Ringtons acquires new industrial unit in most significant investment ‘in recent years’

Historic Newcastle tea company Ringtons has acquired a huge industrial unit in its most significant investment in years.

The tea merchants import and package tea for major supermarkets, alongside its own brand of coffees, teas and sweet treats, which are sold online, in stores and through its traditional doorstep delivery service. The 117-year-old company employs more than 560 people across its Byker head office, Balliol Business Park factory, delivery service and a number of smaller business functions across the region.

Now, however, several business streams are set to be brought under one roof after the company added the former Royal Mail depot in North Tyneside to its portfolio. Director Colin Smith – one of three fourth-generation family members on the Ringtons board alongside his brothers Simon and Nigel – said the investment marks a significant move.

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He said: “It is the most significant investment we have made in recent years, certainly.”

Ringtons’ factory at Balliol Business Park is based three units down from its new acquisition, and Mr Smith said the company had been looking to expand its operations there for some time. The business was rapidly running out of space at its existing site when Buccleuch Property put the huge 40,000 sqft industrial unit on the market, through property agents Naylors Gavin Black and Avison Young, after carrying out a £500,000 refurbishment to draw in new tenants.

Mr Smith said the new building brings Ringtons a number of benefits.

He said: “When the Royal Mail opportunity came up we had a close look at it and decided that we could consolidate a number of operations into it, which would mean that the expansion at the factory would be negated, and far less complex. First of all, it will act as a distribution and service centre for our hospitality business. That is currently in a leased building in east Newcastle, which is due to expire. So we can bring that into our own estate.

“Secondly, we can relocate our fruit and herb processing and storage facility into the new building, which is currently in a leased building at Tyne Tunnel Estate. Then we’ve got a significant amount of goods, mainly raw materials, in outside storage. We will bring some of that in-house.

“And then we will relocate the main administration functions from the current factory into the new building. That will allow us to do a more controlled expansion of the factory.”

Around 50 members of staff will eventually be based within the new site. The changes won’t all happen immediately, however, but will be carried out in a number of phases over the next three years, starting with the imminent relocation of the hospitality business and the fruit and herb operations, once their current leases expire.

Mr Smith added: “It has also taken out a significant amount of road miles, by having this located right next to our factory. So environmentally it’s the right thing to do, and it gives us the opportunity to prepare for the growth that we are enjoying.”