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Tate & Lyle facts for kids
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| Public limited company | |
| Traded as |
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| Industry | Food processing |
| Founded | Merger of Henry Tate & Sons (established 1859) and Abram Lyle & Sons (established 1887) in 1921 |
| Headquarters | London, England, UK |
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Key people
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| Products |
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| Revenue |  £2.807 billion (2021) |
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Operating income
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£287 million (2021) |
 £253 million (2021) |
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Number of employees
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4,400 (2021) |
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 2010. It specialises 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.
Contents
History
Sugar refining
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Former Tate & Lyle PLC refinery along the Thames in Silvertown, London
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 (a direct descendant of Henry 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 (increased to 63% in 1988) 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 (a substitute for nylon). 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 (PLA), another bio-plastic. In October 2007, five European starch and alcohol plants, previously part of the European starch division known 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 2006, Lyle’s Golden Syrup tin was awarded a Guinness World Record as the world’s oldest branding.
Tate & Lyle head office in Kingsway, London
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 copycat versions of its Splenda product.
In 2021, Tate & Lyle ranked fourth in the Modified Starch category of FoodTalks' Global Food Thickener Companies list.
In May 2022, it was announced that Tate & Lyle had acquired Nutriati, an ingredient technology company developing and producing chickpea protein and flour.
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 (owned by sugar barons the Fanjul brothers) 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.
Recent history
In 2012, HarperCollins published The Sugar Girls, a work of narrative non-fiction based on the true stories of women who worked at Tate & Lyle's two factories in the East End of London from the 1940s to the 1960s.
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.
Tate & Lyle has developed a method to commercially produce the natural sweetener allulose. It emerged in August 2019 that the company was seeking 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.
In July 2021, Tate & Lyle announced it was spinning off Tate & Lyle Primary Products (formerly, A. E. Staley) into a new company to be known as Primary Products Ingredients Americas LLC (Primient). Tate & Lyle will maintain 50% ownership of Primient and the remaining 50% will be owned by KPS Capital Partners (including board and management control). The transaction was completed in April 2022.
Operations
The company is organised as follows:
- Sweeteners, such as Splenda (sucralose), crystalline fructose, and allulose
- Texturants, such as starch and gums
- Wellness ingredients, such as dietary fibres