The experts within our Food & Beverage Group maintain ongoing contact with a wide range of knowledgeable sources to stay abreast of the issues and trends that could impact the industry’s M&A climate or otherwise influence our clients’ businesses. Following are a few of the topics addressed in our most recent Food & Beverage Review, which is published quarterly.
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FOOD & BEVERAGE REVIEW (2010: Q2) (View complete report)
Thoughts from the Group
We continue to see robust consolidation in the Food and Beverage Industry in some key segments such as ethnic food and bakery, as evidenced by Ralcorp’s acquisition of American Italian Pasta and ARYZTA’s acquisition of Fresh Start Bakeries. Marfrig Alimentos’ purchase of Keystone Foods also demonstrates the consolidation trend in the meat segment, as companies seek to expand internationally and gain access to new customers such as McDonald’s. Finally, the acceleration towards private label continues as shown by Treehouse Foods’ recent acquisition of Sturm Foods and Ralcorp’s recent acquisitions.
Processing Companies Increase R&D Efforts
With the downturn in the economy, and capital spending increases, processing companies are racing towards the future. Companies who are willing to take advantage of low material costs and competition for capital will jump ahead of the more conservative. This coupled with the fact that 73% of R&D budgets remained unchanged or grew this year, shows the importance that processing companies are placing upon the creation of new products and product lines, as well as the maintenance of existing products and product lines. The following is a look into R&D and product development according to McGladrey Capital Markets and David Feder of Food Processing.
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