Finances & Deals
Campbell Soup Company announced a 13% workforce reduction and the closure of two snack factories as part of a $500 million cost-cutting plan, while also reducing its quarterly dividend by 36%. The company posted a loss in the fourth quarter, with sales declining 8%.
Food and beverage giants are not expected to pursue transformative multi-billion-dollar M&A this year, instead focusing on small acquisitions to control financial risk while positioning in growth categories such as healthy snacks and functional beverages. Executives from companies like Molson Coors, Kraft Heinz, and Hershey outlined their M&A strategies at the annual CAGNY conference.
Nestlé has reached an agreement to sell its mainstream vitamin, mineral and supplement business to Yellow Wood Partners for $1 billion. The transaction covers 7 brands and the U.S. private-label supplement business, and is expected to be completed in the first half of 2027. This move is part of Nestlé's strategy to focus on high-growth businesses.
Keurig Dr Pepper will sell its minority stake in Chobani for $800 million and a manufacturing plant for $125 million, totaling $925 million. The company plans to use the proceeds to reduce debt, supporting a business split early next year. The two parties will expand their distribution partnership, with the transaction expected to close in the third quarter.
B&G Foods announced the appointment of Robert Mills as its new President and CEO, succeeding Casey Keller, who has served since June 2021. Keller will continue to assist in the transition as an advisor. Mills previously served as Chief Technology Officer for Digital and Pet Services at Tractor Supply Company, and his appointment comes at a challenging time for the company amid weak consumer spending and inflationary pressures.
So far in 2026, M&A activity in the food industry has been robust, but mega-deals have been scarce. Companies are focusing on clean labels, high protein, functional ingredients, and snacks. Among them, McCormick's $44.8 billion merger with Unilever's food business, IFF's $4.3 billion sale of its food ingredients division, Ingredion's $3.6 billion acquisition of Tate & Lyle, and Utz's $2.9 billion privatization by a German snack company stand out as landmark deals of the year.
Sargento Foods will acquire La Terra Fina, known for its premium dips, spreads, and quiches. The deal is expected to close in September, with the amount undisclosed. Through this acquisition, Sargento enters the deli aisle for the first time and strengthens its "real food" positioning to address consumer demand for snackification and high-protein, minimally processed foods.
Jelly Belly's owner Ferrara is repositioning the brand as a premium candy by launching curated collections and optimizing packaging and advertising campaigns to attract consumers to purchase in more occasions beyond Easter. Early data shows a significant increase in brand loyalty.
Brown-Forman rejected Sazerac's acquisition offer on Sunday, calling it not actionable. The offer was considered 'unsolicited,' following reports that the company had declined an initial $15 billion offer in May. Negotiations between Brown-Forman and Pernod Ricard have also ended. Controlling shareholder Wolf Pen Branch stated that the offer does not align with its vision for the company.
Nestlé announced the sale of half of its water business to Platinum Equity for $3.4 billion, forming joint venture Peranel. Peranel will encompass more than 30 brands including S.Pellegrino, Perrier, and Essentia, with headquarters in Paris, and the transaction is expected to be completed in the first half of 2027. This move is the latest step by Nestlé CEO Philipp Navratil to streamline its portfolio.