Prepared-vegetable firm Bonduelle has announced plans to sell its packaged salad business in France and Germany.
The decision follows a decline in demand for its salad SKUs in both countries due to increased prices and competition from private labels, the company noted.
The company plans to downsize Bonduelle Frais France by streamlining head office structures and ceasing operations at the Saint Mihiel site while seeking a buyer for the facility.
It will also enter into exclusive negotiations with Les Crudettes, a subsidiary of LSDH Group, for the potential divestiture of its packaged salad business in France and with Taylor Farms for its business in Germany.
Preserve Jobs
Bonduelle added that the move will help preserve jobs within Bonduelle's sites in France and Europe.
It will also help the company to focus on growing its activities in the fresh delicatessen, canned and frozen food markets in the region.
Bonduelle has commenced negotiations related to the proposed divestiture and downsizing with employee representatives and aims to design and offer the best social support for those affected.
The company is confident that LSDH Group and Taylor Farms can turn around the business in their respective geographies.
The North American and Italian fresh business divisions are unaffected by this plan, Bonduelle noted.
However, the group is currently reviewing the value of its salad business assets in North America.
Both divisions will continue to manage and develop their activities in fresh-cut salad and delicatessen categories.
Earlier this month, Bonduelle reported a 2.7% increase in like-for-like revenue, to €2.4 billion, for its full financial year to 30 June 2024.
