The Global M&A Partners (GMAP) Food & Beverage Newsletter highlights capital markets and mergers and acquisitions activity, the financial and operating performance of certain publicly-traded companies, and trends and issues affecting the industry.
Bakery manufacturers are leveraging critical food trends to shape their portfolios and product offerings to remain relevant with their target consumers. Evolving preferences, underpinned by the rising influence of Millennial and Gen Z consumers, are fueling demand for bakery products that satisfy specialized needs for nutrition, diet, health conditions, convenience, authenticity, and small indulgences. Healthy and diet-friendly options are rapidly gaining popularity, while changing consumer palates are impacting food choices, encouraging the use of premium ingredients, functional/superfoods, and bold flavors.
The M&A market is gaining momentum as industry participants look to further leverage acquisitions and orient product portfolios towards consumer demand for innovation and functionality:
- Investments in niche, better-for-you, and health-focused products are driving category disruption/evolution. Notable targets include Rubicon Bakers, Rudi’s Organic Bakery, Give & Go Prepared Foods, and Bantam Bagels.
- Large bakery and snack product manufacturers — among them Mondelez International, Treehouse Foods, Dawn Foods, and Nestle — are divesting non-core, underperforming brands and divisions to reshape their portfolios towards premiumization and on-trend products.
- Private equity funds are looking to establish scalable growth platforms in the bakery space, with Tilia Holdings, Keystone Capital, Trive Capital, Shoreline Equity Partners, and Platinum Equity among the sponsors to recently complete acquisitions.
Brown Gibbons Lang & Company (BGL) is a member of GMAP, a global partnership of independent investment banks structured to provide clients with unparalleled sector-focused access to strategic relationships, investors, and opportunities globally. With partner offices in more than 30 countries, the partnership drives premium value for our clients by ensuring the highest quality and most relevant potential buyers are involved in BGL processes.
When international buyers are interested in acquiring our clients, bridging cultural, language, and stylistic gaps becomes extremely important in order to drive value in a timely fashion. The GMAP Food & Beverage sector team comprises dedicated M&A professionals with representatives from 17 countries, including those with the highest Food & Beverage activity in the world: Brazil, China, France, Germany, and the U.S.