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.

magazine@finlays.net

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