In a move which sees two leading organic independent speciality tea brands join forces, English Tea Shop has acquired Joe’s Tea Company.
The companies believe the partnership will offer both parties strong competitive advantage and opportunities for long-term growth.
Joe Kinch will remain at the helm of Joe’s Tea Company, which will now be able to take its range to a wider pool of stockists and consumers, while increasing stock inventory. New blends and accessories will be launched in the near future with further new product development planned for 2018. With English Tea Shop as a major shareholder, Joe’s Tea Company will also be able to build stronger direct relationships with tea farmers, thereby gaining exclusive access to new blends, say the companies.
In addition, the acquisition allows English Tea Shop, and its parent company Amazon Trading Ltd, to grow its audience among a new segment of the organic market.
The move has been hailed by the brands as a “match made in heaven” – both companies being committed to ethical sourcing and high quality organic teas, and the founders having had a close working and personal relationship for eight years.
Commenting on the buyout, Kinch says: “We’ve always enjoyed a fantastic relationship with English Tea Shop and in our view, there’s no better business to work with. The new arrangement will allow us to consolidate our core business, but also to look at new options for sustainable growth. Joe’s Tea Company will continue to operate on its own terms, and offer the same – if not better – amazing quality taste and experience.”
“We’re delighted to have further strengthened our relationship with Joe and his brilliant company,” adds Suranga Herath, CEO of English Tea Shop. “The organic speciality tea market is getting a lot of attention at the moment – and rightly so – and we, alongside Joe, are excited about what the future holds.”
The combined revenue of the tea companies for 2017/18 is expected to be £11 million. English Tea Shop saw growth of 41.6% in 2016/17 and is expecting a further 25% growth in 2017/18; and Joe’s Tea Company saw growth of 26.5% in 2016 and is expecting a 25% growth for 2017.
Earlier this year, English Tea Shop announced that its entire range of 500 teas and tisanes are now 100% organic.