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’s M&A trends.

U.S. Food & Beverage M&A Activity in 2024

Through November 2024, U.S. Food & Beverage M&A volume has increased by 7% compared to the same period in 2023. A 15% rise in private equity transactions suggests a stronger M&A market overall.

Snacking Category Sees Growth

With snacking becoming more popular—74% of Americans report snacking daily according to the 2024 IFIC Food & Health Survey—2024 has seen significant deals in this area. Notable acquisitions include PepsiCo’s purchase of Siete Foods for $1.2 billion and Mars’ acquisition of Kellanova for $35.8 billion. cautious approach from acquirers and investors.

Baked Goods Continue to Attract Interest

The baked goods category remains a strong focus for M&A, with private equity firms making several acquisitions in 2024. Examples include:

Legacy Bakehouse (Benford Capital Partners) acquiring Angelic Bakehouse
Sweetmore Bakeries (Shore Capital) acquiring Sweet Eddie’s
Commercial Bakeries (Graham Partners) acquiring Imagine Baking

These deals highlight continued interest in the sector.

Potential Impact of Tariffs and Domestic Sourcing on M&A

While the effects of the incoming Trump administration’s proposed tariff policies and the “Make America Healthy Again” agenda are still uncertain, companies that focus on domestic sourcing, manufacturing, and clean-label products may be better positioned for acquisition.

Looking Ahead: M&A Activity in 2025

Hexagon Capital Alliance expects M&A activity to remain strong in 2025, supported by factors such as a post-election certainty, potential for looser regulatory scrutiny in the financial sector, record levels of private equity dry powder, strong strategic balance sheets, and a steadily improving interest rate environment. Companies looking to attract investors and buyers should consider going to market in Q1 2025.

For more information or questions, please contact our contributors:

Rich Anderson, Managing Director: randerson@hexagoncapitalalliance.com

Johnny Sherwood, Director: jsherwood@hexagoncapitalalliance.com

Market Monitor: Online Retail

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Market Monitor: Online Retail

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

US Retail Sales and Back-to-School Spending Trends Q2 2024

In the second quarter of 2024, total retail sales in the United States reached an impressive $1.83 trillion, marking a 2.2% increase compared to the same period in 2023. This uptick reflects ongoing consumer confidence and spending growth across various sectors.

Back-to-School Spending Surge: $31.3 Billion in 2024

As summer draws to a close and the school season begins, parents have collectively spent $31.3 billion on back-to-school (BTS) items. Key spending categories include clothing and accessories, tech products, and school supplies. Notably, online retailers have significantly increased their share of traditional school supply sales, rising from 22.7% in 2019 to 37% in 2023. Among online retailers, Walmart, Amazon, and Target are the top players, with Amazon surpassing Target in BTS sales in 2023.

Amazon Prime Day 2024 Breaks Records with $14.2 Billion in Sales

Amazon Prime Day 2024 set new records as the largest event in the company’s history, generating $14.2 billion in total spending—an 11% increase year-over-year (YoY). This robust growth was fueled by a combination of new product releases, heightened demand for electronics, back-to-school shopping, and home furniture and appliance upgrades. The average order value during Prime Day 2024 was $57.97, with 60% of households placing two or more orders. The success of Prime Day 2024 offers valuable insights into anticipated spending trends for the upcoming holiday season, driven by increased purchase volumes rather than mere price hikes.

M&A Activity and Investment Trends in Consumer Markets

Looking ahead, mergers and acquisitions (M&A) activity in consumer markets is expected to rise, although the timing remains unpredictable. Investors are likely to be discerning, focusing on brands that adapt effectively to market shifts and demonstrate continued growth. Companies that successfully navigate these changes are well-positioned to attract premium valuations from investors.

By incorporating these insights, businesses and investors can better understand current market dynamics and make informed decisions as they plan for the future.

For more information or questions, please contact our contributors:

Rich Anderson, Managing Director: [email protected]

Tyler Dale, Managing Director: [email protected]

Johnny Sherwood, Director: [email protected]

investment banking m&A online retail

Tag: investment banking