Vividly’s Post

Here's what's new in the #cpgindustry this week: Southern Glazer's Wine & Spirits has plans to acquire Horizon Beverage. The deal includes all of Norton, Massachusetts-based Horizon Beverage’s Massachusetts and Rhode Island operations and beer, wine and spirits portfolio, adding two states to the largest bev-alc distributor’s footprint, for a total of 46 states, plus Washington, D.C., Canada, the Caribbean and Central and South America. Oats Overnight has raised $35 million in a Series B funding round intended to help the high-protein oats brand continue to expand its manufacturing capabilities and grow its footprint in retail stores. The round follows a $21 million raise from last year when the company reported around 250 full time employees and a footprint in over 2,000 doors nationwide. Kroger and Albertsons Companies’ $24.6 billion grocery merger is once again in flux after a Colorado judge and the state’s attorneys general agreed today to an order halting the proceedings until the Colorado District Court rules on the state’s lawsuit that seeks to permanently block the deal. The agreement also cancels a nine-day hearing on the preliminary injunction set to start on August 12; instead it consolidates the proceeding with a two-week trial slated to begin on September 30. Ghetto Gastro is adding to its line with the launch of two fall-inspired toaster pastry flavors: sweet potato and brown sugar. The pastries are vegan, formulated with organic roots and grains, non-GMO and include no artificial additives or preservatives. Plant-based whole cuts maker Juicy Marbles has added plant-based Baby Ribs with edible bones to its portfolio. The company said it has been experimenting with its ribs for the past year, selling limited versions of its ribs to its online community but is now offering a retail-ready product. Danone is entering a partnership with Microsoft in order to integrate artificial intelligence throughout its supply chain. The dairy business said the program will include initiatives for its workforce to boost their experience with AI, including the use of predictive forecasting and real-time adjustments to streamline its operations. Siddhi Capital announced the closing of its second fund today at $135 million; the new vehicle marks the firm’s shift from startup to growth equity stage investments and a broadening beyond food and beverage. brekki has expanded its portfolio of ready-to-eat oats with two new flavors: Lemon and Choco Coconut. Plant-based milk and creamer producer Elmhurst® 1925 has made its first foray into the plant-based meat set with its single-ingredient chicken alternative, TerraMeat Plant-Based Chick’n. The new ambient product is made with hemp protein and has 26 grams of protein per serving.

Here's what's up in the #cpgindustry this week: Adult non-alc retailer Boisson is filing for bankruptcy protection, citing financial challenges amidst an “overly aggressive expansion plan” and the “inefficient deployment of capital.” Hemp-based beverage brand Flyers Cocktail Co has closed a Series Seed funding round led by cannabis-focused investment firm Delta Emerald Ventures. Liquid Death has introduced a new 12 oz. Shorty Can format available in Mountain Water Still, Severed Lime Sparkling and Mango Chainsaw Sparkling varieties. Each can contains 7.2 oz. less liquid than the brand’s king-size tallboys. Aplós has announced the launch of Aplos Cocktails, a new line of ready-to-drink (RTD) canned non-alcoholic cocktails. The line debuts with two flavors: Ume Spritz and Chili Margarita. Hain Celestial Group has sold cookie brand Thinsters to Icee and Dippin’ Dots owner J&J Snack Foods Corp in an all-cash transaction. Terms of the deal were not disclosed. The sale aligns with Hain’s previously announced plans to refocus the company’s portfolio of better-for-you brands across five growth categories: snacks, baby and kids’ food, beverages, meal preparation, and personal care. Yasso, Inc. has expanded its lineup of frozen yogurt treats with the addition of Strawberries & Cream Bars, Creamy Mango Bars, and Strawberry Chocolate Crunch Bars. Amy's Kitchen has introduced two new entrees: Penne with Mushrooms & Spinach Bowl and Mole Enchiladas. Barilla Group-owned Tolerant Foods, the maker of organic legume-based pasta products, announced that it has closed its doors and will begin winding down the brand. Former Starbucks CEO Howard Schultz has purchased a 2% stake Tony's Chocolonely. Douglas Lamont, CEO of Tony’s Chocolonely, said that Schultz would allow the chocolate producer to benefit from “his extensive experience of building a global consumer brand and company.” Serenity Kids recently closed a $52 million Series B minority investment and partnership led by Stride Consumer Partners LLC. The Carr’s will maintain ownership and continue to run the company.

Mars continues to expand its footprint into innovative segments, increasing its presence in incremental snacking and eating occasions. The acquisition of Kellanova aligns perfectly with the evolving food industry landscape for several compelling reasons: - Snacking Trend: With people snacking more and having fewer sit-down meals, Mars broadens its reach into popular snack categories like chips and crackers, including well-known brands such as Pringles and Cheez-It. This complements Mars’ existing candy brands, expanding their share of the growing snacking market. - Diversification for Stability: Beyond snacks, this move aims to diversify Mars’ business. Kellanova’s portfolio, featuring plant-based and healthier options, meets the rising demand for better-for-you products. Additionally, Kellanova’s global presence helps Mars penetrate emerging markets, reducing risk and unlocking growth potential. - Innovation and Collaboration: The merger of Mars and Kellanova unlocks exciting possibilities for new product development. The fusion of Mars’ chocolate expertise with Kellanova’s snacking knowledge can lead to innovative offerings tailored to today’s health-conscious consumers. - Cost Efficiency and Market Influence: By uniting, Mars can leverage economies of scale for cost savings and enhance bargaining power with retailers and suppliers. This enables them to offer competitive prices, secure prime shelf space, and enhance product appeal to consumers. - Future Growth Strategy: Mars’ strategic acquisition of Kellanova signals a long-term commitment to dominating the snacking industry. With a steadily growing snacking portfolio, Mars is well-positioned for sustained growth, continuous innovation, and lasting success in an expanding market. Mars’ acquisition of Kellanova strategically fortifies their standing in the snacking realm, positioning them for enduring success and advancement, and yet the question is, will Mars continue to expand also into health and wellness food and snack options too? Thoughts?..

NEW: "The key ingredient in Siete Food’s $1.2 billion exit to Pepsi: Authenticity" Authentic food products can drive a whole lot of authentic demand. That’s the food industry buzz after this week’s news that PepsiCo will acquire Siete Family Foods, the Austin, Texas-based maker of grain-free tortillas, better-for-you chips and dairy-free queso. In a decade, the Mexican-American Garza family built the company from an Austin favorite to a national brand with $500 million in annual revenue and distribution from Whole Foods to Walmart. By the time actress and entrepreneur Eva Longoria joined as an investor earlier this year, Siete had become the fastest-growing Latino food company in the country. The deal from PepsiCo, which faced competition from private-equity firms as well as other food companies, values the company at $1.2 billion, according to The Wall Street Journal. “It’s possible to build a thriving brand that honors our heritage and celebrates our culture,” said Siete’s Miguel Garza. From food to fashion, authenticity is winning. Full post up on ImpactAlpha: https://lnkd.in/guj5DrbM

🚨 AN INDUSTRY FIRST🚨 Exciting news from GOOD Meat as they launch their groundbreaking product, Good Meat 3, the first cultivated meat available for retail purchase in Singapore. Priced competitively at SGD 7.20 (~$5.30) for 120g, this innovation combines cultivated chicken with plant proteins, offering the same taste and texture as conventional chicken. With strong consumer demand and support from partners like Huber's Butchery, this milestone marks a significant step forward for the cultivated meat industry, despite challenges faced in other regions. (The Cell Base) https://lnkd.in/ebkyvuku

Global Food Giants JBS and Sigma Alimentos in Bidding War for Oscar Mayer The iconic OSCAR MAYER FOODS brand, known for its hot dogs, cold cuts, and bologna, has sparked fierce competition as Brazilian meat giant JBS and Mexico's Sigma Alimentos Centro, S.A. de C.V. seek to acquire it from Kraft Heinz in a deal expected to reach nearly $3 billion. This potential divestment reflects Kraft Heinz’s ongoing strategy to prioritise healthier products in response to declining consumer interest in processed foods. As Kraft Heinz restructures, Oscar Mayer and other non-core brands have been grouped under its Balance division, which includes cheeses and coffees. The company's CEO, Carlos Abrams-Rivera, is leading this reorganisation to help improve the company’s stock performance, which has underperformed the S&P 500 Packaged Foods & Meats index. Sources indicate that Kraft Heinz is aiming for a valuation of around ten times Oscar Mayer's EBITDA, approximately $290 million, which would bring the sale price close to $3 billion. JBS and Sigma Alimentos are among several potential buyers that have expressed interest in Oscar Mayer, according to insiders familiar with the process. The current bidding battle marks another significant step in JBS's long-term strategy to expand its footprint in the U.S. food market. Known as the world’s largest meatpacker, JBS already controls prominent U.S. brands, including Pilgrim’s Pride and Swift. Owned by Brazilian billionaires Joesley and Wesley Batista Filho through their holding company J&F, JBS is positioning itself to capture more of the lucrative processed meats market. Sigma Alimentos, on the other hand, brings an extensive network in the Americas and Europe as a subsidiary of Mexican conglomerate Alfa. Since 1993, Sigma has distributed Oscar Mayer products in Mexico and offers a wide range of meats, cheeses, yoghurts and other refrigerated goods. Acquiring Oscar Mayer would strengthen Sigma's U.S. presence and expand its portfolio of recognisable brands. The potential sale of Oscar Mayer is part of a broader reshuffling in the consumer-packaged goods (CPG) industry, which has experienced a wave of major acquisitions and divestitures. High price inflation and weight-loss medications have weighed on demand for processed foods, driving companies to reconsider product lines and seek opportunities in higher-demand areas. Kraft Heinz’s reorganisation aims to streamline its focus and adapt to changing market conditions. Despite its household brand recognition, Oscar Mayer has not been immune to these industry-wide shifts. In 2019, Kraft Heinz wrote down the value of its Oscar Mayer and Kraft brands by $15.4 billion as consumer demand softened. Under CEO Carlos Abrams-Rivera, Kraft Heinz is committed to reshaping its portfolio, including Oscar Mayer, to improve the company's financial performance and address market pressures. 

In recent months, a buzzing conversation has emerged among sriracha aficionados online, all centered around a noticeable shift in the taste and appearance of Huy Fong Foods' iconic sriracha sauce. Loyalists of the brand have observed that the sauce now sports a slightly more orange hue compared to its traditional dark red color. More striking, however, is the consensus that the sauce's flavor profile has altered, particularly noting a decrease in its heat intensity. The roots of these changes trace back to July 2020, when Huy Fong Foods alerted consumers to an impending sriracha shortage due to COVID-19's stranglehold on supply chains. Initially expected to be a short-term hiccup, the scarcity extended far beyond a few months, turning sriracha into a rare find on supermarket shelves. The company pointed to severe drought conditions as the culprit behind the shortage, a claim that held water until production was halted in April 2022. Yet, as it turns out, environmental issues were only part of the complex tale. For nearly three decades, Underwood Ranches, a California-based farm, was the exclusive supplier of chili peppers to Huy Fong Foods. However, a dispute in November 2016 escalated into a legal battle, culminating in a multi-million-dollar lawsuit and the dissolution of the partnership. This breakup was a pivotal moment that forced Huy Fong to source jalapeños from Mexican farms, which struggled to meet the brand's demands, leading to a production bottleneck. While Huy Fong framed the situation as a chili pepper shortage akin to those affecting other agricultural products, the reality was more nuanced. According to Underwood Ranches, their jalapeño production was thriving, suggesting that the "shortage" was a direct consequence of the fallout with Huy Fong rather than environmental factors. Fast forward to the present, and Huy Fong has quietly onboarded new spice suppliers, allowing the return of their beloved sriracha to store shelves nationwide. However, this return has not been met with universal acclaim. The changes in taste and appearance have sparked debates among fans, with some questioning if the new peppers and altered supply chains have fundamentally changed the essence of the sauce they once knew and loved. In conclusion, while Huy Fong sriracha is back, it's clear that the journey it has undergone—from supply chain disruptions to legal disputes and changing agricultural partnerships—has left a tangible impact on its product. Whether these changes are for better or worse is subjective, but one thing is certain: the sriracha saga continues to evolve, reflecting the complexities of global food production and supply dynamics.

Finland-based food group HKScan is changing its name to HKFoods. #food #foodindustry #foodindustryinsight #foodnews #foodbusiness #foodbusinessnews #foodbusinessowner #foodmanufacturing #foodanddrink #foodandbeverage #foodandbeverages #foodanddrinks #foodanddrinkindustry #foodprices #foodproducts #foodproduction #foodinflation

The team at Triton attended IDDBA last week and sincerely enjoyed spending time with the sponsors, exhibitors, and business owners who helped make the event such a success.   Key Takeaways: 1. M&A activity continues to tick upwards in the bakery & confection sector. 2. Volume will continue to scale at large private label bakeries and co-manufacturers as private equity makes their splash on the sector. 3. Product Innovation & Partnerships: -Sriracha-infused brioche buns & onion rolls were commonplace. -Sweet flavor profiles such as barbeque and chocolate continue to be blended into the dips and spreads sector; ie – hummus, cannoli chips. Dill pickle was just as popular. -To entice the ever-curious, typically younger consumer, sour flavors are gaining ground; ie – Van Holten's Pickles & Impact Confections, Inc. Warheads-flavored pickle. -Allergen-friendly and inclusive specialty products such as gluten-free and vegan pastries/breads were widespread. 

Cremica Food Industries Limited, known for its condiments such as mayonnaise and ketchup, is aiming to secure INR 500 crore, which would peg its valuation at INR 2,000 crore. According to Akshay Bector, chairman and managing director of Cremica Foods Ltd, the company plans to dilute 20-30 percent of its equity for this purpose. The brand plans to use these funds to enhance operational efficiencies, support working capital needs, expand distribution channels, and venture into new product categories such as frozen items, specialty beverages, and pickles. "We're seeking funding to expedite the brand's growth," he stated. Read full story here: https://lnkd.in/gP2KiMSM #funding #growth #expansion #foodindustry Ashu Agrawal