Is Further Restructuring Likely in the European Food and Drinks Industry?

Abstract

Consider the question posed in the title from the viewpoint of an investment banker based with J.P. Morgan, who has advised clients in the food and drinks industry over various transactions. Reviews past activity in mergers and acquisitions as a need for consolidation to gain market advantage and economics of scale; and access into the wider European market. Advises that further restructuring and consolidation is necessary and inevitable in an industry which is still fragmented; and that acquiring products and brands which are market leaders is still a better option than trying to create new ones. Considers in depth the influencing factors and the opportunities to possess focused product portfolios, category leadership and pan‐European markets. Draws on examples of major companies which have practical sound acquisition strategies, fast de‐leveraging after acquisition and created long‐term shareholder value.

Citation

Diederichs, K. (1993), "Is Further Restructuring Likely in the European Food and Drinks Industry?", British Food Journal, Vol. 95 No. 4, pp. 3-8. https://doi.org/10.1108/00070709310038020