May 16, 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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Mars EU filing for Kellanova deal hung up by active complainants.

• Mars is concerned that active complainants may lead the European Commission to proceed to an in-depth investigation of its Kellanova acquisition, according to two sources familiar with the situation.  

Source: Mergermarket

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Shore Capital recapitalizes Sweetmore Bakeries.

• Shore Capital Partners, a Chicago-based private equity firm with offices in Nashville, announced its strategic investment in support of the recapitalization and growth of Sweetmore Bakeries, a wholesale commercial bakery focused on innovative and custom sweet baked goods products into the ISB, foodservice, club, and c-store channels. Sweetmore, an existing Shore Capital Food & Beverage portfolio company since 2019, was recapitalized through a Special Purpose Vehicle backed by Shore Capital Partners.

Source: Mergermarket

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Chobani buys plant-based food maker Daily Harvest.

• Chobani is buying plant-based food maker Daily Harvest as the Greek yogurt giant expands its reach into ready-to-make meals. Terms of the deal were not disclosed.

Source: Food Dive

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Polenghi acquires Nielsen Citrus (translated).

• Italy-based Polenghi has acquired the US, California-based lemon juice producer Nielsen Citrus Products Company, according to the Italian website Markup.

Source: Mergermarket

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Pacific Seafood interested in Peter Pan Seafood's plant in King Cove.

• Oregon-based Pacific Seafood is exploring the potential acquisition of Peter Pan Seafood-owned closed processing plant in King Cove, Alaska, according to Intrafish. The item wrote that discussions continue between facility owner Rodger May and local and state officials.

Source: Mergermarket

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BUILT Brands preps for sale.

• BUILT Brands, a founder-owned manufacturer of protein bars and other protein snacks, is gearing up to explore a sale, two sources familiar with the situation said.

Source: Mergermarket

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Danone acquires majority stake in Kate Farms.

• Danone and Kate Farms to join forces to serve people with health needs across both medical and everyday nutrition.

Source: Mergermarket

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Chocolate Works acquires Thompson Chocolate.

• Chocolate Works has acquired Thompson Chocolate, a Meriden, Connecticut-based manufacturer of speciality and foil-wrapped chocolate novelties.

Source: Mergermarket

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Kemin Industries acquires Bactana.

• Kemin Industries has acquired Bactana, a research-driven company specializing in advancements in intestinal health and fermentation technology.

Source: Mergermarket

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Ferrarelle seeks acquisitions in US.

• Ferrarelle, an Italian private sector mineral water group, is seeking acquisitions in the US, according to Italian newspaper L’Economia de Il Corriere della Sera. 

Source: Mergermarket

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Kameda Seika sells Mary's Gone Crackers to Dare Foods unit.

• Dare Foods' US unit, Rosseau Inc., has acquired organic, kosher and gluten-free cracker brand Mary's Gone Crackers, based in Nevada, from Japan's Kameda Seika Co for an undisclosed price.

Source: Mergermarket

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CookUnity acquires Fraiche.

• CookUnity Surpasses $600M in ARR, Continues to Grow at 90% YoY with Positive EBITDA, and Announces its Third Corporate Acquisition—Bringing Food Curation, Convenience, & Tech to Transform How America Eats at Work.

Source: Mergermarket

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Post Holdings cites tariff uncertainty in slower M&A pipeline.

• Post Holdings' previously active M&A pipeline has been slowed by US tariff actions and capital markets volatility, Food Business News reported citing Chief Operating Officer Jeff Zadoks.

Source: Mergermarket

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Grocery inflation begins to lose steam.

• Grocery inflation cooled in April, with food-at-home prices rising just 2% annually—down from 2.4% in March—and marking the first monthly decline since October 2024, per Bureau of Labor Statistics data.
• Eggs and coffee drove inflation in select categories, with egg prices up nearly 50% year-over-year and instant coffee up 13.5%, while pork and fresh produce categories saw minimal or negative price movement.
• Retailers like Meijer are responding by cutting prices on private label items to address consumer value concerns, as food price volatility persists despite easing overall inflation.

Source: Food Dive

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More food companies are reformulating amid push to remove artificial ingredients.

• Food companies are accelerating reformulation efforts to eliminate artificial dyes and ingredients, driven by consumer demand and federal pressure from HHS Secretary Robert F. Kennedy Jr., who urged a phaseout by 2027.
• Ingredient suppliers like ADM, Ingredion, and McCormick are seeing significant growth, with ADM’s natural colors in high demand and Ingredion’s clean-label solutions unit posting a 34% increase in Q1 operating income.
• Major brands including Tyson and PepsiCo are actively transitioning portfolios, with PepsiCo removing artificial colors from Lays by year-end and aiming to lead the shift toward natural ingredients in snacks and beverages.

Source: Food Dive

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Breakfast cereal is in dire need of a makeover.

• Cereal sales continue to decline, with major players like WK Kellogg, General Mills, and Post Holdings reporting drops in performance due to changing breakfast habits, inflation, and the category’s unhealthy image.
• Brands are reformulating and repositioning, introducing protein-enriched and lower-sugar options like Special K Protein and Cheerios Protein, while also investing in redesigns and marketing to align with health-conscious trends.
• Consumer demand is shifting toward premium, health-forward cereals, and companies like Kellogg and General Mills are accelerating plans to relaunch legacy brands (e.g., Kashi) to recapture market share from emerging competitors like Magic Spoon.

Source: Food Dive

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How restaurants are tapping into the nonalcoholic beverage craze.

• Restaurants are expanding nonalcoholic beverage menus to meet growing demand from Gen Z and millennials, with 58% of consumers planning to try drinks like mocktails or functional beverages in 2025.
• Health and customization are key drivers, as chains like Peet’s Coffee and Dutch Bros introduce high-protein lattes, vitamin-enhanced drinks, and daypart-specific offerings to align with wellness trends and consumer routines.
• Operational execution is crucial, with successful launches requiring staff training, margin awareness, and marketing that highlights health benefits while avoiding overly complex preparation that could slow service.

Source: Food Dive

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Leftovers: Pop Secret pops outside the microwave | Hershey brings caramel to the campfire.

• Pop Secret enters the ready-to-eat popcorn market with three flavors—Movie Theater Butter, Homestyle Sea Salt, and Double Cheddar—launching at Sam’s Club in June and expanding nationally through Kroger in August.
• Hershey debuts a new Milk Chocolate with Caramel bar designed for s’mores season, available in six-bar packs nationwide for a limited time, as part of its $1B investment in boosting chocolate production capacity.
• DiGiorno launches Wood Fired Style Crust Pizza in four varieties to tap into the growing demand for premium, restaurant-style frozen meals, following a $67M growth in the segment.

Source: Food Dive

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T Hasegawa USA debuts meat flavoring for plant-based foods.

• T. Hasegawa USA launched Plantreact, a new flavoring line using fermentation and advanced techniques to replicate the complex taste of meat and dairy in plant-based products.
• The innovation targets one of plant-based meat’s biggest challenges—taste, as consumer reluctance to try or repurchase products is largely driven by flavor dissatisfaction.
• Despite declining category sales, T. Hasegawa sees growth potential, positioning Plantreact as a tool for brands to boost consumer appeal and better compete with traditional meat through improved taste authenticity.

Source: Food Dive

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Processed meat demand surges with innovations

• Processed meat demand is surging, driven by consumer interest in convenient, protein-rich options and home meal preparation. Bacon and dinner sausage led sales with $6.1B and $5.3B respectively, while meat snacks grew 5.3% to $4.7B, per NIQ data.
• Innovation in flavors, global inspirations, and packaging is fueling category growth, with brands like Aussie Select and Hermann Wurst Haus finding success by offering unique products and experiences. Shelf-life-extending packaging and portion variety are also contributing to stronger sales.
• Rising costs and tariffs present challenges, but brands are maintaining momentum by offering differentiated, high-value products. Companies like Smithfield are shifting focus to higher-margin packaged meats like lunchmeat and dry sausage, reflecting broader industry strategies.

Source: Meat + Poultry

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Poultry, pork drive Q1 revenue growth for JBS.

• JBS delivered strong Q1 2025 results, with net sales up 8.5% to $19.5B and net profit up 50.5% to $500M, driven by strong performance in poultry and pork, particularly from Seara, Pilgrim’s, and JBS USA Pork.
• Seara and Pilgrim’s posted record EBITDA margins of 19.8% and 14.8%, respectively, fueled by innovation, portfolio optimization, and expanded foodservice and retail distribution. JBS USA Pork also saw revenue grow 4.8%, aided by favorable beef price dynamics.
• North American beef margins remained pressured, with EBITDA margin falling to -1.6% despite a 15.1% revenue increase. JBS continues to pursue a dual listing in Brazil and the U.S. to enhance global visibility and investor reach.

Source: Meat + Poultry

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Danone brings Oikos into the $7 billion protein shake market.

• Danone is entering the $7B protein shake market with shelf-stable Oikos Protein Shakes, expanding the yogurt brand into high-growth, functional, on-the-go nutrition categories.
• Each 12-oz bottle features 30g of protein, 5g of prebiotic fiber, and vitamins A & D, positioning it as a nutrient-dense meal replacement with only 1g of sugar—differentiating it from traditional shakes.
• Following a 40% surge in Oikos sales in 2024, the launch reflects Danone’s broader strategy to diversify yogurt brands into adjacent categories, with future plans potentially including bars and other functional foods.

Source: Food Dive

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Tyson Foods execs detail poultry, beef businesses.

• Tyson Foods reported $680M in adjusted operating income for the first half of 2025, with chicken volume growing for the second straight quarter and full-year chicken operating income projected at $1B–$1.3B.
• The beef segment remains challenged, with an expected $200M–$400M loss due to reduced cattle supply and margin compression, though herd rebuilding is underway and could take up to 30 months.
• Prepared foods and pork show positive momentum, with pork expected to generate $100M–$200M in operating income and investments focused on expanding capacity, private label, and value-added product growth across the portfolio.

Source: Meat + Poultry

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Nestlé highlights upcoming R&D capabilities.

• Nestlé is enhancing its R&D capabilities with investments in biotechnology and a new deep tech center aimed at driving innovation in nutrition, efficiency, and digital transformation across its global operations.
• The new deep tech center, opening in 2026 in Orbe, Switzerland, will focus on AI, robotics, sensors, and virtual/mixed reality to accelerate precision nutrition, quality control, and operational efficiency.
• Nestlé's streamlined R&D structure will enable breakthroughs in areas like precision fermentation, postbiotics, and clinically proven bio-actives for both human and pet nutrition, supporting the company’s long-term growth strategy.

Source: Meat + Poultry

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Vermont Smoke & Cure embarks on largest retail expansion in company history.

• Vermont Smoke & Cure is executing its largest retail expansion ever, with new national distribution through Walmart and Giant Food, and a significantly increased presence in over 1,000 Kroger stores.
• Product offerings will include premium beef, turkey, and BBQ mini sticks, available in variety packs and multi-count formats, with dedicated meat department racks in Kroger and new shelf space in Walmart and Giant.
• Driven by strong performance metrics and consumer demand for high-quality protein snacks, the expansion builds on recent growth in Costco’s Northeast Division and reinforces the brand’s positioning around clean ingredients and craftsmanship.

Source: Meat + Poultry

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MrBeast and Jack Link’s team up on jerky and meat sticks for kids.

• MrBeast and Jack Link’s are launching a kid-focused meat snack line featuring jerky and meat sticks in multipacks, targeting Gen Z, Gen Alpha, and parents with a better-for-you positioning.
• The partnership leverages MrBeast’s massive social media influence to appeal to younger demographics, tapping into a growing market where only 9% of children currently choose meat snacks despite high overall snacking frequency.
• Jack Link’s aims to gain share in the $20B projected meat snacks market, following flashy Gen Z-targeted campaigns and aligning with MrBeast’s broader efforts in food, including Feastables and Lunchly.

Source: Food Dive

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Lidl US prepares private label meat line.

• Lidl US is launching its first private label meat brand, Butcher’s Specialty, featuring USDA Choice beef, organic and grass-fed beef, antibiotic-free chicken, and all-natural pork, lamb, and veal.
• The line is positioned around quality and value, with Lidl emphasizing freshness, superior cuts, and the absence of additives to meet consumer demand for affordable premium meat options.
• Available in Lidl US stores, the move strengthens the grocer’s private label portfolio and competitive edge in the meat aisle amid growing interest in curated, high-quality meat products.

Source: Meat + Poultry

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Meat Institute, AMSA create training guide for NSIS implementation.

• The Meat Institute and AMSA have developed a new training guide to support implementation of the USDA’s New Swine Inspection System (NSIS), offering science-based sorting guidance, condition-specific imagery, and real-world examples.
• The guide aims to standardize in-plant training and improve accuracy and confidence among plant personnel, addressing industry demand for consistent and practical visual training materials.
• This initiative aligns with USDA efforts to modernize meat inspection, including recent allowances for pork and poultry plants to operate at higher line speeds under time-limited trial programs.

Source: Meat + Poultry

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Hormel Foods names successor of retail marketing group VP.

• Jeff Baker has been named group VP of retail marketing for Hormel Foods, succeeding Scott Aakre upon his retirement at the end of fiscal 2025. Baker brings over 30 years of experience at Hormel across sales, foodservice, deli, and value-added meats.
• Baker will oversee the evolution of Hormel’s brand portfolio, focusing on growth in snacking, entertaining, and food-forward categories to meet changing consumer preferences.
• Retiring executive Scott Aakre will join the Hormel Foods board of directors, after a 35-year career that included leadership roles in marketing, innovation, and brand strategy. He also recently joined The Hormel Foundation board.

Source: Meat + Poultry

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Walmart warns of price increases due to tariffs.

• Walmart warned that new tariffs—especially those on Chinese goods—will raise prices, though the company is working to limit the impact on food prices and manage costs through sourcing shifts, supplier adjustments, and operational efficiency.
• Despite cost pressures, Walmart posted strong Q1 FY26 results, with revenue up 2.5% to $163.98B, U.S. comp sales up 4.5%, and e-commerce sales up 22%. However, net income declined to $4.49B due to investment losses and rising input costs.
• The company reaffirmed its FY26 guidance, forecasting adjusted EPS of $2.50–$2.60 and 3–4% sales growth, while highlighting the uncertainty surrounding trade policy outcomes and the potential upside or downside from future tariff developments.

Source: Meat + Poultry

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Conagra Brands working through inflation, tariff factors.

• Conagra is navigating a challenging environment shaped by persistent inflation, cautious consumers, and volatile tariffs, especially on tinplate and aluminum packaging, which may lead to “targeted price increases” despite price sensitivity and retail inventory conservatism.
• CEO Sean Connolly emphasized the need to ‘thread the needle’ between protecting margins and maintaining volume growth, noting that inflation has accelerated from 3% to 4% year-over-year and that balancing pricing with consumer retention is key to long-term brand health.
• Conagra is holding off on a formal outlook, with executives describing many of the current headwinds as temporary and expecting a potential return to normalcy if consumer confidence and retailer behavior stabilize.

Source: Meat + Poultry

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Brazil identifies first HPAI outbreak in commercial facility.

• Brazil confirmed its first outbreak of highly pathogenic avian influenza (HPAI) in a commercial poultry farm, prompting immediate containment and eradication efforts by the Ministry of Agriculture and Livestock (MAPA).
• China suspended poultry imports from Brazil for 60 days in response to the outbreak, though products already in transit will not be affected; other major importers include Japan, Saudi Arabia, and the UAE.
• Brazil’s poultry industry trade group ABPA expressed confidence in the government’s response, while MAPA also notified the World Organization of Animal Health (WOAH) and emphasized safeguarding food safety and poultry productivity.

Source: Meat + Poultry

JUST FOR FUN

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The Weekly Sip: Red Hot Chili Peppers singer enters coffee | Aperol owner Campari debuts nonalcoholic spritz – Food Dive

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