Consumer Goods

Comprising the largest branded tea business in the country, an internationally renowned tea exports enterprise, and a market-leading confectionery business, Sunshine’s consumer goods vertical is a force to be reckoned with in Sri Lanka’s fast-moving consumer goods (FMCG) industry. Over the past 25 years, Sunshine Consumer Lanka – a Rs. 19 Bn. business – has evolved strategically, with improved efficiencies across its business units leading to notable and sustainable growth, overcoming both domestic and global challenges.

Our domestic tea business, the mainstay of the consumer segment, continues to thrive, accounting for over 50% of the local branded tea market. Sunshine’s brands Zesta, Watawala, and Ran Kahata, all reliably record high sale volumes in their respective target markets year after year, while our confectionery business Daintee is responsible for 4 iconic brands namely Daintee, Xtra, Milady and DainteeHearts Our export arm, Sunshine Tea (Pvt) Ltd, meanwhile, is consistently ranked among the top exporters of Ceylon Tea, with over 200 varieties of the finest teas grown in the island sold to an exclusive clientele scattered over 80 countries.

In the 2024-25 financial year, our domestic tea business confronted heavy external pressures to deliver steady growth. Despite an 18% VAT on branded tea which had continued from the previous year, all three tea brands retained their market leadership, collectively holding a share in excess of 50%. A disciplined pricing strategy, combined with strong field execution and continued brand and equity investment contributed to significant volume growth. The year under review also saw a major structural shift in the integration of tea and confectionery sales teams into a unified FMCG force, which has served to boost reach and operational efficiency across some 99+ SKUs.

The confectionery business also underwent a strategic recalibration in 2024-25. Though sales declined amid softer consumer spending and higher taxes, Daintee’s focus shifted to long-term brand building and innovation, with the Company absorbing the VAT burden to maintain affordability. A new cocoa powder-based chocolate SKU was piloted during the reporting period, while reducing reliance on promotions in favour of in-store visibility and equity-driven growth.

On the export front, Sunshine Tea (Pvt) Ltd. recorded 11% volume and 22% USD revenue growth, driven by demand for value-added formats like tea bags and growing traction in East Asia’s ready-to-drink (RTD) and bubble tea segments. The business continues to balance bulk and branded exports in over 80 markets, underpinned by a fully automated, vertically integrated facility and newly internalised warehousing. As traditional markets face mounting risks, Sunshine is accelerating its push into Asia and Africa, where growth is more stable and sustainable.

Overall, 2024-25 was a period of consolidation, one that prioritised structural clarity, market adaptability, and long-term value over short-term gains. With stronger foundations in place, Sunshine’s consumer goods vertical is ready to face the new financial year with renewed vigour.