M&A Market Reviews - Food and Drink Manufacturing sector

M&A Market Reviews - Food and Drink Manufacturing sector

Our analysis and commentary on M&A activity and trends in the Food and Drink sector


Blog: Five ways food and drink businesses can combat inflationary pressure

Inflationary pressure is the latest challenge to hit the food and drink industry.  

Although overall inflation fell to 8.7% in April, a smaller drop than forecast by the Bank of England, consumers are clearly still feeling the pinch. Food inflation continues to run much higher than overall inflation, with the ONS putting the rate in April at c.19.1%, the prices of food and non-alcoholic drinks having risen at the fastest rate in more than 45 years over the 12 months to March 2023.

As cost of living pressures are affecting consumer choices and behaviours, shifts from red meat to poultry, fresh to frozen, and lower overall FMCG brand loyalty, combined with higher price sensitivity, are all examples of changing consumer preference in the current economic environment.

How are food businesses responding?

Food businesses are reacting to rising costs in a range of different ways. Depending on the dynamics of the market the business is operating in, we see businesses typically adopting one or more of the following five strategies:

  • Passing on the increased costs to customers as much as possible
  • Adding value or differentiating product to validate increased prices
  • Focusing on efficiency savings in the business
  • Substituting the product but maintaining the price point
  • Maximising available cash support by applying for R&D relief and grants where possible

Read the full article

Investment into the UK Circular Economy

Our latest Circular Economy report explores the changing attitude of private equity, venture capital investors and debt funders towards Circular Economy businesses in 2022.

A spotlight on the Food & Drink sector shows continued investor interest in innovative businesses in the sector, and reviews the trends in circular investment, with continued deal activity in businesses using circular inputs to make food production more sustainable, or circular business models.

We also feature a case study on Cocogreen, a UK headquartered business that enables its global blue-chip customers to accelerate plant growth sustainably, with insight into the fund's investment from David Mowat, co-founding partner of Circularity Capital.

Read the report


Read our previous reports

2022 edition

2021 edition