June 27, 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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C.H. Guenther & Son acquires Fresca Mexican Foods.

• C.H. Guenther & Son LLC, a commercial baking and food manufacturing business with a 170-year legacy in branded and private label products, today announced the acquisition of Fresca Mexican Foods, LLC, a premier manufacturer of flour tortillas, corn tortillas and tortilla chips based near Boise, Idaho.

Source: Mergermarket

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Kellanova/Mars faces EC in-depth investigation.

• The European Commission has opened an in-depth investigation to assess, under the EU Merger Regulation, the proposed acquisition of Kellanova by Mars. The Commission has preliminary concerns that the transaction could lead to higher prices for consumers due to Mars' increased negotiating power towards retailers in the European Economic Area.

Source: Mergermarket

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FTC grants early termination of Kellanova/Mars review.

• The FTC granted early termination of its review of Mars, Incorporated’s proposed acquisition of Kellanova.

Source: Mergermarket

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Chairmans Foods collects initial bids.

• Chairmans Foods, a Sequel Holdings-backed refrigerated and frozen food manufacturer, recently collected initial bids in its sale process, according to two sources familiar with the matter.

Source: Mergermarket

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North Course Brands acquires RxSugar from Nutrishus Brands.

• North Course Brands, LLC, a California based leader in nutrition focused consumer packaged goods, today announced the acquisition of the RxSugar® brand and related assets from Nutrishus Brands Inc.

Source: Mergermarket

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Peak Rock-backed Turkey Hill Dairy hires Houlihan Lokey to evaluate strategic options.

• Turkey Hill Dairy, a sponsor-backed beverages and frozen desserts maker, has mandated Houlihan Lokey to evaluate strategic options, including the possibility of a sale, according to four sources familiar with the situation.

Source: Mergermarket

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Hershey acquires full control of Fulfill Nutrition's North American business.

• Hershey, a Hershey, Pennsylvania-based food company, has acquired full control of the North American operations of the protein bar supplier Fulfill Nutrition, The Irish Independent reported. The newspaper cited Hershey’s 1Q25 earnings report, published on 26 June, for the information.

Source: Mergermarket

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C&S Wholesale Grocers to acquire SpartanNash for USD 1.77bn.

• C&S Wholesale Grocers, LLC ("C&S") and SpartanNash® Company (Nasdaq: SPTN) ("SpartanNash") today announced that they have entered into a definitive merger agreement (the "Agreement") pursuant to which C&S will acquire SpartanNash for a purchase price of $26.90 per share of SpartanNash common stock in cash, representing total consideration of $1.77 billion, including assumed net debt (the "Transaction").

Source: Mergermarket

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GrubMarket acquires Coast Citrus Distributors.

• GrubMarket, the AI-powered technology enabler and digital transformer of the American food supply chain industry, as well as one of the largest private food eCommerce companies globally, today announced it has completed the acquisition of San Diego, CA-based Coast Citrus Distributors, a preeminent national distributor specializing in tropical fruits, including a wide variety of mangos; specialty root vegetables; chili peppers; limes; and a wide variety of other produce items sourced from Mexico, Central America, South America, the Caribbean, as well as the United States.

Source: Produce Bluebook

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Luke's Lobster closes strategic equity financing led by Relentless Consumer.

• Luke's Lobster, the Certified B Corp known for its best‑in‑class, traceable, and sustainable seafood, today announced closing on a minority growth equity financing led by Relentless Consumer Partners with participation from Whole Foods Market.

Source: Mergermarket

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Why spotlighting private brands should remain a top priority for grocers.

• Private label sales grew 5.4% year-over-year, outpacing national brands (2.2%), as 95% of shoppers now purchase store brands at least occasionally.
• Despite strong loyalty, nearly half of consumers want more promotions and clearer value communication, like BOGOs and in-store signage.
• Club retailers led private brand growth in 2025, putting pressure on traditional grocers to better spotlight their store brands to remain competitive.

Source: Grocery Dive

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Walmart beef plant holds grand opening in Kansas.

• Walmart officially opened its first fully owned and operated case-ready beef plant in Olathe, Kansas — a 300,000+ sq. ft. facility creating 600 jobs and serving the Midwest.
• The plant will process and package Angus beef sourced from Sustainable Beef LLC, part of Walmart’s vertically integrated supply chain built since 2019.
• The move strengthens Walmart’s control over beef quality, cost, and transparency, while also supporting local communities with over $90K in grants to regional nonprofits.

Source: Meat + Poultry

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Protein rises to top of Circana’s 2024 Pacesetters.

• Circana’s 2024 Pacesetters report highlights protein as a dominant driver of new product success, led by Just Bare lightly breaded chicken, which generated $368.4M in sales and addressed demand for convenient, high-protein options.
• Consumer interest in protein-rich foods is expanding across all dayparts, including snacks, sweet treats, cereals, and even toaster pastries, fueled by health trends and GLP-1 drug adoption.
• Other top performers included Golden Island’s Korean BBQ meat snacks and Real Good Foods' frozen chicken, showing the success of brands that pair indulgence with functionality and meet evolving consumer lifestyle needs.

Source: Meat + Poultry

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Taking the jab: The GLP-1 effect on food choices.

• GLP-1 drugs are reshaping consumer food behavior, reducing cravings for sugar and fat while increasing preference for high-protein and umami-rich foods like poultry, fish, and pork; users also shop less frequently and eat smaller portions.
• Major food companies (e.g., Applegate, Smithfield) see opportunities in reformulating products with protein and fiber to align with GLP-1 trends, while fast-food chains tied to indulgent offerings may face declining demand.
• While appetite suppression peaks within 7–11 months, long-term changes in spending often reverse if users discontinue the drugs; however, the overall market shift toward healthier, protein-centric eating habits is expected to persist.

Source: Meat + Poultry

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Research uncovers ‘gold standard’ for Salmonella detection.

• A University of Georgia study funded by USPOULTRY identified boot socks as the most effective live production sampling method for detecting Salmonella in broilers and turkeys, with carcass rinses and mitts offering complementary benefits post-harvest.
• The study highlights challenges in linking pre-harvest and post-harvest Salmonella presence, noting low detection sensitivity in pre-harvest testing and poor concordance in serovar presence due to factors like transport stress and cross-contamination.
• Researchers call for a reproducible and practical pre-harvest sampling method to better reflect post-harvest serovars tied to foodborne illness, emphasizing a need to revise outdated best practices in Salmonella monitoring.

Source: Meat + Poultry

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Snacking giant Hershey adding more ‘on trend’ ingredients to its sweets lineup.

• Hershey is diversifying beyond traditional chocolate by incorporating trendy ingredients like peanut butter, wafers, and waffle cone bits into new products, both to meet evolving consumer preferences and offset rising cocoa costs.
• The company continues to invest in its core brands (e.g., Reese’s, Kit Kat) by launching innovations that align with flavor trends and new textures while extending into adjacent snacking formats such as peanut butter-filled pretzels and coated popcorn.
• Hershey’s strategy reflects a broader industry movement, with other players like Ferrero also innovating around nut-based and wafer-based products, emphasizing consumer demand for indulgent yet functional snacks.

Source: Food Dive

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Nestlé vows to eliminate use of synthetic colors in US by mid-2026.

• Nestlé USA will remove all synthetic colors from its product portfolio by mid-2026, outpacing General Mills and Kraft Heinz, who are targeting full removal by the end of 2027 in response to FDA guidance and political pressure.
• Over 90% of Nestlé’s U.S. products already exclude artificial dyes; the company emphasized its ongoing reformulation efforts and commitment to evolving with consumer demand for cleaner labels and healthier options.
• Regulatory momentum is growing, with the FDA encouraging voluntary action and states like West Virginia and Texas passing their own restrictions, signaling potential for more aggressive mandates if industry progress slows.

Source: Food Dive

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How Kraft Heinz measures AI project value.

• Kraft Heinz is using a dual quantitative-qualitative framework to evaluate AI project success, combining business metrics like cost savings and sales uplift with indicators such as adoption rates, engagement scores, and NPS to guide refinement.
• The company’s internal AI engine, KHAI (formerly KraftGPT), now supports 13,000+ employees globally in areas like document summarization, SOP access, SAP rollout support, and decision-making on factory floors, with strong data security safeguards in place.
• A newly formed Decision Intelligence team and tech reorg reflect Kraft Heinz’s broader transformation strategy, leveraging AI and partners like Microsoft and Snowflake to drive productivity and counter six straight quarters of revenue declines.

Source: Food Dive

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Conagra to remove artificial colors in frozen foods by the end of this year.

• Conagra will remove synthetic dyes from its U.S. frozen food portfolio by the end of 2025 and aims to eliminate them from its full U.S. retail lineup by the end of 2027, following growing regulatory and consumer pressure.
• The company joins Nestlé, Kraft Heinz, and General Mills in phasing out artificial colors, aligning with federal voluntary guidance and state-level mandates tied to the Trump administration’s campaign against ultra-processed ingredients.
• While the frozen segment (e.g., Healthy Choice, Birds Eye) appears nearly dye-free already, snack products like Snack Pack will take longer to reformulate, as Conagra balances innovation with supply chain and shelf life considerations.

Source: Food Dive

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Back from the dead: Once discontinued brands get another chance.

• Legacy food and beverage brands like Slice, Odwalla, Hydrox, and Jolt are being revived by new owners aiming to blend nostalgia with modern consumer trends, such as better-for-you ingredients, sustainable packaging, and functional benefits.
• Companies relaunching these discontinued products are leveraging existing brand awareness to shortcut the costly and risky process of building new brands from scratch, though balancing authenticity vs. innovation remains a challenge.
• While the failure rate for new product launches is high, marketers believe retro revivals can resonate with both older consumers and trend-driven younger demographics, particularly when tied to health-conscious reformulations or performance-enhancing attributes.

Source: Food Dive

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Spice giant McCormick warns tariffs could cost $90M a year.

• McCormick warned tariffs could raise costs by up to $90M annually, particularly for spices like black pepper, cinnamon, and vanilla that can't be grown commercially in the U.S.
• The company plans selective Q4 price hikes and is exploring alternate sourcing, though some specialty ingredients—like this year’s Aji Amarillo pepper—have no U.S. substitute.
• Tariffs starting July 9 will impact spices from countries lacking trade deals; McCormick is minimizing single-country dependence while balancing rising consumer demand for exotic flavors.

Source: Food Dive

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Tyson invests $23.5 million in Kentucky plant.

• Tyson is investing $23.5M to expand and modernize its Robards, KY plant, aiming to boost capacity and diversify its protein offerings, with completion expected by spring 2026.
• The facility, which employs over 1,100 people, is receiving up to $3M in tax incentives tied to job retention and capital investment.
• The move follows previous upgrades and a 2022 layoff of 200 workers, reflecting Tyson’s shifting product strategy toward fully cooked, value-added chicken.

Source: Meat + Poultry

JUST FOR FUN

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Tyson goes Jurassic with Mega Dino Nuggets – Meat + Poultry

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