February 14, 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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Ferrero in early stages of weighing offer for WK Kellogg – sources.

• Ferrero, the family-backed producer of confectionary brands such as Nutella, is in the early stages of weighing an offer for Michigan, US-based WK Kellogg [NYSE:KLG], according to sources familiar with the matter.  

Source: Mergermarket

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Solina (Astorg) acquires Sokol Custom Food Ingredients.

• Solina, a leader in the global food industry specializing in savoury food solutions, has acquired U.S. based Sokol Custom Food Ingredients, further expanding its presence in North America. This is on the heels of Solina's December 2024 acquisition of Advanced Food Systems Inc, as the company continues to take a leading role in the region's food industry.  

Source: Mergermarket

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Unilever to list ice cream business in Amsterdam, London, New York.

• Unilever [LON:ULVR] will list its ice cream division on the stock exchanges in Amsterdam, London and New York, the company announced in a press release about its 2024 results.  

Source: Mergermarket

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Conagra Brands’ sale of Chef Boyardee advances, sources say.

• Conagra Brands' [NYSE:CAG] sale of its canned pasta brand Chef Boyardee is in the advanced stages of the second round, four sources familiar with the situation said. 

Source: Mergermarket

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E2P collecting final bids for World Food Holdings, sources say.

• Food-focused sponsor E2P was set to collect final bids for its portfolio company World Food Holdings this week, two sources familiar with the situation said.

Source: Mergermarket

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Olipop raises USD 50m at USD 1.85bn valuation.

• Soda company Olipop has reached a valuation of USD 1.85bn in a USD 50m funding round, a newswire reported. 

Source: Mergermarket

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Rubix Foods launches sale process, sources say.

• Rubix Foods, a culinary and food science-focused provider of flavors and ingredients for restaurants and manufacturers, has launched its sale process, three sources familiar with the situation said.

Source: Mergermarket

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Tillamook Country Smoker set to explore new sale process, sources say.

• Tillamook Country Smoker, a sponsor-backed meat snacks maker, is coming back to market after exploring a sale in 2023, according to four sources familiar with the situation.

Source: Mergermarket

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Fulcrum Capital Partners invests in Sunco Foods.

• Fulcrum Capital Partners, a leading Canadian private equity firm focused on the mid-market, is pleased to announce its investment in Sunco Foods, a leading manufacturer of nut-based butters, snacks, and value-add food ingredients. The Company also imports, processes and distributes organic and naturally sourced nuts, seeds, dried fruits, grains and legumes.

Source: Mergermarket

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OSI Group makes latest acquisition.

• Food processor OSI Group LLC looks to acquire Karnova Food Group, a protein ingredients supplier, according to private equity firm Endless LLP. 

Source: Meat & Poultry

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CenSea acquires Ocean Garden Products.

• We’re excited to announce that CenSea, now part of the Captain Fresh group, has acquired the premium seafood brand portfolio of Ocean Garden Products. 

Source: Mergermarket

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Everton acquires Eastern Tea (translated).

• Everton, the Italian tea company controlled by private equity firm Clessidra, has acquired Eastern Tea, a private label US tea producer, Italian-language business news portal Teleborsa reported citing Rebecka Swenson, Managing Director at Clessidra.

Source: Mergermarket

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80 Acres Farms secures USD 115m in funding, acquires Plantae Biosciences.

• 80 Acres Farms announced capital raises totaling $115 million and the acquisition of Plantae Biosciences, an Israeli biotechnology company. 

Source: Mergermarket

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J&J Snack Foods holds ample M&A funds post USD 50m share repurchase authorisation – CEO.

• J&J Snack Foods Corp., a Mount Laurel, New Jersey-headquartered snack foods provider to foodservice and retail supermarket outlets, has ample funding for potential acquisitions despite authorising a new USD 50m stock repurchase plan, CEO Dan Fachner said.

Source: Mergermarket

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Record year for U.S. pork exports in volume, value.

• U.S. pork exports hit a record high in 2024, reaching 3.03 million tonnes (+4%) and $8.63 billion (+6%), with growth driven by Mexico, Central America, and the Asia-Pacific.
• Beef exports saw a 0.5% decline in volume but a 5% increase in value to $10.45 billion, as higher prices and strong demand in Mexico and emerging markets helped offset economic challenges in Asia.
• Lamb exports grew 16% in volume and 14% in value, with Mexico and the Caribbean leading demand, while market diversification efforts expanded U.S. beef and pork sales to new regions.

Source: Meat + Poultry

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Seminar forecasts 2025 cattle industry outlook.

• CattleCon 2025's CattleFax Outlook Seminar projected a strong market for the U.S. beef industry, driven by tight cattle supplies and continued consumer demand, with retail beef prices expected to rise to $8.25/lb in 2025.
• Economic and weather factors will impact herd expansion, with La Niña bringing drought risks to the Western U.S. and Mexico, while inflation easing to 2.9% in 2024 may support stable consumer demand for beef.
• U.S. beef exports are expected to decline by 5% due to reduced production and higher prices, while imports are projected to increase, highlighting global trade uncertainties and potential tariff risks.

Source: Meat + Poultry

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RaboResearch: How global poultry trade was shaped in recent years.

• RaboResearch’s World Poultry Map highlights Brazil’s dominance in global poultry trade, capturing 90% of market growth, while the U.S. and EU have seen reductions.
• The poultry trade has faced challenges from COVID-19, avian flu, geopolitical tensions, and high production costs, leading to slow growth and price volatility.
• Future market shifts may see continued expansion from Brazil, Thailand, and China, with emerging players like Paraguay, Vietnam, Colombia, and South Africa gaining presence.

Source: Meat + Poultry

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Trade groups urge HHS to include meat, poultry in 2025 dietary guidelines.

• Several meat and poultry trade groups criticized the 2025 Dietary Guidelines Advisory Committee’s report, which recommends replacing red meat with plant-based proteins, citing potential nutrient deficiencies for vulnerable populations.
• The National Chicken Council (NCC) and Meat Institute argued that lean meats like chicken and nutrient-dense red meats should be recognized for their bioavailability, affordability, and role in federal nutrition programs like SNAP and WIC.
• The Meat Institute and National Pork Producers Council (NPPC) urged HHS and USDA to provide balanced dietary guidance, warning that excluding meat from recommendations could lead to public misconceptions and unintended health consequences.

Source: Meat + Poultry

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Food industry pledges to work with RFK Jr following confirmation as health secretary.

• Robert F. Kennedy Jr. was confirmed as U.S. Health Secretary in a 52-48 Senate vote, pledging to address chronic disease and over-processed foods under the “Make America Healthy Again” movement.
• Kennedy plans to scrutinize food additives, align ingredient standards with European regulations, and reform the FDA’s approach to food safety by challenging its “generally recognized as safe” standard.
• The food industry, represented by the Consumer Brands Association, expressed willingness to collaborate with Kennedy and HHS on public health initiatives while maintaining consumer trust and choice.

Source: Food Dive

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More ‘shrinkflation’? How Trump tariffs could reverberate through the food industry.

• The food industry is bracing for the impact of new tariffs under President Trump, with companies expected to respond through price increases, ingredient substitutions, or “shrinkflation.”
• Tariffs on steel, aluminum, and key agricultural imports from Canada and Mexico could raise costs for packaging and essential ingredients, affecting products like canned goods, beverages, and fresh produce.
• While some companies may adjust their supply chains, businesses reliant on fresh imports, such as fruits and vegetables, have fewer options and are likely to pass higher costs directly to consumers.

Source: Food Dive

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Brooke Rollins confirmed as the 33rd secretary of agriculture.

• Brooke Rollins was confirmed as the 33rd Secretary of Agriculture with a 72-28 Senate vote, bringing experience from legal, policy, and think tank roles.
• Meat and poultry industry leaders expressed strong support, anticipating collaboration on dietary guidelines, Proposition 12, and regulatory challenges.
• Rollins committed to addressing agricultural issues, including avian flu policies, export growth, and easing regulatory burdens on meat producers.

Source: Meat + Poultry

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Congressmen seek to ban USDA’s proposed Salmonella framework.

• Representatives Tracey Mann and Steve Womack introduced legislation to block the USDA’s proposed Salmonella framework, arguing it imposes unnecessary burdens on poultry producers.
• The framework aims to lower Salmonella levels in raw poultry, but critics point to USDA data showing a 60% decline in outbreaks since 2020 and high compliance rates in whole chickens.
• Supporters of the bill, including the National Chicken Council, argue that the rule could increase consumer costs and put poultry businesses at risk.

Source: Meat & Poultry

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Nestlé largely ‘immune’ to tariff impact, CEO says.

• Nestlé CEO Laurent Freixe stated the company is largely "immune" to tariff impacts due to its localized manufacturing model, with 90% of U.S. sales coming from domestic production.
• While monitoring potential trade policy changes, Nestlé CFO Anna Manz noted that new tariffs could accelerate inflation, but the company has mechanisms like pricing adjustments and sourcing changes to mitigate risks.
• Nestlé plans further price increases for cocoa and coffee products amid record-high commodity costs, while also investing in product improvements to regain consumer demand in struggling categories like frozen foods.

Source: Food Dive

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Coca-Cola could use more plastic bottles in response to Trump tariffs.

• Coca-Cola is considering shifting more of its packaging to plastic bottles in response to 25% tariffs on aluminum and steel imports, which could increase production costs for aluminum cans.
• CEO James Quincey emphasized that while the tariff impact is significant, it won’t drastically disrupt Coca-Cola’s U.S. business, as the company has packaging alternatives like PET bottles and returnable glass bottles to manage costs.
• The company is also expanding its returnable glass bottle (RGB) strategy, which has seen rapid adoption in Latin America, Germany, South Africa, and Vietnam, helping to reduce costs and enhance sustainability efforts.

Source: Food Dive

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Post Holdings sees cereal demand dip as Gen Z seeks healthier breakfasts.

• Post Holdings reported a 2.3% decline in cereal sales, attributing the drop to shifting consumer preferences, particularly among Gen Z, who are favoring protein-rich alternatives like yogurt and overnight oats.
• Smaller, health-focused cereal brands are gaining market share, offering innovative, premium products, while large manufacturers like Post and Kellogg struggle with flexibility and production costs for niche offerings.
• To counter declining demand, Post is leaning into premium cereals and product innovations, including its recent chocolate-flavored Honey Bunches of Oats, while overall net sales rose 0.4% to $2 billion.

Source: Food Dive

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Wonder bread owner Flowers Foods positioned to weather GLP-1 uncertainty, CEO says.

• Flowers Foods is shifting its portfolio toward premium, organic, gluten-free, and keto-friendly products as demand for traditional white and wheat bread declines due to health trends and GLP-1 drug adoption.
• The company recently acquired Simple Mills for $795 million, diversifying into better-for-you snacks, including crackers, cookies, and baking mixes, to align with evolving consumer preferences.
• CEO Ryals McMullian emphasized that while GLP-1 drugs initially reduce food spending, long-term trends suggest consumers return to center-store items, positioning Dave’s Killer Bread and premium brands for continued growth.

Source: Food Dive

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Boar’s Head holds 'Food Safety Promise Day'.

• Boar’s Head paused operations for "Food Safety Promise Day," reinforcing its commitment to enhanced food safety protocols after the 2024 Listeria outbreak.
• New measures include high-pressure pasteurization, increased Listeria testing, stricter sanitation protocols, and the adoption of USDA Alternative 2 Listeria control requirements.
• The company shut down its Jarratt, Va., plant in 2024 following an outbreak that led to 10 deaths and 60 hospitalizations, prompting an overhaul of food safety practices and the formation of a dedicated food safety council.

Source: Meat + Poultry

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Mondelēz, Hershey pressured by a prolonged spike in cocoa prices.

• Cocoa prices have more than doubled since late 2023, causing significant cost pressure on major chocolate companies like Mondelēz and Hershey, with Mondelēz expecting a 10% earnings hit in 2025.
• Supply constraints from weather and disease in key cocoa-growing regions have tightened the market, while demand for chocolate remains strong, keeping prices elevated.
• Companies are investing in alternative cocoa sources, including cell-cultured cocoa and diversified supply chains, as they explore pricing strategies and potential product reformulations.

Source: Food Dive

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Dr Pepper launches Blackberry flavor.

• Dr Pepper introduced a new Blackberry flavor, marking its first permanent flavor extension since Strawberries & Cream in 2023, amid rising demand for blackberry-flavored sodas.
• The brand has maintained eight consecutive years of dollar share growth, surpassing Pepsi as the No. 2 carbonated soft drink in the U.S. and continues to focus on flavor innovation and consumer engagement.
• Keurig Dr Pepper also announced new flavor extensions for 7UP, A&W, and RC Cola, following similar nostalgic and fruit-infused trends seen in Coca-Cola and Pepsi’s recent product launches.

Source: Food Dive

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Egg shortage leads to panic buying.

• Egg prices have surged by over 187% due to a severe shortage caused by avian influenza (HPAI), which has wiped out more than 100 million egg-laying hens since 2022.
• Restaurants and grocers are struggling to manage supply constraints, with businesses like Waffle House adding surcharges and retailers limiting consumer purchases to control panic buying.
• Demand remains high, driven in part by GLP-1 medication users shifting toward higher-protein diets, while plant-based egg alternatives are also seeing increased interest.

Source: Meat + Poultry

JUST FOR FUN

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Leftovers: Pringles aims to score with Miller Lite Beer Can Chicken flavor | Harry Potter inspires latest Keebler cookies – Food Dive

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