Kevin Slaughter Shares Trends in Food & Beverage M&A in Crain’s Chicago Business
In this Crain’s Chicago Business article, Kevin Slaughter discusses trends and how the food and beverage sector has demonstrated remarkable resilience in mergers and acquisitions (M&A) throughout 2025. Although investor activity has become more discerning compared to previous boom years, robust deal flow continues—especially among private equity firms targeting brands at the intersection of health, consumer trends, and operational efficiency. Strengthened by macroeconomic shifts and evolving eating habits—most notably influenced by GLP‑1 drug use—dealmakers are focusing on companies that combine premium positioning with modern supply‑chain sophistication and product innovation.
Key Trends in Food & Beverage M&A:
- Strong overall deal value (~$450B) across manufacturing and distribution, with food and beverage securing a substantial but selective share
- Private equity laser‑focused on platform builds, bolt-on acquisitions, and niche brands offering operational upside
- Health‑oriented investment spotlight: Gryphon Investors takes a majority stake in Spindrift, tapping into the premium, “better-for-you” beverage trend
- Major strategic consolidation: Mars’s proposed $35.9 billion acquisition of Kellanova (including Pringles and Cheez-It) signals a push for category leadership
- Wellness-driven brand focus: PepsiCo’s $1.95 billion acquisition of prebiotic soda Poppi highlights clean ingredients, transparency, and plant‑based positioning
- GLP‑1 impact on consumer behavior: Medications like Ozempic and Mounjaro are decreasing appetite for indulgences, prompting reformulation toward nutrient-dense, functional foods
- Importance of supply‑chain excellence: Investors increasingly value companies with resilient logistics, automated production, vertical integration, and data‑driven procurement
- Outlook for 2026: Expect continued selectivity, health-first innovation, ongoing supply‑chain efficiency efforts, and strong mid‑market M&A activity led by both private equity and strategic buyers