Baking&Snack International - July 2012 - 1

July 2012

Vol. 1, No. 7

In this issue

2 4 6 12 14 16

Editorial Bright Food iba preview Bar flavors Sweeteners New Products

Bright Food stakes a claim in Europe
by Ildiko Szalai

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American Pan .................... 5
www.americanpan.com

right Food, one of China’s top 10 food and drinks manufacturers, is the first major Chinese company to make a significant food acquisition in Western Europe, signaling its ambition — and financial ability — to become a truly international player. The company, based in Shanghai, recently acquired a 60% stake in UK breakfast cereal manufacturer Weetabix Ltd., Burton Latimer, UK, for £1.2 billion (€1.5 billion; US$1.9 billion) including debt. This move shows that successful emerging market companies are no longer content to compete only their domestic market but also want to enlarge their consumer base in affluent developed markets.

In Europe, growing cereal markets ideal for expansion by Weetabix and its new owner, Chinese company Bright Food, include Norway, Denmark, Nigeria, Saudi Arabia and India.
Weetabix

Gaining a foothold in Europe
Owned by private equity group Lion Capital, which retains the remaining 40% stake in the business, Weetabix Ltd. is the sixth-largest breakfast cereal manufacturer in the world and the second-largest in its domestic UK market, where it generates more than 70% of its retail value sales. Ireland is the company’s second-largest national market, accounting for 7% of the company’s sales. In continental Europe, the two most significant markets for Weetabix are Finland and France, although the company has established a foothold in most Western European markets including Norway, Germany and Portugal.

Hansaloy Corp ................... 3
www.hansaloy.com

International Baking Industry Exposition (IBIE) ............. 11
www.ibie2013.com

Kwik Lok Corp. ................ 17
www.kwiklok.com

ShickUSA Corp.................. 9
www.shickusa.com

In terms of growth potential in core Western European markets, the breakfast cereal category is expected to perform moderately. Both the UK and Irish breakfast cereal markets are forecast to register less than a 1% compound annual growth rate (CAGR) over 2011-16. In absolute retail value terms, the two combined will account for 28% of regional growth. The best performing market over this period in Western Europe will be Spain with a 4% CAGR (2011-16), gaining an additional US$100 million (€79 million) in absolute retail value terms. Other dynamically growing Western European markets, albeit from a smaller base, will be Norway and Denmark. These would be ideal expansion target markets for Continued on Page 4 www.bsimagazine.com

http://www.americanpan.com http://www.hansaloy.com http://www.ibie2013.com http://www.kwiklok.com http://www.shickusa.com http://www.bsimagazine.com

Baking&Snack International - July 2012

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