Premier Foods is believed to be weighing up a bid for Birds Eye if owner Unilever decides to offload the frozen foods brand.
Unilever recently revealed it was reviewing strategic options for its European frozen food business, including Iglo, Findus and Birds Eye.
And Premier is among the favourites to make a bid for Birds Eye, having sold its Typhoo tea brand to Indian tea producer Apeejay International Tea for £80m. A source at Premier told The Grocer: “Talk is circulating within the business that we could be poised to make a move if it comes up for grabs.” However, analysts claimed a manufacturer was unlikely to buy Birds Eye. One said a private equity company would be most likely.
Sources elsewhere in the industry said Unilever would probably retain ownership of Birds Eye brands that are still profitable, while outsourcing production.
“Unilever has already outsourced a lot of its frozen ready meal production to Rye Valley in Ireland,” said one contact. He said manufacturers were struggling to maintain more than a few frozen brands in the face of competition from own label products.
Unilever recently revealed it was reviewing strategic options for its European frozen food business, including Iglo, Findus and Birds Eye.
And Premier is among the favourites to make a bid for Birds Eye, having sold its Typhoo tea brand to Indian tea producer Apeejay International Tea for £80m. A source at Premier told The Grocer: “Talk is circulating within the business that we could be poised to make a move if it comes up for grabs.” However, analysts claimed a manufacturer was unlikely to buy Birds Eye. One said a private equity company would be most likely.
Sources elsewhere in the industry said Unilever would probably retain ownership of Birds Eye brands that are still profitable, while outsourcing production.
“Unilever has already outsourced a lot of its frozen ready meal production to Rye Valley in Ireland,” said one contact. He said manufacturers were struggling to maintain more than a few frozen brands in the face of competition from own label products.
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