According to the report, functionality is in focus in the Baking Industry, as consumer demand for innovation in ingredients and flavors drives competitive positioning and a robust M&A market.
Read the industry report here: https://www.bglco.com/research/global-m-and-a-partners-food-and-beverage-newsletter-bakery/
Bakery manufacturers are leveraging critical food trends to shape their portfolios and product offerings to remain relevant with their target consumers. Evolving preferences, underpinned by the rising influence of Millennial and Gen Z consumers, are fueling demand for bakery products that satisfy specialized needs for nutrition, diet, health conditions, convenience, authenticity, and small indulgences. Healthy and diet-friendly options are rapidly gaining popularity, while changing consumer palates are impacting food choices, encouraging the use of premium ingredients, functional/superfoods, and bold flavors.
The M&A market is gaining momentum as industry participants look to further leverage acquisitions and orient product portfolios towards consumer demand for innovation and functionality:
- Investments in niche, better-for-you, and health-focused products are driving category disruption/evolution. Notable targets include Rubicon Bakers, Rudi’s Organic Bakery, Give & Go Prepared Foods, and Bantam Bagels.
- Large bakery and snack product manufacturers — among them Mondelez International, Treehouse Foods, Dawn Foods, and Nestlé — are divesting non-core, underperforming brands and divisions to reshape their portfolios towards premiumization and on-trend products.
- Private equity funds are looking to establish scalable growth platforms in the bakery space, with Tilia Holdings, Keystone Capital, Trive Capital, Shoreline Equity Partners, and Platinum Equity among the sponsors to recently complete acquisitions.
About Brown Gibbons Lang & Company
Brown Gibbons Lang & Company (BGL) is a leading independent investment bank and financial advisory firm focused on the global middle market. The firm advises private and public corporations and private equity groups on mergers and acquisitions, divestitures, capital markets, financial restructurings, valuations and opinions, real estate, and other strategic matters. BGL has investment banking offices in Chicago, Cleveland, and Philadelphia, and real estate offices in Chicago, Cleveland, Denver, and San Antonio. The firm is also a founding member of Global M&A Partners, enabling BGL to service clients in more than 30 countries around the world. For more information, please visit www.bglco.com.
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