of tea making.
For years the Chinese were suspicious and unwilling to give
up their expertise to these unrefined outsiders. They placated
their new trading partners by only offering access to lower
quality seedlings and made teas that were perceived to be
defective. One theory suggests that the rise in popularity of
common black teas in Central Asia, Russia, and beyond was
due to this being the only product the Chinese were willing
to export. The over-oxidised black tea that is the basis for
the English ‘cuppa’ was considered unsuitable for the highly
refined domestic market.
Today, China finds itself as the spiritual home, research and
manufacturing centre of the global tea industry. Whilst the
craft of Chinese tea making remains almost as old as the
hillsides on which it still grows, innovators and tea masters
continue to build on their expertise to create the next unique
type. Whatever this might be and wherever it will be consumed,
one thing is for certain, it will remain as it always has been,
sinensis.
>>
3 1 F I N L AY S 1 7 5 0
SRI LANKA
KENYA
ARGENTINA
CHINA
UK
Rhode Island
New Jersey
Atlanta
USA
MALAWI
UAE
CHILE
London Group Headquarters
PontefractHull
Blantyre
Kericho
Dubai
Mombasa
Colombo Ingiriya
Guizhou
Nanjing
Zhangzhou
Xiamen
Jakarta
Hanoi
San Antonio
CHINA
VIETNAM
INDONESIA
Buenos Aires
Misiones
SantiagoSantiago
Trading/ Sales Offices
Tea Estates
Packing Facilities
Manufacturing Sites
Blending
Innovation Centres
100% Rainforest
Alliance Certified
ALL OUR ESTATES
Partners
Trading/ Sales Offices
Tea Estates
Packing Facilities
Manufacturing Sites
Blending
Innovation Facilities
Tier States/ Farms
Finlays GLOBAL FOOTPRINT
Map key
Tea/ Coffee/ Botanicals:
SRI LANKA
KENYA
ARGENTINA
CHINA
UK
Rhode Island
New Jersey
Atlanta
USA
MALAWI
UAE
CHILE
London Group Headquarters
PontefractHull
Blantyre
Kericho
Dubai
Mombasa
Colombo Ingiriya
Guizhou
Nanjing
Zhangzhou
Xiamen
Jakarta
Hanoi
San Antonio
CHINA
VIETNAM
INDONESIA
Buenos Aires
Misiones
SantiagoSantiago
Trading/ Sales Offices
Tea Estates
Packing Facilities
Manufacturing Sites
Blending
Innovation Centres
100% Rainforest
Alliance Certified
ALL OUR ESTATES
Partners
Trading/ Sales Offices
Tea Estates
Packing Facilities
Manufacturing Sites
Blending
Innovation Facilities
Tier States/ Farms
3 3 F I N L AY S 1 7 5 0
Finlays BUSINESS REVIEW
UK and Europe
Sales growth was strong in 2018 with a number of new clients
signed. As a result, Finlay Beverages produced its best result
since 2011.
During the year, continued strong competition between UK
retailers resulted in customers focusing on price rather than
quality. From an overall market perspective, core black tea
continues to be flat, although there was some growth in fruit
& herbal and speciality teas. Coffee remains in growth, with
small gains in standard roast and ground along with stronger
demand for single serve coffee pods.
Finlay Beverages has purchased a new £3 million coffee
roaster, which will be installed and commissioned in mid-year
2019. £1 million has also been invested in improving tea bag
manufacture by upgrading six IMA machines.
Americas
Revenues from coffee, tea extracts and leaf tea all increased
during 2018. Cold brew coffee continues to evolve with new
iterations in nitro, sparkling and citrus infused. With health
more of a focus for brands, there is an increased interest
in natural ingredients and trendy superfood formulations.
Kombucha, which is a fermented drink made from sweetened
tea and a specific culture known as a scoby, has spread from
a West Coast health food phenomenon to a broader audience
looking for a health edge.
The business continues to introduce new environmental
initiatives, some large, some small but all of them important.
For example, the Rhode Island office now uses 6,300 fewer
plastic bottles annually following the installation of a new
water dispenser.
The following pages provide a brief overview of recent performance and some of the company's current initiatives.
Asia
It was a challenging year for the region with increasing
competition in China from other natural extract companies.
Raw material pricing in China was also an issue as demand
far exceeded supply of certain teas, resulting in double-digit
increases in price in some instances.
The strategic response has been centred on Research &
Development, with Damin launching a number of new
products including a new cold brew coffee extract. Damin has
also won a major contract from a leading global food service
business to supply teas in mainland China and Asia
Local brand owners are looking to respond to consumers’
increasing awareness of health issues and the resultant
imposition of a sugar tax in several countries. This is leading
to new product development or reformulation, a trend which
is providing opportunities for Damin as well as Finlays Asia.
As part of their environment policy, Damin completed the
installation of new five gas boilers during 2018.
Middle East/ Africa/ CIS
There has been an increased focus on signing extracts
customers in line with the business’s 2022 growth strategy.
This has necessitated increasing our resources to identify
new markets with potential whilst also focusing on product
diversification.
New customers have been brought on board from Sudan and
Egypt, where Indian teas were introduced to the market by the
Dubai team. Currency devaluation remains a key challenge for
our markets in Russia, Kazakhstan and Pakistan.
Further market and product developments are planned for 2019.
3 5 F I N L AY S 1 7 5 0
Finlays BUSINESS REVIEW
Tea Estates - Kenya
Climatic challenges proved problematic for performance
in 2018. Rainfall during Q4 2017 was well below average,
resulting in a reduction of crop during Q1 2018. This was
reflected in Mombasa tea prices, which were well above budget
during Q1, before declining during the remainder of the year.
The 2018 situation was reversed at the start of 2019 with
record volumes of tea on the Mombasa auction during Q1
causing a collapse in prices to levels last seen over 10 years
ago. A self-propelled Valiant harvester acquired from Japan
was put into service in August.
In collaboration with partners, the rehabilitation of the
Kipchobos spring was completed as part of the IDH
(Sustainable Trade Initiative) South West Mau Landscapes
Project. As a result, the population now served by the spring
has risen from 5,000 to 12,000.
Trends in lost time injuries continue to head in the right
direction although one of the largest risks remains third party
road accidents within the farms.
Tea Estates - Sri Lanka
The decision to focus on core tea-related businesses in Sri Lanka
is paying dividends, following the merger of Finlays Colombo’s
beverage packing operations with Finlays Tea Estates during
the latter part of 2018.
Beverage packaging, which encompasses value added tea
exports, continues to deliver solid results. In order to increase
the Company’s presence in the value-added market, two
state-of-the-art, automated tea bagging machines have been
commissioned at the Welisara factory. These are the first of
their kind in Sri Lanka.
In another significant milestone the evaluation and buying
operations of one of the country’s largest tea businesses has
been outsourced to Finlays Colombo. As a result, Finlays are
now a major player in the Colombo Tea Auctions and is its
third largest buyer.
During 2018 a CSR programme was launched with one of its
key initiatives being the refurbishment of crèches throughout
Finlays Tea Estates.
Tea Estates - Argentina
In the face of a number of operating challenges, Casa Fuentes
has made some valuable improvements to its operating
model and to productivity. The company has also undertaken
a project with Harada Company to manufacture a range of
Japanese-style green teas. Trials have been successful to date.
In December, three Casa Fuentes plants achieved FSSC 22000
Food Safety System Certification in three plants – Campo
Grande, Acaragua and the Italia blending plant, providing
a framework for effectively managing the Company’s food
safety responsibilities.
Casa Fuentes is the first tea company in Argentina to achieve
this standard.
Finlay Flowers
Project Ongeza, the expansion of Lemotit Farm alongside the
closure of two farms in Kericho, is progressing smoothly and
is on schedule to complete by the end of 2020. The support
given by the employees in Kericho in these uncertain times is
much appreciated.
An important sustainability initiative is underway at Lemotit
involving a 180,000 cubic metre dam which, when completed,
will collect rain run-off from 60 hectares of green houses.
Other projects include doubling the size of the existing
packhouse, building nine management houses and planting
another nine hectares of roses.
Experiments have begun with 100% bio degradable sleeves.
This is the plastic packaging which most customers now insist
surround each bouquet of flowers. If these new sleeves became
the norm, the environmental benefit will be important.
3 7 F I N L AY S 1 7 5 0
7.3 bn
12 bn
62%
27,000
15%
3 bn
4.7 bn
78%6.6 m
kilos
cups
cups
litres
litres90%
of RTD/Iced tea
consumed by
Americans, nearly
a quarter of which
was made with
Finlays tea.
of RTD/Iced tea was
consumed in China,
making it the largest
consuming market
globally. Finlays/
Damin extracts went
into more than 3
billion litres of this.
The combined market
share of the top ten owners
of RTD/Iced tea brands by
volume; approximately
15% of which was supplied
by Finlays/Damin.
the total land
attributable
to Finlays
tea-growing
operations,
equivalent to
more than 44,000
football pitches.
of tea manufactured in Kenya
was exported by Finlays,
equating to nearly 30 billion
cups of tea.
of tea & infusions -
produced by Finlay
Beverages, from
black and green to
specialty tea and
herbal infusions.
of tea are consumed daily
globally, compared to hot
coffee at 2.4 bn cups daily
making tea the second
most consumed beverage
after water.
of global consumers believe
that green tea has a positive
impact on their health.
of coffee sold by Finlay
Beverages, equating to
almost a billion cups of
coffee
of Finlays waste from business
operations is recovered, reused
or recycled.
Finlays FASCINATING FACTS
hectares
3 9 F I N L AY S 1 7 5 0
Together we’re StrongerLONG-TERM PARTNERS, FINLAYS AND STARBUCKS COLLABORATE ON
EMPOWERMENT AND DEVELOPMENT WITH COMMUNITIES
IN KENYA AND SRI LANKA.
Words: Jo Millar Images: Finlays archives
4 1 F I N L AY S 1 7 5 0
‘Their mission is to ‘inspire and nurture the human spirit - one person, one cup and one
neighbourhood at a time’ an aim which applies throughout their supply chain.’
Starbucks has been a customer of Finlays for many years, and
recently the relationship has been strengthened to include
projects designed to empower and develop the potential of
communities in Kenya and Sri Lanka.
Like Finlays, encouraging sustainable business and developing
people are two of Starbucks’ core values. Their mission is
to ‘inspire and nurture the human spirit – one person, one
cup and one neighborhood at a time’ an aim which applies
throughout their supply chain from suppliers to customers.
As one of these suppliers, Finlays wholeheartedly buys into
this mission and Starbucks’ ‘pursuit of doing good’.
At Finlays our mission is to ‘connect humanity through
natural beverages. Combining tradition and innovation to
create a healthier, happier and better world by bringing the
best from bush to cup.’ In pursuit of this, Finlays is committed
to creating a Sustainable Future supported by the adoption
of, and a commitment to, six strategic objectives and targets
as explained on page 76. These include Finlays’ belief in
providing local communities with help to empower them to
make a positive impact on the issues which affect them. This
includes a commitment to gender equality in the workplace.
Finlays currently supply Starbucks with tea from six different
tea growing regions and has recently started sustainability
related projects in two of these, Kenya and Sri Lanka, both of
which are being supported by Starbucks. The projects have
been designed in collaboration with Starbucks and targets
issues which are important to the communities concerned.
>>
4 3 F I N L AY S 1 7 5 0
‘Crucially, funding is coming from the sale of tea, providing further opportunities for the projects to grow and the people involved to prosper.’
and working on James Finlay Kenya’s tea estates with the aim
of giving them the necessary skills to allow them to become
economically independent.
The management training module was launched in Kenya in
February 2019, during a visit from Starbucks to Finlays’ tea
estates in Kericho. Speaking during the launch, James Finlay
Kenya’s Managing Director, Simeon Hutchinson reiterated
the Company’s commitment to an inclusive workplace and
an increase in women representation in the Company’s
management team noting that this had risen from 2% in the
1990s to the current 25% and rising.
The event was attended by representatives from Starbucks
including Starbucks’ Mattea Fleischner, Head of Sustainability,
Crucially, funding is coming directly from the sale of tea,
providing further opportunities for the projects to grow and
the people involved to prosper.
In Kenya, a project has been set up with two separate
components; management training and entrepreneurship
training. Management training seeks to address gender
inequality through the development and empowerment of
young women to enable them to take on management positions
or more responsibility. Entrepreneurship and vocational skills
training is being provided for disadvantaged people living
>>
Starbucks visit to Kericho in February 2019.
4 5 F I N L AY S 1 7 5 0
which will train and develop the skills of 58 volunteers to
be ‘change agents’ in their communities to address issues
such as waste and water management, health, hygiene, and
community cohesion. By focussing on young women, we also
hope to further address issues of gender discrimination and
inequality as well as skills development. This project is due to
run throughout 2019.
We very much value what we hope will be an enduring
relationship with Starbucks.
Zoe King, Tea Buyer (East Africa, Argentina) and Doug
Langworthy, Quality Assurance Manager Tea and Botanicals.
Finlays’ attendees included Rachel Jones, Global Accounts
Director and Michael Thiongo, Leaf Tea Operations Manager.
Also present were representatives from the Kenya Institute of
Management who also helped with the project and members
of James Finlay Kenya’s management.
In Sri Lanka, our partnered project focuses on community
development where Finlays has a long and successful history
of implementing impactful sustainability initiatives as well as
fostering positive community relations. The Company was the
first in Sri Lanka to have one its tea estates receive Rainforest
Alliance certification; now all our estates are accredited.
Youth volunteer groups are being set up as part of a project >>
‘By focusing on young women, we also hope to further address issues of gender discrimination
and inequality as well as skills development.’
4 7 F I N L AY S 1 7 5 0
Future Shaping FinlaysWOLFGANG TOSCH IDENTIFIES THE FORCES SHAPING THE FUTURE OF BEVERAGES
INDUSTRY AND FINLAYS' ROLE IN LEADING THIS CHANGE.
Words: Kamini Dickie Images: Finlays archive
“If you have always done it that way, it is probably wrong.”
- American inventor Charles F Kettering
“We need to innovate.”
- Finlays’ Managing Director Guy Chambers
Tea, it can be agreed with some conviction, is an industry
rooted in tradition. After all, it is cultivated, harvested and
processed using well established and widely understood
methods that date back decades, in some cases, centuries.
We understand how to ‘make’ tea. While such certainty is
a strength, in an era where change and innovation are the
defining constants, it is also increasingly a weakness. It’s
certainly a conviction held by Finlays’ Managing Director, Guy
Chambers. Since his arrival in the autumn of 2015, he has
been redefining the business as one where innovation is not
only a mindset, but also a driver that differentiates Finlays
from its peer group. “If you look across the beverage industry
in the last 20 to 30 years, the structure of beer, wine and
dairy has changed significantly,” says Guy. “But tea; if we
take you into a tea factory, our fathers and our grandfathers
would recognise it. It hasn’t changed; it hasn’t changed at all,
so there’s a disconnect there. What has driven the change in
these other industries is basically the application of science.”
To that end Finlays have created a new role and function, that
of Group Innovation Director, leading a Group Innovation
>>
4 9 F I N L AY S 1 7 5 0
Organisation. As his first appointee Guy found an ideal
candidate in Wolfgang Tosch. With an impressive career
to-date in product and process innovation in the brewing
industry, Wolfgang joined the world of tea in 2017; his track
record for innovation was exactly what Finlays was looking
for.
“The recognition was that we needed someone who knows
about innovation and ideally not from the tea industry. You
want someone who’s close enough that they’re not considered
completely alien. You don’t want to get someone from Apple
or Microsoft,” explains Chambers. “If you get someone from
inside the tea industry the chances are they’re not going to
be challenging enough, they’re not going to be disruptive
enough.”
Innovating at Finlays
Now 18 months at Finlays, Wolfgang Tosch says that what he
loves about the tea industry is its scope and the opportunities
it presents. “The difficulty is deciding what to do first,” he
says. “There’s so much you can do. There’s so much that’s
completely unexplored. And that excites me.” Wolfgang
has made ambition statements, a strategic framework that
looks to both market-facing and technical advances. Looking
outward, the goal is to drive top-line growth though innovation
that premiumises and expands the tea, coffee and botanical
categories. It’s worth noting that Finlays has never lost touch
with its past. The lessons of two centuries feel more relevant
today than ever. The Company is drawing on these long-held
values to create a better future for beverages. That means
harnessing new technologies in a responsible, sustainable
way to ensure future innovations drive the industry to new
heights, delivering healthy products to the world.
Without giving away too much, Wolfgang notes that work is
underway on late stage customisation of tea, as well as new
ways of serving cold brew coffees. Of interest is that all of
this work is being accelerated by looking for guidance not
just from Finlays’ direct customers. Wolfgang elaborates, “We
made a conscious decision that we want to understand not
only our customer, but also our customers’ customers: the
consumer – because only then, at least from an innovations
side, can we anticipate both the new trends in the market and
the needs of our customers a lot quicker.”
On the technical side, Wolfgang’s team is working from ‘bush
to cup’, looking to technology and process innovations that
improve quality, reduce cost and drive sustainability. The
work starts in the field, looking at how plant breeding can
be done differently; how new initiatives and technologies
in agricultural science can drive a step-change in breeding,
growing and land stewardship practices. Wolfgang notes that
for tea it can take up to 20 years for a breeding programme
to produce a commercial proposition. In other agricultural
>>
Arisha Ramparsad (Beverage Applications Specialist).
5 1 F I N L AY S 1 7 5 0
‘Can you create a tea factory where you run things more efficiently and deliver a better quality product...that really would be the Holy Grail.’
helping everyone across Finlays, from operations to sales,
speak the same language about tea and to understand its taste
benefits. It’s something that Wolfgang has seen the value of in
the brewing industry: “It is essential to have uniformity on how
we taste and conduct sensory evaluation across Finlays.”
Underway is research in nutritional science. What will be under
the microscope is a search for links between the functional
ingredients in tea, coffee and botanicals to human health
benefits. Consumer tastes, demographics and values are
reshaping purchasing decisions; consumers today are the most
clued up on their health than any before.
Influencing Innovation
Looking to the future, Wolfgang says that in five to 10 years
industries advances in modern breeding processes have sped
this up considerably.
Process research will also be taking place with Wolfgang and
his team given a green light to pull apart and put back together
how tea is made. This will not only be a consideration of
mechanical processes, but also bioprocesses.
In the field of analytical and sensory science Wolfgang and
his researchers have made great strides, linking naturally
occurring chemical properties in tea with their sensory
attributes. A greater understanding of the flavour lexicon is
>>
Nitro cold brew coffee.
5 3 F I N L AY S 1 7 5 0
‘Everybody talks about Westernisation, I'm talking about 'Easternisation'. There's a lot of positive
trends, a lot of great influence coming from Asia.’
current trends suggest substantive shifts in the varieties of
tea available. “Hot black tea is subject to fierce competition
from products such as green tea, fruit and herbal infusions,
specialty tea, coffee and other soft drinks, which are expected
to become new growth points. I think black tea will continue
to shrink as it struggles to maintain consumer interest and
it will shift to other varieties of tea. We will see what I call
‘Easternisation.’ Everybody talks about Westernisation, I’m
talking about ‘Easternisation.’ There’s a lot of positive trends,
a lot of great influence coming from Asia.”
This is to come. In the here and now Wolfgang’s ambition is
to bring tea – its production and application - into the 21st
Century and to apply these advances to its the premiumisation.
As Guy Chambers concludes, one of the ideal outcomes of
this investment in innovation will be finding the answer to
the question: “How can you create a tea factory where you
actually run things more efficiently and deliver a better-
quality product at the other end? If you could do that, that
really would be the Holy Grail.”
5 5 F I N L AY S 1 7 5 0
Wolfgang Tosch learnt his craft at one of the world’s most
demanding schools, becoming a brewmaster at the Technical
University of Munich (Weihenstephan). He continued his
studies at the University of Manchester and was awarded
a PhD in Microbiology in 2006. Wolfgang has over 20 years
of global experience in the beer, beverage, food ingredient
and biotech industries, developing technologies and growth-
led innovations. He has developed his career with highly
innovative and globally profitable companies.
He put his education to use first at Genencor International (later
Danisco, which was then acquired by DuPont), researching
solutions for the brewing, distilling, fruit juice and wine
industries. He subsequently joined SABMiller and finished his
eight years with the multinational brewer as Global Manager
for Brewing Innovation Development. Wolfgang went to
Anheuser-Busch InBev following its acquisition of SABMiller
and was the Global Director Exploratory Product Innovation
for what is the world's largest brewing company. In his time in
brewing Wolfgang repeatedly demonstrated an ability to think
outside the norms of the industry.
One such technical innovation was the development of beer
brewed using alternative carbohydrate sources. A novel
process produced a beer that tasted like beer but was from
a non-traditional brewing ingredient. Using locally grown raw
materials, such as cassava and sorghum, brewers in Africa
play a vital role in bolstering local economies whilst reducing
the carbon footprint of production systems – local farmers
see increased outputs and profits while businesses limit costs
of importing raw materials.
WOLFGANG TOSCH
‘In his time in brewing Wolfgang repeatedly demonstrated an ability to think outside the norms of the industry.’
Finlays PEOPLE
>>
5 7 F I N L AY S 1 7 5 0
As for market facing innovations, imagine for a moment
that the classic ingredients of beer purity weren’t defined in
16th Century Bavaria but rather on the Indian subcontinent.
Working with teams at head office in England and locally in
India, Wolfgang created a series of beers that swapped out
the bittering properties of hops for local ingredients such as
cinnamon and coriander. The beers, branded as Indus Pride,
were something very much out of the ordinary and well received
by beer enthusiasts. Then came the development of ‘Hopcraft’
– an innovative Hop Finishing system – a new and different way
to drink beer. Two years in development, the ‘Hop Finishing
Tap’ infuses beer with hops as it is being poured at the bar, to
bring you the freshest possible hop aroma and flavour.
On joining Finlays Wolfgang’s passion for brewing beer has
become the inspiration for developing brewing themes in
relation to tea. It may seem that there’s a natural technical
progression from beer to tea; however, Wolfgang views his role
at Finlays as much, much more.
Finlays Innovation Logo
Finlays’ systemisation of its innovation processes has been
represented in an especially designed logo. Innovation is art
and as such the innovation logo highlights the five areas of
research interests, namely Agricultural Science, Processing
Research, Nutritional Science, Analytical Science and Sensory
& Applications.
It reflects how Innovation at Finlays is structured, with the
mandate to innovate tea, coffee and botanicals. The logo is
designed to appear in combination with the main Finlays’ logo.
5 9 F I N L AY S 1 7 5 0
Doing the Right ThingMIKE KEATING IDENTIFIES A PROJECT IN SRI LANKA WHICH DEMONSTRATES
THE GROUP’S COMMITMENT TO SOCIAL RESPONSIBILITY, SUSTAINABILITY
AND GREAT LOCAL LEADERSHIP.
Words: Mike Keating Images: Finlays archive
‘A manager ensures we do things right, whilst a leader ensures we do the right thing.’
I always liked this as a simple means of defining the
difference between a manager and a leader but wondered
how this might apply in Finlays. Take for example Sudath
Ariyathilake, Senior Manager of Hopton Estate in Sri
Lanka. Situated in the Badulla District of Uva Province
and growing tea and rubber, Hopton has a population of
circa 10,000, with 565 directly employed on the Estate.
Shortly after taking over the Hopton role, Sudath encountered
a large group of villagers by the roadside waiting for a water
bowser so they could collect fresh water for their families.
He was dismayed to find that 11 villages, supporting 750
families, had no ready access to potable water. As a result,
he made it his mission to find a way of providing potable
water for the community, starting with finding a source
of suitable water, a huge challenge given that the area is
mountainous and not easily accessible. As explained on page
62 this was not the first time Sudath had taken on a project of
this kind but the challenges were nevertheless considerable.
After much searching Sudath found the Milla Oya stream high
in the mountains, with a natural and sustainable supply of
unpolluted water. This brought the next challenge - obtaining
the funding required to capture and pipe the water 2.2
kilometres to the villages ready for final treatment and supply.
After much lobbying of Government and Non-Government
organisations, and engagement with the local community,
>>
6 1 F I N L AY S 1 7 5 0
‘Its success is testament to the foresight, determination and sheer hard work of Sudath, which in turn directly impacts on the villagers that work on the Hopton Estate.’
determination and sheer hard work of Sudath, which in
turn directly impacts on the villagers that work on the
Hopton Estate. Having a manager who demonstrates such
levels of social responsibility drives a culture of loyalty,
teamwork and productivity that many leaders would envy!
This is but one example of Finlays' people who are tangibly
practising and delivering our values of ‘Trusted, Sustainable
and Innovative’ every day. Whether manager or leader they are
great role models who go above and beyond the call of duty,
and we’re very proud that they are part of the Finlays' Family.
including them agreeing to pay for metered water to provide for
ongoing maintenance, the necessary funding and permissions
were granted, and the project started in late 2017. To date it
is almost complete and due to open shortly with all pipework
in place together with two holding tanks with a capacity of
140,000 litres, and the associated filtering/treatment tanks.
Additional funding was found for the provision of over 230
toilet facilities resulting in the initiative being adopted by the
Sri Lanka-wide Water and Sanitation Improvement Project.
The impact on the quality of life on the Hopton community
is immense, and its success testament to the foresight,
>>
Hopton Tea Factory.
6 3 F I N L AY S 1 7 5 0
Sudath Ariyathilake graduated from the University of
Sri Jayawardhanapura Sri Lanka with a BSc Business
Administration (Special) degree in 1996. He joinied
Udapussellawa Plantations as a tea planter in 1996
before the Company was taken over by Finlays in 1998.
Having completed his training, Sudath was appointed
to Court Lodge Estate in Nuwara Eliya as an Assistant
Superintendent. Since then he has been posted to a number
of different Estates as his career has progressed before he
took over his current role as Senior Manager of Hopton Estate.
Throughout his time with Finlays he has made it his mission
to find ways of improving the drinking water quality of those
communities living on, and near to, the estates on which he worked
When on Dammeria B Estate, he first tackled the problem
of polluted drinking water by arranging for the estate and
villagers to be supplied from a water bowser before looking
for a clean source of supply. Eventually this was found in a
village adjoining the Gamewela division of the Estate. To fund
the project, he had to overcome various challenges before the
Ministry of Water Resources agreed to pay 75% of the cost with
the balance being met by Finlays. This resulted in a Community
Based Watershed Management pilot project at Gamewela in
2009 which benefited 289 local families. Having established
a precedent, similar projects were then undertaken on the
Hanipha and Polgahalanda Divisions of Dammeria B. Helped
by Government funding totalling SLR 2.1 Million a further
458 families were able to enjoy clean unpolluted water. As
explained on page 58 the mission then continued at Hopton.
Sudath is a member of China Agricultural Service
Extension Programme and of the Global Land
Stewardship Forum. In his spare time, he likes to read
agriculture journals to broaden his education and find
ideas which he can be put into practice on his Estate.
Outside work, Sudath looks forward to spending time with his
family in Kandy once every two weeks. Working so far from
home would be difficult without the great support which Sudath
receives from his wife Chandi who looks after their two children.
SUDATH ARIYATHILAKE
‘He has made it his mission to find ways of improving the drinking water quality of those communities living near to the estates on which he worked.’
Finlays PEOPLE
6 5 F I N L AY S 1 7 5 0
Coffee ConnectionsTOM BLACKWALL EXPLAINS THE IMPORTANCE OF BUILDING RELATIONSHIPS
AS A WAY OF ENSURING A SUSTAINABLE SUPPLY OF COFFEE.
Words: Tom Blackwall Photography: Finlays archive
6 7 F I N L AY S 1 7 5 0
‘The importance of sustainability in the coffee supply chain is something that almost every
consumer in the developed world is aware of.’
As one Colombian farmer in Manizales once told me “Coffee
is not just a beverage it is my livelihood.”
The importance of sustainability in the coffee supply chain is
something that almost every consumer in the developed world
is aware of but, according to the National Coffee Association
of America, 28 per cent do not know if their coffee has been
grown in a sustainable way. The average coffee farmer grows
on a plot no greater than 2 hectares which in today’s market
will make him a little over $1,500 per year. Considering that
the world consumes over 2.25 billion cups of coffee annually,
collectively a small change can make a huge difference to the
livelihood of a farmer. However, it is very difficult to prioritise
environmental and social responsibility when the custodians
of the land face a daily battle to feed themselves and their
families.
What is a luxury for us is the livelihood of many, so we need
to be keenly aware of the impact that our actions have on
farmers and their communities. Farmers are not poor because
they farm coffee, but rather it is some of the poorest people in
the developing world who choose to farm coffee. Coffee gives
us the opportunity to create that cycle of change which many
farmers so desperately want but it is important to understand
their needs and facilitate this through trade and long term
relationships.
At Finlays we continue to build on our long term, direct
relationships with the people who grow our coffee. A
collaborative supply chain is at the heart of everything we do.
>>
6 9 F I N L AY S 1 7 5 0
Tom Blackwall – (Global Head of Coffee) (sitting second from right) and
Alan Davies – (Coffee Purchasing Manager) (standing fifth from right)
with co-operative members.
7 1 F I N L AY S 1 7 5 0
‘Future growth and prosperity for all those in the supply chain lies in this sourcing method and our aim is to be the buyer of choice.’
based in Boa Esperança, South Minas Gerais, Brazil and is the
perfect example of how relationship led sourcing has huge
advantages for both ends of the supply chain. When we first
started sourcing from Asscostas they had 69 members who
were based in a small community hall in rural Boa Esperança.
The cooperative had one basic computer and were unable to
market their coffee internationally. In 2008 Finlays introduced
Asscostas to an international exporter who was able to start
milling and exporting their coffee internationally. In 2014
Asscostas were able to build their own mill, warehouse and
export internationally themselves as well as opening new
offices and a successful roastery and coffee shop in 2016. For
Finlays we have a guaranteed source of supply and consistent
quality, even during the drought of 2014, as well as adding
value to some of our blends by referencing the provenance on
retail packs.
I said earlier that it is very difficult for the small-scale farmers
to prioritise environmental and social initiatives when every
day is a struggle to survive which is why we source directly
from farmers’ cooperatives whose larger scale allows them to
administer initiatives and distribute income equally to their
members. It is our fundamental belief that future growth
and prosperity for all those in the supply chain lies in this
sourcing method and our aim is to be the buyer of choice
for each of the co-operatives from which we source. One
such is Cooperativa de Productores de Cafés Especiaias de
Boa Esperança (Asscostas) with whom we have had a strong
relationship since 2008. Asscostas has 196 family farmers
>>
7 3 F I N L AY S 1 7 5 0
Cold Brew's a Hot Ticket!COLD BREW IS THE FASTEST GROWING SECTOR OF THE COFFEE MARKET.
WE LOOK AT THE REASONS WHY.
Consumers are changing the way we think about coffee: from
extravagant lattes that trend on Instagram, to the demand for
coffee beverages that are pure, clean and natural. The market
is rapidly evolving and continues to be driven by younger
consumers who want their beverages to be unique, premium
and personalized. Cold Brew coffee has become one of the
fastest growing drinks for young coffee drinkers.
There is no denying that Cold Brew coffee has been the buzz
menu item for the past few years, with some industry experts
even arguing that it has become the savior of the coffee
industry. No longer simply an exclusive or novelty concoction,
Cold Brew is now an increasingly demanded drink by
millennials (aged 22-37), who have exhibited a long-standing
and discerning taste for coffee. Post-millennials, or Generation
Z (aged 13-22) are also to thank for generating interest in the
Cold Brew category. These groups of young consumers are
focused on maintaining a healthy lifestyle, fueled by natural,
high-quality ingredients. Coffee is no exception. The total U.S.
retail Ready to Drink (RTD) coffee category (up over US$2.4
Billion) is holding steady at 5% annual growth. Cold Brew,
however, still leads the coffee category with continued double-
digit growth, and a focus on premiumization, innovation and
flavor development. The global retail RTD coffee market is
worth US$12.2bn. Cold Brew, originally introduced as a better-
flavoured alternative to a classic cup of hot coffee, is seen as
offering a smoother taste with less acidity. As the market for
Cold Brew matures, there is an increase in demand for the
next wave of ideation in both RTD and foodservice spaces.
>>
7 5 F I N L AY S 1 7 5 0
‘Companies will need to provide a pure, natural product that emulates the characters of traditional
crafted small-batch Cold Brew while producing it at a commercially viable speed.’
Whilst pure black or slightly sweetened applications remain
the major draw for RTD Cold Brew, the category is starting to
see more product development. Companies are capitalizing
on the success of their Cold Brew products by expanding their
offerings to include Cold Brew infused with nitrous oxide,
citrus flavors or non-dairy alternatives. The market shows no
signs of slowing down and with increased demand and interest,
companies will need to provide a pure, natural product that
emulates the characteristics of traditional crafted small-
batch Cold Brew while producing it at a commercially viable
speed. In foodservice, the increased need for convenience
combined with renewed interest and differentiated offerings
in coffee has provided the ideal scenario for Cold Brew to
grow. According to Mintel, 21% of consumers cite any iced/
Cold Brew coffee as the type of coffee drink they purchase
most often away from home. There are opportunities for
major growth in the sector, especially as Cold Brew is a prime
product which can be consumed at any time of day. There are
new possibilities for Fast Casual and Quick Serve locations to
position their offerings as a snack or post-morning mealtime
accompaniment or stand-alone afternoon pick-me-up. Cold
Brew captures the interest of the consumer as a more palatable
and exciting option for all-day consumption.
The next wave of Cold Brew is believed to feature added
functional benefits, such as protein and a wide array of
adaptogens. Also, expect to see more botanicals in Cold Brew
for flavour and functional purposes. As we see the Cold Brew
market change overtime, with no sign of slowing down, Finlays
remains dedicated to being at the forefront of innovation in
this category.
7 7 F I N L AY S 1 7 5 0
Boston Tea PartyTEA HAS BECOME INCREASINGLY IMPORTANT TO THE CRAFT BEER INDUSTRY,
IN MANY SURPRISING WAYS. WE PROFILE FINLAYS' RELATIONSHIP WITH
THE BOSTON BEER COMPANY.
Words: Kamini Dickie Images: The Boston Beer Company
7 9 F I N L AY S 1 7 5 0
‘At the heart of Koch’s company is an insistence on innovation in taste, and one of its recent initiatives has involved tea.’
on innovation in taste, whatever the beverage, and one of its
recent initiatives has involved tea, specifically, hard tea which
is iced tea with the addition of alcohol.
Over the last two decades Koch has brought his tea-based
beverages to market using raw materials from Finlays. Boston
Beer has relied on Finlays not only as a supplier able to source
tea varieties from around the world but also as their partner in
innovation. The latest project comes to market this year – Wild
Leaf Hard Tea, a lower calorie variant of the original hard leaf
offering.
In the first of a series of articles looking at some of Finlays'
customers, we profile the Boston Beer Company. Tea has
become increasingly important to this pioneering craft beer
business which has introduced a range of innovative new tea-
based products, many of which have been developed with the
help of Finlays and include tea sourced from the Company’s
worldwide estates.
More than a beer brewer
Boston Beer was set up in the 1980s as a craft beer business
to give consumers a new drinking experience far removed
from that offered by the large multi-national brewers. It is true
that Boston’s name may promise all things beer, but this is
a misnomer. At the heart of Koch’s company is an insistence
>>
8 1 F I N L AY S 1 7 5 0
‘Tea is a very complex, multi-layered flavour. When you do it right it can be very smooth.’
“We have had great engagement with Finlays new research
centre in Rhode Island,” says Koch. “and were able to host
their Board of Directors in our brewery where we had a
beer dinner to show off everything we make, including the
prototype for Wild Leaf.”
After a few false starts, in 2001 Boston Beer first brought to
market Twisted Tea. Today it is a hit and continues to be a
growth driver for Boston’s business. Branching out from the
original formulation, it is now available in a variety of fruit
flavours including Mango, Peach, Blueberry and, intriguingly,
Huckleberry, extending its appeal to drinkers. Koch notes that
a hard tea drinker is someone who is looking for refreshment
and a beverage with fulsome flavour that can be lingered over
on a hot summer day. And it’s familiar: Koch estimates that
80% of American households have tea on their shelves.
Boston’s tea, it transpires, originates from Finlays estates
in Argentina. Koch notes that to make cold tea you need
a less tannic flavour profile and a little smoother taste,
characteristics that can’t be created from tea grown in other
climates. “Tea is a very complex, multi-layered flavour,” he
says. “When you do it right it can be very smooth. You need
tea with smooth tannins and polyphenols".
The development of Wild Leaf Hard Tea, is Boston Beer’s latest
enthusiasm for tea. As a lower calorie variant, it is designed
to meet the preferences of the more health-conscious and
is the latest competitor in the innovation-driven Progressive
Adult Beverage sector. Here the story of Boston Beer becomes
>>
8 3 F I N L AY S 1 7 5 0
‘Tea is also being increasingly used as an ingredient by American craft brewers in a variety of beer styles.’
with Finlays Research & Development Centre in Providence
Rhode Island, to select the blend of teas required for the
optimal flavour. A second tea innovation is being launched
this year – Boston’s first Kombucha. Branded as Tura Alcoholic
Kombucha, this alcoholic beverage will have live probiotics,
real fruit and, crucially, promises great taste. It’s being rolled
out in limited distribution to select markets beginning in the
first quarter of 2019.
Tea as a beer ingredient
Tea is also being increasingly used as an ingredient by Ameri-
can craft brewers in a variety of beer styles. Boston Beer is no
exception in this regard. “We do experiment with it in beers,
we have done Chai-type beers,” says Koch. “We have expertise
in its flavour impression and its use so naturally it finds its
way into some of our beers.”
one of family with Jim’s daughter, Emily, taking a break from
her studies at Harvard in the summer of 2018 to work in the
brewery’s innovation laboratory. Her interest was that of her
peers, who liked the taste and flavours of hard tea but didn’t
want the calories in its original formulation. Koch notes with
understandable paternal pride, “She’s always had an ability to
see things that other people don’t see.” As Koch reports, “Wild
Hard leaf Tea came together very quickly with the name, the
design – and crucially, the ‘reason for being’, that is to say
an understanding of its market – all completed within a few
months.” And, as for the tea itself, Boston Beer worked closely
>>
8 5 F I N L AY S 1 7 5 0
As an example, Angel City Brewery in Los Angeles, an offshoot
of Boston Beer, has created an Oolong flavoured Saison, a beer
style that originated in the French-speaking parts of Belgium,
a pale ale first brewed centuries ago to refresh ‘seasonal’
farm workers. Angel City’s Oolang Saison – whose label kindly
credits Finlays and the high mountains of Sri Lanka for its tea
content – has found favour with beer critics. In 2017 it won a
silver medal at the California State Fair.
Koch equates today’s boisterous and innovative American
craft brewing culture with that of Silicon Valley in its heyday.
“This is where there’s a culture of innovation and creativity,
an infrastructure of drinkers that supports that and 8,000
very creative, adventurous brewers,” says Koch. “I think that
craft brewers will discover what we’ve discovered, that tea fits
into our tool kit of ingredients. It’s got a many thousand-years
old history, it’s got an enormous variation in flavours and it’s
got a flavour complexity that rivals hops.”
Koch likes the rich heritage of Finlays, from its origins in 1750
and equates the relationships built up by this family founded
business to that which Boston Beer has with its hop merchants.
These enterprises date back to the beginning of commercial
hop growing and he muses that his great-great grandfather
may once have bought his hops from first generation hop
merchants. Koch notes. “We’re just at the beginning of our
first century with Finlays. I’m confident that this will continue
because I’ve been impressed with them - as is my daughter!”
Partner Profile
Jim Koch, Founder and Chairman, Boston Beer Company
The United States in the 1980s was a land populated by legends
who were to become the genesis of the craft beer movement.
These pioneers brought to the attention of a new generation
of beer drinkers, flavours and tastes once commonplace yet
forgotten, sunk beneath waves of refreshing, yet bland, mass-
produced lagers. Amongst these trailblazers was Jim Koch,
founder and today chairman of the Boston Beer Company.
He’s been a leader in innovation from the outset, beginning
with beer, then moving into cider and hard tea, this being iced
tea with the addition of alcohol.
A Harvard graduate, Koch left a lucrative career as a business
consultant in 1984 to become a brewer, in some ways returning
to his familial roots, starting with a recipe once brewed by
his great-great grandfather. Samuel Adams Boston Lager, a
Vienna-style red lager with lots of chewy malt character to
balance the classic Noble varieties of hops from Germany, was
an instant success. Within six months of its launch it came
top in a Consumer Preference Poll at the largest gathering
of the country’s most knowledgeable and demanding beer
enthusiasts, the Great American Beer Festival. Since then
Boston Beer’s fortunes have been propelled not only by
innovation in flavours but also by an insistence on quality. Its
most recent initiative is its Freshest Beer Programme. Boston
Beer works with its wholesalers to ensure that its beer is kept
properly refrigerated, at near zero temperature for no more
>>
‘Jim Koch’s emphasis of establishing a presence in the mind of retailers and distributors was monumental and ground-breaking.’
than a week or two at its distribution centres. This expensive
insistence on a lean supply chain ensures that its beer reaches
consumers in pristine condition. It’s a superb accomplishment
from a standing start less than a decade ago.
It's that insistence on quality, and on carving out a relationship
with distributors and retailers who knew very little about craft
beer, that made Koch an industry leader in its embryonic 80s
origins.
Charlie Papazian, founder of what became today’s Brewers
Association and himself a legendary figure in home brewing
circles, says that Koch was instrumental in turning craft beer
into a consumer category, “In the mid to late 1980s and in
the early 90s, Jim Koch’s emphasis of establishing a presence
in the mind of retailers and distributors was monumental
and ground breaking,” recalls Papazian. “Simply speaking he
established that presence at a time when it was very difficult
for small brewers to gain any attention in the distribution and
retail chains.”
And part of creating a market for craft was about educating
consumers. In the 1980s when it came to perceptions of
quality, imported beers – Heineken, Corona, Guinness, even
Bass – ruled the roost.
Accordingly, Koch took the imports head on, hosting ‘Liquid
Lunches’, blind taste tests where drinkers were given two
unmarked samples, one a Sam Adams brand and the other an
import. The imports were trounced, with Sam Adams’ beers
winning 34 out of 35 tastings. For example, Boston Lager was
preferred to Heineken by 217 drinkers; 22 picked Heineken.
Koch, at the time, said that he wasn’t surprised by the results.
“I was proud that Sam Adams beers won over these great,
world-class beers. But when you take away the fancy label and
the big advertising budget, you lose the mystique of imported
beer.”
Over the years Boston Beer has remained an innovator in beer
styles and beer presentation, garnering accolade after accolade
in competitions around the world. Boston has won prizes for
sour beers, strong beers, stouts – and, of course, numerous
awards for Samuel Adams Boston Lager.
8 7 F I N L AY S 1 7 5 0
‘From its beginnings around the proverbial kitchen table, it (Boston Beer) now brews more than four million barrels annually.’
Today’s Boston Beer is an impressive enterprise. From its
beginnings around the proverbial kitchen table and Koch
visiting Boston bars with a selection of hand labelled beer
bottles, it now brews more than four million US barrels
annually. It’s a sizeable output, one that according to the
country’s craft trade association, the Brewers Association,
ranks Boston Beer as the country’s second largest craft brewer.
Yet for all its success Boston Beer and Jim Koch remain at
heart a craft brewer, supportive of the country’s community
of small-scale artisans. In 2008, at the height of an aroma
hop shortage, Boston Beer offered some of its surplus 20,000
pounds to brewers struggling to obtain supplies. Recipients
were only asked to pay cost rather than being charged the then
exorbitant spot market rates.
For the last decade Boston Beer has acted as a microfinancier,
providing capital for start-ups in brewing. Working with
Accion, a non-profit small business lender, to date Boston
Beer’s Brewing the American Dream programme has provided
loans to more than 1,860 businesses across 35 states as well as
offering business coaching.
8 9 F I N L AY S 1 7 5 0
JANET RUTO
‘Janet has raised awareness of gender and humanitarian issues by helping to mark global initiatives.’
Finlays PEOPLE
Janet Ruto is the Gender Empowerment Manager at James
Finlay Kenya (JFK). Her job is to provide technical and strategic
advice on workplace policies, procedures and practices within
the Company’s tea and flower businesses.
Janet joined JFK at the beginning of 2015, bringing with her more
than 20 years’ experience in humanitarian and development
issues. She has specialised in creating programmes that
promote human rights, community resilience and safety and
economic empowerment for businesses across east Africa.
Janet holds a Master’s Degree in Disaster Risk Management
and Humanitarian Assistance, a Post Graduate Diploma in
Gender and Development and is a Bachelor of Education
(Honours). She is married with three sons.
Janet is tasked with implementing Project Athena which aims
to promote gender equality and female empowerment with
the help of a two-year apprenticeship programme run in
conjunction with a local technical training institution and the
automation of most jobs requiring physical strength. To tackle
the underrepresentation of women in senior management
roles, Janet is also involved in the development of several
leadership programmes with input from the Kenya Institute
of Management.
More generally, Janet has raised awareness of gender and
humanitarian issues by helping to mark global initiatives such
as International Women’s Day, Day of the African Child and
16 Days of Activism against Gender-Based Violence.
To help women combine their job commitments with their
household roles, organic kitchen gardens have been set up to
reduce the time required to find vegetables whilst at the same
time improving family nutrition. Energy efficient smokeless
stoves are being installed which reduce fuel consumption and
improve air quality. In addition to all these initiatives Janet is
helping to roll out new day care centres which will allow more
mothers to join the work force.
9 1 F I N L AY S 1 7 5 0
Sustainable FutureJO MILLAR PROVIDES AN UPDATE ON SUSTAINABLE FUTURE, THE NEW
SUSTAINABILITY STRATEGY LAUNCHED IN 2018.
Words: Jo Millar
9 3 F I N L AY S 1 7 5 0
Finlays SUSTAINABILITY
Land Stewardship
Integrated Landscapes
Target: to protect and enhance 100,000 hectares of natural forest.
Climate change can be mitigated by preserving and enhancing
climatic regulators such as forests which can sustain
communities and agriculture by creating micro-climates,
regulating temperature and rainfall, enhancing biodiversity and
natural pest and disease management, particularly important
as tea and coffee are inherently forest crops.
For several years Finlays, in collaboration with The Sustainable
Trade Initiative (IDH) and the Initiative for Sustainable
Landscapes (ISLA), has been working to mitigate the
degradation of Kenya’s South West Mau Forest through forest
and water conservation, renewable energy and the provision
of alternative livelihoods for local communities. In Sri Lanka
and Argentina, we plan to protect and enhance green corridors
including creating links with Sri Lanka’s Sinharaja UNESCO
world heritage forest. Increased protection will also be given
to watersheds by rehabilitating water courses with indigenous
flora species.
Target: to reduce agrochemical usage by 50%.
Pressure on agricultural land is increasing whilst landscapes
are changing. Good agricultural practices and sustaining the
land is vital to the tea and coffee sector. The cultivation of
these crops has been undertaken for hundreds of years; by
embracing good practice we will ensure that this can continue
for hundreds more. Being good land stewards requires us to
look after soil health and nutrition, water security and crop
management whilst reducing the use of agrochemicals.
Low amounts of plant protection products are used in the
cultivation of tea and coffee, but we aim to reduce this further
by focusing on soil health, natural pest management and weed
control. We are also looking at different ideas for groundcover,
linking to biodiversity for natural pest management and
engaging with the local concepts of ‘friendly weeds’ and organic
matter. Our own produced tea is 100% Rainforest Alliance (RA)
certified, whilst our operations are also RA chain of custody
certified. Where possible we always source certified products
and look beyond certification to ensure our sustainability
objectives and best practices have been adopted by third party
suppliers.
In bringing the best from bush to cup, we aim to create a truly sustainable future which is good for business, people, communities and the environment.
In support of this vision, Finlays launched a new sustainability
strategy, ‘Sustainable Future’ in 2018. This identified six
strategic sustainability objectives and targets which we aim to
achieve by 2022.
There remains work to be done to ensure we meet these
targets but as explained we are optimistic that they will be
achieved and thus ensure our participation in the tea, coffee
and botanicals industry for hundreds of years to come.
9 5 F I N L AY S 1 7 5 0
Finlays SUSTAINABILITY
Our People
Sustainable Supply
Empowered Communities
Low Impact Operations
Target: to create a positive impact in the communities within which we operate.
Finlays aim to be good neighbours and active participants
within local communities. We commit to empowering local
communities by acting as a catalyst for positive change in the
regions where we have operations.
Rather than relying on outside agencies, we believe that
communities should be empowered to make their own
improvements by taking and voicing their own decisions on
how these might be achieved. Throughout our businesses we
are working with many communities on projects which have a
positive and sustainable impact.
Water is as fundamental to communities as it is to agriculture;
we have projects in Kenya, Sri Lanka and Argentina designed
to improve and extend water supplies. Other projects are
planned to improve health and well-being through a series of
programmes covering nutrition, the provision of cookstoves,
social worker councils, volunteerism, training and education.
Target: to year on year reduce our environmental impact throughout our operations.
Managing and reducing the environmental impact of our
businesses is not only good for the environment but has
economic benefits too. To achieve this, we aim to reduce
resource consumption and waste production by moving
towards low-carbon products and services and participating in
circular economies.
Our vision is one of a business that is environmentally
sustainable, socially just and financially viable.
Increasingly, local environmental legislation and resource
constraints, require a reduction in non-renewable emissions
and pollutants and finding ways to reduce the demand for
energy and water.
Finlays is conducting energy audits to identify ways to maximise
renewable energy production and consumption by increasing
our investment in and use of, solar, hydro and biogas energy.
Our businesses aim to continuously improve the way in which
they deal with waste, water, energy and carbon.
Target: to increase participation of women in management to 30%.
Our employees are at the heart of our business. Finlays
is committed to being an employer that demonstrates
opportunity, fairness and equality, providing an inspiring,
fulfilling and adaptable workplace. Ensuring our employees
are safe and healthy in the workplace is important and is
demonstrated through our ‘Always Safe’ programme.
We value diversity and inclusion. Globally, gender inequality in
the workplace is a complex issue. Traditionally there has been
a lack of women in management roles within the tea industry.
In Kenya, we have a Gender Equality and Diversity Policy in
place, with a number of equality programmes being run to
increase the role of women within our industry. With these
initiatives we are already making great progress towards
achieving our target.
Target: to have 100% traceable, transparent supply to internationally accepted standards on tea and coffee.
Markets, customers and consumers are increasingly demanding
more information about the environmental and social impacts
of the products and services they use. This means being closer
to value and supply chains and increases the importance of
traceability and transparency.
We are mapping our suppliers and introducing a sustainable
supplier policy. Finlays has many valued long-term relationships
with suppliers, many of whom have been connected to the
Company for more than 30 years. Being transparent allows
us to take a fresh look at our supply chains to see where
improvements can be made. We work with our suppliers to
share best practice, within the industry.
9 7 F I N L AY S 1 7 5 0
Finlays NEWSROUND
Casa Fuentes’ Acaragua, Campo Grande & Italia facilities receive FSC22000 certification
After much hard work by Erika Bohaczenko, the Casa
Fuentes’ Quality Manager and members of her team Finlays
have achieved FSC22000 certification, the first and only
tea producer in Argentina to meet this prestigious global
standard. The team focused on three key areas highlighted by
the certification body as part of their pre-audit in March 2018:
the improvement in the condition of the Company’s buildings,
implementation of a cultural change in working practices, and
the development of a quality management system.
Finlays' win prestigious health & safety award
Julian Davies, previously Director of Corporate Affairs (3rd
from left) and Mike Keating, Group Head of Health and
Safety (4th from left), collected first prize for the Company’s
Zero Harm strategy and ‘Always Safe’ initiative at the 2018
Institution of Occupational Safety and Health (IOSH) Food and
Drink Manufacturing Health and Safety Awards. IOSH are the
largest organisation for health and safety professionals in the
world, and Finlays beat stiff competition to claim the award.
Whilst Julian and Mike collected the trophy (and enjoyed a
gala dinner), they made sure everyone was aware that they
were collecting this on behalf of all Finlays Always Safe Team,
who comprise representatives from all Finlays' businesses,
and who were really responsible for delivering the successes
achieved in 2018 – recognition for a great team doing a great
job in a great company!
Happy & healthy
All Finlays businesses have health and wellbeing as one of their
2019 objectives; from healthy eating and physical exercise to
mindfulness. Mike Keating, Group Health & Safety Manager
explains “our aim is for everyone, everywhere, to be happy
and healthy, both at work and at home. We are encouraging
all employees to be innovative - even the smallest of changes
can make a big difference!”
Cultural week in Damin sees sporting fun
Damin, a Finlays' Joint Venture held its 17th Cultural Week
in January 2019. The week saw colleagues taking part in
a range of activities including basketball, badminton, a
math’s competition, and karaoke. Cultural Week encourages
participation in a range of team events and brings a celebratory
end to a year of hard work whilst setting the scene for the
year ahead.
Indonesian tea to CIS & Ukraine
In an effort to increase tea sales from Indonesia to Ukraine
and other CIS countries, Finlays welcomed buyers from
Ukraine on a visit to Jakarta. Okeu Putra, Leaf Administration
Assistant, based in Finlays Jakarta office, and Andrey Kraynev,
Head of Commercial in Dubai, accompanied two buyers from
Monomakh, one of the leading tea packers in Ukraine. Also
joining was a representative from Tytraid, the speciality tea
import division of the Ukrainian brand ‘Tea House’. The group
visited tea auctions, tea and coffee gardens and potential
producers and suppliers. Companies visited included Malabar,
part of PTPN, a government owned tea facility in East Java;
and Chakra, a privately-owned company based near Bandung
with whom Finlays work to supply teas to Starbucks.
9 9 F I N L AY S 1 7 5 0
Global Land Stewardship Forum meets in Sri Lanka
Finlays Global Land Stewardship Forum brings together
agronomists, technical experts, estate and sustainability
managers to share and develop good agricultural practice
ideas. The forum supports one of the Company’s six
Sustainable Strategic Objectives, Land Stewardship which
recognises that good land management is essential for long-
term environmental, economic and sustainable success with
Finlays committed to a 50% reduction in agrochemical use by
2022.
In February 2019 representatives from Sri Lanka, Kenya,
Argentina and the UK, all with a wealth of experience, met
for an inaugural meeting at Passara, in the Badulla District,
of Sri Lanka’s Uva Province before visiting a number of the
country’s other tea growing regions (bottom photo).
Sri Lanka provided the perfect backdrop to discuss all things
agronomy and agricultural best practice as tea growing
takes place amidst a unique and diverse combination of
differing elevations and growing conditions. Discussions
and field visits focused on sharing experiences, and best
practice covering integrated pest management, soil and
water conservation and the technical skills essential for long-
term environmental, economic and sustainable success. To
recognise the importance of the event participants held an
indigenous tree planting ceremony along the banks of the lake
used for water harvesting at Bibile Estate.
Finlays Charitable Trust Awards
The Finlays Charitable Trust (FCT) is funded by James
Finlay (Kenya) to provide secondary school and university
scholarships for children of the Company’s employees and
students drawn from the local Bomet and Kericho counties.
This year the FCT awarded 20 scholarships, each worth $500
per annum for the four years each of the successful students
will spend in secondary school. During an awards ceremony,
which took place in December 2018, FCT Chairman and HR
Director Kenya, Daniel Kirui spoke of the importance of
education and urged parents to support their children and
view secondary school education as the platform for the
launch of successful careers.
University scholarships were awarded to 28 students drawn
from Bomet and Kericho Counties. Worth over Kshs. 12
million, the scholarships benefit at least two students from
each of the 11 constituencies in the two counties with the
students also receiving a new laptop.
An awards ceremony (top photo) took place in Bomet town
presided over by Bomet County Governor, Dr Joyce Laboso
and Daniel Kirui. Speaking at the event, the Governor thanked
Finlays for supplementing the county government’s efforts to
improve the education opportunities for the counties’ young
people. For his part Daniel Kirui acknowledged the cooperation
between the Company and the County Governments and
looked forwarded to continuing these partnerships in the
future.
Finlays NEWSROUND
1 0 1 F I N L AY S 1 7 5 0
Finlays NEWSROUND
Kenya - Women in leadership
During 2018 James Finlay (Kenya) (JFK) and the Kenya Institute
of Management launched a Women Future Programme for
women in senior management. The Programme recognises
the role of women in society as well as the visible and
invisible impediments they face when aspiring to senior
management positions. Over nine months the course aims to
develop leadership skills through self-discovery, case studies,
mentorship and networking. (Above) Catherine Kivai, JFK
Finance Director, an exemplar of the opportunities for women.
Sri Lanka - Improving productivity
Rookatenne Estate was the venue for a training programme
designed to improve tea plucking productivity. Facilitated by
the Tea Research Institute of Sri Lanka over 100 participants
took part including estate executives, field staff and
harvesters.
James Finlay Kenya marks Primary Schools Academic Day
James Finlay Kenya (JFK) marked primary schools’ academic
day on 15 February 2019 at the AHP Workshop Primary School.
This is an annual event which celebrates the best performing
primary schools amongst the 14 located within JFK. In the
public schools’ category, AHP Workshop Primary School
emerged as the winner in Belgut Sub – County and second
overall in Kericho County. The school also had the second-
best student in Kericho County with a score of 433 marks out
of the possible 500. Guests included JFK’s Human Resource
Director Daniel Kirui. Bernard Korir – Education Officer Saosa
Zone, Konoin Sub – County and Charles Anyika - Sub county
Director of Education from Belgut Sub –County.
Ramping up production in Colombo
Finlays Colombo has increased its capacity for staple-less
teabag production following the installation of two new tea
bagging machines. The Colombo team can now take orders
for staple-less tea bags in any type of heat-sealed envelopes
or, if required, tea bags without envelopes. The new machines
are manufactured by the Italian equipment supplier IMA with
whom Finlays Colombo has had a 40-year long partnership.
Ahead of commissioning Sapumal de Alwis Factory Engineer,
and Hirosh Sugathpriya, Senior Technician visited IMA’s
factory in Bologna, for training and to carry out factory
acceptance trials.
Sri Lanka - Social Dialog awards
Finlays Tea Estates Sri Lanka won no less than eight awards
in the coveted island-wide competition organised by the
Department of Labour to recognise work done to improve
relations between employers and employees, government
agencies, unions and civil society. For the third consecutive
year, Finlays won awards for communications, promoting
trust and cooperation, and for facilitating communication with
trade unions, personnel and employers. This was achieved by
holding workshops and training events on hygiene, sanitation,
water conservation, waste management, micro-finance, and
family harmony.
1 0 3 F I N L AY S 1 7 5 0
New APPOINTMENTS
The following senior appointments have been made in
recent months.
Group
Trevor Cowley: Principal Scientist, Processing Research
Kamini Dickie: Group Head of Marketing & Communications
Rhodri Evans: Group Head of Scientific & Regulatory Affairs
Avgoustinos Galiassos: Group Product Manager
Steve Hadfield: Group Business Intelligence & Data Manager
Jenny Yao Harrison: Group Head of Supply Chain
Youngmok Kim: Principal Scientist, Analytical Science
Nigel McGinn: Head of Group Projects
Richard Mose: Group Head of Agricultural Science
Greg Stock: Group Head of Engineering
Subathra Vaidhiyanathan: Group Head of Sustainability
Ben Woolf: Group Director Corporate Affairs
Maya Zuniga: Group Head of Applications
Americas
Michele Abo: Chief Executive Officer - Finlay Extracts and
Ingredients USA
Mozaffar Armand: IT Director - Finlay Extracts and
Ingredients USA
Julian Davies: Vice President, Operations – Finlay Extracts
and Ingredients USA
Gayle Desmuke: Human Resources Director - Aspen
Beverage Group USA
Claudio Fuentes: Operations Director - Casa Fuentes,
Argentina
Florencia Sosa: Financial Controller- Casa Fuentes, Argentina
UK and Europe
Alun Jones: Technical Manager – Finlay Beverages
Simon Kelly: Factory Manager – Finlay Beverages
MEAC
Wesley Bosuben: General Manager - Tea Estates, Kenya
Caroline Migiro: Business Development Manager MEAC Region
Asia
Priya Gunawardene: Director of Operations – Tea Estates,
Sri Lanka
Gihan Jayasinghe: Country Head, Sri Lanka and Deputy
Chairman - Finlays Colombo
Pradeep Jayasuriya: Head of Commercial and Administration
– Finlays Colombo
Ranil Kapugeekiyana: Director of Operations – Tea Estates,
Sri Lanka
Lucy Liu: Human Resources Director - China
Gayanthika Pathirannehe: Head of Human Resources – Finlays
Colombo and Finlays Tea Estates, Sri Lanka
Regina Mutai Rono (Assistant Research Manager)
and Raymond Rono (Experimental Clerk),
Applied Research Department, James Finlay Kenya
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Tea-volutionDUNCAN GILMOUR EXPLAINS HOW FINLAYS BECAME A KEY PLAYER IN
RESPONSE TO THE EVER-INCREASING DEMAND FOR TEA.
Words: Duncan Gilmour Images: Finlays archive
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‘1872 saw Finlay Muir’s first recorded involvement with Indian tea when 80 chests were shipped to New York.’
Thirty years after Kirkman’s death, the Company took its first
tentative steps into the rapidly growing Indian tea business
thanks to the vision of John Muir. Muir was made a junior partner
in 1861 before becoming the sole proprietary partner in 1883.
He was instrumental in opening a branch in Calcutta (Kolkata) in
1870, initially centred on the disposal of piece goods. Styled as
Finlay Muir & Co., the branch soon added agencies for a range of
British companies either exporting to, or with businesses in, India.
1872 saw Finlay Muir’s first recorded involvement with Indian tea
when 80 chests were shipped to New York. In the following year
the branch became agents for the Nonoi and Sootea tea estates.
By 1881 the Company had amassed 16 agencies including the
Chubwa Company, one of whose estates was, and still is, the
oldest in India. At this time most tea estates were owned and
Finlays' early involvement with China tea appears to have ended
by the time of Kirkman Finlay’s death in 1842. As the son of
the eponymous founder, Kirkman had been instrumental in
breaking the monopoly of the East India Company and opening
up trade with both India and China. Finlays may have given up
on China but not so John Swire & Sons, its current shareholder.
During the second half of the 19th century Swires traded tea at
various times between China, the UK, America, and Australia. In
addition, it established a Tea Improvement Company in Fuzhou
in the late 1890s to machine process local teas. The tea ventures
were not conspicuously successful and paled in comparison to
some of Swire’s other businesses such as shipping, namely China
Navigation, which continues to this day.
>>
Group of estate workers in South India with George Cole sitting, circa early 1900s.
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‘An early example of of the Group’s current “bush to cup” philosophy, this was to be achieved by the establishment of distribution businesses in each
of the world’s principal tea-drinking countries.’
or managed by a band of hardy pioneers. In the case of Sootea,
one of its proprietors lived in the jungle for three years after
being outlawed by the Government and before leaving India with
a train of ten children and two ayahs!
John Muir saw the opportunity to cultivate tea on a large scale and
had the finance necessary to put his ideas into practice Working
with a number of talented agriculturists and traders including
P. R .Buchanan and Thomas McMeekin, whose businesses were
eventually to become part of the Group, John Muir floated two
large tea companies on the Glasgow Stock Exchange in 1882, The
North Sylhet and The South Sylhet tea companies. In addition to
developing tea in Sylhet, in what is now Bangladesh, over the next
15 years these companies acquired interests in other estates in
Assam, the Dooars, Darjeeling, North Travancore and Ceylon. In
1896 and 1897 Muir rationalised the Company’s now significant
tea interests by grouping them into what were effectively four
holdings companies with shares being offered to the public as
part of a stock exchange listing. These four companies were to
form the core of the Group’s plantation business until 1976. In
addition to having significant shareholdings, Finlays controlled
and managed these, and other tea interests, both in India and the
UK, by way of agency and secretarial agreements. One company,
The Anglo-American Direct Tea Trading Co., Limited had as one
of its objects, “bringing the consumer into direct contact with
the producer”. An early example of the Group’s current “bush to
cup” philosophy, this was to be achieved by the establishment
of distribution businesses in each of the world’s principal tea
drinking countries. This was only partially successful in North
>>
Sir John Muir Bart.
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‘By the end of the nineteenth century the British Empire had replaced China as the world’s largest producer of tea.’
in just over 40 years. In 1851, when all tea was still coming from
China, tea consumption in Britain was less than 2lb per head
but by the start of the twentieth century, helped by cheaper
imports from the Indian sub-continent, this had risen to over
6lb a head. The great British tea gardens which had done much
to popularise tea in the eighteenth century had all disappeared
by the time London’s famous Vauxhall Gardens finally closed in
1859. Tea remained available in the many coffee houses but from
the 1880s these were beginning to give way to new dedicated tea
rooms. Lyons opened the first of many tea shops in London in
1894 having previously provided catering for big public events
including the Glasgow International Exhibition of 1888 of which
Muir was Vice Chairman and a significant patron.
1896 was a busy year for Muir as he also provided finance to
help establish George Payne & Co Limited (now Finlay Beverages
America where a tea trading company was set up in Canada
which was the forerunner of the current business in Morristown,
New Jersey.
Finlay Muir began buying and trading tea in 1874 and over the
years this became, as it still is, a staple part of the Group’s
business. Carried out from a worldwide network of offices, this
allowed Finlays to become one of the largest traders of tea in the
World. By the end of the nineteenth century the British Empire
was the world’s biggest producer of tea. India was responsible
for 200 Million lbs, 85% of which went to the UK, far outstripping
exports from China; over 500,000 acres of tea had been planted
>>
Nullatanni, South India. The first all-electric tea factory in the world with the new Instant Tea Factory under construction in 1963.
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Limited), a company set up to pack tea and coffee. In 1903
Paynes began packing tea for Sainsbury’s, a contract which
Finlay Beverages still holds as one of their oldest suppliers.
When Muir died in 1903 he had been ennobled as Sir John Muir
and had built Finlays into one of the pre-eminent tea businesses
in the world.
The African Highlands Produce Company (now James Finlay
(Kenya)) was set up in 1925 to acquire 23,000 acres of land in
Kericho, Kenya. This began a pioneering project to develop a
large-scale tea plantation business which, together with a similar
exercise being undertaken by Brooke Bond (Unilever), formed
the basis for the Kenyan tea industry we know today.
Tea is a cyclical business often at the mercy of factors which
are hard, if not impossible, to control. Throughout the twentieth
century the industry experienced periods of “boom and bust”.
During the years of depression between the two world wars,
Finlays were at the forefront of schemes designed to regulate
over production as a way of ensuring the industry’s survival. By
1949 Finlays was the largest tea plantation business in the world
managing over 100,000 acres in India alone.
Following a rationalisation in 1976, political considerations led
to the Company selling its Indian interests in 1982 with the
Bangladesh estates being sold in 2005. In between times Finlays
had a short foray in Uganda where the Company rejuvenated
four neglected tea estates, collectively known as Rwenzori
Highlands. Having disposed of its Sri Lankan estates in 1972
ahead of nationalisation, when the tea industry was returned
to private ownership in 1992, the Company agreed to manage
Hapugastenne Plantations in which it subsequently acquired
an equity stake along with a similar holding in Udapussellawa
Plantations. In 2015 Finlays added another plantation business
to its portfolio with the acquisition of Casa Fuentes in Argentina,
for many years a supplier of tea to the Tres Montes extracts
plant in Chile, the products from which the Company has sole
distribution rights.
In 1954 Finlays first became interested in the manufacture of
instant tea, now known as tea extract, direct from green leaf
and decided to investigate the then unknown possibilities of
this entirely new approach to drinking tea. A pilot plant was
set up on one of the Company’s estates in the Dooars, North
India. After several years of experimental work, the project
was moved to Kenya in 1957 where leaf was available all year
round. Eventually in 1962 it was decided to build a production
sized plant in South India in partnership with Tatas. The factory,
which was situated at Nullatanni, was commissioned in 1964. By
1967 the plant was producing a powder acceptable for the US
market and the Company was faced with the happy problem of
having to find new ways to keep up with demand. This resulted
in ever more advanced factories being built in Kenya and the US
all designed to meet and drive customer demand.
Although Finlays had traded Chinese tea for many years, the
Company’s first major equity investment came in the early
2000s when, a small stake was taken in Damin, the world’s
largest extract manufacturer. This has now grown to just short
of 50% and furthers the Company’s commitment to meeting
customer requirements worldwide.
In response to a growing demand amongst some consumers for
beverages which were caffeine free, Finlays began to investigate
ways of decaffeinating tea in the early 1980s. Although
decaffeination was being carried out in Europe there were no
manufacturers in either the UK or the US. At the instigation of
Richard Muir, the great grandson of Sir John, and Dr Bill Eyton
a suitable site was found in Hull and by 1988 the Company was
manufacturing an acceptable product. Today Finlays Hull is still
the only tea decaffeination plant in the UK.
Whilst the Company’s past success may have been attributed
to the vision and enterprise of leaders such as Sir John Muir,
none of this would have been possible without a number of
industry innovations pioneered by a remarkable cast of very able
planters/agronomists, engineers and scientists all employed,
at one time, by Finlays. Thomas McMeekin, one of the earliest
associates of Sir John Muir, invented a mechanical roller and
a box firing cabinet whilst George Cole another early pioneer
produced a machine designed to crush tea. Although a prototype
was made in the Indian High Range in 1911, it was some years
after the First World War before another Finlay man, Ian McTear,
help turn this into a commercial proposition. Sir John Muir was
an early enthusiast for electricity and, acting on his instructions,
Cole was the first to install electricity into a tea factory following >>
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‘Between them Lindsay and Eyton created an entire instant tea manufacturing process.’
continuous tea production. Over the years much work has been
done in Kenya to improve tea yields by the creation of special
clones suited to the growing conditions in Kericho. In the field
of science Finlay men Chris Harler, Leslie Cox and Bill Eyton
set out solid scientific specifications for ideal tea manufacture
which have been translated into practical applications in
field and factory. Between them Lindsay and Eyton created an
entire instant tea manufacturing process which produced a
commercially successful powder. These are but a sample of the
many innovations for which, over the years, Finlays have been
responsible. Innovation is ongoing and, as explained elsewhere,
the Company continues to be a leading player in the development
of tea in all its many and varied forms.
the construction of several hydro schemes in South India. Another
of Cole’s High Range successes was the gravity activated grip for
the trolleys attached to the cable-ways which transported tea and
stores to and from the plains, a concept now used on ski lifts.
McTear joined the Tocklai Research Station in the 1950s where
he helped design a system of continuous manufacture to replace
the batch process then in place. This resulted in the development
of a number of tea machines, including the Rotorvane, all
designed for continuous manufacture. William (Bill) Lindsay was
another man to leave his mark with the invention of his Lindsay
Fermenter which was patented and added to the development of
>>
Interior of the Power House on Pullivassal Estate, South India circa early 1904.
References: A brief history of tea – Roy Moxham and Finlays Magazine and
the Company’s historic archives in the University of Glasgow.
Finlays SPOTLIGHT
Liu Renjun (LRJ) QA Manager, James Finlay Guizhou
What is making Finlays’ commitment to providing the finest
quality tea from Guizhou province possible is a cadre of young
Chinese tea science graduates steeped with a passion for the
beverage. Amongst them is Liu Renjun, better known as LRJ,
given the ubiquity of the Liu name in the region. He’s the Quality
Assurance Manager at James Finlay Guizhou. He graduated in
2014 from the Zhangzhou Science and Technology Vocational
and Technical College – formerly and better known as the
Tianfu Tea College. By the end of 2016 LRJ was named one of
the top 10 technicians in Guizhou province. And in early 2017
he joined James Finlay Guizhou.
His day-to-day routine involves working with the region’s tea
growers, showing them how to optimise their plantings and
production. It’s also about educating them as to how to meet
the requirements of Finlays’ processes and their customers. It’s
ensuring that the international quality standard set by James
Finlay is met, says LRJ, “that is the biggest challenge for me.”
He’s also involved in ensuring traceability, documenting the tea’s
movements through the production process. He emphasises
that, “It’s very important, very critical for the traceability to be
established from the very beginning to the customer.”
And in all of this LRJ brings an enthusiastic passion combined
with a certain sense of wry humour, “because making tea for me
is very enjoyable work. We have interesting work to do and we
even have tea to drink. Wow, that’s a wonderful life!”
T R A D I T I O N M E E T S I N N O V A T I O N