The state of M&A in the food industry
Mergers and acquisitions remain popular in the food and beverage space, but increasingly many deals are taking on a different look.
After years of multibillion-dollar megadeals, food and beverage companies remain active in M&A, but are turning to bite-sized acquisitions to help them grow. At the same time, CPGs are pruning and divesting slow-growing divisions or brands, and then using the cash they receive from their sale to purchase companies in trendier areas like snacking or plant based, invest in their core operations or improve their balance sheets.
The M&A transactions not only include the traditional deals between two large CPGs, but increasingly have spilled over into companies going public through non-traditional routes. Snackmaker Utz entered the public markets through a blank-check company — an investment vehicle created by an entity raising funds with the goal of merging or acquiring another business. Indoor greenhouse operator AppHavest is expected to do the same early this year.
As large businesses shed assets, founders and CEOs who once ran these brands before they were sold to the bigger food or beverage companies have reacquired them. In just the last year, Krave jerky, Zico coconut water and Uncle Matt's Organic have taken this path. With M&A a key tool for many CEOs to reshape and grow their companies, deal making among food and beverage firms is unlikely to slowdown anytime soon.
In this report, you'll find stories that include:
- How food manufacturers are overhauling their portfolios in a bid to spur growth
- Private equity firm Sonoma Brands' search for new deals
- Diageo's pursuit of a premium portfolio through M&A
- 3D-printed cultured meat company Meat-Tech 3D entrance into the public markets
- The outlook for how CPGs will reshape their product offerings in 2021
These are just a few of the many issues impacting M&A in the food and beverage sector. We hope you enjoy this deep dive into this current trend.