Dutch competition watchdog blocks sale of iconic sausage brand Unox

The Authority for Consumers and Markets (ACM) is not approving the takeover of Unox by Zwanenburg. The acquisition would make Zwanenberg virtually the only major supplier of smoked and cooked sausages, including frankfurters, in Dutch supermarkets, according to the ACM. The company would also gain an overly strong position in the market for shelf-stable soups.

The ACM thinks there is a risk that Zwanenberg will use this market position to charge supermarkets higher prices. Martijn Snoep, the Chairman of the Board at ACM, spoke about this: “We want to prevent people having to deal with higher prices as a result of the takeover.”

Supermarkets would have fewer options regarding suppliers following the takeover, with the risk of price increases in stores as a result. “We do not want that, especially in a time where there are already concerns about the high cost of food.”

In December 2024, food group Unilever announced the sale of Unox to Zwanenberg. The ACM reported in June last year that they would be taking extra time for their investigation into the deal due to their concerns about high prices.

Zwanenberg has disputed the ACM's decision and is considering taking legal action against it. The company argues that branded products and supermarket own-brand goods operate in entirely separate markets. “The ACM lumps major brands and private labels together, even though these markets are completely different,” Zwanenberg said.

The company also argues that enough suppliers would remain on the international market and that the ACM has failed to demonstrate that the takeover would result in higher prices. The company further accuses the regulator of “structurally underestimating the power of supermarket chains,” saying their size gives them “an extremely strong negotiating position.”

Unilever was said to be “very disappointed” by the decision. It is unclear if the Unox parent company will appeal ACM’s decision. “We will carefully study today’s decision and use the coming period to decide our next steps,” a spokesperson said.