US food industry wraps up $42bn in deals
What’s next in 2018? Here’s a taste of possible top deals from industry experts
New York — The US food industry has announced $42bn in deals this year, but it could just be a taste of the next wave of consolidation coming in 2018. Companies from Kraft Heinz to Conagra are seen as possible suitors next year as food giants struggle to generate growth. They face an array of challenges: shifting eating tastes, a resurgent Wal-Mart playing tough with suppliers and Amazon’s expansion into the grocery business. The latest round of deal speculation was sparked by two food-industry acquisitions announced Monday. Campbell Soup agreed to acquire Snyder’s-Lance, a maker of potato chips and pretzels, and Hershey will buy Amplify Snack Brands, best known for SkinnyPop popcorn. With those two transactions, the total value of food deals announced in the US this year increased by about 54% from 2016’s $27.1bn. Acquisitions are increasingly seen as a way for old-line food companies to tap into new consumer trends — such as more fresh food. The industry needs something. Over the ...
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