Typhoo Tea, one of the UK’s most iconic tea brands, has officially entered administration after experiencing mounting financial struggles. The century-old company, known for its memorable slogan “You only get an oo with Typhoo,” filed for administration following a £40 million loss last year. The move comes less than two weeks after Typhoo’s initial announcement that it would seek administrative intervention to address its financial woes.
While Typhoo has entered administration, this does not mean that its products will disappear from supermarket shelves. Administrators have been appointed, and the company continues to trade as normal while they look for ways to restructure and sell off parts of the business to satisfy creditors. Advisory firm Kroll has been appointed to oversee the process.
Founded in 1903 by Birmingham grocer John Summer, Typhoo Tea has been a staple in British households for over a century. However, in recent years, the company has faced significant challenges, including a steep decline in tea consumption. A shift in consumer preferences, including the rise in coffee culture, coupled with economic pressures like the coronavirus pandemic and the ongoing cost-of-living crisis, has left Typhoo grappling to maintain profitability.
The company also faced additional hardships last year, including a break-in at its factory in Moreton, Merseyside. Intruders caused extensive damage, destroyed stock, and delayed the sale of the factory, contributing further to the company’s financial losses. For the year ending September 2023, Typhoo reported a sharp increase in losses—£38 million, up from £9.6 million the previous year—with sales shrinking by 25%.
Typhoo’s struggles reflect broader trends in the UK tea market. As more Britons opt for coffee over traditional tea, particularly among younger generations, tea consumption has steadily declined since the mid-1970s. A 2023 Statista survey revealed that 63% of people in the UK now brew coffee compared to just 59% who still make tea. Tea’s decline has been further exacerbated by rising consumer interest in alternatives such as bubble tea, herbal infusions, and energy drinks.
A report by research firm Mintel forecasts an 8% drop in tea consumption in the UK between 2023 and 2028, as consumers shift towards more trendy and often cheaper alternatives. Additionally, more cost-conscious shoppers are turning to supermarket own-brand teas as a more affordable option, further affecting established brands like Typhoo.
Despite these challenges, Typhoo’s legacy and strong brand recognition remain. The company’s products continue to be available on supermarket shelves as the search for a potential rescue plan continues. Administrators will explore options to restructure the business, including the sale of assets or finding a buyer for parts of the company.
As Typhoo seeks a way to navigate its financial troubles, the tea industry will be watching closely to see if this storied brand can adapt to changing market conditions or if it will be f
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