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January 20, 2021

India’s LT Foods takes minority stake in Dutch organic business Leev

India-based rice supplier LT Foods is extending its presence in Europe through a deal for a business producing breakfast crackers and snack bars.

By Dean Best

India-based rice supplier LT Foods has acquired a minority stake in Leev, an organic breakfast products and snacks business based in the Netherlands.

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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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Mumbai-listed LT Foods, which counts Daawat, Royal and Ecolife among its rice brands, has taken a 30% holding in Leev through the Netherlands’ arm of its Indian subsidiary Nature Bio Foods (NBF), a producer of rice, nuts, pulses and spices.

LT Foods said in a statement it has an option to take an additional 21% share in Leev five years after concluding the initial deal. Financial details were not disclosed.

Based in the town of Werkendam in the south of the Netherlands, Veer makes breakfast products such as organic crackers and waffles, with gluten- and lactose-free options. It also makes snack bars, cookies, brownies and baking mixes. Its products are available online and in Dutch retailers, which were not named in the statement.

Leev’s founder and director Leo Voorwinden said: “From a strategic point of view, it is critical that we build short supply chains. With NBF BV, a subsidiary of LT Foods coming on board, we can source our raw materials directly from organic farmers in India.” 

It is the latest investment project initiated by LT Foods in the Netherlands. Last month, the company said it would add a number of new packaging lines at its plant in Maasvlakte, within the Port of Rotterdam, as part of a five-year strategy to boost growth in Europe, which is served through LT Foods International.

Vijay Kumar Arora, LT Foods’ chairman and managing director, said: “Strategically, this acquisition gives NBF BV a reach to the consumers directly via the mainstream distribution strength of Leev. Currently, NBF manages the farm to the doors of EU industries and brands and now would be contributing to the full chain from farm-to-fork.” 

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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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