By: Staff Writer
December 24, Colombo (LNW): Sri Lanka’s Browns Investments PLC has significantly expanded its global presence in the tea industry by acquiring Lipton’s operations in Africa.
The acquisition, finalized on December 20, 2024, through its fully owned subsidiary, B Commodities ME FZE, based in the UAE, involved the purchase of 100% shares in Lipton Teas and Infusions Tanzania Limited.
This move marks a key milestone in Browns’ strategy to strengthen its position in the global tea market.
The acquisition was initially delayed due to the pending approval from Tanzania’s Fair Competition Commission but was successfully completed by the end of 2024.
Browns had previously signed an agreement in May 2024 with Ekaterra Holdco UK Limited, along with Netherlands-based entities Ekaterra Group Holdings BV and Ekaterra Group Holdings 2 BV, to acquire Lipton’s African operations.
By the end of the year, Browns had secured Lipton’s tea businesses in Kenya, Rwanda, and Tanzania. These operations collectively produce around 87 million kilograms of tea annually, making Browns one of the world’s largest tea producers and a key supplier to Lipton Teas and Infusions.
This acquisition is part of a broader strategic partnership with Lipton Teas and Infusions, a newly formed entity following Unilever’s sale of the majority of its global tea business to CVC Capital Partners in July 2022. Lipton Teas and Infusions now manages the iconic Lipton brand and oversees its global operations, focusing on sustainable practices and growth.
Browns Investments is committed to enhancing the global tea industry by implementing responsible farming practices and adhering to stringent quality standards. By 2025, all tea produced under this partnership will meet enhanced standards that emphasize quality, environmental sustainability, and social responsibility.
This commitment highlights Browns’ dedication to ethical production practices and environmental stewardship.
A key component of this partnership is its focus on community development. To support local communities connected to the tea estates, a Community Welfare Trust has been established with an initial fund of one billion Kenyan shillings.
Additionally, 15% of shares in Browns’ primary Kenyan operating company will be offered to local communities in Kericho and Bomet at a discounted rate, fostering greater economic equity and participation.
The history of the Lipton brand dates back to the late 19th century when Scottish entrepreneur Sir Thomas Lipton revolutionized the tea industry by acquiring tea estates in Ceylon (now Sri Lanka) and selling tea directly to consumers, eliminating middlemen.
His innovative approach, including the slogan “Direct from the garden to the teapot,” helped make Lipton a household name. Among his notable ventures was the establishment of the Dambatenne Tea Factory in 1890, which remains operational today and symbolizes Lipton’s deep-rooted connection to Sri Lanka.
In the decades following its founding, Lipton underwent significant changes. In 1929, Lipton merged with other companies to form Allied Suppliers, which was later acquired by Unilever in 1972.
Under Unilever, Lipton grew into one of the world’s leading tea brands. However, in 2021, Unilever announced it would sell the majority of its tea business to CVC Capital Partners, resulting in the creation of Lipton Teas and Infusions in July 2022. This new entity continues to manage the Lipton brand in most global markets.
Sri Lanka remains an important part of Lipton’s legacy, despite no longer owning plantations in the country. The Dambatenne Tea Factory and Lipton’s Seat near Haputale serve as popular tourist destinations, offering insights into the brand’s history and its significant role in Sri Lanka’s tea industry.
Today, Lipton Teas and Infusions is a leading player in the global tea market, offering a diverse range of products across retail, food service, and online platforms. The brand continues to prioritize sustainability, innovation, and community engagement, ensuring its ongoing relevance in the global marketplace.
As Browns Investments takes charge of Lipton’s African operations, the partnership sets a new standard for sustainable tea production and community development. By combining Browns’ strategic vision with Lipton’s established global reputation, this collaboration is poised to shape the future of the tea industry while honoring its rich heritage.
