All eight staff are former Gold Crown employees and it is expected that the workforce will increase over the next three years.
Mr Needham said: "The MSIF backing was crucial - without it we would not have been able to get started. We are delighted that we have been able to take on staff that would otherwise have lost their jobs and have been astounded by the huge amount of interest there is already in Lancashire Tea."
Company secretary Lynn Hitchen added: "The product is made from a fine blend of tea sourced from Kenya, Sumatra, Malawi and Rwanda.
"We've done extensive market research and we know people love the taste."
Already the company has signed deals with retailers Asda and Booths and management is in talks with a number of other big names including Tesco, Morrisons, Londis, Nisa and Spar.
Turnover is expected to hit £3m over the next three years. Currently eight staff are employed and this is expected to treble over the next two years.