Sainsbury’s and Asda merger risks damaging the environment
Food campaigners, environmentalists and farmers’ leaders have warned that the Sainsbury’s and Asda merger will have a long-term negative impact on food producers and the environment.
According to Dan Crossley of the Food Ethics Council, too much pressure on producers will increase the risk of shortcuts being taken, including environmental standards being lowered.
He also says it will reduce likelihood of producers being able to make key long-term investments to drive environmental improvements, such as investing in renewable energy farms.
Meanwhile, the National Farmers’ Union says it will be examining the details of the proposed merger “carefully” and the further concentration of retail power it creates within the food supply chain.
“The impact of the whole supply chain, all the way down to farm level, needs to be carefully assessed,” said NFU president Minette Batters.
Retail M&As up 15% in 2017
Retail mergers and acquisitions have grown 15% over the last 12 months, according to law firm RPC.
There were 37 retail M&A deals in the year to 31 March compared with 32 the previous year, which RPC says shows market leaders are “looking beyond all the hype about the ‘meltdown of the high street’ and getting on with building breadth of offering and scale.”
However, the overall value of the deals declined by -16% from £4.3bn to £3.7bn. RPC said it is important that sellers and creditors are “sensible” over the prices they are expecting from M&A deals in the current climate.
Nestlé to start selling Starbucks products
Nestlé has paid Starbucks $7.1bn to sell its coffee products as the Swiss coffee giant looks to grow its US premium coffee business and leverage “exciting new growth opportunities” across the rest of the world.
In addition to Nestlé marketing Starbucks coffee…