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November 15, 2021

2 Sisters Food owner ‘in talks to raise millions of pounds’

'Several' hedge funds have reportedly been approached to raise GBP50m (US$67.1m).

Boparan Holdings, the parent company of UK poultry major 2 Sisters Food Group, is said to have entered talks with hedge funds to raise capital.

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What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

Sky News reported the GBP50m (US$67.1m) sought by Boparan Holdings, owned by multi-millionaire and businessman Ranjit Singh Boparan, is aimed at helping 2 Sisters navigate labour shortages and supply chain challenges during the Christmas period.

Quoting unnamed sources, the broadcaster said the business is in talks with several hedge funds with a view to closing a deal within days. A spokesperson for 2 Sisters, the UK’s largest poultry processor, of which Mr. Boparan is president, said the company had “nothing to add” when contacted by Just Food.

The so-called ‘chicken king’ has been vocal in recent months over the labour shortages 2 Sisters and its meat-processing industry peers are facing post-Brexit, an issue made worse by Covid-19. He has also been voiceful about how consumers will have to get used to higher prices in the face of rising input costs amid warnings from turkey suppliers over a possible shortage of birds for Christmas.

In October, the UK government temporarily relaxed visa rules for overseas butchers to enter the country to help ease the labour crisis and they were expected to start arriving this month under an application scheme that runs to 31 December.

Mr. Boparan has also recently entered the M&A market, announcing a deal in October for UK-based Banham Poultry through his investment vehicle Boparan Private Office. The transaction is currently under investigation by the Competition and Markets Authority watchdog. Poultry processor Bernard Matthews is also under the auspices of the businessman’s empire.

He has also offloaded a number of companies that were part of the 2 Sisters business. In September, it was revealed 2 Sisters was looking to close its Elkes Biscuits factory in the English Midlands, which had remained under the UK manufacturer’s ownership after the business sold the bulk of its biscuits operations to Ferrero last year.

Other disposals in recent years include the Matthew Walkers Christmas puddings arm, seafood business Donegal Catch, its Goodfella’s pizza assets, its red-meat operations and the Manton Wood sandwich unit.

Back in July, the businessman warned the UK meat industry was facing a “perfect storm” from labour pressures, inflation and Brexit-related issues.

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Free Report
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What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

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