Supreme has announced the acquisition of the trade and selected assets of Typhoo Tea Limited for £10.2 million, marking a significant step in its diversification strategy and growth in the drinks and nutrition sector. The deal is expected to be completed soon without causing business disruption.
Supreme has said that rescue talks are at “an advanced stage”, but it is not certain an acquisition deal will be completed. In a statement issued today, the manufacturer said: " Supreme is pleased to announce the acquisition of the trade and selected assets of Typhoo Tea Limited for a total cash consideration of £10.
2 million out of administration.It added that it doesn't expect there to be any business disruption while the deal goes through. This means that you're unlikely to see Typhoo disappear from supermarket shelves and that it will still be available as usual. The move is part Supreme's efforts to grow its drinks and nutrition operations as it reduces its focus on vaping ahead of a government clampdown on disposable vapes due next year. Sandy Chadha, chief executive officer of Supreme, 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.The Range issues urgent recall of energy-saving gadget due to fire risk "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." Typhoo, which is one of Britain's oldest tea companies, warned earlier this month it was heading towards collapse as it raced to find a buyer and pay off mounting debts. The administrator has to leverage the company's assets and business to repay creditors any outstanding debts.Supreme specialises in fast-moving consumer goods is a potential buyer. It supplies products to shops such as B&M, Home Bargains and Poundland, as well as major supermarkets. Dave McNulty, chief executive of Typhoo, previously told The Telegraph he was hoping the process would result in a buyer being found. But recently, it has been hit by a perfect storm of problems, including declining sales, mounting debts and even a break-in at its Wirral factory last year. In August 2023, trespassers broke into the company’s former factory in Merseyside and occupied the site for several days.The company had been trying to sell the factory, in a deal which eventually went through in June 2024. But Typhoo said the incident made up the bulk of £24 million of exceptional costs that year, and that it had “materially” affected its day-to-day running. Founded in 1903, Typhoo has long been one of Britain’s best-known tea brands, but the decline in recent years has pushed it to the brink of going out ofIt hired the former head of Burts crisps, Dave McNulty, as its new chief executive in October, while also launching a shake-up of its supply chain.and resulted in reducing the number of plantations in its supply chain in the region from 300 to just three.The volume sales of ordinary tea were 53.7 million kilograms in 2021 and decreased to 51.0 million kilograms in 2022, according to Mintel. It forecasts that the UK tea market will see a slight increase in value sales by 1.1% to £884 million over 2023-2028, despite a forecasted decline in volume sales.In March 2023, it was revealed that the firm was to shut down its site in Moreton in June of that year with the loss of up to 90bought in a rescue deal by rival Tapi but shut the vast majority of stores and cut more than 1,000 jobs. More than 1,000 staff lost their jobs at TGI Fridays after a deal to save the well-known brand failed to include all 86 locations.In Good Company, the business that owns Fourpure and another craft beer brand called Magic Rock said the move will "protect the brand from future liability, and tough commercial realities in the drinks and hospitality industries".SAFETY ALERT
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