Tate & Lyle PLC is a British-headquartered, global supplier of food and beverage ingredients to industrial markets. It was originally a sugar refining business, but from the 1970s it began to diversify, eventually divesting its sugar business in 2012. It specializes in turning raw materials such as corn and tapioca into ingredients that add taste, texture, and nutrients to food and beverages. It is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index. In 2016, Lyle’s Golden Syrup tin was awarded a Guinness World Record as the world’s oldest branding. Nick Hampton became CEO on 1 April 2018, replacing Javed Ahmed, who stepped down from this role and from the board, and retired from the company.
History
Sugar refining
The company was formed in 1921 from a merger of two rival sugar refiners: Henry Tate & Sons and Abram Lyle & Sons. Henry Tate established his business in 1859 in Liverpool, later expanding to Silvertown in East London. He used his industrial fortune to found the Tate Institute in Silvertown in 1887 and the Tate Gallery in Pimlico, Central London in 1897. He endowed the gallery with his own collection of Pre-Raphaelite paintings. Abram Lyle, a cooper and shipowner, acquired an interest in a sugar refinery in 1865 in Greenock and then at Plaistow Wharf, West Silvertown, London. The two companies had large factories nearby each other – Henry Tate in Silvertown and Abram Lyle at Plaistow Wharf – so prompting the merger. Prior to the merger, which occurred after they had died, the two men were bitter business rivals, although they had never met in person. In 1949, the company introduced its "Mr Cube" brand, as part of a marketing campaign to help it fight a proposed nationalisation by the Labour government.
Diversification
From 1973, British membership of the European Economic Community threatened Tate & Lyle's core business, with quotas imposed from Brussels favouring domestic sugar beet producers over imported cane refiners such as Tate & Lyle. As a result, under the leadership of Saxon Tate, the company began to diversify into related fields of commodity trading, transport and engineering, and in 1976, it acquired competing cane sugar refiner Manbré & Garton. In 1976, the Company acquired a 33% stake in Amylum, a European starch-based manufacturing business. The Liverpool sugar plant closed in 1981 and the Greenock plant closed in 1997. In 1988, Tate & Lyle acquired a 90% stake in A. E. Staley, a US corn processing business. In 1998 it brought Haarmann & Reimer, a citric acid producer. In 2000 it acquired the remaining minorities of Amylum and A. E. Staley. In 2004, it established a joint venture with DuPont to manufacture a renewable 1,3-Propanediol that can be used to make Sorona. This was its first major foray into bio-materials. In 2005, DuPont Tate & Lyle BioProducts was created as a joint venture between DuPont and Tate & Lyle. In 2006, it acquired Hycail, a small Dutch business, giving the company intellectual property and a pilot plant to manufacture Polylactic acid, another bio-plastic. In October 2007, five European starch and alcohol plants, previously part of the European starch division knowns as Amylum group, were sold to Syral, a subsidiary of French sugar company Tereos. Syral closed its Greenwich Peninsula plant in London in September 2009, and it was subsequently demolished. In February 2008, it was announced that Tate & Lyle granulated white cane sugar would be accredited as a Fairtrade product, with all the company's other retail products to follow in 2009. In April 2009, the United States International Trade Commission affirmed a ruling that Chinese manufacturers can make versions of its Splenda product. Tate & Lyle developed a method to commercially produce the natural sweetenerallulose. It seeks to take advantage of the 2019 permission from the U.S. Food and Drug Administration to not list the product in total sugar or as an added sugar in commercial food ingredients.
Disposal of sugar refining business
In July 2010 the company announced the sale of its sugar refining business, including rights to use the Tate & Lyle brand name and Lyle's Golden Syrup, to American Sugar Refining for £211 million. The sale included the Plaistow Wharf and Silvertown plants. The new owners pledged that there would be no job losses as a result of the transaction.
