There's nothing quite like the comforting warmth of a steaming cup of tea to start your day, and for many of us, the perfect blend is crucial. But what happens when your favourite tea brand is in jeopardy of disappearing from the shelves?

In Australia, tea drinkers may soon have to say goodbye to one of their beloved brands as a bitter price dispute between Dilmah Tea and supermarket giants Coles and Woolworths heats up.

Apparently, the manufacturers of the high-quality, single-origin Ceylon tea bags that many Aussies have grown to love are refusing to give in to the supermarkets' demands for discounts.

Dilhan Fernando, the CEO of Dilmah Tea, has stated that the supermarkets are putting the future of their partnership at risk by refusing to pay a premium for the superior quality of their tea.

If negotiations fail, Dilmah may have no choice but to stop supplying its tea to Australian grocery chains, leaving tea lovers across the country in the lurch.

A beloved tea brand could soon be leaving the shelves of Coles and Woolworths. Credit: Unsplash/Max Chen.

Despite its worldwide reputation as the 10th biggest tea brand, Dilmah is facing significant difficulties in the Australian market. The company has not recorded a profit in Australia since 2009, and its market share is steadily declining. In the past five years alone, sales in the country have plummeted from $37 million to just $29 million.

Mr Fernando has publicly criticised Australian supermarkets, citing their 'unfair trading system' as a significant obstacle to his company's success. He believes that producers need to be fairly compensated for their products to enable them to maintain their commitment to quality.

'The producer needs to be empowered to offer a product with passion where corners are not cut. That can only happen when there is a fair price paid for the product,' Mr Fernando stated in an interview with The Australian.

'Consumers are looking for quality. But the directions we are being pushed in are an abandonment of this… It is crazy. We are being forced to chase our tail to deliver the next big thing when what we have in our hands is so substantial.'

Dilmah Tea, with its presence in over 100 countries worldwide, has been a household name in Australian supermarkets since its first deal with Coles in 1988. However, the company's commitment to sustainability and ethical sourcing has put them at odds with major Australian supermarkets, who are looking for cheaper deals.

Despite this, Mr Fernando, whose father established the company, is refusing to compromise on the quality and single-origin nature of their products in order to provide a lower price.

The company's unwavering commitment to their values has earned them a loyal following of consumers who appreciate their focus on quality and sustainability. According to Mr Fernando, consumers are looking for high-quality, single-origin teas, but this is often ignored by supermarkets looking to maximise profits.

​

The tea company's unwavering commitment to maintaining the quality and sustainability of its products is not just about satisfying consumers' demands, but also about supporting the Sri Lankan communities that supply the tea. Around 95 per cent of Dilmah's products are exported, making it an important contributor to the Sri Lankan economy.

As Sri Lanka faces tough economic times with high inflation rates, the tea industry has become even more critical to the country's recovery. Tea production employs around 10 per cent of the Sri Lankan workforce, making it an essential source of income for many families.

Mr Fernando believes that the company has a responsibility to support the communities and protect the environment in which its tea is produced, especially in the face of climate change. He insists that maintaining the quality of their products is critical, even if it means being removed from Australian supermarket shelves.

The tea industry is not only essential to the Sri Lankan economy, but it also represents a rich cultural heritage that has been passed down from generation to generation.

​

If Australian supermarkets force Dilmah to compromise on its commitment to quality and sustainability, it could have devastating consequences for Sri Lankan tea producers and their communities. Many small-scale tea producers rely on fair trade practices and premium prices to sustain their livelihoods, and without this support, they could be pushed out of the market.

'You would be undermining and destroying an industry that has sustained millions over 150 years,' said Mr Fernando.

Key Takeaways

• Dilmah Tea is threatening to pull its products from Australian supermarket shelves amid a price dispute with Coles and Woolworths.
• The Sri Lankan company's CEO said major supermarkets are demanding discounts and refusing to pay a premium for their hand-crafted, single-origin Ceylon tea bags.
• Dilmah has reportedly not made a profit in Australia since 2009, and its market share is dwindling.
• The company refuses to dilute its commitment to sustainability and ethical sourcing in order to provide a lower price to Australian supermarkets.

The future availability of Dilmah Tea in Australia is uncertain as the company remains locked in a bitter price dispute with supermarket giants Coles and Woolworths.

If the supermarkets continue to push for lower prices and refuse to pay a premium for Dilmah's high-quality, single-origin Ceylon tea bags, the Sri Lankan company may soon stop supplying its tea to Australian grocery chains.

The future availability of Dilmah Tea in Australia remains uncertain. Credit: Unsplash/Matthew Henry.

So, what does this mean for our beloved morning cup of tea?

News sources have contacted both Coles and Woolworths for comment, but none have been given so far. For now, we suggest stocking up (within reason) if you're worried about being left without your favourite brew!

We'll be keeping a close eye on this developing situation and will provide updates as they become available.

Members, we'd love to hear your thoughts on this news story. Are you a fan of Dilmah Tea and concerned about the prospect of losing access to your favourite brew? Or do you think that the supermarkets are justified in seeking discounts from manufacturers?

This also brings us to a larger question: Are supermarkets becoming increasingly 'greedy' at the expense of underpaid manufacturers? It's an important issue that affects not just the tea industry but many others as well.

Do you think that companies like Dilmah should compromise on their commitment to sustainability and ethical sourcing to appease the demands of supermarkets? Or do you believe that supermarkets should pay a fair price to support the efforts of manufacturers and producers?

Let us know your thoughts in the comments section below. We look forward to hearing your perspectives on this matter!

 

[Suzanne rose]

It would appear that Australian customers are already deciding that they do not want to pay more: "In the past five years alone, sales in the country have plummeted from $37 million to just $29 million" - that's a considerable drop!

I think there are still alot of products Aussies won't skimp on. Mine is coffee, tea and laundry detergent

 

[janellen]

There's nothing quite like the comforting warmth of a steaming cup of tea to start your day, and for many of us, the perfect blend is crucial. But what happens when your favourite tea brand is in jeopardy of disappearing from the shelves?

In Australia, tea drinkers may soon have to say goodbye to one of their beloved brands as a bitter price dispute between Dilmah Tea and supermarket giants Coles and Woolworths heats up.

Apparently, the manufacturers of the high-quality, single-origin Ceylon tea bags that many Aussies have grown to love are refusing to give in to the supermarkets' demands for discounts.

Dilhan Fernando, the CEO of Dilmah Tea, has stated that the supermarkets are putting the future of their partnership at risk by refusing to pay a premium for the superior quality of their tea.

If negotiations fail, Dilmah may have no choice but to stop supplying its tea to Australian grocery chains, leaving tea lovers across the country in the lurch.

View attachment 16312

A beloved tea brand could soon be leaving the shelves of Coles and Woolworths. Credit: Unsplash/Max Chen.

Despite its worldwide reputation as the 10th biggest tea brand, Dilmah is facing significant difficulties in the Australian market. The company has not recorded a profit in Australia since 2009, and its market share is steadily declining. In the past five years alone, sales in the country have plummeted from $37 million to just $29 million.

Mr Fernando has publicly criticised Australian supermarkets, citing their 'unfair trading system' as a significant obstacle to his company's success. He believes that producers need to be fairly compensated for their products to enable them to maintain their commitment to quality.

'The producer needs to be empowered to offer a product with passion where corners are not cut. That can only happen when there is a fair price paid for the product,' Mr Fernando stated in an interview with The Australian.

'Consumers are looking for quality. But the directions we are being pushed in are an abandonment of this… It is crazy. We are being forced to chase our tail to deliver the next big thing when what we have in our hands is so substantial.'

Dilmah Tea, with its presence in over 100 countries worldwide, has been a household name in Australian supermarkets since its first deal with Coles in 1988. However, the company's commitment to sustainability and ethical sourcing has put them at odds with major Australian supermarkets, who are looking for cheaper deals.

Despite this, Mr Fernando, whose father established the company, is refusing to compromise on the quality and single-origin nature of their products in order to provide a lower price.

The company's unwavering commitment to their values has earned them a loyal following of consumers who appreciate their focus on quality and sustainability. According to Mr Fernando, consumers are looking for high-quality, single-origin teas, but this is often ignored by supermarkets looking to maximise profits.

​

The tea company's unwavering commitment to maintaining the quality and sustainability of its products is not just about satisfying consumers' demands, but also about supporting the Sri Lankan communities that supply the tea. Around 95 per cent of Dilmah's products are exported, making it an important contributor to the Sri Lankan economy.

As Sri Lanka faces tough economic times with high inflation rates, the tea industry has become even more critical to the country's recovery. Tea production employs around 10 per cent of the Sri Lankan workforce, making it an essential source of income for many families.

Mr Fernando believes that the company has a responsibility to support the communities and protect the environment in which its tea is produced, especially in the face of climate change. He insists that maintaining the quality of their products is critical, even if it means being removed from Australian supermarket shelves.

The tea industry is not only essential to the Sri Lankan economy, but it also represents a rich cultural heritage that has been passed down from generation to generation.

​

If Australian supermarkets force Dilmah to compromise on its commitment to quality and sustainability, it could have devastating consequences for Sri Lankan tea producers and their communities. Many small-scale tea producers rely on fair trade practices and premium prices to sustain their livelihoods, and without this support, they could be pushed out of the market.

'You would be undermining and destroying an industry that has sustained millions over 150 years,' said Mr Fernando.

Key Takeaways

• Dilmah Tea is threatening to pull its products from Australian supermarket shelves amid a price dispute with Coles and Woolworths.
• The Sri Lankan company's CEO said major supermarkets are demanding discounts and refusing to pay a premium for their hand-crafted, single-origin Ceylon tea bags.
• Dilmah has reportedly not made a profit in Australia since 2009, and its market share is dwindling.
• The company refuses to dilute its commitment to sustainability and ethical sourcing in order to provide a lower price to Australian supermarkets.

The future availability of Dilmah Tea in Australia is uncertain as the company remains locked in a bitter price dispute with supermarket giants Coles and Woolworths.

If the supermarkets continue to push for lower prices and refuse to pay a premium for Dilmah's high-quality, single-origin Ceylon tea bags, the Sri Lankan company may soon stop supplying its tea to Australian grocery chains.

View attachment 16313

The future availability of Dilmah Tea in Australia remains uncertain. Credit: Unsplash/Matthew Henry.

So, what does this mean for our beloved morning cup of tea?

News sources have contacted both Coles and Woolworths for comment, but none have been given so far. For now, we suggest stocking up (within reason) if you're worried about being left without your favourite brew!

We'll be keeping a close eye on this developing situation and will provide updates as they become available.

Members, we'd love to hear your thoughts on this news story. Are you a fan of Dilmah Tea and concerned about the prospect of losing access to your favourite brew? Or do you think that the supermarkets are justified in seeking discounts from manufacturers?

This also brings us to a larger question: Are supermarkets becoming increasingly 'greedy' at the expense of underpaid manufacturers? It's an important issue that affects not just the tea industry but many others as well.

Do you think that companies like Dilmah should compromise on their commitment to sustainability and ethical sourcing to appease the demands of supermarkets? Or do you believe that supermarkets should pay a fair price to support the efforts of manufacturers and producers?

Let us know your thoughts in the comments section below. We look forward to hearing your perspectives on this matter!

Super Markets stop being so greedy, I thought you were there to serve the public not rip them off.

 

[Tristeagan]

I only ever drink Dilmah tea and it would be sad to see it removed from supermarket shelves, however we cannot praise the supermarkets for keeping prices low and condemn them for pushing for lower prices from suppliers.
Even though Dilmah's profit from Australian sources has dropped, it is still a substantial share, and no doubt one that Dilmah would be hesitant to lose altogether so I am assuming that the tea will still be available in Australia, from sources other than the major supermarkets.
Personally, I would not want to pay a lower price for an inferior Dilmah.
It is the quality of the product that makes the price worthwhile.

 

[Rob44]

I only ever drink Nerada tea. The only tea grown and produced in Australia.

Absolutely!

 

[Big M]

I think they are doing the right thing by people. But let's face it Dilmar is the only tea, I have never tasted any better, it will be hard t o find one that may even compare a little. Hope we don't see the end if Dilmar.

DILMAH

 

[Bat]

Doesn't affect me. I prefer Australian grown tea Nerada. I have purchased home brand tea & found tasteless.
Other well known brands have been around for years so we have lots of choices.

 

[Ram0912!]

I think they are doing the right thing by people. But let's face it Dilmar is the only tea, I have never tasted any better, it will be hard t o find one that may even compare a little. Hope we don't see the end if Dilmar.

 

[Ram0912!]

DILMAH

I always buy Dilmah as they are the Best and Supermarkets who are making such big profits, should be able to agree on a reasonable price with Dilmah. We consumers have bee paying higher prices for Dilmah over the Years!

 

[Nana Zorak]

Good on Dilmah, and I hope they don’t cave in. Having said that, I don’t buy Dilmah tea because it’s too weak for my taste.

I used to buy green tea from Dilmah at Woolies. But they stopped carrying it so now I buy my tea along with most of my other groceries from Aldi, The only thing I don't like is the fact that all their green teas are packed in the same box as the green tea & peppermint type so every other green tea smells & tastes like the mint one which I hate. Apart from that Aldi's Diplomat teas are just as good as the popular 'other brands' from the big greedy 2. In fact we like it better than any other brands

 

[Mindygirl12022]

There's nothing quite like the comforting warmth of a steaming cup of tea to start your day, and for many of us, the perfect blend is crucial. But what happens when your favourite tea brand is in jeopardy of disappearing from the shelves?

In Australia, tea drinkers may soon have to say goodbye to one of their beloved brands as a bitter price dispute between Dilmah Tea and supermarket giants Coles and Woolworths heats up.

Apparently, the manufacturers of the high-quality, single-origin Ceylon tea bags that many Aussies have grown to love are refusing to give in to the supermarkets' demands for discounts.

Dilhan Fernando, the CEO of Dilmah Tea, has stated that the supermarkets are putting the future of their partnership at risk by refusing to pay a premium for the superior quality of their tea.

If negotiations fail, Dilmah may have no choice but to stop supplying its tea to Australian grocery chains, leaving tea lovers across the country in the lurch.

View attachment 16312

A beloved tea brand could soon be leaving the shelves of Coles and Woolworths. Credit: Unsplash/Max Chen.

Despite its worldwide reputation as the 10th biggest tea brand, Dilmah is facing significant difficulties in the Australian market. The company has not recorded a profit in Australia since 2009, and its market share is steadily declining. In the past five years alone, sales in the country have plummeted from $37 million to just $29 million.

Mr Fernando has publicly criticised Australian supermarkets, citing their 'unfair trading system' as a significant obstacle to his company's success. He believes that producers need to be fairly compensated for their products to enable them to maintain their commitment to quality.

'The producer needs to be empowered to offer a product with passion where corners are not cut. That can only happen when there is a fair price paid for the product,' Mr Fernando stated in an interview with The Australian.

'Consumers are looking for quality. But the directions we are being pushed in are an abandonment of this… It is crazy. We are being forced to chase our tail to deliver the next big thing when what we have in our hands is so substantial.'

Dilmah Tea, with its presence in over 100 countries worldwide, has been a household name in Australian supermarkets since its first deal with Coles in 1988. However, the company's commitment to sustainability and ethical sourcing has put them at odds with major Australian supermarkets, who are looking for cheaper deals.

Despite this, Mr Fernando, whose father established the company, is refusing to compromise on the quality and single-origin nature of their products in order to provide a lower price.

The company's unwavering commitment to their values has earned them a loyal following of consumers who appreciate their focus on quality and sustainability. According to Mr Fernando, consumers are looking for high-quality, single-origin teas, but this is often ignored by supermarkets looking to maximise profits.

​

The tea company's unwavering commitment to maintaining the quality and sustainability of its products is not just about satisfying consumers' demands, but also about supporting the Sri Lankan communities that supply the tea. Around 95 per cent of Dilmah's products are exported, making it an important contributor to the Sri Lankan economy.

As Sri Lanka faces tough economic times with high inflation rates, the tea industry has become even more critical to the country's recovery. Tea production employs around 10 per cent of the Sri Lankan workforce, making it an essential source of income for many families.

Mr Fernando believes that the company has a responsibility to support the communities and protect the environment in which its tea is produced, especially in the face of climate change. He insists that maintaining the quality of their products is critical, even if it means being removed from Australian supermarket shelves.

The tea industry is not only essential to the Sri Lankan economy, but it also represents a rich cultural heritage that has been passed down from generation to generation.

​

If Australian supermarkets force Dilmah to compromise on its commitment to quality and sustainability, it could have devastating consequences for Sri Lankan tea producers and their communities. Many small-scale tea producers rely on fair trade practices and premium prices to sustain their livelihoods, and without this support, they could be pushed out of the market.

'You would be undermining and destroying an industry that has sustained millions over 150 years,' said Mr Fernando.

Key Takeaways

• Dilmah Tea is threatening to pull its products from Australian supermarket shelves amid a price dispute with Coles and Woolworths.
• The Sri Lankan company's CEO said major supermarkets are demanding discounts and refusing to pay a premium for their hand-crafted, single-origin Ceylon tea bags.
• Dilmah has reportedly not made a profit in Australia since 2009, and its market share is dwindling.
• The company refuses to dilute its commitment to sustainability and ethical sourcing in order to provide a lower price to Australian supermarkets.

The future availability of Dilmah Tea in Australia is uncertain as the company remains locked in a bitter price dispute with supermarket giants Coles and Woolworths.

If the supermarkets continue to push for lower prices and refuse to pay a premium for Dilmah's high-quality, single-origin Ceylon tea bags, the Sri Lankan company may soon stop supplying its tea to Australian grocery chains.

View attachment 16313

The future availability of Dilmah Tea in Australia remains uncertain. Credit: Unsplash/Matthew Henry.

So, what does this mean for our beloved morning cup of tea?

News sources have contacted both Coles and Woolworths for comment, but none have been given so far. For now, we suggest stocking up (within reason) if you're worried about being left without your favourite brew!

We'll be keeping a close eye on this developing situation and will provide updates as they become available.

Members, we'd love to hear your thoughts on this news story. Are you a fan of Dilmah Tea and concerned about the prospect of losing access to your favourite brew? Or do you think that the supermarkets are justified in seeking discounts from manufacturers?

This also brings us to a larger question: Are supermarkets becoming increasingly 'greedy' at the expense of underpaid manufacturers? It's an important issue that affects not just the tea industry but many others as well.

Do you think that companies like Dilmah should compromise on their commitment to sustainability and ethical sourcing to appease the demands of supermarkets? Or do you believe that supermarkets should pay a fair price to support the efforts of manufacturers and producers?

Let us know your thoughts in the comments section below. We look forward to hearing your perspectives on this matter!

No I do not, compromise means Dilmah would have to use a blend with cheaper tea and this wouldn't attract buyers as much as it does now. Shame on these 'Supermarkets' - not very 'Super' to me!

 

[Macarj]

I only drink dilmah if not having coffee

 

[Lesleymorris58]

There's nothing quite like the comforting warmth of a steaming cup of tea to start your day, and for many of us, the perfect blend is crucial. But what happens when your favourite tea brand is in jeopardy of disappearing from the shelves?

In Australia, tea drinkers may soon have to say goodbye to one of their beloved brands as a bitter price dispute between Dilmah Tea and supermarket giants Coles and Woolworths heats up.

Apparently, the manufacturers of the high-quality, single-origin Ceylon tea bags that many Aussies have grown to love are refusing to give in to the supermarkets' demands for discounts.

Dilhan Fernando, the CEO of Dilmah Tea, has stated that the supermarkets are putting the future of their partnership at risk by refusing to pay a premium for the superior quality of their tea.

If negotiations fail, Dilmah may have no choice but to stop supplying its tea to Australian grocery chains, leaving tea lovers across the country in the lurch.

View attachment 16312

A beloved tea brand could soon be leaving the shelves of Coles and Woolworths. Credit: Unsplash/Max Chen.

Despite its worldwide reputation as the 10th biggest tea brand, Dilmah is facing significant difficulties in the Australian market. The company has not recorded a profit in Australia since 2009, and its market share is steadily declining. In the past five years alone, sales in the country have plummeted from $37 million to just $29 million.

Mr Fernando has publicly criticised Australian supermarkets, citing their 'unfair trading system' as a significant obstacle to his company's success. He believes that producers need to be fairly compensated for their products to enable them to maintain their commitment to quality.

'The producer needs to be empowered to offer a product with passion where corners are not cut. That can only happen when there is a fair price paid for the product,' Mr Fernando stated in an interview with The Australian.

'Consumers are looking for quality. But the directions we are being pushed in are an abandonment of this… It is crazy. We are being forced to chase our tail to deliver the next big thing when what we have in our hands is so substantial.'

Dilmah Tea, with its presence in over 100 countries worldwide, has been a household name in Australian supermarkets since its first deal with Coles in 1988. However, the company's commitment to sustainability and ethical sourcing has put them at odds with major Australian supermarkets, who are looking for cheaper deals.

Despite this, Mr Fernando, whose father established the company, is refusing to compromise on the quality and single-origin nature of their products in order to provide a lower price.

The company's unwavering commitment to their values has earned them a loyal following of consumers who appreciate their focus on quality and sustainability. According to Mr Fernando, consumers are looking for high-quality, single-origin teas, but this is often ignored by supermarkets looking to maximise profits.

​

The tea company's unwavering commitment to maintaining the quality and sustainability of its products is not just about satisfying consumers' demands, but also about supporting the Sri Lankan communities that supply the tea. Around 95 per cent of Dilmah's products are exported, making it an important contributor to the Sri Lankan economy.

As Sri Lanka faces tough economic times with high inflation rates, the tea industry has become even more critical to the country's recovery. Tea production employs around 10 per cent of the Sri Lankan workforce, making it an essential source of income for many families.

Mr Fernando believes that the company has a responsibility to support the communities and protect the environment in which its tea is produced, especially in the face of climate change. He insists that maintaining the quality of their products is critical, even if it means being removed from Australian supermarket shelves.

The tea industry is not only essential to the Sri Lankan economy, but it also represents a rich cultural heritage that has been passed down from generation to generation.

​

If Australian supermarkets force Dilmah to compromise on its commitment to quality and sustainability, it could have devastating consequences for Sri Lankan tea producers and their communities. Many small-scale tea producers rely on fair trade practices and premium prices to sustain their livelihoods, and without this support, they could be pushed out of the market.

'You would be undermining and destroying an industry that has sustained millions over 150 years,' said Mr Fernando.

Key Takeaways

• Dilmah Tea is threatening to pull its products from Australian supermarket shelves amid a price dispute with Coles and Woolworths.
• The Sri Lankan company's CEO said major supermarkets are demanding discounts and refusing to pay a premium for their hand-crafted, single-origin Ceylon tea bags.
• Dilmah has reportedly not made a profit in Australia since 2009, and its market share is dwindling.
• The company refuses to dilute its commitment to sustainability and ethical sourcing in order to provide a lower price to Australian supermarkets.

The future availability of Dilmah Tea in Australia is uncertain as the company remains locked in a bitter price dispute with supermarket giants Coles and Woolworths.

If the supermarkets continue to push for lower prices and refuse to pay a premium for Dilmah's high-quality, single-origin Ceylon tea bags, the Sri Lankan company may soon stop supplying its tea to Australian grocery chains.

View attachment 16313

The future availability of Dilmah Tea in Australia remains uncertain. Credit: Unsplash/Matthew Henry.

So, what does this mean for our beloved morning cup of tea?

News sources have contacted both Coles and Woolworths for comment, but none have been given so far. For now, we suggest stocking up (within reason) if you're worried about being left without your favourite brew!

We'll be keeping a close eye on this developing situation and will provide updates as they become available.

Members, we'd love to hear your thoughts on this news story. Are you a fan of Dilmah Tea and concerned about the prospect of losing access to your favourite brew? Or do you think that the supermarkets are justified in seeking discounts from manufacturers?

This also brings us to a larger question: Are supermarkets becoming increasingly 'greedy' at the expense of underpaid manufacturers? It's an important issue that affects not just the tea industry but many others as well.

Do you think that companies like Dilmah should compromise on their commitment to sustainability and ethical sourcing to appease the demands of supermarkets? Or do you believe that supermarkets should pay a fair price to support the efforts of manufacturers and producers?

Let us know your thoughts in the comments section below. We look forward to hearing your perspectives on this matter!

I think supermarkets should be supporting locally made products first, if Sri Lanka doesn’t want to come to the party, then take it somewhere else. Our supermarkets have been doing business with them for that many years without a complaint and now because the economy is how it is they want more money, sorry, we’re all in the same boat, maybe your boat has sailed Sri Lanka and it’s sailing back home

 

[Mr Chips]

Well, read all those comments and can only say that no one understands the supermarket chains' pricing structures let me tell you with complete certainty that the selling prices are not controlled by the supermarkets but by the suppliers. This also applies to the other smaller chains, not just Coles or Woolies who seem to continually bear the brunt of the criticism, unfairly so. Governments are not able to do anything about price changes as long as the supermarkets are working inside the consumer laws, which they are and they would never dare to abuse those laws so essentially they cannot sell above the suppliers' recommended retail price which is a fixed price nationally. They are however allowed to discount the products which come from a marketing contribution built into the pricing structure once again set by the supplier. When these "promotions" become available as *Specials* the supermarket chains guarantee to buy up to 5 times their normal supply and then they promote the product heavily to ensure they are not overstocked for too long. This also helps the brand to reach out to new customers that may not have tried the product before. It's interesting to note the massive fall in Dilmah's Tea's turnover. I would say that because they have reduced their advertising by a huge percentage and fewer in-store "promotions". Who remembers seeing the lovely Dilmar TV commercials in the last few years? Not many I would think and certainly nowhere near the density of ads that we used to see say 15 to 20 years ago. Anyhow, to return to the pricing structure it means that all supermarket chains end up receiving more or less the same net price as each other it's just how the markup from wholesale to retail is handled which again is mostly controlled by the supplier, not the supermarkets. The supermarkets provide a method by which you can go to one location and buy everything you need at a reasonable price. They provide convenient locations, shelving, and staff to assist in you having a great shopping experience and being able to take all your groceries home in more or less one load indeed nowadays they even deliver your order to your door after you have ordered online. They also try their level best to try to reduce the out-of-stock issue. Imagine having to travel to all the suppliers' premises to purchase each of your items for your regular shop. Off to Sri Lanka for your tea, then down to Eden for some butter up to Coffs Harbour for a few Bananas then Bilpin for some apples. Total madness. All I am saying is to give the supermarkets credit for actually trying to look after their valued suppliers and taking the unfair criticism for pricing commentary. Oh yes and as far as tea is concerned I am a very choosy tea drinker and my choice of strong, quality tea is the Yorkshire Gold brand which suits my palette and satisfies my thirst. It's a little more pricey than most but that's my choice and highly recommended for those of you who have not tried it.

 

[Rosalie30]

I only ever drink Nerada tea. The only tea grown and produced in Australia.

Have drank Nerada Tea since I came to Australia 35 years ago. The best!

 

[Penny4]

Well, read all those comments and can only say that no one understands the supermarket chains' pricing structures let me tell you with complete certainty that the selling prices are not controlled by the supermarkets but by the suppliers. This also applies to the other smaller chains, not just Coles or Woolies who seem to continually bear the brunt of the criticism, unfairly so. Governments are not able to do anything about price changes as long as the supermarkets are working inside the consumer laws, which they are and they would never dare to abuse those laws so essentially they cannot sell above the suppliers' recommended retail price which is a fixed price nationally. They are however allowed to discount the products which come from a marketing contribution built into the pricing structure once again set by the supplier. When these "promotions" become available as *Specials* the supermarket chains guarantee to buy up to 5 times their normal supply and then they promote the product heavily to ensure they are not overstocked for too long. This also helps the brand to reach out to new customers that may not have tried the product before. It's interesting to note the massive fall in Dilmah's Tea's turnover. I would say that because they have reduced their advertising by a huge percentage and fewer in-store "promotions". Who remembers seeing the lovely Dilmar TV commercials in the last few years? Not many I would think and certainly nowhere near the density of ads that we used to see say 15 to 20 years ago. Anyhow, to return to the pricing structure it means that all supermarket chains end up receiving more or less the same net price as each other it's just how the markup from wholesale to retail is handled which again is mostly controlled by the supplier, not the supermarkets. The supermarkets provide a method by which you can go to one location and buy everything you need at a reasonable price. They provide convenient locations, shelving, and staff to assist in you having a great shopping experience and being able to take all your groceries home in more or less one load indeed nowadays they even deliver your order to your door after you have ordered online. They also try their level best to try to reduce the out-of-stock issue. Imagine having to travel to all the suppliers' premises to purchase each of your items for your regular shop. Off to Sri Lanka for your tea, then down to Eden for some butter up to Coffs Harbour for a few Bananas then Bilpin for some apples. Total madness. All I am saying is to give the supermarkets credit for actually trying to look after their valued suppliers and taking the unfair criticism for pricing commentary. Oh yes and as far as tea is concerned I am a very choosy tea drinker and my choice of strong, quality tea is the Yorkshire Gold brand which suits my palette and satisfies my thirst. It's a little more pricey than most but that's my choice and highly recommended for those of you who have not tried it.

Now that's going back. All those years ago, the Dilmah 100 pack of teabags came with a little pottery elephant. I still have 2 in my cupboard.
I haven't bought the Yorkshire tea before, but I noticed they make a Proper Strong black tea which looks nice.
Plus yes, this tea is made in the United Arab Emirates, so off there for the tea.

 

[PettyPie]

Shouldn't the supermarkets let their customers decide if they want to pay more for quality.

Has anyone else noticed how coles brands are taking over and well known brands are less eg I only buy Cottees flavouring and in most stores they only stock the coles brands .
I have also seen this with alot of other food lines

Coles, and I think Woolworths did it to Ryvita. So had to go to IGA to buy them. So many Australian brands are being replaced by brands from Indonesia and Malaysia e.g. Dole. I have trouble getting Golden Circle products but there are plenty of Dole on the shelves.

 

[Defiant540]

I wonder if its possible to get this product direct from the company in small quantities?

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www.dilmah.com.au

 

[EssieS]

How about just buying Australian made and grown tea, NERADA, then you are supporting Austalia and Australians

 

[midgemills]

I use Dilmah teabags and read this article today. Not only are they ripping off customers but also their suppliers. These bullying tactics should be illegal. The supermarkets do this to lure us in with specials that they don't even finance and know that we need to buy most of our groceries from them at rip off prices. I do most of my shopping at Coles. That might have to change even if I pay more from independant stores.

P.S If you buy Dilmah teabags check out the little brochure which is inside the box. It tells the Dilmah story including how they put back many support programs into their workers and community. Also inflation is over 50% in Sri Lanka currently. It's totally unfair that our supermarkets think that they can dictate their prices for a quality product. Dilmah has sold their tea to Australian supermarkets at a loss for several years which is totally unsustainable.

 

[Annette V]

There's nothing quite like the comforting warmth of a steaming cup of tea to start your day, and for many of us, the perfect blend is crucial. But what happens when your favourite tea brand is in jeopardy of disappearing from the shelves?

In Australia, tea drinkers may soon have to say goodbye to one of their beloved brands as a bitter price dispute between Dilmah Tea and supermarket giants Coles and Woolworths heats up.

Apparently, the manufacturers of the high-quality, single-origin Ceylon tea bags that many Aussies have grown to love are refusing to give in to the supermarkets' demands for discounts.

Dilhan Fernando, the CEO of Dilmah Tea, has stated that the supermarkets are putting the future of their partnership at risk by refusing to pay a premium for the superior quality of their tea.

If negotiations fail, Dilmah may have no choice but to stop supplying its tea to Australian grocery chains, leaving tea lovers across the country in the lurch.

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A beloved tea brand could soon be leaving the shelves of Coles and Woolworths. Credit: Unsplash/Max Chen.

Despite its worldwide reputation as the 10th biggest tea brand, Dilmah is facing significant difficulties in the Australian market. The company has not recorded a profit in Australia since 2009, and its market share is steadily declining. In the past five years alone, sales in the country have plummeted from $37 million to just $29 million.

Mr Fernando has publicly criticised Australian supermarkets, citing their 'unfair trading system' as a significant obstacle to his company's success. He believes that producers need to be fairly compensated for their products to enable them to maintain their commitment to quality.

'The producer needs to be empowered to offer a product with passion where corners are not cut. That can only happen when there is a fair price paid for the product,' Mr Fernando stated in an interview with The Australian.

'Consumers are looking for quality. But the directions we are being pushed in are an abandonment of this… It is crazy. We are being forced to chase our tail to deliver the next big thing when what we have in our hands is so substantial.'

Dilmah Tea, with its presence in over 100 countries worldwide, has been a household name in Australian supermarkets since its first deal with Coles in 1988. However, the company's commitment to sustainability and ethical sourcing has put them at odds with major Australian supermarkets, who are looking for cheaper deals.

Despite this, Mr Fernando, whose father established the company, is refusing to compromise on the quality and single-origin nature of their products in order to provide a lower price.

The company's unwavering commitment to their values has earned them a loyal following of consumers who appreciate their focus on quality and sustainability. According to Mr Fernando, consumers are looking for high-quality, single-origin teas, but this is often ignored by supermarkets looking to maximise profits.

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The tea company's unwavering commitment to maintaining the quality and sustainability of its products is not just about satisfying consumers' demands, but also about supporting the Sri Lankan communities that supply the tea. Around 95 per cent of Dilmah's products are exported, making it an important contributor to the Sri Lankan economy.

As Sri Lanka faces tough economic times with high inflation rates, the tea industry has become even more critical to the country's recovery. Tea production employs around 10 per cent of the Sri Lankan workforce, making it an essential source of income for many families.

Mr Fernando believes that the company has a responsibility to support the communities and protect the environment in which its tea is produced, especially in the face of climate change. He insists that maintaining the quality of their products is critical, even if it means being removed from Australian supermarket shelves.

The tea industry is not only essential to the Sri Lankan economy, but it also represents a rich cultural heritage that has been passed down from generation to generation.

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If Australian supermarkets force Dilmah to compromise on its commitment to quality and sustainability, it could have devastating consequences for Sri Lankan tea producers and their communities. Many small-scale tea producers rely on fair trade practices and premium prices to sustain their livelihoods, and without this support, they could be pushed out of the market.

'You would be undermining and destroying an industry that has sustained millions over 150 years,' said Mr Fernando.

Key Takeaways

• Dilmah Tea is threatening to pull its products from Australian supermarket shelves amid a price dispute with Coles and Woolworths.
• The Sri Lankan company's CEO said major supermarkets are demanding discounts and refusing to pay a premium for their hand-crafted, single-origin Ceylon tea bags.
• Dilmah has reportedly not made a profit in Australia since 2009, and its market share is dwindling.
• The company refuses to dilute its commitment to sustainability and ethical sourcing in order to provide a lower price to Australian supermarkets.

The future availability of Dilmah Tea in Australia is uncertain as the company remains locked in a bitter price dispute with supermarket giants Coles and Woolworths.

If the supermarkets continue to push for lower prices and refuse to pay a premium for Dilmah's high-quality, single-origin Ceylon tea bags, the Sri Lankan company may soon stop supplying its tea to Australian grocery chains.

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The future availability of Dilmah Tea in Australia remains uncertain. Credit: Unsplash/Matthew Henry.

So, what does this mean for our beloved morning cup of tea?

News sources have contacted both Coles and Woolworths for comment, but none have been given so far. For now, we suggest stocking up (within reason) if you're worried about being left without your favourite brew!

We'll be keeping a close eye on this developing situation and will provide updates as they become available.

Members, we'd love to hear your thoughts on this news story. Are you a fan of Dilmah Tea and concerned about the prospect of losing access to your favourite brew? Or do you think that the supermarkets are justified in seeking discounts from manufacturers?

This also brings us to a larger question: Are supermarkets becoming increasingly 'greedy' at the expense of underpaid manufacturers? It's an important issue that affects not just the tea industry but many others as well.

Do you think that companies like Dilmah should compromise on their commitment to sustainability and ethical sourcing to appease the demands of supermarkets? Or do you believe that supermarkets should pay a fair price to support the efforts of manufacturers and producers?

Let us know your thoughts in the comments section below. We look forward to hearing your perspectives on this matter