USA: Fleming Intensifies Focus On Growth Areas
Fleming (NYSE:FLM) today announced the company has engaged Morgan Stanley Dean Witter to assist in exploring strategic alternatives for Fleming's conventional supermarket chains, including the potential sale of these operations. The company intends to focus greater management and financial resources on Fleming's growth areas, including value retailing. "The conventional supermarket segment offers local-market growth potential for independents and national growth potential for consolidators, and these are all strong operations," said Fleming CEO and Chairman Mark Hansen. "But the middle ground potential does not meet our aggressive targets for shareholder value, and the company-owned conventional supermarket format does not fit our growth strategy." "We are focusing our financial and management resources on Fleming's very best growth prospects and continued improvement of our cost structure. This allows Fleming to strengthen its value proposition and service to the independent retailers, chain retailers, e-tailers and other customers of our distribution segment. It also enhances our opportunities to accelerate our growth commitment to value retailing, including our Food4Less® warehouse concept," said Hansen. "The value retail format is distinct and consumers have demonstrated a demand for a deep price impact operation. We believe Fleming's distribution system is well suited to serve this format. Fleming can become a major player in a very short time, providing our shareholders with superior returns and growing our company to exciting levels in this retail area," said Hansen. The 161 conventional supermarkets under evaluation include:
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
- Analysis: Post discusses rationale for Weetabix
- Interview: Sir Kensington's on sale to Unilever
- US food next wave on display at Winter Fancy Food
- Who will buy Danone's Stonyfield business?
- Column: Why snacking is the new meal
- Unilever buys US condiments maker Sir Kensington's
- Ice cream helps Unilever sales, food flat
- Post: Weetabix "opens up M&A opportunities"
- Suntory to offload Australia, New Zealand foods
- Nestle organic growth slows but beats expectations