BEVERAGE SECTOR
COMPILED BY Prashanthi Cooray
TASTE WITHOUT COMPROMISE
Dushyantha De Silva shares his unique blueprint for bottling Sri Lankan flavour
Q: How would you describe the main shifts taking place in Sri Lanka’s beverage sector? And what factors are driving them?
A: The biggest shift is that consumers are questioning what they drink. Taste and price still matter, but ingredients, sugar, functionality and lifestyle are now equally important.
And the traditional middle of the market is becoming increasingly difficult to occupy. Consumers are either trading up for products they value or becoming highly price conscious. For brands such as ours, you need to be sufficiently compelling to command a premium or accessible to win the mass market.
Travel, hospitality and social media are raising expectations; yet, there is still plenty of old thinking packaged in new bottles.
The goal is to stop selling beverages as commodities and create products around what people want to feel, achieve or experience.
Q: How are consumers’ interest in what goes into their drinks, and attention to labels, changing the way beverages are produced and marketed?
A: This is where the shift gets interesting. Consumers are no longer simply asking whether a drink tastes good; they are asking whether it deserves a place in their lives.
That puts pressure on manufacturers to rethink sugar, artificial additives and functional ingredients. However, there is a danger of creating products that are technically ‘better for you’ but nobody wants to drink.
Taking sugar out is easy. Taking the compromise out is harder.
Creating beverages where health and enjoyment go hand in hand is the real challenge. If consumers have to sacrifice taste to make a better choice, the product has already lost.
Q: With its abundance of fruits, herbs, spices and other indigenous ingredients, how can Sri Lanka turn these resources into commercially viable beverages?
A: Sri Lanka has exceptional raw materials but lacks the infrastructure to turn them into reliable cost competitive ingredients.
Consistency and economics are non-negotiable. An ingredient may be distinctive but seasonal supply, inconsistent quality or high costs can limit scalability. Investment is therefore needed in processing technology, testing laboratories, packaging, logistics, working capital and technical expertise.
The beverage sector is well placed to create circular systems, where even small improvements across millions of units can have a huge impact
Building an integrated value chain is crucial to connecting farmers with processors, food scientists and beverage developers. Standardised, shelf stable and cost-effective indigenous ingredients would enable brands to scale confidently, for domestic and export markets.
Sri Lanka does not lack ingredients; it lacks the infrastructure to make them commercially dependable. And without it, many promising resources will remain niche rather than the foundation of a scalable beverage sector.
Q: Where do you see the greatest opportunities for the beverage sector to reduce its environmental footprint?
A: Opportunities exist across the value chain rather than in one area.
Packaging is an obvious one but sustainability also needs to be addressed through sourcing, manufacturing, transportation, water use and post-consumption packaging.
The beverage sector is well placed to create circular systems, where even small improvements across millions of units can have a huge impact. But sustainability must also be commercially practical. Responsible sourcing, efficient production, recyclable or reusable packaging and waste reduction must make economic sense.
The next generation of consumers will expect brands to demonstrate – not merely communicate – responsibility.
Q: What could make a Sri Lankan beverage stand out – and how can our distinctive ingredients and flavours be turned into an advantage?
A: I don’t think ‘Made in Sri Lanka’ is a strategy in itself. It only becomes an advantage if we can make products the world wants by using what makes Sri Lanka unique.
Sri Lanka has an extraordinary natural toolbox, from spices and botanicals to ingredients rooted in Ayurvedic knowledge. But many come at a cost premium, making it difficult to compete purely on price.
The key is to use these distinctive ingredients to meet modern consumer needs in a contemporary and internationally relevant way. Don’t sell the ingredient first; sell the benefit, taste and experience, and let the Sri Lankan provenance become the story behind the product.
That requires world-class formulation, design, quality, consistency and execution. After all, Sri Lanka doesn’t have to compete by being cheaper. We can compete by being more distinctive, relevant and interesting.
Q: What do you believe will define a successful beverage business in Sri Lanka over the next five to 10 years?
A: Adaptability will be the defining characteristic.
The sector is changing too quickly for businesses to rely on what worked five or 10 years ago. Successful companies will need to understand consumers, innovate continuously and challenge established categories.
I also see a shift from individual products to brands and experiences. Being on a shelf is no longer enough; consumers are discovering brands through hospitality, culture and social media.
Sri Lankan beverage businesses also need to think beyond the domestic market, building products with international potential from the outset.
Businesses that balance local strengths with global ambition will be best placed to succeed internationally.
Dushyantha De Silva is the Founding Director of SOZO Beverages.
