Blog: Dean BestHow healthy will the future be for Wessanen?

Dean Best | 25 February 2010

The focus was on the future at So Good and Kallo maker Wessanen in Amsterdam today (25 February).

The Dutch food group's recent travails are well documented and, after posting losses of EUR220m for 2009, the company's management was keen to outline the business' ambitions.

The downturn may have hit sales of organic food in markets across Europe but Wessanen believes there is long-term potential in the category.

CEO Frans Koffrie also talked up the company's plans for investment behind its brands, as well as the prospect of bolt-on acquisitions.

The market, however, seemed less than impressed, with Wessanen's shares plunging by more than 13% today.

The hit to the share price may have been due to Wessanen's hints that it may need to restructure its balance sheet and with a share issue a possible option.

However, Wessanen's plans to be Europe's "organic food champion" will demand some serious investment and a level of spending that could hit the company's margins.

What's more without a recovery in the organic food sector within the next two years, Wessanen's investment could reap few rewards - and perhaps cause more pressure on the company's already-fragile balance sheet.


BLOG

Will Amazon Go be retail "game-changer"?

Ask any FMCG executive to list the trends shaking up the sector and digital and e-commerce will be pretty high on the list. Drill down into that and Amazon will be one of the subjects in the digital s...

BLOG

UK food producers call for "best possible single market access" post-Brexit

Since Theresa May took over as UK Prime Minister in the wake of the country's referendum vote to quit the European Union, she and her ministers have been at pains not to divulge their negotiating posi...

BLOG

Greenpeace trains sights on Sainsbury's over John West tuna

Greenpeace's long-running campaign against UK tuna brand John West, owned by seafood giant Thai Union, is now directing its fire against Sainsbury's....

just-food homepage



Forgot your password?