13.11.2012 Views

News - Finlays

News - Finlays

News - Finlays

SHOW MORE
SHOW LESS

Create successful ePaper yourself

Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.

Autumn/Winter ’06<br />

Volume 42/No.2<br />

Launching Our New Identity


Contents<br />

Articles<br />

View from the MD’s Desk 4<br />

Rupert Hogg charts a fundamental process of change within<br />

the Group’s structure and communications systems.<br />

Rethinking the Brand 6<br />

Creating a consistent look and feel for all our businesses.<br />

Project Lily 10<br />

Flowers go East.<br />

The Interaction Factor 11<br />

JF (Colombo) moves Human Resources up the agenda.<br />

Open Sesame! 12<br />

A dramatic new look for 186 Vauxhall Street, Colombo.<br />

Linking the Coffee Chain 14<br />

‘Our purpose is to serve our farmers’: a fresh view of<br />

the Colombian market.<br />

‘A Special Place in the Heart’ 16<br />

Revisiting the High Range, ‘a jewel in the former Finlay crown’.<br />

Pensioners’ Reunion 18<br />

Friends and former colleagues catch up.<br />

<strong>News</strong><br />

Head Office 19<br />

Tea Estates 19<br />

Tea Trading 22<br />

Tea Extracts 23<br />

Beverages 23<br />

Flowers 26<br />

Sri Lanka 27<br />

US 28<br />

Pakistan 29<br />

Announcements<br />

Births & Marriages 30<br />

Deaths inside back cover<br />

Front Cover A fresh new look for <strong>Finlays</strong>, but tea remains a constant.<br />

Inside Front Cover Roses, Flowers' primary crop, sleeved and ready for shipment.<br />

Back Cover Instant identification, from London to Nanjing: a soluble tea product sports<br />

our new logo.<br />

3


4<br />

View from the MD’s Desk Rupert Hogg<br />

The decision to make this move has not<br />

been taken lightly. <strong>Finlays</strong> is an old and<br />

venerable Scottish company, established<br />

as long ago as 1750, only five years after<br />

the battle of Culloden. During much of<br />

the ensuing 250 years the company<br />

has played a prominent role in the civic<br />

and commercial affairs of the city of<br />

Glasgow as well in the communities of<br />

Catrine and Deanston.<br />

However, we have not had a Scottish-based<br />

operational business for a decade and the<br />

larger of those former businesses were<br />

closed or sold in the decades prior<br />

to that. It is also the case that many of<br />

the smaller businesses that were started<br />

during the same period, such as Flowers,<br />

Tea Trading and Tea Extracts, have grown or<br />

evolved considerably to become significant<br />

businesses in their own right and have real<br />

prospects for rapid growth.<br />

First steps into China: the new joint venture tea extracts<br />

plant at Nanjing takes shape. Tony Barcroft (r) is seen here<br />

with George Chan (l), Director <strong>Finlays</strong> Hong Kong and<br />

David Jiang, Chairman of the Damin International Group.<br />

There is much going on at present, both within James Finlay<br />

and the broader markets in which we operate; I will make<br />

mention of some of these trends later in this article. However,<br />

without question, the most important piece of news that I have<br />

to report is tinged with sadness: that is the fact that the Head<br />

Office and Glasgow operations of James Finlay Limited are to<br />

move to London as of the middle of next year.<br />

These businesses are now led and managed<br />

from London. In addition, as some of the<br />

articles in this edition may illustrate, many<br />

of the competitive and consumer trends to<br />

which the individual group companies<br />

identify and respond now require a far<br />

greater degree of coordination across the<br />

Group than has been the case in the past.<br />

Thus, the driving thrust behind the decision<br />

to move the head office closer to some of<br />

our subsidiaries is underpinned by the<br />

desire to improve our ability to coordinate<br />

and communicate internally and therefore<br />

to improve the products and services that<br />

we offer our customers externally.<br />

That is the rationale behind the decision to<br />

move the head office to London and that is<br />

what we intend to achieve by so doing.<br />

However, none of this diminishes the fact<br />

that the move represents the end of an era<br />

and that, more importantly, it is likely to<br />

mean redundancies for the great majority of<br />

the current team that have worked in the<br />

Glasgow office and contributed so much to<br />

<strong>Finlays</strong>. I can only state that the Directors<br />

and Shareholders appreciate this and that<br />

the writing of this article offers me the<br />

opportunity to publicly thank those<br />

concerned for that contribution and for<br />

their continued support until the transition<br />

is complete.<br />

I hope that the reader will notice that this<br />

edition of <strong>Finlays</strong> Magazine has a new look<br />

and that the traditional tea leaf motif has<br />

evolved too. These changes result from a<br />

re-branding exercise that is described<br />

elsewhere in this edition (page 6).<br />

While the outcome may be visually striking,<br />

the exercise itself is but a logical step in a<br />

more fundamental process of change<br />

within <strong>Finlays</strong>.<br />

The first objective has been to move<br />

towards a functional and divisional<br />

structure and away from the Group’s<br />

traditional geographic basis. This process is<br />

incomplete as yet but, as an indication,<br />

several of the subsidiary businesses now<br />

have Managing Directors who are<br />

responsible for all of the activities of their<br />

division on a global basis, a much simpler<br />

and more customer-focused proposition.<br />

The second objective, to which I have<br />

already referred, comes from within the<br />

Group itself: the need for the Group to be<br />

more cohesive and coordinated in its<br />

approach to the market and to our major<br />

customers on issues that impact us all and<br />

which are important to that wider customer<br />

base. From a communications perspective,<br />

the inference of such trends is obvious; we<br />

need a common look and feel across the<br />

Group and we need to become more<br />

uniform and consistent in the way in which<br />

we present ourselves. I believe that this<br />

exercise has managed that evolution well<br />

and injected a desirable dose of freshness<br />

and modernity to our ‘look’ in the process.<br />

<strong>Finlays</strong> has a fine record for social and<br />

environmental responsibility; I hope that<br />

what we do on the ground demonstrates<br />

that there is real substance behind such a<br />

claim. To a great degree, the Fairtrade<br />

accreditation scheme, of which many<br />

consumers are aware, acknowledges these<br />

credentials. All of our flower farms and<br />

some of our tea estates have either obtained<br />

or are in the final stages of obtaining


Tea Estates Tea Trading Tea Extracts Beverages Flowers Logistics Services<br />

Kenya UK<br />

Tea<br />

Decaffeination<br />

UK<br />

UK UK<br />

Uganda<br />

Kenya<br />

China<br />

Sri Lanka Kenya<br />

Sri Lanka<br />

Malawi<br />

USA<br />

China<br />

USA<br />

Gulf<br />

Vietnam<br />

Kenya<br />

Fairtrade accreditation and they also<br />

comply with a series of other bodies that<br />

audit against material evidence of social<br />

and environmental standards.<br />

This is important for <strong>Finlays</strong>, not least<br />

because it resonates with our values and<br />

beliefs, but also because it is important to<br />

our customers; they take their<br />

responsibilities seriously in this regard. It is<br />

quite clear that they wish to source<br />

products from suppliers who can<br />

demonstrate a proven track record and who<br />

are genuinely interested in improving<br />

further in these areas; we are placing<br />

additional resources and a high priority on<br />

our Corporate Social Responsibility<br />

programme as a result.<br />

The current debate on climate change adds<br />

further impetus in this regard. There is<br />

broad consensus within <strong>Finlays</strong> that man’s<br />

activities have influenced and continue to<br />

influence the world’s climate and there is a<br />

strong desire to ensure that we do our bit<br />

to minimise our own impact. It is equally<br />

important that any plans that we develop<br />

are informed by fact and we have<br />

commissioned a Group-wide study to<br />

determine <strong>Finlays</strong> ‘carbon footprint’: what<br />

we emit but also what we might absorb, and<br />

to give us a quantifiable baseline from<br />

which to improve. I am confident we can<br />

make real progress here too; opportunites<br />

in the area of clean energy provision is one<br />

example of where work is already at a<br />

relatively advanced stage.<br />

From an operational and business<br />

development perspective there is activity<br />

aplenty too. The year 2007 will mark the<br />

Omniflora<br />

Germany<br />

USA<br />

Jetflowers<br />

Kenya<br />

Sri Lanka<br />

Temperature<br />

Controlled<br />

Logistics<br />

USA<br />

Inventory<br />

Management<br />

first stage of the Group’s expansion into<br />

China. There are two projects of note: the<br />

first, the establishment of a flower farm in<br />

Kunming is reported on (page 10).<br />

Sri Lanka<br />

Agencies<br />

Environmental<br />

Services<br />

Insurance<br />

Pakistan<br />

The second initiative is the establishment of<br />

a joint venture with the Damin Group to<br />

build and operate a tea extracts plant in<br />

Nanjing. The Tea Extracts division has<br />

worked closely and productively with<br />

Damin over the last two years. In addition<br />

to other businesses, Damin International, a<br />

Xiamen-based company, is the largest<br />

producer of tea extracts in China and has<br />

expanded rapidly and successfully in the<br />

domestic PRC market. <strong>Finlays</strong> and Damin<br />

have had a joint sales agreement to<br />

promote and sell each other’s products in<br />

their respective markets for some time. The<br />

new plant in Nanjing will allow both parties<br />

to strengthen their ties and to offer a<br />

broader product range to their mutual<br />

customers. The plant is due to be<br />

commissioned in 2007.<br />

2006 has been a satisfactory year for<br />

<strong>Finlays</strong>: the results reflect a mix of fortunes<br />

across the various companies but, overall,<br />

the highs outweigh the lows and we have<br />

made real progress against our business<br />

plans in all of the subsidiaries.<br />

It only remains for me to acknowledge that<br />

Pat Lockett, who has held the position of<br />

Group Finance Director for the last 11 years,<br />

has decided that he would prefer not to<br />

make the move to London and has instead<br />

opted to leave <strong>Finlays</strong> at the end of this<br />

year. This, I hope and suspect, does not<br />

mean that his active life in Scottish business<br />

circles will not continue. Pat has held an<br />

instrumental position over a period of<br />

<strong>Finlays</strong>' move away from its traditional<br />

geographic basis towards a functional and<br />

divisional structure is reflected by its new and<br />

consistent brand image.<br />

great change,<br />

encompassing the<br />

change of<br />

ownership and the<br />

transition from<br />

being a public to a<br />

private company;<br />

also the rapid<br />

development of<br />

many of the<br />

Pat Lockett<br />

subsidiary<br />

businesses.<br />

The Group has benefited from his presence<br />

and I know that he will be missed on a<br />

personal basis by many employees, past<br />

and present. Pat has promised to write an<br />

article for the next edition, reflecting on<br />

his time with the company; in the meantime<br />

we send him and Erica our best wishes for<br />

the future.<br />

5


6<br />

Rethinking the Brand Simon Large<br />

At the beginning of 2006 we decided to conduct<br />

a review of our brand. That is, we wanted to take<br />

a long hard look at how and what we communicate<br />

to our employees, customers and stakeholders,<br />

in order to understand how we are perceived<br />

and what we stand for.<br />

Having called upon the services of<br />

a London-based brand consultancy –<br />

FutureBrand – and many people<br />

across different parts of the business,<br />

it became immediately apparent<br />

that our current visual identity was<br />

inconsistently applied. Across the<br />

globe we have different company<br />

names, logos, websites, typefaces,<br />

taglines and signage (see above).<br />

This was delivering an inconsistent<br />

message and tone of voice.<br />

One of the main reasons for the<br />

lack of consistency was the limited<br />

guidelines and advice previously<br />

provided to the Group on the<br />

application and delivery of a clear,<br />

single, visual message. With the<br />

growth, expansion and increasing<br />

competition that we are experiencing,<br />

it was imperative to re-establish our<br />

brand’s personality, institute a<br />

clearer set of values and develop<br />

a new and unified visual brand identity.<br />

To start with, a detailed questionnaire<br />

was circulated to different people<br />

across the group, and supported<br />

with creative workshops. This work<br />

not only helped to evaluate us against<br />

our competition and establish what<br />

makes us unique, it enabled us to<br />

agree what we should stand for,<br />

going forward.<br />

Three main themes arose from<br />

this exploratory phase. First, we<br />

established that our rich heritage<br />

and tradition is fundamental to<br />

what we are today, and we are<br />

unanimously proud of it.<br />

Secondly, our knowledge and our<br />

passion for our products are equally<br />

prevalent. Thirdly, the care we<br />

have for the environment, our<br />

people and our communities is<br />

integral to our organisation and<br />

the way we behave. These values<br />

were considered along with our<br />

natural, contemporary and<br />

multicultural personality to inform<br />

and shape our new visual brand<br />

identity and the way we will<br />

communicate in the future.


Going forward, we will be identified<br />

as a single brand, with a single name –<br />

<strong>Finlays</strong> – which will be applied right<br />

across the Group. This conveys a<br />

strong, simple and consistent branded<br />

message to all stakeholders: that we<br />

are proud of the <strong>Finlays</strong> name and all<br />

that it has come to stand for. Therefore,<br />

all functions within the business, from<br />

Tea Extracts, to Flowers to Logistics,<br />

will adopt the ‘<strong>Finlays</strong>’ brand.<br />

We have created a new visual identity<br />

that’s fresh and contemporary, that will<br />

be consistently applied across all<br />

touchpoints, and supported with a<br />

set of clear and comprehensive<br />

guidelines. The visual identity still<br />

retains strong links with our heritage<br />

and exudes naturalness through a<br />

core green colour palette.<br />

One of the main drivers for refreshing<br />

our visual identity was our current<br />

corporate logo. Despite the fact that<br />

the tea leaf icon is representative<br />

of our heritage and experience in<br />

cultivating, distributing and packaging<br />

tea, it is not distinctive (many companies<br />

now have tea leaf logos), and no<br />

longer accurately reflects our diverse<br />

business functions. Our new logo is<br />

unique, contemporary and impactful,<br />

and more aligned with all our<br />

business divisions.<br />

Continued overleaf...<br />

7


8<br />

Pullout to go in here lorem ipsum<br />

dolor consequet, lorem ipsum alore.<br />

Support headline in here lorem ips<br />

dol nommy et. Nommy esqueirtes<br />

rioeters et. Lorem ipsum dolor con,<br />

lorem ipsum et alore.<br />

Introduction to go here era eget orcit leo. Lorem ipsum dolor conus, volpat<br />

sed loremipsumet alore. Mauis amety eget san eget orci. Sed sed nunc<br />

erat laor congue arcute tempor pulvi dolor placer tin sedent sagitis imperdie.<br />

Introduction to go here era eget orcit leo. Lorem ipsum dolor conus, volpat<br />

sed loremipsumet alore. Mauis amety eget san eget orci. Sed sed nunc<br />

rcute tempor pulvi dolor placer tin sedent sagitis imperdie.<br />

Introduction to go here era eget orcit leo. Lorem ipsum dolor conus, volpat<br />

sed loremipsumet alore. Mauis amety eget san eget orci. Sed sed n<br />

Introduction to go here era eget orcit leo. Lorem ipsum dolor conus, volpat<br />

sed loremipsumet alore. Mauis amety eget san eget orci. Sed sed nunc<br />

erat laor congue arcute tempor pulvi dolor placer tin sedent sagitis imperdie.<br />

Introduction to go here era eget orcit leo. Lorem ipsum dolor conus, volpat<br />

sed loremipsumet alore. Mauis amety eget san.<br />

To enable our offices and employees<br />

to create and develop platforms<br />

and materials for communications,<br />

we have created a range of applications<br />

along with our new brand guidelines.<br />

This includes new corporate<br />

stationery, printed literature,<br />

signage, vehicle livery and<br />

photography (which will be<br />

expanded in the future), all of<br />

which have the consistency that<br />

was previously lacking. We have<br />

also established clear standards<br />

for the application of the Swire<br />

brand to endorse the <strong>Finlays</strong><br />

brand. Again this was an area<br />

which had previously been very<br />

erratic due to the lack of guidelines.


We have created a distinctive<br />

visual identity for our Flowers,<br />

Services and Logistics businesses,<br />

in order to differentiate them<br />

from the tea and beverages<br />

businesses within the Group and<br />

provide them with a stronger<br />

presence within their markets.<br />

They retain the Group brand<br />

identity, but feature colour<br />

palettes that are inspired by their<br />

products, services and<br />

environments. The Flowers visual<br />

identity – comprising warm tones<br />

– is inspired by the flowers we<br />

grow and nurture on our estates<br />

in Kenya, whilst the colour palette<br />

for our Services and Logistics<br />

businesses – comprising cool tones –<br />

has been inspired by the<br />

functions of the cold storage and<br />

logistics business.<br />

Developing our new visual identity<br />

and creating the guidelines was<br />

the first necessary stage in<br />

re-launching the brand. The next<br />

crucial steps will be its consistent<br />

implementation across the Group,<br />

as well as our future adherence to<br />

these new standards.<br />

Simon Large<br />

Commercial Director<br />

Temperature<br />

Controlled<br />

Logistics<br />

Site A<br />

Support copy would go in this area<br />

lorem ipsum dolor consequet<br />

Temperature<br />

Controlled<br />

Logistics<br />

www.finlays.com<br />

Support copy would go in this area<br />

lorem ipsum dolor consequet<br />

Pullout to go in here lorem ipsum<br />

dolor consequet, lorem ipsum alore.<br />

Support headline in here lorem ips<br />

dol nommy et. Nommy esqueirtes<br />

rioeters et. Lorem ipsum dolor con,<br />

lorem ipsum et alore.<br />

Support copy would go in this area<br />

lorem ipsum dolor consequet<br />

Introduction to go here era<br />

eget orcit leo. Lorem ipsum<br />

dolor conus, volpat sed lorem<br />

ipsumet alore. Mauis amety<br />

eget san eget orci. Sed sed nunc<br />

erat laor congue arcute tempor<br />

pulvi dolor placer tin sedent<br />

sagitis imperdie.<br />

Headline to go here<br />

Introduction to go here era<br />

Lorem ipsum dolor conus,<br />

lorem ipsum et alore mauis<br />

eget orci. Sed sed nunc erat<br />

arcu tempor pulvinar dolor<br />

Vivamu sagitis imperdie.<br />

Nunc ut velit non neque placerat ullamcorper. Mauris eget orci. Sed adipiscing. Integer metus. Aliquam ante leo, volutpat a, mollis<br />

Sed sed nunc et arcu tempor pulvinar. Vivamus sagittis imperdiet sed, porta id, ipsum. Quisque neque leo, aliquam faucibus, gravida<br />

augue. Aenean urna. Aenean id sem. Sed a mauris sed mauris et, nonummy id, justo. In dolor nisi, vehicula id, consequat at,<br />

condimentum faucibus. Ut nunc sapien, imperdiet non, vehicula bibendum eget, odio. Vestibulum et nibh. Suspendisse porttitor<br />

eget, dignissim sit amet, massa. Aliquam ac mi id erat eleifend accumsan ante. Integer ante lectus, imperdiet eu, congue eget,<br />

consequat. Phasellus feugiat dolor sed lorem. Nam consectetuer sagittis sit amet, lacus. Curabitur pellentesque egestas purus. Nam<br />

velit quis pede. Maecenas convallis libero. Suspendisse potenti. erat. Maecenas eu tortor. Curabitur lobortis aliquet augue. Curabitur<br />

Praesent massa purus, convallis euismod, placerat ac, tristique vel, laoreet justo quis ipsum. Sed pede massa, vulputate eget, tincidunt<br />

purus. Suspendisse potenti. Sed molestie, metus rhoncus vehicula sed, vulputate a, orci.<br />

porta, risus nibh pretium eros, id blandit leo nisi non erat.<br />

Praesent sed metus consequat nisl iaculis euismod. Aliquam erat<br />

Praesent sed metus consequat nisl iaculis euismod. Aliquam erat volutpat. Nulla facilisi. Suspendisse enim felis, consequat porttitor,<br />

volutpat. Nulla facilisi. Suspendisse enim felis, consequat porttitor, vehicula sit amet, eleifend sit amet, orci. Suspendisse potenti.<br />

vehicula sit amet, eleifend sit amet, orci. Suspendisse potenti. Donec Donec magna magna, sodales sed, facilisis id, dignissim vel, turpis.<br />

magna magna, sodales sed, facilisis id, dignissim vel, turpis. Sed nisl Sed nisl elit, lobortis eget, laoreet eu, egestas id, magna. Donec<br />

elit, lobortis eget, laoreet eu, egestas id, magna.<br />

feugiat, erat in ullamcorper porta, sem lacus lobortis quam, a<br />

tempus justo mi id urna. Suspendisse nulla. Donec varius aliquet<br />

Nunc ut velit non neque placerat ullamcorper. Mauris eget orci. pede. Proin viverra ipsum eu risus. Aliquam erat volutpat. Donec<br />

Sed sed nunc et arcu tempor pulvinar. Vivamus sagittis imperdiet adipiscing dolor in massa.<br />

augue. Aenean urna. Aenean id sem. Sed a mauris sed mauris<br />

condimentum faucibus. Ut nunc sapien, imperdiet non, vehicula Praesent sed metus consequat nisl iaculis euismod. Aliquam erat<br />

eget, dignissim sit amet, massa. Aliquam ac mi id erat eleifend volutpat. Nulla facilisi. Suspendisse enim felis, consequat porttitor,<br />

consequat. Phasellus feugiat dolor sed lorem. Nam consectetuer vehicula sit amet, eleifend sit amet, orci. Suspendisse potenti.<br />

velit quis pede. Maecenas convallis libero. Suspendisse potenti. Donec magna magna, sodales sed, facilisis id, dignissim vel, turpis.<br />

Praesent massa purus, convallis euismod, placerat ac, tristique vel, Sed nisl elit, lobortis eget, laoreet eu, egestas id, magna.<br />

purus. Suspendisse potenti. Sed molestie, metus rhoncus vehicula<br />

porta, risus nibh pretium eros, id blandit leo nisi non erat.<br />

Praesent sed metus consequat nisl iaculis euismod. Aliquam erat<br />

volutpat. Nulla facilisi. Suspendisse enim felis, consequat porttitor,<br />

vehicula sit amet, eleifend sit amet, orci. Suspendisse potenti. Donec<br />

magna magna, sodales sed, facilisis id, dignissim vel, turpis. Sed nisl<br />

elit, lobortis eget, laoreet eu, egestas id, magna. Donec feugiat, erat<br />

in ullamcorper porta, sem lacus lobortis quam, a tempus justo mi id<br />

urna. Suspendisse nulla. Donec varius aliquet pede. Proin viverra<br />

ipsum eu risus. Aliquam erat volutpat. Donec adipiscing dolor in<br />

massa.<br />

9


10<br />

Project Lily Nev Harries<br />

In 1996 Finlay Flowers established a joint<br />

venture with Hilverda Plant Technology, a<br />

well known and respected Dutch company<br />

specialising in the breeding and<br />

propagation of carnation, alstroemeria and<br />

limonium plants. The joint venture is<br />

involved in the production of standard<br />

and spray carnation cuttings here on our<br />

tea estates in Kericho. From a production<br />

area of 3 Ha, over 20 million cuttings are<br />

produced annually, of which a substantial<br />

proportion are exported to international<br />

markets including Japan.<br />

In an increasingly competitive market,<br />

rising airfreight rates represent a major<br />

cost. As a result, Hilverda are considering<br />

setting up satellite production facilities<br />

closer to key markets and have been<br />

exploring the potential of establishing a<br />

production facility in China. Since the start<br />

of our joint venture the relationship<br />

between our two companies has grown from<br />

strength to strength; Hilverda approached<br />

<strong>Finlays</strong> last year with a proposal to develop<br />

a project together in China where the<br />

former would operate a cuttings production<br />

facility in partnership with a <strong>Finlays</strong> cut<br />

flower project. A visit to Kunming was<br />

arranged in April this year when Tim<br />

Blackburn and I accompanied Hilverda<br />

Directors Jan Hilverda and Marius Tas and<br />

their China Representative Pieter Strooper.<br />

Kunming is the capital of Yunnan province,<br />

located in the south west of China. The<br />

Province has been at the forefront of cut<br />

flower development in China. Due to a<br />

unique combination of climate, topography<br />

and altitude, which enable a wide variety of<br />

flowers to be grown year round, the area<br />

surrounding Kunming and nearby Yuxi<br />

cities is ideally suited for cut flower<br />

production. The growth in this sector has<br />

been very rapid in Yunnan. Amazingly, the<br />

first farms were started as recently as the<br />

late ’eighties; yet, today, there are over<br />

4,000 Ha of flowers cultivated in this<br />

region, accounting for over 50% of China’s<br />

total cut flower production. In 2002 alone<br />

over 2 billion flowers were produced.<br />

The ten-year old joint<br />

venture between<br />

Finlay Flowers and<br />

Hilverda Plant<br />

Technology has put<br />

out a promising new<br />

shoot. Nev Harries,<br />

Assistant Executive<br />

Finlay Flowers,<br />

goes East.<br />

Yoshikazu Suzuki (Fuji-Plants), Yuuki Ban (Florist), Jan<br />

Hilverda, Pieter Strooper (Hilverda B.V.), Yoshihiro Sugai<br />

(Nissho Iwai), Marius Tas (Hilverda B.V.), Tim Blackburn,<br />

Nev Harries (<strong>Finlays</strong>) and representatives of Yingmao.<br />

The rapid development of the domestic<br />

market and proximity to regional markets,<br />

Japan in particular, are key factors in the<br />

success of the proposed venture, where<br />

<strong>Finlays</strong> would be looking to produce<br />

certified, premium quality cut flowers for<br />

niche markets. With this in mind we visited<br />

several farms to review operations. Whilst in<br />

Kenya it is not uncommon for flower farms<br />

to be in excess of 50 hectares, the majority<br />

of farms in Yunnan are family-run<br />

smallholdings, varying in size from a few<br />

hundred square metres up to half a hectare<br />

with very few projects over ten hectares.<br />

The visit highlighted the potential of this<br />

venture and the significant advantages<br />

which our Kenyan experience could afford.<br />

Since this initial visit we have been working<br />

closely with our Swire colleagues in Beijing<br />

and Hong Kong and with representatives of<br />

the Yunnan Flower Association to identify<br />

potential locations for the development of a<br />

commercial project. At this stage two<br />

potential sites have been identified with the<br />

preferred candidate situated approximately<br />

one hour’s drive northwest of Kunming in<br />

the Songming area. In addition to excellent<br />

road and utilities infrastructure, an<br />

additional advantage of this potential site is<br />

that the new Kunming Airport, due to be<br />

completed in 2009, is located on the<br />

Songming side of the city, presenting rapid<br />

and convenient access to market. At the<br />

time of writing, a further visit to Kunming<br />

was planned for November.


The Interaction Factor Mithraka Fernando<br />

A conscious effort has been made to foster<br />

open, two-way communication through a<br />

number of initiatives. For the past 15<br />

months, a monthly Core Team Brief by the<br />

Chairman has successfully disseminated<br />

important news and information to the<br />

Executive Committee. Thereafter, each<br />

divisional head adds a local brief and<br />

communicates the findings to all staff.<br />

Recently this process was extended to<br />

cover all manual workers as well. At the<br />

local brief, employees are encouraged to<br />

ask questions. Those that divisional heads<br />

are unable to answer are referred to the<br />

directors for answers.<br />

The new Chairman Kumar Jayasuriya, who<br />

assumed office in April this year, has<br />

initiated discussions with staff officers,<br />

sharing his vision for the Company and also<br />

listening to their ideas and answering<br />

questions. It is hoped to maintain this new<br />

line of open communication by repeating<br />

the exercise twice a year.<br />

A suggestion scheme, branded<br />

“Brainwaves”, was launched in May, with an<br />

encouraging 118 suggestions being received.<br />

Cash prizes were awarded to those who<br />

made the eight best suggestions which the<br />

Company felt able to implement.<br />

Special Brainwaves boxes have been<br />

installed prominently in every location<br />

to make the submission process simple.<br />

The competition will be held twice a year<br />

in future, with the winners being<br />

rewarded, recognized and featured in<br />

the Company <strong>News</strong>letter.<br />

A formal grievance-handling process is in<br />

the development stage; this, it is hoped, will<br />

provide employees with a channel through<br />

which complaints can be addressed and<br />

minor issues prevented from escalating into<br />

bigger problems. In the interim, anyone with<br />

a grievance has been requested to write to<br />

the HR division; he or she has the promise<br />

of a written response after consultations<br />

with the necessary personnel.<br />

Beginning with the October 2006 issue, the<br />

company newsletter <strong>Finlays</strong> <strong>News</strong> aims to<br />

reach out to the bulk of the workforce by<br />

publishing two pages in Sinhala. The<br />

circulation of the newsletter was also<br />

increased with every single employee<br />

receiving an individual copy. Depending on<br />

feedback, the next step is likely to be the<br />

launch of a separate, Sinhala language<br />

publication, tailor-made for its readership.<br />

The newsletter, in addition to disseminating<br />

information, also acts as a forum where<br />

employees are able to express their views<br />

and exercise their creative talents. Typically,<br />

employees would take the newsletter home,<br />

offering management a means by which to<br />

communicate with the former’s family<br />

members as well.<br />

The resounding success of the inaugural<br />

<strong>Finlays</strong> Kiddies’ Art Competition in 2005<br />

has made the event an annual feature,<br />

providing an opportunity for children of<br />

all employees, whether director or worker,<br />

to sit together and take part in the fun as<br />

members of a single family. The featuring<br />

of winning entries as Christmas cards acts<br />

as an added incentive for employees to<br />

enter their children for the competition.<br />

The traditional year-end party, hitherto<br />

confined to higher-ranking staff, will be<br />

thrown open, from this year onwards, to<br />

cover every single employee of the Group.<br />

The Company hired an entertainment<br />

park in Colombo for this year’s event at<br />

which around 1500 <strong>Finlays</strong> employees and<br />

their family members converged (see page<br />

27). Other Group-wide sports and<br />

recreational activities have included a<br />

six-a-side cricket tournament in July and a<br />

Sports Carnival in September where<br />

For over a century James Finlay<br />

& Co. (Colombo) has focused on<br />

steady growth. Today, says Mithraka<br />

Fernando, Head of Human Resources<br />

Development, ambitious new targets<br />

and objectives centre on the<br />

workforce, currently identified as<br />

the key element in transforming<br />

the Company’s future.<br />

The Childrens’ Art Competition: fun for one big family.<br />

employees were given the opportunity to<br />

display their sporting prowess.<br />

The refurbishment of the Colombo office<br />

(see page 12) has been carried out in line<br />

with the open office concept - breaking<br />

down physical barriers and providing an<br />

environment which enables people to<br />

interact and work across divisions. The<br />

concept initially resulted in culture shock;<br />

most employees were used to working in<br />

office environments with rooms and<br />

cubicles! However, it is hoped that the<br />

obvious advantages of the open office<br />

system will, in the long term, foster<br />

increased integration and interaction.<br />

The training and development activities of<br />

the Company have been accelerated, the<br />

emphasis being on creating a ‘learning’<br />

organization. Two noteworthy initiatives in<br />

this regard were the JF Management<br />

Proficiency Program and the JF Certificate in<br />

Basic Management which saw around 50<br />

managers and executives taken through an<br />

eight-session, management development<br />

program. Group assignments were set, with<br />

each group having to write a report on<br />

<strong>Finlays</strong>-specific topics and to make a<br />

presentation to the Executive Committee.<br />

Ongoing training initiatives for all<br />

categories include productivity based<br />

training, safety and health, and a Groupwide<br />

awareness program on HIV/AIDS. A<br />

guest lecture series was also inaugurated so<br />

that employees in the executive grade could<br />

learn from the success stories of those in<br />

business as well as other areas.<br />

In keeping with the Company’s tag line:<br />

“Enriched by the past, transforming the<br />

future”, the HR initiatives described above<br />

will, it is hoped, transform working life for<br />

the people in whose hands lies <strong>Finlays</strong>’<br />

exciting future.<br />

11


12<br />

Designing an open plan office to promote greater<br />

interaction between <strong>Finlays</strong> Colombo staff was the<br />

challenge recently undertaken by Srinath Jayasuriya,<br />

Manager Buildings Division. He and his team had<br />

previously done re-modeling jobs on minor sections<br />

of the premises, but here was something far more<br />

exciting. The results, says Srinath, were to prove<br />

well beyond expectations.


Open Sesame! Srinath Jayasuriya<br />

I count myself fortunate in having been<br />

chosen to coordinate almost all of such<br />

transformations at 186 Vauxhall Street,<br />

between my stints at the Tea Warehouse<br />

and stage one of the Cold Storage, located<br />

in Welisara. Looking back: in 2002, what<br />

had been the tea blending floor for many<br />

years underwent a dramatic change in<br />

becoming the present office of Cathay<br />

Pacific, our Airline Division. Two years<br />

later the upper floor of the same building,<br />

having languished as storage space for the<br />

paper sacks which replaced the traditional<br />

tea chests, was transformed for renting as<br />

top-of-the-range office space.<br />

So, in April this year, I and the handful<br />

of colleagues who formed the Buildings<br />

Department, took it upon ourselves to<br />

re-seat virtually all of the divisions in<br />

Colombo on two floors of the same<br />

main office building.<br />

Our new chairman, Kumar Jayasuriya,<br />

required a model, open-plan office, to<br />

promote staff interaction and<br />

communication, a concept that had<br />

already shaped many of the business<br />

houses in Colombo.<br />

Contracting out the various tasks was<br />

quickly done but it took weeks to work out<br />

when the last person would take his seat.<br />

The logistics were very demanding; given<br />

the fact that some people already<br />

working on the ground floor were<br />

awaiting relocation to the floor above,<br />

the refurbishment had to be tackled in<br />

two stages.<br />

Noise, dust and the lack of air conditioning<br />

were potential irritants but our colleagues<br />

deserve high praise for the great degree of<br />

tolerance they displayed towards me and<br />

my support staff.<br />

The supplier of furniture to <strong>Finlays</strong> for<br />

many years produced drawing after<br />

drawing, determined, with every change, to<br />

achieve an ideal outcome. The final tally, for<br />

both floors, was a mind-blowing 30<br />

drawings. I even had a temporary desk at<br />

the supplier’s office at which I spent a good<br />

part of the first few days of the project.<br />

We now accommodate six different divisions<br />

of the Company on the ground floor and<br />

seven on the upper floor, each with varying<br />

head counts. Both floors have meeting<br />

rooms in keeping with their particular<br />

requirements, also separate document<br />

storage areas; these latter will subsequently<br />

be racked as their contents grow.<br />

Although the office looks compact with<br />

regard to the positioning of staff, there is<br />

provision for reasonable expansion within<br />

each division The bright, white walls will<br />

soon be hung with prints of the now<br />

diversified Finlay operations. In years gone<br />

by these same walls lent their ears to the<br />

sounds of grading, tasting and sampling,<br />

the main operation here before the Tea<br />

Division re-located to Welisara.<br />

Window blinds are of pinhead perforation<br />

which permits ample daylight and provides<br />

a welcome view of the well laid out garden,<br />

cherished and admired by generations of<br />

Finlay employees. Energy saving fixtures<br />

control the electricity, cutting out the use of<br />

unnecessary artificial lighting.<br />

We did not forget the washrooms which<br />

have been re-modeled to the highest<br />

standards, with the latest in modern<br />

washroom hygiene gadgetry chosen by<br />

Thushara Agus who heads the Healthcare<br />

division. Taking the initiative here,<br />

Thushara led an almost all-ladies team,<br />

which moved into occupation during the<br />

stages of work-in-progress. They even went<br />

to the extent of celebrating the occasion by<br />

organizing a traditional breakfast of milk<br />

rice and sweetmeats for all ‘colleagues to<br />

be’ in this shared working environment.<br />

Among the many other stalwarts who put<br />

their shoulders to the wheel, appreciation is<br />

due to Mithraka Fernando, the Head of HR,<br />

who perfectly timed two workshops on the<br />

‘5S’ method of office procedure for every<br />

one of us. I should also mention the<br />

commitment of the young IT team lead by<br />

Vamadevan Parthiban. During times of night<br />

work, we relied on such knowledgeable<br />

gentlemen as Sudesh Wijethilaka and the<br />

new recruit Nimantha Arambegedera, who<br />

coordinated the cabling works for power,<br />

telephones and computers.<br />

We now run a system of access control<br />

for the office by means of redesigned<br />

Company ID cards which operate on<br />

proximity readers.<br />

With interaction the name of the game, the<br />

tea breaks provide all of us with an<br />

opportunity to meet on the top floor while<br />

preparing our own cups of tea. It’s farewell<br />

to memories of a khaki-clad tea boy pouring<br />

from a kettle! Remarkably, this new form of<br />

tea service has turned out to be popular<br />

with all levels of staff. Another popular<br />

innovation has been the creation of an<br />

office pastry shop in an area with main<br />

road frontage; we now have a place to pick a<br />

lunch or order a birthday cake on behalf of<br />

a colleague.<br />

With the refurbished office up and running<br />

and given plenty of enthusiasm for change,<br />

we are all working in the utmost harmony!<br />

13


Clockwise:<br />

Colombian farmer, Orlando, examining his coffee crop.<br />

Alan Davies (r) gets to work with Expocafe’s chief<br />

taster, Steven Diaz.<br />

Orlando shows the visitors his coffee pulping machine.<br />

Alan with Expocafe’s Trading and Operations Chief,<br />

Alvaro Ramirez.


Linking the Coffee Chain Alan Davies and Michael Pennant-Jones<br />

Finlay Beverages is the largest private label roast and ground coffee packer in<br />

the UK supplying private label coffee to major retailers. Colombia is important<br />

to us, as the single largest origin for our business and a crucial component of<br />

many of our blends. Finlay Beverages purchase over 700mt of Colombian coffee<br />

per annum, and yet staff had little first-hand experience of how the coffee was<br />

processed, sourced and marketed. Coffee Buyer and Blender Alan Davies and<br />

CSR Manager Michael Pennant-Jones set off to explore the coffee chain.<br />

The high Andean mountains stretch from<br />

the borders of Ecuador and Peru in the<br />

South to the Caribbean Sea in the North,<br />

abutting the Pacific Ocean in the West and<br />

the rainforests of the Amazon Basin in the<br />

East. This vast area accommodates a host<br />

of micro climates and soil types which<br />

facilitate the production of a rich and<br />

diverse variety of an important crop for<br />

<strong>Finlays</strong>, coffee.<br />

Colombia is the largest producer of fully<br />

washed arabica coffee in the world, with<br />

an average crop of over 11 million bags<br />

(660,000 mt). The majority of the coffee<br />

that we purchase comes from the Central<br />

Andean growing areas, forming a triangle<br />

cornered by Bogota, Periera and Medellin,<br />

and marketed under the generic name of<br />

“Medellin Excelso”. These plantations are<br />

amongst the oldest in Colombia, being<br />

established in the 19th century; they<br />

produce a full bodied coffee with a nutty<br />

flavour and light acidity.<br />

Our visit took in meetings with the<br />

marketing bodies, the Federation of<br />

National Coffee Growers (FNC) and<br />

Expocafe; the farmers’ representatives from<br />

whom we buy our coffee directly; farmers in<br />

both the Periera and Bogota areas; and the<br />

mills where the coffee is sorted and bagged.<br />

‘Our purpose is to serve our farmers’,<br />

remarked an employee of the FNC during a<br />

presentation at the Federation’s offices.<br />

Typical marketing speak, some might say;<br />

however, after a few days in Colombia we<br />

realised that this philosophy genuinely<br />

underpins the country’s coffee industry. It<br />

explains why Colombia has one of the most<br />

sophisticated and successful smallholder<br />

systems in the world, renowned for its<br />

consistent high quality of coffee.<br />

Founded over 80 years ago, the FNC was set<br />

up to organise small farmers in the coffee<br />

industry. Its ownership is a complex web,<br />

stretching between the farmers, their cooperatives<br />

and mills to ensure that there<br />

are checks and balances at all levels.<br />

This cross-ownership gives a stable<br />

platform but also allows freedom for the<br />

farmer to sell coffee to anyone, and to do<br />

what is best for him. Intense market<br />

competition within a heavily organised<br />

sector, focused at all levels on serving the<br />

farmers, has resulted in growth and huge<br />

benefits for the latter and for the country.<br />

The FNC guarantees not only a minimum<br />

price for Colombian coffee, based on<br />

international markets, but also guarantees<br />

to purchase that coffee at the minimum<br />

price; this ensures that all competitors have<br />

to buy above it. Guaranteeing a minimum<br />

price is not enough to ensure that this<br />

system works; thus, only high quality<br />

coffees can be exported from Colombia,<br />

after first being checked by the FNC.<br />

An amazingly multi-functional organisation,<br />

the FNC not only works as a support and<br />

trading house for coffee, but also<br />

undertakes shipment checks on all coffee<br />

exported, to ensure that nothing of substandard<br />

quality leaves the country.<br />

Additionally, it also works on agricultural<br />

extension, infrastructure projects,<br />

purchasing coffee, trading and shipping<br />

coffee around the world and has<br />

shareholdings in all member co-operatives.<br />

Interestingly, at the time when FNC<br />

purchased 80% of Colombian coffee there<br />

was a realisation that this was not good for<br />

the farmer as there was little competition.<br />

The solution was to set-up another<br />

company, Expocafe, to compete with them<br />

in buying coffee from smallholders. Today<br />

Finlay Beverages source directly from both<br />

these companies.<br />

Overall, we were deeply impressed with the<br />

professionalism and organisation of the<br />

farmers who are truly passionate about<br />

their coffee; also with the excellent levels of<br />

quality control and, at the end of the day,<br />

with a superb range of coffees. It has to be<br />

said Colombian coffee will never taste the<br />

same again.<br />

Orlando, owner of a coffee smallholding on<br />

a mountainside in the Risaralda, took us on<br />

a tour of his property. The coffee grows on<br />

steep slopes, with riparian strips by a<br />

stream; bamboo is planted to absorb the<br />

water and provide building material; there<br />

are a couple of hectares of coffee and<br />

washing and drying areas for the crop, all<br />

laid out with good practices in mind.<br />

On the plateau below, large areas of<br />

grassland now under cattle were, until a few<br />

years ago, largely coffee farms. These are<br />

disappearing not only because the lower<br />

quality of coffee they produce is prone to<br />

disease, but also due to a growing economy<br />

where labour costs have risen substantially.<br />

On Orlando’s farm the extended family is<br />

used to assist at cropping times; and the<br />

personal attention he can give to the bushes<br />

helps keep disease to a minimum and<br />

farming sustainable.<br />

In common with many smallholders,<br />

Orlando is continually investing in his farm;<br />

the standards he maintains compare<br />

favourably with some of the larger farms.<br />

Sustainable practices are well evident, with<br />

minimal use of chemicals through increased<br />

inspection and management of the bushes.<br />

The FNC provides technical support even to<br />

the level of developing mycorrhizas to<br />

replace fertiliser. To support smallholders<br />

like Orlando the FNC have been exploring<br />

product diversification programmes<br />

including the growing of fruit trees,<br />

macadamia nuts, and bamboo for building;<br />

also partnerships with large companies<br />

such as Dole of the USA on plantain.<br />

All this ongoing work and constant<br />

improvement will, hopefully, assist farmers<br />

like Orlando to continue to meet the<br />

expectations of the market, yet allow him to<br />

profit from his investment in and his<br />

attention to a high quality product that is<br />

the mainstay of <strong>Finlays</strong> coffees.<br />

15


16<br />

‘A Special Place in the Heart’ William Henderson<br />

The historic landscape of tea in the Indian<br />

Subcontinent has recently undergone<br />

seismic change. After more than 120<br />

years, <strong>Finlays</strong> called a halt to its<br />

operations in Bangladesh (see our last<br />

edition). Meanwhile, an employee buy-out<br />

by the 12000-strong work force in 2005<br />

once again changed the fortunes of Tata<br />

Tea Limited’s South India Plantation<br />

Division, founded in 1878 by James Finlay<br />

& Co. Ltd., and run by the company until<br />

its Indian estates were finally sold to Tata<br />

in 1982. We asked Bill Henderson, a<br />

former High Range General Manager and<br />

co-author of ‘Facets of a Hundred Years<br />

Planting’, to take a nostalgic look back at<br />

early days in South India’s incomparably<br />

beautiful Kanan Devan Hills, a place<br />

regarded by an earlier generation as the<br />

jewel in the company’s crown.<br />

The original company was formed in 1895<br />

within the area of the Kanan Devan<br />

Concession - some 230 square miles, first<br />

granted in 1877 to one John Daniel Munro.<br />

The area, known as the High Ranges, by<br />

virtue of their wild and rugged nature,<br />

includes Aneimudi, the highest mountain in<br />

India south of the Himalayas. All this was to<br />

be transformed, by generations of<br />

venturesome planters into a veritable<br />

Shangri-la.<br />

Under the Finlay umbrella, former<br />

proprietary plantations were developed and<br />

new extensions opened, initially in rubber,<br />

chinchona and coffee. Life in those times for<br />

both planter and labourer was no sinecure:<br />

travel in and out of the hills was by bullockcart,<br />

horse-back, 'dooly' (litter) or, in<br />

extremis, 'shanks pony'.<br />

Torrential monsoon rains often washed out<br />

bridges and roads. The year 1924 saw a<br />

particularly savage monsoon devastate great<br />

swathes of the district, take many lives and<br />

go down in High Range history as a date<br />

never to be forgotten. The Light Railway had<br />

to be discontinued after extensive damage,<br />

factories were destroyed along with labour<br />

lines, bridges, buildings and people.<br />

The flood nevertheless resulted in the<br />

development of district-wide roads and,<br />

later, an aerial ropeway. These greatly aided<br />

the Munnar township's ability to provide<br />

basic necessities to management, staff and<br />

labour, previously frequently bereft of<br />

supplies for weeks on end.<br />

It also focused attention on the urgent<br />

necessity of improving health measures in<br />

the face of plague and cholera, both<br />

prevalent in the low-country and brought in<br />

by recruited labour, despite the installation<br />

of plague check-posts. The General Hospital,<br />

established in the early days just outside the<br />

town, was completely renovated and moved<br />

into the town centre, while medical facilities<br />

were extended to each plantation. As selfsufficiency<br />

became vital, plans were laid for<br />

the establishment of a farm in the Kundaly<br />

Valley and for a store at Munnar. Thus, the<br />

MSA or Munnar Supply Association came<br />

into being and remains so today.<br />

Finlay's forged ahead with a programme of<br />

improvement; by 1915 there were 16<br />

modernised tea factories, some hydro<br />

driven, others by electricity supplied by two<br />

power houses built in 1900 and 1910 at<br />

Pullivassal and Periakanal; other motive<br />

power derived from turbines and waterdriven<br />

Pelton wheels. Side by side with these


improvements, transportation for the<br />

movement of leaf, teas and machinery<br />

evolved slowly, until the arrival of the<br />

tractor transformed plucking and<br />

processing standards.<br />

The horse, however, was the planter's<br />

mainstay for decades, until motorcycles<br />

became generally available. In 1904, a<br />

Mounted Infantry Company known as The<br />

Southern Provinces Mounted Rifles(SPMR)<br />

was formed; this led to the introduction of<br />

horses to the High Range where they<br />

rapidly became integral not only to<br />

plantation supervision, but to the planters’<br />

social life, facilitating visits to neighbours<br />

and to the Club.<br />

Stories of such visits, some perhaps<br />

apocryphal, abound. One evening, after<br />

much conviviality, two senior planters exited<br />

the Club, mounted up, bade each other<br />

goodnight and rode off - each to wake up<br />

the following morning in the other's<br />

bungalow! From the Club, a path meanders<br />

up through the tea to a junction of several<br />

other routes where it was customary for a<br />

group to pause for a last smoke before<br />

heading back to their respective estates,<br />

their path lit only by the glow of a stirruplantern.<br />

This was, and to this day still is,<br />

called Cigarette Point.<br />

In 1910, an allowance of Rupees 30 was paid<br />

to maintain a horse, but inflationary spirals<br />

took their toll as always and, in 1971, the<br />

last allowance paid was Rupees 300. It is<br />

interesting to note that in the same year,<br />

an Assistant Manager received, on marrying,<br />

only an additional Rupees 125 on his<br />

Dearness Allowance - but then horses<br />

do eat more!<br />

Travel times, of course, decreased with the<br />

introduction of the motorcycle, car, lorry<br />

and tractor. In the 1920s, planters going<br />

from Munnar to play rugby in the Nilgiri<br />

Hills, required to take a week's leave as the<br />

150 mile journey alone took three to four<br />

days. The same journey, by car today is<br />

achieved in about four to five hours.<br />

The early planters may have worked and<br />

played hard but did not neglect the<br />

spiritual. The absence of a church resulted<br />

in one committee minute recording: "One<br />

gentleman remarked that he had heard<br />

discontent voiced at the Club library being<br />

made use of for church services, thus<br />

preventing members from making use of<br />

the billiard room".<br />

A pretty little church was duly built and<br />

consecrated in 1911. Despite inconsistencies<br />

of religious enthusiasm over the years,<br />

Christ Church continues to be used by all<br />

Protestant denominations, including the<br />

local Tamil and Malayali congregations.<br />

New Assistants had always been required to<br />

learn the Tamil language; in the 1950s, the<br />

reward was either Rupees 1000 - or a re-sit;<br />

failure earned a passage home! One such<br />

new entrant, a decade earlier, was advised<br />

by the then General Manager of this<br />

requirement. His manager helpfully chimed<br />

in, "Yes sir, of course. I actually learnt my<br />

Tamil from 'Inge Va' (a local textbook whose<br />

title translates as 'Come Here'). In answer<br />

the GM roared: "I don't care what her name<br />

was. This boy must learn the vernacular!"<br />

The High Range has always held a special<br />

place in the hearts of its planters and was<br />

the envy of many other districts: primarily<br />

for the sheer natural beauty of its situation,<br />

its social life and its renowned hospitality to<br />

all incomers. Those of us who spent long<br />

periods of our lives there were privileged to<br />

have experienced a unique existence.<br />

William Henderson<br />

St Andrews<br />

17


18<br />

Pensioners’ Reunion<br />

The lunch party to celebrate <strong>Finlays</strong> Pensioners’ 26th annual Reunion was<br />

held on 30 June. Almost 100 guests: present-day directors, executives and<br />

staff, as well as former employees, gathered in the graceful surroundings<br />

of The Painters’ Hall in the City of London to catch up with old friends and<br />

colleagues, hear the latest news of developments within the group and<br />

enjoy a superb meal.<br />

Those present....<br />

DIRECTORS, EXECUTIVES AND STAFF<br />

JAMES FINLAY LIMITED<br />

Michael & Caroline Todhunter<br />

Rupert Hogg<br />

Michael Ferguson<br />

Duncan Gilmour<br />

James Hughes-Hallett<br />

Peter Johansen<br />

Simon Large<br />

Pat Lockett<br />

Giles Weaver<br />

Tim & Susie Blackburn<br />

Nev Davies<br />

Paul Wythe<br />

Debbie Burke<br />

FINLAY TEA SOLUTIONS UK LIMITED<br />

Richard & Marie-Alice Darlington<br />

Tony & Maureen Barcroft<br />

Rob Corsan<br />

Mike & Clare Jones<br />

Mike Mellins<br />

Anna Schiavo<br />

Sue Wills<br />

FINLAY BEVERAGES LIMITED<br />

Neil Willsher<br />

Paul Jasper<br />

PENSIONERS OF JAMES FINLAY LIMITED<br />

Albert Baigent<br />

Clifford & Dorothy Bell<br />

Val Homer<br />

Ronnie Monk<br />

Peter & Jan Smail<br />

Bill & Maureen Stone<br />

PENSIONERS OF FINLAY BEVERAGES<br />

Irene & Harry Adams<br />

Audrey Arnold<br />

John & June Bryant<br />

Margaret Burrows<br />

Terry Cheetham<br />

Tony & Dorothy Clark<br />

Barbara Cromarty<br />

Ethna Duffy<br />

Honor Elvin<br />

Jan Feltham<br />

Shirley & Bob Garnett<br />

Barry & Susan Gibson<br />

Dorothie Hardy<br />

John & Rita Heath<br />

Gordon & Rhona Hill<br />

Ted Jones & Marilyn Carpenter<br />

Ernie Morgan<br />

Raymond & Anneke Orr<br />

Elfi & Fred Osborn<br />

Sidney & Gladys Paine<br />

David & Hilary Payne<br />

Olive Rimmer & Rosemary Lacey<br />

Mike & Mari Robbins<br />

Ron & Sylvia Smith<br />

John Tomlinson & Jenny Tomlinson Walsh<br />

Eric Webb<br />

Elsie Wilshire & Diana Childs<br />

PENSIONERS OF TEA COMPANIES<br />

Tim & Anthea Barton<br />

Jim Coutts<br />

Geoff Field<br />

Norman & Fleur Frew<br />

Chris & Mitzi Marley<br />

Gillian Ryan<br />

Leslie & Pat Stewart-Smith<br />

Hugo & Gillie Yorke-Davies<br />

PENSIONERS OF S H LOCK & CO LIMITED<br />

William & Caroline Atkins<br />

John & Pearl Large<br />

PENSIONERS OF BUCHANANS<br />

WAREHOUSES LIMITED<br />

Roy Olive<br />

John Reid


<strong>News</strong><br />

Head Office<br />

Glasgow Office Outing<br />

Tea Estates<br />

Kenya Update Nev Davies<br />

At the time I<br />

prepared the last<br />

update, Kenya was<br />

recovering from a<br />

severe drought which<br />

had very significantly<br />

reduced the<br />

availability of all<br />

grades of tea on the Mombasa auction.<br />

By the end of March, production of leaf<br />

tea had fallen to 45% of budget. There<br />

was an upside to this, however, in that<br />

prices returned to levels that had not<br />

been experienced since the late ’90’s,<br />

and although crop levels on the JF(K)<br />

estates were well below budget,<br />

nevertheless the good prices have more<br />

than compensated for the shortfall over<br />

the balance of the year. By late August<br />

the much stronger tea supply position<br />

in Mombasa had resulted in a fall in the<br />

prices for all teas; however, they have<br />

remained reasonably firm and at levels<br />

better than budget. The JF(K) estates<br />

have recovered well from the effects of<br />

the drought, and production is now at<br />

normal levels.<br />

The old adage states that every cloud has<br />

a silver lining but, in the case of JF(K),<br />

some Estate Managers have come to<br />

associate that ‘silver’ with hail. The<br />

damage as a result of hail-stones has<br />

been particularly bad this year, with<br />

some areas being repeatedly subjected to<br />

severe storms and hail damage. In years<br />

gone by, attempts were made to reduce<br />

the severity of hail damage by ‘seeding’<br />

the storm clouds with microscopic<br />

crystals, launched from sky-rockets, but<br />

the cost of doing so usually exceeded any<br />

benefit. The problem with hail is that it<br />

affects everything from a pluckable shoot<br />

down to a new bud; it takes about two<br />

months for a shoot to form from a new<br />

bud.<br />

As a strategic response to the long-term<br />

trend of falling tea prices, rapidly<br />

escalating labour costs and a stubbornly<br />

strong Kenya Shilling, the decision had<br />

been taken to significantly expand the<br />

area being mechanically harvested. On<br />

the one hand, this offered an opportunity<br />

to significantly lower costs of production,<br />

but the programme has not been without<br />

its challenges. Although the Company<br />

The Full <strong>Finlays</strong>!<br />

Glasgow staff (l-r)<br />

Pat Lockett, Duncan<br />

Gilmour, Kerr Napier<br />

and Peter Stabler<br />

strut their stuff at the<br />

office outing to a local<br />

adventure centre on<br />

25 August.<br />

had repeatedly stated that employees<br />

would not be made redundant as a result<br />

of this change of policy, unfortunately<br />

this development was interpreted by<br />

various parties as being against the best<br />

interests of the Government and the<br />

Trade Union movement. Fortunately, this<br />

issue has now been amicably resolved<br />

and the mechanisation programme is<br />

being successfully introduced.<br />

A very thorough study has been<br />

completed, which revealed that the<br />

estates do not have sufficient reserves of<br />

eucalyptus to provide the renewable<br />

energy requirements for the future needs<br />

of the Kericho-based businesses. JF(K) has<br />

now embarked on a five-year programme<br />

which will see a large area of the old, lowyielding<br />

tea replaced with eucalyptus.<br />

Some of the old tea will be replaced with<br />

new varieties of high-yielding clonal tea,<br />

to ensure an adequate supply of leaf to<br />

both the black tea factories and the Tea<br />

Extracts Division. The clonal tea is much<br />

better suited to mechanical harvesting,<br />

and this advantage provides a much more<br />

attractive return on the very significant<br />

investment required.<br />

19


20<br />

<strong>News</strong><br />

Tea Estates continued...<br />

Kenya <strong>News</strong><br />

A Home for Kericho's Orphans Duncan Gilmour<br />

It is a sad fact that the spread of HIV/Aids<br />

and related illnesses is now the most<br />

frequent cause of death in Kenya. All too<br />

often this results in an ever increasing<br />

number of orphaned children, many of<br />

whom are also born with the disease.<br />

For a number of years James Finlay (Kenya)<br />

has collaborated with the Walter Reed<br />

Foundation to help fight HIV/Aids by the<br />

provision of medicines and appropriate<br />

education programmes. For some time,<br />

however, Nev Davies and his team have<br />

been considering how best to help some of<br />

the many orphaned children in Kericho and<br />

the surrounding community. In particular<br />

they wanted to provide a facility which<br />

would give the children the opportunity to<br />

build the secure future they might otherwise<br />

be denied.<br />

To this end they conceived the idea of<br />

building a children’s home on a plot of land<br />

on the Company’s Estate, with construction<br />

and running costs being met by way of<br />

charitable donations. Almost before the<br />

idea got off the ground, the project<br />

received an amazing boost as a result<br />

of the generosity shown by participants<br />

on the 2006 Executive Programme at<br />

Stanford University in California.<br />

Rupert Hogg, who had been on this course<br />

in 2005 and was aware that a fund raising<br />

Uganda Update Laurie Davies<br />

After a very<br />

disappointing<br />

performance in 2005, this<br />

year looks set to be a<br />

record year for JFU,<br />

certainly in terms of<br />

average selling prices for<br />

our black tea and in<br />

profitability.<br />

The regional drought that was experienced at<br />

the end of last year, going into the first quarter<br />

of this year, was less severe in the west of<br />

Uganda than in many other parts of the region.<br />

As a result, tea production volumes were not<br />

significantly below targets, while the auction<br />

prices ratcheted up significantly due to the<br />

shortage of teas in Mombasa.<br />

This higher level of auction prices was<br />

sustained for the first eight months of the<br />

year, but has more recently dropped back to<br />

lower levels. The outcome for JFU was a very<br />

strong performance in the first three quarters,<br />

which will not be matched in the final quarter,<br />

but will still result in a very satisfactory<br />

outcome for the year.<br />

event would be held at the end of the<br />

programme, asked JB Rae-Smith of Swire<br />

Pacific Offshore, who attended this year’s<br />

programme, to persuade his colleagues to<br />

adopt the children’s home as a focus for<br />

this year’s fund raising efforts. They did<br />

not need much persuasion; as a result in<br />

excess of US $200k was raised, a sum<br />

which, initial estimates suggest, should be<br />

sufficient to fund substantially all of the<br />

construction costs.<br />

Running for young lives (l-r): Ivan Chu, Wing Cheuk, Lars<br />

Moerch, Martin Zing, Morten Nielsen, Eric Jackson and<br />

Dominiek Arnout.<br />

In Kenya, a task force headed by Nev’s wife<br />

Petalynn has been investigating similar<br />

homes in and around Nairobi to ensure that<br />

the Kericho home incorporates all those<br />

features and facilities found to best enhance<br />

the quality of life for the children as well as<br />

ensuring the right working environment for<br />

carers and staff.<br />

A by-product of the regional drought was a<br />

drop in the water levels of Lake Victoria,<br />

which is the source of the hydro generated<br />

electricity for Uganda. This factor, together<br />

with other capacity constraints, has lead to a<br />

severe shortage of utility electricity<br />

throughout the country; this has impacted<br />

on our factories, all of which have had to<br />

adapt to these trying circumstances. To the<br />

credit of the factory and engineering staff,<br />

the challenge has been met with minimal loss<br />

of production volume or quality, although<br />

cost of production has been impacted.<br />

As it seems that such power shortages will<br />

remain a feature for several years, there is an<br />

increasing interest in the gasifier trial being<br />

conducted at our Muzizi factory. This<br />

technology uses renewable eucalyptus<br />

firewood from our forest areas to produce<br />

gas fuel for a generator engine at a much<br />

lower unit cost than the traditional diesel<br />

generators. The Muzizi trial was<br />

commissioned at the end of last year and has<br />

been undergoing a period of testing and<br />

performance evaluation. Despite teething<br />

Getting a generous<br />

ball rolling: the<br />

president of the<br />

auction committee,<br />

Kim Wright-Violich.<br />

A site has now been<br />

identified and preliminary<br />

plans drawn up with the<br />

aim of starting<br />

construction before the<br />

end of the year. The initial<br />

intention is to build a<br />

home for approximately<br />

20 children. In addition to<br />

the home itself,<br />

accommodation will be<br />

required for carers and<br />

staff. All being well the home should be<br />

ready to welcome its first children before<br />

the end of next year.<br />

As the project begins to take shape, those<br />

involved have become increasingly aware of<br />

the considerable amount of work required<br />

to ensure success but all are relishing the<br />

challenge. Work is being carried out to<br />

agree an appropriate legal structure and<br />

on drafting a constitution which will<br />

include guidelines covering the criteria<br />

for admission.<br />

Readers will be kept up to date with<br />

progress on the construction of this much<br />

needed facility. The generosity of those<br />

attending the Stanford Executive Programme<br />

cannot be overestimated. It is largely due to<br />

their efforts that the project will be realised<br />

sooner than might have been expected.<br />

problems, there is optimism that a<br />

successful operating level can be sustained.<br />

Nigel Leakey has joined JFU as Field<br />

Executive and with his family, is a welcome<br />

addition to the Mwenge community. He had<br />

previously been involved in <strong>Finlays</strong> Flowers<br />

in Kericho and, much more recently, as a<br />

Buildings and Civil Engineering consultant at<br />

JFU. His input into Field operations is<br />

targeted at raising yields and husbandry<br />

standards around all the estates. Nick<br />

Paterson, with his many years of experience<br />

in Kenya, has been enlisted as a Visiting<br />

Agent to assist Nigel in his new post. Nick<br />

knows JFU from its early days, during the<br />

factory and field rehabilitation phase, and<br />

is proving invaluable in planning with<br />

Nigel the next phase of optimizing the<br />

field operations.<br />

There is every hope that progress with the<br />

initiatives referred to above will be reflected<br />

in the results for next year.


Sri Lanka Update Naresh Ratwatte<br />

It has been an<br />

interesting nine months<br />

for <strong>Finlays</strong> Sri Lanka Tea<br />

Estates which, first and<br />

most importantly, have<br />

seen an improved<br />

financial performance<br />

over those of the past<br />

five years; secondly, a successful debt restructuring<br />

and, thirdly, the move of the<br />

Estates’ head office from Ratnapura to a<br />

state of the art new building in Ingiriya,<br />

one and a quarter hours’ drive, south of<br />

the capital city of Colombo.<br />

The strong tea prices for the small leaf<br />

grades and the boom in the rubber market<br />

during the first nine months of the year,<br />

strengthened by the contribution from the<br />

sale of timber, have resulted in a healthy<br />

financial performance to date this year with<br />

both companies exceeding budget.<br />

The reduction in tea production during the<br />

first half of the season is yet to be recouped.<br />

The Sri Lankan national production<br />

has fallen behind 2005 by 2%.The drop in<br />

volumes at the Colombo Auctions and the<br />

Sri Lanka <strong>News</strong><br />

Awards Night<br />

Finlay Tea Estates annual Awards Night was held at a glittering<br />

ceremony at Waters’ Edge, Battaramulla, on 30 August, an event<br />

recognising the achievements of estates and factories throughout the<br />

year 2005.<br />

The inaugural speech, by Naresh Ratwatte, Chairman Finlay<br />

Plantations Sri Lanka, was followed by an address by Simon Large,<br />

Commercial Director James Finlay Limited, on tour from Glasgow.<br />

Nilantha de Silva, Superintendent of Oodoowerre Estate, concluded<br />

with a vote of thanks for a truly memorable evening.<br />

Best Rubber Estate: Bibile Rubber Estate<br />

Best Tea Estate: Oodoowerre Tea Estate<br />

Most Consistently Performing Estate: Park Estate<br />

Best Tea Factory: Park Estate<br />

Most Consistently Performing Tea Factory: Court Lodge Estate<br />

Most Consistently Performing Estate: Bibile Estate<br />

G.W. Wijekoon, Superintendent of Bibile Rubber Estate,<br />

receiving the award for Best Rubber Estate from JF<br />

(Colombo) Chairman Kumar Jayasuriya. Bibile also<br />

topped the ‘Most Consistently Performing Estate’<br />

category.<br />

shortfall in the Kenyan production had an<br />

impact on auction prices, especially for the<br />

small leaf grades and the CTC teas which<br />

sold at very attractive levels.<br />

The rubber market continues to be strong -<br />

consistently over 2 US$ per kg. Production<br />

too during the first nine months has been<br />

encouraging with our young rubber planted<br />

in the mid 1990’s in full production.<br />

The harvesting of timber along with its<br />

replacement is on schedule and, in<br />

accordance with our Forestry Management<br />

Plan, approved by the respective authorities.<br />

The accelerated planting programme for<br />

rubber and timber, drawn up by Jim<br />

Sandom, General Manager, Finlay Forest<br />

Products, is most appropriate for Sri Lankan<br />

Estates. We aim, in the medium and long<br />

term, to produce a diversity of crops; this<br />

should mitigate any ups and downs<br />

experienced by our core crop, tea, which<br />

may result from the vagaries of the weather<br />

and the influence of global market trends.<br />

We have completed our planned factory<br />

investments: the Duckwari Estate new<br />

CTC/CFU and a drier; a new drier on<br />

A new award this year<br />

was for the best<br />

maintained<br />

Bungalow/Garden for<br />

both Superintendents<br />

and Assistant<br />

Superintendents, a way<br />

of looking after our<br />

wonderful assets.<br />

Hapugastenne winners<br />

were Demodera and<br />

Rosssett (Rookatenne<br />

Estate) Bungalows<br />

respectively; while<br />

Udapussellawa winners<br />

were Duckwari and<br />

Heatherset Bungalows.<br />

New Head Office<br />

Finlay Tea Estates Sri<br />

Lanka moved to their new<br />

head office at Ingirya on<br />

31 August. Completed in a<br />

record three months, it<br />

was declared open by<br />

<strong>Finlays</strong> Commercial<br />

Director, Simon Large who,<br />

at a simple ceremony,<br />

thanked everyone who was<br />

involved in the project and<br />

Hapugastenne is also in place. These<br />

investments have enabled us to increase<br />

both the intake of out growers’ leaf and<br />

factory efficiencies, especially in the<br />

consumption of fuel wood. Experiments in<br />

stack withering and the installation of<br />

lightweight fans for conserving energy are<br />

ongoing projects showing very encouraging<br />

results to date.<br />

The recruitment of a full time Marketer,<br />

employed to focus on our estate teas has<br />

strengthened our controls over the required<br />

product quality and the brokers. This should<br />

flow through to the bottom line through<br />

higher prices for our products: a belated but<br />

good investment.<br />

We have obtained ETP certification for all<br />

our tea factories; nine factories are HACCP<br />

certified and ten factories are ISO certified.<br />

Two of our factories, Shawlands and<br />

Oodoowerre, were awarded the Ceylon<br />

Quality Certificate by the Sri Lanka Tea<br />

Board. These are the only two factories<br />

amongst the Plantation Companies that were<br />

selected for this prestigious award at a<br />

ceremony telecast live internationally.<br />

planted a tree to mark the event. JF (Colombo) Directors Romesh<br />

Croos Moraes and Sanjoy Ray were also present.<br />

Ceylon Tea Stars<br />

Opening the new office at Ingiriya, Simon Large (c)<br />

and Naresh Ratwatte.<br />

Shawlands Estate and Oodoowerre Estate of Hapugastenne<br />

Plantations, were awarded the Ceylon Tea Quality Certificate – One<br />

Star at a ceremony organized by the Sri Lanka Tea Board, held on<br />

11 October in Colombo,. These are the first two estates among all<br />

the regional plantation companies to achieve this honour.<br />

Both estates have been certified for ISO 9001-2000 and HACCP,<br />

so vital in meeting global requirements. Now, both aim to win the<br />

coveted Five-Star status.<br />

Oodoowerre Estate workers and staff celebrate awards from both <strong>Finlays</strong> and the<br />

Sri Lanka Tea Board.<br />

21


22<br />

<strong>News</strong><br />

Tea Estates continued...<br />

Sri Lanka <strong>News</strong> continued...<br />

John Keells Awards<br />

Finlay Tea Estates Sri Lanka swept the<br />

board with nine awards at the annual<br />

ceremony held in Colombo on 15 July by<br />

tea brokers John Keells to recognize the<br />

top performing estates in the plantation<br />

industry for the year 2005.<br />

Shawlands Estate which, over the years,<br />

has consistently produced top liquoring<br />

OP grade teas, achieved no less than 110<br />

top prices in the category Uva Teas.<br />

Shawlands achieved two all-time record<br />

prices, RS.1200/- and RS 1060/- for a<br />

liquoring OP1 Grade in the same category.<br />

Demodera Estate achieved the highest<br />

quantity of tea produced by a single<br />

Tea Factory in the category Uva Teas,<br />

having sold 1,020,312 kgs of pure<br />

orthodox teas. Both Shawlands and<br />

Demodera have obtained ISO 9001<br />

and HACCP Certification.<br />

Adawatte Estate, in Lunugala, was also<br />

recognized for its high sale average of<br />

Rs.179.71 in the John Keells’ Catalogue<br />

Uva Teas category. The above three estates<br />

are managed by Hapugastenne Plantations.<br />

Madulkelle Estate, under Udupussellawa<br />

Plantations, achieved the third highest<br />

average in the category Western Medium<br />

Grown Teas.<br />

Tea Trading<br />

Update Richard Darlington<br />

As usual there is much<br />

to report from the FTS<br />

Leaf Tea Division.<br />

Mombasa continues to<br />

have a good year in<br />

difficult trading<br />

conditions. At the time<br />

of writing demand<br />

remains closely balanced to supply though<br />

there are signs that more tea will come<br />

onto the market from now on, so trading<br />

conditions should become easier.<br />

The senior managers in Mombasa have<br />

undertaken a number of business trips<br />

to new markets and hopes are high that<br />

business will commence soon to these<br />

new areas.<br />

The Malawi tea growing season is about to<br />

start and the prospects look good for both<br />

the Malawi tea market as a whole and for<br />

our trading business in Blantyre. The<br />

installation of a modern automated tea<br />

blending and packing system is complete<br />

and we are now in a position to offer our<br />

clients the use of this service.<br />

Shareholders Tour<br />

Concordia<br />

On 19 May 2006 Concordia Tea Estate in<br />

Nuwara Eliya played host to shareholders<br />

of Hapugastenne (HPL) and Udapussellawa<br />

Plantations (UPL).<br />

Eleven luxury coaches brought 371<br />

shareholders on the five-hour journey<br />

from Finlay House in Colombo, to<br />

Kandapola. From here, they travelled to<br />

the chilly heights of Concordia Estate<br />

where they were welcomed with a<br />

refreshing cup of ginger tea.<br />

Tony Perera, Ranjan Kulatunga, Stewart<br />

Joseph, Roshini Ranaweera and Dalrene<br />

Thirukumar acted as tour guides,<br />

explaining the tea manufacturing process<br />

in detail for the groups of shareholders.<br />

On the ground floor the guests saw made<br />

tea in bags awaiting transport out of the<br />

factory; on the first floor, the roller and<br />

tea processing machinery; then, one flight<br />

up, came what one described as ‘The most<br />

pleasing sight of golden green: two leaves<br />

and a bud, in vast quantities, spread out<br />

on a drier’.<br />

Finlay Gulf is now in its third full year of<br />

trading and is performing well ahead of our<br />

expectations. Business has been concluded<br />

to buyers in many of the countries that<br />

surround the UAE. The branch has been<br />

able to put our Hanoi, Mombasa and<br />

Colombo offices in touch with new clients<br />

for Vietnamese, Kenyan and Sri Lankan<br />

teas. The branch is certainly seeing the<br />

benefit of being a prominent sponsor at the<br />

Dubai Tea Forum at the end of February.<br />

In Hanoi our new trader, James Paling, is<br />

settling into the Finlay family. Our General<br />

Manager, Iain Lang, is spending much of his<br />

time at the Van Hung factory guiding its<br />

owners through the process of converting<br />

the factory from orthodox to CTC<br />

production. <strong>Finlays</strong> is a sizeable investor in<br />

this project and tea will be available from<br />

the factory by the time this magazine goes<br />

to print. In the next issue we will give<br />

readers a full report on the project.<br />

Under Chris Luckhurst in our Morristown<br />

office the United States business is doing<br />

Guests were highly appreciative of the<br />

sumptuous lunch prepared for them, a<br />

feast accompanied by beautiful floral<br />

arrangements, a live saxophonist and,<br />

later, a troupe of dancers. They thanked<br />

all the staff of Concordia Factory for<br />

making the tour a warm and unforgettable<br />

learning experience.<br />

Appointment<br />

Rasika Perera joined<br />

Finlay Plantations Sri<br />

Lanka as Marketing<br />

Manager from 1 August<br />

2006. Previously, Rasika<br />

had spent nearly 10<br />

years with John Keells,<br />

the leading tea brokers<br />

arm in Sri Lanka,<br />

latterly as Manager Tea. Rasika brings vast<br />

experience in tea marketing; we welcome<br />

him to our team and wish him all the best.<br />

Retirements<br />

From Hapugastenne Estate: M.Ramasamy,<br />

after 29 years’ service and R.K.K.Joseph,<br />

after 26 years; from Bibile Estate, G.A.<br />

Manatunga, after 27 years of service.<br />

well and is busily preparing for the start of<br />

the new Argentine season.<br />

Our tea decaffeination business in Hull<br />

continues to have a good year. Of the<br />

many challenges faced by the team this<br />

year the removal of a 100ft brick lined,<br />

wrought iron chimney stack was perhaps<br />

the most interesting. Put up in 1900 it<br />

survived a fire in 1932 that destroyed the<br />

rest of the factory. Its safe removal was<br />

made more complicated by its position but<br />

the team managed the dismantling without<br />

any problems. The old chimney has been<br />

replaced by a new one which we hope will<br />

last for as long as the last one though, also,<br />

that it will not have to survive a fire!


Tea Extracts<br />

Update Tony Barcroft<br />

The tea extracts<br />

business is doing very<br />

well worldwide, with<br />

excellent volume<br />

growth in North<br />

America and Europe.<br />

The cause of this is<br />

quite simple. Ready to<br />

drink (RTD) teas are<br />

seen as a natural and<br />

healthier alternative to carbonated drinks<br />

and so, each year, as demand grows at the<br />

consumer end, it filters back to increased<br />

demand for our products. This is likely to<br />

accelerate even further as the major<br />

beverage companies have started to push<br />

this trend even harder, with a record<br />

number of new products being launched<br />

this year.<br />

Additionally, the range of speciality tea<br />

products is increasing, with green, white<br />

and Rooibos teas being particular<br />

favourites amongst the launches this year.<br />

Another trend that you might have seen is<br />

the steady growth in what we call<br />

“functional” teas – those that make health<br />

claims. Obesity is a major and growing<br />

Beverages<br />

UK Update Neil Willsher<br />

I am delighted to report<br />

that a year of varied<br />

challenges for Finlay<br />

Beverages, has<br />

continued to progress<br />

well.<br />

The company’s main raw<br />

inputs, tea and coffee,<br />

saw prices moving<br />

higher during the year, albeit for entirely<br />

different reasons. Tea purchased under a<br />

traditional auction system saw prices<br />

doubling at the end of 2005, as a result of<br />

the well publicised drought experienced in<br />

Kenya. These increases were passed on in<br />

part to the customer in August, when tea<br />

prices rose throughout the UK retail<br />

industry. These moves assisted in resolving<br />

an unsustainable situation which was<br />

negatively affecting our bottom line. Simply<br />

put, tea was being sold to our customers at<br />

a lower price than the price for which it<br />

was purchased. The situation has improved<br />

although prices remain stubbornly high<br />

with, at the time of writing, all eyes on<br />

whether the Kenyan short rains would<br />

arrive in November. The coffee market rose<br />

to seven year highs in September for<br />

entirely different reasons. Coffee is traded<br />

as a commodity on the futures markets. As<br />

such its price is subject to speculation<br />

which may or may not be based on accurate<br />

information. In 2006, fund speculation,<br />

issue in the Western world and tea contains<br />

a group of chemicals called Catechins that<br />

accelerate fat burning. Thus it is no<br />

surprise that we are seeing RTD tea<br />

products with high Catechin content<br />

coming onto the market, claiming weight<br />

reducing properties. We expect this trend<br />

to continue and gather momentum.<br />

We are working hard to develop our<br />

technology to be able to give our<br />

customers products which are rich in<br />

these “functional” chemicals.<br />

Historically, <strong>Finlays</strong> has focused on Western<br />

markets, with a strong and growing<br />

business in North America and Europe.<br />

However, it is imperative that we start to<br />

move our sights more towards markets in<br />

Asia. The reason is quite simple.<br />

By 2010, China and Japan will together<br />

consume eight times the volume of RTD<br />

tea as North America and ten times the<br />

volume of Europe. In the next issue of<br />

<strong>Finlays</strong> Magazine, I will be explaining<br />

more about what we are doing in Asia<br />

to accelerate our progress.<br />

As this is my first review of the Tea<br />

Extracts business since becoming Managing<br />

based upon dubious volume estimates from<br />

Vietnam and Brazil, in combination with<br />

huge rises in oil and copper positions,<br />

drove prices higher.<br />

The UK market for private label packing in<br />

which we operate, consolidated in late 2005<br />

with Apeejay becoming the new owners of<br />

Typhoo tea and subsequently joining forces<br />

with Gold Crown. These changes will result<br />

in further challenges due to the alteration<br />

in the competitive dynamic within the<br />

industry, especially when the continued<br />

battle of the brands is taken into account.<br />

It is pleasing to report that Sainsbury’s, our<br />

largest customer, continue to reap the just<br />

rewards resulting from the successful<br />

implementation of their turnaround plans.<br />

The new Asda business, which commenced<br />

in April, progressed well following its<br />

seamless integration into our normal<br />

operations. The growth achieved in 2006<br />

has established Finlay Beverages as the<br />

largest packer of private label tea in the UK<br />

retail market. We continue to work with our<br />

employees and customers in striving to<br />

remain the partner of choice within the<br />

industry.<br />

This growth in our business, combined with<br />

a fundamental belief in the need for<br />

continual change and improvement in order<br />

to sustain our operations, resulted in a<br />

decision being taken earlier this year to re-<br />

Director in April 2006, I should like to take<br />

the opportunity to introduce myself and<br />

explain something of my background.<br />

After studying Chemistry at the University<br />

of Sheffield I spent the early years of my<br />

career as a scientist with Glaxo Smith-Kline<br />

(pharmaceuticals) and Courtaulds (paints). I<br />

then moved over to marketing, spending<br />

nine years with Procter & Gamble, running<br />

businesses ranging from detergents to<br />

beauty care products, in the UK and<br />

Europe. This was followed by 14 years in<br />

the retail bakery business, as Managing<br />

Director of a large UK business, turning it<br />

from a loss-maker into a solid, profitable<br />

concern. After a spell in consulting for<br />

Wolseley (an International building<br />

products company) I joined Finlay Tea<br />

Extracts as Managing Director.<br />

In conclusion, I want to say that I am very<br />

proud to be involved with <strong>Finlays</strong>. I think<br />

we have a great business, with excellent<br />

hard working people and good future<br />

prospects. Our best years are yet to come.<br />

organise the tea factory. The project, due<br />

for completion in 2007, will increase<br />

capacities and efficiencies, whilst<br />

introducing innovative flexibility to both<br />

our processes and product.<br />

Underpinning all the progress achieved to<br />

date are the changes brought about within<br />

our culture. Key focus has been placed<br />

upon teamwork, support and respect for<br />

one another, knowledge sharing,<br />

communication and expertise. The positive<br />

consequences of our actions to date have<br />

seen improved employee motivation and<br />

morale.<br />

There have been some interesting<br />

developments during the course of the year<br />

within the areas of Corporate Social<br />

Responsibility and Ethical Trading, where<br />

greater consumer awareness has been<br />

reflected in initiatives by our retail<br />

partners. This has always been at the heart<br />

of the Group’s businesses, with<br />

commitment to employees, communities<br />

and the environment paramount; they are<br />

areas we feel well placed to address.<br />

The changing environment in which we<br />

operate with both its competitive and<br />

ethical dimensions will remain a key<br />

challenge, creating in turn both new and<br />

diverse opportunities for both Finlay<br />

Beverages and the group as a whole.<br />

23


24<br />

<strong>News</strong><br />

Beverages continued...<br />

UK <strong>News</strong><br />

Expanding Contracts<br />

In April Finlay Beverages secured a contract<br />

from HM Prison Service for 100% of their tea<br />

requirements. This improved on the part-share<br />

contract previously in place.<br />

Following the success of the Virgin Trains<br />

contract, FB hot beverage products are now on<br />

trial test with South West Trains and South East<br />

Trains franchises.<br />

Visits<br />

Finlay Beverages’ engineers have been crisscrossing<br />

the Channel, commissioning new<br />

machinery as part of Project One at South<br />

Elmsall, learning its uses and running trials.<br />

Gary Little and Nigel Sutton have made several<br />

trips to International Packaging Systems in<br />

In September, a team of tea production operatives, engineers<br />

and managers from South Elmsall visited UVA (Universal<br />

Packaging Machines) in Eindhoven, Holland for training<br />

ahead of delivery of a new polybag machine for the factory.<br />

Crailshiem, Germany to commission teabag<br />

machines, while engineers John Cheesmond and<br />

Chris Ward later underwent related control<br />

systems training. In September Mike Hickson,<br />

Project Engineering Manager, and Joe Stenton,<br />

Production Engineer, visited IMA in Italy to<br />

undertake a factory acceptance trial on a new<br />

caddy overwrapping machine.<br />

Appointments<br />

John Neale joined the Tea<br />

Sales Room team in March<br />

as Tea Buyer and Blender.<br />

John has worked in the tea<br />

trade since 1962 when he<br />

started as a trainee with a<br />

firm of tea brokers. John<br />

has known the <strong>Finlays</strong><br />

buying teams in South Elmsall and London for<br />

many years, and has become a welcome member<br />

of the <strong>Finlays</strong> family.<br />

In June, Tom Blackwall<br />

joined Finlay Beverages<br />

from Northern Foods and<br />

has now settled into our<br />

Coffee Sales department<br />

as assistant Coffee Buyer<br />

and Blender. Tom has a<br />

food technology<br />

background and will use his skills in coffee<br />

blend development and in learning the<br />

commercial aspects of the coffee trade.<br />

In July Daniel Dawson<br />

joined Finlay Beverages as a<br />

Business Manager for<br />

Sainsbury’s account. Daniel<br />

previously worked for Red<br />

Mill Snack Foods where he<br />

managed their JS, Co-op,<br />

Morrisons, Somerfield,<br />

Waitrose and Lidl accounts.<br />

In July Doug Moseley joined<br />

Finlay Beverages from Del<br />

Monte Foods International<br />

where he worked for over<br />

five years as Account<br />

Manager for their Asda,<br />

Waitrose and Morrisons<br />

business. Doug has 20<br />

years’ grocery industry experience, spanning<br />

food service, impulse & convenience and, more<br />

recently, the major multiple trade sectors. Doug<br />

has been appointed Business Manager for Asda’s<br />

account.<br />

Family Fun Day<br />

Supersize fun<br />

Finlay Beverages’ first Family Fun Day for<br />

employees and their families was held on<br />

27 August at Frickley Cricket Club.<br />

The event was organised by a group of<br />

volunteers comprising Robert Landers,<br />

Suzanne Mason, Aileen Robinson, Paul Iveson,<br />

Julie Lowery, Cain Atkinson, Terri Waterhouse,<br />

Joann Witton and Royston Mould.<br />

Amusements included bouncy castles, a<br />

penalty shoot-out, face painting, a bungee run,<br />

a Punch & Judy Show and Sumo wrestling, all<br />

of which kept the children and most of the<br />

adults amused. Barbecued burgers and hot<br />

dogs were served while Paul and Julie manned<br />

the bar. A tombola stall run by Maureen<br />

Holden and Margaret Millward raised £415 for<br />

the local hospice.<br />

Long Service Awards<br />

Mike Hickson receiving his 35-year award from Finance<br />

Director Paul Jasper<br />

Mike Hickson completed 35 years’ service with<br />

the company in August. Mike started work<br />

with George Payne in 1971 in the R&D<br />

department in Croydon. His first project was<br />

to design a tilting dragee pan for chocolate<br />

coating Payne’s ‘Poppets’. Mike moved to<br />

Beverages in Yorkshire in July 1996, since<br />

when his business travels have taken him all<br />

over Europe. He has worked on many projects<br />

over the years including the Swindon Tea<br />

Factory, the building of South Elmsall Tea<br />

Factory and extension, the South Elmsall<br />

Coffee Factory, the closure and relocation of<br />

Croydon Coffee Factory, the South Elmsall<br />

Administrative building and the new Loading<br />

Dock at South Elmsall. Mike is currently<br />

working on Projects One and Two in South<br />

Elmsall.<br />

The following have received awards to mark<br />

15 years’ service with the company: Martin<br />

Cliff, Stock Controller; Dawn Weston,<br />

Tea Operative; Mark Thompson, QA<br />

department; George Head, Warehouse: Ann<br />

Lumb, Tea Operative: Colin Waterhouse,<br />

Support Operative: Brian Magill, Engineering<br />

Team Leader: Gina Oxley, C21 Machine<br />

Operator.<br />

George Payne Shield<br />

Golf victor Jon McCormack with Paul Bacon<br />

On 2 September the 2006 George Payne golf<br />

tournament took place at Woolley Park Golf<br />

Club, West Yorkshire. After a very wet and<br />

windy start, the weather improved and scores<br />

ended very close. Warehouse Team Leader<br />

Jon McCormack (pictured with the shield) was<br />

the winner; second place went to Tea Engineer<br />

Chris Parker and in third place was IT<br />

Manager Paul Bacon. Prizes were awarded<br />

after a meal in the clubhouse.<br />

Employee Conference<br />

‘Taking our People With Us’: Diana<br />

Breeze of Sainsbury's addressing<br />

the conference.<br />

The third Finlay<br />

Beverages<br />

Employee<br />

Conference took<br />

place on 29<br />

September at The<br />

Grove, South<br />

Kirkby.<br />

Production<br />

ceased for the<br />

day as all 250<br />

employees<br />

attended the<br />

programme of<br />

presentations<br />

(see ‘Walking the<br />

Talk’ right).<br />

Everyone enjoyed<br />

a meal and<br />

entertainment by Doncaster comedian Gary<br />

Marshall before the evening’s fun and games<br />

which, this year, included casino tables, bingo,<br />

laser shooting and crazy golf.


Walking the Talk Lee Byers<br />

At Finlay Beverages’ third annual Employee Conference, guest<br />

presenters Diana Breeze of Sainsbury’s and Ian Bettles of<br />

Smallpeice Enterprises, focused on different ways in which<br />

employees can be empowered to attain improved business<br />

results through culture change programmes.<br />

Diana, on behalf of Sainsbury’s, one of our longest established<br />

customers, explained how their Chief Executive Justin King,<br />

appointed in 2002, set in motion a major culture change<br />

programme: ‘Taking Our People With Us’. Various initiatives<br />

included a ‘Tell Justin’ scheme whereby all 30,000 Sainsbury staff<br />

were encouraged to send ideas and suggestions for business<br />

improvement direct to the Chief Executive for reply and action.<br />

Others involved employees tasting and recommending Sainsbury’s<br />

products to friends and family; leadership training; colleague<br />

councils for all managers; and daily ‘huddle’ meetings to discuss<br />

and agree key priorities for the business. Diana was pleased to<br />

report that Sainsbury’s have just posted their seventh consecutive<br />

quarterly improvement in sales growth since the programme began.<br />

The Asda training quality team meet Finlay Beverages' Russ Fowlkes, Commercial<br />

Director; Doug Moseley, Asda Business Manager; and Lee Byers, Marketing Controller.<br />

Ian Bettles of Smallpeice Enterprises entertained the conference<br />

with a highly individual presentation on better ways of working<br />

using ‘lean’ principles gleaned from years of experience with<br />

world class organisations. As an educational charity, Smallpeice<br />

improves business results by helping organisations to remove<br />

waste from the production process. The presentation gave<br />

numerous examples of how simple small changes can make a big<br />

difference to the end result through careful attention to detail;<br />

it included some hilarious examples of poor work execution.<br />

Finlay Beverages then took the opportunity to celebrate their<br />

success (reported in the Spring edition of <strong>Finlays</strong> Magazine) in<br />

gaining substantive new business from Asda, part of Wal Mart and<br />

one of the world’s largest retailers. The Asda Project Team, with<br />

Russ Fowlkes as sponsor and Lee Byers as Project Leader, used a<br />

professional video presentation, combining footage from around<br />

the South Elmsall site with vox pop style interviews, to explain<br />

how, in less than nine months, Finlay Beverages had been able to<br />

deliver a complex project from a blank sheet of paper to a<br />

complete range of finished products. The video was first class<br />

and combined footage from around the South Elmsall site<br />

together with Vox Pop style interviews with team members to tell<br />

the Asda story. It celebrated the work of everyone involved in<br />

preparing, pitching for and securing the Asda tea business.<br />

Finlay Beverages had targeted Asda on the basis that the business<br />

opportunity was both substantial and a good fit with our existing<br />

customers, including Sainsbury’s who appeal to a slightly<br />

different shopper profile.<br />

The Asda buying and quality team reviewing tea samples at South Elmsall<br />

(left to right: Dave Cresswell Trading Assistant; Stuart Menzies Trading Manager;<br />

Sophie Benter, Marketing Manage; Katherine Shipley Product/Quality Manager)<br />

Beginning with an in-depth analysis of the market and extensive<br />

store visits, our initial presentation to Asda focused on how we<br />

might take their tea business forward. A visit in October 2005 by<br />

Asda to our site in South Elmsall was to prove crucial. Finlay’s<br />

passion for quality and attention to detail was successfully<br />

demonstrated in every aspect of our operation.<br />

Having quoted for Asda’s tea business we began preparations by<br />

undergoing formal training in project management techniques.<br />

With only three months to launch, the pressure was on to deliver<br />

a full range of products from scratch. This presented a number of<br />

major challenges including the recruitment and training of a night<br />

shift. It is a tribute to everyone at Finlay Beverages that in such a<br />

short time we were able to deliver Asda products on schedule<br />

whilst meeting their stringent quality standards; we even<br />

managed to deliver some products two weeks early!<br />

Most rewarding of all, however, is that we were able to achieve all<br />

of this without letting our normal standards of excellence slip for<br />

existing customers. In fact, over this same period, we achieved<br />

Sainsbury’s Hero Supplier status for superlative customer service<br />

in delivering the right quality, at the right time in the right<br />

quantity. We were also awarded ‘The Grocer’ magazine Gold<br />

Award 2006 for Best Own Label Supplier (hot beverages category).<br />

The challenge, as ever, will be to continue to deliver on quality<br />

and service each and every day. We can only do this by ‘Taking<br />

Our People With Us’.<br />

25


26<br />

<strong>News</strong><br />

Flowers<br />

Update Tim Blackburn<br />

2006 has been a<br />

difficult year<br />

for Flowers.<br />

The combination of<br />

changing market<br />

requirements in the UK,<br />

pressure on prices,<br />

unfavourable exchange<br />

rates and rising energy<br />

costs has presented numerous challenges.<br />

However I am very pleased to report that,<br />

thanks to the enthusiasm and commitment<br />

shown by all the management and staff at<br />

Flowers, we are now better prepared to<br />

meet the vagaries of the market and<br />

remain optimistic about the future.<br />

The exceptionally warm European summer<br />

had an adverse effect on the industry in<br />

general but our Fairtrade markets performed<br />

well and we are now in the final stages of<br />

FLO certification of Lemotit farm at<br />

Londiani; this means that 100% of <strong>Finlays</strong><br />

production will be Fairtrade accredited from<br />

2007. The extensive investment in crop R&D<br />

over the last few years is paying dividends<br />

as our production team completes the<br />

<strong>News</strong><br />

Fairtrade and Finmax Edgar Mutai<br />

The FinMax Community Based Group dates<br />

from January 2003 when, as we reported in<br />

these pages, Finlay Flowers was accredited<br />

to the Swiss Fairtrade organisation, Max<br />

Havelaar. The benefit of this accreditation<br />

could be summed up as continued access to<br />

the growing Fairtrade market, using the<br />

Max Havelaar label; and earned premiums<br />

from the sale of our products to this same<br />

market.<br />

The premiums earned are used to assist our<br />

workers and members of the surrounding<br />

community to improve their quality of life<br />

through socio-welfare and environmental<br />

programmes. The funds are managed by a<br />

Joint Body, a committee that includes four<br />

management representatives and 18 elected<br />

general workers.<br />

A delegates system links the general workers<br />

and the Joint Body committee. The object of<br />

the system is to assist in the dissemination<br />

of information and in identifying projects<br />

which the workers would like to see<br />

implemented. Each delegate serves a three<br />

year term.<br />

In 2004 Finlay Flowers became accredited to<br />

Flower Labeling Organization International<br />

(FLO) which has a working relationship with<br />

Max Havelaar. The resulting increased access<br />

to a larger Fairtrade market has led to a<br />

growth in sales which, in turn, has meant<br />

higher premiums for FinMax.<br />

In June 2006, Max Havelaar merged with<br />

Flower Labeling organization (FLO) under the<br />

Fairtrade logo and with its headquarters in<br />

Bonn, Germany.<br />

Here are some of the projects supported<br />

by FinMax<br />

● Two anaesthesia machines have been<br />

purchased, one each for the Central<br />

Hospital and the Kericho District Hospital.<br />

● Ndege Chai Loan Scheme: FinMax has<br />

deposited Ksh 10,000,000 with Ndege Chai<br />

important transition from trials to<br />

commercial production. Specifically spray<br />

roses, alstromerias, freesias, zantadeschias<br />

and lilies are now all in commercial<br />

production and we have high hopes for the<br />

extensive list of fillers and summer crops<br />

being developed both in Kericho and at<br />

Londiani.<br />

Perhaps the most significant project<br />

currently underway is the extensive rose<br />

replanting program at FF1 and FF2 where<br />

Nev Harries and Fred Okinda in particular<br />

have worked extremely hard to identify and<br />

select varieties which will perform well in<br />

our conditions, delivering a carefully<br />

balanced combination of quality, headsize<br />

and yield. This program is an important<br />

step in ensuring that <strong>Finlays</strong> continues to<br />

remain competitive with industry<br />

benchmarks whilst ensuring that we<br />

do not compromise on quality.<br />

The development of Lemotit farm is almost<br />

complete with 20.2ha now in production,<br />

the dam filling ahead of initial forecast and<br />

post harvest facilities in the final stages of<br />

construction. John Magara and his team<br />

to be used as a revolving loan fund for<br />

employees of James Finlay (Kenya) who are<br />

eligible for union membership. Based in<br />

Kericho, the fund is intended to be used<br />

for emergency loans at a subsidized<br />

interest rate of 10% per annum, for a<br />

maximum period of 12 months.<br />

FinMax Chairman James Bwana presents an anaesthesia<br />

machine, financed by the community-based fund, to Dr Betty<br />

Langat, superintendent of Kericho General Hospital. On the left<br />

is Eric Korir, Legal and Personnel Affairs Manager, Chepkembe.<br />

● A Bursary Scheme for JF(K) employees’<br />

children ensures that 20 boys and 20 girls<br />

who have earned good passes gain entry to<br />

national secondary schools.<br />

● FinMax donated 320 desks and chairs to<br />

Flower 2 Primary School and purchased<br />

teaching equipment including two<br />

computers and a photocopier.<br />

● Friends of the Mau Watershed: FinMax<br />

bought two motorbikes for FOMAWA field<br />

staff.<br />

● FinMax donated sports equipment to 13<br />

company primary schools and to Marinyin<br />

Secondary School.<br />

● A FinMax Bursary Scheme has given part<br />

sponsorship to three university students,<br />

from Kericho, Bomet and Bureti districts,<br />

for the duration of their courses.<br />

● Support for the physically disabled and<br />

for babies in care homes established due<br />

to the ravages of HIV/AIDS<br />

have done an excellent job in the field to<br />

ensure that this project is sustainable,<br />

successful and provides a template for any<br />

expansion programs in the future.<br />

Significant progress has been made across<br />

the board in the less glamorous areas of<br />

cost management, more efficient<br />

purchasing and procurement practices; the<br />

roll-out of the JF(K) Enterprise Resource<br />

Planning system has required substantial<br />

management attention. All these initiatives<br />

will pay dividends in 2007 but it is<br />

essential that we continue to improve<br />

productivity and seek out efficiencies<br />

wherever possible.<br />

As we look forward to 2007 we should<br />

reflect on the significant achievements of<br />

2006 which included the acquisition of<br />

Omniflora and Jet Flowers in February.<br />

These, in conjunction with our traditional<br />

commercial relationships in the UK, have<br />

presented interesting opportunities on the<br />

Continent which we look forward to<br />

developing together in the future.<br />

● The purchase of eight tents for use by<br />

employees and their dependants in their<br />

social programmes.<br />

● Tree nursery project in support of<br />

reforestation: all JF(K) employees can<br />

purchase seedlings at a subsidised price<br />

from the FinMax tree project. A variety of<br />

indigenous, exotic and fruit tree seedlings<br />

are available. 17,000 seedlings had been<br />

sold by the end of September 2006.<br />

● Baby day care centers are up and running<br />

in both Flower 1 and 2. Currently there are<br />

a total of 150 children enrolled in both<br />

crèches.<br />

● Training schemes continue to build the<br />

capacities of the Joint Body committee.<br />

New projects continue to be identified.<br />

Appointment<br />

Flavio Pelizzoli joined<br />

<strong>Finlays</strong> in November, as<br />

Director of Supply<br />

Chain Logistics<br />

(Omniflora / Finlay<br />

Flowers) based in<br />

Nairobi. Flavio, who is<br />

Canadian, has come<br />

from Dubai where he<br />

was regional general manager of Barloworld<br />

Logistics Middle East LLC. He brings over<br />

16 years of business-related management<br />

and advisory experience in Sub-Saharan<br />

Africa to his new job. His role, divided<br />

equally between Finlay Flowers and<br />

Omniflora/<br />

Jet is to improve the close cooperation<br />

between the various parties involved in<br />

the production, post-harvest handling,<br />

road and air-transport of cut flowers in<br />

order to improve quality control and<br />

integrity of the cool chain.


Sri Lanka<br />

Update Kumar Jayasuriya<br />

“Enriched by the past,<br />

transforming the<br />

future”: that’s the<br />

winning catchphrase<br />

one of our divisions<br />

came up with to capture<br />

the essence of Finlay’s<br />

Colombo operations.<br />

With the Company having been involved<br />

with commerce and industry in Sri Lanka<br />

since 1893, the first part of the phrase is<br />

self evident. Today, defining the years, if<br />

not decades to come is exactly what’s<br />

happening.<br />

In July of this year we invested in the<br />

installation of three brand new IMA C27<br />

machines for a total amount of USD 2.1<br />

million at our facility in Welisara on the<br />

outskirts of Colombo, the first company in<br />

Asia to invest in this cutting-edge<br />

technology. Catering to an increasingly<br />

environmentally aware and concerned<br />

consumer, the machines will produce<br />

“stapleless” teabags. These will be fully<br />

natural, with the string being attached to<br />

the bag by a knot. The three machines<br />

will significantly increase the overall<br />

production capacity.<br />

<strong>News</strong><br />

Cathay’s Rebranding Incentive Julian Lyden<br />

Cathay Pacific’s innovative campaign, Paint<br />

the Town Green, has changed the thinking<br />

behind conventional branding practices in<br />

the air travel industry of Sri Lanka says<br />

Julian Lyden, Country Manager for Cathay<br />

Pacific, Sri Lanka and The Maldives.<br />

The campaign took the form of a<br />

competition, in which local travel agents<br />

were requested to decorate their premises<br />

using green, Cathay’s corporate colour, along<br />

with other branding material. The<br />

promotion was partly aimed at building<br />

goodwill between the Company and its<br />

stakeholders; Cathay Pacific believes that<br />

much of their success depends on their<br />

value chain partners.<br />

The challenge was well received and a<br />

number of agencies - duly provided with cut<br />

out models, posters, model aircraft and<br />

other display material - enthusiastically took<br />

Sports Carnival<br />

Recreational activities include staff of all segments.<br />

Our existing markets have served us well,<br />

but we are now actively seeking to create<br />

new avenues and buyers for our value added<br />

products. A few prospective customers in<br />

Europe and America have evinced interest<br />

in this respect. I personally believe that<br />

there is great potential for expanding in<br />

India as well.<br />

The temperature controlled warehousing<br />

and logistics division, which is now in its<br />

second year of operation, has recorded<br />

encouraging performance on the back of<br />

healthy occupancy levels, whilst catering to<br />

some of Sri Lanka’s (and internationally)<br />

best known brands for frozen and chilled<br />

products. To meet increasing demand and to<br />

meet the evident need for international<br />

standards of cold chain compliance, the<br />

Company is nearing completion of an<br />

extension to the existing facility that will<br />

double present capacity (see page 28). The<br />

additional space will deliver economies of<br />

scale through greater operational<br />

efficiencies incorporated in the design and<br />

lower incidence of fixed costs. We also hope<br />

to capitalize on our first mover advantage by<br />

branching off into logistics and distribution<br />

services to selected clients, so as to provide<br />

the full cycle of cold chain compliance.<br />

part in decorating their offices, always<br />

following the Cathay logo guidelines.<br />

They reported having enjoyed the novel<br />

opportunity of getting a break from busy<br />

schedules and spending some creative time<br />

with their colleagues.<br />

Rewarding our travel partners for their time<br />

and innovative thinking, Cathay Pacific gave<br />

away seven return air tickets to Singapore or<br />

Bangkok as the first prize, whilst the second<br />

and third runners-up received exclusive<br />

Cathay branded gift items for the whole<br />

office team.<br />

In tandem with the travel agents’ unique<br />

branding exercise, a major facelift has added<br />

colour and exuberance to the Cathay Pacific<br />

City Office in Colombo. Our premises have<br />

been given a corporate identity in keeping<br />

with our superior product - a global<br />

network, a staff and a service straight from<br />

More than 700 employees of the James<br />

Finlay Group and their families took part<br />

in a Sports Carnival held on 17 September<br />

at the Bloomfield Sports Ground in<br />

Colombo.<br />

Participants, representing James Finlay & Co.<br />

(Colombo) and its subsidiary and associate<br />

companies, were divided into four teams or<br />

houses, each named after a different local<br />

herb believed to generate strength.<br />

The morning got off to a good start with<br />

such athletic events as the marathon, 100<br />

metres races for women and men and a 400<br />

metres men’s race. The post-lunch session<br />

Human resources have been the other area<br />

of focus during the last few months, where a<br />

range of initiatives from improving working<br />

conditions to fostering greater employee<br />

participation in decision making, promoting<br />

team spirit and, most importantly, building<br />

up the capability of our people through<br />

training and development have been<br />

launched. As far as is practically possible,<br />

company recreational activities now include<br />

staff of all segments.<br />

Our social responsibility programs are now<br />

drilled down to the divisions with each<br />

making efforts to participate actively in the<br />

programs selected. Needless to say that<br />

health and safety teams are formalized<br />

and are active at each worksite.<br />

Our financial results at the end of the third<br />

quarter have been generally satisfactory<br />

with Group overall profit comfortably<br />

exceeding the budgeted profit even<br />

excluding a one-off profit earned on sale<br />

of investments during the year.<br />

Despite the problems and issues, in Sri<br />

Lanka the opportunities for business abound<br />

and continue to flourish with each of our<br />

resilient businesses creating environments<br />

in which to flourish and grow.<br />

the heart which have won us the title of<br />

Airline of the Year, for the third time.<br />

The new branding provides our walk-in<br />

customers with a warmer and more friendly<br />

ambience, appropriate both to promoting<br />

confidence in flying with Cathay Pacific<br />

Airways and as a backdrop to the highly<br />

professional service provided by our<br />

dedicated front line staff at the counters.<br />

Cathay’s Colombo office facelift sets the pace<br />

was dedicated to fun and games including a<br />

tug-of-war, bucket relay and three-legged<br />

race. Special events were also held for the<br />

managers and guests while, for the children,<br />

there was a drawing competition.<br />

Prizes were also awarded for the best<br />

cheering squad and for the best decorated<br />

“house”.<br />

Winners of the individual and group events<br />

were awarded handsome prizes. The overall<br />

winner was Harthavariya House, made up of<br />

employees of the Tea Estates sector.<br />

27


28<br />

<strong>News</strong><br />

Sri Lanka continued...<br />

Twice the Freeze Gihan Jayasinghe<br />

External view of the existing facility<br />

Our Cold Storage operation at Welisara has expanded with the<br />

addition of a further 4,500 pallet spaces, thus consolidating<br />

its position as the largest and most sophisticated cold store in<br />

Sri Lanka.<br />

The second phase, inaugurated in November this year, will provide<br />

an additional 30,000 cubic meters (1 million cubic feet) of<br />

refrigerated storage space and will not only permit greater efficiency<br />

in operation but also greater flexibility in the type of products<br />

stored and services offered.<br />

US<br />

Finlay Industries Update Darrell Armbruster<br />

Through August, the<br />

year 2006 resulted in<br />

new record sales<br />

revenue for Finlay<br />

Industries. YTD<br />

revenues are ahead of<br />

2005 by $1.8 million.<br />

This continued growth<br />

in revenue is largely<br />

attributable to the<br />

sustained growth of new inbound<br />

inventory from our existing<br />

manufacturing customers. Based on<br />

YTD figures, Finlay Industries is likely<br />

to receive over 7 million pounds of new<br />

inventory by year-end. This exceeds<br />

prior year record levels by over<br />

500,000 pounds.<br />

In order to accommodate this increase of<br />

inbound inventory we have had to re-think<br />

our retention levels of older, slower moving<br />

inventory. Rather than continue to build<br />

new warehouses to accommodate the<br />

receiving of fresh inventory, we have been<br />

working with the OEM’s and our operations<br />

department to develop more aggressive<br />

purge algorithms, which sooner identify<br />

"dead" inventory in our warehouses. Once<br />

this "dead" inventory has been identified, we<br />

pluck it out of our facilities, freeing up<br />

space for new inventory.<br />

The Company’s focus is on the premium end of the cold storage<br />

market, offering a broad spectrum of value-added services, such<br />

as order picking, loading/ dispatching according to customer<br />

requirements, inventory management using a state-of-the-art online<br />

warehouse management system and more, whilst servicing a<br />

number of industries including Dairy, Poultry, Agriculture and<br />

Processed Meats, to name but a few.<br />

Says Group Chairman, Kumar Jayasuriya: “This build was a natural<br />

progression for us. We listened to our customers’ needs and growth<br />

plans and were confident that we could offer a premium product,<br />

exceeding their expectations; this explains our expansion plans<br />

within a year of starting commercial operations”.<br />

Work is progressing on a new freezer room.<br />

We have coined the term "mining" for the<br />

process, which efficiently removes the dead<br />

inventory without disrupting the majority of<br />

the warehouse. We can actually purge<br />

inventory out of a facility and, at the same<br />

time, keep approximately 85-90% of the<br />

facility’s inventory available for sale. In<br />

addition to freeing up substantial space, the<br />

purging process results in the older<br />

warehouses becoming a great deal more<br />

productive in revenue generation.<br />

Through the first eight months of 2006, the<br />

purging department was able to remove<br />

approximately 10,000 pallets of dead<br />

inventory, freeing this space for new,<br />

inbound inventory. For this year, at our<br />

current rate of purging, we should be able<br />

to absorb approximately 90% of our entire<br />

incoming inventory into existing older<br />

facilities, without expanding into our newest<br />

facility building #23.<br />

With the automotive industry exceeding<br />

over 59% of our business, we have made the<br />

initiative to spread our business risks over<br />

multiple industries. As a result of this plan<br />

the sales department has recently signed<br />

our newest customer, Bucyrus International.<br />

Bucyrus is based in North America and<br />

is the world’s largest manufacturer of<br />

mining drag lines and electric shovels.<br />

The company was started in 1880; they<br />

supplied 77 of the 102 steam shovels used<br />

to dig the Panama Canal in 1904. The<br />

company currently has approximately<br />

70,000 machines operating in various parts<br />

of the world. Although the program will<br />

start slowly, we expect Bucyrus to contribute<br />

revenues of approximately $250,00 by the<br />

end of year one. Other prospective<br />

customers include Kohler (commercial<br />

plumbing), Ditch Witch (cable trenching)<br />

and Astec Underground (trenching).<br />

Safety continues to be paramount at Finlay<br />

Industries. In addition to our monthly<br />

safety meetings, ergonomic audits, daily<br />

stretching exercises, and annual employee<br />

health risk assessments, I am pleased to<br />

announce we have reached a new plateau<br />

regarding employees’ zero lost time days at<br />

work. At the end of September 2006 we<br />

reached 1,385 safe workdays without lost<br />

work time. This equates to approximately<br />

five calendar years. In the US this type of<br />

safety record is very rare (less than one<br />

tenth of one percent of companies ever<br />

achieve it). If all goes well, by February<br />

2007 we hope to celebrate 1,500 continuous<br />

safe workdays at Finlay Industries. We are<br />

very proud of this accomplishment and I<br />

personally thank all our employees for<br />

keeping safety first and foremost in both<br />

their work and personal lives.


US continued...<br />

Finlay Industries <strong>News</strong><br />

Appointment<br />

James A. Butterbrodt has<br />

been promoted to Vice<br />

President of Finance and<br />

Chief Financial Officer,<br />

effective 1 July 2006.<br />

In addition to being<br />

responsible for all treasury<br />

and accounting related<br />

activities, Jim will oversee<br />

the Human Resource<br />

functions..<br />

Jim has recently completed his MBA course work<br />

and graduated with distinction from Keller<br />

Graduate School in Milwaukee. In addition he has<br />

earned a B.A. degree from Upper Iowa University<br />

and a CMA certificate from the Institute of<br />

Management Accounts. Jim has been with the<br />

company 11 years and lives in Beaver Dam with<br />

his wife Jayne and three children.<br />

Pakistan<br />

Update Irfan Vazeer<br />

The year to date has<br />

seen a further<br />

improvement in<br />

earnings from all the<br />

main divisions of<br />

<strong>Finlays</strong> Pakistan.<br />

The results from the<br />

P&I Division, while<br />

slightly down on budget,<br />

are of course dependent on the demand<br />

from our Principals. Nevertheless, through<br />

sustained marketing efforts and superior<br />

performance, we have proven in the past<br />

that revenue can be improved through an<br />

insistence on high levels of customer<br />

Pakistan <strong>News</strong><br />

Karachi Visitors<br />

Among the visitors welcomed to<br />

Pakistan this year have been:<br />

Graham Sanders, of Swire Cold Storage;<br />

Kobayashi Yasutada, Director of NYK Line,<br />

India; Steve Shin Masuda, General<br />

Manager of NYK Line, Asia; Masumi<br />

Sahashi, Deputy General Manager of TSK<br />

Lines; Anthony L. Cruz, Director/General<br />

Manager of NYK-FilJapan Shipping E-<br />

Services Corporation (TSK Line Manila<br />

Asia Marketing Center); and Leandro J.<br />

Ramos, Assistant Team Leader of the<br />

same company.<br />

Long Services Awards<br />

On 26 September, Finlay Industries, Inc. held its Length of Service Awards banquet at Old Hickory Country<br />

Club. Honorees this year are (front row, l-r): Deborah Neuman, Beverly Kotulski (20 years), Ellen Wallendal<br />

and Donna Vick; (middle row, l-r): Linda Carter, Bonnie Steindorf, Debra Sires and Mary Karst; (back row, l-r):<br />

Arland Kluewer (30 years), Michael Matuszeske, Jeffrey Gilhart and Michael Stange (25 years).<br />

service. As a result we are confident that<br />

the Division will close the year with an<br />

improved performance during the last<br />

quarter. The Survey and Tally Division goes<br />

from strength to strength and is beginning<br />

to become a significant contributor to<br />

Branch revenues<br />

During the year we have had some success<br />

in increasing the income stream from<br />

tenants renting space in Finlay House<br />

in Karachi.<br />

The Shipping Division which is responsible<br />

for generating the bulk of the Branch’s<br />

profits has had a good year with continued<br />

growth arising from a particular focus on<br />

NYK/JF Golf Tournament<br />

A golf tournament, sponsored by chief<br />

hosts NYK Line with James Finlay Limited,<br />

was held by the Karachi Japanese<br />

Association on 27 April at the Arabian Sea<br />

Country Club.<br />

Among the guests were staff of the Japanese<br />

Consulate and the Japanese School, More<br />

than 10 major Japanese trading houses were<br />

represented by Arae San of Indus Motors<br />

The event was much appreciated among the<br />

influential Japanese community which<br />

enjoys an excellent relationship with its<br />

counterparts in Karachi’s business circles.<br />

inbound movements from Japan and from<br />

Far and South East Asia. Outbound<br />

business to North America continues to be<br />

important with both volumes and revenues<br />

experiencing healthy growth. A new, direct,<br />

larger capacity service has been introduced<br />

between Japan and Karachi which will<br />

further increase volumes resulting in a<br />

corresponding improvement in revenues.<br />

We foresee the current trends continuing<br />

for the remainder of the year and are<br />

confident of again achieving a record<br />

pre-tax profit for the Branch.<br />

Operations Manager Salim Khan presents the trophy to<br />

K. Ayukawa, CEO of Suzuki Motor Company, Pakistan.<br />

29


30<br />

Announcements<br />

Births<br />

Adil<br />

On May 24 2006, to Sara, wife of<br />

Adil Mughal, Junior Officer, Accounts<br />

Department, JF Pakistan, a son<br />

Hammad Adil.<br />

Brohier<br />

On 5 March 2006, to Mayumi and<br />

Alvin Brohier, a son, Ethan Dale.<br />

Mayumi is Ticketing & Reservations<br />

Officer, Airline Division, JF & Co.<br />

(Colombo).<br />

Canning<br />

On 9 June 2006, to Geraldine Gundill,<br />

Machine Operator in Finlay Beverages’<br />

Tea Factory, South Elmsall, and<br />

John William Canning, a son<br />

John William (jnr).<br />

Ferdinando<br />

On 22 May 2006, to Natasha, and<br />

Dilum Ferdinando, a daughter,<br />

Neshi Clare. Both parents work for<br />

JF & Co (Colombo), Natasha as General<br />

Clerk, Insurance Department and Dilum<br />

as Staff Officer, Tea Department.<br />

Hughes<br />

On 9 August 2006, to Heather and<br />

Craig Hughes, a son, Carter Thomas.<br />

Heather is the Cash Application<br />

Specialist/ Receptionist at Finlay<br />

Industries, Beaver Dam, Wisconsin.<br />

McCormack<br />

On 11 August 2006 to Michelle<br />

Robinson and Jon McCormack,<br />

a daughter, Kaitlin. Jon is team leader<br />

in Finlay Beverages’ Coffee Factory.<br />

Nanayakkara<br />

On 4 August 2006, to Shanika, wife<br />

of Dinendra Nanayakkara, Group<br />

Systems Auditor, JF & Co. (Colombo),<br />

a son, Dhiren Nevaan.<br />

Perera<br />

On 3 September 2006, to Jeeva, wife<br />

of Samantha Perera, Messenger, Tea<br />

department, JF & Co. (Colombo),<br />

a son, Jerom Sashene.<br />

Rajapaksha<br />

On 4 July, 2006, to Madhu, wife of<br />

Shanaka Rajapaksha, Senior IT<br />

Executive, JF & Co. (Colombo),<br />

a son, Rivinu Nesara.<br />

Sarfaraz<br />

On July 19 2006, to Farzana, wife<br />

of Sarfaraz Ahmed, Junior Officer,<br />

Accounts Department, JF Pakistan,<br />

a son, Muhammad Noman.<br />

Sesath<br />

On 16 August 2006, to Dilhani, wife<br />

of Indika Sesath, Staff Officer, Tea<br />

department, JF& Co. (Colombo),<br />

a daughter, Enuri Methmali.<br />

Siddique<br />

On 15 May 2006, to Mehnaz, wife<br />

of Mr. Siddique, Domestic Staff, PNI<br />

Department, JF Pakistan,<br />

a daughter, Fiza.<br />

Singh<br />

On May 24 2006, to Kanta, wife<br />

of Deepak Singh, Domestic Staff,<br />

PNI Department, JF Pakistan,<br />

a daughter, Darpreet Kour.<br />

Thamira<br />

On 2 September 2006, to Shalini,<br />

wife of Mahesh Thamira, Staff Officer,<br />

Finance & Accounts Division, JF & Co.<br />

(Colombo), a son, Randyn Shalinka.<br />

Toqueer<br />

On 22 June 2006, to Atiya, wife<br />

of Toqueer-ul-Hassan, Junior Officer,<br />

Accounts Department, JF Pakistan,<br />

a daughter, Iqra Tul Iman.<br />

Weeraratne<br />

On 21 August 2006, to Chamari, wife<br />

of Roshan Weeraratne, Cargo Services<br />

Supervisor, Airline Division, JF & Co.<br />

(Colombo), a son, Yashira Nikith.<br />

Weston<br />

On 29 July 2006, to Dawn and<br />

Stuart Weston, a son, Luke James.<br />

Both parents work at Finlay Beverages,<br />

Dawn in the Tea Factory and Stuart<br />

in Engineering.<br />

Marriages<br />

De Silva – Perera<br />

On 4 May 2006, in Colombo,<br />

Nalin De Silva, Storekeeper, Export<br />

Processing Department, JF & Co.<br />

(Colombo), to Arshula Perera.<br />

Lokuge – Senadhipathira<br />

On 22 June 2006, in Colombo,<br />

Sulochana Senadhipathira, Staff<br />

Officer, Agencies Division, JF & Co.<br />

(Colombo), to Lasitha Lokuge.<br />

Silva – Wanniarachchi<br />

On 12 August 2006, In Colombo,<br />

Suresh Silva, Storekeeper, Export<br />

Processing department, JF & Co.<br />

(Colombo), to Dulani Wanniarachchi.


Deaths<br />

Boyce<br />

On 29 April 2006, at Guildford,<br />

Joyce Constance, aged 78, widow of the<br />

late Thomas Boyce, ex George Payne.<br />

Briam<br />

On 7 August 2006, at Eastbourne,<br />

Reginald Henry Briam, aged 86, retired<br />

Clerical Supervisor with George Payne<br />

1959-1984.<br />

Coen<br />

On 2 July 2006 in London, Ontario,<br />

Cecil Malcolm (Sammy) Coen, aged 86,<br />

late of James Finlay’s London office.<br />

He leaves a widow, Isabel.<br />

Dobson<br />

On 1 August 2006, in Dumfries,<br />

James Dobson, aged 72. Jimmy retired<br />

in 1994 as commissionaire at James<br />

Finlay’s Glasgow office. He is survived<br />

by his widow, Janette.<br />

Emms<br />

On 21 August 2006, aged 71,<br />

Raymond Andrew Acfield Emms,<br />

of Lupiac, France. He retired from<br />

The African Highlands Produce Co.<br />

in 1977 and leaves a widow, Annette<br />

Sheila.<br />

Farnell-Watson<br />

On 27 October 2006, in London,<br />

Arthur Vivian Farnell-Watson,<br />

aged 84, former Director of S.H.Lock.<br />

Fenlon<br />

On 22 April 2006, at East Grinstead,<br />

Surrey, Winifred May Taggart, aged 93,<br />

widow of Eric Victor Fenlon, late of<br />

P.R. Buchanan.<br />

Foames<br />

On 6 April 2006, at Southwark,<br />

Ann Elizabeth, aged 68, retired<br />

Production Worker with George Payne<br />

at Tower Bridge, 1977-1991.<br />

Gates<br />

On 29 May 2006, at Epsom,<br />

Ethel Beatrice (Pauline), aged 80,<br />

widow of the late P. B. Gates, Sales<br />

Manager with George Payne.<br />

Ilieve<br />

On 20 February 2006, at Reigate,<br />

Nancy Olive Passmore, aged 85,<br />

widow of the late Ernest James Edwin<br />

Ilieve, Company Director (Tea),<br />

George Payne.<br />

MacPhail<br />

On 9 April 2006, in Rutherglen,<br />

Jessie MacPhail, aged 86. Miss<br />

MacPhail, a former secretary at James<br />

Finlay’s Glasgow office, retired in 1974.<br />

Mitra<br />

On 30 July 2006, Samir Kumar Mitra,<br />

aged 84, formerly Cost Accountant<br />

Manager in the Calcutta office of<br />

James Finlay/Tata-Finlay/Tata Tea.<br />

He leaves his widow, Krishna,<br />

and daughter, Anuradha.<br />

Murchie<br />

On 16 July 2006, at Invergordon,<br />

Marguerite Murchie, aged 89, widow<br />

of William Hunter Murchie, late tea<br />

planter with The Consolidated Tea<br />

& Lands Co. in Bangladesh.<br />

Paul<br />

On 11 September 2006, at Tunbridge<br />

Wells, Beatrice Rose, aged 87, formerly<br />

Sweet Factory Supervisor (Paper Stores)<br />

with George Payne, 1932-1978.<br />

Prior<br />

On 10 April 2006, in the London<br />

Borough of Sutton, Albert George,<br />

aged 91, retired Stock Control<br />

Supervisor, George Payne.<br />

Whicker<br />

On 7 August 2006, in Croydon,<br />

David Albert, aged 66, retired<br />

Factory Worker with George Payne.

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!