WINTER/SPRING 2017
FOOD & BEVERAGE NEWSLETTER
WELCOME TO OUR NEWSLETTER!
Welcome to the Winter/Spring 2017 edition of our Food & Beverage newsletter. What’s more important – business profitability or cash flow? Our first article, “Cash Flow Management” examines this issue and discusses important reasons why net income and cash flow sometimes do not work in tandem. The article provides three easy tips to improve cash flow management. Food processors often require funding for workforce development, business expansion, purchasing or modifying technology or developing research and development for new products or processes. Our second article “Government Grants Spur the Growth of Canadian Food Processors” outlines how you can take advantage of government grants for new investments. In the Road to Success section of our newsletter, we share the story of a leading North American specialty food manufacturer, Summer Fresh Salads Inc. Discover how the President, Susan Niczowski, has grown her company over the last 25 years from a small home business to a market leader with over $100 million in annual revenue. Summer Fresh has been named as one of Canada’s 50 Best Managed Companies in each of the past seven years.
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FOOD AND BEVERAGE NEWSLETTER WINTER/SPRING 2017
The Fast Facts, Trends and Recent News section of our newsletter sets out selected food and beverage market transactions in Canada and the United States. The charts illustrate the strong demand for food and beverage businesses by both private equity and strategic buyers. Factors that may affect 2017 M&A activity include (i) stock markets at all-time highs, (ii) public companies with strong balance sheets to support acquisitions (ii) weakening Canadian dollar (stronger U.S. dollar) alluring U.S. buyers to acquire Canadian companies, (iii) potential new policies affecting economic growth from president-elect Donald Trump’s administration, (iv) a relatively low U.S. interest rate environment with three rate hikes forecasted for 2017, and (v) a modest Canadian inflation rate of 1.2% (November 2016). The Canadian selected transactions highlight private equity firms acquiring numerous Canadian food and beverage companies during 2016. For example: in April 2016, Thomas H. Lee Partners acquired Give and Go Prepared Foods Corp.; in July 2016, Yellow Point Equity Partners acquired Foley’s Candies; in October 2016, the Ontario Teachers’ Pension Plan acquired Constellation Brands Canada; and in November 2016, Tricor Pacific Founders Capital Inc. acquired Fresh Selections, Inc.
The U.S. selected transactions include Cott Corporation’s acquisition of S&D Coffee, Inc. in August 2016. The purchase price was approximately USD $355 million, on a debt and cash free basis, and represented a 6x post synergy adjusted EBITDA multiple. In October 2016, Onex Corp. acquired Supervalue Inc.’s Save-A-Lot grocery business, including 1,370 stores, for approximately $1.37 billion in cash. We appreciate the opportunity to share these articles, best practices, market activity and trends within the food and beverage sector. Thank you for your readership and we hope you enjoy the newsletter!
Ellis Orlan Co-Chair Food & Beverage Practice eorlan@fullerllp.com
Bruce Roher Co-Chair Food & Beverage Practice broher@fullerllp.com
CASH FLOW MANAGEMENT MATTERS Business owners usually evaluate financial performance based on profitability. Continuous efforts are made to improve the bottom line by generating new sales, in addition to applying cost cutting measures. The common assumption is that to obtain financing from bankers and other key stakeholders, strong profitability is the only measure that counts. Unfortunately, while profitability is important, cash is the real king of business. The primary reason that most businesses fail is a lack of proper cash management. Business owners tend to spend their time building their business instead of placing controls on managing daily cash flow. Frustration occurs as profitability increases and yet there is no cash in the bank. If business owners obtain sufficient working capital financing when starting a business or as the business grows, many of their daily cash management issues can be solved. Let’s look at some important reasons why net income and cash flow sometimes do not work in tandem.
THE DREADED CASH LAG The cash lag is the time between making payment for the initial receipt of goods and receiving payment from customers for goods sold. The time can be significant, especially for food processors, as materials purchased need to be put through the manufacturing process, packaged, and then sold and shipped to customers. The sale is only half of the battle as the business needs to collect its accounts receivable. This can take time as customers want to stretch out their cash flow as long as possible because they face the same demands. It is not uncommon for a manufacturer to experience a cash lag cycle of several months. So, profitability may look great if the business has several new sales at good margins, and all the materials and processing work has been paid for, but no cash inflows are coming in for several months.
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FOOD AND BEVERAGE NEWSLETTER WINTER/SPRING 2017
GROWING PAINS Companies that are in a growth mode tend to be cash strapped because of additional expenditures and working capital needs, specifically to finance accounts receivable and inventory. Most growing companies invest in new talent, marketing, and capital assets and/or machinery and equipment at the beginning of a growth cycle. The cash outflow for these expenditures is made well in advance of receiving the cash inflow benefits. Business owners look for a return on their investment but need to be patient and understand that realization is not immediate. In addition, growing companies need to build inventory and receivables. Inventories are built to meet new customer demands and receivables are greater due to sales volumes. Although these assets are good working capital items, they need to be financed, either from the company’s bank operating line or business owner’s funds. If businesses do not have a good operating line from their bank (i.e. the margining of their receivables is very stringent on the aging, and inventory margining carries a low cap on the inventory levels), cash flow will be very difficult to manage during periods of growth. Here are three easy tips to help your business improve cash flow management:
1. UNDERSTAND YOUR CUSTOMERS As the business grows, the number, sophistication and demands of its customers will also increase. Large food retailers such as Loblaw’s and Sobeys recognize that they have influence and are important to suppliers since they represent a large volume of sales. Thus, these large food retailers stretch out their payments as long as possible and reduce the margins for the supplier with the attitude that if the supplier doesn’t like it, they can go somewhere else. On the other side of the scale are the smaller customers, where the business’ biggest fear is customer bad debts or the non-collection of receivables.
turns is of the upmost importance. Don’t be afraid to tell a customer that certain products are not carried by the company. The “all things to all people” business model has proven to be unsuccessful. Bankers prefer to finance companies that carry fewer SKUs and have high inventory turns. It’s important to note that the traditional thinking that business profitability matters the most is short sighted. Cash is truly king as it provides operational flexibility and the opportunity to enhance product lines and invest in research and development. Business owners will be reassured that they don’t have to manage cash flow on an hourly basis.
2. MANAGE ACCOUNTS RECEIVABLE There is only one thing worse than not making a sale: making a sale and not getting paid. If a customer is late on payment, it’s not enough to assume that they will eventually pay. There needs to be follow-up and active communication about the timing of receipt of payment. Managing accounts receivable should be a daily function. Although there are costs associated with providing customer discounts, it is a business tactic to help improve collections. A two percent discount if paid in 10 days or a one percent discount if paid in 30 days will assist with predictability of cash inflows. In addition, if a customer is past due, offering a discount if they pay immediately is a strategy to ease cash flow issues. This will negatively affect profitability now and possibly in the future as the customer may want to retain the same discount going forward.
It is common for investors and lenders to request cash flow reporting and forecasting, in addition to or even instead of, the standard profit and loss forecasts. In a low interest rate environment, many business owners believe increasing their operating line to manage their long cash flow cycle is easy and inexpensive. However, what they fail to realize is that bankers are becoming stricter on margining receivables and customer concentration. Also, we are seeing that many banks are advancing less and less against inventory levels, so increasing a line may not be too expensive based on interest costs. The level of financing available is reduced due to strict covenants on receivables and inventory. Remember that every business decision should be evaluated from both a profitability and cash flow perspective.
3. INVENTORY MANAGEMENT As mentioned earlier, payment for goods and materials occurs at the beginning of the cash flow cycle. The last thing that businesses want is to disappoint their customers with short shipments due to insufficient inventory levels or not having the product at all. The common thought is that carrying more inventory items (SKUs) and quantities than necessary is better for business. However, carrying too many inventory SKUs can be a detriment to the company. First, it can be harmful to cash flow, difficult to manage, and the risk of obsolescence is high. Second, and usually forgotten, is the power of brand equity. The business wants to be known for something and have the product sell itself. Think about the most popular brand of ketchup or facial tissue – both are commonly known under a specific brand name. These companies are not worried about expanding the amount of product they carry. They are concerned with continuously promoting their core products and only creating and offering new complimentary products after the appropriate market need assessment has been performed. For successful inventory management, managing inventory
BY DAVID FILICE, CPA, CA, CIRP, LIT David is a partner in Fuller Landau’s Restructuring and Insolvency practice, and a member of the firm’s Food & Beverage group. He can be reached at (416) 645-6506 or by email at dfilice@fullerllp.com.
BY JONAS COHEN, MBA, CPA, CA Jonas is a partner in Fuller Landau’s Corporate Finance/M&A practice, and a member of the firm’s Food & Beverage group. He can be reached at (416) 645-6574 or by email at jcohen@fullerllp.com
GOVERNMENT GRANTS SPUR THE GROWTH OF CANADIAN FOOD PROCESSORS Food processing and manufacturing represents one of the largest business sectors of the Canadian economy and that’s not going to change anytime soon. The Conference Board of Canada estimates that Canadian food manufacturers will have reached a record $4.3 billion in pre-tax profits in 2016, with exports to increase at a rate of approximately 2.6% in each of the next 5 years. However, this opportunity to grow and succeed on a global scale needs to be met with increased investment by food processors. In order to satisfy growing demand for products, manufacturers must seek strategic investments to diversify their offerings and achieve greater efficiency. Federal and provincial governments understand the value food manufacturers provide to the economy, and offer support to the sector through targeted grants and loans. These government funding opportunities can be used to offset a portion of costs related to investments and may be leveraged for a wide range of strategic projects.
HOW TO USE GOVERNMENT GRANTS FOR NEW INVESTMENTS Government funding programs and government grants, in particular, are an intelligent way for companies to reduce the cost of upcoming investments. While government loans provide low/no interest rates and can be used to extend cash flow, government grants are a source of non-repayable funding and directly improves the return on investment (ROI) of projects. Grants are (usually) available only to mature, growth-oriented companies who have been incorporated for 3 years or more and maintain 10 or more employees. While each program is slightly different in its eligibility criteria, most programs require businesses to be financially stable and have a record of profitability for funding requests to be approved.
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FOOD AND BEVERAGE NEWSLETTER WINTER/SPRING 2017
Government grants are retroactive in nature, and will only fund pre-approved projects/expenses. This process provides an opportunity to forward-thinking companies, as funding can be coordinated during the strategic planning process. Businesses often apply for grants ahead of their project starting to allow time for approval before any costs are incurred.
GOVERNMENT GRANTS AND FUNDING OPPORTUNITIES FOR FOOD PROCESSORS There are four key areas of investment businesses may receive grants for, including: 1. Workforce Development: Hiring and training employees for a more skilled workforce; 2. Business Expansion: Large-scale business investments including the construction of new facilities or developing new international markets; 3. Capital Adoption: Purchasing or modifying technology for productivity enhancement or energy efficiency; and 4. Research and Development: Innovative technology development or commercialization projects associated with new products or processes.
GOVERNMENT GRANTS FOR WORKFORCE DEVELOPMENT Despite the food processing sector’s growing need for automation, manufacturers still require skilled employees to keep production flowing smoothly. Being able to recruit top talent, then training them to deliver value to the company is essential for all food processors to remain competitive. Government funding programs such as the Canada-Ontario Job Grant (COJG) may reimburse companies for up to 66% of eligible third-party training costs, such as trainer or course fees and associated training materials. For small businesses with less than 50 employees, this contribution can increase up to 83%. This program is an excellent way to offset training costs and improve the skills of your workforce at an accelerated pace.
Likewise, hiring grants may help manufacturers access employees that have recently graduated from a postsecondary institution. Each spring, a new round of funding is released to offer employers up to 50% of a new hire’s wages to a maximum of $20,000. These grants can help employers build a skilled, youthful workforce at reduced cost. One southern Ontario food manufacturer used both of these incentives with tremendous success. The company used COJG to implement a food safety/traceability training course where a total of 19 employees received new high-value skills. The business also used one of many hiring grants available to employ a Production Administrator. In the first year of the employee being on staff, the business saved $16,000 in wages.
GOVERNMENT GRANTS FOR BUSINESS EXPANSION Canadian food processors can also benefit from government grants aimed at increasing production capacity and developing new markets. These funds are heavily focused on increasing revenue (especially internationally) and increasing the number of jobs a business can maintain. One of the most popular government grants among Ontario manufacturers is the Southwestern Ontario Development Fund (SWODF). Food and beverage processors who are implementing large-scale business expansion projects may use the fund to recover up to 10-15% of project costs to a maximum $1.5 million in government grants.
A new Ontario government grant available exclusively to manufacturers is the CME SMART Green Fund. The program was created to help manufacturers increase productivity while simultaneously reducing greenhouse gas emissions (GHGs). Agri-food processors may use this program to reduce project costs by up to 50% to a maximum $200,000 per facility. Companies may use the fund for up to 5 facilities for a maximum $500,000 grant.
GOVERNMENT GRANTS FOR RESEARCH AND DEVELOPMENT Food and beverage manufacturers should also be aware of grants to research and develop new innovative products or processes. Research activities, either internal or through a post-secondary research institution, can assist businesses overcome technical challenges impeding their growth. A popular and effective funding program available to businesses across Canada is the Industrial Research Assistance Program (IRAP). IRAP grants may provide up to 50-80% of R&D project expenses to a maximum $50,000 or more, depending on the size of the research project. Mentor Works is a business support organization specializing in Canadian government funding. The Ontario-based business has helped hundreds of businesses build and execute their funding strategy through a mix of federal and provincial government grants, loans, and tax credits. Mentor Works offers free online resources, funding webinars, and news via their website at www.mentorworks.ca.
Grand River Foods, a food processor from Cambridge, Ontario successfully received grants through SWODF to expand its production facility’s size and purchase new equipment to increase its product offering. Because of the SWODF-funded project, Grand River Foods expects it will be able to create 50 new jobs and maintain over 300 during the project’s lifecycle.
GOVERNMENT GRANTS FOR CAPITAL ADOPTION Technology is transforming the food and beverage processing sector by making it more efficient and better able to cater to customer preferences. Adding new product lines, increasing capacity, and offering products in different sizes are all projects that can help manufacturers grow and succeed in an extremely competitive market.
FOOD AND BEVERAGE NEWSLETTER WINTER/SPRING 2017
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ROAD TO SUCCESS SUMMER FRESH SALADS INC.: FRESH IS BEST Roasted red pepper hummus, aged cheddar and chipotle dip, spicy penne parmesan salad - success comes in a variety of forms and flavours. At least, it does for Susan Niczowski, President at Summer Fresh Salads Inc. With humble beginnings dating back to 1991 in her mother’s kitchen, Susan has grown her specialty food company into a thriving business with 350 employees and over $100M in annual revenue. It’s a true Canadian success story. But how did she do it? How did she get to where she is today? It all started 25 years ago when Susan identified an untapped market for healthy, all-natural, fresh prepared foods in Toronto. Equipped with a Bachelor of Science in chemistry from the University of Toronto and a passion for gourmet cooking, she took a huge leap of faith, resigned from her job in the corporate world, and set up shop at home. She started with 18 recipes for ready-prepared salads – some of them family favorites, and others based on trends in the industry. She prepared samples of her recipes – all without preservatives, additives or MSG – and went doorto-door, canvassing specialty food stores in the Toronto area. The response was incredibly positive and surpassed Susan’s expectations. The Summer Fresh products were a hit. The specialty food stores loved that they didn’t have to hire additional staff to prepare the salads themselves – they were ready-made, fresh, all-natural, and sold in environmentally friendly packaging. Within a month, Susan moved into a 3,000 square foot facility and hired two employees. “At the time, I had no idea about market research. I just had an instinct, saw a need, and went for it,” Susan recalls. It was a gamble that has paid off, many times over. “My family and I really enjoyed eating gourmet, healthy food but it wasn’t readily available in stores back then. We basically created the market.”
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FOOD AND BEVERAGE NEWSLETTER WINTER/SPRING 2017
Susan’s previous role with Shopsy’s served her well, as it taught her the value and importance of being a federally inspected facility. Under Susan’s leadership, Summer Fresh became the first salad manufacturer to become federally approved. She hired an on-site inspector for Summer Fresh, and maintained strict separation between the various salads. It was a high standard for quality control that none of her competitors were meeting at the time, and it helped her get a foot in the door with the larger grocery chains. From there, the growth of Summer Fresh skyrocketed and the product line expanded to include hummus, dips, sauces and other appetizers. Susan quickly realized the need to lease additional space, but within five years, they had even outgrown the expansion. Summer Fresh moved into a stateof-the-art, custom-designed 18,000 square foot facility, loaded with leading edge equipment. Her father’s training as a mechanical engineer came in handy, as he advised on facility layout and process flow. The business became a true family affair, with Susan’s sister Mary joining the ranks as VP Operations, and her mother still involved in packaging and processing. After two more expansions and still more growth, the Summer Fresh facility was bursting at the seams. In 2008, Susan purchased the building where her current facility is located – 80,000 square feet for the corporate head office, and an additional 80,000 for the manufacturing facility. Of course, she can’t do it all on her own anymore. “I have a 12-year old daughter and I enjoy being hands-on in her life. I knew that I needed a qualified team to support me and help grow the company,” explains Susan. “My time is best spent leading, not doing. So, today I oversee everything as President, and I rely heavily on my team to do what they do best. It’s a fast-paced and collaborative group, and we’re all hungry to grow.”
Needless to say, Susan is not one to rest on her laurels. Having won countless awards on behalf of Summer Fresh - including being named as one of Canada’s 50 Best Managed Companies for the past seven years running Susan is quick to say “that was the past. What matters now, is the future.” Her objective is to keep the company growing in double digits, year over year. “As we grow larger and the competition becomes fiercer, it’s even more important to look at strategy and plan ahead,” she explains. “We conduct an intensive strategic planning exercise every year to look at what’s been successful, and brainstorm ideas for staying on top. We consider everything, from technology, production efficiencies, the competition, R&D, human resources, and so on.” The U.S. market represents a huge, and widely untapped opportunity for Summer Fresh, because its market share is still relatively small south of the border. “Our focus is to grow the loyalty of our existing customers, reaching and developing new customers, and constantly adding innovative products,” explains Susan. “My team travels the world looking for innovative trends in food, flavours, and packaging. We’ve coined the phrase ‘Food is Fashion’ and we introduce new products with each new season, like our warm salads, this past Fall. But trust me, for every successful product, there are many failures. We’re constantly testing and experimenting.” Reflecting back, Susan acknowledges that it’s been a long, and sometimes difficult road, particularly as a female in a male-dominated industry. “My advice to other entrepreneurs? Don’t give up. Research the marketplace, understand your offering inside and out, and really get to know your customers. Hit the road and be persistent. Find a mentor and ask questions. Just don’t stop.” For the time being, Susan has found a good balance between family time and work obligations. A typical day for her begins at 5am with a 5km run, followed by breakfast with her daughter Stephanie, before dropping her off at school. Her work day usually begins by 9am and she makes an effort to be back at home each evening in time for dinner with her husband and daughter. “Family is a priority. We also get together once a week for dinner with the extended family – it keeps us close,” Susan explains. So, what’s next for Susan and Summer Fresh? While her daughter is still too young to take an interest in joining the business any time soon, Susan insists that the idea won’t be forced on her. “I have no concrete plans to pass along the business – she can get involved if and when she’s ready and qualified. For now, I love what I do. The day I wake up and dread going into work is the day I get out of the business.” So, is a future sale in the cards? “I’ve been approached almost every week to sell my business. I’m not interested, but who knows what the future holds.”
Regardless of whether the business stays in the family or is sold down the road, one thing is for certain: Susan and the Summer Fresh team will leave behind a legacy of fresh, flavourful, and ready-to-go foods, snacks and appetizers that make healthy eating so much more enjoyable.
FAST FACTS, TRENDS AND RECENT TRANSACTIONS (AS AT NOVEMBER 30, 2016)
Enterprise value/EBITDA multiples of selected food manufacturers, distributors, grocery and super centres ranged from 6.8 to 17.2 with a median of 11.3 as at November 30, 2016. Selected Food Manufacturers, Distributors, Grocery and Super Centres
Industry Classification
Last 12 Months Revenue (Millions)*
Enterprise Value (Millions)*
Loblaw Companies Limited (TSX:L)
Grocery Stores (Primary)
46,120.0
38,357.3
CAD
11.7
Alimentation Couche-Tard Inc. (TSX:ATD.B)
Grocery Stores (Primary)
44,562.2
39,180.4
CAD
12.7
Saputo, Inc. (TSX:SAP)
Food Products (Primary)
11,111.7
19,012.1
CAD
14.7
Empire Company Limited (TSX:EMP.A)
Grocery Stores (Primary)
24,675.5
6,677.4
CAD
6.8
Metro Inc. (TSX:MRU)
Grocery Stores (Primary)
12,787.9
10,966.5
CAD
10.8
Maple Leaf Foods Inc. (TSX:MFI)
Food Products (Primary)
3,376.8
3,504.3
CAD
12.4
Lassonde Industries Inc. (TSX:LAS.A)
Food Products (Primary)
1,525.3
1,785.0
CAD
10.5
High Liner Foods Inc. (TSX:HLF)
Food Products (Primary)
1,274.3
967.3
CAD
9.1
Premium Brands Holdings Corporation (TSX:PBH)
Food Products (Primary)
1,725.3
2,430.3
CAD
17.2
SunOpta Inc. (TSX:SOY)
Food Products (Primary)
1,792.4
1,668.8
CAD
16.0
Clearwater Seafoods Incorporated (TSX:CLR)
Food Products (Primary)
611.4
1,262.1
CAD
9.7
Whole Foods Market, Inc (NasdaqGS:WFM)**
Food Retail
15,724.0
9,997.5
USD
7.3
Costco Wholesale Corporation (NasdaqGS:COST)**
Hypermarkets and Super Centers
118,719.0
66,676.1
USD
13.5
Wal-Mart Stores Inc. (NYSE:WMT)**
Hypermarkets and Super Centers
484,604.0
264,706.1
USD
8.0
Median *Source: Capital IQ
EV/ EBITDA*
11.3 **U.S. Public Company
DISCLAIMER: The information in this section has been provided by external sources and is subject to change. Fuller Landau LLP is not responsible for the accuracy, reliability or timeliness of the information supplied by external sources. Readers wishing to rely upon this information should consult directly with the source of the information.
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FOOD AND BEVERAGE NEWSLETTER WINTER/SPRING 2017
SELECTED CANADIAN TRANSACTIONS Announced Date
Target/Issuer
April 1, 2016
Highline Produce Limited
April 20, 2016
Archibald Microbrasserie, Inc.
April 29, 2016
Give and Go Prepared Foods Corp.
May 20, 2016
Dominion Citrus Limited
May 20, 2016
Montreal Brewers Co. (minority stake)
May 20, 2016
Toppits Foods Ltd.
May 25, 2016
Total Transaction Value ($ millions)
Buyers/Investors
Sellers
Fyffes plc (ISE: FQ3)
Peak Rock Capital Fund LP
Labatt Brewing Company Limited
Archibald Microbrasserie, Inc.
Thomas H. Lee Partners, L.P.
OMERS Private Equity
2510891 Ontario Inc.
Dominion Citrus Income Fund (TSX:DOM.UN)
Undisclosed
Molson Coors Canada Inc.
Montreal Brewers Co.
Undisclosed
Ocean Premiere Seafood Inc.
Heather Gremont
Black River Cheese Company
Undisclosed
Gay Lea Foods Co-operative Ltd.
Black River Cheese Company
June 1, 2016
Greenwood Mushroom Farm Inc.
Undisclosed
Novacap Industries IV LP
Greenwood Mushroom Farm Inc.
July 5, 2016
Foley's Candies Ltd. (undisclosed stake)
Undisclosed
Yellow Point Equity Partners LP
Foley's Candies Ltd.
August 3, 2016
NAFTA Foods and Packaging Inc. and Create A Treat Ltd.
Undisclosed
Give and Go Prepared Foods Corp.
NAFTA Foods and Packaging Inc. and Create A Treat Ltd.
August 31, 2016
Spirits business
CAD 12
Corby Spirit and Wine Limited (TSX:CSW.A)
Domaines Pinnacle Inc.
September 8, 2016
All Seasons Mushrooms Inc.
CAD 59
Fyffes plc (ISE: FQ3)
All Seasons Mushrooms Inc.
September 26, 2016
Gorilly Goods (51% stake)
Nature's Path Goods, Inc.
Reallygoods LLC
October 13, 2016
Belmont Meat Products Ltd.
Premium Brands Holdings Corporation (TSX: PBH)
Summer Street Capital Partners, L.L.C. and others
October 17, 2016
Constellation Brands Canada, Inc.
Ontario Teachers' Pension Plan
Constellation Brands Inc. (NYSE:STZ)
October 18, 2016
The Stirling Creamery Limited
Gay Lea Foods Co-operative Ltd.
Butterball Farms, Inc.
October 19, 2016
Tender Choice Foods, Inc.
The Blue Goose Cattle Company Ltd.
Tender Choice Foods, Inc.
November 15, 2016
Fresh Selections Inc
Tricor Pacific Founders Capital Inc.
Freshstone Kitchen Inc.
CAD 150 BRL 66 Undisclosed CAD 11
Undisclosed CAD 50 CAD 1,000 Undisclosed CAD 35 Undisclosed
SELECTED US TRANSACTIONS July 7, 2016
The WhiteWave Foods Company (NYSE:WWAV)
July 19, 2016
Golden Enterprises Inc. (NasdaqGM:GLDC)
July 20, 2016
Bakewise Brands, Inc.
USD 10,000 USD 140 Undisclosed USD 18
Danone (ENXTPA:BN)
The Litchfield Fund
UTZ Quality Foods, Inc.
Sloan Bash
Yamazaki Baking Co. Ltd. (TSE: 2212)
Ancor Capital Partners and Merit Capital Partners
July 21, 2016
Martel Bakery Mix and Packaging facility
The Mennel Milling Company of Illinois
General Mills, Inc. (NYSE:GIS)
July 26, 2016
Whitlock Packaging Corporation
USD 130
Refresco Group N.V. (ENXTAM:RFRG)
GarMark Advisors L.L.C.
August 4, 2016
S&D Coffee, Inc.
USD 355
Cott Corporation (TSX:BCB)
S&D Coffee, Inc.
August 11, 2016
Cadbury Biscuits License
Undisclosed
Mondelez International, Inc. (NasdaqGS:MDLZ)
Burton's Food Limited
August 11, 2016
Gourmet Guru Inc.
Undisclosed
United Natural Foods, Inc. (NasdaqGS:UNFI)
Gourmet Guru Inc.
August 16, 2016
Scallop Business
Blue Harvest Fisheries, LLC
High Liner Foods Inc. (TSX:HLF)
September 2, 2016
Wetzel's Pretzels, LLC (unknown stake)
USD 8 USD 67
Levine Leichtman Capital Partners
Farmer Brothers Co. (NasdaqGS:FARM)
Daniel W. Schweiker and John S. Martinson
Nassau Candy, Inc.
Hobbs & Dobbs, Inc.
September 12, 2016
China Mist Tea Company
September 16, 2016
Hobbs & Dobbs, Inc.
September 21, 2016
Spices and Seasonings Business of ACH Food Companies, Inc.
USD 370
B&G Foods North America, Inc. (Parent company NYSE: BGS)
ACH Food Companies, Inc.
September 26, 2016
Frontera Foods, Inc. and Red Fork LLC
USD 109
ConAgra Goods, Inc. (NYSE:CAG)
Frontera Foods, Inc.
September 30, 2016
Caterina Foods LLC
Archer-Daniels-Midland Company (NYSE:ADM)
Caterina Foods LLC
October 3, 2016
Fleischmann's Vinegar Company, Inc.
USD 250
Green Plains II LLC
Stone Canyon Industries LLC
October 3, 2016
Tri-Union Frozen Products, Inc. (18% stake)
THB 1.6B
Tri-Invest LLC
Diversified Food Products LLC
October 5, 2016
High West Distillery, LLC
USD 160
Constellation Brands Inc. (NYSE:STZ)
High West Distillery, LLC
October 10, 2016
Allied Specialty Foods, Inc.
USD 60
AdvancePierre Foods Holdings, Inc. (NYSE:APFH)
Steven Zoll
October 17, 2016
5 Super and Ultra Premium Wines
October 17, 2016
Moran Foods, LLC (1,370 Save-A-Lot stores)
USD 11
CenterOak Equity Fund I, L.P.
Undisclosed
Undisclosed
USD 120 USD 1,370
Constellation Brands Inc. (NYSE:STZ)
Charles Smith Wines LLC
Onex Partners IV LP (Onex Corporation TSX:OCX)
Supervalu, Inc. (NYSE:SVU)
November 14, 2016
Peacock Foods LLC
USD 750
Greencore Group plc (LSE:GNC)
Charlesbank Capital Partners, LLC
November 21, 2016
Clougherty Packing, LLC, PFFJ, LLC and Champ, LLC
USD 150
Smithfield Foods, Inc.
Hormel Foods Corporation (NYSE:HRL)
Mott's, LLP
BAI Brands LLC
Pilgrim's Pride Corporation (NasdaqGS:PPC)
The Maschhoffs LLC
November 22, 2016
BAI Brands LLC (97% stake)
November 29, 2016
GNP Company
USD 1,700 USD 350
FOOD AND BEVERAGE NEWSLETTER WINTER/SPRING 2017
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QUESTIONS? COMMENTS? Please contact our Director of Marketing AIMÉE MORITA 416-645-6572 amorita@fullerllp.com
OUR FOOD & BEVERAGE TEAM JONAS COHEN 416-645-6574 jcohen@fullerllp.com BENNIE ESPOSTO 905-561-2992 besposto@fullerllp.com DAVID FILICE 416-645-6506 dfilice@fullerllp.com GORDON JESSUP 416-645-6508 gjessup@fullerllp.com JEFFREY MANDELL 416-645-6509 jmandell@fullerllp.com ELLIS ORLAN 416-645-6568 eorlan@fullerllp.com
OUR FOOD & BEVERAGE PRACTICE Fuller Landau LLP is a leading mid-sized accounting, tax and advisory firm with offices in Toronto and Hamilton. We are committed to helping owner-managers and entrepreneurs build value, grow their business, and generate sustainable results. We are uniquely positioned to do just that because, as business advisors and entrepreneurs ourselves, we know first-hand what it takes to succeed in any business environment. We know that being in business within the Food & Beverage industry presents a unique set of challenges: customer needs and preferences are constantly changing, margins are under pressure, and inventory and logistics need to be managed effectively. Our team has the expertise and experience to advise on a wide range of business issues.
BRUCE ROHER 416-645-6526 broher@fullerllp.com ANDY YAP 416-645-6536 ayap@fullerllp.com
FULLER LANDAU LLP 151 Bloor Street West 12th Floor Toronto, Ontario Canada M5S 1S4 416-645-6500 45 Goderich Road Unit 11 Hamilton, Ontario Canada L8E 4W8 905-561-2992 www.fullerllp.com