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February 28, 2022

Ebro Foods to buy US rice supplier InHarvest

California-based InHarvest sells a range of pulses and grains to retail, foodservice and B2B customers.

By Dean Best

Ebro Foods, one of the world’s largest rice businesses, is to acquire US rice, quinoa and buckwheat supplier InHarvest.

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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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Spain-based Ebro, known in the US for brands including Minute rice, is to pay just under US$48.8m for InHarvest.

In a statement, Ebro said InHarvest generated a turnover of $50.3m in 2020 but did not provide figures for 2021. InHarvest has two plants in California and employs around 140 staff.

Explaining the rationale for the deal, Ebro said the takeover of InHarvest was of “considerable strategic interest” and would benefit its own US subsidiary, Riviana Foods.

“The supply chain, plant network and packaging and production capacity of the Ebro group in the United States would be improved,” Ebro said. “It would provide access to business platforms on which Riviana does not currently have a significant presence – such as foodservice or the military channel – and the value-added goods produced by InHarvest would be included within Riviana’s product portfolio.”

Ebro’s planned takeover of InHarvest – the deal is expected to close in April – follows disposals of pasta assets in the US over the last two years.

Last year, Ebro sold its Ronzoni pasta brand to US food manufacturer 8th Avenue Food & Provisions.

In 2020, the company sold a clutch of other pasta assets in the US, including the Prince, Creamette and Skinner brands, to local group TreeHouse Foods. It also offloaded its Catelli dried pasta business in Canada to Italian counterpart Barilla.

Riviana Foods is now a business focused mainly on rice, although it still has the fresh-pasta brand Olivieri in its portfolio.

Meanwhile, in Europe, on New Year’s Eve, Ebro confirmed it had wrapped up the sale of a clutch of its Panzani pasta, semolina, couscous and sauces assets in Europe to private-equity firm CVC Capital Partners.

Ebro has yet to publish its 2021 financial results. In the first nine months of the year, the company posted a turnover of EUR2.08bn (US$2.33bn), with rice contributing EUR1.31bn. A year earlier, helped by Covid-fuelled demand for staples, group turnover was EUR2.43bn, with rice at EUR1.37bn.

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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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