UK food group Boparan Holdings is considering selling its Avana Bakeries’ Christmas pudding business to assuage competition concerns over its GBP30m acquisition of Brookes Avana from Premier Foods plc.
Boparan, the parent company of 2 Sisters Food Group, took control of the Matthew Walker Christmas pudding business following its takeover of Northern Foods last year.
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According the the UK’s Office of Fair Trading, the potential merger of the two businesses presents a competition concern because it would bring together the UK’s two largest suppliers of Christmas puddings.
A spokesperson for the OFT told just-food the scale of the two businesses, coupled with the seasonal nature of the market, could result in price increases for consumers.
“The vast majority of the country’s Christmas pudding production would be located in one company’s hands. This could mean less competition in the market because the firm would effectively have a monopoly over supply,” the spokesperson said.
Boparan said that it is “considering its options” for the business. “We believe that the OFT has failed to understand the very competitive dynamics of the own-label market. We will now consider our options to deal with the OFT’s findings in respect of Avana Christmas puddings,” the company said.
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