Breaking News: Supreme Finally Acquires Typhoo Tea

Typhoo Tea, one of Britain’s oldest tea brands, has been bought out of administration by Supreme, a distributor of consumer goods, for £10.2 million.

The acquisition comes less than a week after administrators from Kroll were appointed to manage the 121-year-old company.

The historic brand has struggled in recent years, facing declining sales, supply chain challenges, and increasing debt.

A break-in at its former Merseyside factory in 2023 caused significant damage, exacerbating financial pressures. Changing consumer preferences, with younger generations opting for coffee and soft drinks over black tea, have also contributed to the decline.

Despite these challenges, Typhoo generated revenue of over £20 million in the year ending September, though it reported a pre-tax loss of approximately £4.6 million.

Supreme, known for distributing products like batteries, lighting, vaping items, and beverages, plans to streamline Typhoo’s operations by outsourcing manufacturing and reducing overhead costs. The company expects this strategy to improve profit margins to around 30%.

Supreme's CEO, Sandy Chadha, expressed optimism about the acquisition, saying, "I believe Typhoo Tea will thrive under our ownership." The company has assured customers that there will be no supply disruptions during the transition.
Source: Sky news
Edited by Evans Momodu