Business

PepsiCo, Unilever and ABF lead wave of strategic acquisitions in food and drink sector

Saturday, 10 May 2025 12:08AM UTC

2024 has seen a flurry of major acquisitions in the food and drink industry as key players like PepsiCo, Unilever, and Associated British Foods consolidate portfolios and embrace health, sustainability, and plant-based trends to meet evolving consumer demands.

This year has already witnessed a remarkable surge of activity in the food and drink sector, with several high-profile acquisitions and mergers shaping the landscape. Notably, companies are seeking to optimise their portfolios, embrace new growth opportunities, and enhance their engagement with changing consumer preferences.

A significant development involves the discussions between Associated British Foods (ABF), the owner of Kingsmill, and Endless LLP, the private equity holder of Hovis. This potential merger could unify two of the UK’s leading bread brands, positioning them to better compete against rising challengers in the bakery market. This move reflects a broader trend within the fast-moving consumer goods (FMCG) sector, where market consolidation is seen as essential for sustaining competitiveness.

PepsiCo’s recent acquisition of the functional soda brand Poppi has made headlines for its strategic implications. Acquired for approximately £1.5 billion ($1.95 billion), Poppi’s unique blend of prebiotics, fruit juice, and apple cider vinegar aligns perfectly with PepsiCo’s aspirations to diversify its offerings in the healthier beverage market. Co-founder Allison Ellsworth expressed enthusiasm about the deal, stating that the partnership will honour the brand's unique character while allowing for significant growth. PepsiCo Beverages US CEO Ram Krishnan highlighted that Poppi's alignment with wellness and culture enhances PepsiCo's portfolio, tapping into an expanding consumer demand for better-for-you products. This acquisition follows a noticeable decline in traditional beverage sales, with Poppi, generating over $500 million in annual revenue, leading the US gut-health drinks segment, according to sources.

On the personal care front, Unilever has made a strategic move by acquiring the brand Wild. Established as a leader in sustainable personal care options, Wild offers a range of premium products, including deodorants and body washes crafted from plant-based ingredients. Unilever's decision to invest in Wild signals an ongoing shift towards premiumization within its portfolio, aimed at meeting consumer demands for sustainable and refillable options. Wild co-founder Charlie Bowes-Lyon remarked on the synergies this acquisition creates to foster further innovation and expansion, especially in reducing plastic waste through eco-friendly products.

Additionally, in a noteworthy pivot towards plant-based options, Grubby has acquired the rights to Allplants' recipes and manufacturing methods following the latter's recent administration. The resuscitation of Allplants' product lines under the Grubby brand illustrates a keen interest in accommodating the growing consumer appetite for convenient and delicious plant-based meals. Grubby founder Martin Holden-White emphasised the opportunity this acquisition presents in bringing beloved products back to market while underlining the company's commitment to making plant-based eating accessible to all.

These acquisitions reflect the broader trend of adapting to a rapidly shifting marketplace, where consumers increasingly seek out products that resonate with their values around health, sustainability, and convenience. As major players like PepsiCo, Unilever, and smaller entities like Grubby navigate these dynamics, the food and drink industry appears to be undergoing a significant transformation aimed at aligning with the evolving preferences of a diverse consumer base. This momentum underscores an ongoing narrative of innovation, consolidation, and a commitment to sustainability that is likely to continue shaping the market landscape throughout 2025 and beyond.

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Source: Noah Wire Services

More on this

https://www.grocerygazette.co.uk/2025/05/09/food-drink-brand-acquisitions/ - Please view link - unable to able to access data
https://www.reuters.com/business/retail-consumer/pepsico-buy-healthier-soda-brand-poppi-nearly-2-bln-deal-2025-03-17/ - PepsiCo announced the acquisition of prebiotic soda brand Poppi for $1.95 billion, aiming to expand into the healthier beverage market. Poppi, founded by Stephen and Allison Ellsworth, combines prebiotics, fruit juice, and apple cider vinegar to create low-calorie sodas with minimal sugar content. The deal includes $300 million in anticipated cash tax benefits, bringing the net purchase price to $1.65 billion. This acquisition aligns with PepsiCo's strategy to diversify its portfolio amidst declining demand for traditional beverages and snacks.
https://www.ft.com/content/fb41fb3c-50f4-4665-b361-2c66db1ed109 - PepsiCo has acquired Poppi, a leading prebiotic soda brand, for $2 billion to tap into the growing gut-health market. Poppi, which gained initial funding through the TV show Shark Tank, claims to promote healthy gut bacteria with its low-sugar drinks containing juice, vinegar, and prebiotics. Viral marketing on platforms like TikTok has contributed to its popularity. This acquisition comes as PepsiCo aims to revive declining sales in its North American beverage segment. Poppi, generating over $500 million in annual revenue, leads the US gut-health drinks market, closely followed by Olipop.
https://www.pepsico.com/our-stories/press-release/pepsico-to-acquire-poppi03172025 - PepsiCo announced its agreement to acquire Poppi, a fast-growing prebiotic soda brand, for $1.95 billion, including $300 million of anticipated cash tax benefits for a net purchase price of $1.65 billion. The transaction also includes an additional potential earnout consideration subject to the achievement of certain performance milestones. Poppi combines prebiotics, fruit juice, and apple cider vinegar ... low-calorie sodas with no more than five grams ... . The acquisition aims to expand PepsiCo's better-for-you offerings to meet consumer preferences and serve new generations of consumers.
https://www.reuters.com/markets/deals/unilever-acquires-personal-care-brand-wild-2025-04-01/ - Unilever announced the acquisition of personal care brand Wild, marking another step in the optimization of the FMCG giant’s portfolio towards premium products. The details of the sum involved in the acquisition were not disclosed. Wild offers premium deodorants, lip balms, body washes, and hand washes, using plant-based ingredients via a direct-to-consumer and retail model. Unilever stated that the brand’s rapid growth and its position as the UK’s number one refillable deodorant brand make it a strategic addition to its existing portfolio of personal care brands.
https://www.grocerygazette.co.uk/2025/05/09/food-drink-brand-acquisitions/ - A flurry of food and drink giants have already made significant moves to acquire or merge with other brands in 2025. Notably, Kingsmill owner Associated British Foods (ABF) and the private equity owner of Hovis, Endless LLP, have been in talks over a potential merger deal, which would combine two of the biggest bread brands in the UK. Other notable acquisitions include PepsiCo's purchase of Poppi, Unilever's acquisition of Wild, and Grubby's acquisition of Allplants' product range.

Noah Fact Check Pro

The draft above was created using the information available at the time the story first emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation.

Freshness check

Score: 9

Notes: The narrative is current and references recent acquisitions, such as PepsiCo's purchase of Poppi and Unilever's acquisition of Wild. These developments are timely and align with ongoing trends in the food and drink sector.

Quotes check

Score: 5

Notes: The narrative includes quotes from figures like Allison Ellsworth and Ram Krishnan regarding the Poppi acquisition, and Charlie Bowes-Lyon on Wild. However, without further research, it's unclear whether these quotes are original or have been reported elsewhere. Verification of the earliest sources for these quotes was not possible.

Source reliability

Score: 6

Notes: The narrative originates from the Grocery Gazette, a publication that focuses on the food and drink industry. While specific reliability metrics are not available, its focus on a niche sector suggests it may offer specialist insights but lacks the broad recognition of larger media outlets.

Plausability check

Score: 8

Notes: The claims about acquisitions and trends in the food and drink sector are plausible and align with current market dynamics. The focus on health, sustainability, and consolidation reflects current consumer preferences and industry strategies.

Overall assessment

Verdict (FAIL, OPEN, PASS): OPEN

Confidence (LOW, MEDIUM, HIGH): MEDIUM

Summary: The narrative presents timely and plausible information about recent acquisitions in the food and drink sector. However, the quotes' originality and the publication's broader reliability could not be fully verified. Overall, the content seems relevant and aligned with industry trends, but further confirmation is needed to fully validate all details.

PepsiCo
Unilever
Associated British Foods
Mergers and Acquisitions
Food and Drink Industry
Sustainability
Plant-based