Typhoo tea to be sold

The move comes as Premier Foods intends to raise cash to buy typically English brands. Premier Foods has put up Typhoo tea for sale for a price of up to £100m (€150m). The company, whose other brands include Ambrosia Custard and Branston Pickle, wants to raise cash to buy typically English brands.

Typhoo tea, owned by Premier Foods has been put up for sale. The owner of Branston Pickle, Gale's honey, Angel Delight pudding, Waistline salad dressings and soups and Hartley's jam expects to make £100m from the deal.

The proposition is heard to have attracted many bidders, as it is the third-biggest company in the highly competitive tea market with PG Tips by Unilever and Tetley by Tata group as the main rivals. A refreshing cup of Typhoo is drunk every 90 seconds... that's 2.9 million cups of Typhoo made each year in the UK... or 23 million packets sold annually.

Premier initiated the move as it wishes to focus on market leading brands in its portfolio, which includes English classics such as Ambrosia Creamed Rice as well as Bird's eye Custard and Sun-Pat peanut butter.

The recent trading pattern of the company clearly justifies its stand, as it bought the maker of meat alternative Quorn for £172m. It was one of the front-runners for HP, Lea & Perrins and Amoy sauces and seems interested in buying Marmite from Unilever, although it is not clear if the yeast extract is for sale.

The company, which floated on the stock market last July with a value of £527m, has also recently acquired Bird's eye Custard and Angel Delight from US firm Kraft Foods.

Despite the bad luck that hit Premier with Britain's largest food recall following the discovery of the Sudan 1 illegal dye in its Cross & Blackwell Worcester Sauce; it won an award for best investor relations and a new issue at IR magazine's annual awards this month.

The drinks division of the firm made £32m in earnings before interest, tax, depreciation and amortisation last year, with Typhoo contributing about half of those earnings. It was also the favourite topic of discussion, with the punch line 'Typhoo put the T in Britain'.

The history

The brand was launched in 1903 by John Sumner, a Birmingham grocer, after his sister declared tea cured her indigestion. Her enthusiasm encouraged her brother to develop his own blend. 

It was the first tea to be sold prepackaged and was sold in chemist's as well as grocer's shops, because of its perceived healthy qualities. Its first label read: "Typhoo, the tea the doctors recommend".

During the first world war, Typhoo was exempted from tea rationing after doctors and consumers overwhelmed the government with complaints.

Typhoo merged with Schweppes in 1968 and in 1969 became part of Cadbury Schweppes. In 1986 Typhoo was sold in a management buyout which formed Premier Brands, becoming Premier Foods, its present owner.  (mes)

Source :

www.foodingredientsfirst.com  

www.jdpglobal.com