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October 28, 2020

Ebro Foods sells Catelli pasta business in Canada to Barilla

Spain's Ebro Foods has sold a pasta brand and associated manufacturing operations in Canada, the Madrid-listed business has said.

By Dean Best

Spain’s Ebro Foods has agreed to sell its Catelli dried pasta business in Canada to Italian counterpart Barilla, along with a production facility in Montreal, Quebec.

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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.
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The deal is being conducted via Madrid-listed Ebro’s subsidiary in Canada, Catelli Foods Corp., for CAD165m (US$123.9m) and includes the company’s namesake brand, as well as the Lancia and Splendor pasta lines.

Ebro said in a statement the Catelli business generated revenues last year of CAD103.2m.

Meanwhile, Ebro will maintain a presence in Canada with its Garofalo dried pasta brand, its Olivieri line of fresh pasta and sauces, and the Minute and Tilda rice brands. As a group, Ebro also manufactures organic foods, sauces and ready-meals. Ebro acquired the Tilda basmati rice brand last summer from US food group Hain Celestial.

Reports circulated earlier this year that Ebro was willing to sell its pasta businesses in North America, both in the US and Canada.

just-food has approached Ebro to ascertain the reasoning behind the disposal of the Catelli line and the plans for the US part of the pasta business, which includes the Ronzoni brand.

Barilla said it had no comment to add.

Alongside news of the disposal, Ebro reported its financial results for the first nine months of 2020. Sales rose 19.2% to EUR2.43bn, contributing to 50.2% jump in operating profit to EUR226.2m. Net profit was 27.8% higher at EUR146.7m. Sales from Ebro’s pasta and rice divisions were higher year-on-year.

In the third quarter, Ebro’s underlying net profit was up 9%, with the company pointing to the impact last year of the sale of its French-Spanish organic and plant-based food business Alimentation Santé to Sweden’s Midsona.

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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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