Competition regulator blocks Unox deal between Unilever and Zwanenberg

If Zwanenberg Food Group acquires the Unox and Zwan brands from Unilever, it could lead to higher prices for smoked sausages, cooked sausages, and soups, fears the Dutch competition authority, which is blocking the deal.

Excessive bargaining power

The announcement of the sale of Unilever’s Unox and Zwan brands to Zwanenberg dates back to December 2024, but the Netherlands Authority for Consumers and Markets (ACM) announced a further investigation and reported this morning that the acquisition cannot proceed. Following the acquisition, Zwanenberg’s market share in smoked sausages, cooked sausages, and shelf-stable soups would rise from 60% to approximately 80%. This would give the company an overly strong bargaining position vis-à-vis supermarkets, potentially resulting in higher prices for consumers.

The objection is a setback for Unilever, which has already sold off several divisions in recent years to focus on its strongest brands. It is also a disappointment for Zwanenberg: the meat products company already manufactures many products for Unox and had hoped to become the owner of the brand as well. The ACM deemed Zwanenberg’s proposal to sell three production lines to another meat company insufficient.

Both companies involved have therefore reacted with disappointment to the news. Zwanenberg is considering an appeal, while Unilever will review the decision before determining its next steps.