Typhoo Tea, a 120-year-old British tea brand, has been acquired by Manchester-based vape maker Supreme in a £10 million deal aimed at keeping the iconic brand “in British hands”. The tea company had fallen into administration in November due to declining sales and rising debts.
Supreme, known for producing the e-cigarette brand 88Vape and distributing various products to supermarkets, sees the acquisition as a strategic move to diversify its business portfolio. Currently, Typhoo has fewer than 30 staff members in the UK, primarily in sales and marketing, after years of outsourcing operations both domestically and internationally.
The tea brand has a rich marketing history, featuring prominent TV personalities in the 1980s like Cilla Black and Frankie Howerd. Its memorable advertising slogan, “you only get an ‘oo’ with Typhoo”, and quirky adverts like one featuring Su Pollard drinking tea on a beach with ponies, helped establish its cultural significance. In 2016, celebrity chef Nigella Lawson became the brand ambassador.
Supreme’s CEO Sandy Chadha described the purchase as a combination of “sound business rationale and personal affinity”. The company already distributes to major retailers including Sainsbury’s, Tesco, and Poundland, and sees Typhoo as a valuable addition to its growing product range.
Analyst Susannah Streeter from Hargreaves Lansdown suggests Supreme has acquired a bargain and will likely seek to reduce costs and return the brand to profitability. She also noted the potential to leverage tea’s wellness image alongside Supreme’s existing supplements and multivitamin business.
Typhoo’s financial troubles were significant, with pre-tax losses increasing from £9.6 million to £38 million, and sales dropping from £33.7 million to £25.3 million in the year ending September 2023. Additional challenges included debts exceeding asset values and costs related to a break-in at its Wirral plant.
The tea market has been challenging, with black tea experiencing a broader sales downturn. While tea remains a daily staple for many Britons, competition from coffee, soft drinks, and herbal teas has impacted traditional tea brands. Supermarkets’ own-label brands have further contributed to the decline of established tea manufacturers.
Despite these challenges, Typhoo remains one of the biggest tea brands in the UK, alongside PG Tips, Tetley, and Yorkshire Tea. Supreme remains optimistic about the brand’s future, believing that Typhoo’s strong customer loyalty will help it thrive under new ownership.
The acquisition represents an interesting strategic move by Supreme, demonstrating the company’s ambition to expand beyond its current product lines and preserve a beloved British brand.
