March 7, 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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New Water Capital acquires Dutch Gold Honey and related businesses.

• An affiliate of New Water Capital Partners II L.P. ("New Water" or "the Firm"), a Boca Raton-based private equity investment firm focused on lower-middle market companies, has acquired Dutch Gold Honey ("Dutch Gold"), a top U.S. producer of best-in-class, ethically sourced honey, and the related businesses of McLure's Honey & Maple Products, Gamber Container Company, The Bacon Jug Company and DGH Logistics.

Source: Mergermarket

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Shoreline-backed Engelman’s Bakery cooking up sale process with TM Capital, sources say.

• Engelman’s Bakery is preparing to launch a sale process, according to three sources familiar with the situation. The Norcross, Georgia-based wholesale bakery company, which was acquired by Shoreline Equity in 2020, has appointed TM Capital to run the sale, two of the sources said.

Source: Mergermarket

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Promus-backed Caputo Cheese launches sale process with Harris Williams, sources say.

• Caputo Cheese is working with Harris Williams on a sale process, according to three sources familiar with the situation. The process for Caputo, which is backed by Promus Equity Partners, launched last month, said two of the sources. The company, based in Melrose Park in the near western suburbs of Chicago, has EBITDA in the USD 15m-USD 20m range, according to all three sources. 

Source: Mergermarket

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Fresh Del Monte expands reach of Broccolini through agreement with The Nunes Company.

• Fresh Del Monte Produce Inc., through its vegetable division Mann Packing, has entered into a licensing agreement with The Nunes Company, Inc., expanding the reach of one of the industry’s most recognized premium brands—Broccolini — and bringing the sought-after vegetable to more retailers while maintaining the high standards consumers expect. 

Source: Produce Bluebook

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Sevillo Fine Foods acquired by Woodland Gourmet (Graham Partners).

• Woodland Gourmet, a leading provider of custom culinary solutions, is pleased to announce the acquisition of Sevillo Fine Foods, a creator of chef-inspired, ready-to-eat frozen ingredients. This strategic move aims to enhance Woodland Gourmet's product portfolio and value-added capabilities, further solidifying its position in the food service, retail, and industrial markets. 

Source: Mergermarket

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W&W Dairy in early stages of sale process, sources say.

• W&W Dairy, a sponsor-backed manufacturer of Hispanic cheese products, is in the early stages of a sale process, according to three sources familiar with the situation.   

Source: Mergermarket

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Once Upon a Farm considers IPO this year – report.

• Once Upon a Farm, a Berkeley, California-based organic, cold-pressed baby food, applesauce and smoothies company, is working with undisclosed banks for a potential IPO this year, according to a newswire report.   

Source: Mergermarket

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Food and beverage giants prioritizing small-scale M&A for a foothold in trendy areas.

• Major food and beverage companies, including Kraft Heinz, Hershey, and Molson Coors, are focusing on smaller, strategic acquisitions to expand into high-growth categories like better-for-you snacks and functional beverages while maintaining financial discipline.
• Recent acquisitions, such as Campbell’s purchase of Sovos Brands for $2.7 billion and PepsiCo’s $1.2 billion acquisition of Siete Foods, reflect a trend of targeted M&A deals aimed at strengthening existing portfolios rather than large-scale transformative mergers.
• Experts predict an increase in M&A activity due to lower interest rates and a need for companies to enhance margins and growth, particularly in categories such as snacking and plant-based alternatives.

Source: Food Dive

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Tariff details still emerging as produce industry adjusts.

• The U.S. fresh produce industry is awaiting details on 25% tariffs on imports from Canada and Mexico, with concerns about how they will be applied to fruits and vegetables.
• Higher prices on imported fruits and vegetables are expected, potentially impacting both U.S. consumers and producers who rely on exports.
• Negotiations under the USMCA trade agreement may delay tariffs on compliant imports until April 2, as discussions between the U.S., Canada, and Mexico continue.

Source: Produce Bluebook

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Ag secretary addresses challenges for farmers during Ag Outlook Forum.

• US Agriculture Secretary Brooke Rollins addressed the 101st Agricultural Outlook Forum, emphasizing the dire state of the agriculture economy, including a record $45.5 billion trade deficit, rising production costs, and a declining number of farms.
• Rollins outlined $30 billion in fast-tracked disaster relief, a five-pronged plan to address the avian influenza outbreak, and long-term strategies to support rural communities, with a focus on economic revitalization and sustainability.
• The administration remains committed to fair trade policies and rapid agricultural reforms, with Rollins pledging to be a strong advocate for American farmers and promising upcoming initiatives to reverse negative industry trends.

Source: Meat + Poultry

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Conference preview: AMC heads to Florida.

• The Annual Meat Conference (AMC) 2025 in Orlando will bring together industry leaders to discuss market trends, regulatory updates, AI in meat supply chains, and consumer engagement strategies for the evolving retail landscape.
• Key sessions include "The Power of Meat" study on retail trends, discussions on sustainability and labeling, a pork carcass fabrication demonstration, and insights on regenerative agriculture's role in the meat industry.
• Industry executives and experts will explore challenges and opportunities, including inflation, regulations, supply chain advancements, and the political landscape’s impact on meat and poultry markets under the Trump administration.

Source: Meat + Poultry

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Study: Beef and pork exports bring returns on US corn, soybean production.

• U.S. beef and pork exports generated $19.1 billion in 2024, contributing significantly to corn and soybean producers, with $2.4 billion in corn market value, $525 million in distiller’s dried grains (DDGS), and $1.12 billion in soybeans.
• Beef and pork exports accounted for 525.1 million bushels of U.S. corn usage and 100.7 million bushels of soybeans, demonstrating the strong link between livestock exports and agricultural profitability.
• The study, conducted by the Juday Group and USMEF, highlights how red meat exports drive economic returns for grain farmers, reinforcing the importance of global trade for U.S. agriculture.

Source: Meat + Poultry

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To make healthy food taste good, texture is key.

• Texture plays a crucial role in consumer acceptance of healthy foods, impacting taste, mouthfeel, and perceived nutritional value, with over 50% of consumers rejecting products if they dislike the texture.
• Ingredion has invested over $100 million in texture-focused ingredients, leveraging proprietary methodology and clean-label solutions to maintain desirable textures in reformulated and health-conscious products.
• Consumer preference is significantly influenced by texture descriptions on labels, with research showing that 84% associate lighter textures with healthier options, driving demand for innovative textural solutions in food manufacturing.

Source: Food Dive

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Cadbury maker Mondelēz bets high chocolate prices won’t dull consumers’ sweet tooth.

• Mondelēz is confident that consumer demand for chocolate will remain strong, despite significant price increases due to rising cocoa costs, with CEO Dirk Van de Put predicting prices could rise 30% to 50% higher than in previous years.
• The company is introducing varied pack sizes and boosting seasonal promotions to help consumers manage costs while maintaining brand loyalty, as seen with Milka and Cadbury leading its $11.2 billion chocolate business in 2024.
• While Hershey is exploring chocolate alternatives and increasing innovation, Mondelēz leverages long-term cocoa purchasing and strong global brand positioning to weather price volatility, with expectations that chocolate will continue to be a resilient category.

Source: Food Dive

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Stryve Foods introduces four new meat snack innovations.

• Stryve Foods is launching four new meat snacks under its Stryve and Vacadillos brands, including grass-fed beef slices and a Carne Asada-flavored snack, catering to the growing demand for high-protein, clean-ingredient options.
• The Stryve Grass-Fed Original and Hickory Brisket Slices focus on sustainable, minimally processed protein, while the Vacadillos Carne Asada offers an authentic smoky Mexican flavor for consumers seeking bold taste experiences.
• These new products align with modern health-conscious snacking trends and will be showcased at Natural Products Expo West before rolling out online and in major retailers nationwide.

Source: Meat + Poultry

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Mars pledges $27M to slash dairy emissions.

• Mars is investing $27 million over five years in its Farmer Forward Program, partnering with dairy co-operative Fonterra to help reduce carbon emissions in dairy farming by providing sustainability-focused tools and incentives.
• The initiative aims to cut Scope 3 dairy sourcing emissions by more than 150,000 metric tons by 2030, with half of the funding supporting 2,000 farmers in adopting more sustainable practices and the rest offering financial incentives to 165 farmers meeting emissions targets.
• Nestlé is also collaborating with Fonterra on a similar initiative, providing funding and incentives to farmers with low-emission dairy operations, reflecting a broader industry push for sustainable agricultural partnerships to cut greenhouse gas emissions.

Source: Food Dive

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WK Kellogg earmarks $200M for supply chain updates in 2025.

• WK Kellogg is investing $200 million in 2025 as part of its ongoing $500 million supply chain modernization effort, which has already improved productivity and reduced waste.
• The initiative includes infrastructure upgrades, new technology, and facility consolidations across multiple locations, with a goal of increasing production output and improving profit margins.
• Despite supply chain improvements contributing to a 7.5% year-over-year EBITDA growth, the company reported a 2% decline in net sales and a 35% drop in net income, citing a challenging business environment.

Source: Food Dive

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General Mills shuts down innovation unit, pauses venture investments.

• General Mills is shutting down its in-house innovation unit, G-Works, and pausing new investments by its venture capital arm, 301 Inc., as part of a broader shift in growth strategy amid economic pressures.
• The company has launched a new Strategic Growth Office, signaling a shift in how it pursues innovation, though existing investments in startups like Carbe Diem and Everything Legendary will remain unaffected.
• The decision reflects a broader trend in the food industry, where companies are prioritizing cost-cutting and margin improvement due to inflation and changing consumer spending habits.

Source: Food Dive

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Beyond Meat Fights for Survival.

• Beyond Meat is struggling financially, with slow revenue growth, ongoing losses, and $1 billion in debt maturing in 2027, leading to concerns that bondholders may take over the company through bankruptcy.
• The company is pursuing cost-cutting measures and attempting to shift consumer perception around plant-based meat, aiming to increase demand and improve profitability, though time is running out before its debt crisis.
• The plant-based meat industry as a whole has faced setbacks, with declining valuations for competitors like Impossible Foods and stalled growth for MorningStar Farms, raising doubts about the long-term viability of the sector.

Source: Food Institute

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February's Top 10 stories.

• Tyson Foods will officially close its Emporia, Kansas plant by June, marking a significant change in its operations, while JBS USA is investing $200 million in beef production facilities in Colorado and Texas.
• Boar’s Head hosted ‘Food Safety Promise Day’ to highlight improvements following a 2024 Listeria outbreak, while Congressmen introduced legislation to block the USDA’s proposed Salmonella framework.
• Perdido River Meats launched a $29 million premium beef facility, Walmart is bracing for tariff impacts, and Pennsylvania awarded nearly $600,000 in grants to support small meat and poultry processors.

Source: Meat + Poultry

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Hormel prepares for rebound after Q1 markers.

• Hormel is aiming for a rebound in 2025 after a challenging 2024, focusing on growth in value-added and premium brands like Spam, Applegate, Jennie-O, and Planters, though full recovery may take time.
• The company is addressing ongoing challenges in its turkey business, with strategic pricing actions and an expected boost from GLP-1 weight-loss drug trends, which are increasing demand for lean protein options like turkey and fish.
• Hormel’s 2025 outlook projects organic net sales growth of 1%-3%, with expected incremental benefits of $100 million to $150 million from its transformation and modernization initiative, while continuing to reduce exposure to commodity markets.

Source: Meat + Poultry

JUST FOR FUN

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Leftovers: Kraft Heinz goes global with new sauces | Dave’s Killer Bread nibbles into snack bites –Food Dive

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