Much loved tea brand saved after being bought out for £10,200,000

A beloved British tea brand has been saved from the brink of collapse by a vape manufacturer.

Fans of Typhoo Tea were left shocked after the century-old firm filed for administration last week after recording almost £40,000,000 losses last year.

The tea brand began looking for a buyer and after a two-week search, the vapes and drinks manufacturer Supreme announced it had taken over Typhoo.

Supreme confirmed today it had acquired the ‘long-established and well-known British tea brand’ for a cash consideration of £10,200,000, the Sun

In a statement issued today, the manufacturer said: ‘Supreme is pleased to announce the acquisition of the trade and selected assets of Typhoo Tea Limited (“Typhoo Tea”), a long-established and well-known British tea brand, for a total cash consideration of £10.2 million (the “Acquisition”) out of administration.

‘The deal includes Typhoo Tea’s stock and trade debtors with a book value of £7.5 million and Supreme expects the integration of the business to proceed without disruption to existing operations or customer service levels.’

The Manchester-based Supreme is known as a manufacturer, owner and distributor of batteries, lighting and vapes. Everyday items it supplies include Duracell and Energizer batteries, SCI-MX sports nutrition, Perfectly Clear drinks, Black & Decker lighting and its own-manufactured 88Vape.

By swooping in to rescue Typhoo, the company wants to branch out into drinks and nutrition, reportedly ahead of the government ban on disposable vapes next year.

Supreme’s chief executive officer Sandy Chadha said: ‘I grew up with Typhoo. Drinking it and watching the ‘you only get an OO with Typhoo’ ads with Su Pollard from Hi-di-Hi. That was my era.

‘Typhoo is such an iconic brand, and with Supreme’s distribution network and resources, we have the scope to grow and develop it.’

The acquisition marks ‘a significant step in our broader diversification strategy,’ he said.

‘I believe Typhoo Tea will thrive under our ownership, further benefitting from Supreme’s significant market reach and successful track record in creating brand loyalty, making us an ideal fit for this business,’ he added.

What happened to Typhoo Tea?

Before collapsing into administration, Typhoo Tea had struggled financially despite being a kitchen cupboard staple.

It was hit by changing consumer habits from tea to coffee along with the coronavirus pandemic, while the Russia-Ukraine war reportedly caused supply chain issues.

Typhoo was founded in 1903 by Birmingham grocer John Summer and it became known for its ‘you only get an oo with Typhoo’ slogan.

Until July last year, Typhoo was based in a factory in Moreton, Wirral before it shut the plant down resulting in 85 job losses and relocated to its new headquarters in Bristol.

It was then hit by further costs after trespassers damaged the empty factory building in Moreton in August last year, causing damage worth around £24,000,000, according to the Business Desk news.

Tea drinking has been falling since the mid-1970s as consumers have been opting for other hot drinks such as herbal infusions and coffee.

Last year, 63% of people popped the kettle to make coffee compared to 59% doing so for tea, according to the 2023 Statista Global Consumer Survey.

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