Europe’s food retail industry is set for further consolidation, analysts said this week, while speculation continued to grow over the ownership of global dairy brand Yoplait. Here’s the best of what was said this week.
“We believe saturated competition in some markets and the motivation to increase exposure to emerging markets in the wake of stagnant Western growth will likely drive the return of the M&A theme” – Analysts at J.P.Morgan Cazenove believe Europe’s food retail industry is set to see the return of mergers and acquisitions.
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“Frozen food is not what is driving their growth. They have a store estate that is very good in the convenience market” – Kantar Worldpanel communications director Ed Garner explains what is driving UK retailer Iceland Foods, the subject of a reported takeover bid from its chief executive.
“We have always said that [former chairman] Mr Leonard said we could be interested” – a spokesperson for Lactalis remained coy about the firm’s interest in Yoplait.
“In our view, the third-quarter trading update – with little improvement in France and concerning developments in Brazil – should serve as something of a ‘reality check’ on the current challenging state of the business” – Sanford Bernstein retail analyst Christopher Hogbin analyses Carrefour’s third-quarter trading update
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By GlobalData“We’re just pulling together our three year plan in terms of new stores and acquisitions. We’ve always said that once we got the Somerfield acquisition out of the way, wed complete the integration and pay off some of the debts, then resume quite an aggressive number.” – The Co-operative Group’s Tim Hurrell on the group’s expansion plans.
“There are a number of options under consideration and we aim to minimise job losses. We hope that the workforce at Bourne can be flexible in working with us to achieve this goal” – a spokesperson for Bakkavor defends the firm’s plans to cut jobs
“The situation is untenable for the industry if we do not reach an agreement with all the French distributors. It is now urgent that everyone, throughout the chain, adopt a responsible attitude” – Doux managing director Guy Odri urges retailers to act “responsibly” in the face of rising grain costs after talks with two grocers to increase prices stalled
“Our success is known by too few. Fierce competition helps consumers, but prevents the industry from speaking with more confidence about the industry” –Tesco commercial and marketing director Richard Brasher calls for the industry to take more pride in their sector
