Bonduelle Announces Sale of Salad Business in France and Germany Due to Competition from White Labels – Executive Summary

French multinational Bonduelle has confirmed that it is in exclusive negotiations with Les Crudettes, a subsidiary of the LSDH group, to sell its packaged salad business in France, and with Taylor Farms to sell its subsidiary in Germany. This decision comes after a decade marked by a “structural decline in consumption” of these products in both countries, exacerbated by inflation and increasing competition from white brands.

If the transactions are confirmed, subject to necessary regulatory approvals, Bondil expects that LSDH and Taylor Farms will be able to activate these businesses in their respective geographies.

In addition to these negotiations, Bonduel also announced a restructuring at Bonduel Fraisse France, which includes a plan to rationalize the central headquarters structures and close operations at the Saint-Mihiel plant, for which a buyer will be sought. According to the company, these measures are necessary to preserve jobs at Bonduel Group plants in France and Europe.

In a statement reported by eEconomista, Christophe Bondil, the company's representative, confirmed that Bondil's strategy includes “returning to local production in Spain”, highlighting the group's intention to focus on other operations, such as fresh produce, canned, preserved and frozen foods, to continue growing in these sectors.

However, the fresh produce businesses in North America and Italy will not be affected by these changes, as they operate in markets with different dynamics. Bonduelle plans to continue managing and developing activities in these regions, both in the ready-to-eat fresh salads segment and in individual meals with cold cuts. The company also indicated that it is reviewing the value of its assets in the salad business in North America, the impact of which will be reflected in the consolidated financial results as of June 30, 2024.

Finally, Bondil explained that it has already begun talks and consultations with workers' representatives, which are expected to continue in the coming weeks, as part of the ongoing restructuring process.