CPG Specialist Shares Clarkston’s Forward-Looking M&A Insights for 2023
January 23, 2023 | Hudson Rowland, manager at Clarkston Consulting and leader within our M&A team, was cited by CPG Specialist for his M&A predictions for 2023, based on trends revealed from major 2022 deals. View excerpts from the article below, or the full piece here.
5 Ways CPG M&A in 2022 Foreshadows 2023 Deals
“CPGs will look to expand globally, lean into health and wellness, enter new segments and capitalize on the pet-ownership boom.”
“Deals involving small brands accounted for 75% of the activity.”
“The goal of 2023 M&As will be to bolster portfolios that can 1) sustain the growth spurred on by the pandemic and trend and 2) gain innovation.”
“This past year, in particular, companies were looking for ways to gain access to new consumers and markets around the globe.”
“Consumer goods companies are constantly expanding to stay ahead of the competition.”
“Consumption of alcohol increased significantly during the pandemic, with rising demand for premium spirits, alcoholic seltzers, and craft beer. On the other end, wine demand, although a sharp peak during the height of the pandemic, has steadily decreased, and wine supply is becoming increasingly more expensive due to harder harvesting conditions.”
“Although inflation raises some risk to having less disposable income and will drive less demand for premium choices, private equity firms and companies are eager to continue to gain stock in the market through wide shipping networks and strong relationships with downstream retailers.”
“In the first half of 2022 alone, Clarkston Consulting said it counted 35 M&A deals that aimed to vertically integrate manufacturers and suppliers in pet food and treats. It’s leading to less fragmentation, which will favor big, national brands.”