Industry Update: CPG Food & Beverage

VRC is proud to release its latest Industry Report. The report provides a concise, insightful update on the Consumer Product Goods – Food & Beverage industry including recent transactions, market multiples, company performance and purchase price allocation percentages.

Read the full report: Consumer Product Goods – Food & Beverage: October 2019

October 2019 Industry Highlights

  • In the five years leading to 2019 the food & beverage industry has experienced growth due to rising discretionary income among households and evolving consumer preferences. In that time Americans have become increasingly health-conscious and seek more nutritious alternatives to traditional snacks and drinks. Pressure has led many companies to focus efforts on high growth, and often healthier, brands and product offerings as consumer tastes and preferences evolve
  • In response to the above changes, manufacturers have continued to add various healthy snacks to their product portfolios via acquisition or by reformulating products to meet consumer demands for lower sugar, sodium and calories. Recent acquisitions such as PepsiCo Inc.’s purchase of a 26% interest in China-based Natural Food International ($131 million), Mondelez’s acquisition of a majority stake in Perfect Snacks, and Flower Foods’ acquisition of gluten-free baking company Canyon ($205 million) exemplify this trend.
  • In 2019, many of the key brands and industry leaders have struggled to keep up with consumer preferences and an ever-evolving food and beverage landscape. Headlines have been dominated with concerns about growth and sales of underperforming brands such as Campbell’s fresh-food unit and Kellogg’s Keebler cookie brand. Conagra, General Mills, and Campbell have all fallen short of their financial targets leaving investors disappointed and frustrated. Kellogg even announced layoffs in the wake of poor performance and declining operating profit.
  • Read the full October 2019 CPG Personal Care industry report.

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