Ownership Changes by Purchase and Merger in Selected Food Industries

Excerpts from the report: Alterations in the structure and practices of food markets may directly affect farmers by changing the numbers and kinds of buyers to whom they sell, the conditions and terms of sale, and marketing costs and margins. Since World War II the structure and practices of many food markets have been influenced by companies obtaining control of other firms by various means. Trade reports have emphasized growth by such methods of acquisition as purchase of assets, purchase of stock, and contractual arrangements. Because such reports have been sporadic and fragmentary it has not been certain how representative they actually are. In order to describe the frequency and character of acquisition in the industry as a means of growth, the Bureau of the Census and the Department of Agriculture conducted an acquisitions-disposal survey covering the period 1952-58. This study is part of a broad program of research to increase the efficiency of marketing food products. This report describes the industry's response to the questionnaire concerning the extent and character of acquisitions and disposals, the types of financial transactions by which the acquisitions and disposals were made, and the form of business organization of the acquired companies, and it discusses points which are important in interpreting these data. Eight food industries were included in this survey: Dairy products manufacturing; canning, preserving, and freezing (excluding seafood); bakery products; vegetable and animal oils; food product wholesalers; farm product assemblers; grocery stores; and food stores other than grocery stores.