The cost of adding a spoonful of sugar to a cup of tea could go up sharply if a deal to purchase a UK food manufacturer goes ahead, a watchdog has warned. The Competition and Markets Authority has warned Tate & Lyle Sugars that their expansion plans could create a monopoly in the sector, with just two businesses controlling the supply of sugar across the country.
Originally a North West business based in Liverpool before its merger with London-based Lyle, Tate & Lyle has been an iconic British brand for over a century and among our most profitable businesses, being one of the founding companies of the FTSE100, then the FT-30. They have largely focused on cane sugars, but their plan to purchase Tereos UK would also make them the main name in selling sugar to customers.
Their plans would involve taking over the packaging and distribution centre owned by Tereos in Normanton, West Yorkshire. The competition watchdog is concerned that this could allow them to set the price at which supermarkets have to buy their sugar, which in turn would cost consumers more for the staple grocery.