The Bonduelle Group says it has faced a structural decline in salad consumption in France and Germany for the past 10 years, a decline it says is exacerbated by inflation and increased competition from private labels.
That has led to a steady decline in the results of the fresh packaged salad business in these countries, according to a news release from the company, which announced several projects intended to protect the company’s long-term future:
- The resizing of Bonduelle Frais France, with a plan to streamline head office structures and cease operations at the Saint Mihiel site, with a search for a buyer.
- Exclusive negotiations with Les Crudettes, a LSDH Group company, to acquire its packaged salad business in France.
- Exclusive negotiations with Taylor Farms to acquire its packaged salad business in Germany.
These projects are necessary to preserve jobs within the Bonduelle Group’s sites in France and Europe, the release said. They will shift focus to Bonduelle’s other business operations to enable the group to continue accelerating its activities in the fresh delicatessen, canned and frozen food markets in these territories.
The Bonduelle Group said North American and Italian fresh businesses are not impacted by these projects, as they operate under different market dynamics and will continue to manage and develop their activities in both fresh-cut salad and delicatessen categories.
Should these transactions receive the necessary approvals, the Bonduelle Group said it is confident in the ability of the LSDH Group and Taylor Farms to turn around the business in their respective geographies.
In addition, the group is reviewing the value of its salad business assets in North America, the impact of which was recorded in the consolidated financial statements of June 30, 2024, the release said.
