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July 17, 2020

Maple Leaf Foods sells poultry plant to local peer Volaille Giannone

Maple Leaf Foods, the Canada-based food group, has sold a poultry production plant in Quebec to a local peer.

By Dean Best

Maple Leaf Foods, the Canada-based food group, has sold a poultry plant in Quebec to local peer Volaille Giannone as the company seeks to “optimise” its processing network.

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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
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The facility is located in the city of Drummondville and the transaction, for an undisclosed sum, is expected to be completed this summer, subject to “closing conditions” and regulatory requirements, Toronto-listed Maple Leaf said in a statement. The agreement also includes a new three-year deal for the supply of fresh chicken by Volaille Giannone, which is based in St. Cuthbert, Quebec. 

Maple Leaf said it acquired the plant in 2018 as part of a deal for a selection of assets of Cericola Farms but will continue to operate its facility in Bradford, Ontario, which it bought in the same transaction. 

President and CEO Michael McCain added: “Over the past few years, our leadership position in this category has grown; however, we are focused on prioritising capital and optimising our processing network. The sale of the Drummondville facility is an outcome of our continued network optimisation.”

Meanwhile, Volaille Giannone said the Drummondville plant employs around 100 people, and will enable the business to increase production volumes by about 40%.

Its vice president and CEO Bruno Giannone added: “The agreement is in line with our growth objective and will help in slightly increasing our production volume. This transaction will also strengthen our marketing capacities to better meet our customers’ needs.”

Maple Leaf also produces plant-based protein products and formed a dedicated company in 2018, Greenleaf Foods, which also houses the recently acquired Field Roast Grain Meat Co. and Lightlife Foods.

Related Companies

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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