Headquartered in London, United Kingdom Associated British Foods is a British multinational food processing and retailing company.
Sales ($ Bn): 21.4
Profits ($ Bn): 1.3
Assets ($ Bn): 17
Market Value ($ Bn): 33.9
ABF is a diversified group with operations divided into five business segments: Sugar; Agriculture; Retail; Grocery; and Ingredients. Its ingredients business segment is the 2nd largest producer of sugar and baker’s yeast in the world. Its grocery division produces both branded and private label items for sale. Like Tesco it manages significant amount of last point delivery through its retail operations which has around 200 outlets across various European countries like UK, Portugal, France, Belgium, Germany, Ireland, Netherland etc. Its famous brands include Ovaltine, Twinings, Mozreal etc. Associated British foods was founded by W. Garfield Weston in 1935 initially as Food Investments Limited with purpose of selling agricultural products. In 1960 it changed its name to ABF. Later it grew acquisition and divestiture of several entities. Its major agricultural units of products like sugar, enzymes are subsidiaries operating independently and serving its in-house consumer division. Its majority stake is still controlled by a trust under the name of Garfield Weston. Unlike other FMCG companies Associated British foods has major interest in the supply side of raw materials with its agri-business especially sugar being among the world’s largest. This unique positioning of covering all channels of procuring to reaching customers gives associated british foods a unique advantage to compete in future. In 2014 it recorded revenue of $21.4 billion. Since present in retail it has huge investments in physical assets giving it a high market capitalization of $33.9 billion but this asset investments stops the cash on hand available for ABF and hence growth rate have lagged behind the other FMCG companies.