July 25, 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 acquires full ownership of Dyla Brands.

• Keurig Dr Pepper (KDP) has acquired full ownership of Dyla Brands, a leading player in powdered drink mixes and liquid water enhancers. 

Source: Mergermarket

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Generous Brands to acquire Health-Ade.

• Generous Brands, a Butterfly portfolio company and a leader in premium refrigerated beverages offering the Bolthouse Farms, Evolution Fresh and SAMBAZON brands, announced it has signed a definitive agreement to acquire Health-Ade, a fast-growing leader and innovator in kombucha tea beverages, from private equity firms First Bev and Manna Tree Partners, who will also continue on as minority shareholders in Generous Brands.

Source: Mergermarket

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Farmer Brothers explores strategic alternatives.

• Farmer Bros. Co. (NASDAQ: FARM), a leading roaster, wholesaler and distributor of coffee, tea and allied products, today announced it has initiated a process to evaluate strategic alternatives aimed at maximizing shareholder value. Farmer Brothers has engaged North Point Mergers and Acquisitions, Inc. as its financial advisor and Winston & Strawn LLP as its legal counsel to work with the board, company and strategy committee as Farmer Brothers evaluates potential opportunities.

Source: Mergermarket

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HOPE Hydration raises USD 20m in Series A round led by Pentair.

• HOPE Hydration, the company which delivers free filtered water through its digitally connected water refill HydroStations™, today announced the successful completion of a $20 million Series A funding round, led by Pentair plc, with additional participation from Burnt Island Ventures.

Source: Mergermarket

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PAK Quality Foods acquires key assets of Las Colinas International.

• PAK Quality Foods LLC, a portfolio company of Cross Rapids Capital and a food distributor, serving foodservice, retail, and institutional customers throughout Texas and Eastern New Mexico, today announced that it has acquired substantially all assets of Las Colinas International, Inc., d/b/a Formosa Foods, a family-owned food distributor, based in Dallas.

Source: Mergermarket

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Consumer sentiment rises slightly on hopes inflation will ease.

• July Sentiment Hits 5-Month High: Consumer sentiment ticked up as short-term business outlooks improved and one-year inflation expectations fell to 4.4% from 5%, according to the University of Michigan.
• Personal Finance Concerns Persist: Despite the overall gain, household expectations for personal finances declined, and sentiment remains well below December levels and the historical average.
• Inflation Outlook Still Key: Survey director Joanne Hsu noted that consumer confidence is unlikely to fully recover without greater assurance that inflation and trade policy will remain stable.

Source: Food Dive

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How AI is disrupting food innovation – here’s why you should be paying attention.

• The Institute of Food Technologists launched an AI-powered R&D assistant “Sous” that uses its peer-reviewed database to streamline product formulation and development cycles.
• Tastewise leverages billions of food-related data - the platform analyzes trillions of “food signals” through social media, menus, and other resources to forecast emerging flavor trends like adaptogens and fusion cuisines before popularity.
• NielsenIQ highlights that integrating buying habits with social sentiment through AI helps reduce uncertainty in new product introductions.

Source: Food Institute

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Tariffs, UPFs and GLP-1 revealed as key midyear trends.

• Tariffs are driving consumer and operator concerns, with frequent U.S. policy changes increasing prices, disrupting product availability, and inflaming inflation fears, over half of operators say tracking tariffs is challenging.
• GLP‑1 weight-loss drug users are shifting food purchases, with 40% buying less overall and 26% changing what they buy, boosting demand for fresh produce, poultry, and seafood while cutting fried and sugary foods.
• Growing consumer awareness of ultra‑processed foods nearly 75% are more concerned, and operators want manufacturers to reduce UPFs, there's increasing interest in natural colorants like butterfly pea flower, ube, matcha, and hibiscus as alternatives to artificial dyes.

Source: Meat & Poultry

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Refrigerated goods, beverages lead private brand growth: report.

• Store-brand dollar sales grew 4.4% in the first half of 2025, more than quadruple the 1.1% growth seen by national brands.
• Private-label market share hit all‑time highs, with 21.2% of dollar sales and 23.2% of unit sales during that period.
• Leading category growth was in refrigerated goods (up 13% in dollars), followed by beverages +4.8% and frozen foods +3.8%.

Source: Food Dive

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End to Mexico tomato pact could raise prices, cut supplies.

• The U.S. government terminated the 2019 Tomato Suspension Agreement with Mexico and imposed a 17.09% antidumping tariff on Mexican tomato imports, impacting a market worth about $3.12 billion in 2024.
• The tariff is expected to raise U.S. tomato prices by around 8¢ per pound, translating to approximately a 7–10% increase in fresh tomato prices, potentially reducing product variety and supply.
• While U.S. growers praise the move, citing stronger market opportunities and “level playing field” benefits, importers and business groups warn of supply chain disruptions, higher consumer costs, and potential losses to jobs and $8.3 billion in economic output tied to tomato imports.

Source: The Food Institute

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3 textures Gen Z can’t resist.

• Gen Z craves unique mouthfeel experiences, including popping boba, slushies, and textured inclusions that make drinks interactive and fun.
• Visual and sensory appeal drives engagement, bright colors, suspended ingredients, and unusual formats that encourage sharing on platforms like TikTok and Instagram.
• Non-alcoholic customization dominates, as Gen Z leans into healthier, alcohol-free beverages, they expect personalization with bold textures and customizable mix-ins.

Source: The Food Institute 

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U.S. meat exports poised for continued growth under new US-Japan agreement.

• Japan and the U.S. agreed to update the beef safeguard system, requiring all three conditions to be met before Japan imposes higher tariffs, creating a more predictable and less disruptive export environment for U.S. beef exporters.
• The revamped arrangement supports continued expansion of U.S. meat exports, beef and pork, to Japan, reinforcing Japan as a major and growing market for U.S. producers.
• U.S. officials and industry groups, including the U.S. Meat Export Federation and the U.S. Agriculture Secretary, praised the deal as a significant opportunity to enhance market access and competitive positioning in the Japanese market.

Source:  Meat + Poultry

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Are consumers in a ‘Spending Recession’ for food items?

• Consumers are in a spending recession with inflation, low savings, rising debt, and even the use of “buy now, pay later” for groceries indicate that many shoppers spending less.
• Shoppers are favoring frozen meals, budget-friendly proteins, fresh produce, and private-label brands at mass retailers, dollar stores, and stores over more premium or indulgent options.
• Rather than a one-size-fits-all approach, brands must cater to different consumer segments, addressing complaints of shrinkflation, appealing to middle-income buyers, and not overlooking Boomers who prefer in-store shopping.

Source: The Food Institute

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Trump administration reaches Indonesia trade framework to expand for U.S. ag exports.

• Indonesia will remove tariffs on ~99% of U.S. industrial, food, and agricultural exports, while the U.S. will impose a 19% reciprocal tariff on Indonesian goods.
• The deal exempts U.S. food and agricultural products from import licensing and recognizes U.S. inspection systems, including U.S. meat, poultry, and dairy facilities greatly reducing barriers.
• Comments from U.S. and Indonesian officials emphasizing economic and agricultural collaboration.

Source: Meat + Poultry

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Tariffs trigger operational overhauls: F&B leaders forecast unrest Into 2026.

• F&B leaders expect ongoing trade tensions and tariffs, covering countries like Mexico, Canada, and China, to persist well into 2026, bringing sustained margin pressure.
• Companies are scrambling to overhaul sourcing, packaging, and supply‑chain strategies, shifting country of origin, narrowing product lines, and stockpiling goods to adapt.
• As consumers tighten budgets due to rising costs, private‑label products are gaining market share in undifferentiated categories like cheese, eggs, and bottled water.

Source: The Food Institute

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Gen Z wants to turn everything into a sauce, including soda.

• In a Rubix Foods NEXT Flavor Report survey of over 45,000 Gen Zers, 10% said they'd want soda to exist as a sauce, and 56% of those named Dr Pepper.
• 71% of those who want soda sauces would seek out a restaurant serving Dr Pepper–flavored barbecue on chicken; YouTube searches for “coke BBQ sauce” jumped 60% from Nov 2023.
• About 7% of respondents expressed interest in alcoholic beverage–flavored sauces—margarita (34%), Bloody Mary (17%), beer and wine (6% each). Bourbon BBQ sauces are projected to grow 33% on menus through 2028.

Source: Food Institute

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Ag spending bill moves out of committee.

• The Senate Appropriations Committee advanced the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act by a 27–0 vote, moving it one step closer to becoming law.
• The bill funds USDA agencies with $27.1 billion, boosting programs for biosecurity, food safety, animal agriculture, and rural development.
• It supports diverse sectors, from strengthening rural communities and low‑income family nutrition to enhancing biosecurity and food safety measures.

Source: Meat + Poultry

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Competitive beverage dynamics: Chinese Chains vs. Starbucks.

• Chinese chains entering U.S. market. Luckin Coffee and Cotti Coffee have launched storefronts in New York City, bringing their low-cost, tech‑driven models - cashier-less ordering, app‑based loyalty pricing like $1.99 or $0.99 coffees - to challenge Starbucks in the U.S.
• Starbucks emphasizes its in-store experience, promoting the “third place” concept, ceramic mugs, and human connection, while Luckin and Cotti prioritize convenience, affordability, and localized menu innovation including fruit‑infused brews.
• Starbucks has cut prices on dozens of beverages by about $0.70 (¥5) to compete with domestic chains’ low‑price positioning, signaling retreat from its traditional premium pricing strategy.

Source: The Food Institute

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How GLP-1 weight loss drugs are reshaping the food industry.

• Consumers using GLP‑1 drugs (Ozempic, Wegovy) eat approximately 700 fewer calories per day, significantly reducing intake of processed foods, sugary beverages, refined grains, and beef, while increasing consumption of fruits, leafy greens, and water.
• Households with GLP‑1 users cut grocery spending by about 6%, which translates to lower purchases of calorie-dense items, though demand for protein-rich and nutrient-dense foods is on the rise.
• Food and beverage companies are responding by developing smaller portions and nutritionally dense “GLP‑1 friendly” products, emphasizing high protein, fiber, and portion-aligned formats to meet evolving consumer preferences.

Source: The Food Dive

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Hershey to raise candy prices by double digits amid elevated cocoa costs.

• Hershey is planning to raise U.S. retail prices this fall by low double-digit percentages, affecting many of its top chocolate brands, as a response to the unprecedented cost of cocoa.
• The increases reflect persistently elevated cocoa prices, despite a moderate recent decline, prices remain well above historical norms, not driven by tariffs or trade policy but by commodity inflation.
• To reduce reliance on cocoa, Hershey is investing in less cocoa-intensive products, expanding into categories like snacks, gummies, and better-for-you items, and has requested tariff exemptions to mitigate cost pressure.

Source:  Food Dive

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Amazon Prime Day 2025 inspires nearly 155K orders.

• Prime Day 2025 generated $24.1 billion, nearly doubling last year’s $14.2 billion, despite many forecasting diluted interest.
• Groceries, health/wellness, and household essentials were top-performing segments - Premier Protein Shakes led by unit sales, with Liquid I.V. in third place.
• Nearly 20% of revenue came from social media influencers, second only to paid search, and GenAI‑led product decisions surged 3,300% YoY.

Source: Food Institute

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PepsiCo to launch Cheetos and Doritos versions without artificial colors, flavors.

• PepsiCo will introduce new versions of Cheetos and Doritos that contain no artificial colors or flavors.
• It plans to rebrand Lay’s and Tostitos to spotlight their simplified ingredient profiles, no synthetics, just potatoes, oil, and salt.
• The company is shifting to cleaner oils, notably avocado and olive oil, while decreasing reliance on canola/soybean oils.

Source: Food Dive

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Pilgrim’s to invest $400 million in Georgia prepared foods facility.

• Pilgrim’s is committing $400 million to build a multi‑phase prepared foods plant in LaFayette, Walker County, Georgia, as part of an expansion of its prepared‑foods operations.
• At full capacity, the new facility is expected to generate more than 630 new jobs, bolstering local employment and economic development.
• The facility will produce fully cooked chicken products to support growth of Pilgrim’s brands like Just Bare, Pilgrim’s, and Gold Kist, targeting both retail and foodservice channels.

Source: Meat + Poultry

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Coca-Cola to sell alternative cane sugar version of its signature cola in U.S.

• Fall Launch Planned: Coca-Cola will introduce a version of its flagship soda made with U.S. cane sugar this fall, while continuing to offer the high fructose corn syrup formula.
• Expanding Consumer Choice: The new product is meant to complement the company’s core portfolio and provide more options based on consumer preferences.
• Political and Health Context: The move follows public pressure, including recent comments from former President Trump and HHS Secretary Robert F. Kennedy Jr., who criticized high fructose corn syrup for its health risks.

Source: Food Dive

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Liquid Death to launch energy drinks, entering $23B category.

• New Product Line Debuts in 2025: Liquid Death will release Liquid Death Sparkling Energy in four flavors with 100mg of caffeine—positioned as a lower-caffeine, better-for-you alternative in the crowded energy drink market.
• Expanding Fast-Growing Portfolio: Energy drinks mark the brand’s fourth category after water, flavored sparkling water, and iced tea; Liquid Death saw $303M in scanned sales in the past year, up 63% year-over-year.
• Strategic Growth Move: The launch targets health-conscious consumers and leverages existing brand loyalty, with energy drinks currently the No. 1 item purchased alongside Liquid Death products.

Source: Food Dive

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Cereal maker WK Kellogg to remove artificial colors by 2027.

• Full Removal by End of 2027: WK Kellogg Co will eliminate artificial colors from Froot Loops, Apple Jacks, and other cereals by the end of 2027.
• School & New Product Commitments: Starting in 2026, no new products will include synthetic dyes, and school-served cereals will be color-free by the 2026–27 academic year.
• Industry-Wide Shift: Kellogg joins major food brands like General Mills, Kraft Heinz, and Nestlé in pledging to remove artificial colors amid growing consumer demand for cleaner labels.

Source: Food Dive

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Northwest meat processors association expands to include Utah processors.

• Regional Expansion: The NWMPA has officially extended membership to Utah, joining existing representation of processors from Washington, Oregon, and Idaho.
• Strong Utah Response: Utah processors have attended NWMPA conventions since 2023, with growing participation and demand for industry advocacy and support.
• Increased Opportunities: Utah members gain access to scholarships, networking, education, and representation, reinforcing NWMPA’s commitment to industry growth and inclusion.

Source: Meat + Poultry

JUST FOR FUN

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Leftovers: Fla-Vor-Ice brightens freeze pops with Crayola | Mission launches chickpea tortillas – Food Dive

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