Strategic relationship sees transfer of tea estates ownership and global adoption of new quality, social and environmental standards

Lipton Teas and Infusions has agreed terms of a partnership which will result the transfer of its tea estate in Kenya, Rwanda and Tanzania to Browns Investments alongside an agreement that all tea sold by Browns worldwide will be grown and harvested to a new set of standards covering quality, social and environmental protections.

This long term partnership will make Browns the world’s leading tea exporter – around 87 million kilograms each year as well as one of the largest suppliers to the world’s largest tea company, LIPTON Teas and Infusions. By working together, the two companies will raise tea quality globally and accelerate the application of responsible farming methods across the industry to drive sustainable growth. Browns will invest in its estates in Kenya and Sri Lanka to meet the new standards by 2025, as well as in the creation of additional skilled employment opportunities in Kenya. 

In line with Lipton Teas and Infusions’ vision of creating value for all, the proceeds or the transaction will be reinvested into the East Africa region to drive local and industry-wide progress in relevant areas such as skills development and climate change mitigation.

The Government of Kenya has supported the companies in identifying opportunities for local communities to benefit from the partnership and future growth of the industry. Shares totalling  15% of the main Kenyan operating company will be offered to the communities of Kericho and Bomet, where the estates are situated, at a substantial discount to create accessible communal equity and mutually aligned economic participation. LIPTON Teas and Infusions and Browns are also jointly creating a Community Welfare Trust with an initial one billion Kenyan shillings dedicated to helping address other needs at local and neighbouring communities.

Nathalie Roos, Chief Executive Officer of LIPTON Teas and Infusions said: “Browns is the preferred partner with credibility, capabilities and scale, to work with us to raise standards in the whole tea industry. The team’s commitment to sustainability and community development aligns with our own. Together, we are setting a new precedent for transforming the global tea market - one cup at a time.”

Kamantha Amarasekera, Chief Executive Director of Browns Investments said: “We look forward to working hand-in-hand with LIPTON Teas and Infusions and local partners to foster a sustainable, responsible, and prosperous future for all. This partnership marks a significant step towards elevating the-industry as a whole, while also ensuring a positive impact on the livelihoods of the communities we serve.”

Photo - Browns Investments PLC Chairman Ishara Nanayakkara