October 17, 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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Starboard Value takes stake in Keurig Dr Pepper – report.

• Activist investor Starboard Value has purchased a share in Keurig Dr Pepper as it pursues a EUR 15.7bn takeover of European beverage company JDE Peet’s, FT.com reported.

Source: Mergermarket

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Chobani raises USD 650m in equity capital.

• Chobani, a next-generation food and beverage company, today announced it has raised $650 million equity capital to support its continued growth.

Source: Mergermarket

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Shoreline shelves sale of Engelman’s Bakery

• Shoreline Equity Partners has pulled the sale process for Engelman’s Bakery at the final bids stage, according to two sources familiar with the situation.

Source: Mergermarket

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Insignia to collect second round of bids for Tillamook Country Smoker.

• Insignia Capital Group is collecting a second round of bids for its portfolio company, Tillamook Country Smoker, imminently, according to two sources familiar with the situation.

Source: Mergermarket

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BUILT Brands eyes sale with over USD 1bn valuation – report.

• BUILT Brands co-founder and CEO Nick Greer is considering a sale, potentially valuing the Utah-based business at over USD 1bn, a newswire reported.

Source: Mergermarket

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Peak Rock set to launch Turkey Hill sale process.

• Peak Rock Capital is set to launch a sale process for its beverages and frozen desserts maker Turkey Hill Dairy imminently, according to two sources familiar with the situation. 

Source: Mergermarket

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New Water pulls sale of Klosterman Baking Company.

• New Water Capital pulled the sale process for Klosterman Baking Company during the late stages of the second round, according to two sources familiar with the situation.

Source: Mergermarket

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Red Arts Capital acquires Forestwood Farm.

• Red Arts Capital, a leading investment firm specializing in supply chain-related and logistics businesses, today announced its acquisition of Forestwood Farm, a premier, family-owned produce distributor based in Birmingham, Alabama. 

Source: Mergermarket

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Food recalls are on the rise. What happens to the waste?

• FDA and USDA oversaw 294 recalls in H1 2025, with the FDA ordering ~85M units destroyed in H1 2024 and USDA recalls affecting ~1.5M lbs of food — much of which ends up in landfills or incinerated.
• Alternatives like composting, anaerobic digestion, animal feed, depackaging, or relabel/rework exist, but liability, cost, and patchwork regulations make companies default to disposal.
• Some groups like Misfits Market are capturing value by upcycling or redistributing off-spec items, having saved 14M+ lbs of food in 2025, but recall-related waste remains a significant contributor to U.S. food loss.

Source: Food Dive

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California becomes first state to ban ultraprocessed foods in schools.

• California became the first U.S. state to legally define and ban ultraprocessed foods in schools, with restrictions on items high in saturated fat, sodium, sugar, additives, or sweeteners; the ban phases in by 2035.
• The law is part of the broader “Make America Healthy Again” movement, joining 20+ states considering ingredient bans, and could serve as a blueprint for national regulation as the FDA works on its own definition.
• While praised for promoting children’s health, the mandate may significantly raise costs for schools (new kitchens, storage, higher food expenses) and poses challenges since even items like yogurt, tofu, gluten-free foods, and infant formula may qualify as ultraprocessed under some definitions.

Source: Food Dive

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CoBank examines ongoing uncertainty in meat markets, the US economy.

• CoBank’s latest quarterly report sees the Fed likely cutting rates 4–5 times through 2026 (25bps each), taking the overnight rate near 3%, but notes mixed signals from inflation, tariffs, immigration, AI investment, and political gridlock.
• Protein sector dynamics: Beef demand remains strong (retail ground beef sales up 13% YoY in August to $1.7B) despite high cattle costs squeezing packers; pork margins reached $52.58/head (highest since mid-2021), with producers profitable for 17 straight months; broiler volumes remain elevated, offering consumers value, though softening white meat prices may pressure margins into 2026.
• Dairy-beef link: Record-high dairy herd size supports beef-on-dairy calf revenues (boosted from $1 to $4/cwt since 2021), while surging butterfat output has pushed milk futures lower. CoBank warns of macro risks from a government shutdown, tariffs, and slowing consumer income growth (down to ~2% real growth from 4% in 2024), which could weigh on exports despite a weaker dollar.

Source: Meat + Poultry

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Mondelēz-backed startup reaches breakthrough for lab-grown chocolate.

• Celleste Bio, backed by Mondelēz, has developed the first lab-grown cocoa butter, bio-identical to bean-derived cocoa butter in texture and flavor; the startup has raised $15M and is building a pilot facility to scale production.
• The breakthrough comes amid volatile cocoa markets — prices hit records in 2024 before easing, but long-term risks from climate change, crop disease, and aging trees persist, pushing chocolate makers to seek alternatives.
• Cocoa butter, the most expensive and resource-intensive chocolate ingredient (≈$8B of the $16B spent annually on cocoa), is a prime target for substitution; Celleste positions its technology as an “insurance policy” for manufacturers, more sustainable than wheat/soy cocoa replacers and potentially transformative for sweets companies.

Source: Food Dive

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Albertsons eyes 30% private label penetration.

• Albertsons aims to lift private label penetration to 30% of sales, up from ~25%, as part of its strategy to capture value-conscious shoppers and strengthen profitability.
• CEO Susan Morris highlighted unit growth in own-brand sales driven by new product introductions, competitive pricing, loyalty initiatives, and personalized promotions, while maintaining vendor funding support.
• Private label expansion is also improving margins and customer loyalty, with growth in fresh meat, produce, and healthier options reinforcing Albertsons’ competitive positioning in a pressured consumer spending environment.

Source: Food Dive

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The Magnum Ice Cream Company prepares for a ‘new frontier’ after Unilever spin-off.

• Unilever is spinning off its ice cream unit into The Magnum Ice Cream Company, to be listed in Amsterdam, London, and New York by late 2025, with Unilever retaining <20% initially.
• The new standalone company is targeting 3–5% annual organic growth and pursuing cost savings through streamlined supply chain and overhead reductions to strengthen competitiveness in the $88B global ice cream market.
• Tensions have emerged around Ben & Jerry’s, with its founders calling for independence over concerns the brand’s social mission could be diluted under the new corporate structure.

Source: Food Dive

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Logan Paul’s Prime sues Más+ claiming Lionel Messi did not create the sports drink.

• Logan Paul’s Prime Hydration is suing Más+ by Messi and Lionel Messi himself, alleging the brand falsely markets Messi as a founder when the product was actually developed by parent company Mark Anthony Group (owner of White Claw, Mike’s Hard Lemonade).
• Prime claims Más+ “copied its blueprint” for a celebrity-led hydration drink and that Messi’s supposed founder status misled consumers, costing Prime U.S. retail space and sales; it is seeking a jury trial and damages for lost profits.
• The lawsuit escalates an ongoing feud between the two brands — Mark Anthony Group had previously sued Prime over social media campaigns alleging the products looked too similar — against the backdrop of a rapidly growing $74B global electrolyte drinks market.

Source: Food Dive

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Liquid Death swipes PepsiCo alum for CFO in growth push.

• Liquid Death appointed Ricky Khetarpaul (ex-Health-Ade CFO, PepsiCo alum) as its new CFO to support expansion into new categories, notably a “better-for-you” energy drink line launching in 2026.
• The brand, valued at $1.4B after a $67M raise last year, reported $333M in 2024 retail sales and is leveraging its irreverent, entertainment-first marketing to sustain rapid growth across water, sparkling sodas, and iced teas.
• Growth push comes alongside legal disputes: rival Death Wish Coffee has sued over trademark infringement, alleging confusion with Liquid Death’s potential coffee products, even as the company denies plans to launch RTD coffee in the near term.

Source: Food Dive

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PepsiCo taps into protein boom with 3 beverage innovations.

• PepsiCo will launch new protein-focused beverages across Propel, Muscle Milk, and Starbucks Coffee in early 2026, designed to deliver health benefits beyond just protein grams.
• Propel Clear Protein (with electrolytes + fiber) targets functional hydration and GLP-1 users; Muscle Milk will be reformulated as a smoother, shake-like meal alternative with no artificial sweeteners/colors; Starbucks Coffee RTDs will be enhanced with protein, fiber, and added nutrients.
• The strategy reflects PepsiCo’s push into better-for-you beverages, with protein positioned as a multiyear growth driver and key differentiator in a crowded functional drinks market.

Source: Food Dive

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JBS breaks ground on Iowa sausage plant.

• JBS USA broke ground on a new $135M sausage production facility in Perry, Iowa, expected to produce 130M lbs annually; the site will start with one shift (250 employees) and expand to two shifts (500 employees).
• The project includes a $10M TIF rebate approved by the Perry city council and will extend JBS’s Hometown Strong and Better Futures programs (local investments, free community college tuition for employees and children).
• This adds to JBS’s broader Iowa expansion, including the recent $100M Ankeny prepared foods investment (RTE bacon & sausage facility, formerly Hy-Vee), complementing existing JBS plants in Council Bluffs, Marshalltown, and Ottumwa — and filling the gap left by Tyson’s 2024 Perry pork plant closure.

Source: Meat + Poultry

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Old Trapper provides latest jerky options at NACS.

• Old Trapper highlighted its new 1.8 oz Single Serve Jerky at the 2025 NACS Show, positioned as a convenient high-protein snack (11g protein) for on-the-go use, available in Old Fashioned, Teriyaki, Peppered, and Hot & Spicy flavors.
• The brand showcased its full product lineup — signature jerky in larger 10-oz and 15-oz bags, beef sticks, and snack-size packs — emphasizing bold flavors, lean beef cuts, and innovative packaging formats.
• Old Trapper used NACS to reinforce its reputation as a trusted meat snacks leader, stressing convenience, quality, and value as growth drivers in the competitive high-protein snacking market.

Source: Meat + Poultry

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Archer opens new meat snack manufacturing plant near Los Angeles.

• Archer opened a new 140,000-sq.-ft. meat snack facility in Vernon, CA, adding 200+ jobs and boosting processing capacity to 36M lbs of meat sticks annually (≈1B Mini Sticks).
• The plant, located just outside downtown Los Angeles, allows Archer to expand quickly while maintaining tight control over quality and clean-ingredient standards.
• With this expansion, Archer expects to surpass $500M in sales by end of 2026, fueled by surging demand (90% YoY sales growth), complementing its existing San Bernardino facility with 150 employees.

Source: Meat + Poultry

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Nestlé cutting 16,000 jobs to accelerate turnaround.

• Nestlé will cut 16,000 jobs (≈6% of global workforce) over two years, with 12,000 from corporate roles and 4,000 from manufacturing/supply chain, as part of CEO Philipp Navratil’s plan to accelerate cost savings of CHF 3B ($3.8B) by 2027.
• Navratil is pursuing a leaner, more agile operating model, emphasizing automation, stricter performance KPIs, and a “ruthless” talent review, while doubling down on marketing and brand investment to regain share.
• Portfolio review underway: Nestlé is evaluating divestitures of vitamin brands and its water business, aiming to simplify operations and respond faster to consumer shifts, amid inflation, tariffs, and higher coffee/cocoa costs.

Source: Food Dive

JUST FOR FUN

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Frigo Cheese Heads introduces two new flavors – Dairy Foods

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