Britain's Supreme buys Typhoo Tea out of administration
02/12/2024 08:21
Dec 2 (Reuters) - Britain's Supreme SUP.L has bought
out loss-making tea brand Typhoo Tea from administration in a
10.2 million pound ($12.94 million) deal, the fast-moving
consumer products seller said on Monday.
The 120-year-old tea brand had fallen into administration in
November due to declining sales and mounting debt pressures. A
break-in at its Merseyside factory in August 2023 exacerbated
the company's cost pressures, and the site was subsequently
shuttered.
Supreme, which sells Duracell and Energiser batteries along
with Elf Bar vapes, expects to boost its non-vape sales with the
acquisition, which would take the segment's sales to account for
50% of the company's overall revenue.
Supreme also expects to further its retail footprint
with the acquisition, taking advantage of Typhoo Tea's expansive
supply relationship with all major UK supermarkets and
discounters.
Typhoo Tea, the first pre-packaged tea brand in the UK, made
about 20 million pounds in revenue and pre-tax losses of about
4.6 million pounds for the year ended Sept. 30.
($1 = 0.7881 pounds)
(Reporting by Yamini Kalia in Bengaluru; Editing by Janane
Venkatraman)
((Yamini.Kalia@thomsonreuters.com;))