Expect ‘Kraft casualties’ says Leatherhead

Packaging firms across Europe would be ‘dramatically affected’ by Kraft Foods’ decision to slash supplier numbers, with the move causing potential casualties in the sector, says Leatherhead Food Research.

“My understanding is that this will affect 30,000 companies globally across ingredients and packaging companies, which I suspect will be affected quite dramatically, says LFR market research analyst Chris Brockman.“You’re looking at a dramatic effect on the supplier base, leading to consolidation at that end as well. This will affect most strongly a firm that is a big player in its own market, but not on the world stage. That type of company is likely to be caught up in the middle ground where there might be casualties.