Consolidation 'likely' in meat, fish and poultry sectors
UK - New research has revealed that suppliers of fruit and vegetables and fresh meat, fish and poultry are the most likely sectors to experience consolidation within the UK food industry.At the opposite end of the spectrum, the least likely sectors for consolidation within the UK food market are the fruit squash, sugar and sweeteners, and preserve sectors.
The Food Sector Consolidation Index, an independent analysis of over 35 sectors within the UK food market has also identified the snacks and crisps, frozen savoury, prepared salads and frozen desert sectors as likely subjects of consolidation in the next 12 months.
The survey was carried out by business and financial advisers Grant Thornton in conjunction with Inflexion Private Equity and Axis Consulting.
David Cockburn, director at Grant Thornton Corporate Finance, said: "Consolidation through mergers and acquisitions or portfolio re-alignments, and through company failures, has been a feature of the food industry for over 100 years.
"As external factors such as demographic changes, retailer price pressures and increased competition from overseas imports make themselves felt, food suppliers are having to make their business strategies increasingly innovative and cost-effective.
Source: This Is North Scotland
19 December 2005
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