View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
October 14, 2019

New firm London Food Corporation eyes more M&A after Big Oz buy

London Food Corporation, a new UK firm set up to buy a local gluten-free business out of administration, is considering more M&A.

By Dean Best

London Food Corporation, a new UK firm set up to buy local gluten-free business Big Oz Industries out of administration, is considering more M&A.

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.

Lalit Premchandani, one of four partners who formed London Food Corporation in May, indicated the new business wanted to continue its deal-making.

“Definitely, 100%,” Premchandani, London Food Corporation’s CEO, said when asked if more acquisitions could follow the Big Oz Industries deal. “We are looking at some. It’s too early to say [which] but there will be some. Every year there will be something added to it.”

Asked if London Food Corporation was studying specific parts of the food sector for possible targets, Premchandani added: “We are looking at sectors which have got growth prospects in them, nothing like something in which there are a lot of players and the growth is not visible, even if they have high turnover. Anywhere where there’s a scope of improvement and product development.”

Premchandani, who has worked much of its career in the metal industry, said he and his three partners had not initially set out to invest in the food industry but were looking for “companies that were in distress and needed turning around”. As a consumer of Big Oz Industries’ products, he was aware of the brand, he said.

“The business went into administration. The company had too much debt … but [there were] no customer complaints at all. We discovered that the brand was very much liked in the market,” Premchandani said.

Under Big Oz Industries’ previous owners, the company had secured business with customers including UK retailers The Co-op and Holland & Barrett. In 2018, the firm’s sales were GBP1.5m (US$1.9m), although that was down on GBP3m in 2017, Premchandani explained.

Asked to outline London Food Corporation’s plans to breathe fresh life into Big Oz Industries, Premchandani said the new owners had “taken back ten to 20 old customers” and would “soon” re-start business with The Co-op and Holland & Barrett.

He added: “The Big Oz brand as such will be selling on the online space and it will be listed as Big Oz in health shops and independent retailers. The Co-op will be buying it as white label and we will do packaging for them in their branded packaging. Holland & Barrett will be a mixture of both.”

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.

Topics in this article: , ,
NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. A weekly roundup of the latest news and analysis, sent every Friday. The industry's most comprehensive news and information delivered every other month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Just Food