After a year of waiting, the merger of Netherlands-based dairies Friesland and Campina has been rubber-stamped by the EU’s competition authority. The deal, which will create a EUR9.1bn (US$13.14bn) dairy giant, looks set to shake-up the landscape of the European – and, indeed, global – dairy industry. And, as just-food discovered, the top brass at FrieslandCampina are now likely turning their attention to future growth, particularly in the emerging markets of Eastern Europe and Asia.
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Another company eyeing growth in international markets is Kraft Foods, which announced plans to separate the management of European businesses from its other overseas operations this week. Appointing Coca-Cola’s Michael Clarke to head up its European business is likely to increase the US food giant’s focus in the market and could signal that the company is eyeing increased revenues from the region. Indeed, following the announcement, Kraft told just-food that it expects the management shuffle to deliver top- and bottom-line gains.
It was not such a great week for the management of the UK’s Premier Foods, which has continued to grapple with the company’s high-debt levels as it attempts to breath fresh vigour into its stable of well-established brands. The company revealed at the beginning of the week that it is has entered into talks with potential investors with a view to improving its capital structure. Premier has also said that it would consider disposals – at the “right price”.
Meanwhile, shares in US food groups ConAgra Foods and General Mills jumped this week, as each company reported a strong set of results.
EU: Sell-offs ahead as Campina, Friesland deal gets EU ok
The EU today (17 December) cleared the merger between dairy companies Campina and Friesland Foods – provided the Dutch firms sell off a slew of businesses.
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By GlobalDataFrieslandCampina ready to milk dairy market
Having gained EU approval to merge, the Netherlands-based dairy groups Campina and Friesland will hope that their combined strength will better prepare the business to withstand the tough economic times facing the European dairy industry and the liberalisation of the sector. With the deal rubber stamped, FrieslandCampina is now likely to turn its attention to exploiting the opportunity presented by the emerging markets of eastern Europe and Asia.
A well Kraft-ed European strategy?
Kraft Foods has appointed former Coca-Cola executive Michael Clarke to head up its European business. The move sees Kraft separating its European operations from the rest of its international interests and could signal that the US food giant is looking to sharpen its focus in the region.
EU: Kraft bullish on European prospects
Kraft Foods has indicated that the revamp of the management of its businesses in western Europe is expected to deliver top- and bottom-line growth in the region.
UK: Premier in talks with investors to cut debt
Premier Foods has moved to reassure investors over the company’s high level of debt by confirming that it is reviewing a “range of options” to raise capital.
UK: Premier Foods’ Hovis brand adopts Nimble
Premier Foods is to adopt low-fat bread Nimble into the Hovis family.
UK: Bristol-Myers Squibb exec named as Cadbury CFO
Cadbury today (16 December) named former Bristol-Myers Squibb executive Andrew Bonfield as CFO.
US: ConAgra shares jump after Q2 results
Shares in ConAgra Foods rose today (17 December) after the US food giant posted a rise in underlying quarterly earnings and maintained its full-year earnings outlook.
US: Gen Mills ups profit target after H1 figures
US food giant General Mills today (17 December) raised its full-year earnings forecast after posting a rise in half-year profits.
US: Penn Traffic to sell wholesale business
Penn Traffic, a regional grocery chain based in Syracuse, New York, has reached a deal to sell its wholesale business to C&S Wholesale for a total of US$43m.
