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N E W S L E T T E R

October 2019 www.globalma.com

Snacking on the Rise

Ch a n g in gFa c e o f Sn a c k s


C O N T E N T S

The Snacking Industry is witnessing a major shift in consumer preferences towards healthy yet flavorful products. Companies need to carefully tread this evolving path while navigating challenges of increasing ingredient costs, saturated markets, and fierce competition. Significant opportunities exist to drive growth through e-commerce, innovation, and alignment with health trends.

Innovation is forging unique strategic partnerships within the industry. Rather than invest in a new product launch or greenfield operations in a new geography, manufacturers are turning to M&A to fast-track entry into a new category / market or gain share to establish leadership.

Our Global Food and Beverage Team provides extensive sector-specific expertise and close relationships with global buyers and sellers, both within your local market and throughout the world. Many of our advisory transactions are cross-border.

M&A Strategy - Key Players2 04

M&A Highlights6 29

Public Company Share Price Performance7 35

Key Investment – Fresh Snacking5 25

Overview of GMAP Food and Beverage Team8 36

Introduction1 03

Industry Review3 06

Global Snacking Trends

Global Drivers

Industry Performance by Region

06

11

12

Segment Highlights4 15

Savory Snacks

Nuts, Seeds and Trail Mixes

Salty Snacks

Savory Biscuits

Popcorn

Pretzels

Other Savory Snacks

16

16

17

18

19

20

Sweet Snacks

Fruit Snacks

Snack Bars

Sweet Biscuits

21

22

23

Product Innovations 24


Introduction

1

The face of snacks is changing as empowered consumers increasingly seek tasty, nutritional, and sustainable foods to fuel their on-the-go lifestyles. Snacking is on the rise as demand for convenience and portability fuel increased consumption, with premiumization spurring innovation and variety in fresh, better-for-you, and functional snacks. Localization is encouraging the use of bold, spicy flavors and exotic ingredients to appeal to international palates, which is driving growth in regionalmarkets. Convenience is also driving online sales of ready-to-eat snacks, with snack foods one of the top food categories purchased through the e-commerce channel.

The global Snacking Industry, comprised of savory and sweet snacks, is projected to reach ~$540 billion in 2019. All regions are experiencing growth, with Europe and North America representing the largest Snacking markets, together accounting for more than half (~55 percent) of global sales. Developing regions such as Asia Pacific and Sub Saharan Africa are seeing outsized growth driven by demographic shifts and as premiumization and healthy Snacking trends gain traction.

The Snacking Industry continues to see a high level of M&A activity with more deal flow expected as industry participants leverage acquisitions to orient product portfolios towards broad demand trends favoring healthy, organic, and better-for-you snacks. PepsiCo, Mondelez, Campbell Soup Company, and ConAgra Brands are among the major food and beverage players to recently complete acquisitions. Recent buys are reflective of category and geographic expansion efforts, with keen interest in innovative, smaller brands serving high-growth niche segments to broaden consumer reach and enhance competitive positioning.

Key Insights

Sweet SnacksSavory Snacks

Pretzels

Savory Biscuits Popcorn

Other Savory Snacks

Salty Snacks Fruit Snacks Snack BarsNuts, Seeds &

Trail Mixes

Sweet Biscuits

Key Snacking Categories


M&A in the Snacking Industry has primarily been driven by buyers looking to expand into new markets and product categories. Major food and beverage companies have fueled growth by acquiring smaller, well-known brands catering to specific niche segments of the Snacking Industry, with targeted bolt-on acquisitions becoming the norm. By acquiring fast-growing, innovative brands, strategic companies are able to reach a diverse set of consumers and enhance market positioning.

Food and Beverage industry giant PepsiCo has been acquisitive, shifting its focus towards the health and wellness segment and acquiring brands to grow its nutrition portfolio in a time of declining soft drink sales.

M&A Strategy – Key Players

2

Mondelez’ mission is aptly captured in its tagline: Snacking made right. With 9 leading global brands (Cadbury, BelVita, Oreo, Milka, Philadelphia, Halls, Tang, Trident, and Toblerone) and more than 65 local super brands, the company has a winning formula to satisfy changing consumer purchasing behavior. The company established SnackFutures, an innovation hub dedicated to support startups to launch disruptive brands and revitalize existing ones. Essential to Mondelez’ growth strategy has been bolt-on acquisitions of smaller, purpose-driven brands. Its focus on premium, well-being snacks is visible in the acquisition of Enjoy Life Foods (February 2015), a Chicago-based manufacturer of allergen-free cookies and bars; fast-growing premium cookie brand Tate’s Bake Shop (May 2018), based in New York; and most recently Perfect Snacks (July 2019), a California-based maker of refrigerated nutrition bars and bites.

In July 2019, PepsiCo announced it was acquiring Pioneer Foods Group in a transaction valued at $1.7 billion. PepsiCo CEO Ramon Laguarta called the acquisition a “differentiated opportunity,” advancing the company’s strategy to expand in South Africa and into sub-Saharan Africa. Other Snacking portfolio acquisitions include the 2018 acquisitions of UK-based Pipers Crisps in November and Health Warrior in October. Pipers Crisps manufactures snacks and is a large producer of potato chips sold in dining establishments such as hotels, restaurants, cafes, and pubs. Health Warrior manufactures plant-based products such as snack bars and mug muffins.

Mondelez aims to be a leading global snack company by providing consumers with the nutrition, taste, and convenience they demand.

General Mills has identified snacks as one of its ‘accelerator’ platforms, pledging to focus on organic growth for its Snack segment. This strategy will include introduction of new variations for its snack bars, particularly addressing the ‘macro-nutrients’ trend. While the company's natural brands, Larabar and Epic, have performed well, General Mills has been slow to address the macro-Snacking trend, missing prominent Snacking categories such as Snack Mixes and Snack Bars. As a result, the company missed a significant revenue opportunity during its fiscal year ending May 2019.

General Mills was one of the first movers in the better-for-you Snacking category with acquisitions a major driver. Notable transactions include Yoki Alimentos (Fiber One, 2012), Annie’s (organic products, 2014), and EPIC (natural bars, 2016).


M&A Strategy - Key Players

Kellogg Company has developed a two-pronged approach to gain traction with consumers focused on health and nutrition in developed markets: divest non-core snack brands and acquire health-focused ones.

This strategy includes the sale of the Keebler, Famous Amos, and fruit snacks businesses to Ferrero for $1.3 billon (closed July 2019) and the $600 million acquisition of Chicago Bar Company, maker of the whole food protein bar brand RXBar(October 2017). In developing markets, Kellogg is pushing for inorganic growth and planning to expand its portfolio beyond breakfast to overall snacks. The $420 million acquisition of Tolaram Africa Foods (May 2018) is illustrative of its localization-focused acquisitive growth strategy. Kellogg is reportedly in acquisition discussions with Haldiram’s, India’s largest snack and convenience company.

Campbell Soup Company is ranked the fourth largest snack company in the United States, after PepsiCo, Mondelez, and Kellogg.

it holds strong market positions and acquire businesses aligned with its current portfolio and trending categories. Recent strategic acquisitions that support these initiatives include the $6 billion acquisition of Snyder’s-Lance, a leading salty snacks company (March 2018), and the $700 million purchase of organic brand Pacific Foods (December 2017). With the Snyder’s acquisition, Campbell grew its snack segment share to 47% of total sales, up from 32% (as of June 2019). Divestitures include the sale of Bolthouse Farms to Butterfly Equity ($510 million, April 2019); Arnott’s to KKR ($2.2 billion, July 2019); and Kelsen’s to Ferrero ($300 million, July 2019). The strategy also sharpens focus on the growing healthy snack segment with nine brands: Cape Cod, Farmhouse, Goldfish, Kettle, Lance, Late July, Milano, Pretzel Chips, and Snyder's of Hanover.

Campbell’s stated growth strategy in North America is to focus on iconic brands for which

Conagra Brands is on a quest to modernize its portfolio in a bid to appeal to consumers opting for healthier snacks and is using acquisitions in trending areas to achieve this objective.Recent acquisitions align with broad trends of healthy, organic, and better-for-you snacks, including: Angie's Artisan Treats ($250 million, ready-to-eat popcorn, September 2017); Thanasi Foods (meat- and seeds-based snacks, March 2017), and Frontera Foods ($109 million, natural ingredients-based snacks, September 2016).

With the acquisition of Pinnacle Foods ($10.9 billion, October 2018), ConAgra gained significant market presence, adding well-known brands Gardein (meatless treats), EVOL (clean label and organic); and Udi's and Glutino (gluten-free) to its snack portfolio.

Hershey has announced the goal to expand beyond chocolate and sweets in its ongoing quest to become a “Snacking powerhouse”.

Snacking is the primary focus of Hershey’s M&A strategy with the objective of filling in product gaps. The company plans to innovate and grow by offering more products in popular categories, including better-for-you, sweet and salty, and protein-based snacks. Acquisitions include Amplify Snack Brands ($1.6 billion, better-for-you snacks, December 2017); Pirate Brands ($420 million, savory snacks, March 2017); Ripple Brand Collective (barkTHINS better-for-you chocolate snacks, April 2016); and Krave Pure Foods (meat snacks, January 2015). In August 2019, Hershey announced it was acquiring nutrition bar maker One Brands for $397 million. Hershey’s snack segments generated nearly $500 million in sales in 2018. The company aims to double sales by acquiring innovative brands aligned with its Snacking growth strategy.


Snacking Industry trends are heavily influenced by the overarching healthy and responsible food movement. Changing mindsets towards maintaining fulfilling yet wholesome diets is further encouraged by the multitude of products available at the consumers’ disposal. Additionally, evolving channel and pricing strategies present no limitations to an empowered consumer base.

Global Snacking Trends

Over the last five years, premiumization has spurred a wave of innovative products that offer certain benefits or experiences, such as health, sensory, functional, visual, belief-based, and even perceptual. The on-the-go, health-conscious, and socially responsible generation is more demanding of these attributes and accepting of the higher price tags they carry. Millennials have a passion for premium according to a recent Marketwired survey. They expect premium features in their food and are willing to pay for it. Survey findings in the U.S. revealed that 68% of millennials will pay for organic foods. Another 66% will pay more for sustainable, which compares to only 36% percent of baby boomers agreeing to the same. A Nielsen survey states that nearly 40% of U.S. shoppers expect to pay a premium for healthy and functional snacks.

Industry players are invested in premiumization and moving beyond product extensions and marketing gimmicks to create attributes or experiences worthy of their consumers. Product premiumization is based on the following frontiers: ingredients, packaging, and channel. This has resulted in nearly double the growth in retail sales for select snack categories.

Industry Review

3

Retail volume of Savory Snacks increased 3% from 2013-18, while sales growth was nearly double at 5.5% growth over the same period. Snack Bars and Sweet Biscuits experienced similar growth, while Fruit Snacks saw the largest growth in sales over volume with sales growth 3x higher than volume growth.

Product Premiumization


Industry Review

Snacking is experiencing a trend towards the localization of flavors to appeal to local markets. For example, Indonesia’s Leo chip brand has introduced a range of exotic flavors such as seaweed and sushi to cater to the local palate. Similarly, the Tango brand of wafers has expanded from chocolate and vanilla into tiramisu, honey dates, and strawberry jam as consumers search for exotic flavor choices.

Additionally, integrating local ingredients adds an authentic touch to products, creating a better connection with the audience. Mondelez has highlighted ‘tradition in innovating for localization’ to be a key factor driving growth in select markets such as the success of the Oreo mooncake created specifically for the Chinese market, keeping in mind the region’s associated traditions.

Localization (Taste and Ingredients)

Fresh Snacking is projected to see the biggest gains in H&W Snacking, with an estimated 8% annual growth rate from 2015-2020, versus Shelf-Stable H&W Snacking which is projected to grow 5%.

Characteristics of Fresh Snacking include clean label, free-from artificial ingredients, and refrigerated. A Mintel study defines the Fresh Snacking category to include select segments of packaged products, including bottled smoothies, drinkable soups, refrigerated protein bars, refrigerated snack packs, yogurts, and other products such as hummus and guacamole with savory crisps.

Freshly-made is one of the top-two attributes associated with better-for-you, healthier products. A 2017 Healthy Food Association study revealed that 75% of U.S. consumers demanded snacks that are guaranteed fresh. In a 2018 analysis, SPINS valued Fresh Snacking at $6.8 billion of the overall $17.5 billion U.S. Health and Wellness (H&W) Snacking Industry . Fresh Snacking sales have increased 8% compared to 6% for the overall market over the last three years.

Between 2008 and 2017, H&W Fresh Snacking new product launches increased four-fold primarily in six segments: refrigerated protein/energy bars, protein snack packs, drinkable soups, bottled smoothies, yogurts, and other products.

H&W Snacking sales are expected to grow at a CAGR of 6.4% from 2015-2020.

“Localization continues to drive innovation and capture market share.” - Edmond Scanlon, CEO, Kerry Group

Fresh Snacking


Industry Review

• Wellness includes health and nutrition claims

• Permissible Indulgence includes products consumers consider to be more permissible due to perceived benefits or better-for-you characteristics relative to true indulgence and treats

• True Indulgence focuses on fully-loaded traditional categories

• Treats include confections

Macro snacking involves both counting calories and tracking macronutrients (i.e., carbohydrates, fats, and proteins), and the ratio in which they are consumed.

The evolution of Macro Snacking has formed four main segments based on product attributes: wellness, permissible indulgence, true indulgence, and treats.

IRI projects that Macro Snacking will expand by $16 billion over the next five years, with growth driven by convenience products and growth in the online channel (which currently represents a 28% market share).

Macro Snacking

30%

23%

33%

14%

Wellness Permissible

True Treats

As consumers increasingly focus on health, lifestyle is becoming the primary driver for the Macro Snacking trend. In a survey of U.S. consumers, 75% of consumers noted they want fresh snacks, 58% prefer snacks that contains vitamins and minerals, 57% opt for snacks made with natural ingredients, and 44% prefer snacks made with whole grains.

Online is one of the fastest-growing channels for consumer-reported purchases of ready-to-eat snacks, reports NPD Group, while traditional channels such as grocery and discount clubs are steady or declining. According to an NPD Group study, 13% of snack foods purchased online are consumed as a meal replacement compared to 10% for total channels. The Snacking Category is among the top categories purchased through this channel, with 42% of consumers having purchased snack products online.

IRI reports that snacking serves multiple roles for consumers, from true indulgence and hunger satisfaction to providing energy/fuel. Additionally, many of its diverse sub-categories have long embraced the power of digital commerce, especially healthy, functional snacks. Nielsen research reveals that the digital channel is responsible for 42.5% of absolute dollar growth for wholesome snacks. Other snacks that are seeing significant dollar growth from e-commerce include crackers (37.8%) and nuts (26.4%).

According to Slice Intelligence, online sales of snack foods grew nearly 35% between January 2017 and January 2018.

Digitalization

Macro Snacking Sales Mix


Industry Review

Better-for-you (“BFY”) foods are a combination of healthy and clean products. Healthy is defined as light and nutritional and often devoid of harmful ingredients and processes, while clean denotes transparency and simplified ingredients. With growing consumer demand for claims such as organic, non-GMO, gluten-free, no additives, etc., BFY is a driving trend of growth with consumers looking for transparency in the supply chain and responsible manufacturing. According to a 2019 DSM study, 89% of millennials consume at least one BFY snack weekly.

Key BFY trends include:

• Plant-based foods

• Protein-centered snacks

• Healthy yet tasty

• Better-for-you indulgence

According to Nielsen, 93% of households have purchased a clean label product at grocery stores while one-third of all Food & Beverage sales are generated by clean label products.

Better-For-You

Online Category PerformanceE-commerceTraditional Retail

Candy

$141M$1.738 B

E-commerceTraditional Retail

Wholesome Snacks

$149M$201 M

Soft Drinks

$363M$1.116 BNuts

$61M$170 M

Salty Snacks

$207M$932 MCrackers

$45M$74 M

Cookies

$41M$271 MGum

$16M$64 M

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The ‘3 meals vs. 6 meals’ concept has been a driver of growth in Snacking. Many studies suggest consuming six small meals a day aids in weight loss and digestion, with a large percentage of the population adopting the trend. Technomic’s 2018 Snacking Occasion Consumer Trend Report revealed that consumers today are more likely to replace one or two daily meals with snacks than in 2016. Findings showed that 80% of consumers confirm snacking at least once a day and 37% believe any food can be a snack if the portion size is small. As a result, food manufacturers are introducing balanced, well-portioned snack products which offer wholesome nutrition to replace regular meals. Certain food diets including Keto, Atkins, and Paleo have contributed in shaping this trend.

Meal Replacement


Industry Review

The role of packaging is to promote snacking brands and engage consumers by communicating the brand story, authenticity, and transparency (e.g., clean-label). Packaging is a key factor in making Snacking categories top-of-mind among consumers, and as the younger generation ages, they will play an even more influential role in snack selection. Consumers with busy lifestyles will seek convenience and ease of use, in addition to packs that are portioned for single consumption.

Product Packaging Design

A 2019 IRI Snacking Survey revealed 57% of consumers want snacks that have convenient portion sizes (up 4% from 2015) while 35% of snacks are packaged in 100 calorie or similar portions (up 5% from 2015).


Industry Review

Global Drivers

Snacking habits have changed dramatically over the last decade. According to IRI’s 2019 Snacking Survey, the percentage of consumers who snack more than three times a day has more than doubled since 2010, increasing from 22% to 47% in 2019. With longer work days and on-the-go lifestyles, the role of snacks has evolved for consumers. Convenience and portability have been key drivers for increased snack consumption.

Change in Snacking Habits of the New Age Consumer

22%

73%

6%

3+

1-2

Do not snack

42%

58%47%

50%

3%

2010 2015 2019

Daily Snacking Frequency

Variety in Snacking options has also been a key driver of growth. Innovation has led to a greater selection for consumers ranging from meat treats, plant-based organics, gluten-free offerings, better-for-you, and many more flavorful and healthy snack options.

Options Galore

Major drivers of increasing Snacking frequency include:• Access to attractive options• Convenience of ready-to-eat options• Dietary requirements (health, weight, blood sugar)

• Increase in disposable income• Evolving taste buds• Stress eating disorders


Industry Review

APAC

$135.7B $161.2B

3.5% CAGR

Australasia

$12.2B $13.8B

2.5% CAGR

Sub-SaharanAfrica

$9.3B $11.1B

3.6% CAGR

MENA

$29.2B $34.5B

3.4% CAGR

Europe

$163.3B $174.7B

1.4% CAGR

Latin America

$56.3B $63.8B

2.5% CAGR

North America

$130.8B $142.2B

1.7% CAGR

Asia Pacific Australasia EuropeLatin

America

Middle East & North Africa

North America

Sub-Saharan Africa

Consumer spending on Snacks as % of total F&B

4.6% 13.3% 10.8% 7.6% 6.3% 14.6% 2.4%

Key growth markets (2013-2018)

• Nepal• Bangladesh• India• Cambodia• Laos

• Papua New Guinea

• Fiji• French

Polynesia

• Iceland• Albania• Lithuania• Romania

• Guatemala• Bolivia• Cuba• Panama

• Syria• Qatar• Bahrain• UAE• Oman

• USA• Canada

• Sudan• Eritrea• Gambia• Burundi

Key categories(Share in Snacking)

• Savory Snacks (34.0%)




• Sweet Biscuits, Snack Bars and Fruit Snacks (25.1%)





Key channels

• Supermarkets/ Hypermarkets (39.0%)

• Traditional Grocery Retailers (32.1%)

• Supermarkets / Hypermarkets (65.7%)

• TraditionalGrocery Retailers (14.0%)








• Others (22.9%)



Source: Euromonitor International analysis from Passport (Gulfood 2019)* Includes Confectionery, Snacks and Ready-to-Eat

Performance by Region (2018-2023)


Industry Review

The Asia Pacific market was valued at $135.7 billion in 2018 and is a thriving Snacking market with two of the largest populated regions in China and India. These markets have experienced strong growth in value with an average price appreciation of 6-7% in India and growth of premiumization in China in such categories as Savory Snacks, Sweet Biscuits, Snack Bars, and Fruit Snacks.

Asia Pacific (APAC)

Health-conscious Japanese consumers have positively impacted category growth in Sweet Biscuits, Snacks Bars, and Fruit Snacks, as manufacturers aggressively promote healthy Snacking and consumers realize the ill effects of being hungry. The APAC market is projected to grow 3.5% annually, reaching $161.2 billion in 2023.

The North American snack market was valued at $130.8 billion in 2018 and is expected to reach ~$142.2 billion by 2023, growing at a modest 1.7% CAGR over the period. While North America is a mature market, healthier alternatives and taste innovations in the Savory segment have made it the fastest-growing category. Driving this trend are younger consumers as they replace regular meals with snacks to manage busy lifestyles and seek healthy, convenient, on-the-go options.

North America

30.4

%

25.3

%

24.4

%

10.5

% 5.4%

2.3% 1.7%

29.1

%

26.8

%

23.6

%

10.6

% 5.7%

2.3%

1.8%

Europe APAC NorthAmerica

LATAM MENA Australasia Sub-SaharanAfrica

2018 2023

Europe Snacking Industry - Regional Share Growth (2018-2023)

The European snack market was valued at $163.3 billion in 2018 and is expected to reach ~$174.7 billion by 2023. The UK is the largest market in Europe, followed by Germany, Russia, and France. Europe is a mature market and has exhibited relatively slower growth. Products offering healthy savory low-calorie and reduced sugar options are experiencing outsized growth. Mondelez overhauled its Maynards Bassetts brand by reformulating with natural flavors and colors. The company has pledged to reduce the salt and saturated fat content by 10% and increase portion control options by 25% by 2020. Products that tap into the health and wellness movement are on-trend and seeing success. Adventurous flavors are also impacting consumer choice, with Asian, Mexican, and spicy tastes gaining more visibility in European stores.

Regional Performance


Industry Review

Regional Performance

The Latin America snack market was valued at $56.3 billion in 2018, and is the fourth largest Snacking region. Within Latin America, Brazil is the largest Snacking market. While price increases have contributed to growth in market value, a slowing economy and obesity concerns have led consumers to seek healthier, cheaper alternatives such as fruits and vegetables, which has resulted in volume declines. The market is projected to reach $63.8 billion by 2023, growing at a CAGR of 2.5% over 2018-2023. Both Savory and Sweet Snacks are popular categories among LATAM consumers.

Latin America (LATAM)

The Middle East and North Africa market is dominated by traditional goods, making snacks an attractive niche market due to growing consumer interest in international brands. The MENA snack market is projected to grow from $29.2 billion in 2018 to $34.5 billion by 2023, or 3.4% annually over the period. Sales in this region are driven by Egypt and Saudi Arabia. While Sweet Biscuits is the most popular Snacking category in Egypt and experiencing growth, other Snacking categories are seeing declining sales due to price increases and the devaluation of the Egyptian pound. Saudi Arabia is showing strong growth, notwithstanding introduction of the 5% VAT which has been a significant hurdle in driving growth.

Middle East and North Africa (MENA)

The Australasia Snacking market is experiencing modest growth with sales expected to reach $13.8 billion by 2023, representing a 2.5% annual growth rate. Savory Snacks remains a popular Snacking category, while Health & Wellness is becoming more mainstream as smaller brands introduce additional healthy options for consumers.

Australasia

Sub-Saharan Africa

Sub-Saharan Africa is expected to be the fastest-growing region, with the market projected to reach $11.1 billion by 2023−up from $9.3 billion in 2018. Rising disposable income, urbanization, and exposure to new products are driving rapid growth in the snack market, particularly in the Savory Snackssegment. South Africa is the largest consumer market, and the implementation of VAT (increased by 1%) is driving price appreciation of snacks in this region.


Valued at $48.7 billion in 2018, the United States is the leading Savory Snack market, and is projected to grow 2.1% annually to reach $54.0 billion by 2023. Sales growth will be driven by more premium products. Volume is expected to grow modestly at 1.8% over the same period.

China is also a leading region with a ~20% market share in the global Savory market.

Key Categories include:

Segment Highlights

4

Savory* Snacks

Pretzels

Other Savory Snacks

* Includes key markets as follows:Americas=US + Canada + Mexico + Brazil; Europe=France + Germany + Italy + Spain + Switzerland + Netherlands + UK; and China

Source: Euromonitor

Nuts, Seeds, and Trail Mixes

Salty Snacks

Savory Biscuits

Popcorn


Nuts, Seeds, and Trail Mixes

Nuts, Seeds, and Trail Mixes is comprised of three major categories: Nuts such as almonds, cashews, peanuts, hazelnuts, pistachios, pine nuts, pecans, and macadamia nuts; Seeds such as pumpkin, chia, sunflower, flax, and sesame; and Dried Fruits such as figs, dates, prunes, apricots, and berries. Trail Mixes combine these three items and are on-the-go, energy booster snacks that require limited preparation. Easy-to-eat, protein- and antioxidant-rich, and energy-boosting attributes are contributing to category growth with the arrival of the health-conscious consumer.

Segment Highlights

Savory Snacks Sweet Snacks

Key Trends:

Clean label

Plant-based, all-natural offerings

Exotic flavoring, seasoning, and coatings

Gourmet preparations providing a sense of indulgence

Size of Key Markets:

$3.6B $8.3B $4.4B

3.2% 3.5% 3.7%

$4.2B $9.8B $5.3B

Europe ChinaAmericas

Salty Snacks

Chips and puffed snacks are major products in the Salty Snacks category, which is seeing rising sales. Tortillas and potato chips drove the segment in 2018. Puffed snacks as well as healthier chip options made from grains and vegetables are gaining traction, in part due to innovative options as well as growing consumer demand for better-for-you foods.

2018-23 CAGR

Market Size 2018

Market Size 2023


Segment Highlights

Key Trends:

Innovation in shapes and textures

Bold, spicy flavors

Better-for-you options (baked and healthy oils)

Personalized options (gluten-free, organic, non-GMO, plant-based proteins)

$7.4B $30.2B $7.2B

1.2% 3.0% 3.4%

$7.9B $35.0B $8.5B



Savory Biscuits

Savory Biscuits (or crackers) has seen flat growth of 0.6% from 2013-2018. However, increasing consumer demand for healthy options along with ingredient and flavor innovations are expected to drive growth for this category. Mexico is expected to be the fastest-growing market, with sales expected to reach $686 million in 2023, representing annual growth of 3.5%. Regions such as Brazil and UK are projected to see negative growth in this category.

Key Trends:

Free-from claims

Diet sensitive products

Functional benefits (antioxidants, fiber, protein)

Out-of-the box healthy grains

2018-23 CAGR

Market Size 2018

Market Size 2023



Segment Highlights

$3.0B $9.9B $2.0B

(0.0%) 0.8% 2.1%

$3.0B $10.3B $2.2B



Popcorn

Popcorn caters to a wide audience with offerings ranging from indulgent to healthy and is available in traditional microwaveable as well as convenient ready-to-eat (RTE) forms. While consumer preferences have shifted towards RTE due to the perceived health benefits, the microwaveable segment is creating a stir with unique flavors. The use of high-stability oils in manufacturing RTE popcorn has also increased as it improves the shelf-life of these products.

Key Trends:

RTE popcorn

Sweet, savory, and spicy flavors

Indulgent coatings / drizzles (candy, caramel, chocolate, cotton candy)

Use of high-oleic sunflower oils


$0.3B $3.5B $0.019B

9.0% 2.7% 2.3%

$0.4B $4.0B $0.021B

2018-23 CAGR

Market Size 2018

Market Size 2023

2018-23 CAGR

Market Size 2018

Market Size 2023




Segment Highlights


Pretzels

Convenience is a key demand driver for pretzels, which are commonly available in salt, peanut butter, and chocolate variations. While some manufacturers are embracing flavor and ingredient innovation to attract mainstream consumers, others are striving to appeal to health-conscious consumers by highlighting low-fat and low-sodium health benefits of their products. Canada is the fastest-growing market with 6.1% annual market growth. China has yet to develop a substantial market for packaged pretzel snacks primarily due to the differing Snacking habits and taste preferences in the region.

Key Trends:

Flavor-filled pretzels

Use of alternative flours

All-natural ingredients

$0.31B $2.0B n/a

0.8% 0.8% n/a

$0.32B $2.1B n/a


2018-23 CAGR

Market Size 2018

Market Size 2023



Segment Highlights

Key Trends:

$0.43B $6.6B $5.1B

2.5% 3.4% 5.7%

$0.48B $7.8B $6.7B



2018-23 CAGR

Market Size 2018

Market Size 2023


Better-for-you options

Clean ingredients

Diet sensitive products (Keto, Paleo)

Other Savory Snacks

Other Savory Snacks consists primarily of meat-based products such as beef sticks, meat jerky, pork rinds, and turkey sticks. The segment has expanded in recent years with the entry of new players but has suffered declining profits due to the emergence of BFY snacks. To stay relevant, the segment began adopting the BFY trend and adding new flavors. The United States leads the market in consumption of these snacks (volume), while Canada, China, and Mexico are leading in growth, experiencing annual growth of 5.2% from 2018-2023.


Segment Highlights

Fruit Snacks

Fruit Snacks generated retail sales of ~$10 billion globally in 2018 and have been one of the fastest-growing Sweet Snacks categories. Brazil and Italy are leading markets with annual growth of 10.7% and 6.8%, respectively, from 2014-2018.

The Sweet Snacks category is facing challenges as consumers shy away from sugar. However, healthy options and innovation are broadening the consumer base, and the segment continues to retain younger generations as loyal customers.

Sweet Snacks


Key Trends:

Key Categories include:

Fruit Snacks

Snack Bars

Sweet Biscuits

Natural and organic

Exotic flavors and coatings

Premium fruits (avocado, dragon fruit, baobab)


Segment Highlights

Snack Bars

Snack Bars are available in a variety of options to fulfill varying consumer needs, including diet, energy, nutrition, or healthy sweet cravings. Made from healthful ingredients such as grains, fruits, nuts, plant- and animal-based proteins, granola, exotic flavorings, and seeds; snack bars cater to consumers’ niche needs while being readily available, on-the-go, healthy snacks.

Key Trends:

GMO and free-from claims

Source-rich

Ingredient localization

Organic and natural

$1.2B $2.6B $3.3B

3.7% 1.4% 2.1%

$1.4B $2.8B $3.7B



2018-23 CAGR

Market Size 2018

Market Size 2023

$1.2B $8.9B $0.4B

2.7% 2.9% 1.8%

$1.4B $10.3B $0.4B


2018-23 CAGR

Market Size 2018

Market Size 2023




Segment Highlights

Sweet Biscuits

The Sweet Biscuits market was almost 2x the combined market size of Snack Bars and Fruit Snacks based on retail sales in 2018. Plain Biscuits is the leading segment due to the wholesome and nutritional nature in the sweet Snacking category, while cookies and wafers enjoyed consumer attention in the high-volume Chinese market. Functional innovations and clean label claims are driving growth and reshaping this category globally.

Key Trends:

$8.0B $18.8B $4.8B

0.2% 2.4% 1.2%

$8.1B $21.2B $5.1B


Protein-rich

Natural and clean ingredients

Premiumization of indulgent treats

Sharing packs


2018-23 CAGR

Market Size 2018

Market Size 2023




This category has seen the inclusion of premium healthy ingredients and bold tastes. Examples include Real Handful’s healthy vegan trail mix launched in Tesco stores across the U.K.; Dirt Kitchen’s pairing of almonds and green beans into dried vegetable trail mixes; and Angie's Boomchickapop Tex Mex Trail Mix. Beef jerky, vegetables, and popcorn are also common additions to these recipes, helping consumers explore flavors that are more savory than sweet.

Segment Highlights


Salty Snacks

Artisan style chips are being developed by Boulder Canyon with the expansion of its potato chip offering to include new flavors and milder finishes. Patatas Torres’ wine-infused fruity potato chips is an example of bold flavors.

Savory Biscuits

TH Foods’ Crunchmaster Multi-Seed Crackers, Arla’s Whey-Pro protein-rich biscuits, and Manildra Group’s launch of two new biscuit offerings are examples of clean ingredient-based nutritional biscuits.

Popcorn

Notable popcorn innovations include vegan, non-GMO, gluten-free, and portion-controlled 100-calorie bags in the SkinnyPop line, as well as distinctive flavors such as Smartfood’s Hot Buffalo popcorn and Angie's Dark Chocolate Drizzled Sea Salt Kettle Corn.

Pretzels

Quinn Snacks’ gluten-free pretzel nuggets and Unique Pretzel Bakery’s sourdough pretzels are new launches that bring freshness to the category.

Other Savory Snacks

Harvest Snacks boasts products free from artificial flavors, colors, cholesterol, and common allergens (e.g., soy, nuts, wheat, and eggs). The company recently released Southern Style BBQ Black Bean Snack Crisps and White Cheddar Green Pea Snack Crisps.

Fruit Snacks

Arizona Beverages launched fat-free and gluten-free Arizona Fruit Snacks which contain real fruit and Vitamin C, innovating and conforming to health demands.

Snack Bars

RX Bar innovated with clean label packaging that simply and clearly lists the natural, high-protein ingredients used in each bar, staying true to its commitment to consumer nutrition.

Sweet Biscuits

Mondelez introduced Belvita protein soft-baked biscuits to satisfy the consumer’s sweet cravings without guilt. Quest Nutrition offers Quest Protein Cookies which provide consumers with a breakfast option to suit their busy lifestyles.

Product Innovations


5

Key Investment – Fresh Snacking

Overview

Health and Wellness Snacking is expected to reach $20 billion by 2020, representing annual growth of 6.35%. With sales of $17.5 billion in 2018, the segment includes:

• Naturally-positioned products meeting quality standards set by retailers and consumers

• Specialty- and wellness-based products having unique taste, are international/imported, and marketed as premium

Health and Wellness Snacking consists of two major categories: Fresh Snacking and Shelf-Stable Snacking. While the Shelf-Stable category is seeing steady sales, Fresh Snacking is emerging and seeing strong market growth.

H&W Snacking, Dollar Size and Growth (3-Year CAGR)

H&W Snacking

$17.5B

Fresh Snacking

$6.8BShelf-Stable Snacking

$10.7B

+6%

+8% +5%



Trending healthy food is a key demand driver for fresh snacks, as consumers are increasingly equating fresh with healthy.

63%

60%

47%

Natural

Freshly Made

Organic

Characteristics Associated with Healthy Food

Fresh is a Highly Attractive Attribute

75%of U.S. consumers want snacks that are guaranteed fresh

60%of U.S. consumers want foods that are fresh

56%of U.S. consumers avoid preservatives or additives

The term “fresh” could be ambiguous, just like other food-related attributes such as ‘clean’ and ‘natural’. Yet studies suggest that consumers make a connection between products made with clean, whole-food ingredients with refrigeration one of the oldest natural ways to preserve fresh foods. Manufacturers are meeting consumers’ evolving snack needs by providing healthy, portable, and fresh Snacking options in various categories that can be segmented as follows:

Refrigerated Bars Snack Packs Drinkable Soups

Smoothies Yogurt Others

Evolving Consumer Preferences


Key Brands

Refrigerated Bars are made from whole-food ingredients and contain no preservatives. Because they are preservative-free, they have shorter shelf lives and require refrigeration to retain freshness and avoid spoilage. Refrigerated bars offer lower sugar content, higher nutritional value, and are convenient to consume, driving strong growth in the segment. By offering various organic, clean label, and diet-focused options in various flavors, refrigerated bars have gained popularity in recent years. Perfect Bars, a pioneering brand in the segment, has grown its retail presence from 7,000 stores in 2015 to 12,000 in 2016. Perfect Snacks was acquired by Mondelez in July 2019. The company reported $70 million in net revenue.

Refrigerated Bars

Snack Packs are single-serve snack boxes packed for easy consumption and typically contain fruits, vegetables, meat, dairy, nuts, and even sweet treats. Their portion-size, portability, and balanced nutrition address the on-the-go lifestyles of today’s busy consumers.

Snack Packs

Key Brands

Key Brands

With origins from the traditional Spanish chilled soup gazpacho, Drinkable Soup is viewed as an evolved version of fruit smoothies by some consumers who are making the switch to this category. The market for chilled soup was valued at nearly $790 million in 2018 and projected to reach $1.5 billion by the end of 2025. Companies are launching products to address trends such as healthy, on-the-go, and plant-based Snacking. While some products require refrigeration, others are offered as shelf-stable options, fulfilling consumer demand for portable nutritional snacks. Campbell launched its ‘Well Yes’ brand of drinkable soups for retail in traditional format, while many small brands depend on e-commerce as a key sales channel for this niche and quickly growing segment.

Drinkable Soups



Key Brands

Other consists of on-the-go, mini-meals that provide consumers with convenient, wholesome goodness without the hassle of meal preparation. Busy lifestyles have been a growth driver for these products. Munchies with dips is a common format, with popular products including crackers, chips, or pretzels with guacamole; flavored hummus; and meal bowls (salads, quinoa).

Other

Key Brands

Yogurt has been a volatile market, oscillating between growth and decline in recent years. However, health-related concerns in developed countries have driven growth in the category. The North American market is forecasted grow 3.9% annually from 2019-2024, primarily driven by health-conscious consumers. According to the U.S. Census Bureau, approximately 37 million Americans consumed regular frozen yogurt in 2018. Key trends of this segment include natural (no additives/preservatives), better-for-you indulgence, innovation (wholesome meals with trail mixes/cereals, packaging, nutrient-enriched), and botanic flavors.

Yogurt

Delicious flavors and organic, non-GMO options are driving growth and popularity in the Smoothies category. Need for healthy, wholesome, and filling on-the-go snacks is expected to drive the global Smoothies market at a CAGR of ~ 6% during 2019-2024. In June 2019, Kraft Heinz released Fruitlove, a new offering of ‘spoonable’ smoothies, to increase penetration in this trending snack segment.

Smoothies

Key Brands



6

M&A Highlights

Selected M&A Transactions by CategoryThere has been an uptick in investor interest in the Snacking sector, particularly in trending health and wellness categories and in companies offering innovative flavor profiles and ingredients. Large companies are looking to buy trusted brands in these categories rather than develop internally and are aggressively using acquisitions to establish a footprint and capitalize on changing consumer preferences.

Recent Highly Acquisitive Consolidators

Other Recent Notable Acquisitions

(Cookie Business)


Selected M&A Transactions by Category

Source: Merger Market

M&A Highlights

Ann. Date Target Company Target Description Country Bidder Company CountryEV

($m)


5-Feb-19Nature Delivered Ltd (Graze.com)

Offers nuts, dried fruits, etc., online and through various retail stores

United Kingdom

The Unilever Group Netherlands -

17-Apr-18 American NutsProducer and supplier of nuts and dried fruits

USA Gauge Capital, LLC USA -

15-Jan-18 Grupo UtegaEngaged in selection, processing, packaging and distribution of nuts, dried fruits and extra-dry dehydrated fruits

Spain Ecolumber, S.A. Spain 9

4-Dec-17 RTE Snacks (Pty) Ltd. Makes trail mixes South AfricaRedSun Dried Fruit & Nuts (Pty) Limited

South Africa -

30-Nov-17 Squirrel Brand, L.P. Supplier of roasted nuts and snack mixes USA John B Sanfilippo & Son Inc USA 33

21-Jul-17 JAB Dried Fruit Products Pty Ltd.Manufacturer and distributor of dried fruit, nuts and sweets

South Africa Sanlam Private Equity South Africa -

7-Jul-17 Snack Connection B.V.Engaged in purchasing, processing, mixing and packing nuts, kernels, seeds, subtropical fruits and related products

Netherlands Gimv NV Belgium -

5-Apr-17 KNPC Holdco, LLCProducer of nuts, snacks and dried fruits for sale in grocery and retail outlets

USAPalladium Equity Partners, LLC

USA -

19-Jul-16 Snak Club, Inc.; Century SnacksEngaged in manufacturing and distribution of nuts, trail mixes and similar snacks;

USA Insignia Capital Group, L.P. USA -

1-Jun-16 Peyman KuruyemisEngaged in production and selling of nuts and dry fruits

TurkeyBridgepoint Advisers Limited

United Kingdom

110

Salty Snacks

9-Oct-19 PopchipsProducer and distributes salted popcorn chips

USA VMG Partners USA

11-Sep-19 Direct Store Delivery (DSD)Produces and distributes salted and savory snacks across North America

USA UTZ Quality Foods, LLC USA -

2-Sep-19 Kettle Foods LTD Produces and sells potato chipsUnited

KingdomValeo Foods Ltd.

UnitedKingdom

80

29-Jul-19 Orva srlEngaged in manufacturing bread and tortillas

Italy Morato Pane S.p.A Italy -

17-May-19 Sibell SAEngaged in producing and distributing potato chips

France Marbour SAS France -

20-Jul-18 Ibersnacks S.L. Produces and sells chips and other snacks Spain Europe Snacks S.A. France -

18-Jul-18 Popchips Limited Produces potato chipsUnited

KingdomIntersnack Group GmbH & Co. KG

Germany -

17-May-18 Tyrrells Group Holdings LimitedEngaged in the production and supply of potato chips

United Kingdom

Intersnack Group GmbH & Co. KG

Germany -

19-Mar-18 Circle Foods, LLCProduces and sells specialty food products like uncooked flour tortillas and Mexican food

USAAjinomoto Foods North America, Inc.

USA -

7-Mar-18 Grefusa S.L.Engaged in production and distribution of snacks, chips and nuts

SpainIntersnack Group GmbH & Co. KG

Germany -

22-Aug-17 Glutenfreeda Foods, Inc.Select assets of Glutenfreeda Foods, Inc., including its brand portfolio and USDA manufacturing facility

USA Flagship Food Group USA -

12-Jul-17 Rudy's Tortillas, Inc. Produces tortilla products USA Teasdale Foods, Inc. USA -

16-May-16 Kolak Snack Foods LTDSupplies and distributes crisps and other snacks

United Kingdom

Europe Snacks S.A. France -

Savory Snacks Sweet SnacksKey



($m) Salty Snacks (cont’d)

20-May-16 Fifor Polska Sp. z o.o. Private label manufacturer of salty snacks PolandDarby Converging Europe Fund III

USA -

17-May-16 Preziosi Food srlEngaged in manufacturing and distributing of various kinds of sweet and salty snacks

ItalyVertis SGR SpA; HAT Sicaf S.p.A

Italy 34

4-Feb-15 Yellow Chips B.V.Manufacturer of vegetable and organic potato chips

Netherlands Diamond Foods, Inc. USA -

Savory Biscuits

6-Feb-19 La Panzanella Artisanal Foods Co.Producer of artisanal crackers and other snacks

USA Dare Foods Limited Canada -

6-Feb-19 Dorset Village Bakery Ltd Produces biscuits and crackersUnited

KingdomBurton's Biscuit Company

United Kingdom

-

1-Nov-18 Yarych Confectionery LLCMaker and distributor of cookies, cakes and crackers

Ukraine Horizon Capital Ukraine -

20-Sep-18 Piovesana Biscotti SpAEngaged in producing and distributing biscuits and crackers

ItalyNuova Industria Biscotti Crich S.p.a.

Italy -

29-Jan-18Industria de Produtos Alimentos Piraque S.A.

Engaged in producing wheat flour products, crackers, cookies and margarine

BrazilM. Dias Branco S.A. Ind Com De Alimentos

Brazil 492

20-Aug-17Back to Nature Foods Company, LLC

Producer of cookies, crackers, granolas, juices, and nuts

USA B&G Foods, Inc. USA 163

23-Jan-17 Nustef Foods LimitedMakes Italian-inspired pizelle waffle cookies and artisan crackers under the Reko brand

Canada The Riverside Company USA -

13-Oct-16 Parati S/AManufacturer of iconic biscuit, powdered beverage & pasta brands

Brazil Kellogg Company USA -

15-Aug-16 Beloxxi Industries Limited Biscuit manufacturing company NigeriaDEG; African Capital Alliance; 8 Miles LLP

United Kingdom

-

18-Apr-16 Dorset Village Bakery Ltd Produces biscuits and crackersUnited

KingdomLiving Bridge LLP

United Kingdom

-

Popcorn

14-Jun-19 Joe's Gourmet Foods Ltd Producer of popcornUnited

KingdomBusiness Growth Fund plc

United Kingdom

-

19-Oct-18Borges International Group, S.L. (Popcorn business)

Popcorn business of Borges SpainAperitivos y Extrusionados, S.A.U.

Spain -

26-Jan-18 Ten Acre Crisps Limited Manufactures packaged popcornUnited

KingdomFairfields Farm Produce LTD

United Kingdom

-

5-Jan-18 Savoury & Sweet Ltd.Engaged in manufacture and distribution of popcorn and other snacks

United Kingdom

Burts Potato Chips LimitedUnited

Kingdom-

22-Sep-17 Angie's Artisan Treats, LLC Produces and sells popcorns and other snack items

USA ConAgra Brands, Inc. USA 250

17-Jul-17 Butterkist Limited Popcorn manufacturerUnited

KingdomKP Snacks Limited Germany -

3-Jul-17 Cobs Fine Foods Pty Ltd Engaged in making variety of popcorns Australia Undisclosed bidder Australia -

1-Feb-17Portlebay Popcorn company limited

Manufacturer of popcorn snacksUnited

KingdomTayto Group Limited

United Kingdom

-

1-Sep-16 Metcalfe's Skinny LimitedEngaged in production and marketing of ready to eat popcorns

United Kingdom

Kettle Foods Inc USA -

30-Aug-16 Catapult Enterprises Ltd Popcorn manufacturerUnited

Kingdom

Piper Private Equity Limited; JamJar Investments LLP

United Kingdom

-

11-Jan-16 Metcalfe's Skinny LimitedEngaged in production and marketing of ready to eat popcorns

United Kingdom

Diamond Foods, Inc. USA -



M&A Highlights



($m)

Pretzels

24-Oct-18 Pretzels, Inc.Leading supplier of pretzels and extruded snack products

USA Peak Rock Capital USA

18-Sep-17 Backwerk Service GmbHOwner and operator of bakeries and franchisees

Germany Valora Holding AG Switzerland 227

26-Jan-17 Pretzel Baron Baker of Bavarian Soft Pretzels USA Valora Holding AG Switzerland -

2-Sep-16 Wetzel's Pretzels LLC Operater of pretzel stores USA CenterOak Partners LLC USA -

Other Savory Snacks

15-Mar-19 Stryve Foods LLC Protein snack company USA Undisclosed bidder USA -

3-Oct-18 Seabrook Crisps Produces and supplies potato crispsUnited

KingdomCalbee

United Kingdom

-

28-Sep-18 Gula SASProvides online retail and delivery of subscription based natural and healthy snacks

France Daco France S.A. France -

13-Sep-18 Stryve Foods LLC Protein snack company USAMurano Group; Meaningful Partners

USA -

7-Jun-18 Chef's Cut Real Jerky Maker of flavored meat snacks USA Undisclosed bidder USA -

7-Jun-18 Lawless Jerky Produces and sells meat products USAMonogram Food Solutions, LLC

USA -

29-Apr-18 GreenpeopleProducer of various juices and snack products

Brazil Jpa Investimentos Brazil -

12-Apr-18 Oberto Sausage CompanyManufacturer of beef jerky and other protein based snack foods

USAPremium Brands Holdings Corporation

Canada -

18-Dec-17 Amplify Snack BrandsDevelops, markets, and distributes better-for-you snack products in North America

USA The Hershey Company USA -

15-Nov-17 True Gentlemen’s Jerky, Inc. Healthy beef snack foods producer USAOne Thousand & One Voices

South Africa -

2-Oct-17 Mae TerraProducer of organic food products including pastries and salty snacks

Brazil The Unilever Group Netherlands -

23-May-17 Tillamook Country Smoker, Inc. Provider of branded meat snacks USA Insignia Capital Group, L.P. USA -

6-Jan-16 EPIC Provisions LLC Manufacturer of meat-based protein bars USA General Mills Inc. USA -

10-Mar-16Grass Run Farms (meat snacks division)

Meat snacks business of Grass Run Farms USA Link Snacks Inc. USA -

29-Jan-15 KRAVE Pure Foods, Inc.

Producer of artisanal jerky, that makes and markets a line of natural and high-protein snacks using cuts of all-natural beef, pork and turkey

USA The Hershey Company USA 219

M&A Highlights





($m)

Fruit Snacks

5-Feb-19 Mount Franklin Nutritionals, LLCProvider of gummy nutritional supplements, organic gummies and fruit snacks

USA Santa Cruz Nutritionals, Inc. USA 40

25-May-18 Bare Foods Co.Producer of baked fruit and vegetable snacks

USA PepsiCo, Inc. USA -

20-Oct-16 Materne Mont BlancOffers healthy natural fruit snacks and quality dairy products

France Fromageries Bel SA France 932

1-Aug-16 Stream Foods LtdSupplies natural and healthy fruit snacks under the Fruit Bowl brand

United Kingdom

Pioneer Food Group Limited

South Africa 10

22-Dec-15 Orchard House Foods Limited Manufacturer of fresh fruit productsUnited

KingdomThe Hain Celestial Group, Inc.

USA 115

17-Dec-15 Urban Fresh Foods Limited Manufacturer of fruit snacks and cerealsUnited

KingdomLotus Bakeries NV Belgium 105

12-Aug-15Niagara Natural Fruit Snack Company Inc.

Engaged in production of natural fruit snacks

Canada SunOpta, Inc. Canada 7

25-Jan-15 Wellness Foods LtdProducer and distributor of ready-to-eat fresh fruit products, fresh fruit patisserie and drinks and natural fruit snacks

United Kingdom

Erbium Ireland -

Snack Bars

13-Jul-19 Perfect SnacksProducer of refrigerated nutrition bars and bites

USA Mondelez International USA

10-Jun-19 Bounce Foods Limited Protein energy bars manufacturerUnited

KingdomWholebake Limited

United Kingdom

-

18-Apr-19 Olly Public Benefit Corporation.Offers nutritional supplements including protein powder and bars

USA Unilever PlcUnited

Kingdom-

26-Mar-19 Dawn Anderson, LLC Producer of refrigerated OHi superfood bar USA District Ventures Capital Canada -

29-Nov-18 Primal Nutrition, LLCProvider of range of food and supplement products, including snack bars

USA The Kraft Heinz Company USA 200

31-Oct-18 Health Warrior, Inc. Producer of chia bar snacks and protein bars USA PepsiCo, Inc. USA -

20-Jun-18 Feed.Producer of gluten-GMO-lactose-free, vegan beverage, energy bars and shakers

FranceAlven Capital Partners SA; Eutopia; Financiere Saint James

France -

20-Jun-18 Noble Foods Nutrition Inc.Engaged in manufacturing of nutrition and energy bars

Canada Novacap Investments, Inc. Canada -

12-Dec-17 BioFoodLab Producer of natural snack bars RussiaPrivate Investors -Alexander Abramov; Alexander Frolov

Russia -

27-Oct-17Standard Functional Foods Group, Inc.

Engaged in contract manufacturing of nutritional and healthy snack bars

USAHearthside Food Solutions LLC

USA -

6-Oct-17 Chicago Bar Company LLCProducer and seller of fruit and nut energy bars (RxBAR)

USA Kellogg Company USA 600

5-Apr-17 Brighter Foods Producer of snack barsUnited

KingdomReal Good Food Plc

United Kingdom

14

M&A Highlights





($m)

Sweet Biscuits

15-Jul-19 Tiff's Treats, Ltd.Produces and sells cookies and brownies to treat lovers

USA Salem Investment Partners USA -

7-Jun-19 Aviateur Banketbakkerijen B.V. Produces biscuits and filled cakes Netherlands Biscuit International SAS France -

4-Jun-19 Partake FoodsProducer and supplier of cookies intended to offer gluten-free, vegan and allergy friendly snacks

USA

Sofinnova Ventures, Inc.; Marcy Venture Partners LLC; The FactoryBackstage Capital; Chuck Muth (Private Investor)

USA -

2-May-19 Continental Foods Belgium NVManufacturer of instant food products, including snacks, sauces, frozen desserts, puddings, crackers, cookies, and juices

Belgium THE GB FOODS, S.A. Spain 1,007

17-Apr-19 Michel et Augustin S.A. Engaged in producing biscuits and cookies France Danone SA France -

1-Apr-19Kellogg Company (Selected cookies and fruit snacks business)

Business of Kellogg Company consisting of selected cookies, pie crusts, and ice cream cones businesses

USA Ferrero SpA Italy 1,300

6-Feb-19La Panzanella Artisanal Foods Co.

Producer of artisanal biscuits and other snacks

USA Dare Foods Limited Canada -

30-Jan-19Dancing Deer Baking Company, Inc.

Manufacturer of scratch baked cookies, brownies & cakes

USA Cell-nique Corporation USA -

1-Nov-18 Yarych Confectionery LLCMaker and distributor of cookies, cakes and crackers

Ukraine Horizon Capital Ukraine -

26-Jul-18 Arluy S.L.UEngaged in manufacturing, selling, anddistributing biscuits and chocolates

Spain Biscuit International S.A.S. Spain -

24-Jul-18 Kishlay Foods Pvt LtdEngaged in manufacturing of potato chips, biscuits, cookies, and rusk

IndiaNorwest Venture Partners; Intensive Softshare Private Limited

USA -

20-Jul-18 Insomnia Cookies, LLC Engaged in making and delivering cookies USAKrispy Kreme Doughnuts Inc

USA -

6-May-18 Tate's Bake Shop, Inc. Produces baking products USA Mondelēz International, Inc. USA 500

29-Jan-18Industria de Produtos Alimentos Piraque S.A.

Engaged in producing wheat flour products, crackers, cookies and margarine

BrazilM. Dias Branco S.A. Ind Com De Alimentos

Brazil 492

15-Dec-17International Biscuits Company Limited

Producer of bread and bakery products Saudi Arabia Ulker Biskuvi San. A.S. Turkey 56

12-Dec-17 Mrs Higgins Bakery specialized in cookies New Zealand Rangatira Limited New Zealand -

15-Nov-17 Tiff's Treats, Ltd. Produces and sells cookies and brownies USACapstar Partners LLC; CIC Partners LP; Morgan Stanley Private Equity

USA -

20-Jul-17 East Balt, Inc. Producer and supplier of bakery products USA Grupo Bimbo S.A.B. de C.V. Mexico 650

M&A Highlights




Public Company Share Price Performance

7Public Company Analysis

Snacking has outperformed the broader Food Products industry, with a five-year return of 57.0%, which compares to 18.9% for the overall market. Companies such as Morinaga, Britannia, Premium Brands and Post Holdings have seen the biggest gains in share price. Channeling investments to expand into trending segments has been key to the growth of the Snacking market.

13.8x14.2x

12.4x

13.3x

12.3x

Snacking Industry

EV/EBITDA

2016 2017 2018 LTM¹ NTM

14.5%

13.9%

14.2%

Snacking Industry

EBITDA Margin

2017 2018 LTM¹

3.7%

Snacking Industry

Revenue CAGR

18-20E

Share Price Performance

Notes:1. LTM: As of 8th October 20192. Snacking Industry includes PepsiCo, Inc., Mondelez International, Inc., General Mills, Inc., The Hershey Company, Kellogg Company, Conagra Brands, Inc., Campbell Soup

Company, Want Want China Holdings Limited, Britannia Industries Limited, Grupo Bimbo, S.A.B. de C.V., Orkla ASA, Post Holdings, Inc., Flowers Foods, Inc., Calbee, Inc., Yamazaki Baking Co., Ltd., PT Mayora Indah Tbk, Gruma, S.A.B. de C.V., J & J Snack Foods Corp., Grupo Nutresa S. A., TreeHouse Foods, Inc., Ezaki Glico Co., Ltd., Premium Brands Holdings Corporation, ORION Corp., Three Squirrels Inc., Tiger Brands Limited, Morinaga & Co., Ltd., The Hain Celestial Group, Inc., Lotus Bakeries NV, The Simply Good Foods Company, Chacha Food Company, Limited, Hostess Brands, Inc., B&G Foods, Inc., Ülker Bisküvi Sanayi A.S., Nongshim Co., Ltd., Koninklijke Wessanen N.V., ARYZTA AG, Premier Foods plc, Borges Agricultural & Industrial Nuts, S.A.

60.00

80.00

100.00

120.00

140.00

160.00

180.00

Oct-14 Aug-15 Jun-16 Apr-17 Feb-18 Dec-18 Oct-19

(Inde

xed

to 1

00)

Snacking Industry² S&P 500 Food Products (Industry)

Source: Capital IQ

57.0%

18.9%


Overview of GMAP Food and Beverage Team

8EUROPE

Michael Petit* Managing Director

+33 6 30 80 71 [email protected]

FRANCE

Heike JandlManaging Director

+43 1 99 00 [email protected]

AUSTRIA

Benoit RooseManaging Director


BELGIUM

Philipp ElsenDirector

+49 211168 [email protected]

GERMANY

Pal FarkasPartner

+36 1 275 [email protected]

HUNGARY

Ivars PinkulisPartner

+371 [email protected]

LATVIA

Ronald van RijnPartner

+31 (0) 6 533 409 [email protected]

NETHERLANDS

Frederic de BoerPartner


SWITZERLAND

AMERICASDaniel Gomez*Director


UNITED STATES

Esteban OliveraManaging Partner


ARGENTINA

Ian MacdonellManaging Director


CANADA

Luis OrtizPartner


MEXICO

Note: * Denotes Co-heads of the Food & Beverage team

Alex CerriPartner


BRAZIL

Paul McGloneDirector


UNITED KINGDOM

Ignacio Rodríguez Vice President


CHILE

Mónica ComPartner


PERU

REST OF THE WORLDBingyu ChenPartner


CHINA

Jacob WonPartner


SOUTH KOREA


About UsEstablished in 1999, Global M&A Partners is one of the major international M&A networks comprised of independentinvestment banking firms partnering to provide international scope and local market expertise to our clients. We operatein more than 30 countries across 4 continents and have completed over 1,500 transactions during the last five yearstypically ranging from €20 to €500 million.

Our Food & Beverage team is comprised of seasoned M&A professionals from more than 18 partner countries withextensive knowledge of the dynamics and innovative changes occurring globally and locally in the Food & Beverageindustry (e.g., changing consumer preferences, rapid food innovation, shifting supply chain, etc.).

Our M&A activity in the Food & Beverage sector is robust and includes many cross-border transactions, driven byinternational growth, strategic tuck-ins, and consolidation. Given our sector experience, transaction expertise, andunparalleled access to local decision makers, we can work together to offer customized M&A solutions and premiumvaluations for our clients.

© 2019 Global M&A Partners. All rights reserved.

Select Snacking Transactions

Overview of GMAP Food and Beverage Team

newsletter snacking on the rise · over the last five years, premiumization has spurred a wave of...

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