Finlays tea

Finlays will supply fruit tea and herb tea to Sainsbury’s

Finlay Beverages has secured a new supply deal with Sainsbury’s, two years after losing a 100-year-old tea contract with the retailer.

The company revealed to The Grocer it had recently picked up a contract to supply Sainsbury’s with fruit and herbal teas.

The business win comes after it lost a contract for Red Label, Gold Label and decaf to Spicers, as well as a Taste the Difference contract to Ringtons, in 2011.

The loss of the contracts led to a 25% drop in turnover to £40m in the year to 31 December 2012, according to results made available at Companies House this week. Pre-tax losses widened from £1.8m to £6.5m.

However, since then, Finlay Beverages has won new business with Booker, Lidl and Tesco, as well as contract packing contracts with Lancashire Tea, Cornish Tea and Make Mine a Builders.

“2012 was a difficult year for Finlay Beverages in the UK,” said managing director Ian Bryson. “However, Finlays has begun to improve the fortunes of the business with an enhanced commercial and category function and a new senior team in place.”