Typhoo CEO Somnath Saha
As winter weather tightens its icy grip on Britain, the British National Health Service is recommending that people drink more hot tea and coffee to keep warm this winter, reports the Evening Standard. But with the falling pound due to Britain’s recent vote to exit the European Union, the cost of tea is rising to record levels and Brits are having to come to terms with the fact that their beloved beverage may become more of a luxury than a staple.
Last week, Typhoo, one of Britain’s top 10 tea brands, announced a 50 percent price hike due to Brexit. “We are really suffering. It’s come to a point where it’s not sustainable. We cannot accept this loss anymore,” said CEO Somnath Saha, as reported in The Sun. Saha claimed that the cost of importing an 80 kg bag of tea has risen from £100 to £150 since the start of the year.
“There is no other option,” he said. “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.”
Typhoo’s price hike comes in the wake of similar increases by firms such as Apple and Marmite in the wake of the Brexit vote. According to the Daily Mail, the value of the pound is down about 18 percent since the June Brexit vote.
Typhoo, one of Britain’s top 10 tea brands, is feeling the pinch from the recent dramatic fall in the value of the pound.
Typhoo’s Saha maintains that if the pound continues to decline at the rate it has done since the referendum, his company would lose all of its profit. “It has 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,” he said.
But many are calling Typhoo’s announcement a storm in a teacup. Conservative MP for Wellingborough Peter Bone accused Typhoo of manufacturing an “excuse to make more money.”
Sources: Evening Standard, The Sun, Daily Mail, Independent