ITALY: Watchdog to probe Mondelez's disposal of Simmenthal canned meat

By Dean Best | 31 October 2012

Mondelez forerunner Kraft Foods agreed to sell Simmenthal last month

Mondelez forerunner Kraft Foods agreed to sell Simmenthal last month

Italian competition authorities are to probe Mondelez International's sale of canned meat brand Simmenthal to FMCG giant Bolton Group. 

The country's anti-trust watchdog is to look into whether the deal will lead to a "substantial and lasting reduction of competition", particularly in the production and marketing of preserved beef.

The deal could lead to "increased bargaining power" for Bolton, which also owns the Manzotin canned meat brand, the competition authority said. It added the price of the two brands and other canned meat products could rise.

Asked whether Mondelez was concerned whether the deal will not go through, a spokesperson said: "Simmenthal is an ‘ongoing transaction’ so it wouldn’t be appropriate for me to comment on details of the deal."

Kraft Foods, the forerunner to Mondelez, agreed to sell Simmenthal to Italy-based Bolton Group last month.

It was the second deal for European food brand Kraft had struck in two months. In August, it agreed to sell the Miracoli noodle brand to Mars Inc.

The two transactions came as Kraft was preparing to spin off its global snacks business, which includes Cadbury chocolate, as a new company, Mondelez International.

Mondelez, which has a portfolio that also includes Lu biscuits, Trident gum and Milka chocolate, has welcomed a new arrival into its stable in recent weeks. Earlier this month, it emerged it had acquired the Vitasnella snack business in Italy from Danone.

On Friday, Bloomberg reported Mondelez may sell off products as it reviews its business after the spin off, quoting the head of its European business Tim Cofer.

Speaking to just-food today, a Mondelez spokesperson clarified Cofer's comments. "Tim Cofer did say that we continually review our portfolio but he also said that we are excited about the portfolio as it currently stands, and do not see a need to make any changes to achieve our long-term growth. Of course we’ll continue to review opportunities as they arise and to review our portfolio to determine each brand’s or product’s overall fit."

Sectors: Canned food, Meat & poultry, Mergers & acquisitions

Companies: Mondelez International, Mars Inc, Cadbury, Danone

View next/previous articles

Currently reading -

ITALY: Watchdog to probe Mondelez's disposal of Simmenthal canned meat

There are currently no comments on this article

Be the first to comment on this article

Related research

Mondelez International Inc in Packaged Food (World)

Mondelez International was created in October 2012 as Kraft Foods Inc has restructured its operations into two independently listed entities. Mondelez is home to the international snack food portfolio and it has laid out its strategy of growth based ...

Mars Inc in Packaged Food (World)

The Wrigley acquisition of 2008 continues to add value to Mars’s presence in the emerging markets, notably in China. While its presence in gum lends itself well to the push towards healthier eating, its confectionary brands still pose a challenge. Th...

Cadbury: Losing brand value after acquisition by Kraft?

Then Kraft CEO, Irene Rosenfeld announced that the company wanted to broaden its position within the confectionery industry as a global leader. In 2010 Kraft’s offer of $19.5bn (£11.5bn) was accepted, causing uproar in Britain. This case study examin...

Related articles

UK: Mondelez to launch sponge snack brand Barny

Mondelez International is launching its Barny sponge snack to the UK in what it claims is the firm's biggest biscuits launch since Belvita.

UK: Mondelez adds Soda Popz to Maynards range

Mondelez International is hoping to attract younger UK consumers to its Maynards confectionery range with the launch of its Soda Popz line.

Editor's choice: the highlights on just-food last week

Major food manufacturers began to report their first-quarter results last week. Nestle came under scrutiny for its performance in emerging markets. A cautious Danone saw signs of improvement from its European dairy operations, while its infant formula business was buoyant. Elsewhere, we shone the spotlight on the recent rationing of formula in Western markets amid high demand in China, looked at Marks and Spencer's latest European venture and analysed Magnit's move to Russian retail's top spot.

Welcome to the home of food information, insight & intelligence

Not a member? Join here

Decrease font sizeDecrease font sizeDecrease font size Increase font sizeIncrease font sizeIncrease font size Comment on this article Email this to a friend Print this page