Typhoo Tea, a beloved brand that has been on UK shelves for 120 years, is facing the possibility of discontinuation. The company has been struggling with declining sales, increasing debts, and growing losses, prompting them to apply to appoint administrators. Typhoo’s chief executive, Dave McNulty, revealed to the BBC that the company has filed a notice in court to begin the process of appointing administrators.
The challenges for Typhoo escalated when their factory in Moreton, Merseyside, was broken into and ransacked by trespassers last year. This incident resulted in extensive damage to the site, rendering a significant amount of tea unusable and causing the company to be unable to fulfill some customer orders. The losses for Typhoo widened to £38 million last year as sales dropped to £25.3 million from £33.7 million. Additional exceptional costs of £24.1 million were incurred, including those related to the break-in at the Moreton plant.
Despite the difficulties faced by Typhoo, the company has not entered administration yet. They have appointed EY to handle the administration process, but Mr. McNulty clarified that this move does not signify that they are currently in administration. Typhoo, known for its black tea used in classic English blends, has expanded its product offerings over the years to include decaffeinated tea, green tea, and specialty teas.
Founded by Birmingham grocer John Summer, Typhoo Tea was one of the first British brands to sell pre-packaged tea, a novel concept at the time. The brand’s name is derived from the Chinese word for “doctor,” reflecting its original focus on health and wellness. Summer’s creation of Typhoo Tea was inspired by his sister’s struggle with indigestion, and the tea was intended to help alleviate her symptoms. This health-oriented approach contributed to the brand’s early success and reputation.
Typhoo Tea gained widespread recognition through innovative marketing strategies, such as offering free collectible gifts in tea packages. The brand’s red packaging has become iconic and is synonymous with British tea culture. Despite the current challenges facing Typhoo, the brand’s rich history and cultural significance have solidified its place in the hearts of tea lovers both in the UK and abroad. As Typhoo navigates these difficult times, loyal customers and fans of the brand will be eagerly awaiting news of its future.
