Tag archives: Food and Agribusiness

Good eats: rising interest in dairy & meat alternatives driving M&A activity

As consumer demand for dairy and meat alternatives increases, established food manufacturers are looking to supplement their offerings by entering into M&A transactions with emerging meat and dairy alternative manufacturers. According to a recent report by the Good Food Institute (GFI), there have been 46 completed investments and acquisitions of vegan food manufacturers in 2018 alone, with the largest acquisition having a value of $12.5 billion. Many leaders in the meat industry are starting to acquire and invest in the dairy and meat alternatives market to tap into consumer demand. Investing in vegan alternatives is essential for food manufacturers to … Continue Reading

A budding investment – food and beverage investment opportunities and strategic partnerships in the growing cannabis industry

In December of 2018, Health Canada introduced draft regulations governing the production and sale of additional cannabis products, namely edibles, extracts, and topicals (the Cannabis 2.0 regulations). These regulations are set to take effect no later than October 17, 2019 and will introduce notable opportunities for food and beverage companies to enter into strategic partnerships with cannabis industry players.

In a recent report, Deloitte projected that legal, recreational sales are expected to generate up to $4.34 billion in Canada’s cannabis market in 2019. Further, Deloitte estimates that six out of 10 likely cannabis consumers will purchase and use … Continue Reading

Canadian venture capital investment continues to increase in H1 2018

The Canadian Venture Capital & Private Equity Association recently published its 2018 first half (H1 2018) report on Canadian venture capital (VC) and Canadian private equity (PE) investment. While Canadian PE investment remains feeble, Canadian VC investment has continued to climb to incredible heights.

A review of the increasing trends in Canadian VC investment, with respect to the volume and size of deals as well as the stages and sectors engaged, reveals that VC investment in Canada is very robust and showing no signs of slowing down. With H1 2018 already outpacing last year, … Continue Reading

Gauging M&A trends in agribusiness

Although the agricultural sector has largely been segmented in the past, there appears to be a continued trend of consolidation in the industry. As the global population has grown, so too has the demand for food and associated goods. But the appetite for food is changing rapidly and has fueled the rise of M&A activity. A recent report by KPMG discusses the trends driving M&A activity in agribusiness.

A notable trend involves the rise of health products, which stem from consumer desires to seek more health conscious and sustainability-focused options. The increased focus on health and sustainability has begun to … Continue Reading

New genetics technologies set to revolutionize life sciences

Pharma 680x220Curing diseases by editing a person’s genes or using medicine specifically designed to work with their genetic profile has long been the realm of science fiction. However, new technologies have made this area of “personalized medicine” a hotbed for potential M&A growth.

CRISPR, a new technology already in discussions for a Nobel Prize, is revolutionizing the way science companies operate. So cheap and efficient that almost anyone can use it to alter DNA, CRISPR’s potential to create new and better genetically modified crops has already spurred enormous mergers in the agribusiness space. Now, CRISPR and other genetic technologies … Continue Reading

M&A Activity in Canada’s Food and Agribusiness Sector

The Canadian food and agribusiness sector has recently been experiencing healthy activity on the M&A front.

At the retail level, two very large deals were announced this summer. Facing increasing competition from United States retailers, leading Canadian grocery chains have been feeling the pressure to increase market share through acquisitions. In June, Sobeys announced its $7.4 billion offer for Canada Safeway, a predominantly western grocery chain. Shortly thereafter, Sobeys’ largest competitor, Loblaw, announced in July its $12.4 billion acquisition of Shoppers Drug Mart, the largest Canadian pharmacy chain with a growing food retail business.

At the processing level, several deals … Continue Reading

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