Ferrero completes deal for United Biscuits’ Delacre

Biscuit brands Delacre and DeliChoc have been bought by Ferrero from United Biscuits, for an undisclosed sum.

Ferrero completed the acquisition of Belgium-based Delacre on Monday (December 5), which comprises the Delacre and DeliChoc brands. The deal saw Italian firm Ferrero take over all Delacre production facilities, and retain the management and employees of the business.

Ferrero Greece md Jérôme Grégoire was appointed new md of Delacre with immediate effect.

A Delacre statement read: “We are pleased to announce a Ferrero-affiliated entity has completed the acquisition of the manufacturers of [the] Delacre and Délichoc biscuit brands, Biscuits Delacre and United Biscuits Industries (together ‘Delacre’), from United Biscuits.”

‘A good, strategic move’

Ferrero’s acquisition could prove to be a good, strategic move by the premium chocolate maker, claimed Euromonitor International. The deal could result in more chocolate manufacturers looking to break into the biscuit market, it said.

Euromonitor International senior analyst Pinar Hosafci said: “Having a naturally strong position in the premium chocolate space, Ferrero has strategically decided to make a debut into premium biscuits which – unlike chocolate – [isn’t] a saturated space, and has a lot of potential for growth.

“If Ferrero can expand Delacre’s presence geographically and within the alternative retail channel, including retail stores, foodservice and online, it has a good chance of boosting its already profitable business.

‘Explore the premium biscuit space’

“Delacre’s acquisition could, in turn, prompt competitors – like Lindt, Mars and even Nestlé – to explore the premium biscuit space, which is more widely consumed than chocolate and proves especially popular with emerging market consumers.”

Ferrero – maker of Nutella, Ferrero Rocher, Tic Tac and Kinder Bueno – had initially made a bid for Delacre in July, it was understood. Last week, Ferrero revealed it was close to sealing a deal for the biscuit maker, and claimed it expected to complete the deal by mid-December.

Meanwhile, Ferrero acquired a 30% stake in the UK chocolatier Thorntons in June last year, after agreeing a £112M deal. It was believed Ferrero had plans to eventually buy the entire company.

Ferrero deal for Delacre – at a glance

  • Ferrero acquires Delacre for an undisclosed fee
  • Deal includes the Delacre and Délichoc biscuit brands
  • Ferrero has “good chance” of boosting profit after acquisition