AUSTRALIA—Associated British Foods (ABF), a multinational conglomerate, has acquired The Artisanal Group, Australia’s leading manufacturer and wholesaler of high-quality baked goods.
The deal, revealed in a trading update for the second half of ABF’s financial year, expands the company’s presence in the Australian bakery market.
The Artisanal Group operates under three brands: Noisette, Brasserie Bread, and Jaune. It produces various products, including breads, croissants, pastries, and cakes.
The company primarily serves cafes, restaurants, and hotels in Australia. ABF stated, “The Artisanal Group will continue to be led and run by the existing founders, management team, and employees.”
The acquisition, completed during the period, comes as ABF’s “Australia and New Zealand‐focused brands have remained resilient in a challenging consumer environment.”
The company’s grocery business, which includes operations in the UK, continental Europe, and North America, “continued to perform well” during the half, with an expected sales growth of around 3%.
ABF’s Australian portfolio already includes the well-known bread brand Tip Top, meat company Don, and hummus brand Yumi’s.
The addition of The Artisanal Group strengthens the company’s position in the premium bakery segment and aligns with its strategy of expanding its presence in key markets.
George Weston, the Chief Executive of ABF, stated that the company’s grocery and ingredients division “have grown well in the second half, in line with our expectations, and we will continue to build on this momentum.”
However, profits from the sugar division remain ahead of last year but below previous expectations due to a decline in European sugar prices.
The acquisition of The Artisanal Group is part of ABF’s ongoing efforts to diversify its business and capitalize on growth opportunities in the food and beverage sector.
The company’s diverse portfolio includes brands such as Twinings tea, Ovaltine malted beverages, Patak’s Indian food, and Primark clothing retail chain.
ABF is scheduled to release its full-year financial results in November, providing further details on the impact of the acquisition and the company’s overall performance
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