Food Industry Set For Further Consolidation, According to just-food.com Survey

LONDON, June 24, 2014 /PRNewswire/ --

Half of the international food industry executives surveyed by just-food.com expect there will be more opportunities for M&A for their business this year - underlining the belief among industry watchers the sector is set for consolidation.

The takeover battle for US packaged meats group Hillshire Brands in recent weeks has highlighted the appetite among food companies to use M&A as means to grow.

Despite signs of economic recovery, food sales in many developed markets are under pressure amid profound changes to consumer habits including less household waste and more top-up shopping at smaller stores instead of weekly trips to larger outlets.

In just-food's annual Confidence Survey of the global food sector, 50% said they expected more M&A opportunities for their business in 2014 - up from the 36% who saw more chance for acquisitions in 2013.

"In markets where volume sales have been and still under pressure, and with interest rates remaining low, it is to be expected boardrooms will increasingly run the rule over potential acquisitions," just-food.com managing editor Dean Best says.

"Buying other businesses will be looked at as a way to boost the top line. However, the food industry is fragmented compared to other consumer products sectors and the consolidation in the industry from deal-making could also create savings to provide value for shareholders."

just-food.com attracts 87,000 packaged food industry executives every month, with a daily blend of food news, industry analysis, market research, reports and interviews.

The just-food.com Confidence Survey was taken at the end of the last financial year (March 2014) and surveyed senior industry executives on issues from consumer confidence, emerging markets, NPD and sustainability.

Best argues the battle for Hillshire indicates companies offering protein-based products could become attractive takeover targets.

"With sales stagnant and consumer habits fast evolving, food manufacturers are frantically looking for ways to grow. Consumer demand for protein is rising sharply and could put meat and dairy companies in the frame as companies study acquisition targets," he says.

Since 1999, just-food has provided in-depth analysis, insight, news and updates to the global food industry.

The site has just relaunched with new features and a new design, and is running a special offer for non-subscribers. Sign up now and get 30 days of full access to just-food.com for just GBP1, EUR1 or US$1 at http://www.just-food.com

About just-food.com 

Established in 1999, just-food.com is a leading online resource for the global food industry publishing around 20 news articles, analysis features and insights every working day. Under the direction of just-food managing editor Dean Best, its experienced team of journalists, consultants and analysts provides a unique blend of reports and interpretation of the sector, including key events, trends, interviews and research that is delivered to over 87,000 business executives per month.

Via its website, webinars and in-depth management briefings just-food offers insight into industry developments. Its CONSULT research platform offers flexible, custom research delivered by their team of experienced analysts.

For details of how just-food is "helping decision makers make decisions" visit http://www.just-food.com.

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SOURCE just-food.com