Blog Author

Michael Poole

E: mpoole@pcecompanies.com

Follow me: LinkedIn

Industry Trends

Moderation in Food Price Inflation

In 2025, the food sector will benefit from stabilized price growth, with food prices projected to rise by 1.9%. Food-at-home prices are expected to increase by 0.8%, and food-away-from-home prices by 3.5%—a notable slowdown from the 5.8% surge in 2023, providing relief to consumers and stability to businesses. Between October and November, the Consumer Price Index (CPI) for food edged up 0.1%, as food-at-home prices fell 0.1% and food-away-from-home prices rose 0.3%.1

Increased Regulation for Genetically Modified Crops

Congress narrowly avoided a government shutdown by passing a spending deal that includes a one-year extension of the Farm Bill and $10 billion in economic aid for farmers. The relief aims to help producers facing high costs, low crop prices, and natural disasters. Farm groups stress the importance of this aid to maintain cash flow, secure loans, and stabilize rural economies amid economic uncertainty. One drawback was that the year-round E15 Ethanol provision was removed.2

TreeHouse Foods Acquires Harris Tea

Building on its strategy to focus on higher-growth, higher-margin business lines, TreeHouse Foods acquired Harris Tea, a Harris Freeman & Co. business line, for $205 million, representing an 8.5x trailing-twelve-month adjusted EBITDA multiple. The acquisition includes Harris Tea’s manufacturing facilities as well as the integration of approximately 300 employees. This deal strengthens TreeHouse’s positioning in the fast-growing tea category while advancing its long-term strategy to prioritize health-focused and scalable product offerings.3

Food & Beverage M&A Comeback

Changing consumer preferences, easing interest rates, and portfolio optimization efforts drive momentum for a resurgence in M&A activity. Executives prioritize their most profitable business segments and expand them through targeted acquisitions or organically while divesting from non-core or underperforming business lines. There is particularly strong demand for lower and middle-market firms that can serve as strategic add-ons, enhancing existing operations and driving incremental growth.4

E-Grocery Sales Reach New Highs

Online grocery sales have set a record for the third consecutive month, reaching $9.6 billion in November. Pickup emerged as the top fulfillment method, with over $3.9 billion in sales, surpassing delivery. Meanwhile, the ship-to-home category experienced the highest growth, up over 30% year-over-year, reaching over $1.7 billion. This rapidly growing trend provides supermarkets with a reliable revenue stream through monthly and annual subscription services, reinforcing the value of convenience in consumer behavior.5

Largest Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • Vector Group Ltd.
  • Japan Tobacco Inc.
  • $3,787.37
  • Cheney Bros., Inc.
  • Performance Food Group Company
  • $2,095.00
  • The Duckhorn Portfolio, Inc.
  • Butterfly Equity LP
  • $1,985.04
  • North American Premium Cat feeding and Pet Treating Business of Whitebridge Pet Brands, LLC
  • General Mills, Inc.
  • $1,450.00
  • Specialty pharmacy business of The Kroger Co.
  • CarelonRx, Inc.
  • $464.00
  • TreeHouse Foods
  • Harris Tea
  • $205.00
  • Skyland Grain LLC
  • The Andersons, Inc.
  • $85.00
  • The Watkins Company
  • Cannae Holdings, Inc. ; KDSA Investment Partners
  • $80.00
  • Big Beverages Contract Manufacturing L.L.C.
  • Celsius Holdings, Inc.
  • $75.00
  • Casa Di Bertacchi Corporation
  • Premium Brands Holdings Corporation
  • $66.00

Other Financial Buyer Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • ZOA Energy, LLC
  • Molson Coors Beverage Company
  • $53.00
  • Hormel Health Labs LLC
  • Lyons Magnus, Inc.
  • $25.00
  • Sucro Limited
  • Beta San Miguel, S.A. De C.V.
  • $24.36
  • Primo Water Corporation
  • Primo Brands Corporation
  • $23.01
  • Progressive Care, Inc.
  • NextPlat Corp
  • $9.63
  • Assets of Firesteed Cellars Winery & Tasting Room
  • Integrated Beverage Group LLC
  • $8.10
  • The assets of Empire Coffee Co., Inc.
  • Coffee Holding Co., Inc.
  • $8.00
  • Meier'S Wine Cellars, Inc.
  • Bartow Ethanol of Florida, L.C.
  • $6.25
  • Black Oak Gallery
  • VLPS, LLC
  • $2.06
  • Blüm San Leandro
  • VLPS, LLC
  • $1.12

Other Strategic Buyer Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • Jackalope Brewing Company LLC
  • Tacoma and Hoyt LLC
  • n/a
  • Deiorio Foods, Inc.
  • Encore Consumer Capital, LP
  • n/a
  • Branding Iron Holdings, Inc.
  • Kingswood Capital Management, L.P.
  • n/a
  • Hawaii Coffee Company, LLC
  • Sojourner Consumer Partners, LP
  • n/a
  • Global Animal Products Inc
  • Granite Creek Capital Partners, L.L.C.
  • n/a

 

Source S&P Capital IQ as of 1/17/2025 and PCE Proprietary Data

PCE Transactions

Contacts

David Jasmund

Orlando Office

407-621-2111 |

Read More

Michael Poole

Orlando Office

407-621-2112 |

Read More

Will Stewart

Orlando Office

407-621-2124 |

Read More

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, 20, December, 2024
  2. 2. Sarah, Z. “Farm bill extended in last minute funding deal: What to know.” Agriculture Dive, 21, December, 2024
  3. 3. TreeHouse Foods, Inc. Announces Acquisition of Private Brands Category Leader Harris Tea.” TreeHouse Foods, Inc, 2, December, 2024
  4. 4. Christopher, D. “Food and beverage M&A activity appears to be picking up, CoBank says.” Agriculture Dive, 5, November, 2025
  5. 5. Peyton, B. “Grocery e-commerce sales continue to soar.” Grocery Dive, 11, December, 2024
RELATED RESOURCE
RELATED RESOURCE

Keys to Selling Your Packaged Food & Beverage Company

Read now
contact usan image