New research from business and financial adviser Grant Thornton UK LLP, suggests that plant-based foods “show no signs of losing their allure for investors.”
The company’s ‘Food and beverage insights Q2 2021’ report has found that merger and acquisition deals among companies producing plant-based products remain strong. Plant-based products accounted for 12% of all deals made within the food and beverages industry over the second fiscal quarter of 2021.
Notable transactions in this space, Grant Thornton said, included BGF Investment Management’s £11 million Series A investment in plant-based ‘meat’ brand, THIS. Also highlighted within the report is Richard Koch, the billionaire backer of Belgo and Plymouth Gin, and his £3 million fundraising round into pea protein producer Novo Farina.
Trefor Griffith, head of food and beverage at Grant Thornton UK LLP, said that the trends in plant-based products “continue to dominate and we expect appetite from overseas investors to continue as buyers from Europe and North America continue to snap up UK firms to establish a post-Brexit foothold.”
Griffith went on to speak of the challenges ahead for the industry. He said: “The government’s recent National Food Strategy report outlined a number of recommendations including the introduction of salt and sugar taxes and cutting the nation’s meat intake by a third (though it stopped short of a meat tax), and a white paper has been promised within six months. This will inevitably create uncertainty for food and drink suppliers and prudent players will be keeping a careful eye on developments.
“In spite of these challenges, the next few months could bring great opportunities for firms to strengthen their position. It is a prime time for investors to seek consolidation, and target companies that can resist price pressure with a unique offering. By its vital nature, the food and beverage industry will always remain resilient. What will change, however, is the distribution of winners and losers.”
