Creating a European branded business
A Dalgety case study

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...
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Page 2: What is branding?

A brand is a particular product or characteristic that identifies a particular producer. Many mass-produced goods are almost identical. For example, most washing powders are very similar, as are different types of margarines. These goods tend to be produced by two or three large companies who encourage sales by creating a brand or marketing image which differentiates the products in the minds of...
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Page 3: Taking a strategic direction

In 1996 Dalgety put into effect a major strategic decision by focusing a key part of its activities on European petfoods. An important move in this direction was for the company to divest itself of its Golden Wonder and Homepride food businesses in order to acquire Quaker European Petfoods. In addition a rights issue was created to enable shareholders to put more capital into the business, which...
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Page 4: Growth

The challenge for Spillers now is to continue to support the growth of Felix, while identifying the key dog food brands that have potential to follow in its footsteps. The company needs to continue to support Felix, whilst at the same time establishing a place for other brands in the European market.In order to do this successfully, Spillers has placed a heavy emphasis on marketing. The company...
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Page 5: Synergy for success

The Dalgety organisation is one which believes in the importance of synergy. In simple terms, synergy arises when the sum of the individual parts of an organisation adds up to more than those parts when acting alone.In this case the effectiveness of Spillers Petfoods and Quaker European Petfoods (EPF) working together is far greater than would have been the case with the two individual firms...
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Page 6: Conclusion

The move by Spillers into European branding of petfoods should be seen as an important part of the overall strategy of the Dalgety Group of focusing on its best lines, and then concentrating on strengthening and growing each of these chosen businesses.The Group believes in the cross-fertilisation of skills while at the same time fostering technology to build a competitive edge. Concurrently, the...
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