www.rollits.com www.rollits.com Page 5 Page 6 www.rollits.com June 2011 • Kraft Foods has sued Indian biscuit Month by month maker Britannia Industries for Food Group Newsletter Rollits’ food deals trademark violation. The action in the guide to mergers Delhi High Court alleged that the owners decided the business needed a Indian company’s Treat-O biscuit is a and acquisitions level of financial muscle and global reach News bites copy of Kraft’s Oreo cookies, using they could not provide, certainly if the recognised characteristics such as Changing of the guard for UK food industry continued… business was to continue at the levels of florets and inner rings. Oreo was growth enjoyed over the past years. registered in India in 1991. Looking back to our Newsletter of April 2008, that was when I first June 2011 After 74-year-old Woodhead Bakery went A number of suitors were considered June 2011 commented on the credit crunch, soaring food prices, the impact but the owners decided upon Olam as • Although not directly food-related, this into administration, the Scarborough of greener fuels on world food shortages and the end of decades bakery and 11 shops were sold to Bakery being the most compatible with their item may be of interest to football fans Products, part of Haldane Retail Group, objective of securing the long term (who eat lots of pies). A Rollits team of cheap food. Three years further on, the rise in global commodity headed by Senior Partner, Steve Trynka, Food Group Newsletter Food Group whilst another 18 shops were sold to local success of the business.” Newsletter Food Group prices is no short-term blip and billions of dollars have been made retail bakers, Coopland & Son supported by corporate colleagues by speculators pushing up world food prices to record highs. (Scarborough) (see Rollits’ food deals). Nasim Sharf and John Flanagan, Rollits’ Property Partner, Glenn Craft, advised the new owners of This is presenting huge difficulties for UK another example of a highly responsive, Another business going into advised Cranswick plc on acquiring the Championship team Hull City in a food manufacturers as they attempt to fast-moving food company which has administration was Loseley Dairy Ice freehold of its cooked meats deal which completed shortly before recover cost increases from their major given its major customers what they Cream but its brands were bought by manufacturing facility near Barnsley for Christmas 2010. Steve Trynka said: retail, food service and industrial wanted. Prior to Northern Foods’ ice cream maker Beechdean. £7.3m in line with the company’s policy Rollits’ Corporate Finance Partner, Julian “Rollits was pleased to work with customers. At best price increases may demerger of Express Dairies in 1998, when to own sites. Browne’s the Chocolatiere in Okehampton Wild, and Corporate Partner, Nasim Sharf, Assem and Ehab Allam to secure be too little, too late and at worst it had sales of £2bn, it would have been April came to a conclusion with the emerged in the ownership of Joe Keohane worked with former Glisten Plc Marketing control of Hull City Football Club requests for necessary price rises are met hard to imagine that just thirteen years following many weeks of negotiation announcement that Robert Schofield is to and Nick Baker, former managers of Director, David Coulson, on his significant Rollits’ Planning & Development Partner, with a point blank refusal. All too often later Northern Foods would firstly be and due diligence. We wish them much retire after nearly ten years as Chief recently-sold Sharp’s Brewery. The new personal investment in East Sussex-based John Downing, and Corporate Partner, these negotiations end up with a stand- looking to merge with Greencore and then owners bought the assets of Browne’s success in taking the club forward and Executive of Premier Foods, bringing to an Higher Nature, a manufacturer of natural Nasim Sharf, provided legal advice to off which is only resolved by the supplier succumb to a cash offer from Mr Boparan. Chocolates in liquidation. hopefully back to the Premier League”. end another remarkable chapter in the UK dietary supplements. Mr Coulson took GWE Biogas, which opened a new £10m refusing to supply. The Tigers climbed the table in the In the 1970s and 1980s under the late food industry. The business began as Tate & Lyle announced the sale of its over as Chief Executive of Higher Nature biogas plant near Driffield. The facility will second half of the season but just Some of the leaner, fitter manufacturers Nicholas Horsley and his brother-in-law Hillsdown Holdings, acquired Premier Vietnamese sugar business to TH Milk in December 2010, with Brian Wright use around 50,000 tonnes of food waste missed out on a play-off place. But Brands, bought ambient businesses from for £33m. becoming Chairman. Higher Nature is every year to generate 2.1 megawatts of have coped well, shown greater flexibility Chris (now Lord) Haskins, Northern Foods there is always next season… Nestlé and Kraft, then acquired the UK backed by Matrix Private Equity and electricity – enough to power more than and been more responsive to the was the most innovative UK food and Irish operations of Campbell’s before Maven Capital Partners. 3,200 homes. requirements of the market place. Leading company, which in conjunction with Marks in 2007 completing the fateful takeover of • The latest grocery share figures from • Grocery inflation stands at 4.3% for food producers like Cranswick, Samworth & Spencer pioneered the convenience Mr Wright said: “David’s appointment This is one of the latest developments RHM for £1.2bn. Premier became the Kantar Worldpanel for the 12 weeks the 12 week period ending 17 April Brothers, Kanes and Warburtons have food revolution in the UK and ultimately will underpin the next important stage since East Yorkshire and the Humber Information leading UK food manufacturer with a ending 17 April 2011 showed strong 2011. This is the fifth successive been quick on their feet and performed built annual sales of £500m with that one for the business and the leadership and area became a major centre for the stable of household brands, but was performances from the German-owned increase and remains ahead of If you have any queries on any articles in well in some tough sectors of the food customer alone. direction he brings will allow us to renewables industry, a sector in which this newsletter please contact: burdened with a mountain of debt which, discounters Aldi and Lidl with year-on- grocery market growth of 3.6%. industry. They share the same four continue to develop in an increasingly Rollits specialises. Julian Wild on +44 (0) 1482 337304 or Just as Northern Foods started life as despite a programme of disposals, has year sales increases of 15% and 14.7% email [email protected] outstanding features: well-invested competitive market place.” Northern Dairies (strong in the North of ultimately proved crippling. What does the respectively. Both retailers also achieved • The Cornish Pasty, crimped on one factories, great products, excellent This newsletter is for the use of clients England) and grew into a much broader future hold for Premier? Rollits’ Corporate Finance Partner, Julian all-time record market shares of 3.3% for side rather than on top, and Traditional and will be supplied to others on request. customers and terrific management. That’s food company, Uniq started life as United Rollits’ Senior Partner, Steve Trynka, Wild, and Corporate Partner, Nasim Sharf, Aldi and 2.6% for Lidl. Cumberland Sausage have gained It is for general guidance only. It provides an unbeatable combination. All of them useful information in a concise form. Dairies (strong in the South of England), In the meantime, as our usual month by advised the shareholders of Britannia supported by Property Partner, Glenn Protected Geographical Indication have made the hugely difficult transition Action should not be taken without which merged with Cow & Gate in 1959 month guide to food M&A reveals, the Food Ingredients, based at Goole in East Craft, advised Coopland & Son • After the discounters, the next highest (PGI) status. from being medium-sized food businesses obtaining specific advice. We hope you to become Unigate. There is a strange big multinationals gallop on relentlessly in Yorkshire, on the sale of the company to (Scarborough) on the purchase of 18 grocery growth was posted by Waitrose have found this newsletter useful. If, into being large companies, turning over • Lincolnshire-based Kenyon irony that, in the same month as their bid for global domination. Just pick Nestlé extended its operations in China with Singaporean-owned Olam International, a retail bakery shops from the administrator at 7.7%, but major share growth however, you do not wish to receive hundreds of millions of pounds and further mailings from us, please write to Northern Foods was taken over, Uniq out the number of investments made in global processor of agricultural products remained elusive for the top four retailers Communications, which established making excellent profits, much of which is the acquisition of a 60% stake in Yinlu of Woodhead Bakery in Scarborough. Mrs. Pat Coyle, Rollits, Wilberforce Court, the last few months by Cargill, Lactalis and in this period with only Morrisons out- the British Pie awards two years ago ploughed back into their businesses. should be put up for sale by its pension Foods Group, makers of peanut milk and and food ingredients. High Street, Hull HU1 1YJ. Nestlé, particularly in the Far East, South rice porridge. The shops cover a wide geographical performing the market to lift share from and is one of the leading out-of- fund, which was obliged to take over 90% The law is stated as at 25 May 2011.