The takeover of the Jus-Rol brand by a French-owned rival pastry maker could harm competition, resulting in higher prices and lower-quality products for customers, a UK watchdog has warned.
The Competition and Markets Authority said it was particularly concerned about potential price rises for Jus-Rol items – which include dough for puff and shortcrust pastry, pizza, and pain au chocolat – given how stretched household budgets were because of the cost of living crisis.
Cérélia, which is the largest producer of bake-at-home products in the UK, agreed to buy the brand from General Mills for an undisclosed sum in November. The CMA said the deal would mean Cérélia would produce and sell Jus-Rol as well as its other label products, leaving retailers with fewer alternatives.
“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,” the regulator said.
The CMA, which served its initial enforcement order in February, is now calling on Jus-Rol and Cérélia to submit proposals within the next five days that could address its concerns. However, if those proposals fall short, the regulator said it would pursue its investigation, in a move that could ultimately lead to the deal being blocked.
Sorcha O’Carroll, the CMA’s 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.”
