Jus-Rol takeover could see price rises and lower quality, warns CMA
The Competition and Markets Authority (CMA) has raised concerns over a potential decrease in competition due to Cerelia’s acquisition.
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.The takeover of Jus-Rol by a rival pastry manufacturer could lead to higher prices and lower quality, the competition watchdog has warned.
The Competition and Markets Authority (CMA) has raised concerns over a potential decrease in competition due to Cerelia’s acquisition of Jus-Rol from US food giant General Mills.
Cerelia, the largest producer of bake-at-home products in the UK, agreed the deal last year for an undisclosed amount.
The CMA said the two firms represent two-thirds of the UK market, with products made by the two businesses being key competitors for space on supermarket shelves.
Following the deal, Cerelia will produce and sell both Jus-Rol products and its own private label products for supermarkets, which the CMA said will leave “retailers with fewer alternatives”.
The watchdog added: “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.”
It has called on the firms to submit proposals to address the competition concerns in the next five days or risk a more thorough Phase 2 investigation, which could ultimately lead to the deal being halted.
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 midweek 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.”