ESG is a very prominent consideration on the M&A agenda across all sectors. The nature of F&B’s end consumer has already amplified the spotlight on sustainability and an increasing number of consumers are increasingly looking at the provenance of their food, how it is shipped and how it is packaged.
Existing focus on sustainability
In February 2022, Kerry Group acquired German biotech firm c-LEcta GmbH for £114.7 million. The firm uses fermentation to sustainably produce foods – a growing industry trend. The deal gives Kerry Group the engineering and production capabilities to explore this in a cost-efficient way.
Capitalising on growing trend in fermented foods 2022
There is no doubt that inflation and the corresponding drop in household spending will impact the F&B market. Shopping baskets are getting smaller and more expensive, and affected families will be looking for cheaper substitutes or no substitute at all. Resilience is likely to come from R&D in the sector, with Q1 showing that investors are already backing companies that are innovating against this tough backdrop.
Innovation versus inflation