Supreme, a distributor of consumer goods, has purchased Typhoo Tea for £10.2 million, signaling a significant shift in its business strategy.
- The acquisition includes Typhoo Tea’s stock and trade debtors valued at £7.5 million, aiming to integrate seamlessly without affecting current operations.
- Typhoo Tea, known for being the first pre-packaged tea brand in the UK, offers a diverse range of products from traditional teas to coffee and herbal infusions.
- With this acquisition, Supreme’s non-vape sales are projected to exceed £120 million, accounting for 50% of its total revenue.
- Supreme views this acquisition as a strategic opportunity to enhance its market reach and product innovation capabilities.
Supreme, a prominent consumer goods distributor based in Stretford, has expanded its portfolio by acquiring the Typhoo Tea brand for a sum of £10.2 million. Originally known as a vaping supplier, Supreme has been diversifying its business interests to include white label soft drinks, lighting, batteries, and sports nutrition. The recent acquisition of Typhoo Tea marks a continuation of this strategic diversification.
The acquisition deal includes Typhoo Tea’s stock and trade assets, which have a book value of approximately £7.5 million. Supreme is committed to integrating Typhoo’s operations without causing any disruptions to existing services or customer relations, aligning with its efficient business model.
Typhoo Tea, established in 1903, holds the distinction of being the first brand to offer pre-packaged tea in the UK. Over the years, the brand has grown to include a variety of teas such as white, lemon, herbal, and fruit infusions, as well as different brands of coffee. Its products have been a staple in major UK supermarkets and are distributed to organizations like the Ministry of Defence and NHS, as well as international markets in North America, Europe, the Middle East, and Southeast Asia.
For the fiscal year ending September 2024, Typhoo Tea reported unaudited revenue figures of around £20 million but suffered a loss before tax amounting to £4.6 million. Recognizing the potential for growth and renewed profitability under its management, Supreme has integrated Typhoo as part of its broader strategy to enhance its non-vape product lines, which are now projected to surpass £120 million in annual sales, making up half of Supreme’s total revenue.
The chief executive of Supreme, Sandy Chadha, expressed optimism about the acquisition, noting that Typhoo’s inclusion complements Supreme’s existing product lines. This integration is expected to offer new avenues for sales and marketing, alongside innovation in product offerings. Chadha remarked, “The acquisition of Typhoo Tea is a significant step in our overall diversification strategy and brings an iconic British brand into the Supreme family.”
Typhoo has experienced its share of challenges, notably its 2023 relocation from Moreton, Wirral, to a new headquarters in Bristol, following extensive damage to its factory. This move was accompanied by substantial job losses. However, with the acquisition, there is hope for revitalizing the brand and expanding its market presence through Supreme’s established distribution networks.
The acquisition of Typhoo Tea by Supreme represents a strategic extension of its business, poised to leverage new market opportunities and product developments.
