North East based alcoholic tea suppliers NOVELTEA are exporting their Alcoholic Tea Blends to China after securing a new agreement with an investment and distribution company with strong links in Asia.
NOVELTEA, set up by former Newcastle University graduates and artisan tea mixologists Vincent Efferoth and Lukas Passia in 2016, has teamed up with the Asian investment and distribution company FEAST Holdings GMBH, in a bid to crack the lucrative Chinese/Asian markets and boost its global sales.
As part of the distribution deal, FEAST will receive an equity stake in NOVELTEA, an indication of the distributor’s desire to help the popular alcoholic tea succeed globally.
The business has just launched its third alcoholic brew – The Tale of Oolong – a blend of Chinese Oolong tea and Scotch whisky. The new ‘Tale’ adds to its existing distinctive products, ‘The Tale of Earl Grey’ and ‘The Tale of Tangier’ and complements NOVELTEA’s ambitious plans to boost sales and grow its business internationally.
Viewers of BBC2’s Dragons’ Den recently watched the NOVELTEA co-founders Vincent Efferoth and Lukas Passia turn down investment offers from three Dragons, after politely declining to give away 30% of their business. That decision was vindicated within days of filming, when the pair had raised a whopping £342,000 for approximately 9% of the business, giving NOVELTEA a valuation of £3.8m.
NOVELTEA’s Efferoth said: “We’re delighted to strike this innovative distribution deal with FEAST, supported by forward-thinking legal advice from Muckle LLP. We’re always looking for new partners that share our love of creativity and tea, and this deal is symptomatic of how we do business.
“NOVELTEA’s products have huge global sales potential and we have ambitious plans to extend our range and grow our overseas market.
“With a creative, confident team and a passion for doing business differently, we are teaming up with a distributor who has the drive, expertise and connections to help extend our networks, boost sales and increase profits.”
Janis Vougioukas, director at FEAST, said: “We’re thrilled to team up with NOVELTEA and to sign up to this mutually beneficial distribution deal. We have great connections in China and other parts of Asia so we’re confident that we will be able to help deliver strong sales and increased turnover for everyone involved.”
Legal work for the distribution deal between NOVELTEA’s holding company Tea Venture Limited and FEAST was completed by associate Amy Wanless and solicitor Tom Justice of Muckle LLP, the North East’s leading independent law firm for businesses.
Wanless added: “We have been working with NOVELTEA from early on in their journey, initially supporting them through our Mi Business legal services package, which is designed to help small and start-up business grow.
“What truly makes this a standout deal is that FEAST will receive an equity stake in NOVELTEA, and now both businesses are working to develop the brand’s global appeal and increase share value, benefitting all investors who have so far supported the company’s rapid growth.”