As a result of this heightened level of activity in 2021, 2022 volumes were slightly lower, as was expected. Despite this, M&A volume is still holding up despite the various issues currently facing the sector, such as surging inflation, labour shortages and the uncertain global economic outlook.
Our research indicates that there were 48 deals in the UK Food and Beverage sector in the first half of 2022, 35 transactions if international acquisition targets and Pet food deals are excluded. Alcohol, Bakery and Health/ Free-From sub-sectors continue to perform well.
There continues to be opportunities in the Food and Beverage sector for businesses to take advantage of, including:
However, there are significant head-winds affecting the sector, including surging inflation, supply chain disruption from raw material and labour shortages, significant energy price increases due to the war in Ukraine and the ongoing impact of Brexit.
The current global cost of living crisis and wage stagnation is restricting the ability to pass on rising costs to consumers, without potentially pushing them to alternative cheaper brands or own-label products.
The coming year will test the resilience of all businesses across the sector, and where there are challenges there will also continue to be M&A opportunities for both PE and Trade buyers.
Our Corporate Finance team have significant experience in advising clients through the M&A process, whether you are looking to sell your business or grow through making acquisitions.
We can help identify buyers for your business or assist you in evaluating acquisition opportunities, providing deal-relevant advice throughout the process.
We care about your business. Close working relationships are at the heart of our service delivery which sees our clients stay with us year after year, trusting us for our specialist advice and open dialogue.
We understand the food and beverage industry. Our expertise, market knowledge and access to professionals across our global network means we are well placed to offer insight and pragmatic advice to your businesses at each stage of its lifecycle.
We help you to make smart decisions that have lasting value. Working with you, we will help you to successfully adapt and overcome challenges in the food and beverage sector, both today and in the future.