January 10, 2025

Please see below for a listing of what the North Point Food & Beverage Team has been tracking this week. We hope that you find the content insightful and a nice way to summarize the most noteworthy Food & Beverage events of the week.

Happy New Year and have a nice weekend!

Glen Clarke

Head of Food & Beverage

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Advent International to acquire Sauer Brands from Falfurrias.

• Advent International, a leading global private equity investor, today announced that it has signed a definitive agreement to acquire Sauer Brands Inc., a scaled platform of leading condiments and seasonings brands, from Falfurrias Capital Partners.

Source: Mergermarket

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Smithfield Foods files for IPO.

• Smithfield Foods, the Virginia-based fresh pork and pork products producer owned by Hong Kong's WH Group, announced it has filed a registration for an initial public offering.

Source: Mergermarket

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Safety Shot to buy Yerbaé Brands Corp.

• Safety Shot, a wellness and dietary supplement company, and Yerbaé Brands Corp., a plant-based energy beverage company, announced the execution of a definitive arrangement agreement that will seek to redefine the landscape of healthy and functional beverages.

Source: Mergermarket

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Louis Dreyfus buys BASF’s food and health ingredients business.

• Louis Dreyfus is acquiring German chemicals manufacturer BASF’s Food and Health Performance Ingredients Business. The transaction includes a production and R&D facility in Germany, along with three other labs. As part of the deal, 300 BASF employees will transfer to Louis Dreyfus’ operations.

Source: Food Dive

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Pat the Baker, Irish Pride to be acquired by Ceres (Mayfair Equity Partners).

• Azeda, the company which owns the Irish Pride and Pat the Baker bread brands, is to be acquired by Mayfair Equity Partners-backed Ceres Group, The Sunday Times reported, citing sources with close links to the situation.

Source: Mergermarket

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Wakefern Food Corp. purchases Di Bruno Bros.

• Wakefern Food Corp. has acquired Di Bruno Bros., a Philadelphia-based maker of specialty products, including crackers, cheeses and cured meats.

Source: Meat + Poultry

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Indo~European Foods (Corridor Capital) acquired by Ziyad Brothers (Peak Rock).

• Indo~European Foods, a value-added distributor of ethnic, specialty food products and a portfolio company of Corridor Capital, to Ziyad Brothers, a provider of Middle Eastern and Mediterranean products and a portfolio company of Peak Rock Capital.

Source: Mergermarket

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Day-Lee Foods to grow market share with new acquisition.

• Day-Lee Foods Inc., a subsidiary of NH Foods Ltd. and member of the Nipponham Group, announced the acquisition of B and D Foods, Mountain View Packaging and Tamarack Foods.

Source: Meat + Poultry

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MBC Companies (Entrepreneurial Equity Partners) acquires Nardone Brothers Baking.

• MBC Companies, a diversified frozen breakfast company, announced the acquisition of Nardone Brothers Baking Co., a leading manufacturer of frozen pizza products serving the K-12, private label retail, and broader foodservice channels.

Source: Mergermarket

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Wellful (Kainos Capital) acquires Ancient Nutrition.

• Wellful, Inc. a premier omni-channel health and wellness platform and a Kainos Capital portfolio company, today announced the acquisition of Ancient Nutrition from VMG Partners, Hillhouse Investment and other unit holders.

Source: Mergermarket

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Wonder bread owner buys Simple Mills for $795M.

• Wonder bread manufacturer Flowers Foods is buying better-for-you snacks maker Simple Mills for $795 million. The purchase of Simple Mills will improve the bread maker’s growth prospects and diversify its portfolio with the addition of crackers, cookies, snack bars and baking mixes.

Source: Food Dive

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US beef, pork November numbers continue solid export trends from 2024.

• US beef and pork exports showed significant growth in November 2024, with beef exports increasing by 10% in volume and 11% in value, reaching $872.7 million, and pork exports rising 5% in volume and 6% in value, totaling $783 million.
• Strong demand for US meat exports was seen in key markets like South Korea, Mexico, and Egypt, with notable gains in beef and pork muscle cuts, despite challenges such as economic headwinds in Asia and political turmoil in South Korea.
• The USDA transitioned to electronic export certificates for Mexico in November, causing temporary shipment delays but no long-term impact on the growing export volumes, which are expected to exceed 3 million tonnes in 2024.

Source: Meat + Poultry

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8 grocery industry trends to watch in 2025.

• Traditional grocery chains face increasing competition from mass retailers like Walmart and Amazon, emphasizing the need to refine pricing strategies, promotions, and personalization technology to retain customers.
• Consumers are prioritizing value and affordability due to persistently high food prices, resulting in changes in buying behavior and greater reliance on discounters.
• Retailers are leveraging advancements in AI and data management to enhance personalization, optimize pricing, and streamline operations, with technologies like electronic shelf labels and generative AI gaining traction.

Source: Grocery Dive

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6 food and beverage trends to watch in 2025.

• The increasing adoption of GLP-1 medications is reshaping consumer behavior, driving demand for high-protein, fiber-rich, and low-sugar foods, with companies like Nestlé and Conagra creating product lines targeted at these users.
• Artificial intelligence is becoming a critical tool for food and beverage companies, enabling data-driven insights for product innovation, packaging design, and efficient supply chain management, as seen with companies like Coca-Cola and Unilever.
• Limited-time offerings and co-branded products are gaining popularity, leveraging scarcity and unique collaborations to capture consumer attention and drive sales, exemplified by partnerships like Campbell’s V8 and Grillo’s Pickles.

Source: Food Dive

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UNFI restructures wholesale business.

• United Natural Foods, Inc. is restructuring its wholesale business into two divisions, focusing separately on conventional grocery products and natural, organic, specialty, and fresh products, as part of a multi-year profitability strategy.
• The reorganization includes role shifts and job eliminations, with dedicated sales teams supported by experts in merchandising, operations, and supplier services to provide tailored solutions for customers and suppliers.
• Despite a 4% year-over-year net sales increase, UNFI reported a $21 million net loss for the recent quarter, prompting ongoing operational streamlining efforts, including job cuts and headquarters relocation.

Source: Grocery Dive

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Organic ingredients important to watch for 2025.

• The organic market faced declining demand and ample supplies in 2024, with downward price pressure expected to continue into 2025 due to increased production and imports of key commodities like soybeans, corn, and wheat.
• US organic corn production is forecasted to rise 8% due to better moisture conditions and increased acreage, while organic wheat production is expected to reach record highs as yields recover across major growing regions.
• Opportunities for organic growth are highlighted in foodservice sectors like fast-casual restaurants and university campuses, driven by younger demographics prioritizing sustainability and environmental health.

Source: Meat + Poultry

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December's Top 10 stories.

• Tyson Foods plans to lay off hundreds of workers and close its Emporia, Kansas, facility by February 2025 as part of ongoing operational changes.
• Butterball will shutter a further processing plant, impacting 180 employees, while Dean Sausage Co. faces $103,000 in OSHA penalties for repeated worker safety violations.
• The FSIS is launching new initiatives within 30 days to combat Listeria, aligning with growing concerns over food safety highlighted by legal and regulatory developments in the meat industry.

Source: Meat + Poultry

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End of the year hog inventory up from 2023.

• The US hog inventory reached 75.8 million as of December 1, 2024, a 1% increase from the previous year, with 69.8 million classified as market hogs and 6 million reserved for breeding.
• Between September and November 2024, 35.2 million pigs were weaned, marking a 2% year-over-year rise, with an average of 11.92 pigs per litter reported during this period.
• Iowa remains the leading state for hog inventory with 24.6 million head, followed by Minnesota at 9.5 million and North Carolina at 8.2 million.

Source: Meat + Poultry

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Circana highlights continued growth in Hispanic shoppers throughout retail.

• Hispanic shoppers are driving significant growth in the CPG market, with food and beverage dollar sales increasing 3.5% year-over-year compared to 2.6% among non-Hispanic shoppers, and unit sales rising 1.7% versus a 0.3% decline for non-Hispanics.
• Hispanic consumers are overrepresented in retail segments such as ethnic foods, refrigerated meat, and beverages, while underrepresented in frozen fruits, snacks, and condiments, signaling areas for potential product innovation.
• Brands and retailers are advised to align offerings with Hispanic values, such as natural and sustainable products, and develop Hispanic-focused concepts, exemplified by Kroger's Mercado private label brand featuring over 50 items tailored to authentic Latin American cuisine.

Source: Meat + Poultry

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JBS Prepared Foods highlights automation at new Italian meats plant.

• JBS Prepared Foods launched a state-of-the-art, 325,000-square-foot Italian meats plant in Columbia, Missouri, with $200 million invested in automation and infrastructure, enabling efficient production of premium charcuterie-style products like salami, prosciutto, and pepperoni.
• The facility incorporates advanced technologies, including automated guided vehicles (AGVs) for product movement, precise climate-controlled drying rooms, and high-speed slicing lines, with a capacity to scale production to meet future demand for up to 50 million lbs annually.
• The plant reflects JBS’s commitment to blending Old-World techniques with modern processes, supported by substantial community investments such as Net Zero 2040 initiatives, education programs, and local infrastructure projects.

Source: Meat + Poultry

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Mondelēz partners with AWS to accelerate digital transformation.

• Mondelēz International has partnered with Amazon Web Services (AWS) as its primary cloud computing provider to enhance digital transformation, improve security, and increase agility and cost efficiency in operations.
• The collaboration accelerates Mondelēz's transition to the SAP RISE ERP platform, backed by a $1.2 billion investment over five years to modernize its global ERP and supply chain systems, with implementation supported by Accenture and o9 Solutions.
• The AWS partnership aligns with Mondelēz’s focus on automation, AI, and sustainability, leveraging renewable energy and energy-efficient data centers to drive innovation and strategic growth.

Source: Meat + Poultry

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Food experts share ingredient and flavor trends.

• Bold flavors like umami and spicier profiles are expected to dominate food innovation in 2025, with a rise in products explicitly labeled as "umami" and an extension of spicy flavors beyond snacks.
• Nostalgia-driven flavors such as peanut butter and jelly, bubblegum, and maple-soaked pancake are resurging, while Gen Z’s adventurous taste preferences encourage unique, Instagram-worthy flavor combinations.
• Fusion foods and experimental textures like mochi are gaining popularity, as well as highbrow-lowbrow concepts like truffle oil snacks and hybrid desserts like espresso martini-filled macarons.

Source: Food Dive

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Mondelēz brings Chips Ahoy! further outside of cookies with Baked Bites.

• Mondelēz International has introduced Chips Ahoy! Baked Bites, a new chewy, square-shaped treat available in Blondie flavor, marking the brand's further expansion beyond traditional cookies to cater to on-the-go and at-home snacking.
• Chips Ahoy! has been diversifying its offerings with innovations like muffins, cereal, gluten-free cookies, and revamped recipes, aiming to transform the 62-year-old brand into a leading sweet-snacking name with broad consumer appeal.
• Popular among Gen Z for its indulgent appeal, Chips Ahoy! continues to explore new formats and flavor innovations, leveraging its strong market share in the chocolate chip cookie segment and the "chocolate equity" of the brand.

Source: Food Dive

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Bird flu mutation discovered in severe human case.

• The CDC reported a mutation of the H5N1 bird flu virus in a severe human case in Louisiana, the first such case in the United States, raising concerns about its ability to bind to human upper respiratory tract receptors.
• Despite the mutation potentially enabling easier transmission through human airways, the CDC emphasized that no evidence of person-to-person transmission has been detected.
• The mutation likely occurred during viral replication in the patient, and while concerning, the CDC stated the risk to the general public remains low at this time.

Source: Meat + Poultry

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North Carolina officials discover HPAI in commercial layers.

• Over 2.7 million commercial laying hens in Hyde County, North Carolina, were affected by a confirmed case of highly pathogenic avian influenza (HPAI) on Jan. 7, marking the first commercial poultry case in the state since February 2024.
• North Carolina has now reported HPAI in 11 commercial and 8 backyard flocks since 2022, with state veterinarian Mike Martin urging heightened biosecurity due to the virus's persistence in wild bird populations.
• The USDA’s Animal and Plant Health Inspection Service also reported an HPAI outbreak in a commercial turkey flock in Jay County, Indiana, affecting 19,900 birds, reflecting the continued spread of the disease across the U.S. poultry industry.

Source: Meat + Poultry

JUST FOR FUN

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• The Dill of a Lifetime? in a nation that’s enduring its own sour patch, the pickle dominated 2024 — U.S. News

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