After a turbulent 2025 filled with major acquisitions and leadership changes, the global food and beverage sector is set for continued transformation in 2026. Mergers and acquisitions (M&A) are becoming a key strategy for growth. Companies are shifting focus toward faster-growing areas like snacks, functional foods, and active nutrition, while moving away from slower, more capital-intensive sectors.
Last year showed just how dynamic the industry can be. Kraft Heinz announced plans to split into two separate companies and appointed a new CEO. Similarly, Ferrero Group completed its acquisition of WK Kellogg Co., bringing two well-known names back together.
Nestlé faced significant changes, notably the firing of CEO Laurent Freixe, which was soon overshadowed by plans to cut around 16,000 jobs globally. They are also looking to sell their stake in Herta Foods and parts of their water and coffee divisions.
Meanwhile, Unilever sold off its ice cream division and the snack brand Graze, while Mars, Inc. made headlines with its $36 billion acquisition of Kellanova as the year ended.
The current strategy among Big Food companies includes two primary goals: acquiring fast-growing brands and divesting those traditional categories that don’t offer strong margins. This shift emphasizes a more streamlined portfolio rather than simply expanding their empire.
Some segments are clearly gaining traction:
- Functional Foods and Beverages: Brands that merge health and everyday lifestyles are highly sought after, especially those that can scale quickly.
- Snacking: The convenience and broad appeal of snacks continue to drive deal-making.
- Convenience Foods: As efficiency becomes paramount, companies are prioritizing operational improvements over mere brand strength.
- Active Nutrition: Companies are being more selective, focusing on brands that offer scientific credibility and premium pricing, especially amid tighter regulations.
Looking ahead, 2026 promises to be a year of decisive action. With activist investors and retailers pushing for clearer value, companies can’t afford to be passive anymore. Analysts anticipate further divestments and unexpected deals across the industry.
Interestingly, the companies that succeed may not just be the largest; they will likely be those quickest to adapt and invest strategically in growth.
For more details, you can check out reports from sources like Deloitte or McKinsey.
