This week saw Kraft Foods table its long-awaited formal offer for Cadbury, to mixed reactions. In other M&A news, IFR Capital purchased Uniq’s Polish and German businesses as it looks to create a pan-European food group. Retailers Wal-Mart and Sainsbury’s both posted strong results but US baker Flowers Foods revealed sales had come under pressure from increased promotions. Here is just-food’s week in words.
Go deeper with GlobalData
“If we can participate in emerging markets in cereal and snacks in a way that is going to give good returns to shareholders we will do that… We’ll keep looking for opportunities, but unfortunately they aren’t as frequent as we’d like” – Kellogg CEO David Mackay on emerging markets
“The Uniq businesses fit our investment profile and will contribute to our long-term objective… [of] developing a vertically integrated food business” – IFR Capital spokesperson on its purchase of Uniq’s Polish and German businesses
“We are continuing to invest in our food offer when rivals are cutting back. We think this has been important to underpin our performance so far and vital to our growth going forward” – Sainsbury’s CEO Justin King (pictured).
“We believe that our proposal offers the best immediate and long-term value for Cadbury’s shareholders and for the company itself compared with any other option currently available, including Cadbury remaining independent” – Kraft CEO Irene Rosenfeld insists.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData“The repetition of a proposal which is now of less value and lower than the current Cadbury share price does not make it any more attractive” – Cadbury chairman Roger Carr, unimpressed by Kraft’s offer.
“We recommend that shareholders reject the existing Kraft offer [but] we believe that Kraft now has the financial resources to improve the cash component of its offer” – Jon Cox, Kepler Capital Markets.
“We believe that [Cadbury’s] chances of remaining independent has been strengthened… We now believe this transaction will go to the wire with Kraft’s last chance to raise its bid on 22 January” – Simon Marshall-Lockyer, Jefferies International.
“The recession is delivering some good; customers are returning to almost post-war thinking and are returning to scratch cooking. Ready meals are in decline and in some cases are in terminal decline” – Paul Kelly, Asda’s corporate affairs director, told a food conference on sustainability in London.
“When the recession is behind us we believe people will continue to shop with a new instinct for value and they will find it at Wal-Mart, Sam’s Club and the many other retail banners that we operate worldwide. We are pleased with where we have come over the last two years” – Wal-Mart CEO Mike Duke on the impact of the recession.
“At end of the day nobody is consuming more food. So what we’ve done in the baking industry is getting less for our product. Whoever has got the hottest specials for a given time might pick up some share, but at the end of the day everybody is going to get pretty equal” – Flowers Foods CEO George Deese on promotions.
