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January 15, 2016

Amalgamated Dairies Limited, Gay Lea Foods announce tie-up

Two Canadian dairy co-operatives, Amalgamated Dairies Limited and Gay Lea Foods, are to work together in areas including procurement, R&D and distribution.

By Dean Best

Two Canadian dairy co-operatives, Amalgamated Dairies Limited and Gay Lea Foods, are to work together in areas including procurement, R&D and distribution.

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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
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The companies have announced a “co-operative dairy alliance” that will see them “collaborate on market distribution, delegate and leadership training, research and development and procurement”.

Asked what prompted the co-operatives to decide to work together, Jim Bradley, ADL’s CEO and general manager, said: “Customers are always expecting more from their suppliers. These demands range from increased product diversity, a larger more efficient distribution network, to greater depth of product research and development.”

Amalgamated Dairies Limited, which is based in the eastern Canadian province of Prince Edward Island, supplies retail and foodservice operators in Canada. It markets products under the ADL brand but also manufactures own-label products. The company exports to the US, the Caribbean and Asia. It has six processing and distribution sites.

Gay Lea Foods, which is based in Ontario, manufactures products including butter, sour cream and lactose-free milk, supplying to domestic and export customers. It has 11 production and distribution sites across Ontario and Quebec.

Bradley said the co-operatives would jointly use their distribution facilities, would have “a wider platform to better utilise research and development” and have greater access to “diversified product portfolios”.

He added: “We are confident that through combined volume purchasing, single desk purchase negotiations and the wider use of purchasing best practices that savings will be realised.”

Michael Barrett, the president and CEO of Gay Lea Foods, said: “We look forward to advancing one dairy voice, through the alliance, with our co-operative partner to ensure growth and prosperity of the Canadian dairy industry.” 

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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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