Typhoo Tea turns up the heat on its rivals with ambitious growth plans

Keith Packer, chief executive of Typhoo Tea

TYPHOO Tea is looking for a fresh blend of high-profile marketing activity to boost sales by £10m this year.

The Wirral company said it is already “running way ahead” of its forecasts as it enters its second quarter.

It is embarking on a series of “major initiatives” that it believes will deliver significant growth in the current financial year.

Typhoo launched its two-year sponsorship of Super League club St Helens RLFC and power boat racing championship P1 SuperStock at the Albert Dock in Liverpool yesterday.

While the water was choppy, it has been smooth sailing for Typhoo so far this year, as it outperforms its ambitious plans to grow revenues by 15%.

The tea firm increased sales 5% in the year to March, to £71m, building on 8% growth in 2010.

Typhoo chief executive Keith Packer is targeting turnover of £100m by 2015, which will require compound annual growth of 9% over the next four years.

The Moreton-based manufacturer will be launching a product next month which it expects “will be a step change” for the company and it will return to television screens this autumn with an advertising campaign.

Typhoo is also changing the shade of red it uses in its packaging, returning to its traditional, brighter red rather than the current maroon.

“It’s all part of our overall marketing mix,” said Mr Packer. “Typhoo has ambitious plans for 2011-12 targeting 15% growth this year and the sports sponsorship deals will help us with that. We recognise that we want to get further recognition for Typhoo. That’s why we have gone with both opportunities.

“We have recognised that the opportunity for us in rugby league is with our core market, and a high proportion of women go to watch it. The sport has also got a high coverage in terms of people who watch it on television.”

Exports currently account for 5% of the business, and are also enjoying growth, while Mr Packer was partly attracted to the St Helens sponsorship deal because of its television exposure overseas in countries including Australia and New Zealand.

While the rugby league and powerboating competitions are mainly broadcast on satellite television, Typhoo will be raising its profile on terrestrial television as well with a series of advertisements starting in September or October.

Typhoo, which employs 280 staff, was part of food giant Premier Foods until it was bought by India’s Apeejay Surrendra Group, in 2005.

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