The highly competitive nature of the British tea industry has seen a number of different market leaders emerge at different points in time.
Horniman & Co was the first company in the world to package tea (as opposed to loose-leaf sales by grocers). By 1867 they claimed to have the largest stock of tea in Britain in their warehouses. By 1880 they sold over 5 million packets a year. By 1890 they had export sales of 500,000 lbs a week.
By 1892 Horniman had been overtaken by Mazawattee, who sold over 14 million packets of tea each year. Mazawattee had introduced a brand that was blended entirely from fashionable Ceylon tea leaves. They also advertised more heavily than Horniman.
By 1897 Lipton & Co claimed the largest sales of tea in the world, with one million packets sold each week. Lipton had acquired their own tea plantations in Ceylon, and by cutting out the middleman, were able to offer lower prices to the consumer.
In 1903 John Sumner began to package a new blend which used only the tips of the tea leaf. With the distinctive name of Typhoo, it had lower tannin levels and a higher caffeine content, Sumner claimed digestive properties for his product.
By 1915 J Lyons & Co sold 5 million packets of tea each week, and were far and away the market leader in Britain, stocked in 160,000 outlets. In 1922 they claimed that 7 million people drank their tea every week.
In 1923 the Co-operative Wholesale Society (CWS) claimed that it was the largest tea business in the world, with a sale of over 60 million lbs of tea every year. By 1932 this figure had increased to 100 million lbs a year.
In 1939 the CWS was the largest tea blender and distributor in the United Kingdom, controlling around 25 percent of the supply. It was followed by Lyons, Brooke Bond and Allied Suppliers (who controlled Lipton).
CWS tea sales declined with the rise of the supermarket chains: the new chains saw CWS, who operated their own grocery stores, as a rival, and refused to stock their tea.
By 1957 Brooke Bond was probably the largest tea company in the world, with around one third of the British and Indian tea markets.
In the 1960s, Tetley grew from a minor player to a major force in tea after it pioneered the use of the tea bag in Britain.
Brooke Bond was still the largest tea company in the world when it was acquired by Unilever in 1984. Unilever had acquired Lipton in 1971.
Today Lipton is the largest tea brand in the world, with most production centered on a single site in Dubai.
Twinings is the leading premium tea brand in the world, and the highest-selling tea brand in Britain.
The first two hundred years
The Twining family originated from Gloucestershire, where they frequently found employment in the weaving industry. Recession in the trade led Daniel Twining to migrate to London with his family in 1684. His son, Thomas Twining (1675 – 1741), acquired Tom’s Coffee House on Deveraux Court, at the back of 216 Strand, in 1706. The shop was well-sited to serve the aristocracy.
As well as coffee, Twining began to sell the rare but fashionable tea. Twining was supplying tea by royal appointment to Queen Anne by 1711. Twining acquired the Golden Lyon at 216 Strand in 1717: the company still trades from the same premises today.
The Twining tea shop on the Strand, central London.
Coffee had been phased out in order to focus on tea by 1734.
Thomas’s son, Daniel Twining, took over the business, and by 1749 was exporting tea to America. The business was run by Daniel’s widow, Mary Twining, between 1762 and 1782.
Richard Twining (1749 – 1824) took over management of the business from 1782. He advised the Prime Minister, William Pitt the Younger, to dramatically reduce the tax on tea in order to reduce smuggling in 1784. Tea sales subsequently quadrupled.
Twinings introduced its current logo, reputedly the oldest commercial logo to be in continuous use since its inception, from 1787.
Jane Austen revealed herself to be a Twinings tea customer in an 1814 letter.
Twinings also developed a substantial banking subsidiary. It was spun-off as an independent business from 1824.
Twinings received a Royal Warrant from Queen Victoria in 1838. It has held a Royal Warrant from each successive British monarch ever since.
Twinings sourced their tea from China. Tea from India and Assam began to be used from 1839. Ceylon tea began to be used from 1879.
From the eighteenth century until the late nineteenth century, staff in the shop wore swallow tail coats and white ties.
The Twinings bank struggled to compete as rivals grew larger, and it was acquired by Lloyds Bank in 1892.
Twinings in the twentieth century
Twining & Co survived by keeping up with modern developments. Also, Twinings was fortunate in that all of the family members who had had controlled the business had been competent managers. Also, unlike many other tea companies, Twinings never owned tea plantations, which meant that it wasn’t tied to its own producers, and was free to select the best tea crops each year.
Twinings was registered as a limited liability company with a capital of £100,000 in 1904.
The tea interests of Harrisons Crosfield of Bankside were acquired in 1916. The merged business was registered as a private company called Twining Crosfield, with a share capital of £50,000. It was likely the second largest tea blending concern after Brooke Bond.
Part of the Twinings shop and the entire back premises were destroyed during the Blitz in 1941. Business continued throughout the war, although the damage necessitated that administration was relocated to Vincent Square in Westminster, followed by the Minories in the City of London, until the premises were rebuilt in 1953.
Twinings became a public company with a share capital of £400,000 in 1952. The company employed a staff of 450, and had net assets of almost £525,000. Manufacturing premises were at Wellclose Square, with floorspace of over 42,000 sq ft. There were also smaller factories at Belfast and Staffordshire. As well as the Strand location, the company operated shops at Wigmore Street and William Street, Knightsbridge.
Twinings undertook advertising for the first time in 1956. This move was prompted by the rise in sales of branded teas such as PG Tips.
Twinings is acquired by Associated British Foods
Twinings was acquired by Associated British Foods for £2 million in 1964. The friendly takeover by ABF, controlled by W G Weston (1898 – 1978), beat a hostile bid from Beech-Nut Life Savers of New York. Beech-Nut had planned to merge Twinings with its own Tetley Tea operation. ABF vowed to allow Twinings to continue to operate independently.
The main factory in southeast London was struggling to cope with demand. Production was relocated to a new £3 million plant in Andover, Hampshire from 1966. Andover was chosen as it was halfway between London and Avonmouth, where the tea docked, and close to Southampton, from where it was exported. Eighty families were relocated to the new factory. The seven acre site contained one of the most modern automated factories in the world, and employed 700 workers.
An additional factory was opened at North Shields in the North East of England from 1970.
A dedicated marketing manager, Brynley Evans (born 1940), was brought in from the Rank Organisation. Evans was appointed as managing director from 1973.
Twinings tea had strong sales overseas by the 1970s. Japan and France were the leading export markets, whilst American sales continued to grow strongly, with a 55 percent rise between January and October 1971. Meanwhile the company gained distribution in British supermarkets with its speciality teas such as Earl Grey.
Twinings was the second largest supplier of black tea in Japan by 1974, with 32 percent of the market.
Company turnover was over £18 million in 1976. Export sales more than quadrupled to £8 million between 1969 and 1976, and Twinings tea was exported to over 80 countries. The company blended and packed 23 different types of tea. Twinings was the biggest British buyer of tea from China. Twinings supplied 26 percent of all the tea consumed in France.
Twinings opened a $6 million tea manufacturing facility at Greensboro, North Carolina from 1980.
Annual export sales had reached £17 million by 1983. Twinings was a brand leader in Japan by this time.
Twinings was the largest British exporter of tea to America by 1984. Earl Grey was the company’s bestseller worldwide.
The Greensboro plant was closed with the loss of 90 jobs in 2005.
Twinings closed the North Shields factory in 2011 and halved the workforce at the Andover plant. All export production was relocated to Swarzedz in Poland, with the loss of nearly 400 jobs in Britain. Twinings also applied to the European Union for €12 million in investment grants to assist with the relocation, but this was denied.
Twinings overtook PG Tips to become the highest-selling tea in the UK in 2019.
Twinings is sold in 115 countries across the world as of 2020.
Lipton is the highest-selling tea in the world, with distribution in 110 countries.
Thomas Lipton introduces a new packaged tea blend
Thomas Lipton (1846 – 1931) was born in Glasgow to a working class family. He established a chain of grocery stores.
Lipton believed that if he could lower the price of tea he could increase sales among the working classes. He acquired thousands of acres of cut-price tea plantations in the south of Ceylon (now Sri Lanka) in 1890. By sourcing his own tea Lipton was able to cut out the middleman, and pass on the savings to the customer.
Thomas Lipton (1848 – 1931) in 1909
Lipton claimed to have the largest sale of any tea in the world “beyond doubt” by 1897, and millions of people drank his tea every day. Over one million packets of Lipton tea were sold in Britain every week.
Thomas Lipton paid a record-breaking £35,000 duty on a week’s purchase of tea in 1897. This was over half the average for the total weekly tea market, which Lipton now claimed to dominate. By this time his tea enjoyed a Royal Warrant from Queen Victoria (1819 – 1901). Several thousand workers were employed on his Ceylon plantations.
Lipton tea was blended differently for various regions of Britain in order to best suit the local water.
Lipton tea received Royal Warrants from Edward VII (1841 – 1910) and George V (1865 – 1936).
Lipton claimed to be the largest tea distributors, manufacturers and retailers of food products in the world by 1924.
The company had entered into difficulty by 1926. The business had outgrown the overworked Thomas Lipton, but he refused to take advice from his board of directors. He was forced to resign from the company he had built in 1927, and his stake was acquired for £60,000.
Thomas Lipton died in 1931. He left a British estate valued at over £1.4 million, and an American estate valued at £757,000.
Lipton is acquired by Home & Colonial
Lipton was acquired by Home & Colonial, a large grocery chain, in 1931.
Lipton divested some of its plantations in Ceylon in 1944, but retained 3,400 acres of high quality tea estates.
The large supermarket chains grew in influence from the 1950s, and they were reluctant to stock tea from a rival grocery business. Lipton tea sales in Britain declined and never recovered, and the company instead concentrated on the overseas tea market.
Lipton had total coverage of the Indian market by 1968. The company built a new fully-automated factory of over 175,000 sq ft. It was one of the largest tea packing and blending factories in the world.
Lipton tea was sold in 156 countries by 1969, and packed in 29 factories. Lipton was the second largest tea business in the world.
Unilever acquires Lipton
The Lipton tea interests were acquired by Unilever, the Anglo-Dutch consumer goods giant, for £18.5 million in 1972. By this time Lipton was a relatively small player in the British tea market, and was outsold by two Brooke Bond brands (PG Tips and Dividend), as well as Tetley, J Lyons, Typhoo and the Co-operative Wholesale Society.
Boxes of Lipton tea (2015)
Lipton enjoyed great success in the United States, with 50 percent of the market by 1975.
All Lipton tea was packed and blended at a factory in Leighton Buzzard, Bedfordshire, by 1979. It was the largest tagged tea bag factory in Europe. Lipton was awarded the Queen’s Award For Export that year.
Lipton Yellow Label was the highest selling tea in the world, a blend of Ceylon, India and other tea leaves. Lipton exported more tea to more countries (over 120) than any other company by 1980.
The Leighton Buzzard factory was closed in 1999, and production was relocated to a site in Dubai. The Dubai site is now the largest tea factory in the world.
Unilever sold its tea interests, excluding its businesses in India, Nepal and Indonesia, and the ready to drink Lipton business, to CVC Capital for £3.8 billion in 2021.
Mazawattee was the highest selling brand of tea in the world.
John Densham & Sons introduce Mazawattee Tea
John Boon Densham (1815 – 1886) was a Plymouth chemist. He relocated to Croydon in the 1860s. With a Mr C Lees he entered the wholesale tea business to form Lees & Densham. The business was based at Philpott Lane, where the bulk of Britain’s tea auctions took place.
Lees divested his stake in 1870. Densham’s three sons entered the business, and the firm began trading as John Densham & Sons. With premises at Eastcheap in London, the firm grew to become a sizeable concern. By the 1880s they had also established a warehouse in Manchester.
Edward Densham (1842 – 1912), the eldest son of the founder, became the head of the business. He was a kindly and popular man.
John Densham & Sons introduced the Mazawattee Tea blend in 1886. It was made entirely from Ceylon leaves, which were marketed as superior to the standard Chinese leaves. The trademark was registered the following year.
Packaged tea had been introduced by John Horniman in the 1840s, but most tea at this time was still sold loose from grocers’ shops. Packaged tea promised a consistent product, and was a vouch for purity from contamination.
Mazawattee Tea becomes a market leader
Over 14 million packets of Mazawattee tea were sold every year through 5,000 outlets by 1892. By this time sales had overtaken those of Horniman, who had led the market since at least the 1860s.
A distinctive promotional campaign saw a Mazawattee Tea cart drawn through London by zebras
Edward Densham retired as head of the business in 1892. His two brothers, John Lane Densham (1853 – 1918) and Benjamin Densham (1847 – 1929), were appointed as joint managing directors.
A seven storey factory had been erected at Tower Hill, London by 1894.
The Mazawattee Tea Company was formed with a valuation of £550,000 (about £66 million in 2015) in 1896. Mazawattee tea was the largest tea brand in the world.
Mazawattee was the largest wholesale tea business in the world by 1898. In one single auction the company had to pay the largest ever tea duty, £63,147, after it acquired 1,687 tons of tea.
In 1900 Mazawattee again broke the record for the highest duty paid on tea (£85,862 in 1900), when they acquired over 5 million lbs of the good in a single transaction.
Benjamin Densham retired in 1901.
A new £400,000 factory was established at New Cross in 1901. It was the largest and best equipped tea processing plant in the world. The new site also allowed the company to move into the manufacture of cocoa and chocolate confectionery. Over 1,000 workers were employed across a four acre site.
In 1901 the company had a share capital of £800,000 (around £88 million in 2015). By 1902 this had risen to £1 million, with assets excluding goodwill valued at over £650,000.
By 1905 millions of people drank Mazawattee tea every day, and the company had over 15,000 outlets in the United Kingdom.
Financial struggles and demise of the brand
By 1900 the J Lyons tea shop chain had expanded to over 50 outlets. In 1904 the Mazawattee board decided to open 500 small shops at a cost of £200 each. Two board members, R A McQuitty and J H McLean, were placed in charge of executing the operation. They acquired only 164 teashops, but at an average cost of £500 to £2,000. Some cost as much as £4,500 and £10,000. Some annual rents were over £1,000 a year. Furthermore, the shops made serious profit losses from the start. An extraordinary meeting was called in 1905. McQuitty and McLean were immediately sacked and all the shops were quickly divested, but by then total losses amounted to nearly £300,000. Mazawattee came very close to collapse, and in attempt to save money it had to severely reduce its advertising expenditure.
The chocolate and cocoa business showed its first profit in 1907.
Unlike Lipton, Mazawattee never owned any tea plantations. They argued that this left them free to choose the best tea at auction, but it also left them vulnerable to fluctuations in commodity prices.
By 1913 much of Ceylon’s agricultural land had given way to the far more profitable rubber plantations. As the output of Ceylon tea was reduced, Mazawattee was forced to make up the difference with tea from India and Java. The only other option would have been to increase wholesale prices to untenable levels.
John Lane Densham retired as managing director and chairman in 1916, and Alexander Jackson (1857 – 1936) took over his roles.
In 1917 Mazawattee was likely the third largest manufacturer of packet tea, after J Lyons and Horniman & Co.
Joseph Densham (1883 – 1961) took over as chairman from 1936. That year the decision was taken to abandon the confectionery business.
Both the company factories were destroyed by air raids during World War II. The offices were transferred to 52 -54 Leadenhall Street. As late as 1948, the company was denied licence by the government to rebuild its factories. As such, Mazawattee was produced by Brooke Bond until 1952.
Joseph Densham retired as chairman in 1952.
Mazawattee was sold to Burton, Son & Sanders, confectioners of Ipswich, in 1953. The freehold factory at New Cross was sold to Johnson & Phillips, electrical engineers, for £190,000, and production was moved to premises at Thomas Street, Limehouse. From this juncture Mazawattee was sold as an economy brand.
The product ceased to be sold in 1965 and Densham & Sons was liquidated in 1967. Mazawattee tea survived in South Africa until at least the mid-1980s as a catering brand for mine workers.
Horniman & Co was likely the largest tea firm in the world throughout much of the latter half of the nineteenth century. It was the first tea producer to package the product individually, at a time when tea was bought loose from a grocer.
John Horniman introduces packaged tea
John Horniman (1804 – 1893) was a Quaker from Reading, England. The Horniman family had emigrated from Germany to Devon in the 15th century. Quakers often promoted products such as tea and confectionery as an alternative to alcohol and tobacco.
Horniman had established himself as a tea dealer in Northampton by 1825. At this time, tea was a luxury good, mainly consumed by the rich.
During this period tea was sold loose by grocers. As such, it was frequently subject to adulteration by unscrupulous vendors. Horniman was the first to package his tea in individual packets from 1826. He branded it as Horniman’s Pure Tea.
Tea consumption in England rose rapidly from the 1840s onwards. The business was based on the Isle of Wight by 1846.
To cope with increasing demand, Horniman invented a crude tea- packing machine.
Horniman & Co was relocated to Philpot Lane in London in the late 1840s. The site was chosen due to its proximity to Mincing Lane, where tea auctions were held. The business had moved to Dalston Place by 1851. A warehouse was opened at Wormwood Street, nearby to Mincing Lane, in 1854.
The influential Dr Arthur Hill Hassall (1817 – 1894) of The Lancet vouched for the purity of Horniman’s product in 1859. Theirs was the only Chinese green tea examined by The Lancet that was found to be free of added colouring, which was commonly used to disguise poor quality.
The British government reduced the duty on tea in 1864. Horniman’s passed on the savings to the customer by lowering the price of their product. There were 2,280 outlets for their product by 1864.
The Horniman & Co warehouse contained the largest stock of duty-paid tea in London in 1867. Over 12,000 sq ft of warehouse floorspace was constantly in use.
Horniman & Co grows to become the largest tea business in the world
John Horniman retired in 1869. His son, Frederick John Horniman (1835 – 1906), took over management of the firm. A dynamic man, Frederick was intelligent and likeable.
Horniman’s Pure Tea had a strong export market by 1876, with high sales in Europe. The success of the firm was built on a dedication to quality, keen prices and strong marketing.
The tea warehouse on Wormwood Street burned down in 1879. The tea, on which duty had already been paid, was completely destroyed. The fire caused between £100,000 and £150,000 worth of damage (between around £11 million and £17 million in 2015 prices). Temporary premises were quickly arranged, and the firm was able to draw upon its tea reserves, so that only a few days of production were lost.
A new six-storey warehouse was built on the same site in 1880. By this time the firm had an annual sale of over five million packets of tea, and 4,000 outlets.
Previously the sole proprietor, Frederick Horniman took on his son, Emslie Horniman, as well as S R Brewerton and others as partners in 1889.
Horniman & Co was the largest tea firm in the world by 1890. Tea packet labels were printed in nine different languages. Over 5,000 chests of tea, weighing 100lbs each, were exported each week.
The founder, John Horniman, died in 1893. He had given generously to charitable causes throughout his life, but still left a personal estate of £320,000 (£37 million in 2015). His will donated much of his wealth to good causes.
Rival manufacturer of packaged tea, Mazawattee, had decisively overtaken Horniman in sales by 1892.
Horniman & Co sold ten million packets of tea annually by 1893. Tea was sourced from India, China and Ceylon, and only the young spring growths were used.
To house the artefacts he had amassed during his travels around the world, Frederick Horniman opened the Horniman Museum in Forest Hill, London, in 1890. He donated the museum to the public in 1901, and it remains a leading London attraction.
Horniman tea was sold through over 10,000 outlets by 1903.
Frederick Horniman died in 1906 with an estate valued at £421,628.
The business was taken over by his son, Emslie John Horniman (1863 – 1932).
Acquisition by J Lyons
Horniman & Co was acquired by J Lyons & Co, the leader in the packet tea market, in 1918 . Lyons wished to build their tea sales in the North of England, where Horniman was strong. Lyons opened the largest tea packing factory in the world at Greenford on the outskirts of London in 1920.
Emslie John Horniman died in 1932 with an estate valued at £317,605.
Horniman was marketed as the Lyons premium tea brand by the 1970s. It was their highest seller in South Wales. However the brand was eventually withdrawn from sale in Britain.
The brand is now owned worldwide by Douwe Egberts. In Spain, Hornimans leads the hot tea market with a 25 percent share. It is also available in Spanish-speaking South American markets. In Italy, Royal Tea traces its origins to Horniman & Co.
Part I, about the early history of J Lyons, can be foundhere.
During the post-war period, J Lyons developed the first business computer in the world. It introduced household-name brands such as Ready Brek, Maryland Cookies and Wimpy Hamburger.
Growth and continued success of J Lyons
J Lyons was the largest catering company in the world, with a capital of £10 million and exports to fifty countries. There were 33,000 employees and 230 tea shops in 1954.
The Corner House restaurants and hotels alone employed over 4,000 workers in 1951. On normal Bank Holidays the Corner Houses could expect to serve 250,000 meals.
Lyons was a global leader in sales of packaged tea. Lyons had a weekly production of seven million buns, 1.25 million lbs of bread and 12.5 million pieces of confectionery.
Clerical work became so extensive that J Lyons determined to build the first business computer in the world. Based on a computer at Harvard University, Lyons engineers introduced LEO (Lyons Electronic Office), after six years of development in 1954. Large computers had previously only been used for military or scientific purposes. The 5,000 sq ft computer could perform the work of 300 clerks working at top speed, with fewer mistakes.
Lyons introduced the American-style hamburger chain to Britain when it opened a Wimpy franchise in the basement of a Lyons tea shop on 277 Oxford Street in May 1954. There were 1,100 Wimpy outlets in 34 countries by 1973.
Lyons Pure Ground Coffee was the highest selling coffee in Britain in 1953. Lyons launched its standard market teabag brand, Quick Brew, in 1955.
A “Big Four” held 70 percent of the British tea market by 1956. Lyons held second place behind Brooke Bond.
Maryland Cookies were introduced from 1956. The company launched Ready Brek instant porridge in 1957, to outstanding success.
J Lyons was the third-largest soft drink producer in Britain by 1960. Rose Kia-Ora, a joint venture with Schweppes, held nearly half of the squash market.
Lyons sold its confectionery subsidiary to Callard & Bowser in 1961. With the growth of television advertising, middle-size sweet manufacturers were forced to consolidate in order to reach a scale capable of launching their own campaigns.
Lyons retired most of its tea distribution vans from 1962. The vans had delivered to independent grocers throughout the country. The company had reasoned that business was transferring towards the supermarkets. The decision was premature however, and allowed rival Brooke Bond to increase its market share at the expense of Lyons.
Lyons acquired Eldorado of Liverpool, the fourth largest ice cream manufacturer in Britain, in 1963, and rebranded its ice cream business as Lyons Maid. The takeover took its share of the ice cream market to 34 percent, and Lyons was the second largest ice cream manufacturer in Britain (after Wall’s) throughout much of the twentieth century. The Zoom rocket shaped lolly was introduced in 1963. The FAB ice lolly was introduced in 1967. The Greenford ice cream factory was the second largest in the world by 1973.
The computer division required extensive capitalisation, so it was sold to English Electric in 1964.
Lyons had become the biggest supplier of pre-packaged cakes in Britain by 1966, and was the clear market leader with a 28 percent market share.
Lyons held more than two thirds of the packaged ground coffee market in 1966.
Throughout the 1960s J Lyons was joint third in the British tea market alongside Typhoo, with around 15 percent market share, behind Brooke Bond and the Co-operative Wholesale Society.
Lyons was probably the largest business in catering sales and supplies in Britain by 1969.
Lyons enters into decline
Lyons had seen its market share in tea decline to 13 percent by 1970, and it was far from the brand leader it once was. Quick Brew had an eight percent share of the popular tea market. It was strongest in the South of England, especially London, where it held 17 percent of the market. By this time Horniman and Black & Green had been positioned as the company’s premium tea brands. Horniman was the company’s biggest tea seller in South Wales, and Black & Green was strong in Manchester and the North West.
Lyons hotels held over 6,000 beds in 1970.
It was argued in The Spectator in 1968 that “You can grade the Lyons properties into four classes — redundant, non-profitable, underdeveloped — and Cadby Hall [the production centre].” The number of tea rooms had declined to 120 by 1969, and many were loss-making. The Coventry Street Corner House was closed in 1970. Between 1970 and 1972 the remaining tea rooms were converted into Jolyon Restaurants.
Cadby Hall was closed in 1972, with production relocated to Yorkshire and Northamptonshire. Nearly 3,000 staff were affected.
Lyons acquired Tetley Tea for £23 million in 1972. This gave Lyons the second highest market share for tea in both the British and American markets. In Britain Lyons now had 17 percent of the tea market, behind Brooke Bond on 40 percent.
A 25 percent stake in Fox’s Biscuits of Batley was acquired in 1972.
Baskin Robbins, the ice cream manufacturer with 1,600 stores in America, was acquired for £16 million in 1973.
Lyons encountered financial difficulties following the global oil crisis of 1973. They had borrowed £250 million to finance acquisitions in the early 1970s, mostly from non-British sources. Foreign loan repayments became expensive as the value of sterling fell. As a result, the company began to rapidly divest its core assets just to meet its liabilities.
J Lyons dropped from the top 100 companies in Britain by market capitalization in 1974. The company had a capitalization of £39.5 million and a turnover of £249 million in 1975.
The tearooms and corner houses fell prey to the more trendy coffee bars of Charles Forte, as well as the increasing appeal of fast food and ethnic cuisine. The last tea shop closed in 1976.
The 35 British hotels (with the exception of Tower Hotel) were sold to Forte’s Trust House Forte for £27.6 million, or just £4,000 per room, in 1976. Forte was transformed from the largest hotel operator in Britain, to probably the largest in the world. Forte promptly recouped £11 million in a year by cutting costs. The Economist described the deal as “phenomenally successful” for Forte, who acquired the hotels at a “knock-down price”.
Wimpy, with 676 UK outlets, was sold off to United Biscuits for £7 million in 1976.
The Salmon and Gluckstein families were forced to relinquish voting control over Lyons in 1976. By allowing ordinary shareholders to have votes, they hoped to acquire more capital, which was desperately needed. Previously the families had held six to seven percent of company equity but 61 percent of voting shares. By this time Lyons had a market capitalization of over £40 million and sales of £650 million.
Lyons is acquired by Allied Breweries, and the businesses are divested
Lyons was subject to a friendly takeover by Allied Breweries which valued the company at £64 million in 1978. The merged entity was known as Allied Lyons. The Cadby Hall sites were demolished in 1983.
The remnant Lyons food businesses were sold off throughout the early to mid 1990s.
Ready Brek was sold to Weetabix in 1990.
Lyons Maid had been loss-making for several years, mainly due to increased competition following the entrance of Mars into the ice cream market. It was sold to Clarke Foods for £12 million in 1991. There were 800 employees in Greenford, Middlesex and Liverpool. Clarke Foods was acquired by Nestle in 1992.
In 1994 the Lyons coffee businesses were divested: ground coffee to Paulig of Finland and instant coffee to Philip Morris.
After acquiring Pedro Domecq in 1994, Allied Lyons renamed itself to Allied Domecq.
Lyons biscuits of Blackpool, with a staff of 780, was sold to Hillsdown Holdings in 1994.
Lyons Cakes was sold to Tomkins of America for £35 million in 1995. The business employed 1,700 people in Britain and Ireland. Meanwhile, the Tetley Tea business was subject to a management buyout, valued at £190 million.
Lyons Quick Brew and Red Label teas were still available in Britain until relatively recently. Lyons remains the highest-selling tea brand in Ireland, with over a third of the market. Lyons Maid ice cream has been rebranded as Nestle. Lyons brand cakes, biscuits and freshly ground coffee are still sold, although without the presence they once had.
Lyons’ major weakness was nepotism. As late as the 1950s, the board was populated exclusively by family members. The Financial Times ran a headline, “Too much Salmon is bad for Lyons”. A non-family member chairman was not elected until 1977. Although a public company, the majority of voting shares were controlled by the founding families until 1976. But by then, it was too late to save the company extant.
Watney’s Red Barrel had become the highest-selling keg bitter in the world by the mid-1960s. The beer’s relaunch as Watney’s Red in 1971 represented one of the most notorious failures in brand management in recent British history. What went wrong?
The birth of Watney’s Red Barrel
Watney, Combe & Reid was formed by the amalgamation of three London breweries in 1898. Production was concentrated at the Watney brewery at Mortlake, and the Reid and Combe sites were closed. Watney, Combe & Reid was the third largest brewer in the British Isles, behind only Guinness and Bass.
Watney, Combe & Reid was the second most highly valued public company in Britain in 1905, and members of the founding families grew hugely wealthy. Charles Combe (1837 – 1920) died with a net estate valued at £956,139, or over £374 million in 2023 prices. Claude Watney (1867 – 1920) left a net estate valued at £498,461 (approx. £195 million in 2023).
Watney, Combe & Reid introduced the Red Barrel as their in-house trademark from 1930.
A Watney’s Red Barrel beer font. Image used with permission.
Watney, Combe & Reid was the first British brewer to successfully introduce a draught “container beer” in 1931. Unlike cask conditioned beer would only remain fresh for days, container beer was filtered, pasteurised and stored under pressure with carbon dioxide, which allowed it to retain its condition for months. The beer could withstand tropical heat and a lengthy shipping period, which rendered it ideal for export. The product was soon available in outlets where cask beer could not be sold, such as Royal Navy ships, Cunard liners and Middle Eastern oil fields.
Watney’s Container Bitter was introduced to the domestic market from 1935. It was initially sold at the East Sheen Lawn Tennis Club, where its improved shelf life was to prove ideal for the intermittent trade of a sports club. Sales were expanded to other clubs and hotels.
Watney’s Red Barrel is rolled out
Simon Harvey Combe (1903 – 1965) was appointed chairman of Watney, Combe & Reid in 1950. He was a forceful figure who had shot his way out of German captivity during the Second World War and been awarded with the Military Cross.
Following the war a large proportion of the managers of free houses had neither the time nor the experience to correctly handle cask beer, and quality had suffered. Customers increasingly turned to bottled beer, which, although more expensive, offered more consistent quality, and accounted for one third of beer sales by 1953. Catering to this trend, Watney’s Red Barrel was introduced as a bottled pale ale from 1950.
Meanwhile Watney, Combe & Reid began to expand outside of its London heartland. Tamplin & Sons of Brighton, with 400 public houses in Sussex, was acquired in 1953. Henty & Constable of Chichester, with 253 licensed premises in Sussex and Hampshire, was acquired in 1954.
Flowers Breweries of Luton and Stratford upon Avon launched Flowers Keg in May 1955. It was the first container beer to be introduced to the mass market, and popularised “keg” as a generic term. Flowers initially distributed the beer to free trade outlets across London and the South East of England with insufficient sales to stock cask beer, such as golf clubs and private parties, or public houses with insufficient cellar space. Demand for Flowers Keg was to prove surprisingly high, and the product was soon distributed across the brewery’s tied estate and sold to rival brewers.
The success of Flowers Keg convinced Watney, Combe & Reid to introduce the keg version of Red Barrel to British public houses from 1956. It was brewed with Norfolk malt and Goldings hops, and was naturally matured for several weeks. Sales initially targeted free trade outlets, and cask beer continued to dominate the tied estate.
Watney, Combe & Reid acquired Mann, Crossman & Paulin of Whitechapel to form Watney Mann in 1958. The merger allowed the group to reclaim its position as one of the largest brewers in Britain, and strengthened Watney’s position in hitherto underrepresented markets such as Essex, Luton and Coventry. Production was concentrated at the Mortlake and Whitechapel breweries, which were modernised.
Watney’s Red Barrel was the most widely-distributed keg beer by the late 1950s, aided by the brewery’s large tied estate of 3,670 public houses and extensive free trade accounts.
Watney Mann fights the takeover threat
Charles Clore (1904 – 1979) had become a pioneer of the hostile takeover in Britain in the early 1950s. He acquired companies with undervalued property assets which he then sold and leased back or redeveloped. Clore commented, “in some businesses the profits earned show that existing assets are not being employed in the fullest capacity… [no] business can afford to have its resources remaining stagnant.”
Clore’s attempt to acquire Watney Mann for £27 million in 1959 represented the largest takeover bid in British history. Clore planned to modernise the “smoky, smelly, barnlike premises” of Watney Mann by introducing comfortable seating, removing the distinction between saloon and public bars, and improving the food offering. Pubs in areas with high footfall, such as city centres, would be sold off and converted into shops.
The directors of Watney Mann, descendants of the founding families, were horrified. According to TIME magazine, Clore was “the first outsider ever to challenge the clubby, clannish old families who dominate British brewing through a tangle of interlocking directorates”. The Evening Standard commented on the threat, “it threw the whole brewery world into confusion. Here was an outsider trying to storm his way in. It must not be allowed to happen”. Simon Combe was convinced that Clore would “redevelop all the properties and close the breweries”, and that his workforce would lose their jobs. He derided the bid as, “preposterous … deplorable for the brewing industry and a disaster for Watney’s”.
The takeover attempt was to ultimately prove unsuccessful, but it became apparent that Watney Mann was not immune to the threat of market forces. The management team were galvanised. The company property portfolio was reassessed for the first time since 1929 and valued at £34 million. The Stag brewery site at Pimlico was sold off for £6 million. Watney sped up plans to modernise its tied estate of public houses, and Milner Gray (1899 – 1997) was hired to design a new corporate identity.
Watney’s Red Barrel grows and cask ale is phased out
Watney Mann continued to expand by acquisition in order to meet demand for additional brewing capacity, and to secure more outlets for Watney’s Red Barrel. 1960 saw the acquisition of Phipps, with 1,171 licensed premises within a 60-mile radius of Northampton, for £11 million, Ushers of Trowbridge with 900 licensed premises for £4 million and Wilson & Walker of Manchester, with around 1,124 public houses, for nearly £11.5 million. Watney Mann ended the year as the largest brewing group in Britain, with around 6,600 licensed premises.
Keg beer sales grew, initially at the expense of bottled beers. Customers, particularly the young, appreciated the consistent taste, and it commanded a premium price and superior profit margins. Watney’s Red Barrel was heavily advertised, and was the highest-selling keg bitter in Britain by 1961, with estimated annual sales of around 150,000 barrels, mostly concentrated in the South of England and London.
Watney’s Red Barrel became the first nationally-distributed draught beer in Britain. The success of keg saw the introduction of rival beers from the national brewers, including Whitbread Tankard, Worthington E, Younger’s Tartan Special, Double Diamond and Courage Tavern. Keg accounted for six percent of the total beer market by 1964.
Watney Mann held 34,000 free trade accounts by 1963. Cask beer had been phased out from the 2,000 tied houses in London and the South of England by the end of 1963, and the Manchester and West Country houses were earmarked to follow.
Watney’s Red Barrel was successfully introduced overseas. A higher strength version with an ABV of 5.2 percent was exported to northern France and Belgium from 1962. Nearly 5,000 barrels of Red Barrel were exported to Northern Europe in 1965. A modified version of Watney’s Red Barrel, reformulated to suit the American palate, was introduced in the United States from 1963 and was sold in 100 outlets by 1967. Licensed production of Red Barrel commenced at the Murphy’s brewery in Cork, Ireland, from 1966.
It was claimed that Watney’s Red Barrel was the highest-selling keg beer in the world by 1966. Peter Crossman (1908 – 1989), who had succeeded Simon Combe as chairman of Watney Mann, predicted that cask beer would be extinct by 1978. This view was echoed by A G Manners, the chairman of Bass, who commented, “people today want a beer which they know is standard and always in proper condition- which they cannot always get today in cask beer”.
Watney Mann continued to expand by acquisitions throughout the 1960s, in an effort to build a business which had truly national scope. The takeover targets included the Morgan Brewery of Norwich (1961); Bullard & Sons and Steward & Patteson of Norwich (1963), with 1,800 public houses for £16.5 million; and Drybrough of Edinburgh (1965), with 140 tied houses, for £2 million.
Peter Crossman became convinced that the British beer market was saturated, and decided to expand into continental Europe. The Delbruyers brewery of Chatelet was acquired in 1966 and the site was used to brew Watney’s Red Barrel. This was followed by the acquisition of Brasseries Vandenheuvel of Brussels with 1,740 outlets (1968) and Maes with 700 outlets (1969) to position Watney Mann as the second largest brewer in Belgium.
Watney Mann announced plans to centralise production at its breweries in Mortlake, Manchester, Norwich and Edinburgh in 1970. The Trowbridge, Whitechapel and Brighton breweries would be closed. Production of cask ales had largely ceased by this time, and local names would be phased out in favour of the Watney brand. A range of 80 beers in 1969 had been rationalised to 35 by 1971.
Watney’s Red Barrel is replaced by Watney’s Red
Watney’s Red Barrel volumes peaked in 1969. Sales then entered into decline and fell behind rivals Double Diamond and Whitbread Tankard. Double Diamond offered greater consistency than Red Barrel, as it was only brewed in one place: Burton upon Trent, and it was believed that its sweeter taste and higher strength rendered it more appealing. Meanwhile it was claimed that Red Barrel suffered from inferior marketing.
For Julian Crawshay (1923 – 2009), a marketing director for Watney Mann, “a beer developed for the 1950s is not right for the 1970s”. A spokesman for Leo Burnett, the Watney Mann advertising agency, described Red Barrel as “a golf club beer, all bitter and sharp”. Watney’s Red Barrel would be replaced by a new product which would appeal to the growing 18-35 demographic. Leo Burnett account manager Gordon Barrett emphasised, “the flow of continuity really had to be punctured quite severely”.
Watney’s Red was introduced in April 1971 following two years of development and experimentation with 30 different recipes. It was a “completely different beer”, crafted to be darker, fizzier and slightly sweeter. Watney Mann marketing director Giles Myrtle described how the new beer offered “a better palate”, with more body, a smooth mouthfeel, a creamy head and good lacing.
Watney’s Red was designed as a session beer, with greater drinkability and less of an aftertaste. Julian Crawshay explained, “we were looking for the customer who settles in his local pub and drinks eight or ten pints in an evening”.
For writer Frank Baillie the beer was “well balanced … with a burnt malty characteristic”. Meanwhile The Economist opined that the new product tasted “bland”. Journalist Roger Protz recalled that it tasted “like liquid Mars bars”.
A Watney’s Red Revolution print advertisement from 1971. Designed by C.R Holland.
The product launch for Watney’s Red was supported by a £500,000 television and poster campaign. Controversially, portrayals of Castro, Khrushchev and Mao were used alongside with the tagline, “long live the Watney’s Red revolution”. Cowl conversion on 30,000 Red Barrel keg dispensers cost a further £100,000. Pub interiors and exteriors were painted red in order to promote the new beer.
Watney Mann claimed that Red was “the most successful” new beer introduction “for years”.’ Watney’s Red initially enjoyed a 15 percent sales boost against Red Barrel, and was the brewery’s most profitable beer, although Watney’s Special Bitter sold in slightly higher volume. Around 350,000 barrels of Watney’s Red were produced in 1972, accounting for between 20 to 25 percent of Watney Mann sales.
The public backlash
Watney Mann was subject to a hostile takeover by Grand Metropolitan, the owner of Truman’s Brewery of London and a host of hospitality concerns, for £405 million in 1972. At the time it represented the largest takeover in British history. The acquisition placed Grand Metropolitan in control of over one third of London’s public houses.
The Campaign for Real Ale (CAMRA) pressure group had been established in 1971. CAMRA rallied against the rise of keg beer, which it argued lost much of its flavour due to the process of filtration and pasteurisation. Robert B Semple Jr of the New York Times reported:
Public Enemy Number One for CAMRA is Watney’s, in part because the standardized exterior of a Watney pub, with its bright red background and white lettering, seems to CAMRA to typify the kind of corporate thinking that produces the homogenized beer sold within.
Watney Mann initially denied that CAMRA had any influence at all. A company spokesman characterised CAMRA members as a “cranky bunch”, and cited market research that supposedly demonstrated that the public preferred keg beer.
Watney’s paraphernalia on display in Carry On Abroad (1972)
Watney’s Red sales began to decline following a successful launch, and volumes remained stubbornly behind those of Double Diamond. The recipe was adjusted twice to increase ABV and original gravity in 1973. Richard Boston (1938 – 2006), a beer writer for The Guardian, derided the tactic as “desperate”, and argued that “Watney’s themselves are becoming uncomfortably aware that people don’t like their beer”.
A “word-of-mouth campaign [had] degenerated Watney and its products; a campaign that started as a whisper and built up to such a roar that some observers felt that the very existence of Watney as ‘a name’ was at stake”, wrote Kenneth Gooding of the Financial Times.
The impact of cost-cutting
Why did Watney Mann become the target for the most virulent criticism from CAMRA? There is evidence to suggest that Watney beers really did taste worse than those of their competitors.
An anonymous former head brewer of a Drybrough subsidiary told The Scotsman, “it had got to the stage in the industry where we were brewing by committee. The market research men said what they wanted, then the accountants and everyone else. It seems the brewer’s palate came a long way down the line”. John Keeling, who worked as a laboratory technician for Watney Mann during the 1970s, echoed this view, arguing that the company, “seemed to manage by formula and brew beer by formula. What drove them was how to use science to make beer cheaper, not better”.*
The evidence of cost-cutting is clear. The company brewed with a grist of up to 50 percent raw barley with added bacterial enzymes in an effort to lower production costs from 1971. The proportion of raw barley had been increased to up to 70 percent of the grist from 1973.** The beer was also subject to excessive pasteurisation, and was, according to Keeling, “well oxidised by the time it reached four weeks, to be honest … the predominant flavour at shelf life was oxidised beer. But [Watney’s] didn’t seem to care about that, because they weren’t as interested in flavour.”***
Watney Mann responds
Concerned by criticism of the company, as well as by falling sales of its flagship beer, Grand Metropolitan installed Anthony Tennant (1931 – 2011) as marketing and sales director for Watney Mann in late 1973. Following a market research study Watney Mann acknowledged that the introduction of Watney’s Red had “backfired”. Marketing director Stephen Lewis explained, “people felt that we had over-rationalised our products after taking over smaller breweries”.
Tennant withdrew marketing support for Watney’s Red from 1975, and Ben Truman Export Draught was offered as an alternative premium keg bitter. Double Diamond and Whitbread Tankard continued to lead in sales, and Watney’s Red had fallen behind Worthington E, Younger’s Tartan Special and Courage Tavern by 1976.
Tennant introduced Watney’s Fined Bitter, a cask beer served under pressure, to the London tied estate in early 1976. A Watney’s spokesman commented, “this is a commercial move, not a labour of love. There is now a demand for traditional beers and we are climbing aboard the bandwagon”. The beer was later renamed Stag.
In a bid to rescue the company’s reputation local brands such as Tamplin’s, Usher’s and Wilson’s were revived, and greater autonomy was devolved to nine regional subsidiaries from September 1976. Scheduled brewery closures at Trowbridge and Halifax were reversed. Pub exteriors were now painted “varying shades of anything but red”, reported the Vancouver Sun. Efforts were made to reach out to CAMRA.
In 1977 a Watney’s spokesman admitted, “we used to think it was good to be big. Today we think it’s good to be small”. Watney’s London Bitter, a traditional unpressurised cask bitter, was introduced in 1978. Plastic and chrome public house interior decoration began to be phased out in the late 1970s. New pub signs emphasised local and traditional beers.
Red is dead and the re-emergence of cask beer
Following years of low sales, Grand Metropolitan announced that Watney’s Red would be discontinued in May 1979. “In the end the majority of pubs still stocking it were selling under 10 gallons a week”, admitted a Watney’s spokesman.
The fate of Watney’s Red was “a constant warning to over-zealous marketing men in any industry who try to push traditional consumer tastes too far, too fast”, argued David Manasian in Management Today.
Cask ale was sold across half of Watney’s tied estate by 1979. The company produced 14 different cask ales by 1980. Webster’s Yorkshire Bitter was introduced from 1982 and became the core cask ale brand. Pressurised cask beer had been phased out by 1983.
The Red Barrel corporate logo was discontinued in 1982. Watney’s Red Barrel continued to be produced for overseas markets, where the brand lacked the noxious reputation it had developed in Britain, including the United States and Belgium, where it had become the highest selling pale ale by 1984.
Grand Metropolitan acquired Ruddles Brewery of Rutland in order to increase its presence in the cask ale market for £14 million in 1986. The brewery received a £5 million investment in order to double output, and a further £1 million was spent on advertising the brand.
Watney Mann exits the brewing industry
The Belgian brewing interests were divested for £28 million in 1986. Drybrough, with 187 public houses, was sold to Allied Lyons for £48.5 million in 1987.
Grand Metropolitan sold its brewing interests to Courage for £316 million in 1991. Watney’s branded products such as Special Bitter, Special Mild, Pale Ale and Brown Ale had been discontinued by the mid-1990s. Red Barrel continued to be sold in the United States until the mid-1990s. Red Barrel remained available in Belgium, France and Spain into the late 1990s.
What remains of Watney Mann? Watney’s Scotch Ale survives in Belgium, and Mann’s Brown Ale remains available throughout Britain.
Postscript
What is the lesson of the history of Watney’s Red? It is a cautionary tale of what can happen when marketing and cost-cutting become overly powerful. What ultimately matters with a drinks brand is that its taste resonates with the customer base. Brands die when company management loses sight of the fundamentals.
Further reading
* The blogs of Boak & Bailey and Ron Pattinson are invaluable sources of Watney Mann information.
* The Red Barrel: a history of Watney Mann by Hurford Janes (1963)
How did J Lyons become the largest catering business in the world within 30 years?
J Lyons is established, and the first tea rooms are opened
Barnett Salmon (1829 – 1897) and Isidore Gluckstein (1851 – 1920) established a successful chain of tobacconists.
Montagu Gluckstein (1854 – 1922), a salesman for the firm, lamented the poor state of catering at trade exhibitions. He suggested that the public could be provided with a better offer than beer and sandwiches. Gluckstein and Alfred Salmon partnered with Joseph Lyons, a distant relative, to form J Lyons & Co with a capital of £5,000. J Lyons & Co successfully provided catering for the Newcastle Exhibition of 1887. Contracts for other exhibitions soon followed.
J Lyons & Co was established as a public company with a capital of £120,000 in 1894. The original stakeholders were Montagu Gluckstein, his brother Isidore Gluckstein, brother-in-law Barnett Salmon (maternal grandfather to Nigella Lawson) and Joseph Lyons. Montagu Gluckstein was the de facto chairman of the business.
The first Lyons tea shop opened in September 1894 at 213 Piccadilly. It had 200 seats and a £30,000 lease. After a year the shop had made a profit of £11,400, and the company was able to pay a dividend of ten percent.
The first Lyons Tea Room was sited at 213 Piccadilly
The early tea room exteriors were enticing and extrovert, and the interiors were often glamorous, and intended to evoke the great Victorian exhibitions and Parisian cafes.
The Lyons tea shop girls went on strike in protest against low wages in 1895.
J Lyons establishes Cadby Hall
Cadby Hall was opened in Hammersmith to centrally produce baked goods for the company’s 17 tea shops from 1896. There were 37 tea shops in London by 1900, and expansion had begun in the provinces, with six branches in Manchester, four in Liverpool, and two in both Leeds and Sheffield.
Quality was good and prices were reasonable. The tea rooms were particularly popular throughout the daytime with lower middle class office workers. Cinema and theatre-goers patronised the chain on an evening.
The first Lyons Corner House was opened on Coventry Street in 1909. The Corner Houses were much larger than the tea rooms, with a greater appeal to the middle classes. Live bands and an informal atmosphere helped to cement their popularity. The Coventry Street outlet became the Lyons flagship outlet, and seated 2,000 diners on multiple floors. It was the largest restaurant in the world. A second Corner House, capable of seating 1,200 diners, was opened at the Strand in 1915.
J Lyons was one of the largest caterers in the world by 1911. Half a million meals were served every day through 200 shops and restaurants. The company employed over 12,000 people, including 2,000 people at Cadby Hall. The Cadby Hall works covered ten acres and included sixteen bakehouses, five cold storage rooms and three butchers’ shops.
20,000 people were employed by 1913. J Lyons was the largest baker in London, the largest tea merchant in the world and the largest restaurant operator in the world.
J Lyons dismissed all naturalised German and Austrian employees from its staff in 1914.
J Lyons also expanded into hotels, building the Regent Palace Hotel in London at a cost of £600,000. Opened in 1915, it was the largest hotel in Europe, with 1,028 bedrooms.
Lyons tea was far and away the market leader by 1915: five million packets were sold every week by 160,000 shopkeepers. The company accounted for one in four cups of tea sold in London.
Lyons had a capital of over £2 million by 1917.
Tea, coffee, bread, cakes, ice cream and groceries which had originally been produced for the tea rooms began to be sold directly to the customer, all manufactured at the company’s Hammersmith site.
In 1918 Lyons acquired two leading packet tea companies, positioned second and fourth place in the market respectively: Horniman of London and Black & Green of Manchester. The acquisitions were intended to increase Lyons’s market share in the North of England: Horniman was strong in Yorkshire and G&B strong in the North West.
The company had a share capital of £3.5 million by 1919. By this time Lyons was likely the largest catering company in the British Empire. There were 182 tea shops by 1919, making it easily the largest chain of its kind in the country.
Largest caterer in the world; Greenford plant is established
Cadby Hall was struggling to meet demand by 1919, so Lyons acquired a 30-acre freehold manufacturing site at Greenford, on the outskirts of London. Lyons opened the largest tea packing plant in the world there in 1920. Coffee, cocoa and confectionery production were also transferred to Greenford. It was the sixth largest manufacturing site in Britain.
J Lyons was the largest catering business in the world by 1921. Cadby Hall boasted the largest bakery in the world.
The Trocadero Restaurant was acquired in 1921.
There were over 22,000 employees by 1922. There were 160 Lyons tea shops in London, and a further 50 throughout Britain.
It was calculated that seven million people drank Lyons tea each week in 1922.
Lyons began construction on the Cumberland Hotel at Marble Arch, the largest hotel in Europe, in 1922. It had 1,500 rooms and a Corner House.
The Coventry Street Corner House was extended in 1923 to create what was likely the largest restaurant in the world, with seats for 4,500 diners. It also boasted the largest chocolate shop in the world. It was open 24 hours a day.
An interior view of the Lyons Corner House on Coventry Street in 1942
Ice cream manufacture at Cadby Hall had reached the mass production scale by 1923.
Lyons was the 20th largest company in Britain by 1930, with a market value of £12.1 million and 30,000 employees. It was the largest catering company in the world. Over ten million meals were sold each week. Lyons held 14 percent of the packet tea market, with over 1.25 million packets sold every day. 600,000 Swiss rolls were sold every week.
The teashop chain continued to grow strongly until the onset of the Great Depression. Teashop losses between 1934 and 1938 totalled £374,000. Despite this, due to its manufacturing and hotel concerns, the company remained the largest catering company in the world in the latter half of the 1930s.
Lyons directly employed over 42,000 people by 1937.
Lyons produced 3.5 million gallons of ice cream in 1939.
Lyons had 253 tea rooms by 1939. Due to wartime labour shortages, self service was introduced to the tea rooms from 1941, and rolled-out across the chain from 1945.
How did J&B Rare become the fifth highest-selling spirit in the world?
J&B Rare is introduced to the United States
Long-established London wine merchants Justerini & Brooks introduced J&B Rare, a blended Scotch whisky, from 1936.
J&B Rare was conceived of as an export brand. Its straw-gold body, and light, smooth, delicate character was designed to appeal to the American taste for rye whiskey. It is made with up to 50 percent single malt whisky, including Knockando, Auchroisk, Strathmill and Glen Spey.
Charles Guttman (1893 – 1969) of the Paddington Corporation was appointed as the United States distributor, and he initially established the brand in the New York City area.
Justerini & Brooks merged with Twiss, Brownings & Hallowes to form United Wine Traders in 1952.
Abe Rosenberg (1908 – 1985) became a partner in the Paddington Corporation from the mid-1950s. He began to expand J&B Rare distribution outside of its New York City heartland into the wider United States. 70,000 cases of J&B Rare were sold in 1954.
J&B Rare would compete fiercely with Cutty Sark, another Scotch whisky tailored for the American market which had been introduced by Berry Brothers, wine merchants of London, in 1923.
Justerini & Brooks refused to bolster sales by price-cutting, and J&B Rare was the most expensive non-aged Scotch whisky on the market.
Sales grew quickly as J&B Rare benefited from a shift in American tastes away from heavier Scotch whiskies such as Black & White and Ballantine’s, towards lighter blends. 700,000 cases of J&B Rare were sold in the United States in 1961, and it was the leading Scotch whisky in the New York City area.
International Vintners & Distillers
United Wine Traders merged with Gilbeys to become International Vintners & Distillers (IDV) from 1962. Gilbeys’ strong international distribution network helped to establish J&B Rare in Australia, New Zealand, Canada, South Africa and Ireland.
J&B Rare became the highest-selling Scotch whisky in the United States, with one million cases exported in 1962. The New York City area remained the heartland of the product. The brand remained virtually unknown in its native Britain.
Two million cases of J&B Rare were exported to America in 1967. J&B Rare was exported to 84 countries.
2.7 million cases of J&B Rare were sold in 1971, accounting for a substantial 55 percent of IDV profits.
Grand Metropolitan
IDV was acquired by Grand Metropolitan in 1972.
J&B Rare was the seventh highest-selling spirit in the United States by 1974, and the bestselling Scotch.
Rising sales of J&B Rare helped to render Grand Metropolitan the second largest distiller of branded Scotch whisky in the world by 1977. J&B Rare held ten percent of the global Scotch whisky market. Justerini & Brooks were awarded with a Queen’s Award for Export Achievement in 1978.
A push for sales outside the United States was a success, and J&B Rare was the second highest-selling Scotch whisky in the world by the mid-1980s.
J&B Rare was the fifth highest-selling spirit in the world by 1993.
J&B Rare was the tenth highest-selling Scotch whisky in the world in 2021. Its key markets are Southern Europe, South Africa and the United States.
Yorkshire Tea is the second highest-selling tea in Britain, with a 23 percent market share as of 2017.
Historically the leading tea brands in Britain have all been owned by large, wealthy corporations. It was argued that these companies had an advantage over small regional concerns due to marketing, distribution and technical expertise, as well as cost-scale efficiencies.
Many people would struggle to differentiate between Tetley, PG Tips and Typhoo in a blind taste testing. Twinings is different from the more mainstream three, as it is a more premium product.
Launched in 1977, Yorkshire Tea is a basic but strong black tea. It is a blend of Kenyan, Rwandan and Assam leaves. In taste and aroma it is of higher quality than Tetley, PG Tips and Typhoo, but inferior to Twinings. On price, it broadly matches PG Tips. So how did the family owned Yorkshire Tea brand rise to fourth place in a UK tea market dominated by large companies? Here are my ideas:
Value: the product offered quality at a moderate cost. Due to this, it rapidly established a cult following.
Technical innovation: the owner, Taylors of Harrogate, distributed slightly different blends in each UK region, in order to best suit the local water supply. (This ceased in 2000 when a Hard Water version was launched).
Branding: the packaging of the product evoked imagery of old rural Yorkshire. It tied in to a desire for provenance, and smaller-scale craft production. The slogan on the box, “Let’s have a proper brew” suggests authenticity due to the product’s local-ness and smaller scale production. It also indicates that its competitors do not offer this. Also the name, “Yorkshire Tea” is no-nonsense and straight forward.
Advertising: The brand was not advertised on television until 1997, when it sponsored Heartbeat. The association was canny: Heartbeat was a programme that was strongly associated with rural Yorkshire.
Marketing: The tea was offered for free to branches of the Women’s Institute until 2011. This gave women (who usually do the grocery shopping) a chance to taste the product.
The Grocer also suggest that Yorkshire Tea has a “stronger taste profile” than its competitors.
By 1994, five million cups of Yorkshire Tea were drunk each day. By 2001 this had grown to nine million cups. The brand had sales of £46.1 million in 2010. Value sales grew an impressive 66 percent between 2009 and 2014.
