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March 25, 2019

Freedom Foods declares itself out of Lion Drinks and Dairy race

Australia's Freedom Foods Group has made an announcement following speculation it might make a bid for Kirin's locally-based food and beverage unit Lion Drinks and Dairy (LDD).

By Leonie Barrie

Australia’s Freedom Foods Group is the latest company to rule itself out from making a bid for Kirin’s locally-based food and beverage unit Lion Drinks and Dairy (LDD).

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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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It comes just a week after fellow Australian business Coca-Cola Amatil shut down speculation linking it with making a bid for the up-for-sale unit.

In a statement issued today (25 March), Sydney-listed Freedom Foods – best known for making breakfast cereals and snacks – said it “notes recent market commentary and speculation regarding the company’s potential involvement in an acquisition of the Lion Dairy and Drinks Portfolio (LDD), which is the subject of a sale process by Kirin Holdings Company Limited”.

It added: “Freedom Foods is not pursuing a bid for the LDD Portfolio as part of any current sale process. 

“As previously stated at Freedom Foods half-year results presentations in February 2019, the company remains focused on delivering on its unique capabilities and opportunities across dairy beverages and nutritionals, plant-based beverages and speciality cereals and snacks.”

Its statement echoes the Coca-Cola Amatil announcement of 18 March in which it said: “Coca-Cola Amatil is not pursuing a bid for the LDD portfolio.

“As previously stated at Coca-Cola Amatil’s full-year results presentation in February 2019, the company is comfortable with, and remains focused on, its current… portfolio of beverages.”

The LDD portfolio includes brands such as Pura milk, Dare iced-coffee and South Cape cheese. It also handles Vitasoy plant-based milks in Australia. 

Japan’s Kirin Holdings confirmed it planned to sell the dairy division of Lion in October, following a strategic review a month earlier.

A number of dairy heavyweights, including Canada’s Saputo and China’s Yili, have also been linked with making a bid for the assets.

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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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