Food and Beverage M&A Overview 2008

US Food Industry Merger & Acquisition Activity Increases in 2006

In 2006, 348 mergers and acquisitions were completed in the food industry and an additional 102 were announced, but not yet completed by the end of the year, according to The Food Institute’s Food Business Mergers & Acquisitions 2006. Activity in the sector was up 7.7% from 2005.

Ethnic and Healthy Foods Continue to Lead Market

New products that address health issues and cater to more exotic tastes are hitting the market at a rapid pace. Government activity such as implementation of organic certifications and regulations concerning food served in public schools helps drive the healthy foods trend. The ever-changing demographics of the U.S. population are fueling the ethnic trend, especially in the Hispanic market.

Specialty / Gourmet Sector Showing Impressive Growth

Specialty and gourmet foods grew more than 15% in the last year to reach almost $35 billion of annual sales according to industry trade groups. Growth in the sector is mainly attributed to greater focus on these types of products at conventional supermarkets in addition to continued growth in the specialty supermarket segment.

SOURCE: PricewaterhouseCoopers