Typhoo in hot water: Iconic British tea brand’s 120-year legacy in danger.

Typhoo goes into administration: A 120-year legacy in peril.

It’s a sad day for tea lovers as Typhoo Tea – a brand that’s been filling our mugs for over a century – has officially plunged into administration. Once a staple in every pantry, the Birmingham-born brand is now grappling with plunging sales, mounting debts, and a steaming pile of bad luck.

Advisory firm Kroll has been roped in to rescue the ailing company, tasked with finding a buyer who can stop the iconic tea label from going stone cold. But will this beloved brew find a saviour?

Supreme takeover brewing?

Leading the pack of potential buyers is Supreme, a Manchester-based company better known for flogging vapes, batteries, and gym supplements. While the idea of a vape-and-battery giant branching into tea might raise a few eyebrows, insiders say the deal could diversify Supreme’s portfolio. However, they’ve cautioned that it’s far from a done deal.

According to Supreme, ‘talks are at an advanced stage, but no final terms have been agreed.’

Typhoo has been in trouble for a while.

The tea titan has been struggling for years to turn the business around, but 2023 was the year the lid finally blew off. With pre-tax losses swelling from £9.6m to a staggering £38m, sales tanking to £25.3m from £33.7m, and debts towering above the value of its assets, it’s no surprise that Typhoo’s been left clutching at straws.

The company’s woes deepened last year when organised trespassers caused “extensive” damage at its Moreton factory in Merseyside. The site was rendered “inaccessible” and a large quantity of tea became undrinkable, leaving the brand unable to meet customer orders.

“During August 2023, trespassers occupied the Moreton site for several days,” Typhoo revealed, calling it a devastating blow during an already challenging year.

Fear-Free Tea campaign falls flat

Just two months before the administration bombshell, Typhoo tried to reposition itself with a bold rebrand. Its “Fear-Free Tea” campaign shone a spotlight on violence and abuse within the global tea supply chain. While the message struck a chord, the campaign didn’t translate into the sales boost the company desperately needed.

In a surprising admission, Typhoo confessed that it couldn’t guarantee its own tea was “fear-free,” instead calling for the entire industry to step up its ethical game.

Born in 1903

Typhoo was born in Birmingham in 1903, the brainchild of John Sumner, and has long stood alongside other big-name British brands like PG Tips and Tetley’s. Now majority-owned by private equity firm Zetland Capital, it’s a far cry from its heyday.

With debts piling up, sales drying up, and uncertainty building over a buyout, the future of one of Britain’s most cherished tea brands is dangling by a thread. Will Typhoo find a second wind, or is this the last sip for a brew that once defined the nation?

For now, tea lovers will have to wait and see if their beloved cuppa gets a lifeline – or if it’s the end of the road for this British icon.

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