Company looks for jolt in jasmine business

Updated: 2014-12-19 11:23

By Hu Haiyan, Hu Meidong and Sun Li(China Daily Europe)

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Nearly 150 years of history gives brew its distinct flavor

Fu Tianlong feels he has a social obligation as onerous as protecting one of China's most loved national treasures, the panda.

"As with pandas and chopsticks, jasmine tea is a valuable traditional asset, synonymous with China," says Fu, president of Fujian Chunlun Group.

As part of that task, Fu is keen for the world to be acquainted with the tea.

"Fuzhou has a history that is intimately linked to jasmine tea, and when you add to that the favorable geography and technological know-how and innovation, I am confident that jasmine tea can win international recognition," he says.

Fujian Chunlun Group, founded in 1985, has grown into the world's largest jasmine tea producer in terms of output. Its plantation and production areas cover 45,000 square meters and in recent years it has made about 3,300 metric tons of tea a year. Last year it had revenue of 700 million yuan ($113 million; 91 million euros), 75 percent of which came from jasmine tea, with a return on profit at about 8 percent, Fu says.

"We expect revenue will be 750 million yuan this year, and that by 2017 the figure will grow to more than 1 billion yuan. We also plan to have the company listed by 2020."

Every year about 3-5 percent of the revenue goes into research and development, and the group has 19 patents, Fu says.

Speaking in the group's headquarters, the air permeated with the aroma of jasmine tea and the sounds of Jasmine Flower, a popular Chinese folk song, Fu says the group needs to transform and upgrade even as it adheres to the main business at hand, selling jasmine tea.

"The business needs to be revitalized, and value-added products and services should be developed. In an effort to promote jasmine tea culture we have taken steps such as diversifying our product mix, opening a jasmine tea culture and exhibition center and expanding exports."

Fu is from a poor family and has eight siblings. His father died when he was 15, and he was forced to leave school and start working.

"Life was quite turbulent in those days and, looking back, I think those tough times taught me a great deal. A central element of Chinese culture pertains to being centered, and enjoying jasmine tea helps maintain inner peace."

Attached to the tea are the positive attributes of dedication, devotion, endeavor and tolerance, he says.

"I get a lot out of the tea's fragrance, and it inspires me in the things I do."

While Fu spends a great deal of time in his office being a manager, that does not stop him getting his hands dirty from time to time out in the fields near where he lives, cultivating jasmine.

"My family has very long links with jasmine tea," says Fu, who is also vice-director of the Fuzhou Jasmine Tea Industry Association. "My grandfather's grandfather was in the industry 146 years ago."

Chunlun Group was founded by Fu and his twin brother; he is in charge of the tea business and his twin is in charge of the flower business.

Starting with just the jasmine tea business, the group's activities have expanded into areas including black tea, green tea, gift tea, instant tea, oolong tea, special health promoting tea and white tea. The group has also developed spin-off products such as using the jasmine flower to make hand cream or perfume, Fu says.

"The profit return on these tea-related products is much higher than with jasmine tea, about 30 percent, which is a great boost for our main business."

The company has also opened, at a cost of 30 million yuan, a three-floor building it calls a Culture and Innovation Park, which was ranked as a national AAA-level tourist destination last month.

In Fuzhou the group has a plantation covering 55 hectares that doubles up as a sightseeing area, Chunlun Jasmine Tea Culture Creative Garden, the Jasmine Tea Demonstration Center and 500 hectares of jasmine plantations. Across Fujian province it has plantations covering 2,800 hectares.

Fu says about two percent of its products are sold overseas, including in North America and Russia.

"We export very little jasmine tea, but that is sure to rise."

There are big gaps between Chinese jasmine tea producers and big foreign brands such as Lipton's and Twinings in terms of sales and market share, he says, because "we lag a great deal when it comes to industrialization".

Nevertheless, this stiff competition is beneficial because it drives the company as it tries to improve its performance, he says.

Some of the basic procedures in producing jasmine tea rely on manual labor rather than machines, he says.

"If you want to greatly expand production, industrialization is critical. Challenges and opportunities always come in twos. Competition can also force us to improve standardization in production. Yes, we compete with other big companies, but at the same time we learn from one another."

Fu says the government should give some help to encourage jasmine tea exports.

"When you export these products you face problems that you don't have when you sell them domestically, such as language barriers. In addition, jasmine tea products do not enjoy the reputation they have in China, and that calls for government support.

"The government can do more wide-ranging work such as jasmine tea culture promotion activities. Selling overseas would be a lot easier if people in other countries were acquainted with jasmine tea culture.

"I firmly believe that one day the world will grow to appreciate the aroma of jasmine tea and drinking it, but these things take time, and I reckon it will take about 30 years for us to realize this."

Contact the writers through huhaiyan@chinadaily.com.cn

 Company looks for jolt in jasmine business

Fu Tianlong, president of Fujian Chunlun Group, says there are big gaps between Chinese jasmine tea producers and big foreign brands in terms of sales. Sun Li / China Daily

(China Daily European Weekly 12/19/2014 page16)