Download our food and drink deal review (PDF - 563kb)
Globally and nationally, the food and drink sector is going through a period of seismic upheaval as the industry comes to terms with the impact of expanding populations, a rapid shift in economic circumstances and unpredictable weather.
The most obvious manifestation of the changes taking place is the rapidly rising cost of food. With both China and India now working their way towards the rich list of countries, their burgeoning middle class populations are taking a rising share of world food production, a trend that would on its own be having some upward effect on prices.
Add to that the fact that spiralling oil prices are pushing up the cost of bringing food to the table and factor in the effects of bad harvests, natural disasters and an increasing emphasis on the production of bio-fuels, and you have a triple whammy. Rising demand, pressure on capacity and higher production costs – all are combining to fuel a spike in prices.
Ironically, the price rises have come at a time when consumers are coming to terms with a less benign economic environment. The credit squeeze has hit economic confidence and with overall inflation on the rise, discretionary spending is falling. As a result, retailers, restaurateurs and their suppliers on the production chain are finding their margins squeezed.
So what does that mean for the shape of the food industry?
Well, over the next few months we expect to see further pressure on margins, with a few niche brands bucking the trend. As conditions get tougher, the likeliest outcome is a round of consolidation as businesses scale up their operations to grab market share, reduce fixed costs and bolster their ability to negotiate with suppliers and customers.
Baker Tilly’s experience in the food sector makes us ideally placed to help you face challenges and seize the opportunities of a changing marketplace. In the following pages we showcase just a handful of our recent food and drink industry deals.
See what our clients have to say about our talented people and how we added value in each of their transactions. Whether it was a trade sale, acquisition or IPO, they all have one thing in common. Deals were delivered and delivered effectively by the Baker Tilly team.
We hope that this review will illustrate the excellent service offered to shareholders, management teams and financial institutions by our specialist team of deal doers. We would also like to thank everyone who has helped make these transactions happen and we look forward to working together over the coming months and years in what will undoubtedly be a rapidly evolving market.
Download our food and drink deal review (PDF - 563kb)