Food & Beverage M&A Update — Q2 2022
In May, U.S. food costs rose 10.1% YOY, the highest since 1981. (Photo: Getty)
Tamarack Partners released its Q2 2022 Food & Beverage M&A Update. M&A appetite remained strong in Q2, although inflation and supply chain disruptions continued to impact the sector. Several key industry trends are included below.
1. Rise of private label – High gas and food prices coupled with changing consumer perceptions have enabled “store brands” to thrive. Private label has transformed from the cheap no-name alternative to branded and premium items: Amazon unveiled its Aplenty brand, on the heels of Kroger adding 239 products to its portfolio of house brands in Q1.
2. Grab-and-go-home – Grab-and-go visits have declined by 7.2% since the start of the pandemic while take-home meals, particularly in family-size portions, are up by 3.4%. Retailers are elevating their foodservice offering to capture more of this occasion: BellStores partnered with a local specialty market to elevate its sandwich offering, Casey’s unveiled its first store without fuel, and the nation’s first 100% plant-based c-store opened in California.
3. Tech-to-table – Despite current macroeconomic conditions, sustainability continues to drive investment into foodtech. Upside Foods announced the close of its $400 million Series C funding round, the largest round of investment to date in the cultivated meat industry, and Synthesis Capital launched the world’s largest dedicated foodtech VC fund with $300 million in assets under management.
Also included in this report:
Analysis of food price inflation and M&A impact
M&A commentary by sector and acquirer group
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.
