Maple Leaf Foods lifts threshold on CEO stake

Michael McCain, the president and CEO of Maple Leaf Foods, has seen the limit placed on the stake he can hold in the Canada-based group lifted under a new governance agreement.

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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.

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McCain, Maple Leaf’s largest shareholder, will be able to own 45% of the business, up from a previous threshold of 31.9%.

The new agreement, which replaces a deal struck in 2011, will restrict McCain to that 45% level except in certain conditions that include a takeover of the whole business.

The new deal also sees an agreement Maple Leaf’s board will consist of a majority of independent directors.

“The amendments establish a progressive governance agreement between the Company and its largest shareholder that functions in the best interest of all shareholders, and achieves the board’s commitment to continued good governance,” Maple Leaf chairman David Emerson said.

News of the new governance agreement came alongside Maple Leaf’s annual results, which included higher sales and profits.

On Tuesday, Maple Leaf announced it had struck a deal to buy US meat-free business Lightlife Foods from private-equity group Brynwood Partners for US$140m.

Free Report

What’s the forecast for the food and grocery industry?

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

By downloading this case study, you acknowledge that GlobalData may share your information with GlobalData and that your personal data will be used as described in their Privacy Policy

Dean Best

An experienced editor, Dean has reported on the international food and beverage industries for 19 years. He became editor of Just Food in 2007 and Just Drinks in 2022.