Trends in Food & Beverage M&A
The food and beverage sector has shown notable resilience in mergers and acquisitions (M&A) throughout 2025, even as investor activity becomes more selective than in previous boom cycles. Deal flow remains robust—particularly among private equity firms pursuing brands aligned with health-forward consumer trends and operational excellence. Supported by shifting macroeconomic conditions and evolving eating patterns, including the growing influence of GLP‑1 drug use, acquirers are zeroing in on companies that blend premium market positioning with modern supply‑chain capabilities and product innovation.
Key Trends in Food & Beverage M&A:
Strong overall deal value across manufacturing and distribution (~$450B)
Total dealmaking across consumer manufacturing and distribution approached $450 billion in 2025, with food and beverage maintaining a meaningful—though increasingly selective—share. This reflects a market where capital remains plentiful, but investors have become more disciplined, focusing on categories aligned with long‑term consumer and operational trends.
Private equity laser‑focused on platform builds and bolt‑on acquisitions
Financial sponsors continue to deploy significant dry powder, concentrating on building scalable platforms and acquiring bolt‑on brands that bring operational efficiencies, margin expansion opportunities, or strong consumer affinity. PE activity remains a core driver of deal flow as firms target assets with both brand equity and room for operational improvement.
Health‑oriented investment spotlight: Gryphon Investors × Spindrift
Gryphon Investors’ majority stake in Spindrift exemplifies heightened interest in premium, “better‑for‑you” beverage brands. Investors are prioritizing products that offer authenticity, natural ingredients, and differentiation in a competitive functional‑beverage landscape—attributes that support premium pricing and strong repeat purchase rates.
Strategic consolidation accelerates: Mars’s proposed $35.9B acquisition of Kellanova
Mars’s bid for Kellanova marks one of the largest pending food‑sector transactions in recent years, signaling a push toward category leadership in global snacking. Bringing brands like Pringles and Cheez‑It into Mars’s portfolio would strengthen its scale, expand distribution synergy opportunities, and reinforce consolidation trends among major CPGs.
Wellness‑driven brand focus: PepsiCo’s $1.95B acquisition of Poppi
PepsiCo’s deal for Poppi underscores the surge in demand for functional and transparency‑driven beverages. Poppi’s prebiotic positioning, clean‑label ingredients, and plant‑based formulation align with consumer preferences for gut‑health benefits and low‑sugar options—trends driving premium growth within soft drinks.
GLP‑1 medications reshape consumer eating patterns
Rising use of GLP‑1 drugs like Ozempic and Mounjaro is reducing demand for heavy, indulgent foods, pushing companies to reformulate toward nutrient‑dense, functional alternatives. Brands are responding with higher‑protein, lower‑sugar, and satiety‑oriented offerings to meet the evolving needs of GLP‑1‑influenced consumers.
Supply‑chain excellence becomes a top investment priority
Investors increasingly favor companies with resilient, tech‑enabled operations—such as automated manufacturing, vertical integration, and data‑driven procurement. These capabilities reduce volatility, improve margins, and enhance scalability, making supply‑chain sophistication a differentiator in competitive M&A processes.
2026 outlook: Continued selectivity and mid‑market strength
The coming year is expected to bring ongoing investment discipline, deeper focus on health‑first innovation, and continued emphasis on operational efficiency. Both private equity and strategic buyers are poised to remain active in the mid‑market, where valuation expectations and growth potential remain well‑aligned.