Insights

Food & Beverage deal volume in Q1 exceeded all previous quarters since we began tracking this data. Food price deceleration increases buyer focus on product volume growth.

Consistency solidified the Food & Beverage segment as a standout within the broader Consumer industry in 2023, which largely struggled from a transaction volume standpoint.

Despite a slowdown in Food & Beverage M&A, moderating inflation and normalizing of supply chains encourage optimism for sector participants.

U.S. Food & Beverage M&A are in a state of uncertainty following a slowdown in dealmaking in 2022 after an active 2021.

Transaction volumes in 2022 surpassed pre-pandemic levels as market participants continued putting their robust amounts of capital to work through M&A.

Cost inflation continued to pressure small and big businesses alike, but operators that were able to maintain margins explored sale options due to buoyed earnings.

The Food Connector interviewed Tamarack Partners about the current M&A environment and key considerations when evaluating an ownership transition.

Q2 saw steady transaction volume in the Food & Beverage sector, while the impact of record-breaking food inflation on the M&A environment remains to be seen.

Deal activity remained steady in Q1 following a historic 2021. Inflation and higher input costs pressured margins, encouraging sector players to pursue M&A.

The first half of 2021 saw record venture capital investment in digital health and highly active M&A and IPO markets, signalling that consolidation isn’t slowing down.

Demand for free-range, pasture-raised and organic eggs is driving M&A in the sector, along with opportunities for joint marketing partnerships.

High fragmentation and growth potential make the HME market ripe for consolidation, with increased interest from PE-backed platform companies.

Changing consumer behaviors, reimagined workplaces and new technologies are transforming the convenience foodservice market.