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August 10, 2016updated 10 Apr 2021 5:44pm

WhiteWave Foods reveals Mexico acquisition

WhiteWave Foods, the US group set to be taken over by Danone, revealed a recent acquisition in Mexico as it published its half-year results yesterday (9 August).

By Dean Best

WhiteWave Foods, the US group set to be taken over by Danone, revealed a recent acquisition in Mexico as it published its half-year results yesterday (9 August).

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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
Enter your details here to receive your free Report.

The Alpro owner said it had snapped up Innovation Packaging and Process, a Mexico-based manufacturer of aseptic drinks, in June. WhiteWave said it paid US$18m in cash for a business that makes “a variety of products for WhiteWave and other parties”.

The company added: “The acquisition supports WhiteWave’s growth initiatives in Latin America with internal production capacity.”

WhiteWave’s results for the six months to 30 June included higher net sales, operating income and net income, as did the company’s numbers for the second quarter.

However, WhiteWave disclosed second-quarter net sales from its fresh food arm – which consists of the Earthbound Farm produce brand – saw net sales decline 2%. WhiteWave said “tighter industry supplies of organic salad could not fully service demand”. The company also pointed to its moves to rebuild its distribution following SAP implementation-related disruptions during the fourth quarter of 2015. WhiteWave forecast “strong” sales in the fourth quarter of this year will lead to the division generated higher net sales year-on-year in 2016.

First-half group net sales were up 13.9% at US$2.09bn. Operating income increased 25.6% to $184.7m. Net income rose by a third to $94.4m.

Reflecting on the second-quarter numbers, WhiteWave said its net sales “were driven by strong organic growth in both the Americas and Europe segments, as well as contributions from acquisitions”.

“We are pleased with the double-digit topline growth, continued strong margin expansion and robust earnings growth we generated in the second quarter and for the first half of 2016,” Gregg Engles, WhiteWave’s chairman and CEO, said.

WhiteWave expects its $12.5bn sale to Danone, which was announced last month, to be completed by the end of the year. Of the takeover, Engles said yesterday: “This transaction represents an exciting next chapter of growth for WhiteWave as we bring together two companies with a shared mission of changing the way the world eats for the better.”

Click here for our analysis of how Danone’s planned takeover of WhiteWave will affect both companies.

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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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