Typhoo to close factory with loss of up to 90 jobs
The company called the packing site “ageing” and highlighted spiralling costs alongside low levels of productivity for the closure.
It also said the move was part of its plans to restructure the business in a move designed to “protect the future of one of Britain's oldest brands.”
Typhoo Tea said it is actively exploring options for a new site and re-employment, but it would be at least one year before a suitable location is ready.
Spiralling costs
“Unfortunately the spiralling cost of energy and materials, alongside low levels of productivity achievable at Moreton, make 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,” said Typhoo Tea executive chairman Mike Brehme.
“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 revealed that the company was using third-party packers and said there was “a robust plan” in place to meet the demand for Typhoo products, ensuring supplies to customers continue uninterrupted.
Next generation
“The regrettable but necessary changes 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 recognised brands,” he added.
“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.”
Typhoo is also major packer of private-label tea which it said it operates “on extremely tight profit margins.”
Those people who remain in the business will relocate to a hub to oversee the day-to-day management of the restructured organisation, the company said.
