The report below gives a good overview of the Fall 2021 M&A activity in the Food and Beverage Industry Sector. The global functional foods and beverage market was valued at $281.14 billion in 2021, as per research published by Statista. The market is predicted to grow at a CAGR of about 9.5 % between the forecast period 2021 and 2028. Asian consumers are set to double their spending on food to more than $8 trillion by 2030 according to a joint report by PwC, Rabobank and Temasek. The demand would be driven by health-conscious and digitally savvy consumers. However, higher commodity prices and continuous supply chain disruptions are forcing food and beverage brands, manufacturers, and retailers to develop new strategies to safeguard profits while retaining market share. Food-related commodity prices are expected to rise in 2021 because of several factors, including higher demand from China, tighter supplies due to harsh weather occurrences, and anticipation that the Biden administration will prioritize biofuels investment. Retailers and food manufacturers are also facing the challenge of rising freight and transportation costs. Going forward, the increasing demand for organic foods and beverages, rising penetration of organized retail, continued technology development, and rising population is anticipated to propel future growth.

Posted by Jurgen van Dijk.

Read the Entire Fall 2021 Food and Beverage Report Here

The report below gives a good overview of the Summer 2021 M&A activity in the Food and Beverage Industry Sector. COVID-19 came as a shock to many businesses, as governments around the world shut down parts of their economies and more individuals began working from home. Foodservice closures wreaked havoc on the food supply chain, forcing businesses to rethink their present business models. However, the sector showed tremendous resilience.

Gradual re-opening of economies created new opportunities for the sector and food manufacturers became more adaptable to the changing consumer behavior. The sector will be able to keep up with changing consumer preferences primarily due to food innovations driven by shifting consumer palates and the introduction of creative cooking. The food and beverage industry is adopting the trend of localized production. The US food and beverage industry services market by revenue is expected to grow at a CAGR of approximately 7% during 2020–2026, as per report published by Reportlinker.com. Going forward, the food and beverage industry is expected to focus more on health, wellness, and sustainability, as well as a growing emphasis on implementing new technology solutions, in order to improve customer experience.

Posted by Jurgen van Dijk.

Read the Entire Summer 2021 Food and Beverage Report Here

The report below gives a good overview of the fourth quarter M&A activity in the Food and Beverage Industry Sector. M&A activity for North American based target companies in the Food and Beverage sector for Q3 2019 included 49 closed deals, according to data published by industry data tracker FactSet.
The Hershey Co acquired One Brands LLC, formerly known as Oh Yeah! Nutrition and a portfolio company of CAVU Venture Partners LLC, for US$397 million in cash, subject to certain adjustments. The acquisition complements The Hershey Co’s existing Oatmega business. The transaction is expected to be accretive to the earnings per share of The Hershey Co. Founded in 1999, One Brands is located in Charlotte, North Carolina and manufactures protein bars.

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The report below gives a good overview of the third quarter M&A activity in the Food and Beverage Industry Sector. M&A activity for North American based target companies in the Food and Beverage sector for Q2 2019 included 48 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions in the sector was announced in June when Butterfly Equity LP acquired Wm Bolthouse Farms, Inc. from Campbell Soup Co for US$510 million in cash, subject to customary adjustments. Founded in 1915, Wm Bolthouse Farms is located in Bakersfield, California and engages in growing and processing carrots. The deal was subject to customary closing conditions and was expected to close by the end of Campbell Soup Co’s fiscal year 2019.

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The report below gives a good overview of the second quarter M&A activity in the Food and Beverage Industry Sector. M&A activity for North American based target companies in the Food and Beverage sector for Q1 2019 included 48 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions was announced in February when PepsiCo, Inc. acquired CytoSport, Inc. from Hormel Foods Corp for US$465 million in cash. Included in the acquisition are the Muscle Milk and Evolve Brands. CytoSport is located in California and manufactures nutritional supplement products.

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The report below gives a good overview of the first quarter M&A activity in the Food and Beverage Industry Sector. M&A activity for North American based target companies in the Food and Beverage sector for Q4 2018 included 76 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions closed in November when Kerry Group Plc acquired Fleischmann’s Vinegar Co., Inc. from Green Plains, Inc. for US$353.9 million in cash. Kerry Group engages in the manufacturing and distribution of food and beverages. Fleischmann’s Vinegar Co. manufactures and produces industrial vinegar and cooking wine. The company was founded in 2002 and is headquartered in Cerritos, CA.

Industry Indicators

• The consumer price index for food, an indicator of food product values, rose 1.6% in January 2019 compared to the same month in 2018.
• US nondurable goods manufacturers’ shipments of food products, an indicator of demand for food manufacturing, rose 1.3% year-to-date in November 2018 compared to the same period in 2017.
• US retail sales for food and beverage stores, a potential measure of food demand, increased 3.4% in 2018 compared to 2017.
• Total US wholesale sales of nondurable goods, a potential measure of food demand, rose 9.3% in October 2018 compared to the same period in 2017.

Posted by Terry Fick.

Read the Entire Food and Beverage 1st Quarter Newsletter Here

The report below gives a good overview of the fourth quarter M&A activity in the Food and Beverage Industry Sector.  M&A activity for North American based target companies in the Food and Beverage sector for Q3 2018 included 45 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions was announced in September when The Hershey Co. acquired Pirate Brands, LLC from B&G Foods, Inc. for US$420 million in cash, subject to adjustments. The Hershey Co. engages in the manufacture and marketing of chocolate and sugar confectionery products. Pirate Brands operates as a natural snack food maker. Its products include baked, fried and air popped snacks. The company offers its products through stores in the US, Canada, Europe and Asia. The company was founded in 1987 and is headquartered in Sea Cliff, NY.

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The report below gives a good overview of the third quarter M&A activity in the Food and Beverage Industry Sector. M&A activity for North American based target companies in the Food and Beverage sector for Q2 2018 included 70 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions closed in May when Lassonde Industries, Inc. acquired Old Orchard Brands, LLC for US$158.9 million in cash, contingent payout and other payment. Under the terms of the agreement, Lassonde Industries paid US$146 million in cash and an additional US$10 million over next two years subject to specified financial milestones. The transaction is in line with Lassonde Industries’ growth strategy and improves its manufacturing footprint in the Midwestern United States. Founded in 1985, Old Orchard Brands, is located in Sparta, Michigan and processes and bottles fruit juices, frozen juice concentrates and nonalcoholic drink mixers.

The recent acquisition of Body Armor by Coca Cola is a continued example of the growth in the specialty beverage sector. This has been particularly evident in the tea sector.

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The second quarter M&A below provides you a good overview on activities in the Food and Beverage Industry Sector. M&A activity for North American based target companies in the Food and Beverage sector for Q1 2018 included 38 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions was announced in January when Highlander Partners LP acquired Chicago Custom Foods LLC, trading as Kernel Season’s from VMG Equity Partners LLC for an undisclosed amount in cash. The transaction was funded by Regions Bank and Norwest Mezzanine Partners. The acquisition allows Highlander Partners to expand its investment portfolio and enables it to focus on food companies and the CPG sector in general. Founded in 2000, Chicago Custom Foods LLC is located in Elk Grove Village, Illinois and provides popcorn seasonings and other snack products.

The cost of food in the United States increased 1.40 percent in April of 2018 over the same month in 2017.

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The first quarter M&A below provides you a good overview on activities in the Food and Beverage Industry Sector. M&A activity for North American based target companies in the Food and Beverage sector sector for Q4 2017 included 72 closed deals, according to data published by industry data tracker FactSet. One of the notable transactions of the quarter was announced in October when Ferrero SpA acquired Ferrara Candy Co, Inc., a portfolio company of Catterton Management Co LLC, for a.. Read more »