Typhoo Tea, a stalwart of Britain’s tea industry since 1903, has been rescued by Supreme Plc after filing for administration. The iconic brand struggled with declining sales, mounting debts, and operational setbacks, including a costly break-in at its Merseyside factory. Supreme, a London-listed company best known for its vaping products and battery distribution, completed the £10.2m acquisition, which includes £7.5m owed by Typhoo’s corporate customers.

The collapse of Typhoo highlighted changing consumer preferences in the UK. Sales of traditional black tea have plummeted as younger generations gravitate toward coffee, energy drinks, and iced tea. According to research firm Mintel, Britons now consume an average of eight cups of tea per week, down from 23 in 1974, with projections indicating further declines in the coming years. Typhoo’s annual revenues fell from £34m in 2022 to £20m in 2024, alongside a pre-tax loss of £4.6m.

Supreme’s acquisition represents a strategic pivot toward diversification. CEO Sandy Chadha stated that the deal aligns with Supreme’s plan to expand beyond its core vaping business, which still accounts for most of its revenues. The company has also acquired Clearly Drinks, a Sunderland-based flavoured water maker, signaling its intent to tap into growing markets like iced tea. Typhoo’s legacy and market presence make it a valuable addition to Supreme’s portfolio, which aims to leverage its established distribution network and marketing expertise.

Looking ahead, Supreme plans to run Typhoo using a “capital-light, outsourced manufacturing model” to reduce overheads and improve profitability. This streamlined approach, combined with a focus on iced tea production, aims to modernise the brand for a new generation of consumers. Despite its challenges, Typhoo remains a recognizable name in the UK, having featured in campaigns with celebrities like Nigella Lawson and Ben Fogle.

Under Supreme’s ownership, the 121-year-old brand hopes to regain stability and adapt to evolving market trends, preserving its place in Britain’s tea heritage while exploring new growth opportunities.