Not all days are alike. “Some days bring sunshine, while others, like yesterday, bring rain,” muses Dilhan C. Fernando, Chairman & CEO of Dilmah Ceylon Tea PLC and self-confessed obsessive about the quality and integrity of his teas. It’s mid-monsoon season back in his native Sri Lanka, making the weather on this small Indian Ocean island particularly capricious. Today, however, is special.
Dilhan, whose name, combined with his brother Malik’s, forms the moniker of the tea company their father founded in 1988, Dilmah Ceylon Tea, is here for a momentous occasion. Accompanied by Roshan, Dilmah Ceylon Tea’s Global Sales Director, he’s about to sign a major partnership agreement with Ha Nguyen, the founder of Annam Group. This partnership marks the culmination of years of fruitful collaboration.
“So what I drink in the morning depends on the weather that day,” Dilhan continues. “When you wake up and it’s a bit wet and cold, dark and cloudy you want a tea that’s bright. A pick me up.”
“But then, when you wake up one day and it’s bright and shining, and it’s warm, you want something that’s softer. So, for me, I can’t say I have a go-to every day, but I do have teas that relate to the weather.”
A New Era Is Brewing
Dilmah Ceylon Tea and Annam Group are planning a bright and shining future together too, not that they’ve rushed into this partnership.
When we first started distributing to Vietnam, 25 years ago, we had small shipments coming in. We’d go to Dien Bien Phu Street and drink Dilmah strawberry tea. Then, over time, our brand became very big – serving a thousand and more cafes here in Vietnam.”
Despite their growth – Dilmah Ceylon Tea PLC is one of the most recognized and widely available teas across Asia and beyond – they’ve always built purposefully under visionary father, Merrill J. Fernando, and now Dilhan’s leadership.
Merrill founded Dilmah with a determination to change the tea industry. Opposed to the common practice of exporting Ceylon tea in bulk for foreign blending, Fernando created the first producer-owned tea brand. Dilmah offered single-origin teas directly to consumers. This approach aimed to maintain tea quality, keep profits in Sri Lanka, and support local communities. And Fernando’s vision revolutionized the industry and set a new standard for ethical, sustainable tea production.
“Of course, we’re a Sri Lankan brand at heart. But, beyond that, is a commitment and responsibility to the legacy of my father. In 1950, he was more than a century ahead of his time in declaring, “any business must serve humanity,” Dilhan nods.
“Partly because he grew up under my grandmother’s guidance – who was a very kind and warm-hearted woman – the same generosity was instilled in him,” he adds. “He was sure that by building a business on kindness good things would inevitably follow, and that’s come true.”
So, when Dilmah Ceylon Tea grew in size, in places like Vietnam, and everyone was telling him to cut his costs to make quick profits they doubled-down on quality and consistency. “One of my father’s close friends always reminded us that integrity is like a pane of glass and once it’s broken you can try to mend it but you can never hide the cracks.”
“While we respect our past, adaptation is crucial”
The tea industry and consumer preferences have evolved significantly over the lifespan of both the Dilmah Ceylon Tea PLC and Annam Group companies. “While we respect our past, adaptation is crucial,” Roshan notes.
The trio concurs that tea has always been a life-giving elixir, with recent events like the pandemic and the shift towards healthier beverages reaffirming its benefits.
And Dilhan helps elaborate a little, “Tea was initially discovered as medicine. Though it has evolved into a beverage, it still offers protection against stress, heart disease, and dementia, as evidenced by some 22,000 research papers.”
Ha agrees, emphasizing the growing demand for quality in Vietnam, “Even consumers with lower incomes now prioritize higher-quality products.”
She adds, “While the younger generation in Saigon may add modern twists like milk or yogurt to their tea, it remains an integral part of our culture, consumed from dawn till midnight.” This blend of tradition and innovation underscores tea’s enduring appeal and adaptability in the face of changing consumer habits.
Family, Flavor, Future
So, full of agreement on so many topics – including the restorative properties of tea – Ha Nguyen’s Annam Group makes logical long-term partners for Dilmah Ceylon Tea PLC. Founded in 2007, the group emerged as a response to Vietnam’s growing demand for high-quality imported foods and beverages. Starting with a single gourmet store in Ho Chi Minh City, Annam rapidly expanded to become a leading premium food retailer in Vietnam. The company’s name, Annam, reflects Vietnam’s historical identity.
“Annam Group and Dilmah Ceylon Tea are both family businesses at heart,” Ha explains. “So, at the end of the year our reflections and plans don’t only revolve around our profits. We consider our passion and commitment that we’ve put in too.”
She’s a committed tea drinker, too. “I always love green tea every day. But I change my preference from time to time. Like Dilhan, I often observe the weather. When I see the blue sky, my happiness increases and I add something to my green tea, maybe lemongrass or ginger or star anise. In the afternoons, I go for herb tea, or other infusions. I think tea is wonderful, and it can be delightful and full of interest.”
“What we understood from Annam Group was that we recognized it’s easy to compromise – that’s the easy way today, go cheap, discount, go hard. To maintain quality is a different mindset: you have to train people and build a brand. So, with a synergy that we can look at doing many things together – from charitable partnerships, gastronomy and mixology, tea lounges. The shared commitment to quality and integrity is the foundation of that,” Dilhan shares.
Keeping Up Sky-High Tea Standards
Curiosity piqued, we inquire about Dilhan’s tea choice before our meeting. He responds with a wry smile, “Given my early morning flight from Singapore, I actually opted for ginger with honey – one of our teas served on Singapore Airlines. I’m quite particular about my brew. In fact, I’ve been known to politely decline a poorly prepared cup and brew it myself in the airplane galley.” He chuckles softly before adding, “Thankfully, today’s was expertly brewed.” Proving that even at 30,000 feet, his obsession for a good brew remains.
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