CHICAGO — Food and beverage companies are capitalizing on today's selective consumer, with the need to innovate driving investment strategy, according to the Consumer Products & Retail Insider, an industry report released by Brown Gibbons Lang & Company (BGL). Differentiated brands catering to better-for-you and other specialty food segments are in high demand, with the pace of acquisitions accelerating across all sectors. Click here to access the full report.
The familiar adage "you are what you eat" is gaining steam as wholesome, better-for-you and specialty food products attract investors. Nestle (Sweet Earth Natural Foods), Campbell Soup Company (Pacific Foods of Oregon), Kellogg (RXBAR), and Dean Foods (Uncle Matt's Organic) each announced recent acquisitions in the space. They also make up a growing number of large companies that are backing disruptive brands —many promising start-ups— to get a foothold in emerging markets while keeping a pulse on evolving consumer trends. Campbell's venture arm, Acre Venture Partners, has invested in more than ten start-ups during the last two years, including Back to the Roots and The Safe + Fair Food Company. Other notable recent deals in the better-for-you space include Back to Nature Foods, acquired by B&G Foods, and Inventure Foods, which agreed to merge with Utz Quality Foods.
Companies are also taking steps to reshape their portfolios by shedding stagnant brands and expanding into adjacent specialty food categories to accelerate growth. Conagra Brands has stated plans to overhaul its branded business to improve competitiveness. Recent acquisitions of Angie's Artisan Treats, maker of better-for-you popcorn brand Boomchickapop, and Thanasi Foods, which owns premium snack brands Duke's and BIGS, are illustrative of these trends.
BGL publishes periodic Insider research publications on a variety of industries including automotive; building products and construction materials; business services; consumer and retail; environmental and industrial services; healthcare and life sciences; industrials; metals; and plastics and packaging. Download BGL Insider reports at www.bglco.com/research.
About Brown Gibbons Lang & Company
Brown Gibbons Lang & Company is a leading independent investment bank serving the middle market. BGL specializes in mergers and acquisitions advisory services, debt and equity placements, financial restructuring advice, and valuations and fairness opinions, with global industry teams in Business Services, Consumer & Retail, Environmental & Industrial Services, Healthcare & Life Sciences, Industrials, and Real Estate. BGL has offices in Chicago, Cleveland, Philadelphia, San Antonio, and San Diego, in addition to Global M&A partner offices in more than 50 countries across 5 continents. BGL is able to deliver to our clients unparalleled access to strategic relationships, investors, and opportunities globally. For more information, please visit www.bglco.com.
Source: Brown Gibbons Lang & Company