Coles purchase of ready meals maker Jewel Fine Foods faces ACCC check

Coles is buying Jewel Fine Foods just as ready-made meals enjoy a virus-led surge, but the ACCC must approve the deal.

Ready meals are becoming increasingly popular. Picture: Hollie Adams

Supermarket giant Coles has snapped up ready-made food producer Jewel Fine Foods, subject to competition regulator approval.

The deal comes after the Australian Competition and Consumer Commission blocked an attempt by rival producer B&J City Kitchen to buy Jewel. That deal would have combined the top two players in the $600 million ready-to-eat prepared food market.

It also comes as the coronavirus significantly boosts demand for ready-made food, because fewer people are travelling and eating in restaurants.

Jewel went into voluntary administration last year and Coles, formerly part of Wesfarmers, is buying the business for an undisclosed price.

Woolworths has a 23 per cent stake in B&J which also supplies Woolworths, Coles and Metcash supermarkets.

If the Jewel deal goes through it will mean the two big supermarket players will control the ready-made market.

Jewel got into financial problems after a $70 million expansion in 2018 which doubled the size of its manufacturing capability.