FOOD & DRINK
Food & Drink: Sustainability driving M&A trends Leading south west accountancy firm, Bishop Fleming has a dedicated Food and Drink team with a wealth of experience and expertise. The firm provides insight to over 300 ambitious Food and Drink businesses, with a combine client base turnover of £700 million. Senior manager, Phil Redgate, has significant experience with advising on acquisitions and business sales in the food and drink sector. With a profile of clients across the West Midlands and south west - including Devon and Cornwall; Phil is an expert in corporate finance and works closely with his clients to gain a deep understanding of their visions and goals. Phil explains how sustainability is driving merger and acquisition trends in the food and drink industry…
18
TALKING TOURISM
MERGER AND ACQUISITION TRENDS Most investment committees have ESG (Environmental, Social & Governance Factors) high on the agenda when looking to make strategic acquisitions. This is especially so in the food & drink industry where conscientious consumers are driving demand for plant-based alternatives. Research commissioned by meatalternative manufacturer Quorn suggests that 41% of UK families now follow a flexitarian or meat-free diet, driving demand for plant-based products as they cut down on meat consumption over environmental concerns. McDonald’s recent McPlant burger launch is the latest example of many big brands re-positioning their ranges to appeal to this ever-growing market. Vast sums are invested in new product development (NPD) each year as manufacturers look to develop and broaden their product ranges. Inevitably consumer trends drive profits which in turn attract interest from investors seeking long-term value propositions and corporates making strategic acquisitions to gain intellectual property and protect market share. SECTOR DEALS 2021 saw the IPO of Swedish oatmilk producer Oatly at a $10 billion valuation. Recent sector deals include Unilever’s acquisition of The Vegetarian Butcher, a Dutch supplier of vegan patties and nuggets to Burger King. In the US, the continued trend for plant-products was reflected in KPS Capital Partner’s acquisition of Tate & Lyle’s North & Latin American business – the stated growth opportunities coming from the long-term trend towards a plant-based diet by consumers worldwide.
SPRING 2022
