(qlmbusinessnews.com . Mon 18th Aug, 2025) London, UK —
ABF Plans to Revitalize Bread Market by Merging Kingsmill and Hovis
The proprietor of Kingsmill has announced a definitive agreement to acquire its competitor Hovis, in a strategic move aimed at forming the UK's largest bread company.
Associated British Foods (ABF), the conglomerate behind renowned brands such as Primark, Ryvita, and Twinings, unveiled plans to streamline operations to return the presently unprofitable entities to a profitable status.
The Unite union, representing the workforce at both Hovis and Kingsmill, has issued a stern warning that it will “firmly oppose any attempts to undermine job security, wages, or working conditions.”
Currently, Warburtons holds the top position in the UK bread market, and the proposed transaction is pending approval from the competition authorities before it can proceed.
Market analysis suggests the demand for staples like Kingsmill and Hovis bread has declined, as consumers increasingly favour specialty breads, including sourdough and ciabatta, which have captured a larger market share.
Moreover, a shift among UK consumers towards reducing carbohydrate intake in favour of protein-rich diets has seen traditional favourites like sandwiches and toast fall out of favour.
On Friday, ABF informed its stakeholders that it had secured an agreement to acquire the iconic Hovis brand from its private equity owner, Endless. The Reporters reports that the acquisition is valued at approximately £75 million.
The amalgamation of these businesses is predicted to improve market competitiveness, enabling the development of new products to align with evolving consumer preferences and demands.
Allied Bakeries, a division of ABF responsible for producing Kingsmill and Allinson's bread, had initially disclosed negotiations regarding a potential acquisition three months earlier.
Hovis, established in 1890, had previously been sold to Endless in 2020 by Premier Foods, the proprietor of the Mr Kipling brand.
ABF asserts that the forthcoming deal will yield “considerable cost synergies and efficiencies,” aiming to establish a durably profitable bread manufacturing venture.
George Weston, ABF's Chief Executive, remarked, “This endeavour will enhance shareholder value, broaden consumer choice and deliver greater efficiencies for our customers.”
Nonetheless, Sharon Graham, Unite's General Secretary, emphasized the imperative of job protection amidst the acquisition process, stating, “Whilst the transaction is yet to be finalized, it is crucial that both Hovis and Kingsmill assure job security.”
She further delineated Unite's commitment to ensuring comprehensive involvement in any decisions impacting its members.
The consummation of this acquisition is contingent upon the green light from the Competition and Markets Authority.
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