The last few months have seen some interesting M&A activity across Asia-Pacific, especially within the food and beverage sector. Several things can be attributed to this – a desire to diversify supply chains post-COVID being a contender, as well as growing economies in smaller countries continuing to establish their presence in the market. But also shifting consumer priorities has caused some businesses to redefine their offering and rebrand themselves to a rapidly changing consumer world.
One such consolidation includes the merger between DSM’s nutrition business and Firmenich. This will combine the strengths of the two businesses: the flavours and fragrance side of Firmenich and the nutrition and molecular technology of DSM.
Tyson has acquired a 60% share of In Supreme Foods Processing company, part of Tanmiah Food thus expanding the businesses presence across MEA. Tyson will double the processing capabilities of Supreme Foods thus growing it’ product range across the region.
Diageo announced the acquisition of Vivanda, owner of the FlavorPrint artificial intelligence technology behind several Diageo projects aiming to match consumers with the right Diageo-owned alcoholic product.
Nestle continues in acquisition mode with the purchase of Brazilian company Puravida and the recent announcement that the Nestle Health Science business would acquire GO Healthy tax regulations, school structures, housing, Hails brands in New Zealand.
Heineken is expanding its geographical footprint across Africa but has exited from Russia. The business acquired O&L and NBL in Nambia and Distel in South Africa.
Cargill has reached an agreement with Croda to acquire the majority of its performance technologies and industrial chemicals business thus significantly expanding its presence in the bio-industrial space.
The speculated sale of the Infant Nutrition business of RB and the sale of FrieslandCampina’s Friso brand has been respectively halted for the time being. In contrast, Danone announced in May that it agreed to sell to Mengniu the 25% stake the company holds in Yashili and the 20% stake it holds in the Inner Mongolia Dairy Joint Venture. Danone will acquire from Yashili 100% of Dumex Baby Food Co Ltd, a Chinese manufacturer of Infant Milk Formula products.
Kellogg’s recently announced the separation of its current business into three parts and will spin off its US, Canadian, Caribbean cereal and plant based business. The remaining 3 business units will be global snacking, international cereals and noodles and North America Frozen Breakfast.
Unilever recently announced an overhaul of their business structure to become a category focused business instead of a matrix structure. The business will be divided into five distinct business groups: Beauty & Wellbeing, Personal Care, Home Care, Nutrition, and Ice Cream.
Across all sectors, health and well-being is driving the industry as well as a focus on sustainability. This is influencing all aspects of the value chain from R&D to reaching the customer/consumer.
Dole, Suntory, Coca-Cola and Lotte, to name a few, are examples of businesses that are focusing their attention on creating healthier alternatives to consumers and reducing sugar. This is a subbranch of not only the shift to sustainability, but the global movement towards healthier alternatives as well.
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