Sri Lanka Bogawantalawa Tea starts distribution network

Aug 06, 2009 (LBO) - Sri Lankan tea growing and marketing company Bogawantalawa Tea Estates said it has launched its own distribution channel in the local market.
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Most Sri Lankan tea producers sell their teas through the Colombo auctions but several firms are trying to establish their own brands and sell direct to consumers, cutting out middlemen.
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A regional plantations company that made a success of direct marketing earlier is Watawala Plantations, a unit of India's Tata Tea.

Watawala's efforts to build its Zesta brand helped it capture market share and move up from being a mere commodity producer. The company's Head of Local Marketing Nishantha Rajapakse said in a statement that their previous operations had been confined to a production role and limited distribution through other distributing companies.

The new island-wide distributor network would help increases sales in the domestic market, he said.

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Bogawatalawa Tea Estates chief executive Sarath Fernado said the firm manages 14 estates on 8,000 hectares at elevations of 3,000-5,000 feet.

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The company also sells tea, including iced teas, in the United States.

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