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Michael Poole

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Industry Trends

Easing Inflation: Food Prices Slow, Offering Relief to Consumers

In 2024, food prices are projected to rise by 2.2%, a significant decrease from the 5.5% increase seen in 2023. Between July and August, the Consumer Price Index (CPI) for food edged up by 0.1%, with food prices at home dipping by 0.1% and food away from home increasing by 0.3%. This easing inflation offers relief to consumers who have experienced a sharp decline in purchasing power in recent years. 1

Are Grocery Stores Intentionally Keeping Prices High?

The Federal Trade Commission (FTC) is preparing to investigate persistently high grocery prices. Chair Lina Khan has requested an investigation to determine whether grocery chains are inflating prices to keep profits high despite costs declining for essential goods. The FTC’s Strike Force on Unfair Pricing aims to expose potential corporate misconduct and ensure fair pricing for consumers. A commission vote must be held to determine whether an investigation will occur.2

Verlinvest Acquires Insomnia Cookies

Verlinvest, a consumer-focused investment firm, has acquired Insomnia Cookies, a popular late-night sweets retailer, from Krispy Kreme for $127.4 million. Leveraging their experience with brands like Tony’s Chocolonely and Oatly, Verlinvest aims to expand Insomnia Cookies domestically and internationally. This acquisition reflects the growing snacking sector, driven by rising consumer demand for convenience and indulgence. As the sector expands, more acquisitions are expected to take place.3

Cal-Maine Embraces Ready-To-Eat Meals

Cal-Maine, the largest U.S. egg producer, has acquired a majority stake in Crepini, a producer of wraps and crepes. This strategic acquisition enhances Cal-Maine's ability to offer value-added products and aligns with shifting consumer trends toward convenience. As more people opt for ready-to-eat and prepared meals over traditional home-cooked dishes, Cal-Maine stands to benefit by diversifying its product line beyond eggs.4

Farm Income Slows in 2024 but Remains Above Historical Average

Net farm income is projected to reach $140.0 billion in 2024, a decrease of $10.2 billion or 6.8% from 2023 after adjusting for inflation. Despite this drop, 2024 income remains 15.2% higher than the 20-year average from 2004–2023. As profits shrink, the need for farmers to enhance efficiency through technological advancements and other strategies becomes more important.5

Largest Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • Whole Earth Brands, Inc.
  • Ozark Holdings, LLC
  • $628.96
  • Summer Garden Food Manufacturing
  • Lassonde Industries Inc.
  • $280.00
  • Insomnia Cookies, LLC
  • Mistral Capital Management, LLC; Verlinvest Usa, Inc.
  • $172.40
  • Renaissance Food Group, LLC
  • F&S Fresh Foods
  • $83.00
  • Abelei, Inc.
  • T. Hasegawa U.S.A. Inc.
  • $48.00
  • Certain Assets and vitamin chain with five store in Oklahoma and Kansas
  • Healthy Choice Markets VI, LLC
  • $7.60
  • Bio-Vet, Inc.
  • Anpario plc
  • $7.30
  • Illumination Holdings, Inc.
  • Illumination Holdings, Inc.
  • $1.50
  • iGourmet LLC
  • Professional Chefs
  • $0.70

Other Financial Buyer Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • Metro Franchising Commissary, LLC
  • Beach Point Capital Management LP
  • n/a
  • Miracapo Pizza Company LLC
  • Brynwood Partners Management LLC
  • n/a
  • Doheny Road Spirits LLC
  • Rodeo DriveCapital
  • n/a
  • TRU Aseptics, LLC
  • Schreiber Foods Inc.
  • n/a
  • Glenn Wayne Wholesale Bakery Inc.
  • Tide Rock Holdings LLC
  • n/a

Other Strategic Buyer Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • GWG Enterprises, LLC
  • Gaucho Group Holdings, Inc.
  • n/a
  • Ritual Beverage Company LLC
  • Diageo North America, Inc.
  • n/a
  • MountainKing Potatoes
  • Earthfresh Foods Corp.
  • n/a
  • Manufacturing facility located in Hugoton, Kansas
  • Flora Food Group B.V.
  • n/a
  • Axium Foods, Inc
  • Cheeze Kurls, LLC
  • n/a
  • Wine Retriever LLC/Splash Wines, Inc
  • Full Glass Wine Co., LLC
  • n/a
  • First Coast Flavors, LLC
  • Mosaic Flavors
  • n/a
  • Montana Gluten Free Processors, Llc
  • Bay State Milling Company
  • n/a
  • Lombardi's Prime Meats, LLC
  • Guinta's Prime Shop
  • n/a

 

Source S&P Capital IQ as of 10/10/2024 and PCE Proprietary Data

PCE Transactions

Contacts

David Jasmund

Orlando Office

407-621-2111 |

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Michael Poole

Orlando Office

407-621-2112 |

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Will Stewart

Orlando Office

407-621-2124 |

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Data Assumptions

This report represents transaction activity as mergers & acquisitions, consolidations, restructurings and spin-offs. Targets are defined as U.S. Based companies with either foreign or U.S. based buyers. Transaction information provided is based on closed dates only.

Glossary

EBIT - Earnings Before Interest and Taxes
EBITDA - Earnings Before Interest, Taxes, Depreciation, Amortization
LTM - Last Twelve Months
TEV - Total Enterprise Value

Sources:

  1. 1. Economic Research Service. “Summary Findings.” U.S. Department of Agriculture.
  2. 2. Peyton, B. “FTC chair presses for investigation into high grocery prices.” Grocery Dive, 2, August, 2024.
  3. 3. Verlinvest Partners. “Verlinvest partners with Insomnia Cookies.” Verlinvest Partners, 23, July 2024.
  4. 4. Sarah, Z. “Cal-Maine takes majority stake of egg processor, expanding into prepared foods.” Food Dive, 13, September, 2024.
  5. 5. USDA Economic Research Service. “Highlights from the September 2024 Farm Income Forecast.” USDA Economic Research Service, 5, September, 2024.
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