Food and beverage trends 2019: how changing consumer preferences are influencing M&A

Farrelly & Mitchell examine the changing tastes and expectations of today’s consumer and how they influence M&A.

Consumers have evolved, and so do have their purchase decisions. They expect reliance, innovation and differentiation in favour of traditional factors such as price and brand. Innovative F&B companies are increasingly focusing on these through M&A to stay connected with this new era consumer.

The report at a glance

  • staying relevant to the consumer is becoming the biggest challenge to Food & Beverage (F&B) companies
  • Acquiring successful companies with innovative portfolios is becoming a plug-in practice of large, cash-rich companies seeking quick wins
  • Consumers are increasingly scrutinising product labels searching for “fresh”, “natural” and “authentic”. Small to mid-sized companies are actively addressing these needs
  • North America and Europe accounted for over 80% of $365 Billion worth of global consumer product deals in 2017
  • Beverages, Agriculture and Protein producers account for almost 50% of the M&A deals in North America
  • Telling the right story is now catching consumer attention more than the brand and the price tag
  • There were approximately 60 reported transactions in the MENA region in the past 5 years, and the GCC accounts for over 60% of the deals
  • Private Equity firms are seeking to invest in high-performing small to medium-sized companies
  • The importance of due diligence cannot be overlooked to outline the balance between opportunity and risk, which helps to improve the buyer’s negotiating position
  • Farrelly & Mitchell are pleased to present our report which focuses on identifying evolving consumer tastes and preferences and how these influence M&A in the global and MENA Food and Beverage insustry

We have a distinct understanding of consumer behaviour within the industry. Thanks to our extensive experience working with clients globally and regionally. We put this knowledge to good use in the report to discuss M&A outlook in the Food and Beverage industry in the near future, and we highlight the importance of some preliminary evaluation steps for investors when pursuing transactions in detail within this space.

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