CMA raises competition concerns over Jus-Rol acquisition

The Competition and Markets Authority (CMA) has on Monday raised concerns over the acquisition of Jus-Rol, leading brand in the bake-at-home dough category, by Cérélia Group following an initial investigation into the merger.

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. General Mills sold its European dough business, including the Jus-Rol brand, to Cérélia in November last year.

The CMA noted that the businesses are the two 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.

With Cérélia set to produce and sell both the Jus-Rol products and private label products after the deal, retailers would have fewer alternatives and this could lead to higher prices and lower quality products for shoppers, it added.

“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,” Sorcha O’Carroll, senior director of mergers at the CMA, said.

“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 five working days to submit proposals to address the CMA’s concerns. The regulator will progress to an in-depth Phase 2 investigation if it founds proposals inadequate.