Up to 90 jobs are set to be lost at Typhoo Tea after it revealed plans to close its "ageing" blending and packing site in Moreton in June.
The company said it is "actively exploring" options for a new site and re-employment, but added that it will be at least one year before a suitable location is ready.
Executive chairman Mike Brehme said: "Unfortunately the spiralling cost of energy and materials, alongside low levels of productivity achievable at the Moreton factory, make it necessary to close the loss-making site.