Baking&Snack International - September 2012 - 1

September 2012

Vol. 1, No. 9

In this issue

2 4 6 14 16 18

Editorial United Biscuits Grupo Bimbo German Bread Market Ingredient Handling New Products

United Biscuits’ split offers opportunities for buyers W
by Ildikó Szalai ith no offers yet accepted for the full company, United Biscuits, Hayes, UK, finalized the split of the business into two units — salty snacks and biscuits — to realize greater value from any future divestment. Private equity owners Blackstone and PAI Partners put the company up for sale in 2010 for an estimated £2 billion (€2.5 billion; US$ 3 billion). Despite interest from companies such as China’s Bright Food and the United States’ Kellogg, Kraft Foods and Campbell Soup, there were no firm deals, and the company plans to start the auction of its salty snacks business at the end of summer.

United Biscuits’ salty snack business heavily relies on the UK for its sales. Despite this narrow reach, the salty snacks division expects positive future growth, which could be beneficial for buyers looking for a foothold in the region.
United Biscuits

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American Pan .................... 5
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Salty snacks offer dynamic reach
United Biscuits generates some 28% of its retail value sales in savory snack categories such as extruded snacks, chips/ crisps, nuts and tortilla/corn chips, while the rest of its sales are accounted for by biscuits and snack bars. In geographical terms, the company’s salty snacks are heavily reliant on the UK, which accounts for 85% of sales. Ireland tallies another 10%, which means the division’s geographical reach is very narrow. However, in terms of future growth prospects, the UK market is predicted to increase at a healthy 3% compound annual growth rate (CAGR) between

Hansaloy Corp ................... 3
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International Baking Industry Exposition (IBIE) ............. 19
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Kwik Lok Corp. ................ 20
www.kwiklok.com

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

Tanis Food Tec ................. 11
www.tanisfoodtec.com

2011 and 2016, expanding by US$1.2 billion (€1 billion) in absolute retail value terms. The company also has an established foothold in other Western European markets, namely France and Belgium, with both anticipating positive growth rates over the same period. However, savory snacks in Ireland are forecast to contract in the years leading up to 2016 given the country’s difficult economic situation. Of the potential bidders, Kellogg, Battle Creek, Michigan, US, is one of the most likely buyers. The company acquired Pringles earlier this year and Continued on Page 4 www.bsimagazine.com

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Baking&Snack International - September 2012

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