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October 30, 2019

Food and drinks firm Lassonde snaps up peer Sun-Rype in all-Canada deal

Lassonde Industries, a Canada-based food and drinks business, is to acquire a local peer for around CAD80m (US$61.1m).

By Leonie Barrie

Lassonde Industries, a Canada-based food and drinks business, is to acquire local peer Sun-Rype Products for around CAD80m (US$61.1m).

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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:
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  • 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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Rougemont, Quebec-based Lassonde said two of its subsidiaries had entered into an agreement with subsidiaries of The Jim Pattison Group to acquire Sun-Rype, a fruit-based snack and beverage manufacturer located in Kelowna, British Columbia, and its two US affiliates in Selah and Wapato, Washington State.

Nathalie Lassonde, CEO of Lassonde Industries, which manufactures products such as Canton fondue sauces and Sunbites corn-on-the cob, as well as cranberry sauces, said: “Sun-Rype and Lassonde are two great Canadian companies with decades of strong presence in the food and beverage industry in North America. This transaction is part of our strategy of constant and measured growth and will strengthen our presence in the Canadian and US markets.”

Jim Pattison, chairman and CEO of The Jim Pattison Group, added: “Lassonde is a very well respected and established Canadian company, which has been in business for over 100 years. It has been a key supplier to several of our companies, including Save-On-Foods and Buy-Low Foods for decades, and will continue to be. Lassonde is a first-class growing company with an excellent track record. Sun-Rype is in good hands with Lassonde.”

Sun-Rype, founded in 1946, generated sales of approximately CAD164m in the 12 months to 30 September. It employs around 400 people.

Lassonde employs 2,200 people across 15 plants in Canada and the US. 

The purchase price reflects excess working capital estimated at CAD7m. As part of the transaction, Lassonde will assume CAD21m in lease liabilities related to long-term leases for Sun-Rype’s three facilities.

The transaction is expected to close towards the end of 2019. 

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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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