Food & Beverage M&A Update — Q1 2022
Walmart invests in vertical farming startup Plenty. (Photo: Plenty)
Tamarack Partners released its Q1 2022 Food & Beverage M&A Update. The COVID-19 pandemic caused lasting supply chain disruptions around the world, particularly for the Food & Beverage industry. Changes in consumer buying patterns have forced operators to constantly adapt to remain competitive in an ever-changing market. Several key industry trends are included below.
1. Delivery — Food delivery keeps getting hotter, and not just for restaurants. C-stores, in particular, are angling to compete in last-mile distribution: 7-Eleven partnered with GrubHub, while Circle K Venture Fund invested in on-demand grocery startups Food Rocket and Farmstead.
2. Labor-Saving Technology — A shortage of labor has led to increased investment in labor-saving technologies like frictionless checkout and robotic automation. Walmart’s investment in vertical farming startup Plenty signalled mass market appeal for farming technologies that reduce labor needs by using robots to handle harvesting, planting, and logistics.
3. Plant Innovation — Plant-based alternatives are all the buzz due to shifting consumer preferences and intense investor interest. While challenges remain for plant-based food production, foodservice giants aren’t waiting to get skin in the game: Nepra, Conagra and Hormel launched their own plant-based product lines in Q4 2021 and Nestlé backed alt-meat producer Sundial.
Also included in this report:
M&A commentary by sector and acquirer group
Insight from industry expert Barry Friends
Spotlight on notable deals
Listed transactions
Tamarack Partners provides M&A advisory services to owners of lower middle market companies. For more information on this report or to speak with one of our transactional advisors about your business, Contact Us.
