Typhoo Tea, a 120-year-old brand, has gone into administration, as its losses widen, sales slump and debts rise. Advisory firm Kroll has been appointed as administrator to find a buyer for the tea business. Vape and battery maker Supreme is considered a front runner to purchase Typhoo, but there is “no certainty” a deal will go ahead. According to Kroll, Typhoo has been exploring a sale of its business and its assets, which is reaching its conclusion.
Kroll added that the administration process would offer Typhoo Tea protection, allowing the joint administrators to conclude the sale and rescue the business. Manchester-based Supreme, which distributes Duracell and Energiser batteries and Elf Bar vapes, is on the verge of purchasing Typhoo Tea to diversify its business. Though the company doesn’t currently sell or distribute any tea brands, it does consider working with soft drinks, gym supplements and multivitamin gummies.
Kroll also revealed that Typhoo had faced significant cash flow constraints as a result of supply chain disruptions and subsequent service issues. The brand’s latest financial results reveal pre-tax losses extending from £9.6m to £38m in the year leading up to September 2023, and sales falling from £33.7m to £25.3m. Additionally, the company’s debts have surpassed the worth of its assets.
Founded in Bristol and currently majority-owned by private equity firm Zetland Capital, Typhoo Tea was established in 1903 by John Sumner. Despite being viewed as one of the UK’s main tea brands, alongside Tetley, Yorkshire Tea, and PG Tips, the company’s administration took place two months after the company revamped its brand with “Fear Free Tea”. This campaign highlights the violence and abuse in the tea supply chain. The 2023 BBC Panorama documentary Sex for Work: The True Cost of our Tea unveiled that three in four women interviewed at tea plantations had suffered sexual abuse. The Typhoo campaign doesn’t guarantee that their own product is “fear-free,” but it invites the tea industry to question and assess whether their teas are free of sexual violence
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