Key FMCG players have been offloading and acquiring brands amid the rapid shift in consumer spending habits and preferences.
Some of the biggest food and drink names in the industry have teamed up to form new mergers and expand their brand portfolio.
Grocery Gazette takes a look at some of the biggest FMCG giant brands that have formed this year.
New Princes and Kraft Heinz’s Italian baby food division
New Princes recently acquired Kraft Heinz’s Italian baby food and nutrition arm as part of an approximately £104m deal to expand its footprint as a European food brand.
Acquistions allow food companies to leverage international networks and acquire a wider customer base with a more diverse range of brands under their umbrella. This move is part of the Italian food giant’s strategy to grow its FMCG presence across different sectors.
Speaking at the time of the acquisition, New Princes’ chairman Angela Mastrolia said: “Bringing home brands like Plasmon, Nipiol, BiAglut, Aproten, and Dieterba fulfils a vision we have pursued for years, to create an Italian multinational company that gives new life to beloved national brands with deep roots in our country’s identity.”
Ferrero and WK Kellogg
Italian confectionary company Ferrero bought WK Kellogg, the parent company of household staple cereals including Kellogg’s Corn Flakes, Rice Krispies, and Froot Loops, for £2.3bn.
Kellogg’s previously split its companies into two separate divisions, the cereal brand, WK Kellogg, and the snack brand, Kellanova. The major food giant is offloading divisions to focus on its core brands. This comes as the FMCG industry is forced to adjust to the consumer shifts towards healthier food.
Additionally, the new tightening of health regulations has led to a more challenging macroeconomic backdrop for cereal and snack brands.
The confectionary business has been acquiring big-name brands to solidify its place in the global food and drink industry.
Compleat Food Group, Freshpak and The Real Yorkshire Pudding Company
Compleat Food Group aims to climb to the top of the ladder of the chilled food companies in the UK by strategically expanding its brands.
Earlier this month, the FMCG giant acquired Freshpak, which makes sandwich fillings and ready-to-go meals, for an undisclosed amount.
In a statement released by the brand Nick Field, chief executive of the Compleat Food Group said: “Its market-leading position in added-value egg products, deli fillers, and chilled food-to-go is a perfect complement to our existing portfolio, allowing us to extend our capability and category leadership role to deliver further value and category growth with our existing partners, whilst also opening up new opportunities in both retail and foodservice.”
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The Compleat Food Group also acquired The Real Yorkshire Pudding Company in March as part of its mission to strengthen its presence with high-performing companies. The Real Yorkshire Pudding company has been turning in profits, with double-digit growth in the category and a £33m turnover.
Molson Coors and Fever-Tree
Molson Coors acquired an 8.5% stake in Fever-Tree Drinks as part of its plans to grow within the US. The parent company of Carling is working towards strengthening its presence in the global drinks industry and aims to boost its sales, production, and distribution of Fever-Tree across the US.
Fever’s Tree’s chief executive Tim Warrillow said in a statement about the partnership: “With a national network providing significant scale and muscle, alongside its proven track record, supply chain expertise, and clearly stated strategic desire to drive the future of their business beyond beer, Molson Coors is the ideal long-term partner to take the Fever-Tree brand to the next level across the US.”
Moving forward, the new stake in the company, which operates a number of alcohol brands, will provide a wide network and customers for the parent company.
PepsiCo and Poppi
Earlier this year, PepsiCo acquired Poppi in a £1.5bn deal as part of its plans to remake its current offerings, with innovation and various brands at the top of the its mission.
Poppi gained traction with the rising trend of leaning towards healthier drinks and products globally.
The FMCG giant is building up its portfolio, already operating a robust collection of brands, including Lipton and Pepsi Max.
Ram Krishnan, chief executive of PepsiCo, CEO commented at the time of the acquisition: “Poppi represents a compelling strategic fit within our short- and long-term vision for the future of beverages. Its rapid growth, strong consumer engagement, and differentiated functional positioning make it a dynamic addition to our portfolio. We are excited to scale poppi’s momentum and unlock new growth through our capabilities – we’re just getting started.”
Müller and Biotiful
Müller UK & Ireland scooped up kefir brand Biotiful for an undisclosed amount as it builds its portfolio to recover from its net losses, which it reported in 2022 and 2023.
The dairy brand aims to strengthen its overall business by getting into the functional healthy yoghurts and drinks market. It also allows the retailer to leverage an international business network and a wider supply chain.
At the time of the deal, Dr Manfred Weiß, chief commercial officer of branded dairy at Muller commented: “Kefir is the fastest growing segment in the yoghurt category in the UK. Biotiful Gut Health is now among the top 10 yoghurt manufacturers in the UK. This is partly due to the high quality and very tasty products, but also to the excellent marketing and broad distribution achieved by the colleagues at Biotiful Gut Health.”
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