(qlmbusinessnews.com Mon. 2nd Dec, 2024) London, UK —
120-Year-Old Typhoo Tea Seeks Buyer After Sales Plunge and Losses Mount
Typhoo Tea, one of Britain’s most iconic tea brands, has entered administration following a sharp decline in sales, mounting losses, and increasing debts. The 120-year-old company, headquartered in Bristol, has appointed advisory firm Kroll to oversee the administration process and search for a buyer.
Manchester-based Supreme, known for its production of batteries and vapes, has emerged as the leading contender to acquire the brand. However, Supreme has stated that “no certainty” exists regarding the completion of the deal.
Struggles Amid Financial and Operational Challenges
Typhoo has faced significant financial pressures in recent years. Its latest accounts reveal that pre-tax losses widened to £38 million in the year ending September 2023, up from £9.6 million the previous year. Sales dropped from £33.7 million to £25.3 million, while the company’s debts outstripped the value of its assets.
Operational setbacks have compounded Typhoo’s difficulties. Last year, trespassers broke into its former Moreton factory in Merseyside, causing extensive damage that rendered the site unusable. The incident resulted in unusable stock and disrupted customer orders, contributing to £24.1 million in exceptional costs.
Kroll stated that the administration process would provide Typhoo with the necessary protection to finalise a sale and potentially rescue the business.
Supreme’s Potential Diversification
Supreme, which distributes well-known battery brands such as Duracell and Energizer, as well as Elf Bar vapes, is reportedly in advanced talks to acquire Typhoo Tea. Although it has no experience in the tea sector, Supreme has been expanding its portfolio, which includes soft drinks and nutritional supplements.
The company acknowledged the advanced stage of negotiations but clarified that no final terms had been agreed.
A Storied History
Founded in 1903 by Birmingham native John Sumner, Typhoo Tea has long been a staple in British households, standing alongside competitors such as PG Tips, Tetley, and Yorkshire Tea. The brand recently launched a campaign titled *Fear Free Tea*, addressing violence and abuse in the tea supply chain.
Despite its storied history, Typhoo now faces an uncertain future as its financial troubles highlight the challenges of sustaining heritage brands in a rapidly evolving market.
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