Merger leaves supermarkets with a single supplier of freshly squeezed juice

An investigation by the competition regulator reveals the extent of concentration in the British food industry

When Hain Frozen Foods UK bought Orchard House Foods in December 2015, the deal was reviewed by the UK regulator, the Competition and Markets Authority (CMA). The two companies are the largest suppliers of freshly squeezed fruit juice in the UK, and the only two suppliers to supermarkets. (Other suppliers of freshly squeezed juices have limited sales to the catering sector.)

The CMA’s investigation concluded that in the absence of likely competition, the merged company would be the only supplier to the supermarkets, a situation which is obviously uncompetitive and could lead to higher prices for retailers and consumers.

To address its concerns, the CMA has required the company to provide 'acceptable undertakings' that the merger will not have these adverse consequences, or face an in-depth investigation by the Authority.

Read more about Sustain's work for a fair and transparent food supply here.

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Published Thursday 19 May 2016

Sustain: Sustain The alliance for better food and farming advocates food and agriculture policies and practices that enhance the health and welfare of people and animals, improve the working and living environment, enrich society and culture and promote equity.

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