May 2, 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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Keurig Dr Pepper shareholder JAB prices secondary offering of 75m shares at USD 33.45 apiece.

• Keurig Dr Pepper announced the pricing of its previously-announced registered public offering of 75,000,000 shares through a secondary offering by a subsidiary of JAB Holding, at a price to the public of $33.45 per share.  

Source: Mergermarket

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Conagra Brands agrees to sell Chef Boyardee brand to Hometown Food for USD 600m.

• Brynwood Partners IX L.P. announced today (1 May) that its portfolio company, Hometown Food Company, has entered into a definitive agreement to acquire the Chef Boyardee® brand from Conagra Brands for USD 600m.

Source: Mergermarket

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Premium Brands Holdings buys Denmark Sausage.

• Generational Group, a leading mergers and acquisitions advisory firm for privately held businesses, is pleased to announce the sale of Denmark Sausage Co. dba Denmark Foods/Arizona Fresh to Premium Brands.

Source: Mergermarket

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Butterfly Equity-backed Actus Nutrition to acquire protein facility from Foremost Farms USA.

• Actus Nutrition, a leading vertically-integrated nutritional ingredients manufacturer and portfolio company of Butterfly Equity (“Butterfly”), today finalized an agreement to purchase a 99,000 sq. ft. processing facility from Foremost Farms USA.

Source: Mergermarket

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M2 Advisors acquires Mule City Specialty Feeds.

• Generational Group, a leading mergers and acquisitions advisory firm for privately held businesses, is pleased to announce the sale of Mule City Specialty Feeds, Inc. to M2 Advisors.

Source: Mergermarket

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Stampede Culinary Partners collects initial bids.

• Stampede Culinary Partners collected initial bids last week as it explores a sale, three sources familiar with the situation said. More than a handful of financial sponsors are pursuing the company in its sale process, with some strategics as well around it, two of the sources said.

Source: Mergermarket

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Farmer Focus to consider capital raise or majority stake sale next year – CFO.

• Farmer Focus, a provider of organic chicken products, will explore opportunities to raise capital or consider a sale in 12-18 months, CFO Laura Markley said.

Source: Mergermarket

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Zing Zang sale advances to second round.

• The sale process for Zing Zang, a sponsor-backed manufacturer of non-alcoholic cocktail mixers, has moved into the second round, according to four sources familiar with the situation.

Source: Mergermarket

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Stryve Foods launches strategic review process.

• Stryve Foods, Inc., an emerging healthy snacking company focused on high-protein, air-dried meat snacks, today announces that it has engaged in a formal review process to evaluate potential strategic alternatives aimed at maximizing shareholder value while securing capital to support its accelerating growth in demand.

Source: Mergermarket

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Consumer tolerance rises for high egg prices.

• Consumers are increasingly willing to pay higher prices for eggs, with the average acceptable price rising to $5.56 per dozen in April, though it still falls below the actual average price of $6.54.
• Willingness to pay more varies by demographic and retailer, with younger, Hispanic, and urban consumers showing greater tolerance, while private label brands now account for 70% of egg sales.
• Concerns over affordability, safety, and supply remain, but have eased since January; shoppers continue shifting to store brands and adjusting expectations amid persistently high prices.

Source: Food Dive

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Hershey seeks tariff exemption for cocoa from White House.

• Hershey is seeking a White House exemption on cocoa tariffs, warning they could increase costs by up to $100 million in the second half of 2025 as existing inventories run out.
• The company cited cocoa’s lack of domestic availability and said it is lobbying alongside lawmakers and trade groups to avoid additional 21% retaliatory tariffs on imports from the Ivory Coast.
• Despite mitigation efforts, tariffs and persistently high cocoa prices — driven by weather, disease, and strong demand — continue to pressure the confectionery industry’s cost structure.

Source: Food Dive

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Rebound in Hog Production drives Smithfield’s Q1 performance.

• Smithfield reported $321 million in Q1 operating profit, up over 85% from the prior year, driven by a sharp rebound in hog production, which saw sales rise 32% to $932 million.
• Packaged Meats generated $2.02 billion in sales and remains the largest business unit, though its operating profit declined 7% year-over-year; the company is shifting toward higher-margin lunch meats and dry sausage.
• The company reaffirmed its 2025 outlook, targeting adjusted operating profit of $1.1 to $1.3 billion and plans $400 to $500 million in capital expenditures to support growth and efficiency.

Source: Meat + Poultry

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Ghost energy drinks drive sales boost at Keurig Dr Pepper.

• Keurig Dr Pepper’s acquisition of a 60% stake in Ghost energy drinks has contributed to an 11% increase in refreshment beverage sales, offsetting declines in its coffee segment.
• The company plans to fully acquire Ghost by 2028 and is expanding distribution aggressively, leveraging candy-brand collaborations like Sour Patch Kids and Swedish Fish.
• Coffee sales fell 3.7% due to tariffs and weaker consumer spending, prompting Keurig Dr Pepper to focus on premium brands like La Colombe and consider additional pricing strategies.

Source: Food Dive

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Applegate rolls out new chicken product line.

• Applegate is expanding its frozen chicken offerings with new Lightly Breaded Chicken Tenders and Popcorn Chicken, made with gluten-free rice flour and 12–14 grams of protein per serving.
• The products will be available starting in May at retailers including Whole Foods, Stop & Shop, and Demoulas, and are packaged in resealable family-size bags for convenience.
• This launch follows Applegate’s broader sustainability push, including a commitment to source all beef hot dogs from regenerative farms by the end of 2025.

Source: Meat + Poultry

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A ‘new chapter’ for Chips Ahoy!: How Mondelēz is innovating the iconic cookie brand.

• Mondelēz is repositioning Chips Ahoy! as a broader snacking platform, expanding beyond cookies with innovations like Baked Bites in the $97 billion cakes and pastries category.
• Sales for Chips Ahoy! grew 2.3% over the past 26 weeks, adding 2 million new households, with a quarter of that growth attributed to new products such as gluten-free and large-size cookie formats.
• To reach more value-conscious consumers and boost on-the-go snacking, the brand is rolling out more sub-$3 offerings and plans phased category extensions beyond cookies.

Source: Food Dive

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Eagle Eye Produce acquires Baker & Murakami Produce.

• Eagle Eye Produce has acquired the advanced onion packing facilities of Baker & Murakami Produce in Ontario, Oregon, enhancing its footprint in the Pacific Northwest with AI-powered sorting and expanded capacity.
• The acquisition strengthens Eagle Eye’s year-round onion programs alongside its Nyssa, OR and Payette, ID operations, offering increased packing flexibility and supply reliability across foodservice and retail.
• The deal continues Baker & Murakami’s legacy of quality and innovation while positioning Eagle Eye to lead in the onion category through its vertically integrated "Roots to Routes" approach.

Source: Produce Bluebook

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Seaboard reports dip during Q1 for pork business.

• Seaboard’s Pork segment posted a $31 million operating loss in Q1 2025, compared to $1 million in operating income the prior year, with net sales down 3% to $486 million; lower feed costs partially offset losses, but tariff uncertainty clouds the outlook.
• The Butterball turkey segment had flat sales at $375 million and higher production costs due to bird health issues; a processing plant closure had no material impact on results.
• Despite pork headwinds, Seaboard’s overall operating income rose to $38 million from a $20 million loss last year, with net earnings up to $32 million and EPS increasing to $32.95.

Source: Meat + Poultry

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Nestlé changes how it reports nutritional value of food after criticism.

• Nestlé will begin reporting nutrition data using the Access to Nutrition framework and will publish sales-weighted averages across product categories to improve transparency after criticism from investor coalition ShareAction.
• The company faced backlash for labeling products like coffee and infant formula as “nutritious” despite them falling outside accepted health rating systems, prompting a pledge to better align reporting with health standards.
• While Nestlé shareholders rejected a proposal to cut reliance on unhealthy products, the company committed to boosting sales of healthier items by up to $27.3 billion by 2030 and encouraged other food firms to follow suit.

Source: Food Dive

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Coca-Cola sales slip following boycott among Hispanic consumers.

• Coca-Cola reported a 3% decline in North American volumes and a 4% drop in regional sales, citing reduced Hispanic consumer spending tied to a false viral video and broader economic uncertainty.
• The company is working to regain trust through affordability initiatives and localized messaging, while recent innovations like Orange Cream Coke and Simply Pop prebiotic soda have shown early success.
• Despite current headwinds, analysts from Morgan Stanley and Bank of America maintain confidence in Coca-Cola’s financial performance, citing its resilient local sourcing and strong execution.

Source: Food Dive

JUST FOR FUN

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Johnsonville, Leinenkugel’s Shandy Beer Brat returns nationwide – Meat + Poultry

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