Typhoo Tea to shut down Moreton blending and packing site

UK – As a result of ongoing business restricting, Typhoo Tea has revealed plans to close its “aging” blending and packing site in Moreton, UK, in June.

In July 2021, Typhoo Tea Limited was acquired by British private equity firm Zetland Capital from the Apeejay Surrendra Group of India. Apeejay Typhoo Tea is the Indian arm of Typhoo, manufacturing and selling products in India.

Up to 90 jobs are set to be lost at Typhoo Tea, however, the company said it is “actively exploring” options for a new site and re-employment. It added that it will be at least one year before a suitable location is ready.

It is regrettable but necessary, according to Executive chairman Mike Brehme, that the changes should be undertaken to allow Typhoo to realign its ambitions and refocus on the customer whilst ensuring the same high level of service and great quality tea you expect from one of the UK’s oldest and most recognized brands.

He explained: “2023 marks the milestone of 120 years of Typhoo Tea. These changes allow us to set the business up for the next generation of discerning tea drinkers. Unfortunately, the spiraling cost of energy and materials, alongside low levels of productivity achievable at the Moreton factory, makes it necessary to close the loss-making site. We are actively exploring options for a new site, but it will be some time before a suitable location is identified, fitted out, and ready.”

“Sadly, we anticipate this, resulting in approximately 90 job losses at Moreton. I would like to thank all colleagues who have contributed so much in recent, challenging times, and we will do all that we can to assist everyone affected by this announcement.”

Brehme noted that with the support of third-party packers, the company has a robust plan in place to meet the demand for Typhoo products, ensuring supplies for customers continue uninterrupted.

The people who remain in the business will relocate to a hub to oversee the day-to-day management of the restructured organization.

The company, during the management of the Indian company Apeejay Surrendra Group, undertook a restructuring, which was subject to the outcome of a consultation, that saw 55 full-time and 21 temporary jobs closed at the firm’s factory in Moreton.

A spokesman of the tea processor at that time highlighted that the plan came against “the backdrop of an increasingly challenging trading environment.”

In 2020, Typhoo Tea reported mounting losses in a “watershed” year for the business, raising doubts about the brand’s ability to continue trading.

The accounts warned that an inability to refinance or extend its financing agreements “represents a material uncertainty which may cast significant doubt over the company’s ability to continue as a going concern”.

Typhoo blamed its poor performance on the decision to continue to pursue an “aggressive” sales growth strategy focused on boosting its own-label business.

In July 2022, BusinessLive reported that the company said being taken over by a private equity firm will help it focus on its recovery with “new vigor” following an “extremely challenging” 18-month period.

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