British tea brand Typhoo on the brink of collapse as consumers 'switch to coffee'

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British company Typhoo Tea is on the brink of administration following a sharp decline in sales and soaring losses.

The iconic tea maker, cherished by generations for over 120 years, has filed a court notice to appoint administrators, raising concerns for its workforce of more than 100 employees. Typhoo’s CEO, Dave McNulty, told the BBC that the move provides the company with "breathing space to explore solutions".

The brand’s struggles come amid fierce competition from other tea brands and the growing popularity of coffee. Additionally, rising costs following Russia’s invasion of Ukraine have further strained its finances.

Typhoo’s latest filings revealed that losses surged from £8.4 million to nearly £38 million in the year to September 2023, while sales dropped by 25% to £25.3 million. As of late 2023, the company employed 116 staff.

In August 2022, Typhoo faced another setback when trespassers broke into its former factory in Merseyside, causing “extensive damage” and rendering the site “inaccessible.” Typhoo had been attempting to sell the property, and the incident contributed to £24 million in exceptional costs that year, significantly disrupting operations. The sale was eventually completed in June 2023.

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Founded in 1903, Typhoo is one of Britain’s most beloved tea brands, remembered for its 1980s advertisements featuring Su Pollard of *Hi-de-Hi!* fame and singer Cilla Black, alongside its iconic slogan, “You only get an OO with Typhoo.”

Since 2021, private equity firm Zetland Capital has been Typhoo’s majority shareholder. Under its ownership, the company hired Dave McNulty, formerly of Burts crisps, as CEO in October and began a major supply chain overhaul. This initiative aimed to address issues like sexual violence on tea plantations in East Africa, reducing the number of plantations in its supply chain from 300 to just three.

Typhoo has appointed administrators from EY to navigate its next steps.

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