Britain's Supreme buys Typhoo Tea out of administration

(Reuters) - Britain's Supreme has bought out loss-making tea brand Typhoo Tea from administration in a 10.2 million pound ($12.94 million) deal, the fast-moving consumer products seller said on Monday.

The 120-year-old tea brand had fallen into administration in November due to declining sales and mounting debt pressures. A break-in at its Merseyside factory in August 2023 exacerbated the company's cost pressures, and the site was subsequently shuttered.

Supreme, which sells Duracell and Energiser batteries along with Elf Bar vapes, expects to boost its non-vape sales with the acquisition, which would take the segment's sales to account for 50% of the company's overall revenue.

Supreme also expects to further its retail footprint with the acquisition, taking advantage of Typhoo Tea's expansive supply relationship with all major UK supermarkets and discounters.

Typhoo Tea, the first pre-packaged tea brand in the UK, made about 20 million pounds in revenue and pre-tax losses of about 4.6 million pounds for the year ended Sept. 30.

($1 = 0.7881 pounds)

(Reporting by Yamini Kalia in Bengaluru; Editing by Janane Venkatraman)