Consumer industry mergers and acquisitions in February topped $15.4 billion (US$9.13 billion), GlobalData's latest report said.
While it was a 14.1 per cent increase on January, it was a 55 per cent drop compared to the last 12-month average, which was worth $33.4 billion (US$20.3 billion).
While Europe held the top position with total deals worth more than US$4 billion, the US topped the country listing in terms of deal value at US$1.63 billion.
The top five consumer industry deals of February 2020 tracked by GlobalData were:
- TUI Cruises’ $1.32bn acquisition of Hapag-Lloyd Kreuzfahrten
- The $1.31bn asset transaction by Cola Holdings
- Mondelez International’s $1.2bn acquisition of Give And Go Prepared Foods
- The $825.86m acquisition of Glycom by Royal DSM
- PepsiCo’s acquisition of Hangzhou Haomusi Food for $705m.
In late February PepsiCo entered a definitive agreement to acquire Hangzhou Haomusi Food Co (“Be & Cheery”), one of the largest online snack companies in China, from Haoxiangni Health Food Co for US $705 million.
PepsiCo said it was an important step in its goal to become China’s leading consumer-centric food and beverage company.
Be & Cheery has many product offerings across nuts, dried fruits, meat snacks, baked goods and confectionery, and predominantly sells online through the major e-commerce platforms in China.
PepsiCo Greater China CEO Ram Krishnan said Be & Cheery highly complemented its existing business in China with its “broad product portfolio, asset light model, and focus on e-commerce”.
The company’s strong data-led innovation capability and flexible manufacturing and sourcing enables it to quickly adjust its product portfolio to respond to changing consumer trends, Krishnan said.
“As we look to accelerate growth in key markets around the world and further grow ‘in China, for China, with China’, Be & Cheery adds direct-to-consumer capability, positioning us to capitalise on continued growth in e-commerce, and a local brand that is able to stretch across a broad portfolio of products, through both online and offline channels.
Meanwhile, Mondelez International announced an agreement to acquire a “significant” majority interest in fully finished sweet baked goods company Give & Go for US$1.2 billion.
Give & Go had net revenues of about $500 million in 2019.
Mondelez said Give & Go will increase its position in brownies, cupcakes, pastries and muffins. It also gives the snacking giant access to the fast-growing in-store bakery channel.
Mondelez International North America president Glen Walter said: “Our ambition is to lead the future of snacking by offering consumers a broad range of snacks in key growth channels and categories. Give & Go’s leading position in the large and fast-growing in-store bakery channel gives us a unique opportunity to expand into new, on-trend consumer spaces.”