SunRice buys Australian pickled products firm Fehlbergs Fine Foods

Dean Best

Australia-based rice business SunRice has struck a deal to buy local pickled onions and gherkins supplier Fehlbergs Fine Foods.

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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 deal, agreed for an undisclosed sum, was made through SunRice’s Riviana arm, which already supplies a range of pickled vegetables. The acquisition adds pickled onions to the Riviana stable.

“This acquisition satisfies … one of SunRice’s six strategic priorities: to differentiate and build value in domestic consumer markets,” SunRice said in a stock exchange filing.

SunRice said pickled onions were Fehlbergs’ “core business” and claimed the Fehlbergs brand has “a strong and growing position in the market”.

It added: “The business has experienced impressive growth over the past four years through step outs into jalapenos and gherkins, as well as gaining a number of private-label contracts.”

Fehlbergs’ total sales in the 2016 financial year exceeded AUD4m (US$3.1m), with “strong operating profits”.

Alongside news of the Fehlbergs deal, SunRice also announced it had acquired the 35% stake in US rice business SunFoods it did not already own.

SunFoods, based in California, is the owner of the Hinode brand, which is sold across 8,000 retail outlets in the US.

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