Although the world of corporate finance might not seem anyone’s first port of call when looking for predictions of the fortunes of the convenience sector, insight from global investment bankers Houlihan Lokey have revealed a glimpse into next year.
Alongside advice on where billionaires should be looking to invest in 2025, there were also suggestions as to which direction the broader food and drinks categories might head.
James Scallan, one of its managing directors, has advised that for snacking and frozen lines, convenience will be key. “Continued interest is expected in snacking and frozen foods, which are seeing strong demand as consumers prioritise convenience, value for money and health.
“World foods, with its focus on broader taste formats and ideas, is also seeing strong demand which we anticipate will continue into 2025. The ongoing shift towards sustainable and ethical sourcing will also drive deals as consumers increasingly demand transparency and environmental responsibility from brands.”
Over with drinks, Javier Chiquero, vice president, offers these suggestions at the immediate future. “In the energy drinks segment, Keurig Dr Pepper’s acquisition of Ghost reflects strong confidence in the category’s future, with other brands in the space also performing exceptionally well.
“In Soft Drinks, one of the most notable deals this year has been Carlsberg’s acquisition of Britvic, as the beer giant seeks to establish itself as PepsiCo’s leading bottling partner in Europe. These developments reflect the growing interest and strategic repositioning in the beverages sector, as corporates recognise the clear opportunities for long-term growth.
“Looking ahead to the new year, we anticipate growing buyer interest in functional beverages, as the category continues to expand in response to consumer demand for healthier, better-for-you alternatives.
“Sustainability is also expected to play an increasingly central role, with consumers prioritising ethical ingredient sourcing and recyclable packaging. The prominence of innovative new brands introducing fresh products, concepts and formats to the market will continue to generate opportunities.”
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