- UK boss of Typhoo Tea says cost of imports has gone up and blames Brexit
- Mr Somnath Saha warns company ‘is suffering’ and ‘it is not sustainable’
- The firm employs 300 and produces 125million tea bags a week in Wigan
The cost of a cuppa is set to rise as a result of the ‘disastrous’ consequences of Brexit, the UK boss of Typhoo Tea has warned.
The announcement by the company’s chief executive, Somnath Saha, follows other price hikes introduced by firms such as Apple and Marmite in the wake of the Brexit vote.
Mr Saha said the cost of importing an 80 kilo bag of tea had soared by 50 per cent – from £100 up to £150 since the beginning of the year – with much of the increase being blamed on the recent fall in the value of sterling.
The cost of Typhoo Tea, of which Nigella Lawson (pictured) is an ambassador, is set to rise and UK boss is blaming Brexit
It was ‘an absolute disaster’ for the company, costing it £250,000 a month, said Mr Saha, whose firm employs 300 people in the UK and produces 125 million tea bags a week at its factory in Wigan.
He said: ‘We are really suffering. It’s come to a point where it’s not sustainable. We cannot accept this loss any more.’
Mr Saha denied ‘posturing’ to get a better deal for Typhoo from supermarkets, adding: ‘This is a really serious situation for us. Nobody wants to do this, but ultimately some of the costs will go to the shoppers.
‘There is no other option. It’s one of the favourite drinks of this country. It’s very unfortunate. It’s nobody’s fault – it’s due to economic conditions.’
Company’s chief executive Somnath Saha (pictured) said the company is ‘really suffering’
If the decline in the value of the pound continued at the pace seen since the day of the referendum, his business would lose virtually all its £3 million profit for the year, he said.
‘It’s been so difficult after June. We can’t plan anything. Every day, you don’t know what is going to happen. There is so much volatility.’
Earlier this year, TV chef Nigella Lawson became a Typhoo ‘ambassador,’ appearing in an advert which showed her on a sofa with a cuppa and a slice of chocolate cake.
Typhoo’s warning of an impending price rise came as pressure grew on Theresa May to reveal details of any secret assurances given to Japanese car giant Nissan to stop them pulling out of the UK.
Labour MP Chuka Umunna wrote to the Prime Minister yesterday demanding to know if she had promised to pay the manufacturer to go ahead with plans to expand production at its factory in Sunderland – and whether similar offers had been made to other foreign investors.
Typhoo’s warning of an impending price rise came as pressure grew on Theresa May to reveal details of any secret assurances given to Japanese car giant Nissan to stop them pulling out of the UK
Mr Umunna, a member of the anti-Brexit Open Britain group, asked for ‘details of commitments, written or otherwise, given by Downing Street and the rest of the Government to Nissan’. He wanted to know if the Government’s ‘assurance and understanding’ to the company that Britain remained a safe country in which to invest included using ‘public money to compensate Nissan’ – or a secret pledge that the UK would stay in the single market.
The PM must disclose ‘what (if any) financial support was offered; whether any limit was placed on it; and whether the same assurances would be extended to other car makers and other sectors,’ he argued.
THE CREEPING COST OF LEAVING THE EU
The slump in the value of the pound – it is down about 18 per cent since the Brexit vote – is pushing up prices for shoppers. Foreign goods are becoming more expensive, but international companies are also raising prices on British-made goods to protect the value of their profits.
Last week Apple put up the prices of its computers, and supermarket chain Morrisons added 29p to a jar of Marmite. Car firm Vauxhall has announced it is increasing prices by 2.5 per cent, while fashion chain Next says it expects its prices to rise on average by about 5 per cent next year.
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UK boss of Typhoo Tea warns of the ‘disastrous’ impact of Leave vote – Daily Mail