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Supreme, a vape maker, has purchased struggling 120-year-old British tea brand Typhoo in a £10m deal. This purchase rescues the brand from administration, which it entered in November due to rising debts and falling sales. Sandy Chadha, Supreme’s chief executive, describes Typhoo as “an iconic brand” and explains that the decision to buy it was based on both “sound business rationale and personal affinity”. The purchase is also part of Supreme’s strategy to explore new areas, which includes soft drinks, sports nutrition, gym supplements, and multivitamin gummy brands, in addition to non-food items such as batteries and home lighting.
Typhoo, famously featured in equestrian-themed advertisements with entertainer Su Pollard in the 1980s, currently employs less than 30 people in the UK; most of its operations have been outsourced. In 2016, the brand appointed celebrity chef Nigella Lawson as a brand ambassador. Typhoo has weathered declining sales due to a wider downturn in black tea sales, possibly due to competition from coffee, soft drinks, and herbal teas. Although priced at the cheaper end of the tea market, Typhoo remains one of the biggest names in tea in the UK, alongside PG Tips, Tetley, and Yorkshire Tea.
Supreme currently distributes nicotine and home products to supermarkets, such as B&M, Home Bargains, Sainsbury’s, Tesco, The Range, Poundland, and HM Prison and Probation Service, and it will add Typhoo to its portfolio. Hargreaves Lansdown analyst, Susannah Streeter, suggests that Supreme may aim to reduce costs and find efficiencies to encourage Typhoo back to profit. She also speculates that given tea’s wellness image, the brand may be suitably connected to its supplements and multivitamin arm.
Typhoo faced large pre-tax losses of £38m, up from £9.6m the previous year, and sales fell from £33.7m to £25.3m in the year ending September 2023. The firm’s debts exceeded the value of its assets, and additional costs from a break-in at its Wirral plant compounded its financial pressures. However, Supreme believes that Typhoo has a loyal customer base and the potential to thrive under its ownership
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