June 6, 2014
Quebec-based Exceldor, one of Canada’s biggest food co-operatives, is taking over Ontario-based P&H Foods, the producer of Butterball turkey in Canada from its parent company Parrish & Heimbecker Ltd which will re-focus on its core businesses including grain milling and marketing. Exeldor will gain two processing plants and rights to produce Butterball branded turkey in Canada in an agreement with U.S.-based Butterball, LLC. Exceldor currently has a 7% market share in Canada for turkey which will increase to 20% after the acquisition. Per capita consumption of chicken has steadily increased over the years but the same has not occurred for turkey – generally believed to be because of the ingrained holiday-association consumers have for turkey. In 2012 Canada produced 160.2 million kg of turkey and domestic consumption was 4.1 kg per person – the same consumption rate for the 32nd straight year according to Agriculture Canada. Terms of the acquisition have not been release but annual sales of the combined companies post-acquisition will increase to $625 million from Exceldor’s current $500 million.
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