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Ulster Fry Faces Competition Crisis
26 Mar
Summary
- Bakery merger could make Ulster Fry parts uncompetitive.
- Watchdog cites high market share for pancakes and potato bread.
- A sale of a Northern Ireland business is a potential remedy.
The supply of essential components for the traditional Ulster Fry faces potential uncompetitiveness due to a proposed merger between two major bakery firms. The Competition and Markets Authority (CMA) has examined the deal involving ABF bakeries, owner of Sunblest, and Hovis, which owns Ormo brands.
Provisional findings from the CMA indicate that the merged business would dominate the Northern Ireland market, holding an 80% share in pancakes, 60% in soda farls, and nearly 50% in potato bread. Such market concentration is expected to lead to a significant reduction in competition.
While the broader UK bread market is not a concern, the CMA is awaiting solutions from ABF and Hovis by April 9 to address the Northern Ireland market issues. A potential resolution involves ABF selling its Northern Ireland operations to a third party, which could create opportunities for other suppliers.
The CMA noted that ABF is currently exploring the sale of its Northern Ireland business, with several parties having submitted non-binding offers. This process might allow new entrants, including businesses from the Republic of Ireland, to expand into the Northern Ireland market.
