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MARKETWATCH
Six transactions announced over the past two months
Corporate activity in the food and beverage industry slowed down in the months of September and October following a strong showing in the second quarter and the first half of third quarter. Six transactions were announced over the two-month period.
New Zealand-based healthy snacking business, Prolife, acquired the Lucky and Sunsol brands from Select Harvests. The sale of the brands forms part of Select Harvests strategy of resetting its food assets to focus on opportunities in valueadded almond products.
Fermentum Group, owner of the popular craft beer brand, Stone & Wood, was acquired by Lion. The value of the acquisition was not disclosed and media reports estimated the transaction to be valued at $300million. Fermentum Group’s product portfolio includes Sunly Seltzer, Two Birds, Fixation and Little Dragon. As part of the transaction Lion plans to build on Fermentum’s Stone & Wood brand and the legacy created by the company’s founders.
ASX-listed Forbidden Foods acquired plant-based snacking company Blue Dinosaur. The transaction included an upfront consideration of $3.2mn and an earnout consideration of $0.8mn. The upfront consideration was settled $2mn cash and $1.2 mn through the issue of Forbidden Foods shares.
Blue Dinosaur was acquired on a 0.9x FY21 revenue multiple and a 16.5x FY21 EBITDA multiple.
Private equity firm Liverpool Partners acquired coffee equipment company Australian Beverage Corporate and a majority shareholding in Seven Miles Coffee Roasters.
Seven Miles Roasters recently acquired Bills Beans, a coffee roaster based in Orange, NSW.
ASX-listed Digital Wine Ventures announced the acquisition of wholesale beverage marketplace, Kaddy, for $34.25mn. The acquisition was funded through the issue of $27.5mn of shares in Digital Wine Ventures and a cash consideration of $6.75mn.
The outlook for the food and beverage industry is positive at the end of the third quarter. The relaxation of trading restrictions in NSW and the progress made with the rollout of vaccinations should result in improved trading conditions and support investor confidence in the food and beverage industry. F
Date Target Name Acquirer Sector 30 Aug Lucky and Sunsol brands Prolife Snacking
30 Aug Boujee Wine 80 Proof Liquor Alcoholic Beverages 9 Sept Fermentum Group Lion Alcoholic Beverages 15 Sept Blue Dinosaur Forbidden Foods Healthy snacking 24 Sept Seven Miles Coffee Roasters Liverpool Partners Coffee 10 Oct Kaddy Digital Wine Ventures Alcohol distribution
Ben van der Westhuizen and David Baveystock are directors of Comet Line Consulting, an advisory business that specialises in acquisitions and divestments within the Australian food & beverage industry. For more information visit www .cometlineconsulting.com.au.
Commodity Outlook
WHEAT – The world wheat indicator price is forecast to increase by 8 per cent in 2021−22 to US$290 per tonne with global supply expected to fall.
COARSE GRAINS – Coarse grain prices are forecast to remain high due to strong global demand.
OILSEEDS – Reduced Canadian canola production to tighten global supply, driving up Australian export price.
SUGAR – The value of crop production is forecast to increase by 7 per cent to a record $39.5 billion because of strong price increases for grains, cotton and sugar.
BEEF, VEAL AND SHEEP MEAT – Average saleyard prices in
