The move follows months of negotiations after it had been confirmed that ABF, owner of Allied Bakeries, were in discussions with Hovis owners, Endless LLP.

Subject to regulatory review by the Competition and Markets Authority (CMA), the proposed acquisition has been hailed as a “significant step towards creating a more sustainable and efficient bakery operation in the UK”.

It had previously been stated in the interim results that ABF had been “evaluating a range of strategic options for Allied Bakeries”. Profitability at Allied Bakeries has been increasingly challenged in recent years by a decline in demand for pre-sliced, packaged bread and a loss of scale in Allied Bakeries’ nationwide distribution network serving the major retailers with daily delivery of bread and bakery goods.

In a statement, ABF said the acquisition will combine the production and distribution activities of the two businesses, driving significant costs synergies and efficiencies, to create a profitable UK bread business that is sustainable over the long-term.

“The combined business will be better placed to compete effectively and to establish a stable platform for product innovation in the segments of the UK bakery category that are growing as a result of changing consumer tastes and needs,” said the statement.

“This will include improvement in existing products and expansion into new product ranges.”

George Weston, Chief Executive of ABF said: “Supporting the Hovis and Kingsmill brands with well-invested and efficient operations will also enable innovation and growth. This solution will create value for shareholders, provide greater choice for consumers and increase efficiencies for customers.”

Aidan Robson, Managing Partner of Endless LLP added: “We are proud of the journey we’ve shared with Hovis to date, supporting this historic brand in a highly competitive and challenging market.

“The transaction with ABF represents an opportunity to create a platform for long-term sustainability in the bakery sector for the benefit of retailers and consumers.

“While we work towards achieving CMA clearance of the transaction, our focus remains on Hovis to continue delivering exceptional products and services to its customers.”

It is anticipated that the CMA approval may take some time, and until regulatory clearance is granted, Hovis Group Ltd and Allied Bakeries will continue to operate as separate entities.

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The Food Standards Agency in Northern Ireland and College of Agriculture, Food and Rural Enterprise (CAFRE) have launched the guidance to help businesses produce pancakes which are lower in sugar and salt.

Forming part of the FSA’s Making Food Better programme, the move aims to contribute to a healthier food environment.

The focus on pancakes comes due to their popularity in Northern Ireland, (Mintel 2022, Bread and Baked Goods, Ireland), with the goal of reformulating this category and potentially reducing the intake of calories sugar and salt in the diet of consumers across the region.

“Through our Making Food Better programme, we have been working with the food industry to create healthier options, supporting businesses to reduce calories, saturated fat, sugar and salt in the food they produce, sell or serve,” said Daniel Sporule, FSA Senior Nutrition Policy Advisor, NI.

“Last year, in partnership with CAFRE, we launched guidance on ice cream reformulation which was very well received. Businesses embraced the opportunity to alter their recipes which enhanced consumer choice and promoted positive dietary changes.”

Having initially carrying out a sampling programme of pre-packed pancakes sold in retail outlets here, they determined portion sizes and nutritional composition.

With two pancake offerings available in terms of size: a standard pancake at 41g and a large pancake at 84g, the average sugar content for the pancakes sampled was 15.04g of sugar per 100g; while consumer analysis indicated that two 41g pancakes was considered to be a portion.

“We then considered the technical role of the ingredients, flour, raising agents, buttermilk, fats, salt, sugar and egg,” said Dr Emanuele Armaforte, Senior Technologist at CAFRE.

“Using a control recipe, we experimented with modifications and substituted ingredients to mimic the functionality of the original ingredients. We successfully created a new recipe with reduced sugar and salt content and taste tested it with consumers to make sure it met expectations – it was a winner!”

Reformulation support for food business owners is available via INVEST NI and CAFRE simply contact www.cafre.ac.uk/business-support/food/

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In a statement in response to media speculation, ABF said there is “no certainty that a transaction will be concluded nor as to the terms of such as a transaction”.

It is not clear which company is purchasing the other.

As stated in their Interim Results Announcement on 29^th April this year, Allied Bakeries continues to face what it calls a “very challenging market”.

“We are evaluating strategic options for Allied Bakeries against this backdrop and we remain committed to increasing long-term shareholder value,” added the statement.

“A further announcement will be made as and when appropriate.”

In their Interim Results Announcement, released on 29^th April, ABF’s retail sales grew 1% to £4.5 billion, with growth in Europe and the US, while the retail environment in the UK and Ireland was “challenging”.

Good sales growth across most of the brands in grocery was offset by lower sales in US oils and Allied Bakeries, as expected. Its group performance saw revenue in line with the prior year, with growth in retail and ingredients offset by a decline in sugar.

“In Grocery, we remain focused on driving sales of our leading international and regionally-focused brands, underpinned by effective marketing investment and strong commercial execution,” read the report.

“We continue to expect overall performance this year to reflect the normalisation of profitability in our US-focused businesses, and an operating loss in Allied Bakeries.

“Allied Bakeries continues to face a very challenging market. We are evaluating strategic options for Allied Bakeries against this backdrop and we expect to provide an update in H2 2025.”

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BAKO CEO Mike Tully described James as the “driving force” behind the company, which BAKO acquired in April 2024.

Founded in 1976, the business was established in the production of fresh ‘ready to use’ fruit pie fillings, developing over the years to incorporate fruit toppings, cheesecake toppings, fruit sauces and sweet mince.

The company also moved into the dried manufacturing process, incorporating the production of lemon pie fillings, coconut macaroons, and custards, as well as a comprehensive range of neutral, flavoured and vegetarian jelly crystals.

The company moved into wholesale trading in the early 1970s, becoming the Distributor for CSM, while in 2010 they moved into the Jam and Spread manufacturing market.

In April 2024, BAKO Group announced the full acquisition of James SA Finlay Limited, trading as Finlay’s Foods, saying the company has established a strong presence and loyal customer base, which they intend to build upon and expand.

At the time of the acquisition, BAKO Group said Finlay’s Food’s expertise in bakery products “complements our current portfolio” and opens up “a wide range of cross-selling opportunities”.

Mike Tully said James was a “force of nature” whose drive and vision were only matched by his dedication to the team.

“We are proud that Finlay’s is part of the BAKO Group of companies and will continue to run and grow the business in a way that is a tribute to one of the bakery trade’s true gentlemen,” said Mike Tully.

“James will be missed by all of us, and specifically by his family to whom we send our deepest condolences.”

A leading name in the Irish bakery trade, it employs approximately 60 people at its purpose-built site in Maghaberry, which serves a customer base that extends throughout Northern Ireland into the Republic of Ireland, as well as the wider UK, Europe and Asia.

The post Passing of Finlay’s Foods founder, James Finlay announced first appeared on Neighbourhood Retailer.

This includes 1,605 Omega baskets and 1,315 dollies, underscoring the persistent challenges of equipment misuse in the bakery supply chain and the cooperative’s determination to address them head-on to safeguard essential supply chain assets.

Since expanding its operations in Northern Ireland, Bakers Basco’s team has also investigated 32 leads, leading to the recovery of misused equipment and issuing various charges against offenders. From retailers improperly discarding Omega wheels to local markets and online platforms using the equipment unlawfully, the scale of misuse has reached alarming levels, prompting an intensified recovery operation.

Among the more concerning findings, Bakers Basco uncovered incidents of Omega wheels being discarded in skips, equipment used for market displays in Craigavon, and unauthorised sales of Omega baskets on platforms like Facebook Marketplace. These issues highlight the persistent challenges faced by Bakers Basco in its mission to protect the circular economy for the UK bakery industry.

“Over 2,900 pieces of equipment recovered in just one region demonstrates the magnitude of the problem we’re tackling,” said Stacey Brown, National Investigations Manager for Bakers Basco.

“Every basket or dolly misused disrupts the supply chain, burdens bakeries financially and detracts from the sustainability of the circular economy we’re striving to protect. We’re leaving no stone unturned to educate, investigate, and, when necessary, pursue legal action to ensure compliance.”

Legal action remains a last resort, typically preceded by efforts to recover equipment through cooperation and education. Bakers Basco continues to work closely with Worthingtons Law to address ongoing legal cases in the region, with one case already successfully settled this year.

“From shops tossing Omega wheels into skips to unauthorised resales online, the scale of misuse is staggering,” added Brown.

“We’re committed to taking every step necessary – which includes educational briefings with bakers and drivers – to ensure the equipment stays in the right hands and continues to serve its purpose within the circular economy.”

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