ESM - European Supermarket Magazine’s Post

Ahold Delhaize's Romanian Expansion Hits a Snag Ahold Delhaize's acquisition of Profi Rom Food has raised competition concerns in Romania. The deal, which would have made Ahold Delhaize the market leader, is now facing scrutiny from the Romanian competition authority. The potential impact on consumers and local competition is a key focus for regulators. Ahold Delhaize is working to address these concerns and secure approval for the acquisition. Let's discuss the implications of this deal for the Romanian retail landscape. https://lnkd.in/eHzKXfKm #AholdDelhaize #Profi #Romania #Retail #Competition #MergersAndAcquisitions

It will be fascinating to see how this one plays out… In 2021 Newlat Food S.p.A. Acquired Symington's Limited (a business we advised on the sell-side incidentally) Now three years later it makes a huge play with the acquisition of Princes Limited, firmly establishing itself as one of the biggest players in U.K. ambient food and Europe more generally. Congrats to all those involved in the deal. While the integration with Newlat and Symington’s should be fairly straightforward - Symingtons will likely be folded into Princes food division - the bigger question will be how it turns around performance at a business that is losing volume across categories and has some major operational and organisational issues that need addressing. Acquiring a business twice its size, Newlat simply doesn’t have the bench strength to parachute in managers to run the business and it’s too complex to run from Italy, so how it manages this transformation will be fascinating to see…

📢 Exciting News: Newlat Food Signs an Agreement to Acquire Princes Limited The management of Newlat Food is proud to announce to its shareholders and all the group’s stakeholders the intended acquisition of 100% of the share capital of Princes Limited, a historic UK-based food group. With the acquisition of Princes, Newlat Food will achieve a consolidated turnover of about € 3 billion and a strong position in new categories in the UK market. The Group will double its product categories’ offerings to its clients, becoming one of the main multi-brand and multi-product companies in the food sector in Europe, thanks to an increasingly exclusive industrial know-how and a production capacity of its 31 factories, unique in its kind. The closing of the Transaction, subject to the obtainment of antitrust clearances by the competent antitrust authorities and the consultation of both the European and the Dutch works council within the Princes group, is expected to take place by the end of July 2024. Angelo Mastrolia, Chairman of Newlat Food, expresses great satisfaction with the acquisition's success: "We are extremely proud to have agreed this transaction, marking a crucial milestone in our growth strategy. Princes Limited is a prestigious company, and integrating its operations with Newlat Food allows us to further solidify our position as a leader in the food sector. On closing of this acquisition, Newlat Food will become the largest food company listed on the Milan Stock Exchange, reinforcing its role as a key international player. The economic outlook of the new group gives us confidence in a future of sustainable growth, poised to create value for all stakeholders. The newly combined group will offer a broad range of high-quality products, addressing the needs of an increasingly demanding and diverse global market. This transaction enables us to enter new market segments and better serve our customers with an even more comprehensive, innovative, and unique product offering. The integration between Newlat Food and Princes Limited represents a significant opportunity for both companies to share expertise, resources, and synergies, contributing to a successful and mutually beneficial future. The mission of the new group remains to ensure continuous excellence and innovation, keeping customer satisfaction and sustainability at the forefront.” ⬇️For more detailed information, please refer to the attached press release or visit our corporate website at https://lnkd.in/dnPtpdXZ

Another week another sad article about more FMCG brands going into administration. One of the biggest challenges has always been that as you continue to grow the pressure on cash flow also grows especially if margin and profit are not growing at the same time. A lot of brands make the mistake of focusing on chasing revenue at the expense of profit. I have always been of the view that unless the extra revenue is adding to margin/profit then it's fruitless to chase that revenue. #fmcg #cpg https://lnkd.in/gxjyzEVA

Deal Between Tate & Lyle And Owner Of Whitworths At Risk After CMA Raises Competition Concerns 8th March 2024 The Competition and Markets Authority (CMA) has warned that it might block a tie-up between two major sugar brand makers if they cannot allay concerns that the deal could lead to higher prices for consumers. In November last year, T&L Sugars’ (TLS) announced that it planned purchase Tereos UK & Ireland’s (TUKI) business-to-consumer packed sugar business from its parent Tereos SCA. Financial details were not disclosed. TLS is a sugar producer which refines and distributes sugar and related products, including under the Tate and Lyle brand, to supermarkets and other businesses such as wholesalers, hotels, and cafes in the UK. TUKI’s B2C unit sources sugar from its Europe-based parent company and uses a facility in Normanton, West Yorkshire, as a packing and distribution site to sell packed sugar in the UK, including under the Whitworths brand. Following an initial Phase 1 investigation that launched at the beginning of January, the CMA revealed today that it had found the deal could lead to a “substantial lessening of competition”. TLS and Tereos now have five working days to offer solutions which fully resolve the regulator’s competition concerns. If not, the regulator will launch an in-depth second-phase investigation that could potentially lead to the deal being blocked. The CMA noted that the two companies only face competition from one other company, British Sugar, in the supply of packed sugar to a range of businesses, including supermarkets. The regulator stated that it was concerned that loss of competition from the deal could lead to supermarkets paying more for packed sugar, which would mean shoppers seeing higher prices on shelves. Sorcha O’Carroll, Senior Director of Mergers at the CMA, said: “The supply of sugar to grocery retailers in the UK is already highly concentrated. This deal would bring together two of the three players in the UK sugar sector, reducing competition and choice further for people and businesses. “It’s now up to TLS and Tereos to find a way to address our competition concerns to avoid the deal being referred to an in-depth Phase 2 investigation”. Namnews Implications: *. Deals between UK sugar companies have always been a sensitive issue. *. So CMA attention was inevitable in this case… *. Which means distraction for stakeholders. *. (and possible opportunities for rivals)

What a wise outcome for New Zealand owned business. Very much looking forward to stage 2 and the deep dive from the Commerce Commission into unlocking equitable trade pricing for smaller retailers so we can truely support local without the pinch of price being a factor for consumers. Supermarkets have had it too good for far too long in New Zealand at the cost of consumers. Keep us posted Pierre! #supportlocal #nzbusiness #newzealand #nz

The 𝐔𝐊 𝐅𝐨𝐨𝐝 & 𝐁𝐞𝐯𝐞𝐫𝐚𝐠𝐞 𝐌&𝐀 𝐥𝐚𝐧𝐝𝐬𝐜𝐚𝐩𝐞 𝐢𝐬 𝐰𝐢𝐭𝐧𝐞𝐬𝐬𝐢𝐧𝐠 𝐚 𝐫𝐞𝐬𝐮𝐫𝐠𝐞𝐧𝐜𝐞 𝐢𝐧 𝐝𝐞𝐚𝐥 𝐚𝐜𝐭𝐢𝐯𝐢𝐭𝐲, highlighted by the return of larger transactions Economic stability and strategic consolidations are driving growth, with sectors like grocery, beverages, and pet food attracting substantial investment interest 𝐊𝐞𝐲 𝐈𝐧𝐬𝐢𝐠𝐡𝐭𝐬: ✅ 𝐃𝐞𝐚𝐥 𝐒𝐮𝐫𝐠𝐞: In Q2 2024, there was a 32.4% increase in UK deal volume, totaling 49 transactions valued at around £6.0 billion. Notable acquisitions by Carlsberg, including Britvic and Marston’s, played a significant role ✅ 𝐅𝐨𝐜𝐮𝐬 𝐨𝐧 𝐒𝐦𝐚𝐥𝐥𝐞𝐫 𝐃𝐞𝐚𝐥𝐬: Over 61.2% of UK transactions were valued at £10 million or less, with fewer but impactful large-scale deals exceeding £50 million ✅ 𝐒𝐞𝐜𝐭𝐨𝐫 𝐀𝐜𝐭𝐢𝐯𝐢𝐭𝐲: Grocery, confectionery, and pet food categories drove UK M&A activity. UK corporate buyers led (57.1% of deals), with interest from financial and international buyers The resurgence of larger deals and continued activity in various sectors reflects growing confidence in the UK Food & Beverage market. As economic conditions improve, 𝐨𝐩𝐩𝐨𝐫𝐭𝐮𝐧𝐢𝐭𝐢𝐞𝐬 𝐟𝐨𝐫 𝐬𝐭𝐫𝐚𝐭𝐞𝐠𝐢𝐜 𝐚𝐧𝐝 𝐟𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐢𝐧𝐯𝐞𝐬𝐭𝐨𝐫𝐬 𝐚𝐫𝐞 𝐬𝐞𝐭 𝐭𝐨 𝐞𝐱𝐩𝐚𝐧𝐝 in this competitive landscape #HSAAdvisory #MnA #Transactions #FnB HSA Advisory

Concerns arise over MEGA IMAGE - Ahold Delhaize Group‘s acquisition of Profi, by Nine O’Clock The Competition Council has a number of competitive concerns regarding the transaction through which Delhaize “The Lion” Nederland B.V. (Mega Image) is acquiring Profi Rom Food S.R.L, The concerns arising from the analysis conducted by the competition authority target both the retail market and the procurement market for predominantly food consumer goods. “As you know, the European Commission agreed to transfer the analysis of this case to us, at our request, given that the Romanian market is the most affected. This is the largest transaction in the retail market in Romania, and a complex analysis is required. That is why we are consulting with authorities in other member states that have managed similar transactions, but we also want to hear the views of those affected: agricultural producers and processors, competitors, consumer associations,” said Bogdan Chiritoiu, President of the Competition Council / Consiliul Concurenţei. #newsfromcompanies #mega #Profi #Romanianews #Nineoclocknews #viaprofi #FoodSafety #ConsumerHealth #NINEOCLOCK https://lnkd.in/dUmvDBY8

Supermarkets’ buying arrangements are a hot topic on both sides of the Tasman! The ACCC’s inquiry into grocery markets is under way and promises to look closely at the arrangements between supermarkets and grocery suppliers. Meanwhile, in New Zealand the Commerce Commission is scrutinising the proposed merger of Foodstuffs’ separate North and South Island cooperatives, which trade under the common national brands of New World, PAK’nSAVE and Four Square. Nick Twort and I were delighted to assist Foodstuffs’ clearance application, with a report filed with the Commission last week on the available economic frameworks for assessing buyer power. We show that the economics of bargaining is the appropriate framework for assessing almost all grocery supplier markets and that a merged Foodstuffs would have no incentive to reduce its purchases from suppliers or to curtail its passing on of cost savings into lower prices for customers. https://lnkd.in/g72W3fDH

With operating costs increasing significantly in various markets, the benefits of scaling up and blending the line between beverage offerings only makes sense. We will see more manufacturers and distributors diversify their product offerings.