M&A Trends in the Food and Drinks Market: In-depth deal analysis and its impact on the FMCG landscape

Published by: Business Insights

Published: Oct. 1, 2009 - 112 Pages

Table of Contents

M&A Trends in the Food and Drinks Market

Executive summary

Introduction

M&A trends 2003-2008

F&B M&A strategies

Case studies

Future outlook

Chapter 1 Introduction

Summary

Introduction

Scope of report

Explanation of terms

Continued challenges for food and drinks

Economic trends

Consumer trends

M&A trends

The recessionary impact on the retail sector

Key economic factors

The F&B industry remains resilient

M&A drivers

Future trends

Challenges to growth

Catalysts for recovery

Chapter 2 M&A trends

Summary

Introduction

Geographical breakdown of acquiring companies

Europe continues to dominate acquisitions

Israel’s resilient economy contributes to overseas market penetration

The US and China both perform well in 2008

Geographical breakdown of target companies

Deal values

Total M&A values increased in 2008, but average value declined

Market segments

The beverage sector is performing better than food in 2008

Soft drinks dominate the beverage sector while basic foods remain popular

Conclusions

Chapter 3 F&B M&A strategies

Summary

Introduction

Strategic influences

Consumer demands influence M&A strategy

Innovation as a driver of strategic growth

The beverage industry exemplifies an innovative approach to M&A

Emerging countries provide an attractive alternative to stagnant domestic markets

China

India

Russia

Mega-mergers continue as the giants straddle the globe

Acquisition deals by status

Mergers are less popular than acquisitions

Private equity may not suffer as much as expected

Drivers of strategic activity

Consolidation

Strategic growth

Efficiencies

Diversification

Investment/Profit

Geographical expansion

Chapter 4 Case studies

Summary

Introduction

Case Study 1: Kirin Holdings

Financial overview

Aggressive strategic expansion strengthens Asian position and accelerates into Australia

Moving into Australia through food and dairy acquisitions

Battling for top spot in the beer market

Consolidation in the home market

Strategic goals

Looking to the future

Case Study 2: Kraft Foods

Financial Overview

Strategy to re-aline and grow through M&A initiatives

Realignment of core business

Bid for global dominance

Looking to the future

Case Study 3: Scottish & Newcastle/Carlsberg Heineken

S&N M&A history

Carlsberg/Heineken acquisition signals the end

S&N UK

Case Study 4: Premier Foods

Financial overview

Cautionary tale from a market leader crippled by debt

Looking to the future

Chapter 5 Future outlook

Summary

Introduction

Strategies for success

Cost-containment

Product innovation

Price competitiveness

Variety of product

Supply chain integration

Client segmentation and niche markets

Case study: Danone

Single-minded focus leads to strategic success

Future trends

M&A activity is set to increase

Hostile takeovers may replace friendly consolidation

As western markets saturate, growth lies overseas

Appendix

Research methodology

Index

List of Figures

Figure 1.1: Commodity food and beverage index, 2004-2009

Figure 2.2: Number of M&A deals, food and drinks, 2007-2009 (by deal date)

Figure 2.3: Top regional locations of acquiring food and drinks companies, by region, 2007 & 2008

Figure 2.4: Top 10 locations of food and drinks acquiring companies by country

Figure 2.5: Top locations of target companies, by region, 2007 & 2008

Figure 2.6: Top locations of food and drinks targets, by country, 2007-2008

Figure 2.7: M&A trends by deal value ($m), 2007 & 2008

Figure 2.8: Average deal value, ($m), 2007 & 2008

Figure 2.9: Total value of the Top 10 deals by industry sector, ($), 2007 & 2008

Figure 2.10: Distribution of beverage deals by market

Figure 2.11: Distribution of food deals by market

Figure 3.12: Acquisition deals by status, 2007 & 2008

Figure 3.13: Key M&A drivers (number of deals), by type, 2007-2008

List of Tables

Table 1.1: Largest Global Food & Beverage Companies (August 31st 2009)

Table 2.2: Number of M&A deals, food and drinks, 2007-2008

Table 2.3: Regional locations of acquiring companies, 2007-2008

Table 2.4: Top 10 locations of food and drinks acquiring companies by country, 2007-2008

Table 2.5: Top locations of target companies by percentage, 2007-2008

Table 2.6: Top 10 locations of food and drinks target companies, by country, 2007 & 2008

Table 3.7: Top 10 deals, ($m), 2008

Table 3.8: Top 10 deals ($m), 2007

Table 3.9: Acquisition deals by status (% share), 2007-2008

Table 3.10: Deals by type, 2007-2008

Table 3.11: Top Private Equity Deals ($m), 2007

Table 3.12: Top Private Equity Deals($m), 2008

Table 4.13: Kirin Holdings financial summary, (JPYm), 2007-2008

Table 4.14: Kraft Foods financial summary, ($m), 2007-2008

Table 4.15: Allocation of key S&N brands

Table 4.16: Premier Foods financial summary, (£m), 2008

Abstract

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