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Asking prices for acquisition targets are rising as food companies use M&A to address a “desperate” need for growth, making it more difficult for Mondelēz International to complete a deal, the Oreo maker’s CEO said.
Food companies are turning to deals as a way to add high-growth, trendy brands to the mix to revive slowing sales in recent years. This is actually creating a more competitive market for companies that are recording growth, increasing overall valuations.
Dirk Van de Put, CEO of Mondelēz, said: New York Conference Consumer Analyst Group In February, the companies said they had been “so desperate for growth over the past two years that the price we thought was reasonable to acquire the company has disappeared.”
Few companies have been as active in M&A as Mondelēz since Van de Put acquired the food manufacturer in 2017. The company has further consolidated its dominant position in snacking and premium products through approximately a dozen acquisitions over the past decade, acquiring brands such as: Tate Bakeshop, perfect snack, cliff bar And a premium chocolate maker. after.
Despite the high ratings, Van de Put said: Mondelez We continue to monitor potential acquisition targets. The company is prioritizing deals to expand its cakes and pastries business as well as its premium chocolate category.
annually, Mondelez We create a “wish list” of approximately 40 potential M&A targets and, where necessary, begin building relationships with small businesses to build trust and rapport. Van de Put said snack manufacturers “take very few risks” with their initial lists.
“Acquisitions should really give us a unique competitive advantage or really increase our growth rate regardless of the region we are looking at,” Van de Put said. “Otherwise it’s not worth it for us to do it.”
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Acquisitions of food and beverage companies slowed significantly to more normal levels in 2025, following record activity in the previous year, according to PitchBook data. Despite the decline in volume, total transaction value increased for the second year in a row, reaching $61.5 billion, up 16.3% from the previous year.
Higher costs force companies to focus on larger, more strategic investments, the accounting firm said. Several other food and beverage companies attending the CAGNY conference in mid-February told analysts that acquisitions would be one of their tools to generate growth.
General Mills CFO Kofi Bruce said the Cheerios maker aims to “deploy cash for strategic acquisitions that enhance our growth profile.” Tracey Joubert of Molson Coors said the company plans to “invest in M&A to drive meaningful portfolio transformation.”
However, not all companies rely on M&A for future growth. JM Smucker was one of the few to rule out a trade in the near future.
“While we have historically evaluated growth opportunities through acquisitions, this is not currently an active strategic focus,” CEO Mark Smucker told analysts. The jam and jellies maker is still working to improve its existing brands and pay down debt. Acquires Twinkies maker Hostess Brands for $5.6 billion In 2023.
A handful of smaller acquisitions have been announced so far in 2026. B&G Foods acquires broth brand Pork processing giant acquired by Del Monte Foods for $110 million Smithfield Foods has acquired iconic hot dog brand Nathan’s Famous. That’s almost half a billion dollars.
