Bonduelle – My subject lineIn retrospect, it was ill chosen / flippant and I knew it the moment I hit submit. Here are my less flippant thoughts:
While an order for another 400kW system would have been nice, Bonduelle not exercising its option now opens up a huge market segment for ENW in North America.
According to this slightly dated (2016) statistic, the U.S. frozen vegetable market is worth $8.6 Billion. Adding in Canada probably brings this to somewhere around $9.5 Billion.
https://www.statista.com/statistics/185683/us-frozen-vegetable-product-shipment-value-since-2002/ To put this number into perspective, Bonduelle has global sales of ~$3.1 Billion of which 46% are attributable to the U.S. and Canada which amounts to $1.4 Billion. Out of this number 24% are derived from frozen vegetable product (~$340 Million) or~4% of the North American market.
https://www.bonduelle.com/en/investors/financial-performances.html In other words, by eliminating Bonduelle’s exclusivity ENW gained access to a potential $8.6 Billion market versus a ~$340 Million market share under to Bonduelle exclusive.
The drawback: It will slow things down in the short term BUT it exponentially increases ENW’s potential medium and longer term.