Thomas Lipton - Grocer and Lipton's Tea

Grocer and Lipton's Tea

In 1864 Lipton signed up as a cabin boy on a steamer running between Glasgow and Belfast and was captivated by life aboard the ship and the stories told by sailors who had traveled to the United States. After being let go by the steamer company, Lipton quickly used the wages he had saved to purchase passage on a ship bound for the U.S., where he would spend five years working and traveling all over the country. Lipton had a number of jobs during this time: at a tobacco plantation in Virginia, as an accountant and bookkeeper at a rice plantation in South Carolina, as a door-to-door salesman in New Orleans, a farmhand in New Jersey, and finally as a grocery assistant in New York.

He returned to Glasgow in 1870, initially helping his parents run their small shop in the Gorbals. The following year he opened his first provision shop—Lipton's Market—at 101 Stobcross Street in the Anderston area of Glasgow. This enterprise proved to be successful and Lipton soon established a chain of groceries, first across Glasgow, the rest of Scotland, until finally he had stores throughout Britain. While Lipton was expanding his empire, tea prices were falling and demand was growing among his middle class customers. In 1880, Lipton invested in the young stockyards of Omaha, Nebraska, founding a large packing plant in South Omaha. He sold it to American interests in 1887. In 1888, when his empire had grown to 300 stores, he entered the tea trade and opened his tea-tasting office. He started bypassing traditional trading and wholesale distribution channels (most UK tea-trading was focused in London's Mincing Lane) in order to sell teas at unprecedented prices to the untapped poor working class market. In order to provide his shops with goods Lipton bought plantations and in doing so - amongst other things - he established the Lipton tea brand which is still in existence today.

Thomas Lipton visited Sri Lanka in the 1890s and made business deals with James Taylor the man who introduced tea plantations to Sri Lanka (Ceylon), with working people from India (Tamil people). Lipton's company purchased tea from Sri Lanka and distributed it through Europe and the USA. In 1902 he was created a baronet of Osidge in the Parish of Southgate in the County of Middlesex.