Woolworths has lodged an application with the New Zealand Commerce Commission to acquire 100 per cent of the shares in Beak & Johnston.
Beak & Johnston, a major player in the food manufacturing sector, produces a variety of chilled and frozen ready-to-eat meals, soups, and slow-cooked meats. The acquisition, if approved, would grant Woolworths control over Beak & Johnston’s New Zealand subsidiary, Beak and Johnston NZ Pty Ltd (BJNZ), alongside its extensive Australian operations.
Currently, Woolworths sells ready-to-eat meals, soups, and slow-cooked meats but does not manufacture these products locally. The acquisition marks a potential shift in its supply chain dynamics.
In New Zealand, its brands include Pitango, Artisano, Ready Chef, Beak & Sons, and Strength Meals Co. The company also manufactures private-label products and imports plant-based meat alternatives under the Impossible Foods brand.
In its application, Woolworths argues that the transaction will not result in a substantial lessening of competition in New Zealand as Woolworths does not currently manufacture grocery products in New Zealand, while BJNZ’s activities are strictly manufacturing-based and do not include retail operations.
Woolworths asserts it will not have the ability or incentive to engage in anti-competitive practices such as limiting supply to competitors. BJNZ’s products are not considered essential to the market, as there are numerous alternative suppliers and options for retailers to self-manufacture ready-made meals.
The acquisition aligns with Woolworths’ strategy to strengthen its supply chain and expand its footprint in the convenience food sector. By gaining control of BJNZ’s facilities in Auckland, including manufacturing, chiller, and warehouse operations, Woolworths aims to enhance its product offerings in the ready-made meals category. The move also reflects a growing demand for convenient meal solutions among New Zealand consumers.
The proposed acquisition, valued at an undisclosed sum, remains subject to approval by both the Commerce Commission in New Zealand and the Australian Competition and Consumer Commission. Both regulatory bodies will examine potential impacts on market competition, supplier relationships, and consumer choice.
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