Argyll Foods
Encyclopedia
Argyll Foods plc was a large supermarket
operator in the United Kingdom
. In 1987 it acquired Safeway Inc.'s UK subsidiary
and in 1996 it changed its name to Safeway plc.
, a former Fine Fare
Chief Executive, Alistair Grant
, a marketing
specialist and David Webster, a merchant bank
er.
The founders acquired two food businesses, Morgan Edwards, a business owning the Supervalu chain of foodstores, and Louis C. Edwards, a meat business in Manchester
, integrated them and then, in 1980, adopted the name Argyll Foods after Gulliver's place of birth.
In 1981 the company bought Oriel Foods, a food manufacturing and wholesaling business which the founders had briefly owned previously in the 1970s before they sold it to RCA Corporation and which owned Lo-Cost Discount Stores.
Also in 1981 the company made a £91m hostile bid for Linfood Holdings
, a wholesaling and retailing group which was substantially bigger than itself and owned Gateway Foodmarkets: however the bid was referred to the Monopolies Commission and did not proceed.
from Cavenham Foods
in 1982: this brought with it the Presto
, Liptons, Galbraith and Templeton chains.
In 1984 Argyll acquired the Thornaby-based Amos Hinton plc
which operated 55 supermarkets under the Hintons name in the North East of England, Cumbria
and Yorkshire
.
In 1985 Presto became Argyll's principal name for all larger stores as well as smaller stores in the North of England and Scotland. The Lo-Cost banner was used in the rest of England and in Wales on the smaller stores: a new Presto logo was launched and plans made for new Presto regional distribution centres in Bristol
, Wakefield
, Bathgate
and Welwyn Garden City
.
In 1986 Argyll hoped to buy Distillers plc but were hindered by the infamous Guinness share-trading fraud
.
merged in 1987 when Safeway Inc.
's United Kingdom subsidiary, Safeway Food Stores as it was then known, was put up for sale. Argyll eventually secured it for the sum of £681m, with £600m raised through a rights issue
that was three times over-subscribed. The merger of Argyll and Safeway was hailed by commentators as one of the most successfully integrated retail combinations in the UK, bringing together Argyll's experienced management team with a strong but somewhat under-developed retail brand. The acquisition brought with it 133 UK stores of Safeway, Inc. the first of which had been opened in 1962.
In July 1996 Argyll conducted a share buy-back and then renamed itself Safeway plc.
Supermarket
A supermarket, a form of grocery store, is a self-service store offering a wide variety of food and household merchandise, organized into departments...
operator in the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
. In 1987 it acquired Safeway Inc.'s UK subsidiary
Safeway (UK)
Safeway was a chain of supermarkets and convenience stores in the United Kingdom. It started as a subsidiary of the American Safeway Inc., before being sold off in 1987....
and in 1996 it changed its name to Safeway plc.
Early years
The company was founded as James Gulliver Associates in 1977 by James GulliverJames Gerald Gulliver
James Gerald Gulliver CVO was the founder of Argyll Foods, one of the United Kingdom's largest retail businesses.-Career:...
, a former Fine Fare
Fine Fare
Fine Fare was the name of a chain of supermarkets in the United Kingdom. It was famous for its Yellow Pack budget own-label range.-History:The company started as a single supermarket in Brighton in 1956. It was one of a series of convenience store chains established in the 1950s, the others being...
Chief Executive, Alistair Grant
Matthew Alistair Grant
Sir Alistair Grant FRSE was a British businessman.-Career:Alistair Grant was educated at Woodhouse Grove School in Yorkshire...
, a marketing
Marketing
Marketing is the process used to determine what products or services may be of interest to customers, and the strategy to use in sales, communications and business development. It generates the strategy that underlies sales techniques, business communication, and business developments...
specialist and David Webster, a merchant bank
Merchant bank
A merchant bank is a financial institution which provides capital to companies in the form of share ownership instead of loans. A merchant bank also provides advisory on corporate matters to the firms they lend to....
er.
The founders acquired two food businesses, Morgan Edwards, a business owning the Supervalu chain of foodstores, and Louis C. Edwards, a meat business in Manchester
Manchester
Manchester is a city and metropolitan borough in Greater Manchester, England. According to the Office for National Statistics, the 2010 mid-year population estimate for Manchester was 498,800. Manchester lies within one of the UK's largest metropolitan areas, the metropolitan county of Greater...
, integrated them and then, in 1980, adopted the name Argyll Foods after Gulliver's place of birth.
In 1981 the company bought Oriel Foods, a food manufacturing and wholesaling business which the founders had briefly owned previously in the 1970s before they sold it to RCA Corporation and which owned Lo-Cost Discount Stores.
Also in 1981 the company made a £91m hostile bid for Linfood Holdings
Somerfield
Somerfield was a chain of small to medium sized supermarkets operating in the United Kingdom. The company was taken over by the Co-operative Group on 2 March 2009 in a £1.57 billion deal, creating the UK's fifth largest food retailer. The name is currently being phased out and replaced by the...
, a wholesaling and retailing group which was substantially bigger than itself and owned Gateway Foodmarkets: however the bid was referred to the Monopolies Commission and did not proceed.
Presto and other acquisitions
The company went on to buy Allied SuppliersHome and Colonial Stores
Home & Colonial Stores was once one of the United Kingdom's largest retail chains. Its formation of a vast chain of retail stores in the late 1920s is seen as the first step in the development of a UK food retail market dominated by a small number of food multiples.-History:The business was founded...
from Cavenham Foods
Cavenham Foods
-History:The Company was founded by Sir James Goldsmith in 1965 when he bought up a series of bakeries.In 1971 Cavenham acquired the Bovril Company but then sold most of its diaries and South American operations to finance further take-overs...
in 1982: this brought with it the Presto
Presto (UK Supermarket)
Presto Foodmarkets was a chain of supermarkets and convenience stores in Great Britain. The brand finally disappeared during 1998.-Presto Foodmarkets:...
, Liptons, Galbraith and Templeton chains.
In 1984 Argyll acquired the Thornaby-based Amos Hinton plc
Hintons
Hintons plc was a small supermarket chain from the North of England, bought out in a takeover by Argyll Foods in 1984.-History:The Company was founded by Amos Hinton in Middlesbrough in 1871 when he bought out John Birks' shop in South Street. By 1919 the business had expanded such that it had...
which operated 55 supermarkets under the Hintons name in the North East of England, Cumbria
Cumbria
Cumbria , is a non-metropolitan county in North West England. The county and Cumbria County Council, its local authority, came into existence in 1974 after the passage of the Local Government Act 1972. Cumbria's largest settlement and county town is Carlisle. It consists of six districts, and in...
and Yorkshire
Yorkshire
Yorkshire is a historic county of northern England and the largest in the United Kingdom. Because of its great size in comparison to other English counties, functions have been increasingly undertaken over time by its subdivisions, which have also been subject to periodic reform...
.
In 1985 Presto became Argyll's principal name for all larger stores as well as smaller stores in the North of England and Scotland. The Lo-Cost banner was used in the rest of England and in Wales on the smaller stores: a new Presto logo was launched and plans made for new Presto regional distribution centres in Bristol
Bristol
Bristol is a city, unitary authority area and ceremonial county in South West England, with an estimated population of 433,100 for the unitary authority in 2009, and a surrounding Larger Urban Zone with an estimated 1,070,000 residents in 2007...
, Wakefield
Wakefield
Wakefield is the main settlement and administrative centre of the City of Wakefield, a metropolitan district of West Yorkshire, England. Located by the River Calder on the eastern edge of the Pennines, the urban area is and had a population of 76,886 in 2001....
, Bathgate
Bathgate
Bathgate is a town in West Lothian, Scotland, on the M8 motorway west of Livingston. Nearby towns are Blackburn, Armadale, Whitburn, Livingston, and Linlithgow. Edinburgh Airport is away...
and Welwyn Garden City
Welwyn Garden City
-Economy:Ever since its inception as garden city, Welwyn Garden City has attracted a strong commercial base with several designated employment areas. Among the companies trading in the town are:*Air Link Systems*Baxter*British Lead Mills*Carl Zeiss...
.
In 1986 Argyll hoped to buy Distillers plc but were hindered by the infamous Guinness share-trading fraud
Guinness share-trading fraud
The Guinness share-trading fraud was a famous British business scandal of the 1980s. It involved an attempt to manipulate the stock market on a massive scale to inflate the price of Guinness shares and thereby assist a £2.7 billion take-over bid for the Scottish drinks company Distillers...
.
Safeway acquisition
Argyll and Safeway (UK)Safeway (UK)
Safeway was a chain of supermarkets and convenience stores in the United Kingdom. It started as a subsidiary of the American Safeway Inc., before being sold off in 1987....
merged in 1987 when Safeway Inc.
Safeway Inc.
Safeway Inc. , a Fortune 500 company, is North America's second largest supermarket chain after The Kroger Co., with, as of December 2010, 1,694 stores located throughout the western and central United States and western Canada. It also operates some stores in the Mid-Atlantic region of the Eastern...
's United Kingdom subsidiary, Safeway Food Stores as it was then known, was put up for sale. Argyll eventually secured it for the sum of £681m, with £600m raised through a rights issue
Rights issue
A rights issue is an issue of additional shares by a company to raise capital under a seasoned equity offering. The rights issue is a special form of shelf offering or shelf registration. With the issued rights, existing shareholders have the privilege to buy a specified number of new shares from...
that was three times over-subscribed. The merger of Argyll and Safeway was hailed by commentators as one of the most successfully integrated retail combinations in the UK, bringing together Argyll's experienced management team with a strong but somewhat under-developed retail brand. The acquisition brought with it 133 UK stores of Safeway, Inc. the first of which had been opened in 1962.
In July 1996 Argyll conducted a share buy-back and then renamed itself Safeway plc.