Britain's Supreme has bought out loss-making tea brand Typhoo Tea from administration in a £10.2 million deal, the fast-moving consumer products seller said on Monday (2).
The 120-year-old tea brand had fallen into administration in November due to declining sales and mounting debt pressures. A break-in at its Merseyside factory in August 2023 exacerbated the company's cost pressures, and the site was subsequently shuttered.
Typhoo generated revenues of about £20m for the year to 30 September, with a pre-tax loss of about £4.6m. The new owner said it plans to run Typhoo on a “capital-light, outsourced manufacturing model” in a bid to improve profits.
As stated by the FMCG giant, Supreme plans to turn Typhoo’s fortunes around by leveraging its efficient supply network to keep products flowing into stores, thereby reducing some of the costs which were dragging Typhoo down, and giving it a new lease of life.
The company’s decision to purchase Typhoo is a mix of sound business rationale and personal affinity.
Sandy Chadha, Supreme CEO, said, “I grew up with Typhoo. Drinking it and watching the ‘you only get an OO with Typhoo’ ads with Su Pollard from Hi-di-Hi. That was my era. Typhoo is such an iconic brand, and with Supreme’s distribution network and resources, we have the scope to grow and develop it.
“The acquisition of Typhoo Tea Ltd marks a significant step in our broader diversification strategy and brings one of the most iconic UK consumer brands into the Supreme family. I believe Typhoo will thrive under our ownership, further benefitting from Supreme’s significant market reach and successful track record in creating brand loyalty, making us an ideal fit for this business.
“We are very excited about these latest additions to our portfolio, which mean we can serve our existing customers even better and get acquainted with many new ones.”
Supreme plc is a Manchester-based company that manufactures and supplies a variety of everyday items to supermarkets, specialist retailers and direct to consumers. These include Duracell and Energizer batteries, SCI-MX (sports nutrition), Sealions (nutritional supplements), Perfectly Clear drinks, and Black & Decker lighting. Supreme also supplies several brands of vapes, including its own-manufactured 88Vape.
The latest move is said to be part of a strategy by Supreme to expand its operations away from vaping, after buying the soft drinks business Clearly Drinks earlier this year, before a planned government crackdown on disposable vapes.
