Kingsmill bread owner Associated British Foods (ABF) is reportedly on the verge of finalising a merger with Hovis, owned by private equity firm Endless. The proposed transaction, valued at approximately £75 million, aims to combine two of the country’s most recognised bread brands under a single corporate umbrella. Sources indicate that a definitive agreement could be reached as early as this week, although complexities surrounding the deal may delay confirmation. This potential merger comes after months of negotiations, highlighting ABF’s strategic response to ongoing challenges within the bakery market. Hovis, founded in 1890, and Kingsmill – part of Allied Bakeries, which is owned by ABF and was established in 1935 – have both faced mounting pressures from inflation, comeptition from speciality bread producers, and shifting consumer preferences towards lower-carb diets. These factors have contributed to a challenging landscape for traditional breadmakers in recent years. In its latest financial report, Hovis noted a decline in sales, reporting £439.6 million for the 52 weeks ending September 28, down from £477.6 million the previous year. The company also experienced a drop in EBITDA) falling from £20.9 million to £18.7 million, attributed to increased distribution costs and revenue declines. Despite these challenges, Hovis maintained a stable overall market share, underscoring its resilience as a brand. The merger could yield significant synergies, with industry estimates suggesting potential annual cost savings of up to £50 million. However, the deal will likely attract scrutiny from the UK’s Competition and Markets Authority (CMA), given the combined entity would command a substantial share of the packaged bread market. Currently, Warburtons leads this segment with a 34% market share, followed by Hovis at 24% and Kingsmill at 17%. ABF, which has been exploring various strategic options for Allied Bakeries amid a challenging market environment, has indicated that it remains committed to enhancing long-term shareholder value. The company has also considered alternative pathways for Allied should the merger discussions falter. The UK bakery market, valued at approximately £5 billion annually, continues to adapt to changing consumer preferences, including a growing interest in artisanal and specialty bread products. Image credit: © Hovis

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.

UK-based regenerative food company, Wildfarmed, has partnered with natural energy brand Tribe to launch a new range of oat flapjack bars. This collaboration marks a significant step as it introduces the first packaged snacks made from 100% regeneratively grown oats to the retail market, debuting exclusively in over 1,100 Sainsbury’s stores. The launch expands upon the success of the initial Tribe x Wildfarmed Apple & Raspberry Flapjack, which was well-received in the direct-to-consumer market earlier this year. The new product line-up includes three flavours: Toffee, Pecan & Raisin; Blueberry & Almond Butter; and the original Apple & Raspberry. Each bar is crafted from Wildfarmed’s oats, which are cultivated using regenerative agricultural practices aimed at enhancing soil health and promoting biodiversity. Tom Stancliffe, co-founder of Tribe, highlighted the growing consumer demand for healthier and more sustainable snack options. “We’re excited to expand our UK-first collaboration with Wildfarmed to three oat bars made with regen farmed oats,” he said. “Customers are looking for healthier, more sustainable snacks, and it's a great feeling to be able to see these hitting the shelves in Sainsbury’s.” This exclusive listing in Sainsbury’s representsa key moment for Wildfarmed as it seeks to establish itself in the packaged snacks category, following previous listings in major retailers like Tesco and Waitrose. Callum Morris, chief growth officer at Wildfarmed, noted the significance of this launch in advancing the company’s mission to mainstream regenerative agriculture. “Each bar is helping to support farmers who are growing food with nature and helping to restore healthy soil, increase biodiversity, minimise water pollution and reduce carbon,” Morris remarked. The bars are positioned as a healthier snacking alternative, free from artificial ingredients and rich in fibre, catering to a growing market segment that prioritises wellness and environmental responsibility. The single bars are priced at £1.50, while multipack options are available for £3.00.

Ball Corporation has partnered with water bottling technology business, Boomerang Water, to offer consumers a sustainable way to stay hydrated. Ball will provide its refillable aluminium bottles for the Boomerang Bottling System at resorts, on cruise ships, campuses and elsewhere. The technology washes, rinses, filters, fills and caps fresh water in refillable, returnable and recyclable Ball aluminium bottles, helping avert waste and carbon emissions created by the manufacture and transportation of traditional, disposable bottles. According to Ball, the alliance will see both companies recycle the bottles rather than dispose of them at their end of life, allowing them to then be turned into new bottles within 60 days. Boomerang Water co-founder, Jason Dibble, said: "Boomerang is delivering industry-leading innovation with its bottling system that can wash, fill and cap more than 3,000 bottles of fresh, premium water per eight-hour shift. The whole idea and concept is the reusability and circularity of the aluminium bottles paired with a Boomerang system. Ball's aluminium bottles are the perfect complement for our Boomerang Bottling System, since they can get re-used over and over and ultimately recycled easily at the end of their life."

Nestlé is piloting refillable vending machines for its Milo and Koko Krunch brands as part of its effort to explore solutions that help to reduce the need for disposable packaging. In collaboration with digital start-up Qyos by Algramo, the machines will be available at two retailers in Indonesia during a 4-6 month trial period. Qyos was founded in 2020 and is an Indonesian start-up that aims to provide households with alternatives to single-use plastic. It is supported by machines with interface systems from Chilean environmentally friendly refill technology company, Algramo. Gaelle de Mestral, head of R&D packaging at Nestlé, said: "We are actively exploring innovative, alternative delivery systems such as bulk, reuse and refill options across several product categories. By undertaking this second pilot for Milo and Koko Krunch, we'll be able to gain new insights that can be applied to our products, as well further assess the refillable system's effectiveness in preventing packaging waste along the supply chain." As consumers will use their own containers, the machines are fitted with QR codes which can digitally provide product information including ingredients and shelf life. Packaging developers at Nestlé’s R&D centres in Singapore and Switzerland worked in collaboration with the Nestlé teams in Indonesia, as well as Qyos, for the development of the vending machines. Nestlé ensured that the refillable systems maintain the safety and freshness of products across the supply chain while considering the local context, such as the hot and humid climate conditions in Indonesia. Samer Chedid, president director of Nestlé Indonesia, added: "We hope that through the Nestlé x Qyos refilling machine technology, we can support the government to encourage people to reduce the use of packaging while also contributing to environmental sustainability goals in Indonesia”. In 2021, Nestlé piloted reusable and refillable containers for Milo, Dancow and Koko Krunch in South Jakarta, Indonesia, where consumers had the option of purchasing the products from tricycle carts fitted with refillable dispensing systems.

Today is World Refill Day, a global day of action aimed at preventing plastic pollution and reducing waste. Now in its third year, this campaign aims to accelerate the transition away from single-use plastic and towards a circular future where reuse and refill are the norm. But what are the benefits and drawbacks of refillable packaging for FMCG businesses? Charles Haverfield, CEO of US Packaging & Wrapping, tells us more. Brands on a global scale are seeking to drive down virgin plastic production and hit ESG targets, with refillable packaging growing in popularity as a sustainable solution. However, research shows that 66% of consumers believe retailers aren’t doing enough to provide affordable refillable or packaging-free options. With World Refill Day now in full swing, what are the pros and cons of refillable models and how are brands navigating the challenges of refillable packaging in the food and drinks market? In-store refills While in-store refillable products can enrich relationships between consumers and brands, there are many challenges retailers face. Refilling large containers at in-store refill stations may be the most sustainable solution in terms of reducing packaging waste and greenhouse emissions, but only if consumers actually use them. According to Trivium Packaging's Global Buying Green Report 2022, 74% of consumers may claim to be open to changing behaviours in favour of adopting refillable packaging, however, there is often an intention-action gap. Just because consumers say they want to proactively engage with reusables doesn’t mean they will. This could be partly due to confusing or inconvenient processes across different brands. To limit this intention-action gap, there needs to be more collaboration between retailers and brands for a more consistent approach. The UK’s Refill Coalition is one such alliance aiming to bring together grocery retailers to develop an innovative refill system that sets an industry standard. It has partnered with some of the UK’s biggest supermarkets including Waitrose, Ocado and, most recently, Aldi. However, despite initial interest from the likes of M&S and Morrisons during the coalition’s conception, last month saw the two retailers exit the alliance. M&S CEO Stuart Machin confirmed this was due to a lack of shopper appetite and operational difficulties. It’s clear that more education is needed to ensure greater consumer uptake of in-store refillables and make this financially viable to retailers, and ultimately enable brands to deliver on sustainability, traceability and supply chain efficiency. Pre-fill solutions Pre-filled refillable products are currently one of the most popular solutions for FMCG brands. Instead of customers manually refilling products in stores or on the go, pre-fills are conveniently available to purchase and allow users to replenish products at home without discarding the entire container. However, while pre-fills may help reduce waste for the primary container, customers must still rely on packaging to transport their goods home. A secondary container that is not designed to be reused would negate the circular nature of refillable packaging and would be inevitably more harmful to the environment. In response to this, Loop partnered with UK supermarket Tesco last year to trial its refillable product system. Consumers could purchase pre-packed items in Loop containers, which were returned to Tesco stores after use. The trial aimed to make purchasing refillable products as easy as buying those in single-use packaging. While the trial met its customer participation quota of 80,000 products purchased over two years, the trial was ultimately unsuccessful. From its own findings, Tesco revealed consumers were not ready to change behaviours. A key flaw in the trial was the responsibility put on consumers to return the containers in person. According to a poll from environmental charity Hubbub, this could prove to deter consumers, with 26% of respondents concerned over forgetting to return containers. Refill on-the-go On-the-go refill solutions may provide a more convenient solution to in-store refills. Refillable vending machines, for example, have been gaining traction globally as more brands experiment with refillable products outside of a store setting. This is something Nestle has been trialling in Indonesia with its latest pilot scheme to reduce disposable packaging. Using the vending machines, customers can easily refill their stock of Milo and Koko Krunch cereals into their own containers, or purchase containers at the vending machine. No packaging can create greater risks of product contamination and hygiene however, the machines are designed to withstand changing climates and ensure product freshness across the supply chain. The machines are also fitted with QR codes that display product information such as ingredients and shelf life in lieu of packaging. Another brand exploring the role of QR codes for vending machines as an on-the-go solution to refillable packaging is Kadeya, a company that seeks to offer refillable water bottles that are returned to the vending machine. Customers scan a QR code on the machine which will dispense the pre-filled, chilled glass bottle of filtered water. Once drank, customers are expected to return the used water bottle to any station to be cleansed, sanitized and refilled for the next customer. Since customers must create an account with Kadeya to use the machines, each bottle is accounted for, and the company can track how quickly the bottles are returned to the machines to ensure stock levels are well-managed. Refillable packaging is touted as a win for F&B companies looking to both reduce packaging waste and build consumer loyalty. But this packaging comes with its own challenges and brands are still figuring out how to navigate the waters. Refillables could still be the future of retail, though it will take time, as with any mass impact changes.

Following a surprising endorsement from US President Donald Trump, Coca-Cola has confirmed it will launch a cane sugar-sweetened version of its flagship drink later this year  – alongside its existing high-fructose corn syrup (HFCS) formulation.  James Quincey, CEO of The Coca-Cola Company, gave Fox News an exclusive first look at a prototype of the new product during an interview earlier this week. The prototype – shown in a glass bottle reminiscent of the popular Mexican Coke – highlights the company’s shift toward offering a ‘cleaner’ label version of the classic drink.  Quincey clarified that final packaging has yet to be decided: “That is one of the things we are just finalising. What to put on the front. Where to put that it contains US cane sugar. Just so everyone is clear. It may end up being just ‘Original Taste’ with ‘US cane sugar’ underneath – although marketing is trying to get more creative.”  Packaging the new formulation in glass would align with Coca-Cola’s other cane sugar-sweetened lines, which typically retail at a higher price and are often targeted at premium outlets and hospitality venues. Whether this new version will follow suit in terms of pricing remains unconfirmed.  Despite the higher cost of cane sugar compared to HFCS, Quincey described the move as a “really attractive commercial proposition,” noting that Coca-Cola has been working closely with US sugar producers to secure supply ahead of the anticipated autumn rollout.  The announcement follows Trump’s social media post, which claimed: “I have been speaking to Coca-Cola about using REAL cane sugar in Coke in the United States, and they have agreed to do so”.   Initially, the company thanked the president for his support but later confirmed it would introduce a cane sugar option to complement, not replace, the original product.  The development also appears to dovetail with the US government’s ‘Make America Healthy Again’ initiative, aimed at reducing reliance on highly processed ingredients . Health Secretary Robert F Kennedy Jr has previously criticised HFCS as “a formula for making you obese and diabetic,” although scientific consensus maintains that HFCS and cane sugar offer comparable nutritional value.  Adding a cane sugar variant without overhauling the existing recipe will likely be welcomed by US corn growers, who have benefited from HFCS dominance since the 1970s. The US is the world’s leading corn exporter, with more than 9,000 jobs tied to corn refining.  🥤 How will a move away from HFCS impact the food and beverage industry? Find out more in our latest exclusive here. 🥤 However, as consumers increasingly shift towards reduced-sugar or sugar-free beverages, the success of a cane sugar Coke will depend on whether it aligns with modern health-driven preferences or appeals more to nostalgic taste and premium positioning.  Coca-Cola has yet to confirm an exact launch date, but the product is expected to begin rolling out in autumn 2025.  See the full interview with Fox here .

Allengra is set to showcase its latest innovation, the Ultrasonic Micro Flow Sensor, at the upcoming Drinktec 2025 trade fair in Munich, Germany. This compact and hygienic sensor is designed for manufacturers of automated beverage systems, including coffee machines, water dispensers, beer taps and cocktail systems. As the beverage industry grapples with labour shortages and increasing demands for speed and quality, automation has become a critical focus. The Ultrasonic Micro Flow Sensor addresses these challenges by providing precise flow and temperature measurements even under variable conditions. Its ultrasonic technology enables contactless operation, eliminating moving parts and direct contact with the medium, which enhances hygiene and reduces maintenance needs. The sensor boasts a measurement accuracy of ±2% and is compatible with a range of beverages, including water, milk, coffee, soft drinks, juices and carbonated drinks. It supports standard connectors and offers multiple output options, including Modbus RTU and I²C, making it versatile for different system integrations. In addition to flow measurement, the sensor incorporates advanced functionalities such as air bubble detection, foam detection, media recognition and real-time temperature dynamics. These features are designed to enhance process control, improve product quality and increase customer satisfaction by minimising dispensing errors. The introduction of the Ultrasonic Micro Flow Sensor aligns with a broader trend towards automated solutions in the food and beverage sector. As manufacturers seek to optimise their operations in response to market pressures, the demand for precise and reliable components is expected to rise. Allengra’s offering could play a pivotal role in helping beverage producers enhance their operational efficiency while maintaining high standards of hygiene and quality. The sensor is positioned not only for integration into existing systems but also for customisation to meet specific OEM requirements, making it suitable for both standard and bespoke applications.

Beneo has announced a three-year collaborative project aimed at promoting sustainable rice farming practices in Vietnam. This initiative, funded by the Government of Flanders, partners Beneo with international NGO Rikolto and climate technology firm CarbonFarm. Vietnam, a leading global rice exporter, faces significant challenges in sustainable agriculture, particularly in terms of environmental impact and resource management. Rice cultivation is responsible for approximately 10% of global methane emissions and consumes over a third of the world’s irrigation water. Inefficient practices, such as excessive fertiliser use and the burning of rice residues, contribute to soil degradation and biodiversity loss. The new project aims to address these issues by training at least 1,000 farmers in the Mekong Delta region on the Sustainable Rice Platform (SRP) standards. These standards emphasise efficient water management and responsible pesticide and fertiliser application. The initiative will use demonstration fields to showcase sustainable farming techniques, supported by innovative monitoring technologies, including satellite imagery and digital logbooks, to track emissions and water usage. With an investment of approximately €800,000 from the Flanders International Climate Action Programme, the project commenced in April 2025 during a Belgian state visit to Vietnam. Beneo's role will focus on developing a market for SRP-certified rice ingredients, which will be processed at its facility in Wijgmaal, Belgium. The company aims to process at least 10,000 tonnes of sustainably grown rice over the project's duration, with the first outputs expected in the autumn of 2025. This initiative not only seeks to enhance the sustainability of rice production but also aims to create a value chain that connects smallholder farmers with market opportunities, thereby incentivising the adoption of sustainable practices. The collaboration aligns with Beneo's broader sustainability strategy, the ‘Healthy Planet Plan,’ and reflects an increasing industry focus on responsible sourcing and environmental stewardship. Roland Vanhoegaerden, operations managing director for speciality rice Ingredients at Beneo, commented: “This initiative clearly demonstrates Beneo's dedication to climate mitigation actions, sustainability and its proactive approach to addressing global challenges through innovative solutions". He continued: "We are proud and excited to leverage Beneo’s longstanding expertise in producing and marketing functional ingredients in collaboration with our project partners and Vietnamese farmers to reduce the environmental impact of rice production”. Image credit: ©Rikolto

Kerry Group has inaugurated a new office and research, development and applications (RD&A) facility in Jakarta, Indonesia, signalling a strategic investment in the region's growing food innovation landscape. The facility, located in RDTX Place, Kuningan, spans 1,200 square metres and is designed to enhance collaboration with local customers while accelerating the development of sustainable food solutions. The new RD&A facility features specialised labs for flavour creation and application, a sensory suite for product testing, and a co-creation lab intended for joint development projects with clients. This investment is aligned with Indonesia's 'Making Indonesia 4.0' initiative, which aims to bolster the food and beverage sector as a key driver of economic growth. Janeley Haryono, general manager of Kerry Indonesia, noted the facility's role in fostering direct collaboration with customers, allowing for quicker innovation cycles that cater to local tastes and preferences. He said: "With customers collaborating directly with us, we're enabling faster innovation and delivering solutions that are not only healthier but rooted in local preferences and ingredients". This approach is crucial as Indonesia's food and beverage industry continues to contribute significantly to the national economy, accounting for 7.15% of GDP in the first half of 2024, with expectations for steady growth despite rising costs and regulatory challenges. Siddharth Rastogi, retail, meat and marketing lead for Kerry Southeast Asia, commented: "Indonesia's central location enables greater proximity to our key markets – allowing us to be closer to our regional customers to develop solutions together that are agile and relevant to rapidly shifting market dynamics. We're excited to be a hub of food innovation excellence for the industry, helping to shape the future of food and beverage in the region." The facility is part of a broader expansion strategy that includes existing manufacturing plants in Cikarang and Karawang, the latter being Kerry's largest greenfield investment in Southeast Asia. The new Jakarta facility also reflects Kerry's commitment to sustainability, currently undergoing LEED Gold certification. It incorporates energy-efficient technologies and sustainable materials, aligning with global trends toward environmental responsibility in food production. Ireland's ambassador to Indonesia, H.E. Pádraig Francis, who attending the opening of the facility, added: "The opening of Kerry's new RD&A lab marks a significant milestone in Ireland's economic engagement with Indonesia. It reflects a shared vision of innovation, collaboration and sustainability." He continued: "Kerry's growing presence supports Indonesia's aspirations in health, nutrition and industrial development, and stands as part of a proud legacy of Irish companies contributing to inclusive, long-term progress in the region". This expansion positions Kerry as a key player in shaping the future of F&B innovation in Southeast Asia, catering to a population projected to exceed 281 million by 2025, with an increasing demand for nutritious and locally relevant food solutions.

Lipton is set to enhance its market presence with the introduction of two innovative product lines aimed at meeting the changing tastes and lifestyles of tea consumers. The new offerings, which include Tea Concentrates and a Fruit & Herbal Tea line, will be available at major retailers in the US, beginning with Walmart this summer. The introduction of Lipton Tea Concentrates marks a significant shift in how consumers can enjoy iced tea. These concentrates, available in three varieties – Black Tea with Lemon, Green Tea with Lemonade, and Southern Sweet Black Tea – are designed for convenience and customisation. Packaged in 32oz containers, the concentrates allow consumers to mix their favourite flavours with water, seltzer or juice, catering to on-the-go lifestyles. “Lipton Tea Concentrates offer a new take on the fresh brewed iced tea experience – without the need to prep and with the freedom to customise every sip,” said Alisa Geller, Lipton brand director, stating that it offers a fresh take on iced tea without the need for extensive preparation. This aligns with the current consumer trend towards quick and easy beverage solutions that do not compromise on quality. In addition, Lipton will launch its Fruit & Herbal Teas nationally in August. This new line features four flavours – Golden Chamomile, Peach Paradise, Smooth Mint and Lemon Ginger Refresh – crafted to provide comforting and flavourful experiences. These offerings aim to appeal to consumers seeking both caffeinated and naturally caffeine-free options, reinforcing Lipton's positioning as a versatile tea brand suitable for any time of day. Research and innovation director Alex White added: “Many consumers are open to herbal teas but turned off by overly earthy or medicinal notes. That’s why Lipton’s Fruit & Herbal innovation puts flavour first – with bright, balanced blends that are refreshing hot or iced, crafted for repeat enjoyment without the intensity of traditional herbals.”

Donald Trump has been making headlines recently, notably for his controversial comments regarding Coca-Cola, which sparked discussions about corporate influence and American products. Now, he is back in the spotlight with a new threat of 30% tariffs on imports from the European Union and Mexico, set to take effect on August 1. The food and drink industry finds itself once again caught in the crosshairs of geopolitics following the US president's announcement. The announcement, made on Trump’s social media platform, Truth Social, has stunned European officials and sent shockwaves through supply chains on both sides of the Atlantic. The Financial Times reported that shares across the EU have already seen an impact, with many companies bracing for the economic fallout. The new proposals have meant that negotiations over maintaining a 10% baseline tariff have been discarded. Trump’s letter to European Commission President Ursula von der Leyen demands “complete, open market access” without reciprocal tariffs. In response, von der Leyen stated that such measures would “disrupt essential transatlantic supply chains, to the detriment of businesses, consumers, and patients.” Trump shared the letter to European Commission president Ursula von der Leyen on his truth Social platform. Following Trump’s proposal, the EU has unveiled a new list of retaliatory tariffs, totalling €72 billion (approximately $84 billion), targeting US goods, including bourbon and a wide range of industrial and agricultural products. The 206-page list, prepared by the European Commission and reported by Bloomberg , was narrowed down from an initial €95 billion after consultations with member states and companies. The list is said to cover more than €65 billion of industrial goods, including nearly €11 billion in aircraft, €9.4 billion in machinery, and €8 billion in autos, as well as €6 billion in agrifood products, primarily fruits, vegetables and alcoholic drinks. According to reporting from the Washington Post, last year, US-EU trade in goods totalled nearly $1 trillion, while the US and Mexico are linked in a North American trading zone under a trade agreement negotiated during Trump’s first term, with almost $840 billion in goods passing between them. After Trump’s announcement on Saturday, Bernd Lange, the head of the European Parliament’s trade committee, told Reuters: “It is brazen and disrespectful to increase the tariffs on European goods announced on April 2 from 20% to 30%. This is a slap in the face for the negotiations and no way to deal with a key trading partner.” Lange noted that the EU had been negotiating intensively with Washington for more than three weeks and had already made concessions, making Trump’s announcement even more surprising. Products in the firing line If imposed, the 30% tariffs would disproportionately impact premium EU food and drink exports, which are central to the region's global gastronomic reputation, alongside cupboard staples. These include: Cheese and dairy products: Speciality cheeses represent a significant slice of EU-US trade, particularly cheeses like Parmigiano-Reggiano, Brie, Manchego and Gouda. The US has limited domestic substitutes for many of these products, but steep price increases could reduce demand and marginalise them to niche markets. Alcoholic drinks: EU nations dominate US wine imports, especially French Champagne and Bordeaux, Italian Prosecco and Spanish Rioja. A 30% tariff would sharply erode competitiveness, driving restaurants and retailers toward US, Chilean, or Australian alternatives. Similarly, spirits and liqueurs, like cognac and amaro, are among the most exported products from the EU to the US. Anne Cogny, export sales director at wine producer Les Vignerons de Tutiac, expressed disappointment in the new tariff proposals: “The constant back-and-forth on tariffs has created a deeply unstable commercial environment. Announcements are made, then walked back, only to be reintroduced again. This unpredictability is damaging.” Olive oil and speciality oils: Extra virgin olive oil from regions like Spain, Italy, and Greece is already under pressure to compete with cheaper alternatives made within the US, such as in California. More premium products, appealing due to their authentic heritage positioning, like Swiss chocolates, pastas and charcuterie, are also likely to be impacted should the tariffs increase prices. This doesn’t include the list of items covered by the retaliatory tariffs, which includes many more food and beverage items, including bourbon and vegetables. Speaking about the upcoming tariff discussions, von der Leyen and Italian PM Giorgia Meloni both highlighted the importance of continued talks to avoid what Meloni called an “unnecessary trade war.” EU Trade Commissioner Maroš Šefčovič called the proposed tariff levels “almost impossible” to absorb, suggesting that normal trade could grind to a halt. For American importers, the consequences are equally severe. Rising costs, reduced variety, and broken contracts could become common across retail, restaurants, and speciality grocers. Consumers could face sticker shock on everything from Brie to Barolo, just as inflationary pressures were beginning to ease. Global ramifications Simon Geale, executive vice president at supply chain consultancy Proxima, warns that the situation demands urgent attention, especially as the tariff announcement comes when inflation, global instability, and regulatory challenges are already causing issues within supply chains. He stated: "A 30% tariff on EU imports is a significant escalation in trade tensions and again ratchets up the risk for businesses. From automotive and aerospace to pharmaceuticals and consumer goods, US businesses rely heavily on European materials, components and finished goods. The immediate impact will be rising costs, supply disruption and the need for urgent risk mitigation.” EU Trade Commissioner Šefčovič also expressed concern, telling the F inancial Times : “If you are talking about 30% or 30% plus, there will be a huge impact on trade. It will be almost impossible to continue trading as we are used to in a transatlantic relationship. Supply chains would be heavily affected on both sides.” It is not just businesses in the EU that are feeling the strain. The Trump administration’s weekend announcements also included a 30% tariff proposal for Mexico, with a 17% tariff on Mexico’s fresh tomato exports beginning on July 14, a 35% tariff for Canada, and a 50% tariff for Brazil. In his letter to the Mexican premier, Trump claimed the tariffs were in part because Mexico “had not done enough” to help America secure its borders. Mexican President Claudia Sheinbaum stated: “We are clear on what we can work with the USA and we are clear on what we cannot. And there is something that is never negotiated, ever, and that is the sovereignty of our country." Earlier in the month, prior to the letters released to Mexico and the EU, Trump threatened a 50% tariff on all goods out of Brazil, effective August 1, and called for an investigation into what he described as “Brazil’s continued attacks on the Digital Trade activities of American Companies, as well as other unfair Trading Practices.” In response, Brazil’s President Luiz Inácio Lula da Silva announced that his country would introduce a retaliatory 50% tariff on imported US goods. Speaking about continuing the trade negotiations, the EU’s von der Leyen said: “We remain ready to continue working towards an agreement by August 1. At the same time, we will take all necessary steps to safeguard EU interests, including the adoption of proportionate countermeasures if required.” Businesses, however, remain concerned. Geale emphasised: "While there’s still hope of a negotiated outcome, the unpredictability of current US trade policy means businesses must plan for disruption. Resilience, flexibility, and visibility across supply chains are now more critical than ever.” While diplomacy may yet prevail, food and drink businesses on both sides of the Atlantic should prepare for impact. The 30% tariff – if enacted – would reshape transatlantic trade in gourmet and specialty products and potentially trigger a broader escalation affecting all sectors.