by SARATH C. JAYAWARDANA – Sunday Observer May 27, 2001, Sri Lanka
The year was 1890 Coffee plantations in Ceylon
affected by the blight were being replanted with tea and some estates were on
offer for sale. Certain London bankers, representing a group of Ceylon estates approached a successful Irish businessman in Scotland
by the name of Thomas J. Lipton to persuade him to purchase these estates and
enter the business of tea planting on a large scale. Lipton by that time was
already selling tea in a big way in his large chain of Lipton grocery shops in
England and Scotland where the main commodities sold were ham, bacon, eggs and
cheese. He had entered tea business as an adjunct to the other commodities only
after he had more or less achieved all he had originally set out to do in the
general provision trade.
Lipton sells Ceylon Tea
By the late eighties tea drinking had become
a popular habit in Britain. The wholesale dealers in tea in London soon
realizing that the chain of Lipton grocery shops offered the most enticing
retail outlets for tea approached Lipton with the idea of selling tea in his
shops. Although the idea appealed to Lipton and he realised how profitable it
could be, he was too shrewd a businessman to fall prey without studying the
intricacies of tea trade.
Mincing Lane in London was where tea trading
took place and he soon found out that it was the middlemen who made the maximum
profit. Lipton did not favour this. He therefore decided to cut out the
middleman and enter the tea trade direct.
After much consideration he bought tea in
small quantities to begin with. His immediate difficulty was blending. Being a
novice in the tea business he had to compete with expert tea blenders. He had
no encouragement from the Mincing Lane tea brokers. But he was not to be
deterred. Gradually he created a new tea department of Lipton which within a
week or two was doing very well and created a sensation of the first magnitude
in the London tea market. The public rushed to buy his tea which was sold at a
very nominal price. Very soon weekly sales in every branch of Liptons exceeded
a ton of tea. Lipton was firmly rooted in the tea business.
Lipton buys tea estates in Ceylon
The idea of buying tea estates in Ceylon
interested Lipton. I agreed with his principle of abolishing the middleman. But
he did not show his interest outwardly. He therefore without committing to the
bankers secretly booked a passage to Australia on the first available liner and
got off at Colombo.
Upon arriving in Colombo he proceeded to
Kandy and Matale to inspect some estates that were on offer. "Although I
knew as much about tea-planting as Euclid knew about motoring I liked the look
of the estates" says Lipton in his memoirs. Without further consideration
of the matter he did immediately cable his offer to London. Following the
exchange of a few cables Lipton became the sole proprietor of the estates.
The first estates Lipton bought in Sri Lanka
were known as Downall Group in Haputale that included the plantations called
Dambatenne, Laymostotte and Monerakande with a total extent of two to three
hundred acres.
Only half the acreage had been under tea and
coffee. He immediately arranged to have the entire acreage planted as he had no
interest in spending money on waste land in Ceylon. A few days later he bought
another estate in Pussellawa called the Pooprassie plantation. He left the island
only after making arrangements to buy other properties as and when they could
be secured. Lipton's experience in buying tea estates in Sri Lanka is described
as follows in his memoirs. "Between the estates I had bought and the big
sum of money I left with my agent I think I must have invested well over a
hundred thousand pounds in Ceylon within a week of my arrival in that lovely
and delectable island of spicy breezes."
It was the beginning of a highly successful
business in tea planting and trading that has made the name Lipton a household
word throughout the world. Dambatenne Estate which is approximately 9 1/2 km.
from Haputale town was the favourite resting place of Lipton when in Sri Lanka.
In fact it remained the headquarters of Liptons till recently. A memento of the
days gone by in the form of a seat used by Lipton to enjoy the scenery below is
still there at this estate. The Lipton's seat located in a vantage point
commands a panoramic view from an altitude of 1960 metres of the sloping terrain
of southeastern Sri Lanka bordered by the Deniyaya Hills to the southwest. The
lights of the Great and Little Basses lighthouses can be seen in the night.
Lipton observed that the tea plucked in his
plantations on the hill slopes had to be carried on the back of tea pluckers to
the factories located far below down steep mountain paths which at times tend
to prove dangerous. He devised anew method of transporting the sacks by fitting
a system of what might be described as aerial 'wire-ways' between the tea gardens
on the hills and the factories at their base.
This cable operation which is still in use
in many tea estates in Sri Lanka were to the delight of the tea pluckers who
were relieved of the agonising task of carrying bags full of plucked tea down
steep hilly slopes. This was one of the several ways Lipton used to reorganise
the production of tea on his estates. On his return from Sri Lanka Lipton used
the slogan 'Direct from the Tea Garden to the Teapot' for several years to
popularise his brand of tea. With the increase in demand for Lipton's tea he
had to augment the supplies from his own estates in Sri Lanka with purchases of
large parcels at the Colombo Tea Sales and at Mincing Lane in London. He refers
to a payment of sterling pounds 50,513 11s.6d as customs dues for the clearance
of three million pounds of tea as a Customs record of the time. That too had
been beaten in later years by Lipton himself.
Ceylon 'natives' parade in Glasgow
Lipton had great faith in advertising. One
of the first Britishers to see the immense possibilities and advantages of
advertising, he used many innovative methods to put his products before the
consumers. A street procession he organised to sell Ceylon Tea is best
described in Lipton's own words.
"Determined to make a splash in my home
town and draw wide spread attention to my new activities, I organised secretly
a little army of about two hundred men who were ordered to report on a certain
morning at my headquarters in Lancefield Street. On reaching the Lipton headquarters
each man was ushered into a large warehouse, cleared for the occasion and
transformed into an immense theatrical dressing room. A couple of hundred
Cingalese costumes were all laid out, complete in every detail, and to every
few men was attached a competent dresser who knew exactly what was required of
him, namely, to turn out so many Ceylon natives, dressed and made up so that
they would have passed muster in the streets of Colombo.
Every man carried two little
sandwich-boards. One board told the story that 'Lipton's Tea is the Finest in
the World' and the second announced the fact that it came 'Direct from the Tea
Gardens to the Tea Pot.' A 'squadron' of the biggest and best looking Cingalese
were mounted at the head of the procession. It took Glasgow by storm."
Many of the citizens in Glasgow thought that the parading natives had been
brought down from Lipton's estates in Ceylon. A woman whose husband had been
one of Litpon's regular sandwich-men for several years had been so dismayed
that she had seized the bridle of one horse swearing at the man on its back.
"Ye should be ashamed an daein' honest Scotsmen oot o' their jobs"
she had yelled. Not until the evening did she know that the man on horseback
had been her own husband acting as the leader of the Cingalese.
Lipton was facing stiff opposition from
Mincing Lane. It was to be expected. a person who was selling tea from his own
estates would not be gladly received in the Lane devoted to brokers and
middlemen.
His tea was being labelled as 'cheap tea' as
it was sold at comparatively low prices. In order to subdue Mincing Lane
opposition Lipton wanted to prove to the Lane and to the public that his
estates in Ceylon were capable of producing 'the best tea in the universe'. He
cabled his manager in Ceylon to send him a parcel of the very finest,
gold-tipped tea grown in his estates. The parcel was sold by public auction in
Mincing Lane at thirty-six guineas per pound which had been an amazing price at
that time. That thwarted all attempts to decry Lipton's tea while setting up an
unbeatable record in tea prices.
Towards the end of 1907 Sir Thomas received
a message from the Secretary of Her Majesty Empress Eugenie of France. She was
the wife of the French Emperor Napoleon III and it was she who formally opened
the Suez Canal in 1859 as the Empress of France. The message read as follows:
"The Empress would like you to arrange
for her to go to Ceylon. You praised the beauties of the island so
enthusiastically to Her Majesty when you were last here that nothing will
dissuade her from going. She has set her heart on the trip and wants you, as a
favour, to make all arrangements as soon as you can."
She was more than eighty years of age at
that time which worried Sir Thomas.
However, after consultation with Her Majesty
he made all necessary arrangements to make Her Majesty's stay in the island as
happy and comfortable as possible and in early January 1908 he set sail for
Colombo in advance of the Royal Party.
A few days after his arrival in Colombo, the P&O liner Mooltan carrying the Royal Party arrived in Colombo. The Royal Guests were given a rousing welcome as it happened to be the first visit to Ceylon of a personage of such historical importance. Sir Thomas was the first to go on board to welcome the Royal Visitor. The Royal party was accommodated in special apartments at the Galle Face Hotel. The Empress and party remained for seven weeks in Ceylon and in her own words it happened to be "One of the most delightful holidays that she had ever spent." The credit goes to Sir Thomas J. Lipton and his love for Ceylon.