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March 7, 2022

Indian rice supplier LT Foods acquires controlling stake in US peer Golden Star

The deal allows the basmati specialist to diversify into the jasmine rice segment.

By Andy Coyne

India-based rice business LT Foods, known for its Daawat brand, has acquired a 51% controlling stake in US peer Golden Star Trading for an undisclosed sum.

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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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The deal, done through the Indian firm’s US subsidiary LT Foods Americas (LTFA), sees LT take control of a California-based, family-owned business established in 1989.

Golden Star Trading sells jasmine rice under the brand Golden Star and has a turnover of US$55m.

Under the terms of the transaction, New Delhi-headquartered LT Foods has the option to buy the remaining 49% of the business at the end of three years.

The Indian company is keen to expand in North America on the back of the growth of its operations there, which sells the basmati rice brand Royal.

LT Foods CEO and managing director Ashwani Kumar Arora said the acquisition of the Golden Star business allows the business to diversify into the jasmine rice segment.

“We all are impressed by Golden Star’s brand growth trajectory and the execution, and operational excellence, to produce consistent quality products and expand its reach,” he said.

“We are excited about this expansion and we also look forward to integrating the two businesses by leveraging the brand equity of Royal and Golden Star as well as its well-established and robust distribution network.”

Golden Star Trading president Christina Wong said: “We have nurtured the Golden Star brand for more than 30 years now and were looking for the right partner to associate with our brand. In LTFA, we found the perfect strategic partner.”

In January last year, LT Foods took a minority stake in Dutch organic food business Leev.

The company reported revenues of INR46.44bn (US$603.9m) in its fiscal year ended March 2021, up 12% on a year earlier.

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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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