Manchester-based vape manufacturer Supreme expects the purchase to provide cross selling opportunities for its new soft beverages segment and access to a wider range of UK retailers
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Typhoo Tea entered administration in November 2024 amid falling sales and spiralling debts | Photo credit: Supreme
Typhoo Tea has been acquired out of administration by Manchester-based vape manufacturer Supreme for £10.2m ($12.9m).
Founded in 1903 as the first pre-packaged tea brand in the UK, Typhoo Tea entered administration in November 2024 amid falling sales and spiralling debts.
The company reported full-year revenues of £20m ($25.3m) for the 12 months ended 30 September 2024, down from £25.3m ($32m) in 2023 and £33.7m ($42.7) in 2022. Typhoo Tea also posted a loss before tax of £4.6m ($5.8m) this year following a £38m ($48m) loss in 2023.
In a press release, Supreme said it will operate a ‘capital light, outsourced manufacturing model’ for Typhoo Tea with a significantly reduced overhead base. Supreme forecasts Typhoo Tea could generate a gross profit margin of approximately 30%.
“The acquisition of Typhoo Tea marks a significant step in our broader diversification strategy and brings one of the most iconic UK consumer brands into the Supreme family. I believe Typhoo Tea will thrive under our ownership, further benefitting from Supreme’s significant market reach and successful track record in creating brand loyalty, making us an ideal fit for this business,” said Sandy Chadha, CEO, Supreme.
Supreme manufactures vape brand 88Vape and distributes nicotine and household products to UK supermarkets. In a bid to diversify ahead of a planned disposable vape ban in the UK in 2025, the company established a soft drinks division in June 2024 after acquiring Clearly Drinks Limited parent company Acorn Topco Limited. It now sees the opportunity to develop ‘tangible cross sell and product innovation opportunities’ for soft drinks with the addition of Typhoo Tea to its portfolio.
Additionally, the acquisition will provide Supreme with access to new UK-based supermarkets and high street retailers – including health focused Holland & Barrett.
Listed on the London Stock Exchange since February 2021, Supreme expects to generate £240m ($303.6m) in revenue and £40m ($50.6m) EBITDA for the 12 months ending 31 March 2025.