Success Brews For New Tea Company
June 2006
A new tea manufacturing company has set up on Merseyside with over a £1/4m cash injection including £100k from Merseyside Special Investment Fund (MSIF).
The total funding package includes finance from Nat West, Lombard and Directors’ own investment.
Managing Director, Paul Needham was formerly Operations Director at Knowsley-based tea manufacturers Gold Crown Foods before the entire factory was destroyed in a devastating fire last year.
After the blaze the company ceased trading and Paul Needham, alongside the former Financial Controller at Gold Crown Lynn Hitchen decided to pool their expertise and launch Lancashire Tea.
From premises in Newton Le Willows the tea is blended packaged and distributed. The production facilities mean the company has the capacity to produce over 2000 tea bags per minute - over 2m cups of tea a day. Management make no secret of the fact that it is competing head on with Yorkshire Tea and other leading brands but say they are confident the taste and texture of Lancashire Tea will win over customers throughout the UK.
All eight staff are former Gold Crown employees and it is expected that the workforce will treble over the next three years.
Managing Director Paul Needham said: "The MSIF backing was crucial – without it we would not have been able to get started. We are delighted that we have been able to take on staff that would otherwise have lost their jobs and have been astounded by the huge amount of interest there is already in Lancashire Tea."
Company Secretary Lynn Hitchen said: "The product is made from a fine blend of tea sourced from Kenya, Sumatra, Malawi and Rwanda .We’ve done extensive market research and we know people love the taste."
Already the company has signed deals with retailers, ASDA and Booths and management are in talks with a number of other big names including Tesco, Morrisons Londis, Nisa and Spar.
Paul Humphray, MSIF Investment Manager said: "We are pleased to be supporting the team at Lancashire Tea. They have achieved a huge amount already and the company deserves to be a great success."
Turnover is expected to hit £3m over the next three years. Currently eight staff are employed and this is expected to treble over the next two years.
Ends
For further information contact Angela White at Merseyside Special Investment Fund on 0151 236 4040
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