The latest news, trends, analysis, interviews and podcasts from the global food and beverage industry

In a bold move signalling its ambition in the food retail sector, NewPrinces Group has announced the acquisition of Carrefour's Italian supermarkets for €1 billion. This acquisition positions the newly formed company as a formidable player in the market, significantly expanding its operational footprint.

The deal involves approximately 1,000 Carrefour locations across Italy and is expected to close by the end of the year, pending regulatory approval. With this acquisition, NewPrinces aims to leverage its existing capabilities and enhance its product offerings, targeting a turnover of €11 billion and solidifying its position as the second-largest food retailer in Italy.

NewPrinces was established following the recent merger of Newlat Food and Princes Limited, which culminated in a £700 million acquisition. The new group boasts a combined turnover of €2.8 billion, a global network of 31 plants, and a workforce of around 8,800 employees across more than 30 brands. This merger not only strengthens its market presence but also broadens its product categories, making it one of Europe's leading multi-brand food companies.

NewPrinces chairman Angelo Mastrolia commented: "The acquisition of Carrefour Italia represents a fundamental step in the growth trajectory of our Group. With this operation, we take a decisive step towards vertical integration between production and distribution, strengthening our ability to generate value along the entire supply chain."

Simon Harrison, CEO of Princes, noted the significance of this acquisition in the context of the group's ambitious growth strategy. “This marks the beginning of an exciting chapter for NewPrinces," he said. "With our combined resources and expertise, we are poised to redefine the food retail landscape in Italy and beyond.”

BonelliErede has advised NewPrinces on the legal aspects of this acquisition, providing crucial support throughout the process. The firm’s multidisciplinary team assisted with corporate, antitrust and regulatory matters, ensuring that all legal frameworks were adhered to during this significant transaction.

However, the acquisition has raised concerns among Carrefour employees. Labour unions representing the workforce have expressed apprehension regarding job security and future prospects, prompting calls for discussions with the Ministry of Enterprise and Made in Italy. They aim to ensure that the transition benefits both employees and consumers.

Minister Adolfo Urso has acknowledged the importance of this acquisition for the Italian market and is set to meet with both NewPrinces and union representatives to address these concerns.

According to sources familiar with the company, NewPrinces is also exploring the potential revival of the Gs supermarket brand, which could further enhance its market position and consumer loyalty.

In a further demonstration of its aggressive growth strategy, NewPrinces also reached an agreement to acquire Kraft Heinz's Italian infant and speciality food business back in early July. This divestiture includes well-established brands such as Plasmon, Nipiol and Dieterba, as well as speciality products like Aproten and Biaglut.

The Kraft acquisition will also bring a production facility in Latina, Italy, into NewPrinces' portfolio, which produces approximately 1.8 billion biscuits annually for the Plasmon brand.