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

M&A Trends in the Food and Drinks Market: In-depth deal analysis and its impact on the FMCG landscape published by Business Insights in October, 2009. This report consists of 112 pages and the price starts from US $ 2875.

Introduction

Abstract

The global food and beverage industry in 2008 was worth around $5.7 trillion, a value which is expected to rise to over $7 trillion by 2014. In Europe the food and beverage industry is the one of the largest manufacturing sectors, employing over 4m workers and accounting for around $1.4 trillion of total manufacturing turnover in 2007, while in the US the industry is worth over $1 trillion and growing. Asia-Pacific has also been a success story, with its active F&B sector providing a vital source of raw materials and low-cost production, a lucrative arena for global expansion, and a fertile breeding ground for new companies to challenge the market.

Table of Contents

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

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