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March 25, 2020

Australian retailer Coles approved to acquire Jewel Fine Foods after B&J City Kitchen deal ruled out

Australian supermarket chain Coles has been approved by the country's competition watchdog to acquire ready-meals maker Jewel Fine Foods.

By Dean Best

Australian supermarket chain Coles has been approved by the country’s competition watchdog to acquire ready-meals maker Jewel Fine Foods after a previous proposed deal by peer B&J City Kitchen was blocked.

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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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Chef Fresh Pty, a subsidiary of Coles located in Victoria, has been cleared by the Australian Competition and Consumer Commission (ACCC) to purchase New South Wales-based Jewel Fine Foods, which went into administration last April and produces branded and private-label ready meals.

On 18 March, Jewel entered into a contract with Coles for the sale of Jewel as a going concern. The retailer does not currently manufacture ready meals but is Jewel’s major customer.

Financial terms for the transaction have not been disclosed nor were any details previously revealed for the proposed acquisition by B&J City Kitchen.

In September 2019, the ACCC opposed the sale of Jewel to B&J City Kitchen on the basis a deal, if approved, would likely “substantially lessen competition” for the supply of chilled ready meals.

“Coles’ acquisition of Jewel ensures that there will still be two major suppliers of chilled ready meals,” ACCC commissioner Stephen Ridgeway said in a statement today (25 March). “We are pleased that the administration process will end with Jewel’s business continuing as a going concern and competing with other suppliers.

“The ACCC investigation focused on whether other retailers would be foreclosed if Coles acquired the business. We found that Woolworths already has supply arrangements with Jewel’s competitor, B&J City Kitchen, and that other retailers have other options.”

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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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