Group cites declining salad consumption and increasing competition from private labels as reasons for “steady decline” in the two markets
The Bonduelle Group has announced plans to sell its packaged salads business in France and Germany.
In a statement, it was said that a “structural decline in salad consumption in France and Germany” had been observed over the past ten years.
This situation has been exacerbated by inflation and increasing competition from private labels, which has led to “a steady decline in the results of the freshly packaged salads business” in both countries.
Bonduelle then presented the company’s employees and their representatives with several projects designed to secure the company’s long-term future.
These included the resizing of Bonduelle Frais France with a plan to streamline the head office structures and close operations at the Saint Mihiel site, while seeking a buyer; exclusive negotiations with Les Crudettes, a company of the LSDH Group, to take over the packaged salads business in France; and exclusive negotiations with Taylor Farms to take over the packaged salads business in Germany.
“These projects are necessary to preserve jobs at the Bonduelle Group’s sites in France and Europe,” it said.
“They will shift their focus to Bonduelle’s other business activities to enable the group to further develop its activities in the fresh delicatessen, canned and frozen food markets in these territories.”
The company’s North American and Italian fresh produce businesses are not affected by the projects, Bonduelle stressed. The company operates in different market dynamics and continues to manage and develop its activities in the fresh salads and delicatessen categories.
If the resolutions are confirmed, Bonduelle is confident that the LSDH Group and Taylor Farms will be able to achieve a turnaround in their respective regions.
The company also confirmed that it is currently reviewing the value of its salad businesses in North America.