Creating a European branded business
A Dalgety case study

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Page 1: Introduction

This case study shows how and why Spillers Petfoods acquired Quaker European Petfoods for £465m in April 1995 to create Europe’s second largest petfood manufacturer.

Spillers + Quaker European Petfoods = Europe’s No.2

This was an important strategic move for Dalgety which like many other key UK companies has realised the importance of building up a branded business with a global dimension. Companies who are inward looking and simply rely on their own domestic market lose market share to others who think globally. Today, huge markets are opening up within the European Union, within Pacific Rim countries, within Eastern Europe and within other trading blocs. The intelligent company therefore identifies its best lines and then works out how to develop these lines in larger areas, whilst building on the synergy of acquiring complementary lines which already exist in overseas markets. As we move towards the millennium we are seeing the development on a global scale of mass markets which can be reached quickly by large scale producers. TheDalgety 2 Image 3 quantities of products such as Coca-Cola and Bic Biros which can be sold throughout the world are vast. The growth of global sales is rising year by year. For example, it is interesting to note that when the Rolling Stones brought out a new disc in 1994, it quickly reached a much higher global sales figure than any of their 1960s and early 1970s records had done at the height of their popularity in the UK and America.

Dalgety | Creating a European branded business