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FOOD & BEVERAGES Q4 2017 INSIGHTS

Allyum’s industry expert, Martin DELÉPINE, gives his quarterly insights on the F&B industry.

“Deal volume within the F&B industry remains robust with approximatively 90-100 deals per year for Benelux and France. The evolving mindset of consumers drives business demand, indirectly driving strategic focus and M&A transactions. The F&B industry offers a great example: as many consumers strive to make healthier choices, retailers and producers have been scrambling to ensure they are prepared to meet demand with the right product. In fact, more and more consumers now are seeking for more natural and plant-based foods. The growth of this natural/bio segment is driving M&A activity and is expected to create continuous opportunities for F&B companies.  Next to the major and continuous natural/bio trend, bargaining power towards retailers, private labels and visibility towards final consumers, and diversification (in terms of product, territory and business model) remain also key elements to deal with for F&B companies. For the last quarter of 2017 and as major unachieved move for the F&B sector, we can mention the Belgian company Greenyard, which has always been growing by acquisitions, and which had the ambition to buy the American Dole. It seems that negotiations have failed for pricing and integration purposes.”  Read full PDF here