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Market Monitor: Food & Beverage

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Market Monitor: Food & Beverage

Making the right decisions for your business starts with having the most accurate and current information available. Our Food & Beverage  Market Monitor keeps you up to date on the events, trends, and market forces that shape and guide the industry.

  • In 2023, the U.S. Food & Beverage industry demonstrates remarkable stability in mergers and acquisitions (M&A), contrasting the overall downtown in U.S. M&A transactions. Notably, the volume of Food & Beverage M&A transactions remained steady with 241 deals in 2023, compared to 250 in 2022, underscoring the sector’s resilience in challenging markets. 
  • Despite a consistent rate of M&A activities, emerging brands in the Food & Beverage sector face fundraising hurdles. There’s a noticeable shift in investor focus from high-growth startups to well-established companies with reliable cash flows. 
  • This year has been pivotal for larger consumer packaged goods (CPG) companies. They are increasingly acquiring established brands over newer market entrants. Notable acquisitions include J.M. Smucker’s purchase of Hostess Brands (famous for Twinkies), Campbell’s acquisition of Sovos Brands (owner of Rao’s), and Ferrero’s takeover of Wells Enterprises (known for Blue Bunny ice cream).
  • The Snacks & Confectionary sub-sector within the Food  Beverage industry continues to draw attention from strategic buyers and private equity investors. Recent transactions include Ferrara Candy’s acquisition of Jelly Belly, Cap Vest-backed Second Nature Brand’s purchase of Sahale Snacks, Apax Partner’s acquisition of Bazooka Candy Brands, and Atlas Holdings-backed Flagstone Foods acquisition of Emerald Nuts.

For more information or questions, please contact our contributors:

Rich Anderson, Managing Director: randerson@hexagoncapitalalliance.com

Brandon Clewett, Managing Director: bclewett@hexagoncapitalalliance.com

Johnny Sherwood, Director: jsherwood@hexagoncapitalalliance.com