Associated British Foods (ABF) has announced the merger of its Ryvita business with Jordans to achieve high single digit growth of both the brands. ABF is one of the biggest food and retail international groups, whereas Jordans is the renowned manufacturer of breakfast cereals and cereal bars.
ABF’s finance director John Bason is confident that merger would boost Jordans’ sales internationally and all the sales channels for both brands will reap the benefit. He pointed out that Jordans stands the highest growth potential in Europe and North America.
ABF stake in the business will be 62 per cent. It had already acquired 20 per cent stake in Jordan last September. Mr. Bason is forecasting combined sales of £150m from financial year up to September 2009. Ryvita brand came into existence 80 years ago, whereas Jordans’ cereal business was started by Bill and David Jordan in 1972. The Jordan family would continue its association with the business. ABF would not close any of the manufacturing plants, but could cut down office staff in the administration.
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