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November 10, 2020

Canada’s Premium Brands, First Nations groups to acquire seafood business Clearwater

Premium Brands, the Canada-based food group, has teamed up with a Mi'Kmaq First Nations Coalition to acquire a local seafood heavyweight in a CAD1bn (US$768.7m) deal.

By Leonie Barrie

Premium Brands Holdings, the Canada-based food group, has teamed up with a Mi’Kmaq First Nations Coalition to acquire local business Clearwater Seafoods in a CAD1bn (US$768.7m) deal.

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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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Nova Scotia seafood heavyweight Clearwater, which owns UK-based Macduff Shellfish Group, said in March it had instigated a strategic review after receiving a number of enquiries from parties interested in taking over the business.

Acquisition-hungry Premium Brands has sealed the deal, forming a 50-50 joint venture for the purpose alongside the Mi’kmaq First Nations Coalition led by Membertou First Nation. The coalition represents the indigenous communities of Nova Scotia.

Post-deal, Clearwater will continue to operate as a distinct entity.

George Paleologou, president and CEO of Premium Brands, said: “We are very pleased to be partnering with both the Mi’kmaq First Nations communities and Clearwater.

“Clearwater on its own is a world class seafood company with a great management team, best-in-class products and a globally respected brand. In partnership with us and the Mi’kmaq First Nations communities, it will become an even stronger business by leveraging the complementary strengths of our three organisations.”

Terry Paul of Membertou First Nation said: “This represents a historic opportunity for the Mi’kmaq to strengthen our role in Canada’s commercial fisheries, including playing a much larger part in its unique deep-water fisheries.

“Mi’kmaq will not only become 50% owners of Clearwater with our new partner, Premium Brands, but will proudly hold all of Clearwater’s Canadian fishing licences within a fully Mi’kmaq-owned entity.”

Ian Smith, president and CEO of Clearwater, said: “We are very excited about working with Premium Brands and the participating communities to continue to grow and strengthen our business, while preserving our culture and community presence in Atlantic Canada.”

Premium Brands suggested the combined seafood operations of Clearwater, Premium Brands and the participating communities is expected to generate more than CAD1.3bn in annual sales, with the majority of Clearwater’s sales (approximately 89%) outside of Canada.

The transaction is subject to approval by Clearwater shareholders.

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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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