[Ammi]

Typhoo is poised to be taken over by a disposable vape company after the tea company collapsed into administration.

Supreme, which sells e-cigarette brands 88Vape and Elfbar in the UK, on Thursday confirmed it was in talks to buy one of Britain’s oldest tea companies.

The announcement came hours after Typhoo filed a notice on Wednesday that it had appointed administrators after two weeks of efforts to find ways to pay back its debts.

The company, which previously ran adverts starring Nigella Lawson and Ben Fogle, filed a notice to appoint administrators earlier this month.

However, having previously lined up administrators from EY, the company decided instead to appoint rival Kroll.

Kroll said Typhoo had “experienced significant cash flow constraints as a result of supply chain disruptions and subsequent service issues”.

A Kroll spokesman said: “The company has been exploring a sale of the business and assets which is in the process of concluding.

“The administration process provides Typhoo Tea with protection, allowing the joint administrators to finalise the sale in order to rescue the business.”

As well as vapes, Supreme sells batteries, supplements and protein powders. The company is eyeing up tea amid a government crackdown on vapes. Looming legislation will stop younger children being able to access cigarettes and vapes. Vape advertising which is likely to be seen by children will be outlawed.

Supreme said discussions were at an advanced stage, but cautioned: “There can be no certainty that the potential acquisition will be completed.”

Typhoo, which was founded in 1903 by Birmingham grocer John Sumner, was once one of the UK’s best-selling tea brands.

However, sales have struggled in recent years as many Britons have switched to coffee, energy drinks and novelty drinks such as bubble tea.

Tea consumption has been in decline for years and is forecast to drop by 8pc between 2023 and 2028, according to research firm Mintel.

Revenues at Typhoo fell from £34m in 2022 to £25m last year, while losses ballooned to £38m from £9.7m a year earlier, according to publicly available accounts.

The steep jump in losses came after the company suffered a break-in at its mothballed factory in Merseyside, which involved “extensive damage” to machinery and tea stock. This delayed the sale of the factory, which was then completed in June 2024.

Typhoo said it was forced to swallow £24m of exceptional costs in the 2023 financial year, with a significant portion of that related to the damage. Typhoo bosses said this had “materially” affected its operations.

In recent years, competition has also been ramping up from a wave of new “wellness” tea brands on the market, while manufacturers have also had to contend with tea paper shortages and a surge in import costs following Brexit.

Typhoo hired Dave McNulty, the former head of Burts Snacks, as its new chief executive last month.

At the time, Typhoo launched an overhaul of its supply chain aimed at stopping sexual violence against women working on tea plantations in Africa.

The change involved going from working with 300 tea plantations in East Africa to just three. The company warned that this could result in higher prices in supermarkets.

Private equity firm Zetland Capital has been the company’s majority shareholder since 2021. Typhoo’s debts stood at £73m at the end of September 2023, compared to £53m a year earlier.

[joeysteele]

Aw this is sad.
Typhoo is one I like.

[arista]

USA based Company

Supreme




[Supreme is an American clothing brand established
in New York City in April 1994.
The company focuses on streetwear,
skateboarding, and hip-hop fashion trends.
Its main products include clothing,
skateboards, and accessories.]



https://en.wikipedia.org/wiki/Supreme_(brand)

[Ammi]

Youtube video

Youtube video

Youtube video

[Ammi]

…and we couldn’t have this festive time of year without a bit of Nigella……

Youtube video

[arista]

It was on the Cards....................

as

[In 2021, Typhoo was acquired by British private-equity firm
Zetland Capital]


https://en.wikipedia.org/wiki/Typhoo

[arista]

Back in 1957
Advertising on a double-decker Bus

[Zizu]

A guy ( police fraud dept ) told us that loads of vape shops ( about 3 on every street nowadays) are fronts for money laundering ..


Not sure exactly how it works though


Sent from my iPhone using Tapatalk Pro

[Crimson Dynamo]

You only get an oo

with Typhoo