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!

 

[ladykaliber]

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.

h
I have drunk Dilmah for years and love it. Would miss it. But I think it can be bought from their headquarters in Vic. I got Afternoon Tea from there when I could not find it anywhere else. Ithink we should support Dilmah and the supermakets should stop throwing their weight around. I am sure they do it everywhere. Maybe Aldi can start carrying things that the other supermakets do this to under the original name instead of Aldi, as I, for one, am not always sure what I am buying there therefore tend not to do my whole shop there. Goodness sorry guys don't know when to stop. Do I.

 

[gordon1940]

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

Good on Ya!!

 

[Mr Chips]

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.

The proper strong version is the best.

 

[Searider]

All comes down to Woolies and Coles’ fight to stay as the big two supermarkets in Australia. You only have to look at how they treat our farmers by not paying them a fare price for our Aussie grown produce. I have not shopped at either Woolies or Coles for years due to their treatment of our hard working farmers, shame on the management of these bully supermarkets

 

[Leeann]

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 always buy Dilmah tea and we should be given a choice of paying a bit more for the brands we like. There’s more and more brands disappearing from supermarket shelves. It won’t be long before they only sell home brand products.

 

[Shashaz]

OMG!!! Stick to your guns Dilmah!! However, should this terrible thing happen and you stop supplying in Australia, may I make a request? Will you please adopt me? All I will want for Christmas and Birthdays, is your MAGNIFICENT EXTRA STRONG tea! I started drinking your tea in 2007 and no other tea (except when out), has touched my Dilmah Taste Buds! So many other items has reduced in size, weight, and more importantly weakened in taste. Your tea is absolutely the best! Have a great day - Sharyn

 

[marray1942]

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 don't think Dilmah

 

[BRIAN KK]

Dilma hasn't made a profit here since 2009 and market share is dwindling? I'm surprised they haven't pulled their products already. What a hide the shops have got seeking a reduction in cost to them for an inferior product. Good on Dilmah for their integrity. They have no problems in price gouging their shoppers. I'm a big tea drinker and have tried just about every brand, but find I have to go to the extra strong variant to get a decent flavour and have found Twinings extra strong English Breakfast the best by far. The Aldi brothers have been screwing suppliers from the start, but not publicised if that was at the sake of quality also.

 

[Annette V]

The Dilmah tea I love is now not available at supermarkets… I buy it online at Winc.com.au.

 

[Annette V]

OMG!!! Stick to your guns Dilmah!! However, should this terrible thing happen and you stop supplying in Australia, may I make a request? Will you please adopt me? All I will want for Christmas and Birthdays, is your MAGNIFICENT EXTRA STRONG tea! I started drinking your tea in 2007 and no other tea (except when out), has touched my Dilmah Taste Buds! So many other items has reduced in size, weight, and more importantly weakened in taste. Your tea is absolutely the best! Have a great day - Sharyn

 

[Helereb]

I

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 thi

 

[Helereb]

The Dilmah tea I love is now not available at supermarkets… I buy it online at Winc.com.au.

I only buy Dilmah tea and will be very sorry if it is not on the shelf at the supermarket. Jean

 

[PeeBo]

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!

The biggest problem here is supermarkets maintaining the profit margin at the expense of suppliers. This will be the case for Dilmah, and I agree with him sticking to his guns. The supermarkets have to realise they have to take their fair share of trading fluctuations as does any other business, especially now in inflationary times, and their practices are not helping to steady the spending line.
Dilmah is by far one of the best, if not the best, from my perspective of a cup in a bag over loose tea. Its subtle taste and mix of different blends are unique and most satisfying.
Long Live Dilmah.

 

[Kman]

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!

Who cares. Start buying Australian tea.

 

[Bullwinkle]

I worked for an Ice Cream company in the mid north of South Australia…
To get our products into the larger supermarkets e.g. Coles and Woolworths, they would beat us down to rock bottom prices, then charge the consumers top dollar. Very little profit made!!
It’s time we all started supporting the Independent Grocers e.g. IGA, Drakes Supermarkets, Foodland…not sure what independent grocers there are on the eastern seaboard.

 

[Yaya]

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!

 

[Yaya]

Who cares. Start buying Australian tea.

Nerada, Daintree, Bushells, there are so many. It’s high time we supported our own struggling farmers

 

[Esma Rose]

I am 97. If Coles & Woollies don't do a turnabout very soon, I'll be not seeing 100. I am fed up with their Company policies, their small mindedness & giving us oldies an inferiority complex. GREED seems the order of the day, downright selfishness & forget about the other person. "Quality" is what we all term as necessary. If one can afford the brand they love, they PAY for it. No questions asked. There WILL come a time in your life that you CAN enjoy your decision with pleasure. If you can't there is plenty of other brands to suffice until you want to step up & enjoy what YOU want. I will never lower my principals to anyone, & yes, my beautiful late husband & I with 71 yrs behind us always budgeted to the last penny. Why should a Company who has built itself up through hard & easy times suddenly find themselves @ the mercy of blood suckers who are only thinking of their GREEDY profits. Risky Dave's mate re his letter as to how King Island solved THEIR problem was music to my ears.

 

[jay2]

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

I think postage would be an issue. jay2

 

[Mr Chips]

I worked for an Ice Cream company in the mid north of South Australia…
To get our products into the larger supermarkets e.g. Coles and Woolworths, they would beat us down to rock bottom prices, then charge the consumers top dollar. Very little profit made!!
It’s time we all started supporting the Independent Grocers e.g. IGA, Drakes Supermarkets, Foodland…not sure what independent grocers there are on the eastern seaboard.

Ha! you should see their purchasing requirements, best prices and tiny orders with little or no central warehousing facilities in some cases.