Typhoo Tea bagged by vapes group

The vape and drinks supplier Supreme has bought Typhoo Tea out of administration for £10.2 million.
Typhoo Tea, which was founded more than a century ago, appointed administrators last week after it was unable to find creditors to pay back its debts.
The deal will rescue the business after it struggled with falling tea sales and a break-in at its site on Merseyside last year.
Sandy Chadha, Supreme’s chief executive, said: “The acquisition of Typhoo Tea marks a significant step in our broader diversification strategy and brings one of the most iconic UK consumer brands into the Supreme family.”
He added that the deal would allow Typhoo Tea to benefit from “Supreme’s significant market reach and successful track record in creating brand loyalty”.
The buy-up is part of efforts by Supreme to grow its drinks and nutrition operations, as it reduces its focus on vaping before a government clampdown on disposable vapes due next year.
The Aim-listed company’s acquisition of Typhoo Tea will diversify the business away from vape products and bring non-vape annualised sales to around 50 per cent to the group’s revenue. Supreme established its soft drinks division earlier this year and in June acquired Acorn Topco, parent company of Clearly Drinks, for £15 million.
Typhoo was launched in 1903 by John Sumner Jr, a Birmingham grocer. The business is controlled by Zetland Capital, a private equity firm, which took a majority shareholding in Typhoo from Apeejay Surrendra Group, one of the largest tea producers in India. Typhoo has struggled with sales in recent years as Britain’s tea consumption declines.
The loss-making tea company had been attempting a turnaround that included staff reductions and an overhaul of its supply chain. However, it suffered a setback last year after a group of trespassers caused significant disruption to the business by breaking into its site in Moreton, Wirral.
Typhoo has not been in the black since it reported a pre-tax profit of £220,000 for the financial year 2017. Since then the business has reported combined pre-tax losses of more than £100 million. The company reported revenues of £25.3 million for the year to September 30, 2023, down from £33.7 million during the same period a year earlier, according to the most recent accounts.
Typhoo’s pre-tax losses widened to £38 million in the 12-month period from £8.5 million the previous year. The business also reported exceptional costs of £24.1 million in the 2023 financial year, a large portion of which was due to damage from the site break-in.
Supreme said it expects Typhoo Tea will integrate into the group without disruption to existing operations or customer service levels.
Supreme was founded in 1975 by GS Chadha. Since then, the Manchester-based business has grown to become a supplier of products ranging from Elf Bar vapes to Duracell batteries. Sandy Chadha bought the business from his father in 2003 and the company floated on Aim, London’s junior market, three years ago.