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October 8, 2021

French poultry group LDC enters UK with Capestone deal

LDC, one of France’s largest poultry processors, has entered the UK with its investment in the Wales-based business.

French poultry giant LDC has entered the UK with the acquisition of a majority stake in Wales-based peer Capestone Organic Poultry.

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LDC is to buy 75% of the business. Julian Scale, who set up Capestone Organic Poultry on the family farm, and its chief executive Rob Cumine are to reportedly remain shareholders. Financial terms were not disclosed.

LDC, which disclosed the investment alongside its first-half sales results, said Capestone held around 7% of the UK market in free-range and organic poultry.

UK demand for local products in these areas had “grown strongly” in the wake of Brexit, LDC noted.

Some 70% of Capestone’s turnover, which LDC said stood at around EUR32m (US$37m) in 2020, is generated through sales to retailers. The processor, based in Pembrokeshire in south-west Wales, also sells to e-commerce players and to baby-food businesses.

“In this local market for free-range poultry, the LDC Group will be able to provide its expertise in premium poultry,” the French business said in a stock-exchange filing.

The same statement carried figures that showed LDC grew its sales by 12.9% in the first half of its financial year to EUR2.39bn. Like-for-like sales rose 10.8%, with like-for-like volumes 5.3% higher.

LDC said it had benefited from better prices in the second quarter and improved foodservice and export sales.

The bulk of LDC’s sales are generated in France. Outside its home market, revenue rose 19.4% to EUR228.9m, or by 18.8% on a like-for-like basis. Like-for-like volumes increased 5.7%.

Full first-half results are set to be published next month.

LDC’s most recent acquisition was sealed in April when the French competition regulator gave the company the all-clear to buy local peer Ronsard – after the processor agreed to sell a clutch of assets to get the deal through.

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Free Whitepaper
img

What is the impact of historically high inflation on the UK consumer landscape?

The average UK consumer is experiencing a severe cost-of living crisis as inflation surges to a forty-year high and the price of goods continues to rise. This shock is the result of the sharply increasing costs of commodities, energy, and the ongoing conflict in Ukraine, and is threatening FMCG manufacturers, retailers, and foodservice operators’ ability to survive and grow. Inflation will have a profound effect on many consumer-facing industries in 2022 and beyond. Consult GlobalData’s new whitepaper, Inflation in the UK: The Impact of Historically High Inflation on the UK Consumer Landscape, to better understand shifts in consumer behavior and their impact on spending patterns, as well as the implications for UK businesses. This whitepaper covers:  
  • Why has global inflation returned with a vengeance?
  • What is the current inflation situation in the UK?
  • What impact is inflation having on UK retail sales?
  • What tactics are businesses relying on to tackle the effects of high inflation?
  • How are consumers changing their behaviors to cope with the higher cost of living?
  • Which industry sectors are most vulnerable to reduced consumer demand?
  • How is the government responding to high inflation?
  • How long will high inflation last in the UK?
  • How can your company survive and thrive in a high inflation environment?
Enter your details here to receive your free whitepaper and ready your business for these increasingly uncertain times.
by GD50 Custom
Enter your details here to receive your free Whitepaper.

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