The CMA 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 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 Market Authority’s (CMA) investigation has found that, prior to the merger, Jus-Rol’s 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:
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