Typhoo Tea, the struggling UK tea brand backed by Zetland Capital, has entered administration, potentially ending its 120-year history.
London-listed consumer goods company Supreme has confirmed it is in advanced talks with administrator Kroll to buy the business.
Distressed and special situations specialist Zetland Capital bought Typhoo—founded in 1903—from Apeejay Surrendra Group, in 2021. Apeejay Surrendra bought the company from Premier Foods in 2005. The brand has been suffering from declining tea consumption in the UK for several years.
Typhoo raised an additional, undisclosed investment from Zetland in January last year.
For the year ending September 2023, its pre-tax losses widened to £38 million (around $48.3 million), up from £8.5 million the previous year, while revenues fell to £25.3 million from £33.7 million.
Supreme’s potential acquisition represents a diversification strategy for the consumer goods company, which doesn’t have a presence in the tea market. The company’s existing portfolio includes vapes, soft drinks, gym supplements and multivitamins.
Featured image by John Keeble/Getty Images
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