July 11, 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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Ferrero Group to acquire WK Kellogg at USD 3.1bn enterprise value.

• The Ferrero Group and WK Kellogg Co announced that they have entered into a definitive agreement under which Ferrero has agreed to acquire WK Kellogg Co, for $23.00 per share in cash, representing a total enterprise value of $3.1 billion.

Source: Mergermarket

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Monogram Capital Partners reacquires Western Smokehouse.

• Monogram Capital Partners, a leading consumer-focused private equity firm, announced today its reacquisition of Western Smokehouse Partners, the leading contract manufacturer of premium, better-for-you meat sticks.

Source: Mergermarket

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Tilia acquires Caputo Cheese from Promus Equity Partners.

• Tilia Holdings LLC, a Chicago-based private investment firm specializing in manufacturing and services businesses in the food chain, announced today that it has acquired Caputo Cheese from Promus Equity Partners on 30 June 2025.

Source: Mergermarket

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Mizkan America acquires Zing Zang.

• Mizkan America, Inc., announced today that it has acquired Chicago-based Zing Zang®, America's #1-selling Bloody Mary brand, for an undisclosed sum. Zing Zang's portfolio includes a wide range of popular non-alcoholic drink mixes.

Source: Mergermarket

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Monster Energy execs purchase Thrifty ice cream business.

• A holding company, linked to Hilton Schlosberg and Rodney Sacks, paid $19.2 million for the Rite Aid-owned brand and a healthcare business.

Source: Food Dive

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Alkaline Water signs MoU for strategic buy of wholesale distribution platform.

• The Alkaline Water Company, Inc., a leader in the beverage industry known for its purified alkaline water, enhanced with Himalayan rock salt, a leader in the premium bottled alkaline water industry, today announced that it has entered into a non-binding Memorandum of Understanding to acquire a regional wholesale distributor and logistics platform located in the central United States.

Source: Mergermarket

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Family-owned foodservice distributors unite with SFS acquisition of R&R Provision.

• Family-owned foodservice distributor Schiff’s Food Service Inc., based in Taylor, Pa., acquired R&R Provision, another family-owned distributor located in Easton, Pa.

Source: Meat + Poultry

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Engelman’s Bakery sale process advancing.

• The sale process for Engelman’s Bakery, a sponsor-backed baked goods manufacturer, has moved into the late stages, according to two sources familiar with the situation.

Source: Mergermarket

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Barchemy sale process moves to second round.

• The sale process of Barchemy, a privately held better-for-you chocolate, nutritional bar, and confectionery ingredients maker, has moved to the second round, according to three sources familiar with the matter.

Source: Mergermarket

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Kraft Heinz considers grocery business spin-off – report.

• Kraft Heinz is considering a spin-off of its grocery business, The Wall Street Journal reported, citing sources. The new entity could fetch a valuation of up to USD 20bn, and the two resultant companies together could be valued at more than its current USD 31bn market cap, the report said.

Source: Mergermarket

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US Foods mulls takeover of Performance Food – report.

• Illinois-based US Foods is considering a bid for its Virginia-based rival Performance Food, a newswire reported, citing sources privy to the situation.

Source: Mergermarket

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What’s ahead for animal ag: Labor shortages, policy shifts and consumer demand.

• Labor shortages are intensifying in animal agriculture due to falling workforce participation, aging demographics, and restrictive immigration policies; CoBank advises rural operators to adopt AI and robotics to maintain productivity.
• While the new “One Big Beautiful Bill” brought wins for farmers and ranchers, it cut $200B from farm bill programs and slashed food assistance and rural development funding, raising concerns about long-term sustainability.
• Despite economic pressure and low consumer sentiment, protein demand remains robust, with pork and chicken benefiting from promotions and seasonal demand, and beef prices reaching record highs due to tight supply and elevated quality grading.

Source: Meat + Poultry 

Supermarkets are losing ground with younger shoppers, research finds.

• Younger generations (Gen Z, millennials, Gen X) are shifting away from traditional supermarkets in favor of Walmart and Aldi, with just 8% of Gen Z reporting their most recent grocery trip was to a supermarket.
• Older generations still favor supermarkets, with 28–31% of Baby Boomers and the Silent Generation naming them as their most recent grocery destination, ahead of Walmart or Aldi.
• Digital tools and store experience are influencing spend: 52% of shoppers now consult digital circulars, and those exposed to pleasant store aromas spent 25% more than average.

Source: Grocery Dive

Is the tide shifting for grocery private brands?

• While the frequency of private label purchases has dipped slightly in 2025, private brands remain central to grocers’ growth strategies, with higher perceived quality now more important to shoppers than just low prices.
• Retailers with 40%+ of sales from private brands are outperforming peers, gaining stronger emotional ties with shoppers and higher wallet share; premium-tier store brands like Walmart’s Bettergoods and Target’s Good & Gather are key to this strategy.
• Price sensitivity has moderated amid economic stability, but households with children still value store brands more than others; success hinges on strategic portfolio management, brand clarity, and tiered offerings (value, national-brand-equivalent, premium).

Source: Grocery Dive

RTD beverages continue to shine.

• The global ready-to-drink (RTD) beverage market is projected to exceed $800 billion in 2025 and reach $1.2 trillion by 2032, driven by demand for convenience, protein fortification, sugar reduction, and digestive health benefits.
• Consumer preferences are evolving toward functional beverages, prompting innovation in dairy-based RTD drinks that incorporate probiotics and reduced sugar without sacrificing taste.
• Industry experts are highlighting next-gen membrane technologies as key to improving dairy processing efficiency, supporting both yield and energy savings as demand for RTD and value-added dairy products grows.

Source: Dairy Foods

The nonalcoholic spirits segment is blowing up and getting better.

• The nonalcoholic spirits market is rapidly maturing, with improved taste, texture, and variety thanks to innovations like dealcoholized distillates and flavor layering, making products viable for sipping, not just mixing.
• Demand is rising in hospitality and retail, but costs remain high due to premium ingredients and complex production, challenging the perception that zero-proof should mean cheaper.
• Emerging subcategories like nonalcoholic aperitifs, bitters, and RTDs (e.g., Lyre’s, Ghia, Everleaf) are gaining traction by offering balanced, low-sugar alternatives that rival traditional cocktails in both complexity and experience.

Source: Food Dive

Trump signs spending and tax bill with major SNAP changes.

• President Trump signed the “Big Beautiful Bill,” which tightens eligibility for SNAP and Medicaid, introduces a 5% state match requirement for SNAP starting in 2028, and expands military spending while extending expiring tax cuts.
• While some of the most severe SNAP restrictions were dropped from the final bill, the changes still sparked concern among food advocates and grocers over reduced access and consumer spending power.
• With over 40 million Americans relying on SNAP and many already struggling to cover monthly grocery needs, critics argue the bill shifts resources away from low-income households while adding to the national debt.

Source: Food Dive

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By the numbers: In a grind era.

• Ground meats, led by beef, generated nearly $18B in 2024 U.S. sales, driven by affordability and versatility amid inflation and the tightest cattle supply since 1951; ground beef alone accounted for ~85% of grind dollar sales.
• Younger shoppers (Gen Z, Millennials) over-index for ground turkey, chicken, lamb, and other specialty meats, favoring pre-seasoned or blended grinds, while Boomers and lower-income households continue to favor traditional ground beef.
• Retailers are encouraged to explore merchandising strategies such as grind-specific sections, varied product tiers, and personalized promotions to expand reach and drive frequency across shopper segments.

Source: Meat + Poultry

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Tariffs shake up global spice market.

• Tariffs up to 50% on imported spices from over a dozen countries will take effect August 1, increasing costs for food manufacturers that rely on ingredients like vanilla, cinnamon, and black pepper.
• Many spices impacted cannot be grown in the U.S., meaning higher prices are likely to be passed to consumers or replaced with artificial alternatives.
• McCormick estimates a $90M annual hit but plans to offset costs, while smaller companies like The Spice House face greater financial strain and supply instability.

Source: Food Dive

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Specialty Grocers Sprouts and NGVC Display Market Strength.

• Despite macroeconomic volatility and consumer pullbacks, Sprouts Farmers Market (+447%) and Natural Grocers (+200%+) have significantly outperformed peers since 2022, driven by strong execution, health-conscious consumer trends, and niche positioning.
• Both grocers credit "attribute-driven" demand (e.g. paleo, vegan, gluten-free) and loyal, educated consumer bases—not necessarily wealthy, but deeply committed to healthier lifestyles—for their resilience and growth.
• Factors like the rise of GLP-1 drugs, broader skepticism toward processed foods, and limited competition from grocery giants help explain not just insulation from industry headwinds but notable upside in sales and margins.

Source: Food Institute

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Meat-ish, Dairy-ish: Is There a Market for Hybrid Plant-Based?

• Hybrid plant-based products blending animal and plant ingredients (e.g., Applegate’s Well Carved, PlanetDairy's blended milk) are targeting flexitarians—consumers reducing animal intake without going fully vegan—rather than strict vegetarians or vegans.
• The success of this emerging category hinges on clear marketing, strong sensory performance (taste/texture), and transparency; many see potential in appealing to health-conscious, sustainability-minded shoppers seeking familiar, nutritious, and affordable options.
• Industry opinions are mixed: some view hybrids as a natural evolution of consumer habits, while others caution that consumers may prefer fully plant-based alternatives or feel misled by unclear messaging.

Source: Food Institute

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USDA closes Mexican border again for cattle shipments over NWS concerns.

• USDA reclosed U.S. ports to cattle, bison, and equine shipments from Mexico on July 9 after a new case of New World Screwworm (NWS) was reported in Veracruz, reversing a planned reopening.
• Agriculture Secretary Brooke Rollins cited the need for further quarantine and pest control efforts; industry groups like NCBA and R-CALF USA strongly supported the move.
• USDA is investing $8.5M into a domestic sterile fly dispersal facility in Texas to combat NWS and is continuing on-the-ground monitoring efforts in Mexico.

Source: Meat + Poultry

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Wayne-Sanderson Farms puts new feed mill online.

• Wayne-Sanderson Farms opened a $43M feed mill in Danville, Arkansas, capable of producing over 8,500 tons of feed weekly with advanced automation and nine tailored formulations.
• The facility strengthens supply chain efficiency with high-capacity grain receiving systems, increased storage, and local ingredient sourcing, supporting both operations and regional farmers.
• The investment reinforces the company’s commitment to Arkansas agriculture, creating jobs and economic growth while supporting sustainability and community partnerships.

Source: Meat + Poultry

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Hershey names Wendy’s chief as next CEO.

• Hershey appointed Wendy’s CEO Kirk Tanner as its next CEO, effective August 18, following Michele Buck’s planned retirement after leading the company for eight years.
• Tanner brings over 30 years of experience from PepsiCo, where he scaled brands like Pure Leaf and bubly and held senior roles across beverages, snacks, and foodservice.
• He inherits a company facing headwinds including a 14% Q1 sales decline and rising cocoa tariffs, but also benefits from Buck’s legacy of portfolio diversification and major snack acquisitions.

Source: Food Dive

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Lactalis USA to spend $75M to expand New York dairy plants.

• Lactalis USA is investing over $75M to expand its Buffalo and Walton, NY dairy plants, adding new equipment and creating 50+ jobs to meet growing demand for high-protein dairy.
• The Buffalo site makes Galbani-brand cheeses and whey, while Walton produces Breakstone’s sour cream and supports cottage cheese growth; together they process 800M+ pounds of raw milk annually.
• This is part of a broader U.S. expansion strategy following acquisitions like Stonyfield, Siggi’s, and Kraft’s cheese brands, and follows a $55M investment in its California facility last year.

Source: Food Dive

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General Mills, Hormel Foods reignite partnership with LTO.

• General Mills and Hormel Foods have teamed up again to launch a limited-edition Cinnamon Toast Crunch bacon-flavored cereal, blending General Mills’ Cinnadust with Hormel Black Label’s smoky bacon flavor.
• The new product builds on the success of their 2024 collaboration—Cinnamon Toast Crunch-flavored thick-cut bacon—and is positioned as a bold twist on traditional breakfast items.
• Available starting July 8 in 6-oz pouches for $5.84, the LTO aims to drive novelty-driven consumer engagement and cross-category buzz in both cereal and breakfast meats.

Source: Meat + Poultry

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Olipop doubles down on health claims as Pepsi, Coke enter better-for-you soda space.

• Olipop is investing in scientific research to validate its health claims, publishing studies showing benefits like improved blood sugar response, aiming to differentiate itself as Pepsi and Coke enter the better-for-you soda space.
• The brand, which contains prebiotic fiber and less than 50 calories per can, turned profitable in 2024 with sales doubling to over $400M, driven by growth from legacy soda consumers and new shoppers.
• Despite increasing competition, CEO Ben Goodwin believes Olipop remains the category’s most authentic player, citing its early innovation, strong growth, and data-backed positioning.

Source: Food Dive

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Andrew Baltz promoted to COO at Creekstone Farms.

• Andrew Baltz has been promoted to Chief Operating Officer at Creekstone Farms, where he will focus on boosting productivity, automation, and expanding value-added product lines.
• Since joining in 2024, Baltz increased daily processing capacity from 2,100 to 2,500 head and led key operational improvements; he previously held engineering and automation roles at Tyson Foods.
• Creekstone aims to take an adaptive leadership approach amid global trade and inflation pressures, recently expanding its portfolio with Irodori Wagyu and Heritage Duroc pork.

Source: Meat + Poultry

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CDC concludes bird flu emergency.

• The CDC officially ended the bird flu (H5N1) emergency, citing stabilized public health conditions and no evidence of person-to-person transmission following 70 human cases and one death since 2024.
• Future H5N1 data will be integrated with routine influenza updates, while animal case tracking has been shifted entirely to the USDA’s reporting system.
• Health officials remain cautious, anticipating a potential uptick in cases after summer due to migratory bird patterns, with USDA continuing its $1B HPAI prevention efforts.

Source: Meat + Poultry

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USDA secretary states ‘no amnesty’ for migrant farm workers.

• USDA Secretary Brooke Rollins announced there will be “no amnesty” for migrant farmworkers and mass deportations will continue, while emphasizing the need for automation and potential Medicaid recipients to fill labor gaps.
• Despite President Trump’s recent comments suggesting possible deportation exemptions for farm labor, the administration confirmed that worksite enforcement will remain in effect.
• Meat industry groups are urging the administration to expand visa reforms, particularly around the H-2 program, to help stabilize labor in the agricultural and meat processing sectors.

Source: Meat + Poultry

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Kraft Heinz recalls Oscar Mayer turkey bacon over listeria risk.

• Kraft Heinz is recalling over 360,000 pounds of Oscar Mayer fully cooked turkey bacon due to potential listeria contamination, though no illnesses have been reported.
• The recall covers products produced between April 24 and June 11, distributed across the U.S. and exported to the British Virgin Islands and Hong Kong.
• Listeria-related recalls are rising industry-wide, with 65 cases in 2024, while USDA oversight has weakened following the Trump administration’s dissolution of its listeria advisory committee.

Source: Food Dive

JUST FOR FUN

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Leftovers: Cinnamon Toast Crunch fries up bacon cereal | Welch’s fruit snacks get juicy – Food Dive

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