Lipton Teas and Infusions has signed a partnership to enable the transfer of its tea estates in Kenya, Rwanda, and Tanzania to Browns Investment.
The new long-term partnership has been designed to ensure all tea sold by Browns worldwide will be grown and harvested to a new set of standards covering quality, social and environmental protections.
As part of the new agreement, 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 employment opportunities in Kenya, with an investment of 1bn Kenyan shillings (£5.9m) into a new Community Welfare Trust.
The deal is understood to make Brown’s the world’s leading tea exporter, producing around 87m kilograms each year and acting as one of the largest suppliers to the world’s biggest tea company, Lipton.
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Lipton Teas and Infusions chief executive officer Nathalie Roos said: “Browns is the perfect partner, with the 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.”
Browns Investment chief executive director Kamantha Amarasekera 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.”
The latest transferring of estates follows a move in 2021 which saw FMCG giant Unilever selling off tea brands that it had owned for decades, including PG Tips and Lipton to private equity firm CVC Partners in a £3.8bn deal.
