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FOOD & BEVERAGES Q3 2017 INSIGHTS

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

“The current natural/bio trend creates many high potential projects to explore, even for small & mid cap companies. More and more SME’s on the Belgian F&B market specialize or diversify in more natural and value-added products. Next to that, we observe than rather to develop new products on their own, companies acquire businesses that are producing the type of foods or ingredients they are looking for. These acquisitions are frequently realized at lower cost than spending time to do it themselves. Acquisitions are the new R&D for many F&B players. Finally, we also note that intense competition between brands towards final consumers as well as major retailers exhorts F&B companies to invest massively in brands & marketing. Acquiring a brand which is well positioned in the mind of consumers/retailers, is highly strategic and decisive for the long term growth of a company.”