Tues 18th Nov, Park Plaza Westminster Bridge, London

NOMAD FOODS TO ACQUIRE FORTENOVA’S FROZEN FOOD BUSINESS GROUP

Posted on by Pete.Johnson@birdseye.co.uk

Further reinforces Nomad’s European frozen food leadership with multiple levers for value creation & synergies

Market leading brands Ledo and Frikom provide entry into attractive Central & Eastern European markets

Expect 2021 combined Adjusted EPS above $2.00 per share on an annualized basis

Expected to be high-single digit % accretive to Adjusted EPS in Year 1, before synergies

Nomad Foods Limited (NYSE: NOMD) announced that it has entered into an agreement to acquire Fortenova Group’s Frozen Food Business Group (FFBG) for aggregate consideration of approximately €615 million on a debt-free, cash free basis.

FFBG is a leading European frozen food portfolio operating in attractive markets new to Nomad, including Croatia, Serbia and Bosnia & Herzegovina, Hungary, Slovenia, Kosovo, North Macedonia and Montenegro. Its two anchor brands, Ledo and Frikom, have unparalleled consumer awareness and #1 market share in many of these markets and offer a broad range of frozen food products including fish, fruits, vegetables, ready meals, pastry and ice cream.

Stéfan Descheemaeker, Nomad Foods’ Chief Executive Officer, stated, “The acquisition of FFBG reinforces Nomad’s European frozen food leadership while strategically expanding our portfolio into attractive new markets and creating an exciting new category adjacency in ice cream. Like Birds Eye, Findus and iglo, Ledo and Frikom are institutions in their respective markets with strong consumer awareness and #1 market share. Similar to Nomad, FFBG is singularly focused on frozen food, a fantastic category that is aligned with consumer trends including convenience and sustainability. We plan to leverage our combined pan-European scale, commercial expertise and passion for frozen food while harnessing the unique local characteristics and traditions of FFBG’s brands.”

Noam Gottesman, Nomad Foods’ Co-Chairman and Founder, commented, “We are delighted to announce this acquisition, which is consistent with our growth strategy and builds on our five-year track record of top-tier shareholder value creation. This transaction provides a natural extension to our existing business and creates a new platform for future expansion within Central and Eastern Europe. It also introduces us to ice cream, an exciting new category which opens new potential avenues for growth. Following the acquisition, our annual revenue will approach €3 billion, nearly doubling the revenue base of Iglo Group, our initial anchor acquisition in 2015. We are proud of what we have accomplished so far, and we believe there is much more to come. We look forward to welcoming the FFBG team into the Nomad family.”

This acquisition is highly strategic and financially impactful for Nomad:

• Expansion into New and Attractive Central & Eastern European markets. FFBG is the leading frozen food company in several European markets, including Croatia, Serbia and Bosnia & Herzegovina, Hungary, Slovenia, Kosovo, North Macedonia and Montenegro. These are large and attractive markets where consumer demand for frozen food is developing, which creates a compelling long-term growth opportunity. Management expects FFBG’s organic growth to be in the mid-single digits range, double the 2-3% organic growth profile of Nomad’s existing business. The acquisition of FFBG will expand Nomad’s portfolio into this attractive region while creating a strategic platform for further expansion within Central & Eastern Europe.

• Ledo and Frikom Brands are the Clear Frozen Food Leaders. FFBG’s core brands, Ledo and Frikom, have strong consumer awareness and #1 market share in many of their respective markets. Ledo and Frikom share many of the same characteristics as Nomad’s existing power brands Birds Eye, Findus and iglo which are sold across Western Europe. As a result, FFBG’s brands stand to benefit from the commercial playbook that has enabled Nomad’s profitable growth to-date, including portfolio management, innovation, R&D, net revenue management, and media efficiency.

• Entry into Ice Cream Creates an Exciting New Product Adjacency and is Seasonally Complementary to Nomad’s Core Savory Portfolio. Ice Cream, a new category to Nomad, represents approximately 50% of FFBG’s revenues and will account for approximately 5% of the combined annual revenue base. This profitable category is highly synergistic with savory frozen food in FFBG’s core markets and provides Nomad with new category expertise. Further, the seasonal concentration of ice cream profits in the summer months will be seasonally complementary to Nomad’s existing frozen savory portfolio, which is skewed to the winter months, namely Q1 and Q4.

• Multiple Levers for Value Creation and Synergies. Management sees an opportunity to expand FFBG’s Adjusted EBITDA base by approximately 50%, partly driven by an estimated €15 million of annual run-rate synergies by 2024 through a combination of scale, operational excellence, commercial optimization, and expense management.

• Anticipate High-Single Digit % Accretion in Year 1 with 2021 Combined Annual Adjusted EPS Above $2.00 Per Share. FFBG is expected to generate annual revenue and Adjusted EBITDA of €279 million and €53 million, respectively in 2021. Management anticipates the transaction to enhance Nomad’s long-term organic revenue and Adjusted EBITDA growth profiles while also being high-single digit % accretive to Adjusted EPS in Year 1, before synergies. Combined 2021 Adjusted EPS is expected to exceed $2.00 per share on an annualized basis.

• Firmly Aligned with Management’s Disciplined Acquisition Criteria. The acquisition of FFBG aligns with management’s articulated strategy of expanding Nomad’s frozen food portfolio into new geographies, categories and channels. FFBG has a market leading position, an attractive growth profile and generates strong cash flow consistent with Nomad’s investment criteria. Furthermore, the implied transaction multiple of under 10x EBITDA, including run-rate synergies, reflects the Company’s commitment to valuation discipline.

Management intends to update guidance on the combined entities for the current year upon closing of the transaction, which is expected to be completed during the third quarter of 2021 subject to approval of a majority of the depositary receipt holders of the ultimate parent of the seller and satisfactions of other certain closing conditions. The purchase price is expected to be funded through cash on hand and debt. The transaction has been unanimously approved by the board of directors of the seller which consists of representatives of more than a majority of the depositary receipt holders of the ultimate parent of the seller.

Morgan Stanley acted as financial advisor and Norton Rose Fulbright, Divjak Topic Bahtijarevic & Krka Law Firm and BDK Advokati are acting as legal advisors to Nomad Foods on the transaction.

Conference Call and Webcast
The Company will host a conference call with members of the executive management team to discuss the transaction today, Monday, March 29, 2021 at 1:30 p.m. BST (8:30 a.m. Eastern Daylight Time). Investors interested in participating in the live call can dial +1-877-451-6152 from North America. International callers can dial +1-201-389-0879.

BRAKES LAUNCHES HELP FOR HOSPITALITY CAMPAIGN

Posted on by clare.twiss@brake.co.uk

10% cash back on key categories and 3,500+ price cuts aim to help hospitality get back to business

Brakes, the UK’s leading foodservice wholesaler, has launched a wide-reaching new campaign designed to help get hospitality customers back on their feet, once able to reopen after the current nationwide lockdown.

The campaign is the most extensive Brakes has ever run, and was informed by extensive research into what matters most to hospitality customers. It aims to put money back in the pockets of hard-pressed hospitality businesses who have had to weather an unprecedented storm created by the Coronavirus. It comprises more than 3,500 price cuts, a ‘cash back’ style scheme that can help reward businesses and bespoke promotions, all complemented by support for some of the UK’s leading hospitality charities.

Paul Nieduszynski, Commercial Director, Brakes, said: “Hospitality is a crucial component of the UK economy and a beloved part of life in Britain that has been dearly missed while closed during lockdown. With the market on the cusp of reopening, the coming weeks will be a critical moment, as outlets up and down the country prepare to welcome customers back, after one of the most difficult periods in our history.

“The team at Brakes felt strongly that we had to play our part, by providing help for the UK hospitality industry. That’s why we’ve invested millions in this campaign, so we can offer help right where it’s needed. Our aim is to put pounds back in the pockets of publicans, restaurateurs or any business that serves food.”

Brakes has undertaken regular customer research throughout the pandemic. Its recent studies have shown that, as the nation exits lockdown, its customers wanted to save money, have reliable service and product available, alongside quality food products and the campaign has been designed with this in mind.

During the campaign, which is available to all independent businesses, customers will benefit from at least 10% cashback on key categories including Chilled Meat & Poultry, Fresh Produce, Wine & Champagne and Catering Supplies & Equipment lines.  Outlets can choose to save money on future purchases, get cash back in the form of vouchers that can be used in the business or to reward staff, or choose to lend their support to one of a list of charities that includes Hospitality Action, Springboard or Hospitality Health, as well as Meals & More, Brakes’ charity which aims to eliminate child food hunger.

Steps Brakes is taking to provide help for hospitality customers include:

  • Expert support on areas including menus, to make the most of Brakes’ award-winning food range; advice to drive footfall and make the most of every food occasion, including outdoor dining; and re-opening checklists
  • More than 3,500 price reductions, with many prices held for six months to provide stability and peace of mind for customers
  • Following earlier announcements, customers are no longer required to meet Minimum Order Value
  • Stringent hygiene & social distancing measures in place among Brakes staff, ensuring the wellbeing of employees and guests at customer sites. This includes contactless payments and contact-free deliveries

Customers will be able to identify the products that will bring them the maximum benefit through a new microsite, brakescashback.co.uk, built using leading-edge technology.

THE REDUNDANCY SUPPORT SERVICE FOR APPRENTICES

Posted on by Neesha Ramsingh-Cleary

We know that the Covid-19 outbreak has had a seismic effect on the economy, and that some apprentices have been made redundant without completing their apprenticeships, while others are at risk of redundancy. To help these apprentices the Department for Education have recently launched the Redundancy Support Service for Apprentices.

The service provides clear, accessible advice and guidance to individuals on the impact of redundancy, their options and next steps. There will also be opportunities to help redundant apprentices to identify new apprenticeship and employment opportunities, and, where they are eligible, complete their current apprenticeship.

The service is made up of three main elements:

  • Providing apprentices with advice and guidance on the impact of redundancy
  • Signposting apprentices to local and national support services
  • An apprenticeship vacancy sharing service to make redundant apprentices aware of new opportunities

If you are aware of any employers who would like to recruit a redundant apprentice or offer new apprenticeship opportunities, please ask them to visit Hiring an apprentice who has been made redundant or call 0800 015 0600 to find out more.

If you are aware of any apprentices who have been made redundant please encourage them to visit Facing redundancy during your apprenticeship or call 0800 015 0400 to speak to an adviser.

You can also watch our YouTube video for more information.

 

 

CHANGES TO SINGLE USE CARRIER BAGS CHARGES FROM SPRING

Posted on by Neesha Ramsingh-Cleary

As announced last August in Defra’s consultation response, changes are being made to the Single-Use Carrier Bag Charge this Spring.

According to Defra, since its introduction, the use of carrier bags in the main supermarkets has reduced by 95%. They are therefore keen to build on this success.

The Single Use Carrier Bags Charges (England) (Amendment) Order 2021 will make the following changes:

  • The minimum amount that sellers must charge for a single use carrier bag (SUCB) will increase from 5 pence to 10 pence.
  • The obligation to charge for SUCB will be extended to all retailers and the exemption for airport retailers from charging for SUCB will be removed.
  • The current “sunset clause” will be removed.
  • Provisions relating to the review of the 2015 Order and excluded bags will be updated.

Reporting requirements on the number of SUCB sold annually will not be extended to micro, small and medium sized enterprises (those with less than 250 employees), in order to minimise additional burdens.

This Statutory Instrument (SI) has been laid before parliament and a copy of the SI and associated documents can be accessed here: https://www.legislation.gov.uk/ukdsi/2021/9780348220919/contents.

Subject to parliamentary approval, this SI will come into force the day after the day on which it is made. It is anticipated this will be at the end of April, or early May.

 

AMERICAN RANCH FOODS LOOK TO FURTHER GROWTH AS SALES OF FROZEN CHICKEN PRODUCTS SOAR BY 70% DURING LOCKDOWN

Posted on by Lewis Wantling

Recognised for its ranch style chicken range, the frozen food brand which only launched in 2019, has seen sales soar by 70% over the last year as demand for frozen food continues to increase. 

According to a  new report, the UK has become a nation of frozen food fans as the Covid-19 pandemic has changed the way Britons shop for their groceries.

The Frozen Food Report by the British Frozen Food Federation (BFFF) suggests that consumers are shopping online more and have bought more frozen food than ever before.

American Ranch offers a range of frozen chicken products including burgers, nuggets, wings, goujons and fillets. Sales of its chicken nuggets in particular are up by 34% year on year.

Consumer demand for the brand’s products have soared with its list of stockists trebling from three in 2020, to 10 in 2021 with stockists including the likes of B&M & Heron Foods. American Ranch also recently agreed a deal to supply over 300 Spar stores in the Midlands and South West.

The Frozen Food Report also states that in 2020, shoppers spent an extra £872 million on frozen food due to a lower frequency of shopping trips and the added convenience of frozen goods.* This can be seen in American Ranch’s success with an impressive turnover in just its second year of trading.

Alex Wantling, Foods Retail Manager at American Ranch commented: “The demand for frozen food is increasing rapidly as families change the way they shop and look to enjoy great tasting food on a budget.

“People rely on products like ours as they are well priced and a quick and easy choice that caters to busy family life. People are also increasingly looking to shop more sensibly to help keep costs and food wastage to a minimum, which makes frozen food a great choice for the sustainable shopper.

“We have put significant investment into ensuring we are offering the best possible quality ingredients and this is something that really sets American Ranch apart from competitors. We have also created a strong marketing campaign to push the brand. These two factors combined have helped us to secure deals with some of the UK’s biggest retailers.

“As a young brand versus those with a huge heritage we are incredibly pleased with how things are going. We are seeing a very exciting curve in the frozen food market right now and this is reflected in continued interest from new stockists.”

For more information on American Ranch, please visit: https://americanranchfoods.com

BRAKES RETAINS SUSTAINABLE SUPPLIER OF THE YEAR AT THE FOOTPRINT AWARDS

Posted on by clare.twiss@brake.co.uk

The 2ZERO20 pledge to remove black plastic packaging initiative, community support programme and waste reduction programmes were among the key reasons that saw Brakes, the UK’s leading foodservice supplier, scoop the Sustainable Supplier of the Year at the 2020 Footprint Awards, for the second consecutive year.

The judges praised Brakes’ holistic approach to CSR as it retained the award it first won in 2019.

Janice Rockwell, CSR lead at Brakes, said: “Winning this prestigious award for the second year running highlights how integral CSR has become to our business.  Our CSR Council is drawn from across the business and puts the microscope on every aspect of our business as we look to continuously improve what we do.

“While we’ve taken the lead and driven the sustainability agenda through our own initiatives, working in partnership with our suppliers, including packaging, transport and waste, we would welcome the industry working together as that’s how we will gain maximum environmental benefit and create long-term change.”

In alignment with parent company, Sysco, the world’s leading foodservice distributor, Brakes strives to deliver superior products and services to customers in a way that balances the needs of people, products and planet.  This approach was central to Brakes’ success at the Footprint Awards, with judges recognising initiatives that included:

  • Brakes 2ZERO20 campaign, which saw the company remove all hard-to-recycle black plastics from its supply chain, equating to more than 1,000 tonnes a year.
  • The roll out of a new refrigeration system to smaller depots, saving 225 tonnes of carbon
  • Becoming the first wholesaler to offer RSPO-accredited palm oil products
  • Initiatives to reduce waste and improve recycling across the business.

Collecting the award on behalf of Brakes, CSR Council Member, Tori Hickson, said: “All our colleagues will be so proud that we’ve retained this hugely meaningful award, and that in such a difficult year we never reduced our focus on our CSR goals.”

 

WRAP FOOD WASTE ROADMAP – UPDATE AND FUTURE PLANS

Posted on by Neesha Ramsingh-Cleary

The UK Food Waste Reduction Roadmap was launched in September 2018, initially with the support of 70 large UK food Businesses, including all the major UK retailers, brand manufacturers and own label producers. By March this year, the number has supports has increased to 240, of which 84% have implemented a best practice ‘Target, Measure & Act’ (TMA) approach in their UK operations.

WRAP continues to develop new Roadmap resources, to help businesses to measure and report their food surplus and waste consistently, and with confidence. Recent additions to their guidance include how to measure ‘food waste discharged to sewer’ and a toolkit to advise businesses on how to deliver ‘Whole Chain Food Waste Reduction Plan’ projects by adopting a farm to fork approach.

WRAP have also published over 50 food surplus and waste case studies on their website, these can be viewed by clicking on the link here. The UK Food Waste Reduction initiative has so far resulted in a 17% reduction in food waste, which equates to 180kt, with a value of over £300m.

All the FWR Roadmap resources are free to download and use and if your business is interested in signing to the Roadmap, and being publicly recognised on the WRAP website, please contact Ian Bowles at this email ian.bowles@wrap.org.uk

THE BEST NEW DESSERT/ICE CREAM/CONFECTIONERY FOODSERVICE PRODUCT SPONSORED BY XPO LOGISTICS

Posted on by Neesha Ramsingh-Cleary

Welcome to the announcement for the Best New Dessert/Ice Cream/Confectionery Foodservice Product in the 2020 – 2021 British Frozen Food Awards sponsored by XPO Logistics.

The First Shortlisted Company

Congratulations to the Blackcurrant & Clotted Cream Ice Cream from Bidfood. Our judging panels thought; Delicious. Fresh blackcurrant flavours permeates and the richness of the clotted cream lingers on the palette.

Bidfood commented; “As avid supporters of the BFFF, Bidfood are honoured to have shortlisted for the Best New Dessert/Ice Cream/Confectionery Product with our Blackcurrant & Clotted Cream Ice Cream. We wish the best of luck to all entrants and look forward to the results announcement.”

The Second Shortlisted Company

Congratulations to the Baked Creme Brulee Cheesecake Tart (Gluten Free) from the Premium Selection range at Bidfood. Our judging panels thought the product; looked stunning when it arrived to the table, lightness of crumb and the Creme Brulee top looks lovely and glazed, the filling has a satisfying wobble.

Bidfood commented; “As avid supporters of the BFFF, Bidfood are honoured to have shortlisted for the Best New Desserts/Ice Cream/Confectionery Product with our Baked Crème Brulee Cheesecake Tart (Gluten Free). We wish the best of luck to all entrants and look forward to the results announcement.”

XPO Logistics Banner

The Third Shortlisted Company

Congratulations to the Sticky Toffee Pudding from Brakes. Our judging panels thought the product had; Good product, easy to use and serve, good texture, light and fluffy.

Brakes commented; “We always look forward to the BFFF Frozen Food Awards and we’re delighted to see Brakes products across such a wide array of categories shortlisted. We’re passionate about food and this is a fantastic endorsement of the innovation and quality of our frozen range. This is even more meaningful at a time when many of our customers are taking a fresh look at frozen, as a solution for the market unpredictability that has resulted from the Coronavirus pandemic.”

The Fourth Shortlisted Company

Congratulations to the Pear & Caramel Cheesecake from Brakes. Our judging panels thought the product had; Loved the innovation of the pear puree on the base and the filling resting on top, nice texture transition between cheesecake/fruit/biscuit base.

Congratulations to all our shortlisted companies and commiseration to the rest of the category product entries. The BFFF look forward to announcing more category shortlists, they will be released once a week until start of April 2021.

XPO Logistics BannerThank you to our Category Sponsor XPO Logistics