European food producers out of favour

27 April 1999

European food producers out of favour

EUROPES food producers and processors have fallen out of favour with investors, reports the Financial Times.

The reason is partly technical – most of the non-cyclical goods and services groups have underperformed the market since January.

But there are also concerns about the sectors lack of top-line growth.

The newspaper reports that producers have responded to this trend by attempting to consolidate around the most profitable parts of their operations.

Analysts remain sceptical that smaller food companies will be able to do the same.