Harlow, Essex, UK, Old man sitting on the garden terrace in the morning with a cup of tea.
Gary Yeowell | Digital Vision | Getty Images
British fast-moving consumer goods seller Supreme said on Monday it has acquired loss-making tea brand Typhoo Tea from the government for 10.2 million pounds ($12.94 million).
The 120-year-old tea brand fell into administration in November amid falling sales and mounting debt pressure. Cost pressures were exacerbated by a break-in at its Merseyside factory in August 2023, which was subsequently closed.
Supreme, which sells Duracell and Energiser batteries as well as Elf Bar e-cigarettes, expects to boost its non-e-cigarette sales through the acquisition, which will make the unit’s sales account for 50% of the company’s total revenue.
Supreme also hopes to use this acquisition to further expand its retail business by leveraging Typhoo Tea’s extensive supply relationships with all major supermarkets and discount stores in the UK.
Typhoo Tea is the UK’s first pre-packaged tea brand, with revenue of about 20 million pounds in the financial year ended September 30 and a pre-tax loss of about 4.6 million pounds.
