In 2001 Tim Westwell and Sebastian Pole had a simple idea: to connect people with the incredible power of plants through a range of  organic herbal teas and supplements.

Their Pukka Herbs business was born, growing rapidly into a much-loved brand with an annual turnover of £26m and sales in 45 countries. In 2017, Shaw & Co advised Tim and Sebastian on the sale of the business to Unilever, a global conglomerate with over 400 brands and an annual turnover of £51bn euros.

We caught up with Tim to see how things have changed since 2017…

How have things changed for the business since you sold to Unilever?

There’s not actually been any changes. We continue to be based in Bristol with our fabulous range of organic herbal teas and supplements. Unilever really wanted to capitalise and learn from us, not only in terms of our success but also in terms of how we go about doing business. They have been really drawn by the authenticity of what we are doing – we’re not just another brand, another tea, we’re a living entity, a movement for real change across the world.

What they have certainly brought to the table is access to global markets through their presence in the black tea business (they are the biggest in the world with brands such as PG Tips and Lipton). Our intention was always to piggyback on this sales and distribution network and to grow Pukka further. Black tea sales have slowed for all companies whereas sales of herbal teas such as ours have grown hugely. Unilever found that very attractive so we’ve been able to bring our teas along and really lock them into the global network.

"We’re not just another brand, another tea, we’re a living entity, a movement for real change across the world."

Tim Westwell
Co-Founder, Pukka Herbs

‍

What have you learnt as a businessman/entrepreneur?

It has really reiterated my belief that what we are doing at Pukka is amazing, unique and a new way of doing business. Unilever was interested in being a more entrepreneurial business and they were drawn to our entrepreneurial spirit as they see that as being a huge factor for growth. They have a host of talented and skilled people but they could also see the value in buying a business that comes with Pukka’s pedigree and heritage where people had worked for it and invested in it for some time. A large corporation is more likely to move people around for their career path to grow. and what they’ve learnt – and what I’ve learnt – is just how vital it is to keep your own leadership team and culture together while helping them to flourish, grow and thrive.

Following the trade sale, what did you learn most from the process and what would you do differently if you went through one again?

I think a key thing is to have more space and time to reflect. It is very difficult to run a business and sell it at the same time so we took the decision to get someone in to help manage whilst we were going through that sale phase. I definitely saw the value in creating that extra resource which could give us the space to focus on securing a good home for Pukka.

‍

"It is also vital that you sell when the business is doing well, not when you are in a tight corner."

Tim Westwell

‍

What advice would you give to other business owners looking to sell their business?

Give yourself the space and freedom to be able to go through the process. You need some choice of who you might want to sell to and you need to investigate those companies as much as you can with help from a financial advisor – Shaw & Co were a great help to us in this respect for example.

It is also vital that you sell when the business is doing well, not when you are in a tight corner. Therefore, it’s important to stay ahead of your curve and optimise when you sell it. If you can, plan ahead and hit the sweetspot.

Finally, be prepared for the due diligence process. We had a huge amount of help from Shaw & Co in terms of guiding us through the process but don’t forget to get support for your Financial Director as they will need to collate a vast amount of material and answer all the questions that will undoubtedly arise.

What was the impact of Covid?

Besides the obvious things like people working from home, staff not being able to gather together etc, it certainly affected various aspects of the supply chain. Climate was already having a massive impact on our supply chain and we were already having to broaden our horizons when it came to sourcing herbs. As a result, we are building even more consistency in our supply chain, especially as we are growing at 30% or 40% a year. Of course, Brexit has also been an issue in terms of having to prepare for the various outcomes and it’s taken a lot energy.

Has your own role changed? If so, how?

I continued to operate as CEO for several months after the deal to ensure a smooth transition. I now have an advisory role on the board as it really is like having a child – you want to help give them every opportunity to succeed.

We've also created a new board called the ‘Mission Council’, with some highly experienced non-exec directors who are experts in providing expertise in our core mission values such as climate, social welfare and justice, herbal health, and organic  to ensure that we continue to learn and exemplify.

I think what has been important is the way in which we have liberated Pukka from being founder-led to leadership team-led while still maintaining the same values and culture. And what’s more, not just maintaining it, but growing and developing that culture.

‍

"The Middle East has also opened up as a new market for us..."

Tim Westwell

‍

As the brand has moved further into Unilever’s global network, what new markets have opened up and what differences have you noticed in consumer tastes?

We’ve always been fascinated by the Far East and Unilever’s base in Singapore will help with markets such as China. The Middle East has also opened up as a new market for us and we’re keen to continue growing in North America.

In terms of consumer tastes then these tend to be quite global. In the Far East, the tea palate can be softer and more mellow with flavours such as camomile and liquorice, while in the colder northern hemisphere we can gravitate towards slightly spicier flavours such as ginger to keep us warm.

A sustainable ethos is at the heart of what you do. How important was it to find a corporate partner that shared the same values?

It was vital. We were particularly impressed with Unilever’s Sustainable Living Plan, a ten-year strategy to make the company’s global operations more sustainable. They also wanted to learn more from us about fair trade and organic

The sale has also provided us with an opportunity to highlight all the things we’ve achieved and how these could work at Unilever. For example, looking at priorities on quality value and impact in the supply chain, as well as costs, which in turn has a positive impact on our farmers and growers, helping to reflect Pukka’s whole ethos.

"Unilever is playing an integral role in developing better standards in the industry."

Tim Westwell

‍

Of all the causes Pukka or Unilever support, which one is closet to your heart?

The black tea industry has come in for some criticism in the past and Unilever is playing an integral role in developing better standards in the industry as well as issues like social welfare. Closest to my heart, is our Pukka Mission and its enduring continuation.

How do you see the business developing over the next five years?

We’ll continue to grow the UK business which is still fundamentally important to us. However, it’s our global presence, which is the key reason we joined Unilever, not just in terms of growth but in terms of our legacy and connecting people to the power of herbs and creating a more conscious world.