Food companies witnessed a period of robust profits and growth post-pandemic. However, economist Billy Roberts noted in a recent CoBank report that the majority of sales growth for food and beverage brands originated from price inflation. As this inflationary pressure eases, companies are now under the strain to revert to profitable volume-led growth, aiming to sell a greater quantity of food overall.
Uncover the Future of Food Companies Amidst Economic Shifts
Acquisitions as the Answer
For upstart brands that faced a setback in the wake of the plant-based gold rush and higher interest rates, acquisitions present a promising solution. These brands have seen investors becoming more cautious. But the criteria for successful acquisitions have never been more stringent, not only in terms of financial performance but also in terms of offering unique products. 1: Just having a similar or copied product won't cut it. Consumers will simply opt for private label alternatives to save money. It requires a distinct offering that stands out in the market. 2: Acquisitions provide a way for these upstart brands to leverage existing resources, expertise, and customer bases. It allows them to accelerate their growth and gain a competitive edge.General Mills Veteran's Journey
Young, a veteran of General Mills, joined Manna Tree two years ago. Manna Tree has offices in Colorado and Minneapolis and focuses on health and wellness-centric companies that have already achieved a certain level of growth and now need assistance in navigating the final stages before a public offering or acquisition. 1: The firm's investment range of $25 million to $75 million enables it to support a diverse set of companies. It provides the necessary capital to fuel their growth and expansion. 2: With a portfolio that includes New Primal, Health-Ade kombucha, and Good Culture cottage cheese, Manna Tree is actively involved in shaping the future of the food industry. These investments showcase its commitment to promoting healthy and sustainable food options.
