Mergers & Acquisitions in Food and Beverage

Merger

Mergers & Acquisitions in Food and Beverage

Global Consumer M&A had a strong first half to the year, with transactions valued at US$ 202.5bn topping every H1 deal value since 2008 and representing a 42.8% uptick in deal value compared to H1 2014. The increase stemmed from two domestic mega-deals, together accounting for 47.1% of total deal value: HJ Heinz’s US$ 54.5bn acquisition of Kraft within the US food sector and Cheung Kong Holdings US$40.8bn acquisition of CKH & Hutchison Whampoa within Hong Kong’s retail sector. As a result, the Consumer sub-sectors food (US$ 80.2bn) and retail (US$ 105bn) saw an increase in deal value by 129.9% and 106.9% respectively compared to H1 2014 (food worth US$ 34.9bn; retail worth US$ 50.8bn). Food deal value reached its highest H1 deal value since 2007, whilst retail reached its highest H1 deal value on Mergermarket record.

Continue reading “Mergers & Acquisitions in Food and Beverage”

Acknowledging, understanding, accepting, valuing, and celebrating differences among people with respect to age, class, ethnicity, gender, physical and mental ability, race, sexual orientation, spiritual practice, and public assistance status | 11th International Label Conference

The world’s increasing globalization requires more interaction among people from diverse cultures, beliefs, and backgrounds than ever before.

DIVERSITY copy

People no longer live and work in an insular marketplace; they are now part of a worldwide economy with competition coming from nearly every continent. For this reason, profit and non-profit organizations need diversity to become more creative and open to change. Maximizing and capitalizing on workplace diversity has become an important issue for management today.

Diversity issues are now considered important and are projected to become even more important in the future due to increasing differences. Companies need to focus on diversity and look for ways to become totally inclusive organizations because diversity has the potential of yielding greater productivity and competitive advantages (SHRM, 1995). Diversity is an invaluable competitive asset that companies cannot afford to ignore. Managing and valuing diversity is a key component of effective people management, which can improve workplace productivity (Black Enterprise, 2001).

A diverse workforce is a reflection of a changing world and marketplace. Diverse work teams bring high value to organizations. Respecting individual differences will benefit the workplace by creating a competitive edge and increasing work productivity. Diversity management benefits associates by creating a fair and safe environment where everyone has access to opportunities and challenges. Management tools in a diverse workforce should be used to educate everyone about diversity and its issues, including laws and regulations.

Most workplaces are made up of diverse cultures, so organizations need to learn how to adapt to be successful.

JOIN US at the 11th International Label Conference 2016 and listen to Manfred WONDRAK how you can benefit from Diversity Management

What You Gonna Eat & Drink Tomorrow | 11th International Label Conference 2016

CONFERENCE TOPIC: BETTER WORLD

What you gonna eat & drink tomorrow?

Today we think about how we can optimize processes. How can we produce more and more favorable. We assume that everything remains as it is. Will be even better and more profitable. Our concern are the CO2 emissions. But only because the scientists tell us. The individual does not even notice that.

But what will happen if suddenly no longer there are products for packaging, to sell, to eat and drink?

Yes, that may well happen soon. Without that we perceive something – unexpected. The water is coming to an end. Surrounded by oceans, it may be that we die of thirst and hunger. Did you know that?

empty shelf.jpg

Systems at risk are production systems where the land and water resources supporting agricultural production are constrained to a point where their capacity to meet current and future needs is seriously jeopardized. Constraints may be further exacerbated by unsustainable agricultural practices, social and economic pressures and the impact of climate change.

Land and water resources are central to agriculture and rural development, and are intrinsically linked to global challenges of food insecurity and poverty, climate change adaptation and mitigation, as well as degradation and depletion of natural resources that affect the livelihoods of millions of rural people across the world. Current projections indicate that world population will increase from 6.9 billion people today to 9.1 billion in 2050. In addition, economic progress, notably in the emerging countries, translates into increased demand for food and diversified diets. World food demand will surge as a result, and it is projected that food production will increase by 70 percent in the world and by 100 percent in the developing countries. Yet both land and water resources, the basis of our food production, are finite and already under heavy stress, and future agricultural production will need to be more productive and more sustainable at the same time.

Today almost 1 billion people are undernourished, particularly in Sub-Saharan Africa (239 million) and Asia (578 million). In developing countries, even if agricultural production doubles by 2050, one person in twenty still risks being undernourished – equivalent to 370 million hungry people, most of whom will again be in Africa and Asia. Such growth would imply agriculture remaining an engine of growth, vital to economic development, environmental services and central to rural poverty reduction.

Deeper structural problems have also become apparent in the natural resource base. Water scarcity is growing. Salinization and pollution of water courses and bodies, and degradation of water-related ecosystems are rising. In many large rivers, only 5 percent of former water volumes remain in-stream, and some rivers such as the Huang He no longer reach the sea year-round. Large lakes and inland seas have shrunk, and half the wetlands of Europe and North America no longer exist. Runoff from eroding soils is filling reservoirs, reducing hydropower and water supply. Groundwater is being pumped intensively overpumped and aquifers are becoming increasingly polluted and salinized in some coastal areas. Large parts of all continents are experiencing high rates of ecosystem impairment, particularly reduced soil quality, biodiversity loss, and harm to amenity and cultural heritage values.

Agriculture is now a major contributor to greenhouse gases, accounting for 13.5 percent of global greenhouse gas emissions (IPCC, 2007). At the same time, climate change brings an increase in risk and unpredictability for farmers – from warming and related aridity, from shifts in rainfall patterns, and from the growing incidence of extreme weather events.

Groundwater abstraction has provided an invaluable source of ready irrigation water, but has proved almost impossible to regulate.

As a result, locally intensive groundwater withdrawals are exceeding rates of natural replenishment in key cereal-producing locations – in high-, middle- and low-income countries. Because of the dependence of many key food production areas on groundwater, declining aquifer levels and continued abstraction of non-renewable groundwater present a growing risk to local and global food production.

JOIN US at the 11th International Label Conference 2016 and build awareness of the status of land and water resources, and inform on related opportunities and challenges for the Consumer Packaged Goods Industry starting from raw material supplier up to retailer.

 

Sources: FAO 2011 & own editorial staff

Economic impact of beer in the European Union | 11th International Label Conference 2016

In 2013, Regioplan Policy Research and EY joined forces for the fifth time to carry out a study focusing on the economic impact of the production and sale of beer in Europe.

In 2013, Regioplan Policy Research and EY joined forces for the fifth time to carry out a study focusing on the economic impact of the production and sale of beer in Europe. The study covers the brewing sector in 31 European countries. Consolidated data in this report however relate to the 28 Member States of the European Union (EU).

Femaile Brewmaster2 copy

Key Developments

 

  • The brewing sector is of major importance to the EU In 2012, it was responsible for 2 million jobs. Most of the employment was generated in the hospitality sector (1.4 million jobs). However, there were also significant numbers employed by breweries (125,400 jobs), the retail sector (118,900 jobs) and the supply sectors (315,800 jobs), of which the bulk was attributable to agriculture.
  • The production and sale of beer generated 53 billion Euro in revenue for EU This is more than the total value added created in the supply chain for beer (51.5 billion Euro).
  • The number of breweries in the EU is still growing, now reaching around 4500, and includes global leaders, regional players and 1,000’s of small and medium sized companies and and microbreweries.
  • There were signs that, following a period of decline, production and consumption volumes had levelled out and were likely to begin to However, as consumer prices were still under pressure, the value of the beer market lagged behind infation.
  • Over the last two years, government revenues generated by the production and sale of beer increased by 4 percent. In some Member States, increased excise duty and VAT rates were accompanied by a decline in employment.
  • The EU brewing sector had a trade surplus amounting to 3 billion Euro in 2012
  • There was a further shift from consuming beer in bars, pubs and restaurants to drinking at This had a negative effect on the economic impact of the sector since beer sold in the off-trade sector generates less employment and VAT revenue per litre than beer sold in the on-trade sector.

 

A sector with impact

The EU is home to around 4500 breweries and enjoys a rich mix of beer cultures and a tradition that dates back thousands of years. The EU is also home to the headquarters of the world’s largest brewing companies, which rank among the top consumer goods companies globally. In 2012, 390 million hectolitres of beer were produced in the EU, making the region the second largest beer producer in the world. The consumption of beer amounted to 357 million hectolitres, yielding a turnover of 111 billion Euro in hospitality and retail outlets.

Overall, this means that the brewing sector is of major importance to the EU economy. It had a considerable effect on employment (2 million jobs), value-added (51.5 billion Euro) and government revenues (53 billion Euro).

Key Figures of selected countries

Economic impact of beer in the European Union (2008-2012)

Approximately 125,400 workers were employed directly within the breweries in 2012. However, the brewing sector was also very important for the hospitality sector (1.4 million jobs), the retail sector (118,900 jobs) and the supply sectors (315,800 jobs). The supply sectors for the brewing sector include, inter alia, the EU can industry, where nearly half of the production was destined for the brewing sector, and the agricultural sector where 131,500 jobs were generated through purchases by brewing companies. 

JOIN US at the 11th INTERNATIONAL LABEL CONFERENCE and GET IN TOUCH WITH THE BREWING INDUSTRY

Source: Brewers Of Europe | Full Report 2013

The year of the acquisition in Craft Beer | 11th International Label Conference 2016

The year 2015 had quite a few ups and downs for craft beer. Here are a few of the biggest stories of the year:

The year of the acquisition in Craft Beer in the U.S.

2015 brought big changes to craft brew market

For the duration of its existence, the craft brewing industry has mostly avoided what many industries face constantly: acquisitions.

This year, all that changed with six American breweries selling out to larger brewing conglomerates. Back in 2011, Anheuser-Busch’s purchase of Goose Island for $38 million sent waves through the craft brewing community. The independent spirit is one of craft beer’s points of pride, and when someone as revered and respected as Goose Island sold, it felt like the first domino to fall.

It took awhile for more to follow , but the biggest one by far was San Diego’s Ballast Point Brewing selling last month for a reported $1 billion to alcoholic beverage conglomerate Constellation Brands.

Breckenridge Brewery in Colorado, Lagunitas in California and Four Peaks in Arizona are other names that Texan drinkers probably recognize that sold this year. Shockingly, Colorado’s New Belgium — which is employee-owned — was mentioned as entertaining an offer. Nothing materialized on that sale, but from some of the recent news, it appears no brewery is exempt from a potential sale.

Money talks, and it’s difficult to fault a mid-size business staring at a billion-dollar check. Guaranteed, as megabrewers continue to focus on growing their craft segments, this is only the beginning.

companies-that-make-your-beer-map

JOIN US at the 11th INTERNATIONAL LABEL CONFERENCE and LEARN ABOUT THE TRENDS

 

Source: Special to DFW.com

A Trillion Dollar Business | 11th International Label Conference

The global food and beverage (F&B) sector, which comprises farming, food production, distribution, retail and catering , was valued at $5.7 trillion USD. The industry is one of the major contributors to growth of all economies and has historically witnessed consistent growth. The industry is expected to increase at a CAGR of 3.5 percent to $7 trillion USD. In terms of structure, the industry is highly fragmented and the top few players—Nestlé, Kraft Foods, Unilever and Cargill—account for less than 5 percent of the overall value.

Europe accounts for the largest share in the global F&B industry, generating revenues of $1.4 trillion USD4 and employing 4 million workers, followed by the US, which contributed $1 trillion USD. However, Asia, led by China and India, is now emerging as a major contributor of raw material to the F&B industry. India’s F&B market was valued at $182 billion while the food processing sector alone was worth $72 billion. China’s food processing sector increased by 13.6 percent from $44 billion in  to $50 billion USD.

How consumer trends will affect the packaging industry with its entire supply chain?

Come and find out: REGISTER NOW!

Getting Beyond Better

Beyon-Better-BB

 

Who drives transformation in society? How do they do it? How social entrepreneurs target systems that exist in a stable but unjust equilibrium and transform them into entirely new, superior, and sustainable equilibria?

Call them disrupters, visionaries, or changemakers – develop, build, and scale their solutions in ways that bring about the truly revolutionary change that makes the world a fairer and better place.

  • Envisioning a new future
  • Building a model for change
  • Scaling the solution

The interesting interaction of entrepreneurship and economic development has vital inputs and inferences for policy makers, development institutes, business owners, change agents and charitable donors. If we understand the benefits and drawbacks, a balanced approach to nurturing entrepreneurship will definitely result in a positive impact on economy and society.

Join us at the International Label Conference and listen to great entrepreneurs

Better World | How water will challenge even the Consumer Packaged Goods Industry and the entire Supply Chain | Example: India | 11th International Label Conference

Water should be high on the agenda of corporates because the future of businesses depends on the sustainability of water resources, which are increasingly under pressure. Clear implications of a water-constrained world include loss of license to operate, increased production costs, tainted brand image and adverse impact on the health of employees and the communities of operations. Despite clear signs of a pending global crisis, only a few large corporates have made addressing the challenge a high priority.

The water challenge in India is fundamentally related to agriculture. Lately however, the interdependence of water and industrial use has been emerging as a critical issue, as awareness of the diverse ways in which water use can pose substantial threats to businesses in certain regions and sectors grow. In many developing countries and emerging markets, providing a sufficient supply of drinking water or ensuring working waste water systems is a daunting challenge.

Even as businesses seek to secure long-term prosperity, to maintain competitive advantage and brand differentiation, and to secure stability and choice in supply chains, depending on the type of business there will be different levels and types of risks related to increasing scarcity of water (WWF, 2009).

While the provision and management of water has typically been a responsibility of the Government, a paradigm shift around water has emerged, which focuses on the concept of corporate water risk. The CEO Water Mandate which was launched in July 2007 under the United Nations Global Compact recognizes that the industrial sector impacts water resources both directly and through supply chains; and that in order to operate in a more sustainable manner the organization has a responsibility to make water-resource management a priority.

The central question then is no longer who is threatened by water scarcity, but given the diverse interests how can industry and agriculture adapt for co-evolution through investments in water, food or economic transfers, and water storages, considering a hierarchy of geopolitical units, river basins and institutions.

Water should be high on the agenda of corporates because the future of businesses depends on the sustainability of water resources, which are increasingly under pressure. Clear implications of a water-constrained world include loss of license to operate, increased production costs, tainted brand image and adverse impact on the health of employees and the communities of operations. Despite clear signs of a pending global crisis, only a few large corporates have made addressing the challenge a high priority.

The 11th International Label Conference will deal with this issue under one of the key topics:

BETTER WORLD

JOIN US an REGISTER NOW

The Challenges of the Future – the topic of the 11th International Label Conference

The Challenges of the Future – the topic of the 11th International Label Conference

Consumer Packaged Goods, in brief CPG, constitute a market that is growing steadily but is also subject to rapid changes, as it is shaped by market saturation, strong competition, environmental and health awareness, brand diversity, short product life cycles and strict regulations.

The CPG market is a fiercely competitive and fast moving sector with a low profit margin depending on efficient procedures regarding profitability and competitive differentiation. This sector constantly faces new challenges. Keywords are: brand change, market segmentation, niche products, sustainable packaging, customer-friendly product delivery, and globalisation. Depending on the kind of manufactured products and the regions where they are produced and sold, each sector faces its own specific challenges, which range from different global economic conditions and fluctuating supply and demand to growing competitive and cost structures.

The food and semi-luxury product industry covers food production and sale. It encompasses a range of activities, which include agriculture, packaging, sales, marketing and retail. Entrepreneurial challenges include the handling of manufacturing waste, product tracking systems, and dealing with raw materials. Of course, legal requirements, directives and guidelines must be adhered to as well.

We try to get better and improve every day. However, the accelerating change of paradigm has set a new tone and has introduced new rules to the “game” in the markets.

Just Better

How does the world and, as a result, the world of Consumer Packaged Goods change? And what should we all do to create a better immediate and distant future of Consumer Packaged Goods together? These are the questions that will be dealt with at the

11th International Label Conference

from 16 – 18 March 2016

in Zell am See | Austria.

JOIN US and REGISTER