Do recent mergers and acquisitions herald our future food supply?

The industrial movement is clearly "better-for-you", with major operations such as the acquisition of Poppi by PepsiCo illustrating a strong appetite for healthy and functional products.

Poppi, Alani, Simple Mills, Britvic, naturally radiant brands ? © D.R.

Despite Trump, his tariffs, and other geopolitical uncertainties, the year has already seen a string of multi-billion dollar mergers and acquisitions (M&As) in the food industry. One example is PepsiCo, which paid $1.95 billion for the prebiotic soda brand Poppi (VNGR Beverage). This represents a major shift by food giants toward the "gut health" trend.

Similarly, the $1.8 billion acquisition of Alani Nutrition, known for its women-focused energy drinks, by functional drinks pioneer Celsius, also demonstrates the industry's focus on wellness products.

Flower Foods, the second-largest bakery producer in the United States, also completed one of the largest acquisitions in its century of existence by acquiring Simple Mills, a young and leading brand in the healthy cookie and pastry segment, for $795 million.

Danish brewing group Carlsberg also completed its acquisition of British drinks maker Britvic for approximately €3.9 billion in the first quarter, adding a wide range of non-alcoholic brands, from Teisseire cordials to Pepsico bottling, to the UK market.

This M&A activity in the food and beverage sector continued to be driven primarily by strategic acquirers, including companies primarily owned by private equity investors. According to investment bank Kroll, strategic transactions accounted for 76% of the total volume.

Capturing but also shaping new consumption habits

Mergers and acquisitions appear to be driven by a logic of integration and industrial synergy. But, in addition to strengthening their competitive position, these companies are accessing new technologies and new market segments through their operations. The dynamics suggest that consolidation will continue, with the potential for accelerated innovation.

Furthermore, food giants are no longer content with their traditional product lines. Their diversification strategy reflects a desire to expand their offerings beyond their traditional categories to capture new market share and respond to changing consumer preferences.

In other words, the food of tomorrow could be shaped by more personalized products segmented according to lifestyles and health goals. This suggests a shift toward more nutritious versions of foods, even the most indulgent, by reducing sugar and fats, or incorporating beneficial ingredients.