Food and beverage mergers and acquisitions are in the air with Monde Nissin swooping on Quorn, reports of an imminent JV between Nestlé and R&R, and a possible purchase of Diageo's wine brands by TWE.
Philippines-based noodle producer, Monde Nissin, which last year acquired Australian food brands Nudie, Peckish, Wattle Valley and Black Swan, now also owns UK meat substitute company Quorn.
The move surprised many as meat substitutes is a negligible market in the Philippines, the country that accounts for most of Monde Nissin's packaged food sales, according to Pinar Hosafci, senior food analyst at Euromonitor International.
However, Quorn is rapidly expanding in Europe and has realised sizeable share in the US and Australia, and the acquisition by Monde Nissin might help it become a global brand, Hosafci says.
“Quorn could potentially be positioned as an alternative to tofu, which is a popular staple in many parts of Asia.”
Nestlé, meanwhile, is believed to be in advanced discussions to launch a joint venture with British ice cream manufacturer R&R, although Euromonitor International food analyst Lianne van den Bos says that if the venture goes ahead, Nestlé will be moving further away from its aim to be the world’s leading nutrition, health and wellness company.
“In 2014, a third of Nestlé packaged food sales were generated by its ice cream and chocolate divisions. Combine that with its recent global launch of premium Swiss chocolate brand Callier and the company’s health and wellness vision is becoming blurred," van den Bos says.
Diageo’s wine brands are also believed to be up for sale, and Australian company, Treasury Wine Estates, is reportedly interested.
Jeremy Cunnington, Euromonitor's senior alcoholic drinks analyst says Diageo fell out of love with wine following the great recession of 2008-09 when it saw that the category could not offer the returns it was looking for.
“The fact there is a sale now may in part be due to some pressure to sell, but it is more likely there was someone willing/able to offer a suitable price," Cunnington says.
“The main benefit for the buyer (Treasury Wine Estates) will be Diageo’s US wine assets with the premium and above brands such as Sterling Vineyards, which will greatly improve Treasury Wine Estates generally low value US portfolio."
Shares in SABMiller, meanwhile, have fallen amid speculation that the brewer is likely to reject a takeover offer from its rival AB Inbev, which has until 14 October to make a formal bid.
