News

April 29, 2008

Associated British Foods Looks For A Chinese Sweet-Tooth, Or Two

By Sally White

The constant sight of dire headlines about the current food crises is no bad thing for food manufacturers. They help soften up the customers for price rises. That seems to be the case anyhow for Associated British Foods (ABF), largest of the UK food companies exposed to agriculture. Price increases seem to be getting through, even if delayed.

ABF’s activities encompass tea, sugar, biofuel, meat, animal feeds, spices and bread. Staples with good solid brands in front of them are the company’s forte. These include Ovaltine, Twinings, Silver Spoon, Mazola, Ryvita, and Kingsmill.

ABF sources from some of the world’s most troubled food markets - the grain, spices, dairy and meat markets. Yet in interim figures released on the 22nd April, the company managed to increase sales by 15 per cent to £3.7 billion, while underlying profit was...