Iconic British tea company, Typhoo Tea, has been saved from collapse in a multimillion-pound deal by vape company Supreme. The 120-year-old British-based firm was facing administration due to declining sales and mounting debts before being acquired by Supreme for £10.2 million. Despite recent challenges, Supreme assures there will be no disruption to the supply of Typhoo Tea during the acquisition process.
In addition to financial struggles, Typhoo Tea experienced a setback last year when thieves targeted its factory in Wirral, Merseyside, causing extensive damage. The company’s latest filings showed a £38 million loss last year, with sales plummeting by a quarter to £25.3 million. Typhoo Tea, founded in 1903, has fewer than 100 employees and has appointed Kroll to manage its administration process.
Supreme, known also as a drinks manufacturer, is expanding its business beyond vaping, especially in anticipation of government regulations on disposable vapes. In a statement, Supreme expressed optimism about the acquisition, believing Typhoo Tea will thrive under its ownership and benefit from Supreme’s market reach and brand loyalty expertise. This move aligns with Supreme’s strategy to diversify its portfolio, having acquired soft drinks business Clearly Drinks earlier this year.
Sandy Chadha, the Chief Executive of Supreme, emphasised the strategic significance of acquiring Typhoo Tea and the opportunities it presents for product innovation and cross-selling. Sandy, who has been with Supreme since 1988, highlighted the potential of partnering with credible UK retailers through this acquisition. The completion of the rescue deal marks a significant milestone in Supreme’s expansion and diversification efforts.
This acquisition not only saves an iconic British brand but also signals a new chapter for Typhoo Tea under Supreme’s ownership. The merger of these two entities opens up possibilities for growth and innovation in the competitive beverages market. With Supreme’s vision and expertise, Typhoo Tea is poised to navigate through its challenges and emerge stronger in the industry.