Food & Beverage Update: Fourth Quarter 2011
Deloitte Corporate Finance LLC
This quarter’s Food & Beverage Update, produced by Deloitte Corporate Finance LLC (DCF), summarizes the most recent transactions within this industry along with information on the most active buyers, current transaction valuation multiples and an overview of the public market’s perception of the industry.
- Announced transactions decreased 11.3% for 2011 compared to that of 2010.
- Trading multiples across various F&B industry sectors (food packagers, ingredients, beverages and retail) increased 15.9% on average during Q4 2011, compared to Q3 2011, driven largely by a 34.6% increase in ingredients industry multiples.
- The F&B industry performed modestly weaker than the broader market average returns during Q4 2011 as the F&B Index rose 7.0% compared to a 12.0% rise for the Dow Jones Industrial Average.
- Consumer product companies continue to be squeezed by rising supply costs and a price-sensitive consumer. Those consumer product companies that view these supply and consumer changes as enduring and embark on structural strategies may gain a tremendous competitive advantage, as structural strategies can improve a company’s resilience to changes and provide flexibility in responding.
Download the Food & Beverage Update below.