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January 11, 2021

Nomad Foods in talks to buy Fortenova’s frozen-food assets

UK-based Nomad Foods is in exclusive negotiations to buy Balkans-based Fortenova Group's frozen-food portfolio.

By Leonie Barrie

UK-based Nomad Foods is in exclusive negotiations to buy Balkans-based Fortenova Group’s frozen-food portfolio.

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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 Birds Eye, Findus and Aunt Bessie’s frozen-food owner said the prospective transaction is in line with its strategy of “complementing strong organic growth in the base business with the acquisition of market-leading frozen-food brands across Europe”.

Croatia’s Fortenova, which emerged from the restructuring of the now defunct Agrokor, once the largest consumer goods business in the Balkans, confirmed it was putting its frozen-food assets on the block in November as part of plans to reduce debt and concentrate on growth in other areas.

The assets are made up of Ledo, Ledo Citluk and Frikom. Ledo is the largest manufacturer and distributor of ice cream and frozen food in Croatia while Ledo Citluk is a business based in Bosnia and Herzegovina. Frikom is a Serbian maker of ice cream and other frozen foods.

A number of potential buyers have been linked with their purchase. Aside from Nomad, Nordic food group Orkla was suggested as a possible buyer. Czech-Slovak investment funds were also said to be interested in the assets.

But in announcing exclusive talks with Zagreb-based Fortenova today (11 January), Nomad Foods appears the favourite to get a deal over the line. 

Nomad said the acquisition, if completed, would extend its portfolio into new and developing European markets while also "creating a beachhead for potential future consolidation within Central and Eastern Europe".

The company stressed the discussions are preliminary and there can be no assurance that a transaction will be completed. It said it would not be commenting further until the discussions are completed.

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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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