Associated British Foods
Encyclopedia
Associated British Foods plc is a global food, ingredients and retail company headquartered in London, United Kingdom. Its ingredients division is the world's second largest producer of both sugar and baker's yeast
and a major producer of other ingredients including emulsifiers, enzymes and lactose
. Its grocery division is a major manufacturer of both branded and private label grocery products and includes the brands Mazola, Ovaltine
, Ryvita
, Jordans
and Twinings
. Its retail division, Primark
, has 205 stores with over 6500000 sq ft (603,869.8 m²) of selling space across Belgium, Germany, Ireland, the Netherlands, Portugal, Spain and the UK.
It is listed on the London Stock Exchange
and is a constituent of the FTSE 100 Index
.
, a leading British supermarket chain. Following the death of the founder in 1978, control of the company was passed on to his son Garry
, while the North American operations fell to his son Galen
. While Garry maintained the company's prominence in the European foods market, ABF's growth has been eclipsed by the phenomenal performance of George Weston Limited
in North America.
The company sold Fine Fare
in 1986 and in 1991 went on to acquire British Sugar. In 1997 ABF sold its retail operations in Northern Ireland and the Republic to Tesco
. These businesses were: Quinnsworth
and Crazy Prices
in the Republic of Ireland and Stewarts Supermarkets Ltd and Crazy Prices in Northern Ireland, the Stewarts Winebarrel off-licence chain, Lifestyle Sports & Leisure Ltd (a retail sports and leisure business), Kingsway Fresh Foods (a meat processing facility) and Daily Wrap Produce (a fruit and vegetable packaging plant).
In 2000 the company sold its interests in Burton's Biscuits. In 2004 it acquired the Tone's spice business and Fleischman yeast business from Burns Philp
and in 2007 it purchased Patak's
Indian food business.
On 26 March 2011 Associated British Foods, and its parent company Wittington Investments
, were targeted over tax avoidance
by UK Uncut
during anti-cuts protests
. The tax avoidance scheme involved moving capital between ABF/Primark and the affiliated Luxembourg entity ABF European Holdings & Co SNC by means of interest-free loans, avoiding tax of about £9.7 million per year. The protest took the form of a mass sit-in
in Fortnum & Mason
.
. 79.2% of the share capital of Wittington Investments is owned by the Garfield Weston Foundation
, which is one of the UK largest grant-making charitable trusts, and the remainder is owned by members of the Weston family. Wittington Investments also owns Fortnum & Mason
and Heal & Son. George G. Weston became chief executive of ABF on 1 April 2005, and Galen Weston, the chief executive of George Weston Ltd., is a non-executive director
. Garth Weston is Regional President of AB Mauri.
Baker's yeast
Baker's yeast is the common name for the strains of yeast commonly used as a leavening agent in baking bread and bakery products, where it converts the fermentable sugars present in the dough into carbon dioxide and ethanol...
and a major producer of other ingredients including emulsifiers, enzymes and lactose
Lactose
Lactose is a disaccharide sugar that is found most notably in milk and is formed from galactose and glucose. Lactose makes up around 2~8% of milk , although the amount varies among species and individuals. It is extracted from sweet or sour whey. The name comes from or , the Latin word for milk,...
. Its grocery division is a major manufacturer of both branded and private label grocery products and includes the brands Mazola, Ovaltine
Ovaltine
Ovaltine is a brand of milk flavoring product made with malt extract , sugar , cocoa, and whey...
, Ryvita
Ryvita
Ryvita is a rye-based crispbread which up until 2009 was manufactured by The Ryvita Company. The company was founded in Birmingham, England, in 1930 and is today a subsidiary of Associated British Foods. Ryvita crackers are popular with dieters...
, Jordans
Jordans (company)
Jordans is a company that makes brands of crunchy oat and nut cereal based in Biggleswade in Bedfordshire.-History:Holme Mills on Langford Road in Biggleswade, situated next to the River Ivel, was bought by William Herbert Jordan in 1855. It burnt down in 1899. It produced flour until 1972, when...
and Twinings
Twinings
Twinings is a marketer of tea based in Andover, Hampshire, England.- History :The founder of Twinings, Thomas Twining, opened the first known tea room, at 216 Strand, London, in 1706, which is still operating today. The firm's logo, created in 1787, is one of the world's oldest in continuous use...
. Its retail division, Primark
Primark
Primark is a clothing retailer, operating over 223 stores in Ireland , the United Kingdom, the Netherlands, Germany, Spain, Portugal and Belgium...
, has 205 stores with over 6500000 sq ft (603,869.8 m²) of selling space across Belgium, Germany, Ireland, the Netherlands, Portugal, Spain and the UK.
It is listed on the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
and is a constituent of the FTSE 100 Index
FTSE 100 Index
The FTSE 100 Index, also called FTSE 100, FTSE, or, informally, the footsie , is a share index of the 100 most highly capitalised UK companies listed on the London Stock Exchange....
.
History
The company was founded by Canadian Willard Garfield Weston in 1935, initially as Food Investments Limited, with the name changing to Allied Bakeries Limited a month later. In 1960 the name was changed again to Associated British Foods. In 1963 the Company acquired Fine FareFine Fare
Fine Fare was the name of a chain of supermarkets in the United Kingdom. It was famous for its Yellow Pack budget own-label range.-History:The company started as a single supermarket in Brighton in 1956. It was one of a series of convenience store chains established in the 1950s, the others being...
, a leading British supermarket chain. Following the death of the founder in 1978, control of the company was passed on to his son Garry
Garry Weston
Garfield "Garry" Howard Weston, CBE was a Canadian-born businessman in the United Kingdom. Born in Toronto, Ontario, he was the son of Reta and W. Garfield Weston, owner of the George Weston Limited conglomerate headquartered in Toronto: fourth of their nine children...
, while the North American operations fell to his son Galen
Galen Weston
Willard Gordon Galen Weston, OC, OOnt , is a Canadian businessman and philanthropist. He is the Chairman and President of George Weston Limited...
. While Garry maintained the company's prominence in the European foods market, ABF's growth has been eclipsed by the phenomenal performance of George Weston Limited
George Weston Limited
George Weston Limited , often referred to as Weston or Weston's, is Canada's largest food processing and distribution company. Founded by George Weston in 1882, the company today consists of Weston Foods, a wholly owned subsidiary, and Loblaw Companies Limited, the country's largest supermarket...
in North America.
The company sold Fine Fare
Fine Fare
Fine Fare was the name of a chain of supermarkets in the United Kingdom. It was famous for its Yellow Pack budget own-label range.-History:The company started as a single supermarket in Brighton in 1956. It was one of a series of convenience store chains established in the 1950s, the others being...
in 1986 and in 1991 went on to acquire British Sugar. In 1997 ABF sold its retail operations in Northern Ireland and the Republic to Tesco
Tesco
Tesco plc is a global grocery and general merchandise retailer headquartered in Cheshunt, United Kingdom. It is the third-largest retailer in the world measured by revenues and the second-largest measured by profits...
. These businesses were: Quinnsworth
Quinnsworth
Quinnsworth was a supermarket company in the Republic of Ireland, that was founded by the entrepreneur Pat Quinn.-History:Quinnsworth was founded by Pat Quinn in 1966 and was sold to Powers Supermarkets Limited in the 1970s. During the 1970s, the slogan used was "Let's get it all together at...
and Crazy Prices
Crazy Prices
Crazy Prices was a supermarket chain operating in the Republic of Ireland and Northern Ireland formerly owned by Associated British Foods...
in the Republic of Ireland and Stewarts Supermarkets Ltd and Crazy Prices in Northern Ireland, the Stewarts Winebarrel off-licence chain, Lifestyle Sports & Leisure Ltd (a retail sports and leisure business), Kingsway Fresh Foods (a meat processing facility) and Daily Wrap Produce (a fruit and vegetable packaging plant).
In 2000 the company sold its interests in Burton's Biscuits. In 2004 it acquired the Tone's spice business and Fleischman yeast business from Burns Philp
Burns Philp
Burns Philp was once a major player in the food manufacturing business. Since its delisting from the Australian Stock Exchange in December 2006 and the subsequent sale of its assets, the company has mainly become a cashed up shell company...
and in 2007 it purchased Patak's
Patak's
Patak's is a brand of curry pastes and spices now owned by Associated British Foods.The company supplies 75% of British curry houses with sauces and mixed spices, and sells ready meals to all the major UK supermarkets and other major retailers throughout Europe and North America...
Indian food business.
On 26 March 2011 Associated British Foods, and its parent company Wittington Investments
Wittington Investments
Wittington Investments Limited is an unquoted British investment company. It is 79.2% owned by the Garfield Weston Foundation, which is one of the UK's largest grant-making trusts, and 20.8% owned by members of the Weston family....
, were targeted over tax avoidance
Tax avoidance and tax evasion
Tax noncompliance describes a range of activities that are unfavorable to a state's tax system. These include tax avoidance, which refers to reducing taxes by legal means, and tax evasion which refers to the criminal non-payment of tax liabilities....
by UK Uncut
UK Uncut
UK Uncut is a United Kingdom-based protest group established in October 2010 to protest against tax avoidance in the UK and to raise awareness about cuts to public services. Various sources have described the group as left-wing in its political orientation...
during anti-cuts protests
2011 anti-cuts protest in London
The 2011 anti-cuts protest in London, also known as the March for the Alternative, was a demonstration held in central London on 26 March 2011...
. The tax avoidance scheme involved moving capital between ABF/Primark and the affiliated Luxembourg entity ABF European Holdings & Co SNC by means of interest-free loans, avoiding tax of about £9.7 million per year. The protest took the form of a mass sit-in
Sit-in
A sit-in or sit-down is a form of protest that involves occupying seats or sitting down on the floor of an establishment.-Process:In a sit-in, protesters remain until they are evicted, usually by force, or arrested, or until their requests have been met...
in Fortnum & Mason
Fortnum & Mason
Fortnum & Mason, often shortened to just "Fortnum's" is a department store, situated in central London, with two other branches in Japan. Its headquarters is located at 181 Piccadilly, where it was established in 1707 by William Fortnum and Hugh Mason...
.
Brands
- Argo cornstarch
- AllinsonAllinsonAllinson is a brand of bread and of flour made by Allied Bakeries being owned by Associated British Foods-History:Dr Thomas Allinson was born in the Hulme district of Manchester in 1858. He trained as a doctor in Edinburgh, graduating in 1879. He founded the first Allinson mill in 1892 in Bethnal...
- Capullo
- Fleischmann's
- Karo (syrup)
- Kingsmill bread
- Mazola
- OvaltineOvaltineOvaltine is a brand of milk flavoring product made with malt extract , sugar , cocoa, and whey...
(except in the United States, where NestléNestléNestlé S.A. is the world's largest food and nutrition company. Founded and headquartered in Vevey, Switzerland, Nestlé originated in a 1905 merger of the Anglo-Swiss Milk Company, established in 1867 by brothers George Page and Charles Page, and Farine Lactée Henri Nestlé, founded in 1866 by Henri...
owns the brand) - Patak'sPatak'sPatak's is a brand of curry pastes and spices now owned by Associated British Foods.The company supplies 75% of British curry houses with sauces and mixed spices, and sells ready meals to all the major UK supermarkets and other major retailers throughout Europe and North America...
- RyvitaRyvitaRyvita is a rye-based crispbread which up until 2009 was manufactured by The Ryvita Company. The company was founded in Birmingham, England, in 1930 and is today a subsidiary of Associated British Foods. Ryvita crackers are popular with dieters...
- Silver Spoon
- Sunblest
- Spice IslandsSpice Islands (brand)Spice Islands is an American brand name of spices and herbs that began in 1941. The spices are manufactured in Ankeny, Iowa, the largest spice manufacturing facility in the world. The brand is owned by ACH Food Companies, Inc., which is an indirect wholly owned subsidiary of Associated British Foods....
- Tone's Spices
- TwiningsTwiningsTwinings is a marketer of tea based in Andover, Hampshire, England.- History :The founder of Twinings, Thomas Twining, opened the first known tea room, at 216 Strand, London, in 1706, which is still operating today. The firm's logo, created in 1787, is one of the world's oldest in continuous use...
Subsidiaries
- AB Agri Ltd
- Abitec Corporation
- Abitec Ltd
- ACH Food Companies (AC HUMKO from 1995 to 2000), an American subsidiary of Associated British Foods, previously part of Kraft Foods from 1952 to 1995.
- Allied Mills
- British Sugar
- Frontier (50% joint venture with Cargill)
- George Weston FoodsGeorge Weston FoodsGeorge Weston Foods is one of the largest consumer products companies in Australia. It is a wholly owned subsidiary of Associated British Foods Plc. Its brands include Tip Top and Top Taste....
- G Costa: sauces and ethnic (non-UK) brands
- Illovo SugarIllovo SugarIllovo Sugar Limited is a leading sugar producer. The company is based in Mount Edgecombe, near Durban, South Africa.It is a subsidiary of Associated British Foods Plc., which holds 51% of the issued share capital which it purchased for more than £400m in 2006. Illovo Sugar is listed on the JSE;...
- PrimarkPrimarkPrimark is a clothing retailer, operating over 223 stores in Ireland , the United Kingdom, the Netherlands, Germany, Spain, Portugal and Belgium...
– known as Penneys in the Republic of IrelandRepublic of IrelandIreland , described as the Republic of Ireland , is a sovereign state in Europe occupying approximately five-sixths of the island of the same name. Its capital is Dublin. Ireland, which had a population of 4.58 million in 2011, is a constitutional republic governed as a parliamentary democracy,... - Westmill Foods
Controlling shareholder
Some 54.5% of ABF is owned by Wittington InvestmentsWittington Investments
Wittington Investments Limited is an unquoted British investment company. It is 79.2% owned by the Garfield Weston Foundation, which is one of the UK's largest grant-making trusts, and 20.8% owned by members of the Weston family....
. 79.2% of the share capital of Wittington Investments is owned by the Garfield Weston Foundation
Garfield Weston Foundation
The Garfield Weston Foundation is a grant-giving charity, based in the United Kingdom.It was formed by Canadian businessman W. Garfield Weston , who during his lifetime contributed to numerous humanitarian causes both personally and through his companies. His philanthropic works continue through...
, which is one of the UK largest grant-making charitable trusts, and the remainder is owned by members of the Weston family. Wittington Investments also owns Fortnum & Mason
Fortnum & Mason
Fortnum & Mason, often shortened to just "Fortnum's" is a department store, situated in central London, with two other branches in Japan. Its headquarters is located at 181 Piccadilly, where it was established in 1707 by William Fortnum and Hugh Mason...
and Heal & Son. George G. Weston became chief executive of ABF on 1 April 2005, and Galen Weston, the chief executive of George Weston Ltd., is a non-executive director
Non-executive director
A non-executive director or outside director is a member of the board of directors of a company who does not form part of the executive management team. He or she is not an employee of the company or affiliated with it in any other way...
. Garth Weston is Regional President of AB Mauri.