Food & Drink: 2020 Manufacturing Review
26 March 2021
The food and drink manufacturing sector faced a whirlwind of a year in 2020 overcoming a variety of obstacles including stockpiling, supply chain issues, foodservice closures and preparations for Brexit.
Despite the many challenges, the sector has adapted, remained resilient and in many cases thrived. After a six month slowdown of M&A transactions in March 2020 as a result of the COVID-19 pandemic, transactions bounced back in Q4 2020 with half of all deals occurring in the last three months of the year.
Interest from international investors increased as the proportion of cross border deals rose by 12% and private equity remain keen to invest in this resilient sector.
Our report looks at some of the key transaction trends in 2020, including increasing interest from investors in the pet food market, which is growing fast due to the rising numbers of pet owners in the UK.
We also examine some of the key challenges facing food and drink manufacturers in 2021 and highlight measures being rolled out to help businesses navigate this year.