What We’re Seeing

Market Update

The food and beverage market saw several notable M&A transactions in November. The Kraft Heinz Company agreed to acquire Primal Nutrition, a producer of better-for-you condiments, sauces, and dressings for $200 million; Parmalat agreed to acquire Kraft Heinz’s Canadian natural cheese business for $1.2 billion; and Flowers Foods agreed to acquire Canyon Bakehouse, a manufacturer of gluten-free bakery products for $205 million.

What We’ve Been Doing

Closed Harris Williams Transactions


What We’ve Been Reading

The U.S. Grocery Ecommerce Market to Hit Nearly $27B by 2025

The online grocery market in the U.S. is estimated to reach $26.9B by 2025 led by the increasing adoption of advanced technology, access to high-speed internet, and the availability of more products online. The millennial demographic is driving much of the growth given their tendency to prefer convenient shopping options. The number of the U.S. households buying groceries online has increased by 14% since 2014. Other factors continuing to drive ecommerce grocery growth include innovative packaging and promotions for organic and natural foods.

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Big Food Companies Launch ‘Stealth Small Brands’

Large CPG companies have seen a shift in consumers’ buying preferences from traditional, large brands to small, emerging brands. In order to align their offerings with consumer preferences, large CPG companies are unveiling “stealth brands”. A “stealth brand” is a brand created by a large CPG company which is intentionally designed to look like it originates from a start-up or emerging brands company and does not identify the parent company on the product packaging. The emergence of “stealth brands” signals big-name companies are going to heightened lengths to compete with startups that are grabbing consumers’ attention.      

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Salty Snacks Melt Away Growth In The Frozen Sector

As consumers look for better-for-you options to snack on, annual growth in the frozen snack space is anticipated to slow to 0.6% to 0.9% from 2019 to 2022. According to research firm Mintel, salty meat, popcorn, and cheese snacks are becoming increasingly popular. Additionally, consumers are increasing their preference for portable, on-the-go snacks. These saltier snacks, which tend to be more portable, are starting to win over their frozen counterparts.   

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Vital Signs




Public Equity Market Overview




M&A Market Overview

Highlighted Food and Beverage M&A Transactions1

Kraft Heinz to Acquire Primal Nutrition


  • Kraft Heinz agreed to acquire Primal Nutrition for $200 million as part of its newly-formed ‘Springboard’ platform.
  • Based in Oxnard, CA, Primal Nutrition manufactures better-for-you condiments, sauces, and dressings under the Primal Kitchen brand.
  • The acquisition highlights Kraft Heinz’s focus on growing through emerging brands in the better-for-you space.

Flowers Foods to Acquire Canyon Bakehouse


  • Flowers Foods agreed to acquire Canyon Bakehouse for $205 million.
  • Based in Johnstown, CO, Canyon Bakehouse produces gluten-free breads, buns, bagels, and muffins.
  • The acquisition expands Flowers Foods’ gluten-free offerings.


Parmalat Spa to Acquire Kraft Heinz’s Canada’s Cheese Business


  • Parmalat has agreed to acquire Kraft Heinz’s Canadian natural cheese business for $1.2 billion.
  • Kraft Heinz’s Canadian natural cheese business consists of a production facility and the Cracker Barrel, P’tit Quebec, and aMooza! brands.
  • The acquisition will enable Parmalat to expand its business in Canada.


Food and Beverage M&A Trends1


Latest Deals and Announced Private Equity Activity1


* M&A transactions include European and cross-border deals since 2015.

Debt Market Overview



M&A Overview*

Median LTM Trading Multiples & Quarterly Food & Beverage M&A1


Recent Food and Beverage M&A1



* M&A transactions include European and cross-border deals since 2015.

Food and Beverage Earnings Release Calendar


Public Comparables1






1. Factset

2. U.S. Bureau of Labor Statistics

3. Unweighted Average

4. US Census Bureau

5. Thomson Financial

6. S&P

7. Reuters


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