Mengniu Dairy 'eyeing Australia's Burra Foods'

China’s Mengniu Dairy is reportedly eyeing Burra Foods in a deal believed to value the Australian dairy group at more than A$300m (US$228.1m).

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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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According to the Australian Financial Review, citing Burra founder Grant Crothers, Burra is in discussions with an unspecified number of parties and a deal is expected “before June”. The Crothers family, who currently own 55% of Burra, and Japanese group Itochu Corporation, which took a stake in Burra in 2009, are expected to retain stakes of 10% each in the company.

Burra manufactures value-added dairy ingredients for the global food manufacturing market. According to its website, the group specialises in delivering “the functional and sensory characteristics of fresh milk”. Products include cheese, fresh milk concentrates, food preparations, speciality milk powders and fresh dairy ingredients.

Burra processes around 300m litres of milk annually at its manufacturing plant in Korumburra, in south eastern Victoria. The company operates sales offices in Melbourne, Hong Kong and Tokyo.

Neither Burra nor Mengniu responded to requests for comment at time of press.

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

Free Report

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

Free Report

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

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