February 21, 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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GrubMarket acquires Bay Cities Produce.

• GrubMarket, the AI-powered technology enabler and digital transformer of the American food supply chain industry, announced it has completed the acquisition of Bay Cities Produce, a trusted foodservice distributor based in San Leandro, California.   

Source: Mergermarket

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Ahimsa acquires Blackbird Foods.

• Ahimsa Companies, a private equity house focusing on the plant-based food industry, has acquired Blackbird Foods, a Long Island City, NY-based producer of plant-based pizza, Just Food reported.

Source: Mergermarket

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Hickman’s Family Farms on the auction block, sources say.

• Hickman’s Family Farms, a family-owned egg producer, has mandated Stephens to explore a sale, according to four sources familiar with the situation. 

Source: Mergermarket

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B&G’s frozen and canned vegetable sale sparks interest of Bonduelle Group – sources.

• B&G Foods is seeing interest from the France-based Bonduelle Group in the advanced stages of the sale process of its frozen and canned vegetable businesses, three sources familiar with the situation said. 

Source: Mergermarket

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Alani Nutrition to be acquired by Celsius.

• Celsius Holdings, Inc. announced that it has entered into a definitive agreement to acquire Alani Nutrition LLC for $1.8 billion including $150 million in tax assets for a net purchase price of $1.65 billion, comprising a mix of cash and stock. 

Source: Mergermarket

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Hillandale Farms in midst of sale process amid egg price surge, sources say.

• Hillandale Farms, a family-owned egg producer based in Pennsylvania has EBITDA of around USD 200m, according to three of the sources, with the other source pegging it closer to USD 100m. 

Source: Mergermarket

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Colgate-Palmolive to acquire Prime100.

• As part of its growth strategy, which includes investing in faster-growing product segments adjacent to its core categories, Colgate-Palmolive Company announced that it has agreed to acquire Care TopCo Pty Ltd, owner of the Prime100 pet food brand.

Source: Mergermarket

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Colabor Group to acquire food distribution assets of Alimplus for USD 51.5m.

• Colabor Group Inc. announces today the signature of an agreement to acquire the food distribution assets of Alimplus Inc., operating under the name Mayrand Plus, and all of the issued and outstanding shares of Tout-Prêt Inc., a subsidiary of Alimplus.

Source: Mergermarket

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Fonterra provides update on Consumer divestment process, trade sale and IPO options considered.

• Fonterra Co-operative Group Ltd has today provided an update on the process to divest its global Consumer business and integrated businesses Fonterra Oceania and Sri Lanka.

Source: Mergermarket

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Wings rising up while chicken category expands.

• Americans were projected to consume 1.47 billion chicken wings during Super Bowl LIX, a 1.5% increase from the previous year.
• Retail wing sales nationwide rose by 12% during the four weeks leading up to January 19, 2025, compared to the prior period.
• Despite decreased chicken production due to avian flu outbreaks, consumer demand for chicken wings remains strong, leading to a slight increase in prices ahead of major sporting events.

Source: Meat + Poultry

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US restaurant industry provides update on foodservice operations.

• The National Restaurant Association projects that the foodservice industry will reach $1.5 trillion in sales in 2025, with traditional restaurant sales surpassing $1.1 trillion.
• The industry is expected to add approximately 200,000 new jobs, bringing total employment to 15.9 million by the end of 2025.
• Despite challenges such as rising labor and food costs, over 80% of restaurant operators anticipate their 2025 sales to be higher or on par with 2024 levels.

Source: Meat + Poultry

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IPPE Report: International Rendering Symposium provides sector updates.

• Ethan Carter, Director of Sustainability at Darling Ingredients, highlighted that the company processes approximately 15% of the world's animal byproducts, primarily in North America, Europe, and Brazil, and returns over 12 billion gallons of water to the environment annually.
• David Dirks, Chief Operating Officer for APC, discussed the company's shift from a defensive to an offensive sustainability strategy, emphasizing the upcycling of raw materials to achieve zero waste and enhance animal nutrition.
• The symposium covered topics such as the use of rendered products in aquaculture, global trade flows in the circular bioeconomy, and initiatives for a circular bioeconomy, including discussions on sustainable agricultural practices involving insects and the utilization of food waste for feed.

Source: Meat + Poultry

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South Dakota governor signs bill on lab-grown meat labeling specifics.

• South Dakota Governor Larry Rhoden signed House Bill 1022, mandating that cell-cultured protein products be labeled as "cell-cultured" or "lab-grown" adjacent to the product name.
• Similar legislation has been introduced in Georgia and Indiana, aiming to regulate the labeling of lab-grown meat products.
• In January, Nebraska Governor Jim Pillen signed an executive order restricting cultivated meat, emphasizing the need to protect traditional agriculture.

Source: Meat + Poultry

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New grain report states record soybean output worldwide.

• The International Grains Council (IGC) has reduced its forecast for 2024/25 global wheat production by 2 million metric tons, now estimating it at 796 million tons.
• This adjustment is primarily due to a significant decrease in the European Union's wheat output, which has been revised down to 120.3 million tons from the previous forecast of 121.8 million tons.
• The reduction in the EU's wheat production is attributed to poor harvests in France and Germany, caused by excessive rainfall over the past year.

Source: Meat + Poultry

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Unilever’s ice cream supply chain looks to solve last mile hurdles.

• Unilever is integrating artificial intelligence (AI) throughout its ice cream supply chain to enhance forecasting accuracy, optimize inventory management, and reduce waste. By analyzing weather data, AI has improved sales forecasts by 10% in markets like Sweden.
• The company has equipped 100,000 ice cream freezers with AI technology to monitor stock levels in real-time, ensuring popular products remain available and increasing retail orders and sales by up to 30%. Unilever plans to expand this initiative to 350,000 AI-enabled freezers by the end of 2025.
• Despite advancements, Unilever faces challenges in last-mile delivery due to the fragmented nature of its transportation network. Implementing real-time monitoring across a diverse fleet remains complex, and the company is exploring cost-effective solutions, such as connected sensors, to enhance visibility and efficiency in this critical segment.

Source: Food Dive

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How Kraft Heinz is using artificial intelligence to produce a better Claussen pickle.

• Kraft Heinz processes approximately 60 million cucumbers annually to produce about 42 million jars of Claussen pickles, requiring precise quality control to maintain consistency.
• To enhance efficiency, the company has implemented artificial intelligence in its supply chain, using machine learning to assess cucumber characteristics such as size, shape, and quality, ensuring optimal processing and product quality.
• Since adopting AI technology, Kraft Heinz has reported a 12% increase in operational efficiency for its Claussen pickle production, leading to improved product quality and better service for customers.

Source: Food Dive

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The Weekly Sip: Plant-based milk brands shake up category.

• PKN has introduced PKN Zero, a pecan milk made from upcycled pecans, featuring a subtle roasted pecan flavor and a buttery texture without added sugars or artificial additives.
• Investment firm Next In Natural has acquired a majority stake in Aura Bora, a San Francisco-based sparkling water company known for its herb, fruit, and flower-infused beverages.
• Whole Moon has launched a new coconut milk made from coconut meat, offering a rich flavor and full-body texture without oils, creams, or other coconut parts.

Source: Food Dive

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How Graeter’s ice cream outlasted over 150 years of wars, depressions and deep-pocketed competitors.

• Graeter's Ice Cream, founded in 1870 by Louis Charles Graeter in Cincinnati, Ohio, has remained a family-owned business for over 150 years, preserving its traditional ice cream-making methods.
• The company continues to use the French Pot process, a method dating back to its inception, where small 2.5-gallon batches are crafted to create a dense, creamy texture. This labor-intensive technique involves hand-packing the ice cream, resulting in higher production costs but maintaining the brand's commitment to quality.
• Despite industry trends toward mass production, Graeter's focuses on regional markets, particularly in the Midwest, where it often outsells larger competitors. The company operates 56 retail locations and distributes its products to over 6,000 stores nationwide, emphasizing growth through direct-to-consumer shipments and new shop openings.

Source: Meat & Poultry

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Blow Pop maker plans $98M Tennessee plant expansion.

• Charms LLC, a subsidiary of Tootsie Roll Industries, is investing $97.7 million to expand its manufacturing plant and distribution center in Covington, Tennessee, creating 62 new jobs and bringing total employment at the facility to nearly 500.
• Tootsie Roll Industries reported a 6% decrease in net sales for 2024, totaling $715.5 million, down from $763.3 million in 2023. Net earnings for the year were $86.8 million, a 5% decline from the previous year.
• The company's fourth-quarter 2024 net sales were $191.4 million, a 2% decrease compared to the same period in 2023. Net earnings for the quarter were $22.5 million, down from $29.4 million in the previous year.

Source: Food Dive

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Coca-Cola enters trendy prebiotic soda market with Simply Pop.

• Coca-Cola has introduced Simply Pop, a new line of prebiotic sodas under its Simply brand, available in five flavors: Strawberry, Pineapple Mango, Fruit Punch, Lime, and Citrus Punch.
• Each 12-ounce can contains 6 grams of prebiotic fiber to support gut health, along with Vitamin C and zinc to aid immune function. The beverages are made with 25-30% real fruit juice from concentrate and contain no added sugar.
• Simply Pop will be available later this month in select regions and online nationwide through Amazon Fresh, with plans for broader distribution throughout 2025.

Source: Food Dive

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Food recalls have increased over 20%. What is your business doing about it?

• In December 2024, over two dozen food recalls occurred, leading to hospitalizations and a decline in consumer trust in food safety.
• The average direct cost of a food recall is $10 million, with long-term impacts on brand reputation and consumer trust.
• New regulations, such as the Food Safety Modernization Act (FSMA) Section 204, mandate comprehensive food traceability plans to enhance food safety.

Source: Food Dive

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Frozen food weighs on Nestle’s North America performance.

• Nestlé's North American sales declined by 2.5% in 2024, with frozen food underperformance and coffee creamer capacity constraints contributing to the downturn.
• To address these challenges, Nestlé has lowered prices and introduced new products in the frozen food sector, aiming to regain market share.
• The company is also investing in increased production capacity for coffee creamers, including the opening of a $675 million facility in Arizona, to meet consumer demand and drive growth.

Source: Meat + Poultry

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USDA tries to rehire employees working on bird flu.

• The USDA mistakenly terminated several employees involved in the federal response to the H5N1 avian influenza outbreak over the weekend and is now working to rescind those termination notices.
• These layoffs were part of broader federal workforce reductions initiated by the Trump administration, aiming to streamline government agencies, which also affected other departments like the National Institutes of Health and the Food and Drug Administration.
• The bird flu outbreak has led to the culling of approximately 160 million birds since 2022, significantly impacting egg prices, which have risen to an average of $4.95 per dozen, and prompting the government to spend nearly $2 billion on response efforts, including compensation to farmers.

Source: Meat + Poultry

JUST FOR FUN

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Bazooka Brands Unveils New, Out-Of-This-World Candy, Baby Bottle Pop® Twisters – PR Newswire

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