Supreme, a vape manufacturer, has acquired Typhoo Tea after the tea brand went into administration due to financial struggles. Typhoo Tea, a century-old British brand, recorded almost £40,000,000 in losses last year, leading to its filing for administration. After a two-week search for a buyer, Supreme stepped in and acquired Typhoo Tea for a cash consideration of £10,200,000. The deal includes Typhoo Tea’s stock and trade debtors, valued at £7.5 million. Supreme aims to diversify its business by venturing into drinks and nutrition, especially with the upcoming government ban on disposable vapes next year.
Typhoo Tea, founded in 1903 by Birmingham grocer John Summer, faced financial challenges due to changing consumer habits, such as a shift from tea to coffee, along with the impact of the coronavirus pandemic and supply chain issues related to the Russia-Ukraine war. Despite being a kitchen staple for many, Typhoo Tea struggled financially, leading to its administration. The company relocated its headquarters from Moreton, Wirral to Bristol last year, resulting in 85 job losses. Further costs were incurred when trespassers damaged the empty factory building in Moreton, causing approximately £24,000,000 in damages.
The declining trend of tea consumption has been evident since the mid-1970s, with consumers opting for alternative hot drinks like herbal infusions and coffee. According to the 2023 Statista Global Consumer Survey, last year, 63% of people preferred coffee over tea, which was only chosen by 59% of individuals. Despite its challenges, Typhoo Tea remained a beloved brand known for its slogan “you only get an oo with Typhoo.” Supreme’s acquisition of the tea brand marks a significant step in their diversification strategy, with plans to leverage their market reach and successful brand loyalty track record to benefit Typhoo Tea.
Supreme’s CEO, Sandy Chadha, expressed confidence in Typhoo Tea’s future under their ownership, emphasizing the company’s ability to enhance the brand’s performance with their expertise and resources. By integrating Typhoo Tea into their business operations seamlessly, Supreme aims to continue delivering high-quality products and services to customers. The acquisition of Typhoo Tea aligns with Supreme’s broader strategy to expand into new markets, such as drinks and nutrition, while also preparing for regulatory changes in the vaping industry anticipated next year. The move signifies Supreme’s commitment to growth and innovation in the face of evolving consumer preferences and regulatory landscapes.
The acquisition of Typhoo Tea by Supreme has brought hope to the beloved British tea brand, which was on the brink of collapse before the deal. Supreme’s acquisition of Typhoo Tea for £10.2 million out of administration signals a new chapter for the historic brand. With Supreme’s expertise in manufacturing, distribution, and brand loyalty, Typhoo Tea is poised to thrive under the new ownership. The integration of Typhoo Tea into Supreme’s operations is expected to proceed smoothly, ensuring continuity in product quality and customer service. The acquisition represents a strategic move by Supreme to diversify its business portfolio and capitalize on emerging market opportunities in the beverage industry.
