Associated British Foods' (ABF) acquisition of Dorset Cereals will have a positive impact for both parties, according to an analyst.
Speaking to FoodManufacture.co.uk, Shore Capital analyst Darren Shirley said that the investment and support provided by ABF will allow Dorset Cereals to flourish over the coming years. ABF purchased the muesli producer and exporter from Wellness Food on June 5th for a reported fee of £50 million. Mr Shirley believes that the move will be highly beneficial for both ABF and the newly controlled Dorset Cereals.
The analyst praised the work of ABF describing it as "one of the best owners in the industry" and cited the work it has previously done with similar companies such as Patak's and Jordans. The organisation has a track record of purchasing good businesses and then keeping them on the right track to ensure they continue to perform to a high standard.
ABF has already confirmed its intentions to keep Dorset Cereals' operations at its manufacturing base in Poundbury, Dorset. Mr Shirley noted that the organisation is aiming to keep Dorset Cereals at at the premium end of the breakfast cereal category and he pointed out that ABF has past experience of this after working with the Twinings tea brand.
Dorset Cereals is quickly becoming a household name with its range of muesli, granola and porridge products. They come in a range of different flavours while remaining healthy and sit well as part of balanced diet. The company has also expanded into the breakfast bar market, selling crunchy cereal bars in packs of three, making them ideal for packed lunches.
It is committed to using the best possible ingredients from its range of suppliers and is a supporter of The Woodland Trust. Since the company's formation it has paid for 16,000 trees to be planted across the UK in local areas reinforcing its long-standing partnership with the charity.