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June 21, 2022

Canada’s Champion Petfoods ‘exploring strategic options’

Nestlé was reportedly in talks for a majority stake in Champion Petfoods in 2018.

By Simon Harvey

Canada-based Champion Petfoods, reportedly once of interest to Nestlé four years ago, is said to be exploring strategic options, including a potential sale.

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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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A sale could value the Edmonton, Alberta-based dog- and cat-food company at more than US$2bn, Bloomberg reported, quoting people with knowledge of the matter, who requested anonymity because the discussions are private. Champion Petfoods is working with an adviser on a potential transaction, the sources reportedly said.

Champion Petfoods is backed by private-equity investor Bedford Capital in Ontario, although the size of the stake in the Orijen and Acana brand owner has not previously been revealed.

In 2018, The Wall Street Journal reported Nestlé was said to be engaged in talks to acquire a majority interest in Champion Petfoods from Bedford Capital and the Muhlenfeld family founders, who started making pet food in 1985 under the watch of Reinhard Muhlenfeld.

At the time, the WSJ also said a deal by Nestlé, the owner of the Purina pet-care business, could fetch $2bn, again quoting people familiar with proceedings. As was the case then, Bloomberg’s sources said a transaction by Champion Petfoods might not materialise.

Approached by Just Food, Molly Keveney, a spokesperson for Champion Petfoods, said “we don’t typically comment on industry rumours or speculation”.

The business markets dry dog and cat food, as well as freeze-dried snacks, sold in 100 countries, according to its website.

Pet food was singled out as a “hot” M&A category for 2022 by deal advisers Just Food spoke to last year as Covid-19 increased pet ownership as people sought companionship in canines and felines.

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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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