It has been announced that Associated British Foods has finalised the acquisition of flour brand Elephant Atta from Premier Foods for £34 million, in an attempt to increase its market share in the ethnic food sector.
Premier Foods has had a change in strategy and focus itself over recent months as it continues to struggle against the economic crisis, so were more than willing to offload the brand from its portfolio, for the right price. It is thought that the company will now focus on its eight remaining key brands, including the likes of Sharwoods and Hovis to turn around the business’s fortunes.
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Elephant Atta celebrates its 50thbirthday this year, and specialises in making chapattis and unleavened flat bread. The deal was completed via ABF’s subsidiary Westmill Foods which is already a leading producer of ethnic food items within Britain, catering both for retailers and wholesalers, as well as ethnic restaurants including the classic Chinese and Indian chains.
George Weston, Chief Executive of Associated British Foods spoke of the deal: "Elephant Atta is the UK's leading ethnic flour brand and will complement Westmill's other leading ethnic brands including Tolly Boy rice, Rajah spices, Lucky Boat noodles and Patak's pastes and sauces."
Until regulatory approval is granted, Premier Foods will continue to manufacture and package the products, but the brands will officially be managed from Westmill Foods with immediate effect.