SEPTEMBER 27, 2024

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!

Glen Clarke

Head of Food & Beverage

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Mondelēz International agrees to buy majority stake in Evirth.

• Mondelēz International, the Chicago-based packaged goods company, agreed to buy a majority stake in Evirth, a Chinese manufacturer of cakes and pastries.

Source: Mergermarket

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Just Ice Tea raises over USD 20m.

• Just Ice Tea, the Bethesda, Maryland-based ready-to-drink iced tea maker, has raised more than USD 20m to date.

Source: Mergermarket

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CK Snacks acquires Axium Foods.

• Grand Rapids, Mich., Cheeze Kurls, LLC dba CK Snacks, a premier manufacturer of salty snack foods sold across North America, has announced its acquisition of Axium Foods, Inc. (“Axium Foods”), a private label snack food company based in Illinois and founded in 1960. 

Source: Mergermarket

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Lifeway Foods investor Danone submits non-binding USD 25/share offer.

• Lifeway Foods investor Danone SA has written to CEO Julie Smolyansky with a non-binding proposal to acquire all of the outstanding shares of common stock it does not already own for a purchase price of USD 25.00 per share in cash. 

Source: Mergermarket

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Sodexo mulling acquisition of Aramark – report.

• The French food catering firm Sodexo is considering a potential acquisition of the Philadelphia-based catering company Aramark, a newswire reported.

Source: Mergermarket

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Vertical farm Vision Greens raises $18MM to expand operations.

• Vision Greens, a Welland, Ontario-based vertical farm using patented technology and proprietary processes to bring sustainable, better tasting greens to Canadian consumers, announces today the value of its second capital raise at $18M.

Source: Produce Bluebook

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Yupindo stake sale enters second round – sources.

• The sale process of Mahanusa Capital’s stake in PT Yupi Indo Jelly Gum (Yupindo) has entered round two, with a mix of strategics and private equity firms shortlisted, three sources familiar with the situation said.

Source: Mergermarket

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Pilgrim’s Europe maintains positive trajectory.

• Pilgrim’s Europe reported a 5.5% revenue increase to £4.2 billion for fiscal year 2023, with profits after taxation rising to £106 million from £27 million in 2022, driven by easing inflation and shifting consumer preferences.
• The company invested £60 million to upgrade its facilities, aiming to enhance operational efficiency and customer satisfaction, including a £12 million investment in its Meals facilities.
• The branded European portfolio experienced over 10% net sales growth in 2023, with notable increases in sales for brands like Richmond and Rollover, reflecting strong consumer sentiment and strategic business measures.

Source: Meat + Poultry

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Certified Angus Beef to open innovation center.

• Certified Angus Beef is converting a 3,500-square-foot warehouse into an Innovation Center in Wooster, Ohio, to meet strong demand for educational and marketing services, enabling more simultaneous group activities compared to its existing Culinary Center.
• The new center will enhance flexibility and creativity, allowing CAB to host a broader range of events, including culinary development and meat science, benefiting over 1,000 annual visitors from various sectors such as foodservice and retail.
• CAB's acquisition of the Chippewa Valley Angus farm aims to deepen connections with beef production while enhancing visitor experiences, emphasizing the organization's commitment to education and engagement in the Angus beef industry.

Source: Meat + Poultry

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Plenty opens Virginia indoor strawberry farm.

• Plenty Unlimited Inc. has opened the world's first large-scale indoor strawberry farm in Richmond, Virginia, utilizing 30-foot vertical towers to grow over 4 million pounds of strawberries annually, with a focus on Driscoll’s proprietary varieties.
• The farm employs advanced technology to control environmental factors like temperature and humidity, using AI to optimize growth conditions and enhance the flavor and quality of the strawberries, while reducing land and water usage significantly compared to traditional farming methods.
• This initiative is expected to create over 60 jobs and is part of a larger $300 million investment to establish the largest indoor vertical farm campus in the world, aiming to boost local agriculture and provide fresh produce within a one-day drive of over 100 million consumers.

Source: Produce Bluebook

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A perfect meat snack pairing.

• Vermont Smoke & Cure has launched a limited-edition snack, Maple Old Fashioned Smoked Meat Sticks, in collaboration with WhistlePig Whiskey, using barrel-aged maple syrup and wood chips from WhistlePig's whiskey barrels for smoking.
• This innovative product, designed to appeal to both snack enthusiasts and cocktail lovers, is available in eight 1-ounce pouches at select retailers and online, coinciding with National Snack Stick Day.
• The partnership emphasizes Vermont's artisanal craftsmanship, combining flavors and traditional pairings to create a unique snacking experience that bridges the gap between innovative foods and classic whiskey pairings.

Source: Meat + Poultry

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CPMA to hold meeting to develop international standard for compostable PLUs.

• The Canadian Produce Marketing Association (CPMA) is organizing a groundbreaking global meeting on October 1st in Niagara Falls, Canada, to establish an international standard for compostable Price Look Up (PLU) stickers, addressing the environmental impact of current non-compostable options.
• The initiative aims to create a certified compostable PLU system that minimizes contamination during organics recycling, which is crucial for enhancing the quality and value of compost produced from organic waste.
• Representatives from the fresh produce and composting industries will collaborate to develop this framework, with findings expected to be published in October 2024, highlighting the need for a unified global approach to compostable standards.

Source: Produce Bluebook

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Hershey shuffles jobs to better align with growth.

• Concerns are high for the agricultural sector, with net farm income expected to decline by nearly 7% to $10.2 billion in 2024, despite record-high corn and soybean yields.
• The livestock sector is experiencing increased farm income driven by prices, but there are challenges, including supply contraction and the impact of California’s Proposition 12, which has led to significant price increases for pork products.
• Despite the challenges, speakers noted optimism in areas such as thriving pork exports, which totaled $8.2 billion in 2023, and the emergence of a passionate next generation of producers entering the industry.

Source: Food Dive

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IFT First report: Doing more with less.

• The theme of the IFT First conference emphasized the need for food formulation with fewer ingredients, aiming to reduce resource use and enhance sustainability through innovations like molecular farming and precision fermentation.
• Advances in AI are transforming food ingredient development, significantly shortening the time required to create new ingredients—from decades to approximately two years—while ensuring they are cost-effective and nutritious.
• Companies showcased new plant-based ingredients, such as a high-performance egg replacer made from upcycled brewers' yeast, aimed at improving texture and eliminating allergens, highlighting a shift towards more sustainable and functional food options.

Source: Meat + Poultry

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HPAI cases pop up in California.

• The USDA confirmed the first highly pathogenic avian influenza (HPAI) cases in a commercial turkey flock in California since July. The outbreak, affecting 62,800 birds, was reported in Merced County on September 18.
• The virus has also been found in six dairy herds in the same county, contributing to a total of 16 livestock herds affected in California since the outbreak began.
• Officials from the California Department of Public Health emphasized that HPAI poses a minimal public health threat, while reaffirming their commitment to worker and public health amid ongoing economic challenges for dairy farmers.

Source: Meat + Poultry

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DSM Firmenich launches new ingredient in alignment with immunity goals.

• DSM Firmenich has introduced Dry Vitamin A Palmitate NI, a stable and clean-label ingredient designed for flour fortification to address vitamin A deficiency.
• The new dry vitamin A is particularly effective for wheat flour, which is a major source of calories globally.
• The company aims to provide immunity-boosting ingredients to 500 million people by 2030, focusing on fortifying everyday foods like bread and beverages.

Source: Food Dive

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Jones Soda takes on Poppi with new prebiotic drinks.

• Jones Soda is launching Pop Jones, an all-natural prebiotic drink with five flavors and only 30 calories per 12-ounce can, as part of its entry into the functional beverage market.
• Sweetened with real fruit juice and natural stevia, Pop Jones contains significantly less sugar than traditional sodas and offers added fiber and immune support.
• The functional beverage sector is projected to grow to $62 billion by 2027, prompting established brands like Jones to create healthier soda alternatives in response to rising consumer demand for better-for-you products.

Source: Food Dive

JUST FOR FUN

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• Leftovers: M&M’s spreads into PB&J | KitKat gives vanilla fans a break – Food Dive

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