pills

Consumer DECODED

Previous edition: 09 May 2024
Share article

Get the full version straight to your inbox.
Exclusive access to our best-in-class data & intelligence
Subscribe now

Lipton offloads tea estates in Kenya, Rwanda, Tanzania to Browns

Lipton Teas and Infusions has handed off its tea estates in Kenya, Rwanda, and Tanzania to Sri Lanka-based peer Browns Investment.

The deal, struck for an undisclosed sum, will make Browns "the world's leading tea exporter", a joint statement read. It will also be one of the largest suppliers to Lipton.

The closure of the transaction, which includes the Kericho plantation in Kenya that has been at the centre of historical violence and human-rights issues, is subject to regulatory approval.

All tea sold by Browns – which, after the deal, is set to export around 87,000 tonnes a year – will be "grown and harvested to a new set of standards covering quality, social and environmental protections". Further details were not disclosed.

A tranche of shares equating to around 15% of the main Kenyan operating company will be offered to communities in Kericho and Bomet, where the estates are located.

Brown will also invest in its estates in Kenya and Sri Lanka to meet the new standards by 2025. The investment will include the modernisation of factories in the country, crop diversification, and support of biodiversity.

Natalia Roos, Lipton Teas and Infusions' CEO, said: “Browns is the perfect partner, with the credibility, capabilities and scale to work with us to raise standards in the whole tea industry. The team’s commitment to sustainability and community development aligns with our own.”

Kamantha Amarasekera, chief executive director at Browns Investment, added: “This partnership marks a significant step towards elevating the industry as a whole, while also ensuring a positive impact on the livelihoods of the communities we serve.”

The two companies are also jointly creating a Community Welfare Trust with Ks1bn ($7.6m) “dedicated to helping address the needs of local and neighbouring communities”.

Lipton Teas and Infusions is the former Unilever tea and herbal drinks business, known as Ekaterra when private-equity firm CVC Capital Partners acquired the assets from the FMCG group three years ago.

Latest news

Reining in the punks: What BrewDog's new CEO means for the UK brewer

Just Drinks looks at James Watt’s legacy and what incoming CEO James Arrow could bring to the table.

The road to net zero - the emissions targets of the world's drinks giants

Our rolling guide to the net-zero emission commitments of the world’s largest drinks manufacturers.

Constellation Brands snaps up California winery Sea Smoke

Constellation Brands has struck a deal to acquire California winery Sea Smoke as the US giant looks to focus on "higher-end wine".

Australian Vintage prematurely ends lease for Balranald vineyard

Australian Vintage has decided to end the lease for its Balranald Vineyard seven years before it was due to expire.

B&G Foods plans asset sale, cuts sales, profit forecasts

US manufacturer B&G Foods is considering divesting its frozen and canned vegetable businesses.

Beyond Meat to push health credentials in bid to boost volumes

US plant-based meat business Beyond Meat is hoping that promoting the health credentials of its new Beyond IV product will help repair a decline in volumes.

Hain Celestial pitches organic growth outlook into negative territory

Hain Celestial has slashed its organic growth target just days after the US food company revealed further portfolio simplification measures.

The 26th Annual International Beer Strategies Conference 2024

The conference is set to delve into a variety of themes that are integral to the aviation industry's operations.

The 26th Annual International Beer Strategies Conference 2024

Explore brewery trends, innovation, and discuss key challenges at a 2-day event with leaders like Brewdog, Asahi, and Diageo for valuable insights.

Register Now

Newsletters in other sectors

Aerospace, Defence & Security

UAE enhances defence arsenal with HARM missile upgrade
09 May 2024

Explore our market-leading Intelligence Centers

Still looking?

Search companies, themes, reports, as well as actionable data & insights spanning 22 global industries

Explorer

Access more premium companies when you subscribe to Explorer