USA: Promar International: Bestfoods Acquisition Serves Up Foodservice Opportunities for Unilever
With it's $20 billion acquisition of Bestfoods, international giant Unilever, has among other things, delivered a massive wake-up call to under-performing players in the foodservice sector. According to Unilever one of the advantages of the deal will be "leveraging Unilever's large range of spreads, tea and tea based beverages and culinary products through Bestfoods excellent foodservice channel." In the view of specialist consultancy, Promar International this is one aspect which carries enormous weight."With growth in the foodservice sector in key mature markets outstripping traditional retail by more than 3:1, Unilever has at a stroke added massive capability for accelerating top line growth. But much more importantly it can benefit from Bestfoods' skills in managing the foodservice channel effectively, something that few players can boast," according to Catherine Morton, Promar director."As foodservice continues to take increased share of stomach it is the profitability question which is key. With a very powerful stable of global brands and their knowledge of sophisticated consumer base the new Unilever could take a lead in forging close partnerships with the major foodservice operators to further enhance channel profitability," Morton adds.Promar's warning is that this will also shake up the competition in the foodservice channel, forcing others to improve focus or exit. Morton insists that, "The cautious approach in foodservice is dead. The growing foodservice operators are demanding more co-operation and the opportunities are clearly there to deliver exciting consumer offerings. Those engaging at arms length will only see poor earnings fall further, dragging down overall performance."Promar is currently undertaking a strategic study on Profitability in Foodservice, due for completion July 2000. For further details, please contact Sandy Livingstone, Promar International.
Get full access to all content, just $1 for 30 days
A Message From The Editor
just-food gives you the widest food market coverage.
Paid just-food members have unlimited access to all our exclusive content - including 17 years of archives.
I am so confident you will love complete access to our content that today I can offer you 30 days access for $1.
It’s our best ever membership offer – just for you.
Dean Best, editor of just-food
- US food next wave on display at Winter Fancy Food
- How General Mills plans to grow - CAGNY
- Comment: Meal kits in US - don't believe the hype
- CAGNY analysis: Danone's growth strategy
- Wessanen eyes growth in "resurgent" organic market
- Unilever launches operational review
- Glanbia focuses on nutrition with Irish dairy spin
- Bonduelle to buy US produce group Ready Pac Foods
- Mondelez launches savoury snacks brand Vea
- Maple Leaf buys US plant-based group Lightlife