Kingsmill maker Associated British Foods (ABF) is exploring a deal for its Allied Bakeries business. The move could bring together some of the UK’s biggest bread brands – Kingsmill and Hovis, according to a Reuters report.

Allied Bakeries recently lost a contract for Hovis distribution in Tesco supermarkets.

ABF confirmed ongoing negotiations were exploring a sale of Allied Bakeries to the owner of Hovis, Endless.“Allied Bakeries continues to face 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,” the Guardian quotes ABF.

The deal would put the merged bread brands ahead of Warburtons, as their current combined sales in 2023 were GBP 878 million, while Warburtons reported GBP 711 million (The Guardian).

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