Last year, the unstable economy forced C&T companies to re-evaluate their business models and strategies, with many choosing to streamline operations, expand into new markets and increase consumer engagement, says Lucy Copp
With France, Germany, Italy and Spain all bearing the brunt of the Eurozone crisis, and the UK floundering in and out of a double dip recession, 2012 proved pivotal when it came to making – and breaking – C&T businesses in the Big 5 and further afield.
As companies and consumers tightened their belts, some felt the strain more than others. Last year gave way to four quarters of mixed financial results, with a handful of companies emerging as clear frontrunners and certain categories outperforming others. While 2012 did not experience the same flurry of acquisitions that was observed in 2011, some influential deals and bids were announced – although in a couple of cases hesitation seemed to delay any real action, as companies treaded carefully around an unstable market. It appeared that, although still interested in mergers and acquisitions, companies were increasingly focused on their own expansion plans, streamlining and reorganising their existing businesses to cut costs, and exploring new ways of engaging consumers through innovative retail settings in-store and online.
January: Striking a deal
The year kicked off with the first major acquisition of 2012. It was announced that PZ Cussons had acquired premium hair care brand Fudge, from Australian-based Sabre Group in a deal worth £25.5m. The brand was placed in the PZ Cussons Beauty Group arm of the business, which includes St Tropez, The Sanctuary and Charles Worthington.
Meanwhile, German retailer Douglas Holding announced that it was in talks with
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