Bonduelle, a leading player in the fruit and vegetable sector, has announced plans to divest its packaged salad businesses in France and Germany. On August 29, the company reported a notable “structural decline” in salad consumption across these markets, a trend exacerbated by inflation and rising competition from private label products over the past decade.
As part of this restructuring, Bonduelle will downsize Bonduelle Frais France and is set to “streamline head office structures,” which includes ceasing operations at its Saint Mihiel site. The company is actively seeking a buyer for this division.
Furthermore, Bonduelle is currently engaged in “exclusive negotiations” to sell its packaged salad segment in France to Les Crudettes, a subsidiary of the French food and beverage entity LSDH Group. In Germany, US-based Taylor Farms is exploring the possibility of acquiring Bonduelle’s salad operations.
Bonduelle emphasized that these efforts are essential to safeguard jobs within the company’s sites in France and across Europe. The restructuring aims to realign focus on Bonduelle’s other business areas, thus supporting the group’s continued growth in the fresh delicatessen, canned, and frozen food markets in these regions.
Turning to the broader implications, Bonduelle did not specify the number of jobs that would be affected by these changes. However, it confirmed that its North American and Italian fresh businesses “are not impacted by these projects.” The company also indicated that it is in the process of “currently reviewing the value of its salad business assets in North America.”
In its full-year financial results for the period ending June 30, 2024, Bonduelle’s fresh processed division reported a 3.3% decline in revenues on a like-for-like basis, totaling €948.6 million. Addressing its European operations, Bonduelle noted that “business activity suffered in quarter four and, particularly in June, from poor weather and an unfavorable base effect compared to the same period last year.” Conversely, during this period, its salad segments in Italy and other fresh prepared segments exhibited growth.
Earlier this year, Bonduelle was among eleven food companies fined for misleading practices regarding bisphenol A (BPA) in their packaging, as confirmed by France’s competition authority. The company faced a penalty of €2.9 million ($3.2 million) for its involvement in a cartel with three French food canning associations.
In conclusion, as the food and beverage industry evolves amid changing consumer trends and economic challenges, Bonduelle is taking decisive steps to ensure its competitive positioning and to adapt to the shifting dynamics in the food and drink business. The company’s focus on strategic divestitures reflects its commitment to maintaining agility in the face of these ongoing industry developments.
