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November 22, 2021

Colombia food major Grupo Nutresa ‘receives takeover offer’

Nutresa, Colombia’s largest food company, is widely reported to be the subject of a bid from local banking billionaire Jaime Gilinski.

Grupo Nutresa, Colombia’s biggest food maker, has reportedly received a bid for a majority stake in the business.

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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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According to multiple reports, local banking billionaire Jaime Gilinski has teamed up with UAE conglomerate Royal Group to table an offer for at least 50.1% of Grupo Nutresa.

The bid could see the suitors acquire up to 62.6% of the business, which takes in products from biscuits and confectionery to cold cuts and pasta.

On the table is an offer worth US$7.71 a share, which would represent a premium of 38% on Grupo Nutresa’s current share price.

In an interview with Colombian daily newspaper El Tiempo, Gilinski said Grupo Nutresa would remain publicly listed, adding: “We will even probably try at some point to take it to the New York Stock Exchange, or to some other major ones in the world.

“We are making the significant financial effort to pay a large premium. What we earn is entry into a company with 100 years of experience. And we can promote it internationally in some other areas where it has not grown.”

The Colombian Stock Exchange has reportedly confirmed the bidders have filed a guarantee to support their offer for Grupo Nutresa’s equity.

In 2020, the group generated sales of COP11.1trillion (US$2.84bn), up 11.7% on a year earlier. Sales within Colombia rose 7.9% to COP6.7trn. Operating profit increased 6.6% to COP1trn. Net profit grew 14.3% to COP575.4m.

In the first nine months of this year, Grupo Nutresa saw its sales also rise 11.7%, hitting COP9.1trn. In Colombia, sales were up 14.5% at COP5.5trn, representing almost 61% of the company’s sales. Operating profit increased 9.5% to COP867.1bn. Net profit was 14% higher at COP535bn.

Trading in the company’s shares, which was suspended on 11 November, is set to resume today.

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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.

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