Dive Brief:
- Nomad Foods Ltd., a frozen foods company with sales mainly based in Europe, is seeking out acquisitions of frozen food companies in the U.S., where it believes consumers' lukewarm opinion of frozen foods may open opportunities for better deals on inexpensive acquisitions, reports Reuters.
- Nomad CEO Stefan Descheemaeker told Reuters that the company's plan is "to buy neglected frozen food brands on the cheap and breathe new life into them."
- According to Reuters, confidential industry sources said that "the company's targets may include Bellissio Foods, which is owned by private equity firm Centre Partners and sells foods under brands including Boston Market and Chili's at Home, or Green Giant, owned by General Mills."
Dive Insight:
This may seem like a counterintuitive strategy given that sales for frozen foods have been down in recent years. However, Nomad Foods feels confident that consumers are undervaluing frozen foods and that once Nomad can revitalize these inexpensive brands the company scoops up, Nomad's acquired U.S. frozen foods brands will blossom.
As Reuters points out, Nomad's largest acquisitions rival in the U.S. is Pinnacle Foods, owner of Vlasick Pickles and Bird's Eye frozen vegetables. "Our strategy is not dissimilar," Nomad's CEO Stefan Descheemaeker told Reuters.
For now, Nomad is taking advantage of U.S. consumers' fleeting interest in frozen foods as they move toward fresher products.