\u201cTraditionally tea, coffee, and cocoa were bought in bulk, blended offshore, and sold for big profits while producers remained poor,\u201d Fernando explained. \u201cWe changed that by branding ourselves as growers. We added value at source.\u201d<\/p>\n
That simple act was radical at the time and remains central to Dilmah\u2019s identity. It\u2019s a mindset he says New Zealanders instinctively understand.<\/p>\n
\u201cNew Zealanders understand the connection between nature and taste,\u201d said Fernando. \u201cWhile the importance of ingredients is shared by your wine and dairy industries, around the world I see that respect for artisanship and for ingredients disappearing, sacrificed to discounts and so on.\u201d<\/p>\n
Many organisations have been softening or retreating from environmental, social, and governance (ESG) commitments recently, driven by regulatory uncertainty, political pushback, and rising scepticism about real-world impact and costs. Yet Dilmah has held firm \u2013 even when it costs.<\/p>\n
\u201cOddly in the global market, we can be terribly penalised for doing the right thing,\u201d Fernando said, recalling an Australian retailer who demanded an increased margin to stay on the shelf, and suggested Dilmah cut its charitable spend to make up the difference.<\/p>\n
\u201cOf course, we took the logical step and walked away\u201d.<\/p>\n
The decision significantly dropped Dilmah\u2019s market share overnight, but for Fernando, the company\u2019s purpose was non-negotiable.<\/p>\n
Dilhan Fernando, founder of Dilmah.<\/p>\n
\u201cMost CEOs have a three-month timeframe. But we think in generations. We are responsible for an ecosystem that includes people and nature.\u201d<\/p>\n
Last year was Dilmah\u2019s worst on record for profit \u2013 yet it was its greatest for impact.<\/p>\n
More than one billion Sri Lankan rupees were invested through its foundation in education, healthcare, disability services, climate science, food programmes, and Sri Lanka\u2019s post-conflict rehabilitation.<\/p>\n
\u201cSuccess is important,\u201d said Fernando. \u201cBut significance is success expressed in the lives of others.\u201d<\/p>\n
The commitment extends beyond Sri Lanka. \u201cWe work in New Zealand with hospice, with the homeless through different organisations,\u201d he said. \u201cIn Australia as well, through the Salvation Army, with people struggling with substance abuse and with the homeless.\u201d<\/p>\n
Dilmah is also recognised for its strong environmental credentials: from renewable energy and reforestation to waste reduction, biodiversity and sustainable agriculture. It achieved carbon neutrality in 2017 and aims to be carbon negative by 2030.<\/p>\n
Together, these efforts shape a view of business that goes beyond profit. \u201cYou realise the purpose of business,\u201d Fernando said. \u201cAnd you understand what really motivates a business to do more.\u201d<\/p>\n
But he was also frank about the pressure ethical businesses face. \u201cThe challenge businesses have in doing the right thing today is something exceptional.\u201d<\/p>\n
He outlined the realities of sustainable farming: \u201cLooking after the soil, using biochar, biological control for pest management, agroforestry methods. Unfortunately, when you do the right thing, you generally pay a high price for it.\u201d<\/p>\n
And yet, that struggle is central to Dilmah\u2019s identity. \u201cIt motivates us,\u201d he said simply. \u201cIt makes us leaner, fitter.\u201d<\/p>\n
Dilmah\u2019s approach to product development also reflects a refusal to compromise.<\/p>\n
Retailers asked the company to enter the booming matcha market \u2013 a powdered green tea that originated from Japan \u2013 but Sri Lanka doesn\u2019t produce it. For Fernando, that was reason enough to decline.<\/p>\n
\u201cWe would be irresponsible if we went to market with it,\u201d he said. \u201cIt\u2019s not ours.\u201d<\/p>\n
Instead, Dilmah has focused on what it can grow beyond tea \u2013 such as Ceylon cinnamon \u2013 and kept its product lines focused on provenance, not opportunism.<\/p>\n
AI that strengthens tradition<\/p>\n
Like many companies, Dilmah is investing in AI \u2013 but primarily as a tool to augment, not replace, human capability.<\/p>\n
On its plantations, AI is used for precision agriculture. \u201cWe send out a drone, we analyse the pictures,\u201d Fernando explained. Using near-field and multispectral analysis, the system identifies where nitrogen efficiency is low, where water stress appears, and which fields require attention. \u201cIt optimises efficiency,\u201d he said \u2013 helping achieve more targeted, less wasteful intervention across the estates.<\/p>\n
In logistics, AI models predict demand patterns, helping consolidate orders and reduce unnecessary shipments. It\u2019s a data-driven way to reduce both economic and environmental waste.<\/p>\n
Even in tea tasting \u2013 a tradition Dilmah treats with deep respect \u2013 AI is beginning to play a supporting role. Dilmah\u2019s team tastes around 12,000 teas each week, selecting only the best for its range.<\/p>\n
\u201cWe use AI to augment that,\u201d Fernando said. Liquor from each batch is run through hyperspectral analysis, creating detailed flavour profiles. The goal is to \u201ccreate a flavour map\u201d of the many terroirs across the island. \u201cIt\u2019s not a replacement for tasters, but another element to support them in their evaluation.\u201d<\/p>\n
In a global market where it\u2019s becoming easier to dilute principles than hold them, Dilmah has built a business by refusing to compromise.<\/p>\n
Thirty years after Merrill Fernando first invited New Zealanders to \u201cDo try it\u201d, the line still resonates \u2013 not only as a tagline for tea, but as a challenge to the business world.<\/p>\n
Tim McCready joined the Asia New Zealand Foundation\u2019s delegation to Sri Lanka.<\/p>\n","protected":false},"excerpt":{"rendered":"\u201cTraditionally tea, coffee, and cocoa were bought in bulk, blended offshore, and sold for big profits while producers…\n","protected":false},"author":2,"featured_media":184392,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[138,116577,116579,25726,116578,221,78,111,139,69,90,116580,22858,61,28066,9342,377],"class_list":["post-184391","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-business","tag-dilhan","tag-dilmah","tag-dynamic","tag-fernando","tag-how","tag-in","tag-new-zealand","tag-newzealand","tag-nz","tag-on","tag-profitfirst","tag-stays","tag-to","tag-true","tag-values","tag-world"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/184391","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=184391"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/184391\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/184392"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=184391"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=184391"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=184391"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}