French poultry group LDC is in exclusive talks with Avril Group to acquire its egg packaging business for mass distribution and catering, Matines, according to a report in the French publication Le Figaro.
Matines has been running in losses for several years and Avril Group announced a planned shutdown of its operations in June of this year, within the framework of a voluntary procedure.
LDC plans to take over the Matines brand, which sold 250 million units in 2021 with turnover amounting to €43 million.
It will provide producers with outlets for eggs sold until now under the Matines brand and exclude those that Avril marketed under private labels, which comprises 75% of the eggs handled by Matines.
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'Alternative' Eggs
The acquisition will help LDC consolidate its presence in the 'alternative' egg segment, focusing on eggs from cage-free farms and farms that implement other animal welfare measures, or offer organic eggs.
Currently, Matines sources 53% of its eggs from such farms and has pledged to eliminate eggs from caged hens by 2025, the report noted.
If the takeover of Matines succeeds, LDC will have a 42% share in the branded organic egg segment in France and strengthen its position (21%) in the free-range egg segment.
Last year, the poultry group said it was looking at European acquisitions in or around markets where it is already present as part of its growth strategy.
© 2022 European Supermarket Magazine. Article by Dayeeta Das. For more A-Brands news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.
