Latest news with #AlliedBakeries
Scottish Sun
06-05-2025
- Business
- Scottish Sun
Two of Britain's oldest bread brands in bombshell merger talks to combine their bakeries
TWO of Britain's oldest and best-known bread brands reckon they might make more dough if they combine their bakeries. Kingsmill owner Associated British Foods yesterday confirmed it was in talks with the owner of Hovis. 3 Kingsmill owner Associated British Foods yesterday confirmed it was in talks with the owner of Hovis 3 Kingsmill, promoted here by Mel & Sue, has had a tough time financially Credit: YouTube Hovis, which is still known for its classic boy on a bike advert, traces its roots to 1886. It was bought by Endless, a turnaround firm, from Bisto-maker Premier Foods five years ago. The talks come a week after ABF said that it had launched a strategic review of its Allied Bakeries business, which includes Kingsmill, amid slowing sales and a squeeze on profits. Bakeries have been struggling for the past decade as health- conscious Brits are eating less white bread, opting for breakfast cereals instead of toast. Non-gluten diets have also been on the rise. Brits now eat half the amount of bread they did 50 years ago, according to recent research. A combination between Kingsmill and Hovis would see the combined company overtake current market leader Warburtons, which has boosted its sales with crumpets, wraps and muffins as loaf sales falter across the industry. Meanwhile, intense competition in supermarkets has also limited the ability for bread-makers to increase prices as shoppers often use the price of a loaf of as an indicator for whether or not a supermarket is more expensive than a rival. ABF said: 'Allied Bakeries continues to face a very challenging market. We are evaluating strategic options for Allied Bakeries against this backdrop and we remain committed to increasing long-term shareholder value.' The potential deal has been called 'survival through scale' by Anubhav Malhotra, an analyst at Panmure Liberum, who said that the two companies may 'struggle to remain viable independently'. He said: 'Allied Bakeries has faced ongoing challenges amid a highly competitive UK bakery market, characterised by competition for volumes, a price-sensitive consumer and retail landscape conditions under which Hovis also reported an operating loss last year.' Shopping discounts - How to make savings and find the best bargains Allied Bakeries, founded in 1935, makes around £400million in sales a year, but is thought to have made a loss of £30million in 2023. By comparison, Hovis made revenues of £478million and an operating loss of £3.5million. Meanwhile, rival Warburtons made a £34.3million profit on £711million of sales during the same period. However, a combination of Kingsmill and Hovis would likely attract scrutiny from the Competition and Markets Authority. Deliveroo swallowed up THE boss of Deliveroo yesterday shrugged off the takeaway company's bumpy ride on the London stock market as it was swallowed by a much larger American rival. Doordash bought the firm for £2.9billion — just over a third of what investors paid to back its £7.6billion London listing four years ago. 3 Doordash has snapped up Deliveroo for £2.9bn — about a third of its £7.6billion London listing four years ago Credit: Alamy Will Shu, who founded Deliveroo in 2013, told The Sun 'shares go up and shares go down', adding: 'I'm proud of what we have achieved as a company.' Shares in Deliveroo crashed after its stock market debut in 2021. Despite expanding its business into delivering goods for supermarkets, the firm has never clawed back to its listing price. Mr Shu, an ex-banker, will make around £185million from cashing in his shares in the takeover and could stay with the business. Staff, who own 36million shares, will share a £65million windfall. But up to 800 jobs may be at risk as a result of the takeover. Amazon, which bought a 13 per cent stake in Deliveroo when it was valued at £5.2billion, declined to comment. The shelf hackers THE CO-OP said it was 'working around the clock' to battle a cyber attack that has left gaps on shelves and payment problems in stores. It has been hit by the same hackers as M&S, which has been impacted since Easter and cannot take online orders. The Co-op admitted a 'small number of stores' could only accept cash after problems with contactless payments on Monday and yesterday. Some have missing items, because deliveries have not arrived as stock ordering systems have been taken offline. Services in slump THE UK's service sector has shrunk for the first time in a year and a half as uncertainty from Trump's tariffs triggered overseas firms to halve orders. The purchasing managers index (PMI) hit 49.0 in April, down from 52.5 in March. Under 50 shows contraction. New work from abroad fell at its fastest rate since February 2021. And smaller services firms also highlighted higher costs and staff reductions caused by the Budget. More than a fifth expect activity to fall in the next year. Tim Moore at S&P Global Market Intelligence said: 'Heightened uncertainty weighed on order books.' Car sale nosedive SALES of new cars slumped by more than 10 per cent last month on the back of changes to tax rules for electric cars. According to the Society of Motor Manufacturers and Traders, 120,331 new vehicles were registered in April. The industry blamed the fall on people rushing to buy electric vehicles earlier in the year before a tax deadline that added £425 a year to the cost of 'expensive cars' from April 1. Electric car registrations still rose by 8 per cent in April, but their market share is significantly below the Government's Zero Emission Vehicle Mandate. SHARES BARCLAYS down 2.95 to 298.10 down 2.95 to 298.10 BP up 4.85 to 355.15 up 4.85 to 355.15 CENTRICA up 1.25 to 159.15 up 1.25 to 159.15 HSBC up 1.10 to 846.50 up 1.10 to 846.50 LLOYDS up 1.04 to 71.62 up 1.04 to 71.62 M&S down 17.60 to 360.20 down 17.60 to 360.20 NATWEST down 4.00 to 478.00 down 4.00 to 478.00 ROYAL MAIL down 1.20 to 360.00 down 1.20 to 360.00 SAINSBURY'S up 9.00 to 272.40 up 9.00 to 272.40 SHELL down 52.50 to 2434.00 down 52.50 to 2434.00 TESCO up 5.80 to 376.80
Business Mayor
06-05-2025
- Business
- Business Mayor
Baking a deal? Hovis and Kingsmill owners in talks about historic merger
The owners of Hovis and Kingsmill have entered talks that could lead to two of the UK's biggest bread brands merging amid 'challenging' market conditions. After weekend reports, Associated British Foods (ABF), which owns the Kingsmill parent Allied Bakeries as well as the budget clothing chain Primark, confirmed it was in negotiations with Hovis's private equity owner, Endless, regarding a potential sale of the bakeries arm. It said last week that it was considering strategic options for the business. If a deal is agreed, it would bring Kingsmill and Hovis, two of the UK's best-known and oldest supermarket bread brands, under one roof. ABF told shareholders: 'Allied Bakeries continues to face a very challenging market. We are evaluating strategic options for Allied Bakeries against this backdrop and we remain committed to increasing long-term shareholder value.' The company reported last week that sales at Allied Bakeries fell in the 24 weeks to 1 March, which resulted in a higher operating loss at its UK-based grocery business. Sliced bread producers have struggled in recent years amid higher wheat and energy prices, coupled with changing consumer habits. Britons' appetite for bread has waned as people have been cutting back on carbohydrates and gluten, and lunchtime alternatives to sarnies have increased, such as protein pots, salad bowls and sushi. Sliced bread makers also face competition from artisan bread such as sourdough loaves, and are under intense pressure to keep supermarket prices low. The deal is expected to attract scrutiny from the competition watchdog because it would bring together the UK's second- and third-biggest breadmakers, creating a new market leader, ahead of Warburtons. The combined annual sales of Allied Bakeries (estimated at £400m) and Hovis (£478m in the year to September 2023) would be higher than those of Warburtons (£711m in the year to September 2023), according to the Panmure Liberum analyst Anubhav Malhotra. Warburtons is a private family-owned business founded in 1876, and actively managed by the fifth generation of the Warburton family. The company is known for its eye-catching TV adverts, in 2019 landing the Hollywood star Robert De Niro. Hovis, which was founded in 1890, was bought by Endless in 2020 from Premier Foods, which owns the Mr Kipling brand. skip past newsletter promotion Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy. We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply. after newsletter promotion Allied Bakeries dates back to 1935, when the bakery entrepreneur Willard Garfield Weston set up Allied Bakeries and its sister company Allied Mills. It also owns the Allinson's and Sunblest brands, with eight bakeries and six depots stretching from Glasgow to London. ABF is still part-owned by Allied's founding family, and is run by George Weston. ABF's sugar division is also struggling, while its Primark chain posted a sharp drop in UK sales last week and lost market share, as the company warned that consumer confidence was likely to worsen further amid Donald Trump's trade wars. ABF's shares fell by nearly 1% on Tuesday. 'Despite considerable efforts over recent years to reduce costs and restructure operations, Allied Bakeries has struggled to achieve a sustainable turnaround,' Malhotra said. 'A potential merger of equals could unlock significant cost efficiencies necessary for the turnaround of both businesses.'
Yahoo
06-05-2025
- Business
- Yahoo
Allied Bakeries owner ABF confirms talks with Hovis backer Endless
Associated British Foods (ABF) is in discussions with private-equity firm Endless as the manufacturer weighs up the future of UK bread arm Allied Bakeries. In a brief statement on the ABF website, the UK group confirmed the two sides are in talks "regarding a potential transaction". Last week, ABF, which has its origins in the UK bread sector, said it had put Allied Bakeries up for review amid a 'very challenging market'. UK private-equity firm Endless has owned Allied Bakeries rival Hovis since 2020. "Associated British Foods plc notes recent media speculation and confirms that it is in discussions with Endless LLP regarding a potential transaction," ABF's statement read today. "However, there is no certainty that a transaction will be concluded nor as to the terms of such a transaction. "As stated in our interim results announcement on 29 April 2025, Allied Bakeries continues to face a very challenging market. We are evaluating strategic options for Allied Bakeries against this backdrop and we remain committed to increasing long-term shareholder value. A further announcement will be made as and when appropriate." The Allied Bakeries business markets bakery products under brands including Kingsmill, Sunblest and Allinson's. It also supplies UK retailers with private-label products. This embedded content is not available in your region. ABF, which also owns and operates the Primark clothing stores, does not break down the financial performance of Allied Bakeries or for other food brands within its grocery business such as Twinings tea and the Patak's and Blue Dragon sauces lines. Last Tuesday also saw the company report its financial results for the 24 weeks to 1 March. In terms of grocery, ABF's sales revenue dropped 2% to £2.09bn ($2.79bn). Operating profit was flat at £219m, while adjusted operating profit fell 1% to £227m. ABF said it posted 'good sales growth' in grocery 'across most of our brands' with the exception of Allied Bakeries and its cooking oils business in the US, which includes the Mazola brand. In commentary alongside the results, the company said: 'We continue to expect overall performance this year to reflect the normalisation of profitability in our US-focused businesses and an operating loss in Allied Bakeries.' Group results showed a 2% decline in sales to £9.51bn, while adjusted operating profit dropped 12% to £835m. "Allied Bakeries owner ABF confirms talks with Hovis backer Endless" was originally created and published by Just Food, a GlobalData owned brand.
Times
06-05-2025
- Business
- Times
Kingsmill and Hovis in merger talks amid processed foods backlash
The owner of Kingsmill has confirmed it is considering a merger of its bread business with Hovis as the baking industry struggles against a backlash to processed foods and the growing adoption of low-carb diets. Associated British Foods, which also owns Ryvita and Primark, said it was in discussions with Endless, the private equity firm, about combining Hovis and Allied Bakeries, the bread business which includes Kingsmill. The deal would see two of the UK's largest bread brands come together as the industry struggles against changing consumer habitsand higher costs. It is thought the merger could attract scrutiny from the competition regulator, as the combined group would have a substantial share of themarket. In a statement, ABF said: 'We are evaluating strategic options for Allied
Yahoo
06-05-2025
- Business
- Yahoo
Hovis and Kingsmill owners in talks about bread merger
Allied Bakeries owns the Kingsmill, Sunblest and Allinson's brands. Photograph: Phil Noble/Reuters The owners of Hovis and Kingsmill have entered talks that could lead to two of the UK's biggest bread brands merging amid 'challenging' market conditions. Associated British Foods (ABF), which owns Kingsmill parent Allied Bakeries as well as the budget clothing chain Primark, said it was in negotiations with Hovis's private equity owner, Endless, regarding a potential deal. If a deal is agreed, a takeover would bring Kingsmill and Hovis, two of the UK's best-known and oldest supermarket bread brands, under one roof. Related: Deliveroo agrees £2.9bn takeover by US rival DoorDash ABF told shareholders: 'Allied Bakeries continues to face a very challenging market. We are evaluating strategic options for Allied Bakeries against this backdrop and we remain committed to increasing long-term shareholder value.' The company reported last week that sales at Allied Bakeries fell in the 24 weeks to 1 March, which resulted in a higher operating loss at its UK-based grocery business. Sliced bread producers have struggled in recent years amid high inflation, coupled with changing consumer habits. The deal would attract scrutiny from the competition watchdog because it would bring together two of the UK's biggest breadmakers; the market leader is Warburtons. It is a private family-owned business founded in 1876, and actively managed by the fifth generation of the Warburton family. The company is known for its eye-catching TV adverts, and even landed the Hollywood star Robert De Niro. Hovis, which was founded in 1890, was bought by Endless in 2020 from Premier Foods, which owns the Mr Kipling brand. Allied Bakeries dates back to 1935, when the bakery entrepreneur Willard Garfield Weston set up Allied Bakeries and its sister company Allied Mills. It also owns the Allinson's and Sunblest brands, with eight bakeries and six depots stretching from Glasgow to London. ABF is still part-owned by the Allied's founding family, and is run by George Weston. ABF's sugar division is also struggling, while its Primark chain posted a sharp drop in UK sales last week and lost market share, as the company warned that consumer confidence was likely to worsen further amid Donald Trump's trade wars. ABF's shares rose 1% in early trading on Tuesday before easing back.
