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Please see below for a listing of what the North Point Food & Beverage Team has been tracking this week. We hope that you find the content insightful and a nice way to summarize the most noteworthy Food & Beverage events of the week.
Have a nice weekend!
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Glen Clarke
Head of Food & Beverage
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Bonduelle Group to sell packaged salad business in France, Germany; mulls North American salad business sale. | - French fresh, canned and frozen foods producer Bonduelle announced that it has entered into exclusive negotiations with the fresh vegetable maker Les Crudettes, a subsidiary of French Dairy and diet products producer LSDH Group, for the acquisition of its packaged salad business in France, according to a press release.
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Bikaji Foods confirms deal to buy control of Indian peer Ariba Foods. | - Bikaji Foods International has completed a deal to buy a majority stake in Indian peer Ariba Foods. The deal, which sees Bikaji Foods snap up a 55% equity stake in Ujjain-based Ariba Foods, was completed for a fee of Rs604.9m ($7.2m).
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Campbell Soup sells Pop Secret for undisclosed amount. | - Campbell Soup sold its Pop Secret popcorn brand to an independent food company for an undisclosed amount as the CPG giant looks to focus its snacking portfolio.
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Mount Franklin Foods acquires Stuffed Puffs. | - Mount Franklin Foods, a Texas-based manufacturer and distributor of confectionery products, has acquired the assets of Stuffed Puffs, LLC, a Bethlehem, PA-based producer of marshmallow products, for an undisclosed sum.
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Smart for Life negotiating to buy Purely Optimal Nutrition, three other targets. | - Smart for Life, Inc., a Miami-based health and wellness business, disclosed that it is currently negotiating four acquisitions, including a deal to buy Vancouver-based Purely Optimal Nutrition.
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Meritage Group considering sale of Columbia Distributing – report. | - Meritage Group, a financial investment advisory firm based in San Francisco, is considering the sale of Columbia Distributing, a Portland-based alcoholic beverages distributor, according to a newswire report, citing sources close to the situation.
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GrubMarket takes over FreshGoGo – report. | - GrubMarket, a food supply chain and delivery group, has taken over New York-based Asian foods and dishes sale platform FreshGoGo, Techcrunch reported, based on unidentified sources.
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Agriculture & Natural Solutions Acquisition Corp to merge with Australian Food & Agriculture Company in USD 510 million deal. | - Agriculture & Natural Solutions Acquisition Corp (ANSC), the U.S.-based SPAC managed by Riverstone Holdings, has agreed to a business combination with Australian Food & Agriculture Company (AFA), at the valuation of AUD 780 million (USD 510 million).
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FOOD AND BEVERAGE MUSINGS | |
Frozen burger format heats up. |
- After a decline in 2023, frozen food purchases are rebounding. Sales for frozen foods reached $84.2 billion for the year, with notable increases in frozen meat and poultry, which saw a 0.3% rise in sales in May 2024 compared to the previous year.
- Frozen burger manufacturers are diversifying their offerings such as a thinner patty for a crispier texture and a new chicken burger variety.
- With many consumers planning summer cookouts and gatherings, food manufacturers have a chance to cater to these events. The rise in demand for quick and easy meal solutions, including frozen burgers, aligns with consumer preferences for convenient, flavorful options.
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USMEF, USDA address Colombia’s HPAI concerns. |
- The U.S. Meat Export Federation (USMEF) and the U.S. Department of Agriculture (USDA) held a seminar with Colombian officials to address trade challenges and enhance mutual understanding, particularly regarding import restrictions on U.S. beef due to highly pathogenic avian influenza (HPAI) detected in dairy cows.
- Since April, Colombia has imposed restrictions on U.S. beef imports from states where HPAI was found in dairy cattle, although USDA studies confirm that the beef remains safe for consumption.
- The seminar revealed differences in meat industry regulations between the U.S. and Colombia, such as the mandatory HACCP system in the U.S.
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Smithfield separates European operations. |
- Smithfield Foods announced plans to separate its European operations, which will now operate as Morliny Foods, a subsidiary of WH Group Ltd. This move aims to enhance growth opportunities by allowing both North American and European operations to focus on distinct market strategies.
- Morliny Foods will address the unique dynamics of the fragmented European market, which includes fresh pork, poultry, and packaged meats across various countries. This restructuring is intended to increase agility and growth prospects for the European business.
- Smithfield intends to continue expanding its North American market by focusing on its packaged meats segment, optimizing operations, and leveraging its strong brand and financial stability.
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Target CEO sees plenty of potential in food, beverage business. |
- Target Corp. is expanding its food and beverage business, which now generates $24 billion in sales and represents 23% of total revenue. Recent initiatives, including lowering prices on thousands of popular items, have driven traffic and contributed to overall sales growth.
- The company’s seasonal merchandising, such as introducing new flavors and exclusive products, has fueled growth.
- Target is focusing on affordability and convenience, with plans to introduce over 150 new own-brand and 500 new national-brand products this fall. Digital sales and services like Drive Up curbside pickup and same-day delivery are also contributing to growth.
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‘Shrinkflation’ is far less common than consumers realize. |
- “Shrinkflation” — the practice of reducing product sizes while maintaining prices — is less prevalent than many consumers believe. Despite noticeable examples, industry data shows that most companies have not adopted this tactic.
- Research indicates that while shrinkflation might affect some products, it is not a widespread trend across all categories. Many companies prefer to absorb cost increases or adjust prices instead of reducing product sizes.
- Consumer perception of shrinkflation may be influenced by high-profile cases or frequent changes in packaging.
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Circana research shows 86% of eating occasions sourced from home. |
- Circana’s report highlights a shift toward home dining due to higher dining-out costs and economic pressures.
- Meal patterns are evolving, with breakfast starting earlier and increased snacking throughout the day. Traditional mealtimes are blending as consumers prioritize convenience and quick meals.
- Beverage consumption has surged, particularly in coffee, carbonated soft drinks, and functional beverages. Innovations cater to needs for hydration, energy, and nutrition, reflecting a trend towards beverages that offer both enjoyment and functionality.
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FreshRealm grows footprint in Georgia. |
- FreshRealm is expanding its operations by renovating a 96,000-square-foot facility in Montezuma, Georgia, to enhance its fresh meal solutions capabilities including dedicated rooms for producing ready-to-heat and ready-to-cook meals, as well as meal kits.
- This expansion follows FreshRealm's recent acquisitions of Marley Spoon and Blue Apron’s operational assets, reflecting the company's strategic growth in the fresh food sector.
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Private brands continue to grow around the U.S. |
- Private brands are expected to capture 24% of the U.S. market share in key categories by 2030, up from 17% in 2023, with projections ranging from $406 billion to $585 billion in sales depending on their market strategy.
- Consumer preference for private labels is growing, with 53% considering them crucial for store choice, and nearly a third of consumers rating private labels as superior in quality to national brands in food and beverages.
- Despite the U.S.’s lower private label penetration compared to Europe, there is significant growth potential, particularly in food categories like meat, prepared foods, and snacks, indicating a major opportunity for grocery retailers.
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- 83% of corn is in the dough stage, 49% is dented, and 36% is mature. Conditions vary, with 22% rated very poor, 22% poor, 28% fair, 25% good, and 3% excellent.
- Soybeans are setting pods at an average of 88% across key states. The crop is performing well in most areas, with a notable percentage of plants reaching pod-setting stages.
- 95% of rice is headed and 18% is harvested across key states. Rice conditions show varied quality, with 15% rated very poor, 15% poor, 64% fair, and 6% good.
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FSIS updates guidelines for claims on meat products. |
- Define and clarify standards for claims about animal welfare, production methods, and nutritional benefits.
- Enhance transparency to prevent misleading information and ensure consumers make informed decisions.
- Require producers to provide verifiable evidence supporting their claims, aligning with food safety and consumer protection objectives.
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Coca-Cola chided by green group for lack of progress on reusable packaging. |
- Coca-Cola’s reusable packaging remained at 14% in 2023, drawing criticism for not progressing towards its 25% goal by 2030.
- The company’s efforts to increase reusable packaging are hindered by faster business growth compared to its sustainability initiatives.
- Achieving the 25% goal could prevent the production of over 100 billion single-use plastic bottles and cups, highlighting significant environmental benefits.
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Nestlé tops 2024 Brand Finance ranking. |
- Nestlé remains the top-ranked food brand globally despite a 7% decrease in brand value to $20.8 billion, attributed to its strong brand equity and resilience.
- PepsiCo’s Lay’s brand is now the second most valuable food brand, with a 9% increase in value to $12 billion due to strong financial performance and innovative products.
- The overall food and beverage sector experienced a 4% decline in brand value, totaling approximately $268 billion, due to consumers favoring smaller, private label brands and evolving preferences for convenience and health-focused products.
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Four Key Themes at the Inaugural Newtopia Now Event. |
- Mushroom-based products were prominently featured, with innovations in snacks, beverages, and meat alternatives, including companies like Pan’s Mushroom Jerky and Eat Meati.
- Healthier snack options are on the rise, as seen with new high-protein and low-carb products from brands such as The Daily Crave and Carbe Diem.
- Non-alcoholic beverages, including beers, wines, and spirits, were showcased, indicating a growing trend that may lead to more of these options being available in restaurants.
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New CFO named at Tyson Foods. |
- Tyson Foods has appointed Curt Calaway as CFO, succeeding John R. Tyson, who is on leave following a DWI charge.
- Calaway, previously CFO of Tyson’s prepared foods segment, has been with the company for 18 years and held various leadership roles.
- The appointment aims to drive operational excellence and shareholder value, with Calaway bringing extensive industry experience and financial expertise to the role.
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- 23 best crowd-pleaser recipes to make for Labor Day — Eating Well
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