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Shanghai market to sip Ceylon tea
6/7/2005 17:13

Jane Chen / Shanghai Daily news

In one month, people may be able to sip a cup of Mabroc Ceylon tea at some of city's top-tier hotels, as Sri Lanka, the world's largest tea exporter, is testing the waters of China, the world's biggest tea consumer.
Mabroc signed yesterday with Shanghai Lanzhu International Trade Co Ltd to have the local firm as its general agent in China, establishing a foothold for its entry.
Sri Lanka is optimistic about their top Ceylon tea, which has been called the champagne of red tea, and enjoys the status of Dragon Well (Longjin) in green tea.
Its Shanghai agent shares this rosy outlook, as the vice general manager Lu Peihua said the first supply of the tea would arrive in one month.
The company is in talks with some five-star and four-star hotels to enter the top-tier hotel market, Lu said.  It will also open a specialty counter at the Shanghai First Food Store.  Foreigners and employees of overseas firms are the target customers.
As well, the firm is in contact with other fast-food restaurants and cafes such as Kentucky Fried Chicken, Lu added.
Industry insiders view US-based Lipton tea as the biggest rival for newcomer Mabroc in China's red tea market.
"Mabroc's sales model is similar to the one adopted by Lipton on its arrival in Shanghai," said Liu Qigui, secretary general with the Shanghai Tea Institute.  He advised that better marketing would be the key to Mabroc's success to break into Lipton's domination of the market.
The chances of success are large, however, he added, betting on the Ceylon tea's unique fragrance and reasonable prices. 
The prices of imported Mabroc tea may be slightly higher than domestically produced Lipton drinks, Lu expected.
Sri Lankan data indicates the country is increasing its tea exports to China.  The volume, which was 172 tons in 2003, jumped to 473 tons in 2004.  This year the figure is expected to reach 600 tons.
Sri Lankan tea officials estimated China would grow to become 30th on its list of tea importers in 2008, up from their current 43rd spot.
They plan to promote the red tea at the two international events:  the 2008 Beijing Olympics, and the 2010 Shanghai Expo.
According to Liu, red tea has the fourth biggest share of Shanghai's tea market.