A succession of acquisition and joint venture activity has shaken up the UK egg and poultry sectors. Michael Barker examines what is behind the trend
The UK egg and poultry industries are in a period of extraordinary change right now as a flurry of mergers and acquisitions (M&As) shake up the power dynamics in the market and some of the biggest operators strengthen their hands.
In the past three months alone, Noble Foods has bought out Just Egg, Bumble Hole Foods was acquired by Netherlands-based Hardeman Egg Group, and Griffiths Family Foods entered into a joint venture with Eureden Oeuf that saw the creation of a company called E&G Sales Co. In the poultry meat sector, the headline move was the full acquisition of Hook2Sisters by Boparan Private Office (BPO) in a deal that is set to complete in August. So what is driving this remarkable period of activity, and can we expect more to come?
According to Grant Thornton’s head of consumer industries Nicola Sartori, a key driver for M&A activity in the UK food and beverage industry in the opening months of 2025 has been trade buyers looking to diversify their brand portfolios, expand into new product categories and strengthen their supply chain capabilities. Those reasons certainly tally with many of the motivations cited during the rush of activity seen in the egg and poultry sector of late.
Significantly, the first three months of 2025 represented the strongest quarter for domestic UK-to-UK M&As since Grant Thornton began tracking it at the start of 2017. It is without question a period where businesses are looking to protect their place in the market at a time of production cost hikes, global trade instability, increasing regulation and inflation on supermarket shelves. Alongside that, a drive to hoover up incremental market share by moving into new product categories is keeping companies alive to any opportunity to expand their portfolio.
Speaking exclusively to Poultry Business, Noble Foods’ chief executive Duncan Everett says businesses are looking to innovate, scale and meet evolving consumer demand for convenience and high-quality nutrition. “Clearly, eggs are a healthy, natural protein source and using capabilities to bring different formats to the market is an exciting opportunity,” he explains. “It’s also a sign of a maturing sector where strategic partnerships can unlock growth and resilience.”
As Sartori was keen to highlight, diversifying product portfolios is a major attraction for M&A activity right now, and Everett makes no secret of the fact that Noble Foods identified a growing appetite for added-value egg products in the UK market. He says it was a key reason why the company invested in its innovation and manufacturing site in Leicestershire, which allows the business to expand beyond shell egg into convenient, pre-prepared formats like omelettes. As an early example of what the factory is capable of, one of the site’s first launches was Happy Egg Co. frozen omelettes into Asda and Morrisons.
There are similar motivations for Griffiths Family Foods with the Eureden joint venture, with the Shropshire producer seeing the move as a chance to expand beyond shell eggs into the value-added sector. The new business will offer a full range of processed egg products, including liquid eggs, omelettes, poached eggs and egg bites.
It all makes sense in the context of prevailing consumer trends. In his latest analysis of the UK grocery market in July, Worldpanel by Numerator’s head of retail and consumer insight Fraser McKevitt noted that as consumers fret about rising food prices, there is a pattern of people choosing to make simpler meals when they are trying to save money. “Innovation is absolutely vital to help grocers keep up with new trends and make sure they’re meeting shoppers’ needs as behaviours and priorities shift,” he added.
Poultry meat and eggs both ideally meet that need state, and tick the boxes of health and affordability as well as Brits’ current obsession with protein. Future-proofing the category through innovation and more accessible formats is therefore highly logical.
M&As are not just about securing additional markets, however, but shoring up existing ones as well. Nick Murray, director of communications at 2 Sisters Food Group, underlined the fact that for Boparan, the Hook2Sisters deal would benefit all of the company’s businesses, supporting 2 Sisters and Bernard Matthews Foods with a continued supply of chicken and turkey for customers. Similarly, Everett is keen to point out that Noble’s recent investments “have all been about building a more resilient, innovative and sustainable supply chain”.
At a time when the threat of avian flu continually hangs over the sector, taking greater control of one’s operations and being able to offer the highest level of traceability is sensible. Everett speaks to the fact that Noble’s recent acquisitions have been part of a clear long-term strategy to strengthen its position as a purpose-led, vertically integrated food business, stressing that far from being opportunistic purchases, they were carefully considered moves that align with the company’s values and future goals. The Hardeman Egg Group’s CEO Ton Gielen similarly pointed to the addition of Bumble Hole making his business more agile and resilient, particularly at a time when the UK industry is under pressure to transition to cage-free systems and boost domestic food security.
What we’ve seen over the past few months is unlikely to be the end of companies hitting the merger and acquisition trail. Everett says any future purchases “would be considered carefully and strategically, as part of our long-term ambition to strengthen the egg sector and create more opportunities for British producers. While acquisitions aren’t a goal in themselves, we remain open to opportunities that align with our purpose and help us better serve our producers, customers and consumers.”
Sartori believes the uncertainty around Donald Trump’s tariffs and the volatility of commodity prices against the backdrop of the ongoing war in Ukraine has increased strain on food supply chains and added further risk – a pressure that may increase M&A activity going forward. In addition to business-to-business deals, private equity investors continue to circle around valuable UK food producers too. “Continued focus on core operations, bolstering supply-chain resilience, and future-proofing through a focus on health and wellness are likely to be priorities for the remainder of the year,” she says.
The evidence of what we’ve seen this summer is that there’s every chance there are more deals to be done.
Done deal: the four big M&As that have been agreed this summer
- 2 Sisters announced that its joint venture poultry operation Hook2Sisters was being sold to 2 Agriculture Holdings – part of the Boparan Private Office – with PD Hook-owned rearing, breeding and hatching farms and assets that support the current JV also part of the deal. The companies stressed that 2 Agriculture Holdings, PD Hook and 2 Sisters Food Group will continue to collaborate going forwards, with a focus on “maintaining the highest welfare standards for poultry and transforming the future of food”. PD Hook will retain and continue to operate two hatcheries – Cote and Dalton – and supporting rearing and breeding farms, which will allow Hook to continue with the supply of day-old quality chicks to the independent market. The sale is expected to complete in August.
- Eureden Oeuf and Griffiths Family Foods (GFF) announced the formation of a joint sales company, E&G Sales Co, to accelerate growth in the UK’s processed egg products sector. The new business will begin operations on 1 October and act as the exclusive sales platform for both companies’ value-added egg products in the British market. Eureden, part of the Breton cooperative agri-food group, said it sees the venture as a key step in its international growth strategy, and follows its 2023 acquisition of German egg specialist Ovofit.
- Noble Foods acquired Just Egg from Pankaj Pancholi and his family. Noble explained that over the past 20 years, Just Egg has built a reputation for high-quality products and outstanding customer service, becoming a respected and valued name in the egg industry. The two businesses highlighted their strong family-owned values, a commitment to quality and a focus on long-term relationships.
- Bumble Hole Foods, an egg products business based in Bromsgrove, Worcestershire, was acquired by Hardeman Egg Group, a leading European egg producer and manufacturer of egg products headquartered in the Netherlands. Bumble Hole will continue operations as usual, according to the companies, with Simon Bennett remaining as managing director to ensure leadership continuity, but Andrew Hewston and Sharon Jones stepping down.