Group points to fall in salad consumption and increased competition from private labels as reasons for “steady decline” in the two markets
The Bonduelle Group has announced plans to sell its packaged salad businesses in France and Germany.
In a statement, it noted that it had seen a ”structural decline in salad consumption in France and Germany” over the past ten years.
This had been exacerbated by inflation and increased competition from private labels, leading to ”a steady decline in the results of the fresh packaged salad business” in the two countries.
As a result, Bonduelle outlined to the company’s employees and their representatives several projects designed to protect the company’s long-term future.
These included the resizing of Bonduelle Frais France, with a plan to streamline head office structures and cease operations at the Saint Mihiel site, with a search for a buyer; exclusive negotiations with Les Crudettes, a company of LSDH Group, for the acquisition of its packaged salad business in France; and exclusive negotiations with Taylor Farms for the acquisition of its packaged salad business in Germany.
”These projects are necessary to preserve jobs within the Bonduelle Group’s sites in France and Europe,” it explained.
”They will shift focus to Bonduelle’s other business operations to enable the group to continue accelerating its activities in the fresh delicatessen, canned and frozen food markets in these territories.”
Its North American and Italian fresh businesses were not impacted by the projects, Bonduelle emphasised, operating under different market dynamics and continuing to manage and develop activities in both fresh-cut salad and delicatessen categories.
Should they be confirmed, Bonduelle said it was confident in the ability of the LSDH Group and Taylor Farms to turn around the business in their respective geographies.
In addition, the group confirmed that it was currently reviewing the value of its salad business assets in North America.
