Typhoo, an iconic British tea company that has been in business for over 120 years, has been sold after collapsing into administration. Vapes and drinks manufacturer Supreme confirmed that it has acquired Typhoo tea for a multi-million pound rescue deal. The acquisition includes Typhoo Tea’s stock and trade debtors with a book value of £7.5 million. Supreme plans to grow the drinks and nutrition part of its business by adding the historic brand to its portfolio. The move comes as Supreme reduces its focus on vaping in anticipation of a government clampdown on disposable vapes next year.
Supreme’s chief executive officer, Sandy Chadha, expressed optimism about the acquisition, stating that he believes Typhoo Tea will thrive under their ownership. However, the future of jobs at the company remains uncertain as decisions are yet to be made. Typhoo, one of Britain’s oldest tea companies, had warned of collapse earlier this month due to declining sales, mounting debts, and a break-in at its factory. The acquisition by Supreme is seen as a significant step in the company’s diversification strategy and an opportunity to leverage its market reach to benefit the iconic brand.
Typhoo faced a series of challenges in recent years, including declining sales, supply shortages, and a break-in at its factory in Merseyside. Despite its long-standing presence in the UK tea market, the company struggled financially, pushing it to the brink of administration. The acquisition by Supreme offers a lifeline to Typhoo, ensuring that the brand will continue to be available on supermarket shelves and maintain its presence in the market. The deal marks a new chapter for Typhoo as it becomes part of the Supreme family and gains access to the company’s resources and expertise.
The volume sales of ordinary tea in the UK have been decreasing, with other beverages like coffee and energy drinks gaining popularity. Typhoo’s struggle to adapt to changing consumer preferences and market dynamics contributed to its financial difficulties. The company’s decision to shut down its site in Moreton and discontinue unprofitable lines reflected its efforts to streamline operations and focus on profitable segments. The acquisition by Supreme provides Typhoo with the opportunity to revitalize its brand and tap into new markets under new ownership.
Typhoo’s entry into administration is part of a broader trend of companies facing financial challenges in recent years. Several well-known brands, such as Homebase, Carpetright, TGI Fridays, and Tupperware Brands, have filed for bankruptcy or gone into administration due to various factors impacting their business operations. The retail and hospitality industries have been particularly affected by economic uncertainties and changing consumer behaviors. Companies facing financial pressures must adapt quickly to survive in a competitive market and ensure their long-term viability.
While the future of Typhoo under Supreme’s ownership remains uncertain, the acquisition presents an opportunity for the historic brand to thrive and regain its competitiveness in the market. The transition to new ownership will require strategic planning and careful management to leverage the strengths of both companies. As Typhoo embarks on a new chapter, it will need to address its operational challenges, adapt to changing consumer preferences, and revitalize its brand to secure its position in the UK tea market. The acquisition by Supreme offers hope for Typhoo’s revival and underscores the resilience of iconic brands in times of economic uncertainty.
