Nick Budden’s Post

This potential acquisition represents a significant development in the landscape of mergers and acquisitions within the consumer packaged goods (CPG) industry. Following Mars' recent acquisition of Kellanova, the prospect of Mondelez (MDLZ) combining with Hershey to form a $50+ billion entity signals the creation of a colossal player in the global snacking sector. Although this marks Mondelez’s second attempt to acquire Hershey, success remains contingent on the support of the Hershey Trust, which holds approximately 80% of the voting power. The Trust’s involvement will undoubtedly play a critical role in determining the outcome of this proposal. As stakeholders, including shareholders and employees, await further developments, this potential merger has the capacity to reshape the industry, particularly in North America. It also aligns with Mondelez’s strategic focus on scaling its chocolate and snacking portfolio. Exciting times lie ahead as this story unfolds, with the promise of advancing the next generation of chocolate and snacking innovation

Guess what? The largest #Bakery players, such as Grupo Bimbo, Mondelēz International, or AAK, have dropped their latest financial results! 🥐 Turns out, most bakery companies achieved steady revenue growth (2%-7%) in Q3 2024, with a mix of price adjustments and volume growth. Strategic pricing and acquisitions were key drivers across companies like Mondelēz International and Grupo Bimbo Discover the full results in our blog ➡️ https://hubs.la/Q02Yb17R0

Mondelez explores Hershey’s acquisition, is this likely beginning of trend in CPG industry excited to see what unfolds Should Mondelez make an offer, Hershey’s current market valuation of over $40 billion would make it one of the largest CPG acquisitions in recent memory—surpassing Mars’ $35.9 billion purchase of Kellanova—and create a snack and confectionary giant with nearly $50 billion in annual sales. Industry Consolidation Trend: The move highlights ongoing consolidation in the packaged food sector, driven by slowing growth, cost pressures, and consumer sensitivity to price hikes, which could influence valuations and strategies across the industry. A combined Mondelez-Hershey would be better equipped to navigate the challenges facing the chocolate sector, which include skyrocketing cocoa prices, reduced consumption from GLP-1 users, and softer demand from cost-conscious consumers Synergy Opportunities: The merger would enable, enhancing its purchasing power in the cocoa market and leverage growth in North America and Europe The acquisition would also likely face scrutiny from antitrust regulators, although the environment for such deals is expected to be much friendlier under new the incoming Trump administration 

Big moves continue to shake up the Food & Beverage industry! 🌍 Earlier this year, Mars acquired Kellanova, and now Mondelez is reportedly exploring a blockbuster acquisition of Hershey’s. But are these deals signaling a broader M&A trend, or are they strategic plays driven by unique market pressures? What’s your take? Are these deals the future of growth, or should companies double down on organic innovation? React in the comments below: - Smart strategy for growth - Focus should be on organic innovation - Risky in today’s market Read more about Mondelez’s potential Hershey’s acquisition here: https://lnkd.in/gYiiKrNj #MergersAndAcquisitions #GrowthStrategies

Mondelēz International seems ready to turn a “snack-sized” ambition into a “mega-sized” deal. The company behind Oreos and Toblerone is rumored to be exploring a $50 billion merger with The Hershey Company, a move that would create the largest candy company in the world. If finalized, this deal would top the $36 billion Mars/Kellanova merger from August and the $46 billion Kraft-Heinz merger of 2015. This isn’t Mondelez’s first attempt—back in 2016, a $23 billion offer for Hershey was rejected. A pivotal factor remains the Hershey Trust, which holds 80% of the company’s voting power. Meanwhile, Hershey has been diversifying its portfolio, including the recent acquisition of Sour Strips, while navigating rising cocoa and sugar costs. Though still early, this potential merger could redefine the competitive landscape of snacks and sweets. What’s your perspective—is this the official return of the mega food deal, or will we continue to see smaller “snack-sized” strategic acquisitions? #MergersAndAcquisitions #FoodAndBeverage #IndustryInsights #Hershey #Mondelez https://lnkd.in/gXxp2582

In 2024, major food companies like The Hershey Company and Mondelēz International are gearing up to intensify their M&A activities, shifting from big transformational acquisitions to smaller, strategic "bolt-on" deals. This trend is set to have a profound effect on middle-market M&A in 2024 as large strategic buyers are moving downstream in a way that historically "didn't move the needle."   These moves allow for a deeper category presence without the burden of significant debt or complex integration challenges. Mondelēz, in particular, is actively exploring potential acquisitions, having completed nine since 2018, including notable brands like Tate's Bake Shop and Clif Bar.   The current industry trends we see at Greenwich Capital Group LLC lean towards acquisitions in trending categories such as salty snacking, co-manufacturers, and health-conscious foods, reflecting a careful and strategic approach to growth amidst current economic conditions.

Mondelez is exploring a takeover of Hershey, aiming to create a $50 billion food giant, though talks are preliminary and uncertain. Hershey’s stock surged 19%, its biggest gain in 8+ years, while Mondelez shares fell 2.3%. Mondelez’s 2016 $23 billion bid for Hershey was rejected; a new deal could exceed $44 billion, requiring approval from Hershey Trust, which controls 80% of voting power. Challenges include Hershey’s dual-class structure, FTC scrutiny, and high cocoa prices impacting profitability. Mondelez seeks to expand its chocolate and snack market amid declining volumes and health-conscious consumer trends. If Hershey Trust agrees, Hershey could attract rival bids from firms like Nestlé. #Mondelez #Hershey #Mergers #ChocolateMarket #CocoaPrices

𝗠𝗮𝗿𝘀 𝘁𝗼 𝗯𝘂𝘆 𝗞𝗲𝗹𝗹𝗮𝗻𝗼𝘃𝗮 𝗳𝗼𝗿 $𝟯𝟱.𝟵𝗕 The deal for the Cheez-It and Pringles maker is the biggest in the food space since the Kraft Heinz merger in 2015. Candy and gum giant Mars agreed to purchase snacks manufacturer Kellanova for $35.9 billion, a deal that marks the largest in the food and beverage space in several years since the $45 billion merger of Kraft Heinz in 2015. Under the transaction, Kellanova — the maker of Cheez-It, Pringles, Pop-Tarts and Eggo, among other brands — would become a part of Mars Snacking, joining the portfolio of brands that includes M&M’s, Kind bars and Extra gum. It will be led by the privately-held candy giant’s global president of snacking Andrew Clarke at its headquarters in Chicago. The purchase is projected to close in the first half of 2025, the companies said in a statement. #FoodManufacturingUSA #FoodManufacturing #ManufacturingUSA

A ~$36B merger is shaking up the snack world This week, candy giant Mars has added brands including Pringles, Eggo, and Cheez-its to its portfolio, in one of the snack industry’s largest acquisitions in history A handful of powerful companies controls approximately 80% of grocery items regularly purchased by ordinary Americans Now, the maker of M&Ms is checking out expansion in the grocery market The Washington Post reports that this acquisition with Kellanova (formerly part of Kellogg Company could double Mars’ snack business over the next decade With a health-conscious consumer trend, this entry into savory snacks, crackers, and cereals could be a sweet move However an important challenge stands in the way first: potential Antitrust hurdles Is bigger better in Food & Beverage? #foodandbeverage #merger #snackindustry #grocery ——————————————— Read More: Mars buys Kellanova in snack food megadeal - The Washington Post https://lnkd.in/gvFpWr2e Financial Times Coverage of the deal which also shows the global footprint of the brands https://lnkd.in/gtcjWH5y An article by The Guardian about America’s monopolies in Food & Beverage https://lnkd.in/gYSeWie6

🔄 PepsiCo’s growth journey from expansion to (potential) acquisition of Siete Foods 💼 PepsiCo’s advanced talks to acquire Siete Family Foods for over $1 billion, as reported by The Wall Street Journal, come at an interesting juncture for the company and the broader packaged-food industry. This move reflects PepsiCo’s strategic evolution, as it focuses on acquiring and scaling innovative brands that align with consumer demands for healthier snack options. In the current market, PepsiCo’s strategy sits between Stage 2 and 3 (Expand ➡️ Acquire ➡️Scale) in the growth framework I discussed in a previous post (https://shorturl.at/JUKTC). 🌱 This potential deal with Siete Foods - a brand known for grain-free, healthier options like almond flour tortillas and dairy-free queso dips - also demonstrates PepsiCo’s expansion into growing health-conscious segments . 📊The acquisition could not only enhance PepsiCo's product line-up in the category, but also strengthen its position in a market where consumers’ appetite for snacks, particularly healthier ones, continues to grow. If the deal comes to fruition, it will allow PepsiCo to maintain momentum through expansion into fast-growing, profitable categories. For Siete Foods, this offers the potential for greater reach and scalability, especially as it continues to expand distribution channels. 🚀 🌍 It's exciting to see the growing wave of strategic acquisitions in the packaged-food industry, as demonstrated by Mars’ recent deal for Kellanova and last year’s acquisition of Hostess Brands by The J.M. Smucker Co.. Major companies are aware of the evolving consumer preferences and that to drive growth, they must be on top of new trends. 💡In short, this acquisition - if completed - would be another example of PepsiCo's strategy to growth by innovating and expanding, as the company aims to cement its position in the industry. https://shorturl.at/pJLFf #Acquisitions #FoodIndustry #PepsiCo #SieteFoods #HealthySnacks #BusinessStrategy #MarketExpansion #Innovation #MergersAndAcquisitions #ConsumerGoods