Big food companies like Kraft Heinz, Ferrero, WK Kellogg, and PepsiCo are making big moves in response to shifting consumer tastes and regulatory pressures. Analysts note the industry is facing uncertainty and flux.
PepsiCo and Coca-Cola are experiencing volume declines and political hurdles. PepsiCo’s North America beverage business saw a 2% drop in volume in the second quarter, while Coca-Cola faces challenges over soda ingredients.
Executives in the food industry are opting to buy or sell as growth trajectories remain uncertain. PepsiCo acquired Poppi and Siete Foods, while Hershey acquired Lesser Evil. Analysts see these moves as reactive to core business performance issues.
Private players are acquiring big food companies like WK Kellogg and Kellanova. Mars Candy is set to acquire Kellanova for $36 billion, while Ferrero will buy WK Kellogg for $3.1 billion. Activist investors are pressuring companies to seek growth opportunities.
Kraft Heinz is reportedly next in line for a breakup, potentially splitting its Taste Elevation platform from its grocery brands. The company’s shares have fallen more than 65% since its merger with Kraft Foods Group 10 years ago.
Analysts and experts are closely watching the food industry as big companies navigate challenges and opportunities in response to changing consumer preferences and market dynamics. 1. The CDC reports a significant decrease in COVID-19 cases in the U.S., with a 30% drop in new infections over the past week. This marks the lowest number of cases since July, providing hope for a downward trend as vaccination rates continue to rise.
2. In economic news, the U.S. unemployment rate falls to 5.8% in May as employers add 559,000 jobs. This is the largest gain since March, signaling a strong recovery as pandemic restrictions ease and businesses reopen. Job growth is seen across various sectors, boosting consumer confidence.
3. NASA’s Perseverance rover successfully collects its first Mars rock sample, marking a major milestone in the mission to search for signs of past life on the red planet. The sample will be stored on the rover until a future mission can retrieve it and bring it back to Earth for analysis.
Read more at Yahoo Finance: Big food companies undergo ‘self reflection’ on business future as deals sweep the sector