Typhoo Tea has been rescued from administration by Supreme Imports, owner of the 88Vape brand.
The Manchester-based business paid £10m for the beleaguered tea maker in deal which will keep Typhoo “in British hands”.
However, the 120-year-old tea brand has fewer than 30 UK-based staff at the moment, with much of its operations outsourced.
Its tea blending and packing site in Merseyside was closed last year with the loss of up to 90 jobs, due to high costs and low productivity.
According to its latest results, Typhoo’s sales plunged from £33.7m to £25.3m for the year to the end of September 2023, while pre-tax losses soared from £9.6m to £38m across the same period.
The story played out against a background of a shrinking market for tea, with younger consumers in particular turning to other sources like energy drinks for their caffeine hit.
As well as 88Vape, Supreme also makes and distributes the Liberty Flights brand, and produces white label e-liquids for other brands. It also produces health supplements and soft drinks, again under its own brands and for third parties. The business also has interests in household goods like batteries and home lighting.
