Iconic Tea Brand Typhoo Rescued by Vape Maker Supreme
Typhoo Tea, the beloved 121-year-old British tea brand, has been saved from administration by Manchester-based consumer goods company Supreme in a £10 million deal. Supreme, best known for its e-cigarette brand 88Vape, stepped in less than a week after Typhoo filed for administration, bringing hope for a revival of the struggling brand.
In its heyday, Typhoo was renowned for its memorable advertising campaigns, including the famous slogan, “You only get an ‘oo’ with Typhoo,” and celebrity endorsements from stars like Cilla Black and Nigella Lawson. However, the brand’s prominence has waned over the years, even as it remained one of Britain’s largest tea names alongside PG Tips, Tetley, and Yorkshire Tea.
However, Typhoo has been battling financial troubles caused by falling sales, mounting debts, and a break-in at its Wirral factory in 2023, which rendered the site unusable. The decline in black tea consumption, particularly among younger generations, coupled with competition from coffee, herbal teas, and supermarket own-label brands, further strained the company’s finances.
Despite the challenges, Typhoo still generated around £20 million in revenue in the year to September 2023. However, its pre-tax losses had risen to £4.6 million. Supreme saw the brand’s legacy and loyal customer base as key strengths, with CEO Sandy Chadha calling the acquisition “a significant step” in the company’s diversification strategy.
Chadha expressed optimism about Typhoo’s future under Supreme’s ownership, saying, “I believe Typhoo Tea will thrive under our ownership.” Supreme plans to focus on a “capital-light, outsourced manufacturing model” to reduce costs and improve profitability. This approach aligns with Supreme’s expertise in cost-efficient production and distribution, which has worked well for its other product categories, including batteries, soft drinks, and supplements.
Industry analysts believe the acquisition could be a smart move. Susannah Streeter of Hargreaves Lansdown noted that Supreme’s wide market reach and experience in creating brand loyalty might help Typhoo regain its footing. She also highlighted tea’s growing association with wellness, suggesting potential synergies with Supreme’s supplements and multivitamins business.
Supreme’s acquisition comes at a time when the company is diversifying beyond vaping, anticipating potential government crackdowns on disposable e-cigarettes. The tea maker’s new owner is confident it can leverage its efficient supply chain and retail partnerships, which include major stores like Tesco, Poundland, and B&M, to reinvigorate Typhoo’s presence in the market.
For now, the deal ensures there will be no disruption to Typhoo’s supply, and the brand remains “in British hands.” While challenges lie ahead, the combination of Typhoo’s legacy and Supreme’s operational expertise offers a fresh chance for the iconic tea brand to steep itself back into the hearts—and cups—of British consumers.
