M&A Activity on the Menu
When it comes to M&A, the food and beverage sector has seen some interesting activity in the first quarter of 2016. This follows a record breaking 2015 which notably saw H.J. Heinz Company merge with Kraft Foods Group in a deal which is expected to result in the company posting revenues of around $28 billion.
We take a look at recent food and beverage M&A activity as well as some upcoming rumoured movement in this sector.
It was reported this month that Krispy Kreme is being taken private by a unit of private investment firm JAB Holding Co. for $1.35 billion. The Krispy Kreme purchase comes only months after JAB’s $13.9 billion acquisition of Keurig Green Mountain, while the company also has controlling stakes in coffee chains Peet’s Coffee & Tea, Caribou Coffee, Espresso House and Jacobs Douwe Egberts, and bagel shop Einstein Noah Restaurant Group.
In a move to expand its offering, Hershey Co. purchased New York-based snacks company Ripple Collective LLC, which owns the BarkThins brands. Although the full financial details were not disclosed, the company expects to generate up to $75 million net sales in 2016.
There have been rumours circulating that Chinese pork giant WH Group is on the lookout for acquisitions, namely in the US. Depending on the type of business WH Group acquires, it will either become the leader of the global pork sector or diversify its revenue stream. Speculation has been rife as to which companies WH Group might target with names such as Tyson Foods, Sanderson Farms and Hormel foods all thrown into the mix.
Since Chobani turned down PepsiCo’s takeover offer in 2015 due to Chobani only wanting to part with a minority stake, PepsiCo is being watched closely for further acquisition activity. The conglomerate has made no secret that it is in the market for expansion in snacks and beverages, with 2016 more than likely being the year it makes a significant move.
Monster Beverage (MNST)
Trade-Ideas LLC recently identified Monster Beverage (MNST) as a strong on high relative volume candidate. ‘Strong on High Relative Volume’ stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A, so watch this space for activity in 2016.
When it comes to the food and beverage sector, M&A is critical to ensure that businesses remain competitive and are able to adapt to the ever-changing demands of consumers from across the globe.
With experience in a number of key sectors and representation throughout the Americas, Europe, Africa and Asia, Benchmark International can connect you with the right opportunity. To find out more, visit http://www.benchmarkcorporate.com.