American Psychological Association

American Psychological Association

(American Psychological Assoc.)
References
Food. (2011). Australia Food & Drink Report, (3), 43-50.

Australia Food & Drink Report Q3 2011
© Business Monitor International Ltd Page 43  
Food  
Key Industry Trends And Developments
Flurry Of Inbound Investments Intensifies
Swiss food leader Nestlé   completed the acquisition of Jenny Craig in Australia and New Zealand at the
start of 2011. Nestlé began the takeover of Jenny Craig, an organisation offering weight-loss programmes,
in 2006 and the acquisition of the Australian and New Zealand operations will complete the global
process. Despite seeking a stronger presence in high-growth international markets – along with most of its
multinational counterparts – mature food and beverage markets remain integral to Nestlé’s short- to
medium-term profitability. The focus of activities is, however, clearly shifting towards high-margin
product sectors such as nutrition and health, with Nestlé increasingly divesting traditional and mature
product sectors in the country.
US food group General Mills will purchase Australia’s Italian food specialist Pasta Master, Just Food
reports. The deal is expected to be completed by March 2011. General Mills’ major weakness is its
comparative lack of exposure in higher-growth markets – BMI estimates the firm generates around 10%
of its sales in emerging markets – which compares unfavourably to some of its peers including Nestlé,
Unilever and Kraft. BMI would expect General Mills to continue ramping up its presence in overseas
markets over the coming years and to take its leading brands to these higher-growth markets.
Spanish food group Ebro Puleva has bought Australian rice producer Ricegrowers, Just Food reports.
Ebro completed the purchase for a AUS600mn (US$578) total, but also signed a number of agreements
over the ways in which Ricegrowers would be run from now on, including a commitment to future
research and development. It was...