An Explosion of Creativity

Private equity has trained their eyes more towards the food and beverage industry in recent years. They’re doing more than invest in brands. They’re bringing more funds, more ideas and more attention to different areas of the industry. Creating an incredibly robust brand is easier with private equity money – accelerating growth, developing a following for a brand gets fueled by investors.

There are many aspects that make food and beverage an enticing space for investors. Demand in the sector stays constant, no matter what else is going on. Investors are also personally consumers who have their favorites — and who can get excited about owning brands that have wide name recognition.

There’s an appetite for creativity due to impressive growth in specialty foods sales, new products and brands, changes in consumer tastes. Private equity groups have developed significant interest in targeting investments in specialty food companies. There are a significant number of middle-market food and foodservice companies, representing a considerable amount of consolidation opportunities. When it comes to identifying attractive targets, private equity firms are looking for ones who are niche, value-based businesses that are durable and stable, while also having capacity for substantial organic growth.