2H 2021 Food & Beverage M&A Report

Never satisfied with the status quo, the Food & Beverage industry continued to hunger for growth through 2021. Bigger producers have focused their efforts on expanding their exposure to high-growth emerging CPG brands through M&A. Moving on from a challenging 2020, the year the COVID pandemic closed restaurants and saw consumers locking themselves at home, the sector began to show signs of life – and dare we say “growth” – in 2021. Growth in snack sales, boosted by the stay-at-home crowd, appears to be sustainable, and companies are investing in infrastructure to capitalize. Consumers flush with cash after a year avoiding bars and restaurants, are ready to spend again. And manufacturers, such as American Foods Group, announced renewed investments in production with the construction of a $450 million Missouri beef processing facility expected to create 1,300 jobs and a billion-dollar economic impact in the area. Some of the largest players moved to shed portfolio components that showed signs of slowing while advancing in growth positions such as sports and energy beverages. We are also watching closely as big food protein processers invest in – or acquire – potential competitors in alternative sectors, such as cell-manufactured or plant-based competitors as a hedge…