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Much loved tea brand crashes into administration

The tea maker was founded in 1903 (Picture: Getty Images Europe)

Typhoo Tea, a beloved brand that has been a staple of cupboards for decades, has gone into administration.

The century-old company filed a notice yesterday that it had appointed administrators after recording losses of almost £40 million last year.

This is less than two weeks after Typhoo first revealed its intention to appoint administrators.

Tumbling into administration doesn’t mean boxes of Typhoo Tea are vanishing off supermarket shelves today.

An administrator’s job is flogging off parts of the company to repay creditors’ debts. While a rescue package is sought, the company trades as normal.

Advisory firm Kroll has been appointed.

A break-in at a factory last year battered the company’s bottom line (Picture: Getty Images)

Typhoo, known for its iconic ‘you only get an oo with Typhoo’ slogan, was founded in 1903 by Birmingham grocer John Summer.

But in recent years, the tea maker has struggled financially. Between Britons incredibly opting for coffee instead of tea, the coronavirus pandemic and the cost of living crisis, Typhoo reported mounting losses.

Supply chain issues caused by the Russia-Ukraine war haven’t helped either.

Capping off about six years of hardship, Typhoo was dealt yet another low when trespassers occupied and damaged its former factory in Moreton, Merseyside, in August 2023.

Intruders caused ‘extensive damage to its fabric and contents’, made some stock unusable and delayed the planned sale of the factory, Typhoo Tea said.

The company’s losses widened to £38,000,000 from £9,600,000 in the year to the end of September 2023 because of this. Sales, meanwhile, shrank to £25,300,000 from £33,700,000.

Tea consumption has been falling since the mid-1970s as the ‘English Breakfast generation’ made way for flat white-necking youth.

Last year, 63% of people popped the kettle to make coffee compared to 59% doing so for tea, according to the 2023 Statista Global Consumer Survey.

More money-conscious consumers are also reaching out for cheaper supermarket own-brand alternatives.

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