AB Foods to separate from Primark

Leadership will also split, with Primark continuing under its own management while AB Foods focuses on its core food operations

AB Foods to split Primark from food arm by 2027, aiming to unlock value and sharpen focus across both divisions

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Read More: AB Foods Primark Ryvita

Associated British Foods (AB Foods) has recently confirmed plans to separate its Primark retail business from its wider food operations, marking a major strategic shift for the UK-based group, according to RTÉ.

The demerger, expected to complete by the end of 2027, will create two standalone businesses, with Primark operating independently from AB Foods’ grocery, sugar and ingredients divisions.

Market opportunities

The move follows a strategic review aimed at improving long-term growth and allowing each division to focus more clearly on its own market opportunities.

Primark, which trades as Penneys in Ireland, has grown into a global fashion retailer with hundreds of stores across multiple markets and annual revenues of around £9.5bn.

Meanwhile, AB Foods’ grocery portfolio includes well-known brands such as Twinings and Ryvita, alongside significant operations in sugar and agriculture.

Under the proposed structure, shareholders will retain stakes in both businesses, which are expected to be separately listed.

Leadership will also split, with Primark continuing under its own management while AB Foods focuses on its core food operations.

The rationale behind the move is to give both entities greater strategic clarity and allow investors to better assess their individual performance and growth potential.

Analysts suggest the separation could unlock value that has been constrained within the combined group structure.

However, the decision comes against a challenging backdrop, with AB Foods reporting weaker profits and softer trading in parts of its business, including sugar and grocery.

Despite these pressures, the group believes the split will position both Primark and its food arm for stronger long-term performance, enabling each to pursue more focused strategies in increasingly competitive markets.

Read more: AB Foods considers separating Penneys division

© 2026, ShelfLife by Ryan Brennan

Read More: AB Foods Primark Ryvita

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