The Competition and Markets Authority has found that Cérélia’s
purchase of the Jus-Rol business could lead to higher prices and
lower quality products for shoppers in the UK.
Cérélia is the largest manufacturer of bake-at-home dough
products in the UK, producing private label (own brand) products
on behalf of some of the largest grocery retailers in the
UK. Jus-Rol is the best-selling brand in the bake-at-home
dough category and faces few branded rivals.
Some of Jus-Rol’s popular products include puff and shortcrust
pastry dough, pizza dough and pain au chocolat dough.
Together, the businesses are the 2 leading suppliers of
bake-at-home dough products to supermarkets and other grocery
retailers and account for over two-thirds of sales of such
products to shoppers in the UK. The Competition and Markets
Authority’s (CMA) investigation has found that, prior to the
merger, Jus-Rol branded products competed against private label
products supplied by Cérélia for space on supermarket shelves.
Following the deal, Cérélia would produce and sell both the
Jus-Rol products and private label products, leaving retailers
with fewer alternatives. The CMA is therefore concerned that the
loss of the Jus-Rol business as an independent player could lead
to increased prices to grocery retailers – and ultimately
consumers – and lower quality products.
Sorcha O’Carroll, Senior Director of Mergers said:
“Millions of people across the UK regularly use bake-at-home
dough products, whether to rustle up a mid-week pizza for dinner
or to make breakfast pastries for their families on the weekend.
“Consumers should know they’re getting value for money and not
overpaying for their grocery products, especially as the current
cost-of-living crisis stretches people’s budget even further.
That’s why we won’t hesitate to refer this investigation further
if our concerns aren’t addressed.”
Cérélia now has 5 working days to submit proposals to address the
CMA’s concerns. If suitable proposals are not submitted, the CMA
will progress to an in-depth Phase 2 investigation.
For more information, visit the Cérélia / Jus-Rol merger
inquiry page.
Notes to editors
- Cérélia refers to Cérélia Group Holding SAS (either directly
or through entities under its common ownership or common control
or over which it exerts material influence within the meaning of
section 26 of the Enterprise Act 2002 (the Act)).
- The CMA believes that the merger gives rise to a realistic
prospect of a substantial lessening of competition as a result of
horizontal unilateral effects in the wholesale supply of
dough-to-bake products to grocery retailers in the UK.
- Under the Act the CMA has a duty to make a reference to Phase
2 if the CMA believes that it is or may be the case that a
relevant merger situation has been created, or arrangements are
in progress or contemplation which, if carried into effect, will
result in the creation of a relevant merger situation; and the
creation of that situation has resulted, or may be expected to
result, in a substantial lessening of competition within any
market or markets in the United Kingdom for goods or services.
