January 24, 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.

Have a nice weekend!

Glen Clarke

Head of Food & Beverage

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Smithfield Foods IPO is a go.

• American pork processor Smithfield Foods Inc. has announced the commencement for an underwritten initial public offering (IPO) of 34,800,000 shares of its common stock. The expected pricing is between $23 and $27 per share. 

Source: Meat + Poultry

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Fresh Direct Produce Group sells Mike & Mike’s.

• The Fresh Direct Produce Group, a leader in the distribution of ethnic, organic, and conventional produce, has come to an agreement to sell Mike & Mike’s, an organic fruits and vegetables distributor based in Vaughan, Ontario, to Mike Fronte, one of the company’s original founders.

Source: Produce Bluebook

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French company acquires Advanced Food Systems.

• Solina, a France-based company that specializes in savory food solutions, has acquired Somerset, NJ-based Advanced Food Systems Inc. Financial terms of the acquisition were not disclosed. Solina is a part of Astorg, an independent private equity firm that is Solina’s majority shareholder.

Source: Meat + Poultry

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High Liner Foods aims to acquire in 2025.

• High Liner Foods, a Nova Scotia-headquartered frozen seafood processor, aims to acquire in 2025, according to Intrafish. The item cited the company’s Chief Executive Paul Jewer who said acquisitions will be in focus for 2025.

Source: Mergermarket

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Private label sales hit record $271B in 2024.

• Private label sales reached a record $271 billion in 2024, up 3.9% from 2023, surpassing national brand growth, which was only 1% year over year.
• Growth was particularly strong in refrigerated items, general food, and beverages, with refrigerated items seeing a 7.5% increase.
• Retailers like Walmart, Amazon, and Kroger contributed to this surge with new private label launches, reinforcing the growing consumer demand for store brands.

Source: Food Dive

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Packaging materials didn’t cause Walmart broth recall, says TreeHouse Foods.

• TreeHouse Foods clarified that a recent Walmart Great Value chicken broth recall was due to an internal procedural error, not packaging materials, which were supplied by Tetra Pak.
• The recall involved over 12,000 cartons of broth, with concerns that packaging failures could compromise the product's sterility, leading to potential spoilage.
• Despite the recall, the FDA classified the issue as "unclassified," suggesting a low-risk situation, with TreeHouse emphasizing that such production deviations are not uncommon and have been addressed.

Source: Food Dive

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The changing habits of value-driven shoppers.

• 88% of consumers are frustrated with rising prices, especially on food, beverages, and essential household items.
• Shoppers are using strategies like stocking up during sales, switching to cheaper brands, and relying on coupons to manage their budgets.
• Consumers are looking for convenience, fun shopping experiences, and personalized deals, with 59% preferring retailers that understand their buying habits.

Source: Food Dive

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Global animal protein outlook: Beef to contract, poultry drives significant growth.

• The global animal protein market is shifting in 2025, with beef expected to contract, while poultry and seafood are set to see growth, with seafood leading the charge.
• Regional production trends indicate that beef will decline in North America and Europe, but poultry production will continue to rise, and pork is projected to grow slightly in most regions.
• Factors like government policies, inflation, and animal diseases will impact demand and supply, with sustainability concerns also shaping the market’s future.

Source: Meat + Poultry

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Danone’s yogurt sales surge among US consumers using GLP-1 drugs.

• Danone's yogurt brands, including Oikos and Too Good & Co., have seen increased sales due to rising demand from consumers using GLP-1 weight-loss medications.
• Yogurt, known for being high in protein and low in sugar, is popular among GLP-1 users for its nutritional benefits and portion-controlled sizes.
• In response, Danone is focusing on direct marketing to GLP-1 users, launching a website with recipes and product suggestions, and expanding its portfolio to cater to this growing consumer base.

Source: Food Dive

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What the future might hold for the meat, poultry industry.

• Broiler production is set to increase by 75 million pounds in 2025, with steady consumption and a slight export rise, while domestic prices remain relatively stable.
• US pork production is forecasted to grow by 2%, with increased exports due to ample supply and competitive pricing, though global production is expected to decline slightly.
• The beef industry faces challenges with a continued decline in herd numbers and heavy cattle weights, delaying herd expansion, but collaboration between academia and the industry continues on food safety and automation advancements.

Source: Meat + Poultry

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Raybern starts breakfast sandwich offering.

• Raybern’s has launched a new egg white and chicken breakfast sandwich, available exclusively at Sam’s Club.
• The sandwich is made with chicken breast, American cheese, and an English muffin, providing 20 grams of protein and 250 calories per serving.
• This product aims to offer a quick, nutritious, and tasty breakfast option for busy consumers, according to the brand's senior manager.

Source: Food Dive

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Spindrift names former Boston Beer head as CEO, sells majority stake to PE firm.

• Spindrift Beverage sold a majority stake to private equity firm Gryphon Investors, marking a significant milestone for the 15-year-old brand.
• The company has seen rapid growth by offering low-sugar, low-calorie sparkling waters made with real fruit ingredients, appealing to health-conscious consumers.
• Former Boston Beer CEO Dave Burwick will take over as Spindrift’s new CEO, replacing founder Bill Creelman, who will assume the role of chairman.

Source: Food Dive

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PSSI rebrands to Fortrex.

• Packers Sanitation Services Inc. (PSSI) has rebranded and will now be known as Fortrex, reflecting its role as a key player in food safety and sanitation.
• The rebranding emphasizes the company's dedication to eliminating contaminants, with the "X" in the new logo symbolizing this commitment.
• Fortrex, which serves industries such as poultry, pork, beef, and seafood, has relocated its headquarters to Atlanta to improve customer service and align with the region's growing poultry industry.

Source: Meat + Poultry

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President Trump’s trade strategy unfolds.

• President Trump did not immediately impose tariffs on trade partners during his second term's first day but threatened new tariffs on Canada and Mexico by February 1.
• His order to review trade relationships with Canada, China, and Mexico alleviated concerns of immediate disruptions, and he has been considering tariffs between 10% and 25%.
• Trump's approach could involve using the International Emergency Powers Act (IEPA), allowing him to implement tariffs rapidly with minimal congressional oversight, or using Sections 301 and 232 for targeted tariffs on countries or specific goods.

Source: Meat + Poultry

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Perdue Farms to shutter Tennessee chicken plant.

• Perdue Farms will close its Monterey, Tennessee chicken plant by March 28, 2025, eliminating 433 jobs.
• The closure is due to changes in market demand and the need for substantial investments to maintain operations at the facility.
• Affected workers will receive severance packages and job placement support, with the company expressing gratitude for their contributions.

Source: Agriculture Dive

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2025 food safety focus.

• USDA and FDA have ramped up their focus on food safety, especially targeting pathogens like Listeria and Salmonella, with new oversight and testing measures for meat and poultry processors in 2025.
• The USDA has implemented a policy declaring Salmonella an adulterant in raw breaded stuffed chicken products, setting a threshold for contamination that would trigger action to stop sales of contaminated products.
• The FDA launched its Human Foods Program in October 2024, centralizing efforts to tackle foodborne illness risks, chemical safety, and nutrition through a more unified, science-based approach.

Source: Meat + Poultry

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Cargill settles turkey price-fixing suit with $32.5 million payment.

• Cargill Inc. has agreed to settle a turkey price-fixing lawsuit with a $32.5 million payment, the second settlement in the ongoing legal action related to price manipulation in the turkey market.
• The settlement follows a similar deal made by Tyson Foods in 2021 for $4.625 million, and together these payments total $37.125 million.
• The settlement includes monetary relief and cooperation from Cargill as the plaintiffs continue their case against other companies still named in the lawsuit, such as Butterball, Hormel Foods, and Foster Farms.

Source: Meat + Poultry

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PepsiCo sued by FTC for allegedly ‘rigging’ soft drink prices.

• The FTC sued PepsiCo for allegedly giving unfair pricing advantages to a large retailer, leading to higher prices for consumers at competing stores, though the retailer's name was not disclosed.
• PepsiCo disputes the allegations, arguing that its pricing practices are standard within the industry and that it does not offer preferential treatment to any retailer.
• The lawsuit, filed under the Robinson-Patman Act, is the FTC’s latest effort to address pricing discrimination, following a similar case with Southern Glazer’s in December 2024.

Source: Food Dive

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$200 million recovered in red meat wage-fixing case.

• A Colorado judge has granted preliminary approval for settlements totaling over $188 million in a class-action wage-fixing lawsuit involving major red meat processors.
• The lawsuit accused 18 processors, including JBS USA, Tyson Foods, Cargill, and Hormel Foods, of conspiring to depress wages for production and maintenance employees.
• The settlements include payments from major companies, with Tyson Foods paying $72.5 million and JBS USA contributing $55 million, bringing the total recovery to over $200 million.

Source: Meat + Poultry

JUST FOR FUN

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• Kansas City Chiefs Nuggets are the latest in Tyson’s themed nugget collection - Meat + Poultry

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