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September 1, 2020

Activist investor Oasis rejects Premier Foods stake sale talk

An activist shareholder in Premier Foods has denied it is planning to sell its stake in the UK manufacturer.

By Leonie Barrie

Oasis Asset Management, an activist shareholder in Premier Foods, has denied it is planning to sell its stake in the UK manufacturer.

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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.

London’s Evening Standard newspaper, quoting unnamed sources, reported Oasis is looking to sell its 10% stake after Covid-19 sparked a sales boom at Premier, which owns brands such as Mr Kipling, Oxo and Sharwood’s. Fellow activist investor Paulson & Co, which holds a 6% stake in Premier, is “likely to follow suit”, the publication said.

According to the newspaper, Oasis and Paulson “quietly sold 15 million and 10 million shares respectively last month”.

But in a statement sent to just-food, Oasis said: “We are committed, long-term investors in Premier Foods and have every intention of remaining committed, long-term investors.

“We look forward to enjoying the benefits of the improved performance and profitability as the company continues to implement its strategic goals under the new management team.”

The shareholder duo successfully fought for a management and strategy shake-up at Premier which saw chief executive Gavin Darby leave the company and its picks joining the manufacturer’s board. 

They have previously pushed for the sale of under-performing assets but Premier has seen many of its brands prosper during the coronavirus crisis with shelf-stable sauces and stocks appealing to consumers stuck at home with more cooking time on their hands and tinned goods attracting those who want to keep their cupboards stocked.

Japan’s Nissin Foods Holdings remains Premier’s biggest shareholder with a 19% stake.

just-food has also asked Paulson for a response to this story.

Read just food’s analysis – Premier Foods’ progress – five things to learn from FY results and management outlook

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Free Report
img

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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