Iconic British tea company saved from collapse in multimillion pound deal

Iconic British tea company, Typhoo Tea, has been rescued from collapse in a multimillion-pound deal. The 120-year-old tea firm, based in the UK, was saved by vape company Supreme, a drinks manufacturer, for a total of £10.2 million. Following years of declining sales and mounting debts, Typhoo Tea was forced into administration before being acquired by Supreme.

Supreme has assured that there will be no disruption in the supply of Typhoo during the acquisition process. Typhoo Tea also faced challenges in the past year when its factory in Wirral, Merseyside, was broken into by thieves, causing extensive damage. Despite these setbacks, Supreme remains optimistic about the future of Typhoo Tea under its ownership.

With less than 100 employees, Typhoo Tea reported a £38 million loss last year, with sales plummeting by a quarter to £25.3 million. The company has appointed Kroll to handle its administration process. Supreme’s purchase of Typhoo Tea aligns with its strategy to diversify its business away from vaping, in anticipation of the Government’s crackdown on disposable vapes. Earlier this year, Supreme also acquired soft drinks business Clearly Drinks.

In a statement, Supreme’s Chief Executive, Sandy Chadha, expressed confidence in the acquisition, stating that Typhoo Tea will benefit from Supreme’s market reach and successful track record in brand loyalty. Sandy described the move as significant for Supreme’s diversification strategy and highlighted the potential for cross-selling and product innovation opportunities with Typhoo Tea’s brands.

The acquisition of Typhoo Tea represents a new chapter for the historic British tea company, ensuring its legacy endures under new ownership. Supreme’s commitment to expanding its portfolio and leveraging synergies with Typhoo Tea signals a positive outlook for both companies in the consumer goods market.

In conclusion, the acquisition of Typhoo Tea by Supreme represents a strategic move to revitalise a renowned British brand and drive growth in the competitive consumer goods sector. With a focus on innovation and market reach, Supreme aims to harness the heritage and value of Typhoo Tea to create new opportunities and strengthen its position in the market.