Typhoo Tea announced the appointment of administrators after facing mounting losses in recent years. Following this, Supreme swiftly moved to secure a potential acquisition deal.
In the fiscal year ending September 2024, Typhoo generated revenues of approximately £20 million, accompanied by a pre-tax loss of about £4.6 million. This comes on the heels of a significant £38 million loss reported the prior year.
Supreme, known for supplying products like Duracell batteries and Elf Bar vape, confirmed last week that it was in discussions with advisory firm Kroll regarding a possible acquisition. An agreement was officially reached on 2 December.
Valued at £10.2 million, the deal encompasses Typhoo’s stock and trade debtors, which are estimated at £7.5 million.
Previously, Typhoo was owned by Zetland Capital, a London-based private equity firm that acquired the tea producer from the Apeejay Surrendra Group in 2021.
A Historic Brand
Founded in 1903, Typhoo was the UK’s first pre-packaged tea brand and has diversified its product line to offer a wide array of teas and coffees.
The brand services all major UK supermarkets and discounters, as well as international clients across North America and Asia, including the Ministry of Defence and the NHS.
Under Supreme’s ownership, Typhoo plans to adopt a capital-light, outsourced manufacturing model. This strategic shift aims to achieve a gross profit margin of approximately 30%.
Supreme CEO Sandy Chadha commented on the acquisition, stating that the Typhoo brand will seamlessly integrate into the firm’s newly established soft drinks division.
We believe the addition of Typhoo Tea and its highly complementary blend of great value and premium tea brands creates tangible cross-sell and product innovation opportunities in the near term, alongside avenues into credible UK retailers that Supreme has been looking to partner with,” added Chadha.
“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.”
