Cérélia has announced it will appeal The Competition and Markets Authority’s (CMA) decision to force the sale of recently acquired Jus-Rol brand.
Branding the decision as “wrong” the food manufacturer added that it was “saddened and disappointed”, but remains confident of a positive outcome on the appeal.
In the second phase of the investigation, the CMA found Cérélia’s purchase of Jus-Rol could leave UK retailers and shoppers facing higher prices and lower quality products.
Instead, the Jus-Rol business is to be sold to an independent buyer, the CMA revealed this morning.
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However, Cérélia claimed the outcome is “largely based on uncorroborated and unreliable concerns raised by a very small number of supermarkets.”
“Their opinions were not echoed by the vast majority of other retailers, who did not raise any concerns,” the company said.
In June 2022, the Competition and Markets Authority (CMA) launched an in-depth investigation into the deal after an initial Phase 1 investigation identified possible competition concerns.
“As living costs continue to rise, it’s our responsibility to make sure that competition can play its part in delivering the best possible deals for customers,” Margot Daly, chair of the independent panel of experts conducing Phase 2 of the investigation said.
“Cérélia and Jus-Rol are the biggest players in this market by far and losing the competition that takes place between them could result in customers facing higher prices and worse quality products. Today’s decision will ensure that doesn’t happen.”
However, Cérélia raised concerned about the CMA’s demonstration throughout the process, emphasising a “persistent lack of understanding of the structure and competitive dynamics of the industry in which Cérélia operates.”
Cérélia president, Guillaume Reveilhac added: “Today’s decision is underpinned by erroneous reasoning and raises questions about our ability to continue to serve UK retailers and consumers in the best possible way.
“That would be a most unfortunate outcome should the CMA decision stand. We will look to an appeal to ensure that the decision does not stand”
