Vape maker Supreme purchases Typhoo Tea out of administration

Supreme PLC, a leading Manchester-based manufacturer and supplier of fast-moving consumer goods, on Monday said it has purchased Typhoo Tea out of administration for £10.2 million.

Supreme, which makes vape liquids and pods under 88Vape brands and distributes popular disposable vape brands Elfbar and Lost Mary, has last week announced that it was in talks to acquire Typhoo Tea, which has fallen into administration on 27 November.

The acquisition means the iconic Typhoo brand, established in 1903, will continue to be available to consumers in the UK and around the world, while remaining in British hands. The deal also includes the brands QT, Lift, Herbalists, Heath & Heather, London Fruit & Herb Company, Glengettie, Melrose’s, Ridgeways, Red Mountain Coffee and Fresh Brew.

“I grew up with Typhoo. Drinking it and watching the ‘you only get an OO with Typhoo’ ads with Su Pollard from Hi-di-Hi. That was my era. Typhoo is such an iconic brand, and with Supreme’s distribution network and resources, we have the scope to grow and develop it,” Sandy Chadha, Supreme chief executive, said.

The move follows Supreme’s acquisition of Clearly Drinks in June, adding established brands such as Perfectly Clear and Northumbria Spring to its portfolio, to expand its presence to the soft drinks segment.

“The acquisition of Typhoo Tea Ltd 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 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,” Chadha added.

“We are very excited about these latest additions to our portfolio, which mean we can serve our existing customers even better and get acquainted with many new ones.”

Supreme plans to turn Typhoo’s fortunes around by leveraging its efficient supply network to keep products flowing into stores, thereby reducing some of the costs which were dragging Typhoo down, and giving it a new lease of life.

Once among the UK’s best-loved tea brands, Typhoo has struggled in recent years as Britons increasingly shift towards coffee, energy drinks, and novelty beverages like bubble tea.

Typhoo’s revenues fell from £34 million in 2022 to £25 million in 2023, while losses surged from £9.7 million to £38 million in the same period, as per publicly available accounts.

The takeover includes Typhoo Tea’s stock and trade debtors with a book value of £7.5 million and Supreme expects the integration of the business to proceed without disruption to existing operations or customer service levels.

Supreme supplies products across categories including batteries, lighting, vaping, sports nutrition and wellness, and soft drinks.

In addition to distributing brands such as Duracell, Energizer and Panasonic, and supplying lighting products exclusively under the Energizer, Eveready, Black & Decker and JCB licences across 45 countries, Supreme has also developed brands in-house, most notably 88Vape, has a growing footprint in sports nutrition and wellness via its principal brands Sci-MX and Battle Bites.

The company reported strong financial performance for the half-year ended 30 September last week, posting an 8 per cent increase in revenue, and 22 per cent growth in adjusted EBITDA.

The latest acquisition will further accelerate Supreme’s broader diversification strategy, bringing non-vape annualised sales to over £120 million.