Merger is just the beginning Booker's merger with Iceland is only the start of big changes that will sweep the entire grocery sector, the cash and carry group's chief executive has said. Stuart Rose told the Scottish Wholesale Association annual conference: "I believe we'll see more structural change in the food sector in the next five years than we've seen in the past 20. Convergence, consolidation and the international dimension mean the pace of change will only accelerate." Iceland, he stressed, shouldn't be considered one of the multiples'. Its stores had always been in the high street, he said, and as such it had helped stop the drift to out of town megastores. "In fact, I've heard of independent grocers who position themselves next to Iceland stores to benefit from the foot traffic created." Rose also defended the rationale of the merger in the face of criticisms from the investment community. Iceland shareholders have been dumping stock in the weeks following the news of the deal. The price has recovered to 262p, still way off the year high of 317.5p. Booker investors ­ who have more to gain from the deal ­ have until June 19 to accept Iceland's offer. But Rose told the conference: "I've heard comments along the lines of If you bring two sows' ears together, do you make a bigger sow's ear?' "But the merger will bring two strong brands together, reducing fixed costs and improving the range and distribution for both the companies." He also highlighted the online opportunities that the enlarged group would be able to exploit ­ including a business to business portal for independent retailers and caterers. The growth of the catering sector would also bring big changes in wholesale, Rose added. "In the US, catering takes 50% share of stomach'. We're not there yet, but it's going to be a big market." {{NEWS }}

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