- U.S. packaged food companies are set for a flurry of deals in a push to revamp their brand portfolios as their pandemic-era fortunes fade and benefits of price hikes start to taper off.
"There's been a nice uptick in M&A in the food industry in the first half of the year...," said Michael Milani, executive managing director and principal at advisory firm Baker Tilly. The rise in deals comes as volume of sales at companies such as Kraft Heinz and Campbell fell for at least the past six quarters due to weak demand, while benefits from price hikes also fade.
Packaged food companies "are now faced with some difficult comparisons on organic and are seeking some strategic, category-specific M&A targets that will propel them through the next few years," Henry said.Cheerios cereal maker General Mills has pinned M&A as a key goal in the coming years, with executives saying it is a "good environment for M&A right now."