Reviving Tradition: Typhoo Tea's Rescue by Supreme in £10m Deal

Typhoo Tea, a storied British tea brand with a 120-year legacy, has been rescued from administration by Supreme, a vape and consumer goods manufacturer, in a £10 million deal. This acquisition aims to keep the iconic brand firmly within British control following a challenging period characterized by declining sales and rising debts.

Having entered administration in November, Typhoo experienced significant pre-tax losses, escalating from £9.6 million to an alarming £38 million, and witnessed a drop in sales from £33.7 million to £25.3 million by September 2023. With debts surpassing the value of its assets and additional financial strain due to a break-in at its Wirral production facility, the future looked bleak for the renowned teamaker. Currently, Typhoo operates with a modest workforce of fewer than 30 staff members in the UK, focusing mainly on sales and marketing after outsourcing much of its operations in recent years.

Historically, Typhoo has been a marketing powerhouse, featuring prominent celebrities in its advertisements from the 1980s, such as Cilla Black and Frankie Howerd. The brand’s catchy slogan, “you only get an ‘oo’ with Typhoo”, alongside memorable commercials, including one with entertainer Su Pollard, helped establish its place in British culture. Notably, in 2016, celebrity chef Nigella Lawson was appointed as the brand’s ambassador.

Sandy Chadha, chief executive of Supreme, emphasized the strong “business rationale” and personal connection to Typhoo in their decision to acquire the brand. This move aligns with Supreme’s broader strategy to diversify its product offerings, which currently encompass beverages, nutrition supplements, and non-food items like batteries and lighting. The company already supplies several major retailers, including Sainsbury’s and Tesco, as well as the HM Prison and Probation Service.

Industry analyst Susannah Streeter from Hargreaves Lansdown noted that Supreme’s acquisition is a ‘bargain’ that could lead to enhanced efficiency and the potential return to profitability for Typhoo. She suggested that the company could leverage the growing wellness trend in tea consumption—tying it to their health-focused supplements and multivitamin products.

Despite Typhoo’s long-standing market presence—including fierce competition from rival brands like PG Tips, Tetley, and Yorkshire Tea—it is not immune to broader trends affecting the tea industry. Black tea sales have been historically declining, pressured by the rising popularity of coffee, soft drinks, and herbal teas. Moreover, the emergence of supermarket own-label brands has further challenged the traditional tea giants.

Nonetheless, Typhoo retains a loyal consumer base that Supreme is keen to tap into as it aims to rejuvenate the brand and restore its market standing. With strategic refinements and a commitment to revitalizing operations, Typhoo is poised to navigate a path back to prominence in the competitive UK tea market.