Since the abortion of Kraft Heinz ’s merger with Unilever in February, discussions on the food packaging industry have never stopped. From an industry point of view, many people believe that this “failed†transaction is not the end, but instead opened the prelude to the merger of major food packaging companies; Becoming the main theme, many companies are looking for the perfect "sugar replacement". We will analyze the trends of the packaged food industry from these two aspects.
Â
Packaging food industry: M & A of large companies will continue
Â
The acquisition of Coca-Cola or MDLZ by Hershey? Pepsi-Cola to acquire Kellogg? Or Kellogg's to acquire Herbalife? These speculations sound like a wild acquisition, and it is not entirely impossible in the future. Why do big companies in the packaging food industry always want to buy and buy, and spend a lot of money to annex their peers?
Â
This is a difficult time for packaged food companies. Many consumers in the United States and Europe have gradually turned their attention to a healthier lifestyle, looking for more fresh food. These all have a serious impact on the sales of packaged foods such as instant soups, cereals, carbonated drinks, potato chips, etc. Many commercial giants in the United States started with these fast-food products. This has led to the continuous decline in the performance of giants such as General Mills, Kelloggs, and Conagra. Due to the poor revenues of these companies, the urgency of making transactions will be higher.
Â
In addition, the small radar on Wall Street also issued an early warning, Buffett's 3G capital has been constantly disturbing the pattern of the packaged food industry since 2015. Oreo biscuits, Budweiser beer, Burger King, Maxwell coffee, DQ ice cream, Green Arrow, Elysian lotus, Taiping biscuits, Prince biscuits, Quotuo, Heinz baby rice noodles and other foods, all belong to Buffett and His good friend Lehman, the richest man in Brazil.
Â
In 2016, 3G Capital led to the merger of Kraft and Heinz. In 2016, the 3G capital led by Lehman led to the acquisition of the industry ’s second largest company, AB InBev. In 2017, under the guidance of 3G capital, the Burger King Mother Company was going to acquire fried chicken Popeyes. These two "old men" have created many giants in the packaged food industry. Wall Street expects Kraft Heinz and AB InBev to continue to select targets. Looking at this posture, the two want to unify the global food industry.
Â
Although the Unilever M & A case has ended, Kraft Heinz is likely to target MDLZ. After the acquisition of Miller from South Africa, AB InBev may still need a deal to make it reach the target of USD 100 billion in revenue by 2020. SIG analyst Pablo Zuanic said that the goal of AB InBev is likely to be Coca-Cola or Pepsi. Although the two major beverage giants have been innovating to maintain the brand's competitiveness, they may not be able to resist bidding.
Â
In this industry, 3G capital is like a market catalyst. Where there is 3G, M & A may occur. There are two options for packaged food companies in the face of mergers and acquisitions, proactive attack and passive acceptance. If you accept passively, it is likely to be severely laid off to reduce costs. It will also be reviewed by the Trump administration.
Â
However, despite this, some investors still want to be acquired by 3G. After all, by compressing costs, Kraft Heinz completed a merger, and the operating profit margin in 2016 reached an astonishing 30%. For investors and shareholders, making money is the last word. Buffett has always loved the whale-sweeping merger of 3G capital. In the food packaging industry, if big companies are vacillating, it is very likely that 3G Capital, a capital tycoon, has come to push. The trend of mergers and acquisitions is at hand.
Â
Packaged food products: the less sugar, salt and fat, the better
Â
After analyzing the trends in the industry, let's take a look at the trends in products. As we have mentioned above, packaged foods are not so popular, but the company's business needs to continue. It can only cater to consumers' preferences by changing the way of products. According to a new study published by the Consumer Goods Forum, 102 companies from Wal-Mart to Nestlé have redesigned more than 180,000 products to support a healthier diet and lifestyle.
Â
Compared with previous products, these 180,000 products have a lot less sugar, salt and fat, and added whole wheat grains and vitamins. What used to be the favorite sugar in the food industry has now become their biggest enemy. Research company NPD found that consumers are eager to cut sugar from their diets.
Â
However, despite the efforts of packaged food companies to reduce the amount of sugar used, sugar is still the most important raw material for these foods. According to a recent Lancet study, some 74% of packaged foods on the market use some form of sweetener. Although sugar makes people fat, it does bring pleasure.
Â
For food packaging companies, it is really contradictory to not only consume less sugar, but also to satisfy consumers' demand for sweetness. These large companies have used artificial sweeteners for a long time, but obviously this path will not work now. According to Mintel's survey, 39% of consumers think they will avoid products containing artificial ingredients such as aspartame and saccharin. Between 2011 and 2016, sales of these artificial sweeteners fell by 13%.
Â
The perfect sugar substitute has not yet appeared, which has created a blue ocean. The perfect sugar substitute should be free of calories, taste exactly like real sugar, cost-effective, stable, have no negative health effects, and have a natural source. Nestlé is currently trying to change the structure of sugar to create sugar substitutes.
Â
There are also some start-up companies at home and abroad who are trying to develop sugar substitutes, including extracting sugar substitutes from the natural plant Luo Han Guo, looking for some ingredients to disturb our taste, making us think it is sweet, changing the structure of sugar and so on. At present , more than 50 kinds of artificial sweeteners have been developed , and the perfect sugar substitute has not yet appeared. The sugar substitute industry has great potential.
Â
Multi-use: can be used for tooth glass or drinking cup etc
cheap price easy to clean
It is our key belief that our workers and management staff complete all business with honesty,quality and responsibility in mind.With these principles firmly in place,we welcome clients from all over the world to establish a life time business relationship with us,as well as the people of insight to join our team for a bright future.
Plastic Cup,Plastic Tumblers,Plastic Cups With Lids,Clear Plastic Cups
Ningbo Meidai Import & Export Co.,Ltd , https://www.ningbomeidai.com